Gold World News Flash |
- The Fed, Gold and Jobs
- Switzerland probes banks over possible forex rigging
- Sinclair plans Q&A seminar outside Washington on Oct. 19
- Fed has destroyed price discovery, Stockman tells KWN
- Citi Warns US Equities Are A Cocktail of 2011, Slice Of 1998, Dash Of 2000
- David Stockman - The Crisis Today Is Far Worse Than 1981
- Guest Post: Why Gold Will Soar On "Good" Economic News
- This Week Took Silver and Gold Prices Lower with the Gold Price Closing at $1,309.70
- This Week Took Silver and Gold Prices Lower with the Gold Price Closing at $1,309.70
- 30 Mindblowing Statistics About Americans Under The Age Of 30
- What If We Go Past The "X" Date?
- The Fed, Gold and Jobs
- The Precious Metals’ Bullish Case is ‘Written in the Rocks’
- Gold Daily and Silver Weekly Charts - A Plausible Explanation
- Gold Daily and Silver Weekly Charts - A Plausible Explanation
- Gold and the Unemployment Rate
- Gold and the Unemployment Rate
- Gold and the Unemployment Rate
- Fleckentstein - Gold & What Is Going To Make Stocks Crater
- Gold-Stock Ostrich Investors
- Brett Arends: Why Uncle Sam is hoarding gold
- Currency Wars and the Ghost of Bear Stearns - The Mass Exodus of Gold Bullion
- Currency Wars and the Ghost of Bear Stearns - The Mass Exodus of Gold Bullion
- Crucial China support for gold may fade
- The Silk Road Redux: gold’s journey East
- Silver beats gold as Asian demands eases
- Indian jewellers hoping to mobilise idle gold through new scheme
- Why gold prices don’t reflect fundamentals – Phillips Part 2
- US gold sales unable to overwhelm Asian demand
- The Daily Market Report
- David Stockman - This Financial Collapse Will Be Catastrophic
- Gold Stocks Ostrich Investors
- Gold and Emperors With No Clothes - From Nero To Nixon To Obama
- Precious Metals Need Equity Market Weakness
- Continued Growth In U.S. Public Debt Suggests $2,000 Gold – Here’s Why
- Silver Beats Gold as Asian Demand Eases But "Challenges London" as World Hub
- Bonus Profits from North Dakota’s Untapped Oil
- Gold Price Slips 1.4% on Week as Asian Demand Eases, But China's Macau "Imports More Gold Than Food & Drink"
- Silver: Monitor The Resistance At 22.13
- Gold Falls in New York as Investors Weigh U.S. Shutdown, Debt
- Gold better at 1323.00 (+6.48 ). Silver 21.80 (+0.14). Dollar firms. Euro lower. Stocks called higher. US 10yr yield 2.62% (+2 bps).
- Gold and Silver Physical Reality In An Increasingly Alternative Universe
- Obamacare Bust a Buying Opportunity for Stock Market Investors?
- Gold and Silver Need Stock Market Weakness
- Meet Your New Landlord: Wall Street
- Government Shutdown, Debt Ceiling and Other Bullish Factors for Gold
- U.S. Government Shutdown: Next Step Dollar Collapse?
- Quality over Quantity Stressed at Colorado Conferences
- Quality over Quantity Stressed at Colorado Conferences
- Quality over Quantity Stressed at Colorado Conferences
Posted: 04 Oct 2013 08:16 PM PDT Miguel Perez-Santalla writes: How Labor Force Participation tells a different story about gold from the headline data... The most important part of an economy is simply employment. To ignore or sideline the importance of unemployment statistics is foolish. Including when you are considering what's happening to investments, including gold. | ||||||
Switzerland probes banks over possible forex rigging Posted: 04 Oct 2013 06:45 PM PDT By Caroline Copley and Albert Schmieder ZURICH -- Switzerland's financial markets regulator is working with authorities in other countries to investigate possible manipulation in the $5 trillion-a-day foreign exchange market potentially involving multiple banks. Regulators and investors are concerned about the integrity of financial benchmarks in the wake of a global investigation into the rigging of benchmark interest rates that has so far led to four financial firms, including Switzerland's largest bank, UBS, being fined around $2.7 billion and seven men being charged. ... For the complete story: http://www.reuters.com/article/2013/10/04/us-swiss-probe-forex-idUSBRE99... ADVERTISEMENT Don't Let Cyprus Happen to You Depositors at the Bank of Cyprus lost 47.5 percent of their savings. So to preserve your wealth, get some of it outside the banking system into physical gold and silver. Worldwide Precious Metals (Canada) Ltd., established in 2001, specializes in physical gold, silver, platinum, and palladium. We offer delivery or secure and fully insured storage outside the banking system in Brinks vaults. We have access to gold and silver from trusted worldwide refineries and suppliers. And when you have an account with us you have immediate access to it for buying and selling your stored bullion. For information on owning physical precious metals in your portfolio, visit us at: www.wwpmc.com. Join GATA here: Louis Boulanger Now Seminar http://www.gata.org/files/GATAInNewZealand.pdf Gold Investment Symposium 2013 The Silver Summit http://www.cambridgehouse.com/event/silver-summit-2013 Mines and Money Australia New Orleans Investment Conference https://jeffersoncompanies.com/landing/speakers?IDPromotion=613011610080... * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: | ||||||
Sinclair plans Q&A seminar outside Washington on Oct. 19 Posted: 04 Oct 2013 06:21 PM PDT 9:20a HKT Saturday, October 5, 2013 Dear Friend of GATA and Gold: 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., Dulles International. 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/ CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Buy metals at GoldMoney and enjoy international storage GoldMoney was established in 2001 by James and Geoff Turk and is safeguarding more than $1.7 billion in metals and currencies. Buy gold, silver, platinum, and palladium from GoldMoney over the Internet and store them in vaults in Canada, Hong Kong, Singapore, Switzerland, and the United Kingdom, taking advantage of GoldMoney's low storage rates, among the most competitive in the industry. GoldMoney also offers delivery of 100-gram and 1-kilogram gold bars and 1-kilogram silver bars. To learn more, please visit: http://www.goldmoney.com/?gmrefcode=gata Join GATA here: Louis Boulanger Now Seminar http://www.gata.org/files/GATAInNewZealand.pdf Gold Investment Symposium 2013 The Silver Summit http://www.cambridgehouse.com/event/silver-summit-2013 Mines and Money Australia New Orleans Investment Conference https://jeffersoncompanies.com/landing/speakers?IDPromotion=613011610080... * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT How to profit with silver -- Future Money Trends is offering a special 16-page silver report with our forecast for 2013 that includes profiles of nine companies and technical analysis of their stock performance. Six of the companies have market capitalizations of less than $800 million and one company has a market cap of only $30 million. The most exciting of these companies will begin production in a few weeks and has a market cap of just $150 million. Half of all proceeds from the sale of this report will be donated to the Gold Anti-Trust Action Committee to support its efforts exposing manipulation and fraud in the gold and silver markets. To learn about this report, please visit: http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp... | ||||||
Fed has destroyed price discovery, Stockman tells KWN Posted: 04 Oct 2013 06:13 PM PDT 9:12a HKT Saturday, October 5, 2013 Dear Friend of GATA and Gold: Former U.S. budget director David Stockman tells King World News that the Federal Reserve "has destroyed any kind of honest price discovery" and that the potential rise of the gold price is "unfathomable." An excerpt from the interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/10/4_Da... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT 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/ Join GATA here: Louis Boulanger Now Seminar http://www.gata.org/files/GATAInNewZealand.pdf Gold Investment Symposium 2013 The Silver Summit http://www.cambridgehouse.com/event/silver-summit-2013 Mines and Money Australia New Orleans Investment Conference https://jeffersoncompanies.com/landing/speakers?IDPromotion=613011610080... * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT How to profit with silver -- Future Money Trends is offering a special 16-page silver report with our forecast for 2013 that includes profiles of nine companies and technical analysis of their stock performance. Six of the companies have market capitalizations of less than $800 million and one company has a market cap of only $30 million. The most exciting of these companies will begin production in a few weeks and has a market cap of just $150 million. Half of all proceeds from the sale of this report will be donated to the Gold Anti-Trust Action Committee to support its efforts exposing manipulation and fraud in the gold and silver markets. To learn about this report, please visit: http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp... | ||||||
Citi Warns US Equities Are A Cocktail of 2011, Slice Of 1998, Dash Of 2000 Posted: 04 Oct 2013 06:02 PM PDT Looking at the equity market and some of the background dynamics Citi's FX Technical group cannot help but be reminded of 2011. They also warn, despite the constant hope-driven rallies this week, there are also some aspects of what we saw in 1998 and similarities with 2000 that are worth noting. The bottom line, we have had the view for some time that we would see a much deeper correction in the equity market (in excess of 20%). Recent price action and developments might (just might) be suggesting that it is time to revisit that theme. Via Citi FX Technicals, DJIA pattern today looks very similar to that seen in 2011. (Daily) After a 2010-2011 surge helped by QE2 in November 2010 (A move that was guided since August that year) the DJIA peaked with a head and shoulders formation completing in early August 2011(02 August break) at the same time as a break below the 200 day moving average. The end of QE2 in June 2011, uncertainty about the US debt limit negotiations and (icing on the cake) a downgrade of the US by S&P on August 5, 2011 (Friday) created the backdrop for a sharp fall. The target of the head and shoulders top was about 10,800 and the actual low hit in Oct 2011 (04 Oct) was 10,404. This gave us a high to low fall of 19% in the DJIA while the S&P fell 22%. The present pattern could be viewed as another potential head and shoulders top with a neckline at 14,862 OR as a double top with a neckline at 14,760. The target on a break of this range would be 13,800-13,900 or about 12% high to low. (Compared to a 16% target in 2011 that was overshot). The rising 200 day moving average now at 14,686 also needs to be watched. DJIA today compared to 2011 (Weekly chart) The 55-200 week moving average set up is (not surprisingly) also similar, albeit more stretched this time than 2011. In 2011 the DJIA eventually overshot the 200 week moving average by about 2%. A repeat of that would see the DJIA as low as around 12,200 or 22% off the peak set post the FOMC meeting. While in 2011 we had some momentum divergence, this time around we have clear “triple momentum divergence” taking place at the peak. VIX today compared to 2011 (Weekly chart) The present set up on the VIX looks very similar to that seen in 2011. In that instance we saw a smaller double bottom “morph” into a larger one that eventually sent the VIX towards 48% in August. In that instance we would complete the larger double bottom at around 22% that would suggest a move to at least 32% Such a development would be consistent with an acceleration below the support levels mentioned above on the DJIA In addition the DJIA posted a bearish monthly reversal off the trend peak in August this year at 15,658. While we did get a daily close above that level on 18 Sept. (Fed debacle day) it was not sustained on either a weekly or monthly basis suggesting that this reversal is still valid. What else was going on around this time in 2011? Actually the dynamics in Europe were on the threshold of deterioration also. So, looking at the charts above the road map seems to be:
It is also worth noting that we see some similarities in today’s markets to some other periods. Namely: 1998 The S&P surged to a trend high in August 1998 in a rally that began 4 years earlier in 1994 This was followed by a sharp reversal into October 1998 that saw a high to low fall of 22% This period followed an attempt by the Fed to “tinker” with monetary policy in the summer of 1997 (they raised rates 25 basis points) that derailed emerging markets (Asia in particular) and culminated with a Russian debt default in August of 1998 and the collapse of LTCM (Long term capital management) in September 1998. This led to a capitulation by the Fed who then eased rates by 75 basis points between Sept and Nov 1998 creating a platform for the equity market to move higher again into 2000. This is very similar to what we saw in 2011 where following the end of QE2 on June 30th we saw a complete “about face” by the Fed as they put in place Operation Twist by November that year. In both these instances we saw the S&P fall 22% into the October lows only to post a bullish monthly reversal (In both instances) as the Fed reacted to the deteriorating backdrop. Overall, the equity market, USD and bond market dynamics of 1998, 2011 and 2013 all show some striking similarities. Now on to our last period that the Equity market is trading in a similar fashion to….2000 2000 This focus is the most “one dimensional” of the 3 periods and really just focuses on the equity market price action similarities. Path of the Equity market 1998-2000 compared to 2011-2013. The 1998-2000 rally was 68%. By contrast the 2011-2013 rally (So far) has been 61% Then again, the broad market was not “dragged higher” this time by the huge NASDAQ bubble as in 1995-2000. Rather it has been dragged higher by the huge QE “bubble” encouraging misallocation of capital by putting the “Bernanke put” under risk. In addition we do not, at this point, anticipate a fall of the magnitude seen in 2000 and 2007. In 2000 we had a massive NASDAQ bubble and in 2007 we had a housing bubble. These bubbles created a negative feedback loop into the broad economy and the core equity markets when they burst. This time some might argue that we have a “bond bubble”. There is an important difference though. When the NASDAQ bubble burst the Fed was not a “buyer of last resort” of NASDAQ stocks. When the housing bubble burst the Fed was not a “buyer of last resort of houses”. However in this cycle the Fed has been a buyer of last resort of Treasuries and mortgages. As we saw from the recent meeting, any disruption in the level of long term interest rates does affect the Fed pattern of buying. Having said that, what if we fall as we did in 1998 and 2011 (20%+) and the Fed once more backs away from normalizing monetary policy (As happened in 1998 and 2011)? On the one hand that might create a platform for another “shot of 2 year adrenaline” for the equity market into 2015 and renewed bond market support. On the other hand, we would be concerned that we could once again get into the quandary we saw in 2000 and again in 2007 (Bubble) without the same degree of scope for a monetary response, leaving the Fed ineffective. (This more than anything is a good reason for them to look to end this “market interference/mispricing of risk/misallocation of capital that we call QE. Let us just hope (we know that hope is not a good investment method) that if this fall in the equity market transpires as we expect (20%+) that the Fed adopts a more responsible approach for a change and does not respond with expanded stimulus. Overall, we should point out that this 2000 dynamic is, in our view, a distant 4th from our preferred big picture view of the late 1970’s (Where the DJIA corrected 27% between late 1976 and early 1978) and the 2011 and 1998 pictures noted above. In addition one of our favourite “Techamental” charts suggests a warning sign Consumer confidence and the S&P500 Peaks in consumer confidence in 2000 and 2007 were followed by sharp falls beginning in the equity market within 3 to 4 months. In addition we did see sharp falls in consumer confidence into both October 1998 and October 2011. If this June 2013 print is the peak in consumer confidence in another 4 year 4 month cycle then Equity market weakness in Sept-October this year is consistent with that picture To sum up: We retain our overall view that the big picture set up (2000-2016) continues to follow a similar path (with some material differences but a lot more similarities) to that seen in 1966-1982. Within that the present period also has some similarities to: – 2000 (Mainly Equity market) For the weeks and months ahead we are now most focused on the July-October 2011 period as the road map for what the markets may hold in store for us. | ||||||
David Stockman - The Crisis Today Is Far Worse Than 1981 Posted: 04 Oct 2013 05:58 PM PDT Today David Stockman spoke with King World News about the monumental crisis now facing the United States and the rest of the world. He also discussed how the disaster today is far worse than we what he, Paul Volcker, and Dr. Paul Craig Roberts faced in the 1981 time frame. Stockman is the man former President Reagan called on in 1981, during that crisis, to become Director of the Office of Management and Budget. Stockman also spoke about what the coming chaos will mean for gold as well as other major markets. Below is what Stockman had to say in the second of a series of powerful interviews that have now been released today on KWN. This posting includes an audio/video/photo media file: Download Now | ||||||
Guest Post: Why Gold Will Soar On "Good" Economic News Posted: 04 Oct 2013 05:21 PM PDT Via Casey Research's Gold Report, The standard wisdom on gold is that it does well in times of economic bad news such as in the 1970s, a period of stagflation and recessions, when the yellow metal rose from $35/oz to peak at $850/oz in 1980. But this time, Don Coxe, a portfolio adviser to BMO Asset Management, believes, things are different. In this interview with The Gold Report, Coxe explains why gold will rise when the economy improves. The Gold Report: Are the days of easy money drawing to a close? Don Coxe: I don't think so. Even if the Federal Reserve begins to taper quantitative easing, the front of the curve is going to stay at zero interest rates. A trillion dollars is going through the Fed's balance sheet, which works its way through the system. As long as the Fed keeps interest rates at zero, it's easy money. TGR: Will overt monetary inflation return any time soon? DC: It will return when we have sustained economic growth. The Eurozone has been the big drag. It is definitely stronger than it was a year ago. The Eurozone has lots of problems, but it is experiencing economic growth despite the European Central Bank reducing its balance sheet in the last 12 months by almost exactly the same percentage amount that the Fed increased its balance sheet. This says that it has lots of firepower if it needs it. In addition, the Eurozone government deficits are lower than ours in terms of percentage of GDP. The Eurozone actually, despite all its highly publicized problems, has improved its financial shape relative to ours. Also, in the last 12 months, Japan, the world's third-biggest economy, has gone from negative growth to strongly positive growth. It is doing that by printing yen at a prodigious rate. The days of easy money are going strong. TGR: If inflation returns, will it first appear in goods or services? DC: In goods. If I had to pick the one point at which we'll start to see the change, it's when the razor-thin inventory-to-sales ratio comes under strain. Corporations are controlled by people who learned in business school over the last 20 years that the first thing to manage is inventories. This way they don't have to worry about prices going up and don't use corporate cash to finance an inventory that may decline in value. Therefore, when things change, it will show up in the pressure that comes because companies have so little inventory on hand. Corporations will decide that they've got to invest in more inventory because they've got more demand. TGR: Do you think that will shake loose the vast amount of capital that's being retained by the multinationals? DC: It will shake loose some of it, but the big thing is it will come because prices are starting to rise. The two reinforce each other. TGR: What do increases in monetary inflation and capital growth mean for gold? DC: Gold rose along with the Fed balance sheet for years. The two have decoupled in the last two years. I believe the reason is people have just thrown in the towel that there will ever be inflation. If you're "Waiting for Godot," at some point you can reach the conclusion that Godot may never come. TGR: Should investors bet on gold's return to previous highs or something in that direction? DC: I don't think we're going to see anything like the double-digit inflation that we saw back in the 1970s. The big difference was the tremendous power of unions then. They all had cost of living adjustments in their contracts; the Consumer Price Index (CPI) would rise in a quarter, then automatically wage rates would increase, and the two fed off each other. The weakened power of unions today has meant that we don't have an automatic reinforcement right at the core of the system. TGR: Let's talk about monopolies and competition and why does the focus of big investors shift from growth to income? DC: I'm not convinced that we've got a lot of monopolies out there. OPEC is no longer able to control oil prices, for example, because its share is no longer large enough to give it freedom on pricing. I believe that oil fracking will gradually start spreading from the US to other parts of the world. We don't have that monopoly, which was the big one back in the 1970s that made it possible for OPEC to quadruple the price of oil. A quadrupling of the price of oil here is impossible because the global economy would collapse with a doubling of oil prices. TGR: Are companies borrowing money at cheap rates to increase dividends and buy back stock? And, if so, how does that affect the system? DC: Yes, companies are basically removing from the system what I believe is the core of capitalism, that corporate cash is used to grow a business. Investors pay a high price-earnings ratio for companies because they believe the companies can reinvest that cash and sustain their growth. When we see that corporate cash is being used to buy back stock and pay dividends, the decision-making force in the system becomes stockholders redeploying cash. In the past it was the corporations themselves through their retained earnings and effective reinvestment that drove the system. If money that people got in dividends was invested in shares of companies that were issuing new stock in order to grow their business, then the whole system would not be losing the money. When you have a system where corporate treasurers do not assume strong future growth and they assume that these zero interest rates are going to continue for a long time, the incentive to retain earnings and plan on capital expenditures (capex) goes away. Capex is putting money out at great cost, where companies get no immediate returns from it, whether it's building a new building or opening up a whole area of the country. When you take that out of the system, the result is that you turn the system on its head. It used to be that the companies would, when they had the cash, decide how much was needed for capex; after that they figured out how much they would payout in dividends. The decision makers within the companies are no longer focused on creating overall economic growth through capex and expanding production. TGR: Are we in a triple-dip or a quadruple-dip recession here? DC: No, I think we're coming out of it, but we've come out of it at a gigantic cost. The Fed had to quadruple its balance sheet, which raises all sorts of problems. We have no precedent in history of this kind of expansion of the Fed's balance sheet. The ratio of paper wealth to GDP is so high at a time when it's going to be difficult for corporations to expand because, as I said, they will need a large amount of capex to meet rising demand at a time when there's all that money out there. I would regard that as a virtual guarantee that at some point we're going to see inflation. This time inflation won't come from rising wages. It will come from rising demand and the inability of corporations to swiftly respond to that demand. The technology industry can expand in a hurry because it keeps coming out with new products, but for most of the rest of the economy, it takes a while to build a plant and get the machinery ready and test it out before there actually is any production. That period of time, if you've got strong demand because there's so much paper money, is the moment at which you will see inflation coming. TGR: How will that affect gold? DC: It will deal with the problem of faith in gold. When gold tracked the growth in the monetary base, which it did so well, there was a general conviction based on Milton Friedman's theories that expanding the monetary base too fast eventually translates into inflation. Inflation is harder to stop than it is to just watch start growing. We will see that interest rates will have to rise because of another group that has not been heard from in a long time: bond vigilantes. They are threatened with extinction. It will be a combination of rising interest rates and rising prices that will get people to say, "Ah ha! Milton Friedman was right after all—if you print the money, eventually you're going to have the inflation." TGR: When you talk about bond vigilantes, are you talking about junk bonds or what's known as private equity? DC: The bond vigilantes work primarily on government bonds because they are the ones they can trade most effectively. Junk bonds are a small part of the market. With inflation the bond vigilantes sell off their 30- and 10-year bonds and move down to the 2-year note. At that point the cost of capital for expansion rises through the system because corporations can use short-term cash for some of their work, but they tend to use long-term borrowing from banks and the bond market for major projects. The cost of building those projects increases because of the steep yield curve. TGR: Do you consider yourself to be a bear or a bull on gold? DC: I am neutral in the short term. I'm not a bear. I'm a bull in the long term because I believe it's not a question of if but when all this money printing eventually comes to haunt us. Gold as an asset class is so tiny in relation to the vast expansion of money around the world. With the printing that's gone on, China has had to expand its renminbi supplies to prevent the currency from soaring relative to the dollar. TGR: You are appearing at the upcoming Casey Fall Summit. Are you going to talk about gold there and will it be more or less what you just said? DC: Yes. I am going to point out that the big story for gold is up until now gold has been only a bad news story. The reason why it's in trouble right now is there always seems to be bad news in terms of inflation. People say if inflation hasn't come now with the quadrupling of the Fed's balance sheet, it's never going to come, and the Fed is going to have to keep on pouring out more money because the economy isn't growing. When the economy starts to grow all of a sudden because, as I said earlier, of the inventory cycle, we are going to start to see inflation. Gold will become a good news story in the sense it will be responding to strong economic news at a time of massive liquidity, which translates into inflation. The fact that we've had all that money printing, which has only prevented us from going down into a pit, at such time as this actually leads to good economic growth. That is the point at which we're going to see people wanting to have gold. It's because we didn't get the direct pass over of the money printing into rising prices that gave people a loss of faith saying, "Well, if it hasn't come with quadrupling the Fed's balance sheet, it's never going to come." TGR: Given that, is it a good idea for investors to buy gold stocks while they're available at basement prices? DC: I believe that everybody should have gold insurance now. The question varies from investor to investor. What we have is an extremely high-risk central bank policy in the world, and it's high risk based on monetarism. I believe monetarism will prove to be right because all past experiments with paper money eventually led to inflation and monetary collapse. At some point the fear of that will come. You need gold for insurance, but this time the payoff will come when the economy improves; in the past when everything was falling all around you, commodity prices were soaring out of sight. We had three recessions in the 1970s and gold went from $35 an ounce to $850. But this time, gold is going to appreciate when we start getting 3% GDP growth. TGR: Thank you for your insights. Don Coxe has 40 years of institutional investment experience in Canada and the US. As a strategist and investor, he has been engaged at the senior level in global capital markets through every recession and boom since the onset of stagflation in 1972. He has worked on the buy side and the sell side in many capacities and has managed both bond and equity portfolios and served as CEO, CIO, and research director. From his office in Chicago, Coxe heads up the Global Commodity Strategy investment management team, a collaboration of Coxe Advisors and BMO Global Asset Management. He is advisor to the Coxe Commodity Strategy Fund and the Coxe Global Agribusiness Income Fund in Canada, and to the Virtus Global Commodities Stock Fund in the US. Coxe has consistently been named as a top portfolio strategist by Brendan Wood International; in 2011, he was awarded a lifetime achievement award and was ranked number one in the 2007, 2008, and 2009 surveys. The Casey Research Summit has sold out, as they always do. With important political figures such as keynote speaker Dr. Ron Paul and Catherine Austin Fitts contributing, along with investment experts including John Mauldin and Rick Rule and Casey Research founder and contrarian legend Doug Casey himself, the Summit is a must-attend event for many. And with healthcare and legal and privacy issues on the docket for the upcoming conference, it's even more timely. There is a way you can "be there" for every session... every panel discussion... every workshop... in order to glean the most information possible from the blue-ribbon panel of experts, most of whom have agreed to stay and participate as audience members for the duration of the Summit. By preordering the Casey Summit Audio Collection, you will give yourself the next best thing to being there—and if you order today, you'll lock in a special reduced rate. Learn more about the Summit and the Audio Collection, and reserve your copy now. | ||||||
This Week Took Silver and Gold Prices Lower with the Gold Price Closing at $1,309.70 Posted: 04 Oct 2013 04:43 PM PDT Gold Price Close Today : 1,309.70 Gold Price Close 27-Sep-13 : 1,338.40 Change : -28.70 or -2.1% Silver Price Close Today : 21.705 Silver Price Close 27-Sep-13 : 21.783 Change : -0.078 or -0.4% Gold Silver Ratio Today : 60.341 Gold Silver Ratio 27-Sep-13 : 61.442 Change : -1.10 or -1.8% Silver Gold Ratio : 0.01657 Silver Gold Ratio 27-Sep-13 : 0.01628 Change : 0.00030 or 1.8% Dow in Gold Dollars : $ 237.90 Dow in Gold Dollars 27-Sep-13 : $ 235.67 Change : $2.23 or 0.9% Dow in Gold Ounces : 11.508 Dow in Gold Ounces 27-Sep-13 : 11.400 Change : 0.11 or 0.9% Dow in Silver Ounces : 694.43 Dow in Silver Ounces 27-Sep-13 : 700.47 Change : -6.04 or -0.9% Dow Industrial : 15,072.58 Dow Industrial 27-Sep-13 : 15,258.24 Change : -185.66 or -1.2% S&P 500 : 1,690.50 S&P 500 27-Sep-13 : 1,691.75 Change : -1.25 or -0.1% US Dollar Index : 80.166 US Dollar Index 27-Sep-13 : 80.266 Change : -0.100 or -0.1% Platinum Price Close Today : 1,384.70 Platinum Price Close 27-Sep-13 : 1,414.90 Change : -30.20 or -2.1% Palladium Price Close Today : 700.95 Palladium Price Close 27-Sep-13 : 730.80 Change : -29.85 or -4.1% Y'all probably want to read this commentary carefully, because I've changed my mind about silver and GOLD PRICES, but I'll explain below. Also, I may be travelling all next week, so won't send out any commentaries. God willing, I'll return on Monday, 14 October. The week took silver and gold prices, platinum and palladium lower, but in the same range they've been trading in. Dow lost 1.2% and wallowed with gunwales shipping water all week long. US dollar index only showed life today, and spent the rest of the week fainting like a sixteen year old girl in a wool dress at a ball without air conditioning. The GOLD PRICE lost $7.70 today to close Comex at $1,309.70. Silver coughed up a tiny 3.4 cents to end at 2170.5c. Today, the picture cleared for me. From May through mid-August the gold price formed an upside down head and shoulders with a measured target at $1,550. Pushed out, but reached on $1,434. Now if you look there is a bigger upside-down head and shoulders, and gold is just completing the bottom of the right shoulder. There's something else. This also appears to be the bottom of the first corrective wave of this rally, which is the lowest risk place to buy. How do we know they won't fall further? We never do, absolutely, but that HandS formation, as well as gold's behavior so far, argues it shouldn't drop further. It dropped down to the bottom of the shoulder sharply at $1,276.90, , and just as sharply reversed upward the next day. Last three days it has traded sideways, and yesterday fended off an attempt to break it that dragged it all the way to $1,302. Gold still recovered. This interpretation would be fatally gainsaid by a close below $1,276.00. Otherwise, it will keep climbing to the neckline, now about $1,410. Once it crosses that neckline, gold will turn on the afterburner. Rule of thumb measurement yields a target of $1,675. But I could be wrong. LO! Now behold the SILVER PRICE! Similar upside-down HandS appeareth on that chart. Silver this week tested the bottom of the right shoulder, and traded, like gold, back up to the top boundary of its falling wedge -- as in "wedge that usually breaks out upside." If that is correct, silver (1) must not close below 2100c, and (2) should keep on rising toward that neckline about 2500c. A breakout there targets 3183c. Like I said, the charts today changed my mind. I'm no longer looking for the possibility of another touch toward the June lows. I believe that was THE bottom. Note carefully, however, that gold and silver must not break $1,276 or 2100c. My mind is changed. I am buying. Not waiting any longer. O'Bama is playing the drama like a little boy pulling the wings off flies -- mean. His remark this week that there was a danger the US might default kicked stocks in the head. Hard to imagine he didn't do that a-purpose. Dow lost more this week than the S&P500. Dow today gained 76.1 (0.51%) to 15,072.58. S&P500 picked up 11.84 (0.71%) to 1,690.50. Dow can probably fall to 14,850 still and theS&P500 to 1,660. The jubilating will become general whatever day the debt ceiling stand-off ends, and that should take it stocks to the final high. One of the very strongest arguments that the silver and gold price have bottomed is the Dow in Gold and Dow in Silver. Both bounced up today (stocks rose, metals fell minutely), but all against the backdrop of a well established downtrend. For the week the Dow in gold rose 0,9% to 11.508 oz (G$237.90 gold dollars). Dow in silver fell 0.9% to 694.43 oz. Remember that a FALLING Dow/Gold or Dow/Silver means that metals are GAINING value against stocks, which has been the primary trend since 1999 and 2000. Forget ye not: The trend is your friend. US Dollar Index behaved all week like a dog eating poisoned meat. Low close was 79. 763, close enough to the cliff at 79.50 to leave frost on its neck. Today it closed above 80, at 80.166, up 43.2 basis points or 0.56%. That rise might show no more than shorts closing out their profitable position for the week, so I wouldn't swing over any chasms using today's gain for a rope. That dollar also might have dropped too low to suit the Nice Government Men of all three nations, so today the Euro and yen took tumbles. Yen lost 0.18% to 102.62, but the euro lost 0.5% to $1.3554. Euro left behind an ugly toppy patter in the last three days, a high rising day, a higher day still spiking up, then a sharp collapse today. Don't swing on that rope, either, unless you just LIKE broken bones. Every adult with a brain has pulled out of the US economy, it seems, and we already knew that brains were rarer in Washington than snow cones in hell. Y'all have a wonderful weekend. Go home, kiss your spouse and children, and thank God that the yankee government does not yet govern EVERY aspect of your life. Otherwise y'all would starve to death by Friday. Y'all enjoy your weekend! 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. | ||||||
This Week Took Silver and Gold Prices Lower with the Gold Price Closing at $1,309.70 Posted: 04 Oct 2013 04:43 PM PDT Gold Price Close Today : 1,309.70 Gold Price Close 27-Sep-13 : 1,338.40 Change : -28.70 or -2.1% Silver Price Close Today : 21.705 Silver Price Close 27-Sep-13 : 21.783 Change : -0.078 or -0.4% Gold Silver Ratio Today : 60.341 Gold Silver Ratio 27-Sep-13 : 61.442 Change : -1.10 or -1.8% Silver Gold Ratio : 0.01657 Silver Gold Ratio 27-Sep-13 : 0.01628 Change : 0.00030 or 1.8% Dow in Gold Dollars : $ 237.90 Dow in Gold Dollars 27-Sep-13 : $ 235.67 Change : $2.23 or 0.9% Dow in Gold Ounces : 11.508 Dow in Gold Ounces 27-Sep-13 : 11.400 Change : 0.11 or 0.9% Dow in Silver Ounces : 694.43 Dow in Silver Ounces 27-Sep-13 : 700.47 Change : -6.04 or -0.9% Dow Industrial : 15,072.58 Dow Industrial 27-Sep-13 : 15,258.24 Change : -185.66 or -1.2% S&P 500 : 1,690.50 S&P 500 27-Sep-13 : 1,691.75 Change : -1.25 or -0.1% US Dollar Index : 80.166 US Dollar Index 27-Sep-13 : 80.266 Change : -0.100 or -0.1% Platinum Price Close Today : 1,384.70 Platinum Price Close 27-Sep-13 : 1,414.90 Change : -30.20 or -2.1% Palladium Price Close Today : 700.95 Palladium Price Close 27-Sep-13 : 730.80 Change : -29.85 or -4.1% Y'all probably want to read this commentary carefully, because I've changed my mind about silver and GOLD PRICES, but I'll explain below. Also, I may be travelling all next week, so won't send out any commentaries. God willing, I'll return on Monday, 14 October. The week took silver and gold prices, platinum and palladium lower, but in the same range they've been trading in. Dow lost 1.2% and wallowed with gunwales shipping water all week long. US dollar index only showed life today, and spent the rest of the week fainting like a sixteen year old girl in a wool dress at a ball without air conditioning. The GOLD PRICE lost $7.70 today to close Comex at $1,309.70. Silver coughed up a tiny 3.4 cents to end at 2170.5c. Today, the picture cleared for me. From May through mid-August the gold price formed an upside down head and shoulders with a measured target at $1,550. Pushed out, but reached on $1,434. Now if you look there is a bigger upside-down head and shoulders, and gold is just completing the bottom of the right shoulder. There's something else. This also appears to be the bottom of the first corrective wave of this rally, which is the lowest risk place to buy. How do we know they won't fall further? We never do, absolutely, but that HandS formation, as well as gold's behavior so far, argues it shouldn't drop further. It dropped down to the bottom of the shoulder sharply at $1,276.90, , and just as sharply reversed upward the next day. Last three days it has traded sideways, and yesterday fended off an attempt to break it that dragged it all the way to $1,302. Gold still recovered. This interpretation would be fatally gainsaid by a close below $1,276.00. Otherwise, it will keep climbing to the neckline, now about $1,410. Once it crosses that neckline, gold will turn on the afterburner. Rule of thumb measurement yields a target of $1,675. But I could be wrong. LO! Now behold the SILVER PRICE! Similar upside-down HandS appeareth on that chart. Silver this week tested the bottom of the right shoulder, and traded, like gold, back up to the top boundary of its falling wedge -- as in "wedge that usually breaks out upside." If that is correct, silver (1) must not close below 2100c, and (2) should keep on rising toward that neckline about 2500c. A breakout there targets 3183c. Like I said, the charts today changed my mind. I'm no longer looking for the possibility of another touch toward the June lows. I believe that was THE bottom. Note carefully, however, that gold and silver must not break $1,276 or 2100c. My mind is changed. I am buying. Not waiting any longer. O'Bama is playing the drama like a little boy pulling the wings off flies -- mean. His remark this week that there was a danger the US might default kicked stocks in the head. Hard to imagine he didn't do that a-purpose. Dow lost more this week than the S&P500. Dow today gained 76.1 (0.51%) to 15,072.58. S&P500 picked up 11.84 (0.71%) to 1,690.50. Dow can probably fall to 14,850 still and theS&P500 to 1,660. The jubilating will become general whatever day the debt ceiling stand-off ends, and that should take it stocks to the final high. One of the very strongest arguments that the silver and gold price have bottomed is the Dow in Gold and Dow in Silver. Both bounced up today (stocks rose, metals fell minutely), but all against the backdrop of a well established downtrend. For the week the Dow in gold rose 0,9% to 11.508 oz (G$237.90 gold dollars). Dow in silver fell 0.9% to 694.43 oz. Remember that a FALLING Dow/Gold or Dow/Silver means that metals are GAINING value against stocks, which has been the primary trend since 1999 and 2000. Forget ye not: The trend is your friend. US Dollar Index behaved all week like a dog eating poisoned meat. Low close was 79. 763, close enough to the cliff at 79.50 to leave frost on its neck. Today it closed above 80, at 80.166, up 43.2 basis points or 0.56%. That rise might show no more than shorts closing out their profitable position for the week, so I wouldn't swing over any chasms using today's gain for a rope. That dollar also might have dropped too low to suit the Nice Government Men of all three nations, so today the Euro and yen took tumbles. Yen lost 0.18% to 102.62, but the euro lost 0.5% to $1.3554. Euro left behind an ugly toppy patter in the last three days, a high rising day, a higher day still spiking up, then a sharp collapse today. Don't swing on that rope, either, unless you just LIKE broken bones. Every adult with a brain has pulled out of the US economy, it seems, and we already knew that brains were rarer in Washington than snow cones in hell. Y'all have a wonderful weekend. Go home, kiss your spouse and children, and thank God that the yankee government does not yet govern EVERY aspect of your life. Otherwise y'all would starve to death by Friday. Y'all enjoy your weekend! 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. | ||||||
30 Mindblowing Statistics About Americans Under The Age Of 30 Posted: 04 Oct 2013 04:03 PM PDT Submitted by Michael Snyder of The Economic Collapse blog, Why are young people in America so frustrated these days? You are about to find out. Most young adults started out having faith in the system. They worked hard, they got good grades, they stayed out of trouble and many of them went on to college. But when their educations where over, they discovered that the good jobs that they had been promised were not waiting for them at the end of the rainbow. Even in the midst of this so-called "economic recovery", the full-time employment rate for Americans under the age of 30 continues to fall. And incomes for that age group continue to fall as well. At the same time, young adults are dealing with record levels of student loan debt. As a result, more young Americans than ever are putting off getting married and having families, and more of them than ever are moving back in with their parents. It can be absolutely soul crushing when you discover that the "bright future" that the system had been promising you for so many years turns out to be a lie. A lot of young people ultimately give up on the system and many of them end up just kind of drifting aimlessly through life. The following is an example from a recent Wall Street Journal article...
Young adults as a group have been experiencing a tremendous amount of economic pain in recent years. The following are 30 statistics about Americans under the age of 30 that will blow your mind... #1 The labor force participation rate for men in the 18 to 24 year old age bracket is at an all-time low. #2 The ratio of what men in the 18 to 29 year old age bracket are earning compared to the general population is at an all-time low. #3 Only about a third of all adults in their early 20s are working a full-time job. #4 For the entire 18 to 29 year old age bracket, the full-time employment rate continues to fall. In June 2012, 47 percent of that entire age group had a full-time job. One year later, in June 2013, only 43.6 percent of that entire age group had a full-time job. #5 Back in the year 2000, 80 percent of men in their late 20s had a full-time job. Today, only 65 percent do. #6 In 2007, the unemployment rate for the 20 to 29 year old age bracket was about 6.5 percent. Today, the unemployment rate for that same age group is about 13 percent. #7 American families that have a head of household that is under the age of 30 have a poverty rate of 37 percent. #8 During 2012, young adults under the age of 30 accounted for 23 percent of the workforce, but they accounted for a whopping 36 percent of the unemployed. #9 During 2011, 53 percent of all Americans with a bachelor’s degree under the age of 25 were either unemployed or underemployed. #10 At this point about half of all recent college graduates are working jobs that do not even require a college degree. #11 The number of Americans in the 16 to 29 year old age bracket with a job declined by 18 percent between 2000 and 2010. #12 According to one survey, 82 percent of all Americans believe that it is harder for young adults to find jobs today than it was for their parents to find jobs. #13 Incomes for U.S. households led by someone between the ages of 25 and 34 have fallen by about 12 percent after you adjust for inflation since the year 2000. #14 In 1984, the median net worth of households led by someone 65 or older was 10 times larger than the median net worth of households led by someone 35 or younger. Today, the median net worth of households led by someone 65 or older is 47 times larger than the median net worth of households led by someone 35 or younger. #15 In 2011, SAT scores for young men were the worst that they had been in 40 years. #16 Incredibly, approximately two-thirds of all college students graduate with student loans. #17 According to the Federal Reserve, the total amount of student loan debt has risen by 275 percent since 2003. #18 In America today, 40 percent of all households that are led by someone under the age of 35 are paying off student loan debt. Back in 1989, that figure was below 20 percent. #19 The total amount of student loan debt in the United States now exceeds the total amount of credit card debt in the United States. #20 According to the U.S. Department of Education, 11 percent of all student loans are at least 90 days delinquent. #21 The student loan default rate in the United States has nearly doubled since 2005. #22 One survey found that 70% of all college graduates wish that they had spent more time preparing for the "real world" while they were still in college. #23 In the United States today, there are more than 100,000 janitors that have college degrees. #24 In the United States today, 317,000 waiters and waitresses have college degrees. #25 Today, an all-time low 44.2 percent of all Americans between the ages of 25 and 34 are married. #26 According to the Pew Research Center, 57 percent of all Americans in the 18 to 24 year old age bracket lived with their parents during 2012. #27 One poll discovered that 29 percent of all Americans in the 25 to 34 year old age bracket are still living with their parents. #28 Young men are nearly twice as likely to live with their parents as young women the same age are. #29 Overall, approximately 25 million American adults are living with their parents according to Time Magazine. #30 Young Americans are becoming increasingly frustrated that previous generations have saddled them with a nearly 17 trillion dollar national debt that they are expected to make payments on for the rest of their lives. And this trend is not just limited to the United States. As I have written about frequently, unemployment rates for young adults throughout Europe have been soaring to unprecedented heights. For example, the unemployment rate for those under the age of 25 in Italy has now reached 40.1 percent. Simon Black of the Sovereign Man blog discussed this global trend in a recent article on his website...
Meanwhile, the overall economy continues to get even weaker. In the United States, Gallup's daily economic confidence index is now the lowest that it has been in more than a year. For young people that are in high school or college right now, the future does not look bright. In fact, this is probably as good as the U.S. economy is going to get. It is probably only going to be downhill from here. The system is failing, and young people are going to become even angrier and even more frustrated. So what will that mean for our future? | ||||||
What If We Go Past The "X" Date? Posted: 04 Oct 2013 03:33 PM PDT What if the Treasury were to go over the X date (date beyond which the Treasury cannot honor all its payments) without the debt ceiling being raised? As BofAML notes, the Treasury estimates the X date to be October 17, though they believe that the Treasury may have enough cash and incoming tax receipts to last a few more days. In either case, the date is not too far out. Market concerns over possible postponed payment have been rising as indicated by the performance of October and November bills. What are the options of for the Treasury? Via BofAML, In our view, most options are unviable – the most fair and sensible option would be to implement a delayed payment regime where no payments would be made until they could all be made on a day-by-day basis. 1. 14th Amendment will not be used The White House has ruled out raising the debt ceiling using the 14th amendment (which states that the validity of the public debt of the United States cannot be questioned). National Economic Council Director Gene Sperling and Presidential Adviser Dan Pfeiffer have both rejected using this option this week. Also, earlier this year, the White House press secretary emphasized that the Administration did not believe that the 14th Amendment gives the president the power to ignore the debt ceiling. 2. Trillion dollar coins will not be minted We do not believe the Treasury will even consider minting coins (which are not subject to debt ceiling) and asking the Fed to purchase them to temporarily get over the debt ceiling. The legality of this is questionable, and it would further deepen the distrust between the two political parties. It would also risk being the first step down a slippery slope of debt monetization. We believe it would be extremely unlikely the Fed would agree to accept platinum coins in return for making Treasury's payments, as it would politicize the Fed and put its independence at risk. 3. Asset sales are unlikely During the 2011 debt ceiling debate, Treasury officials rejected the option of selling gold reserves as it would undercut confidence in the US and destabilize the world financial system. Treasury officials determined that a "fire sale" of other assets like TARP assets would not maximize value for taxpayer and could be detrimental. These asset sales would also buy very little time. Since then, the Treasury has completely wound down its MBS portfolio and TARP assets now total less than $25bn. 4. Prioritization of payments: Treasury will be unwilling Another option in case of a breach of the ceiling would be the prioritization of debt service payments by the Treasury. The idea of issuing scrips or IOUs to claimants (other than those who hold US Treasury debt) would be another manifestation of the same idea, wherein debt payments are deemed superior. However, this may be impossible from an operational standpoint. The Treasury makes 80-100 million payments per month, and modifying systems to pick and choose would be an operational nightmare. The administration would be accused of picking winners and losers and become the center of intense media and public scrutiny. In 2011 when a bill to prioritize debt payments was introduced, the proponents were accused of paying China instead of federal workers. In 2011, Treasury officials reportedly determined that there was no fair or sensible way to pick and choose among the many bills that are due every day. 5. Delayed payment regime most likely We believe the most plausible option for the Treasury could be implementing a delayed payment regime. In such a scenario, the Treasury would wait until it has enough cash to pay off an entire day's obligations and then make those payments on a day-to-day basis. For example, if the Treasury did not have enough cash to pay all of its obligations on November 1, 2013, it would wait until enough receipts flow in (perhaps not until November 3 or 4) and then make good on all payments for the 1st. Given that the US has a sizable monthly deficit, the delay would worsen by the day, but at least the Treasury would not have to pick winners and losers. | ||||||
Posted: 04 Oct 2013 01:58 PM PDT How Labor Force Participation tells a different story about gold from the headline data. The most important part of an economy is simply employment. To ignore or sideline the importance of unemployment statistics is foolish. Read More... | ||||||
The Precious Metals’ Bullish Case is ‘Written in the Rocks’ Posted: 04 Oct 2013 01:53 PM PDT In this mornings mail bag we have this interview with Jim Goddard and David Smith of The Morgan Report very kindly sent to us from our good friend David Morgan whose contact details are below. can be contacted as follows: Website: http://www.silver-investor.com Twitter: http://twitter.com/silverguru22 The Precious Metals’ Bullish Case is ‘Written in the Rocks’ David H. Smith/Silver-Investor.com (Source: HoweStreet.com 9/24/13) Jim Goddard: My guest is David Smith. He’s the senior analyst for The Morgan Report, which you can find online at silver-investor.com. Welcome to the show, David.
David Smith: Good to be back, Jim.
JG: The U.S. Fed has made what I call the non-announcement. They didn’t do anything. That spurred the markets momentarily, but now what’s the state? People are saying they sent both a bull and a bear message. Where do we sit, David? | ||||||
Gold Daily and Silver Weekly Charts - A Plausible Explanation Posted: 04 Oct 2013 01:35 PM PDT | ||||||
Gold Daily and Silver Weekly Charts - A Plausible Explanation Posted: 04 Oct 2013 01:35 PM PDT | ||||||
Gold and the Unemployment Rate Posted: 04 Oct 2013 12:40 PM PDT Labor Force Participation tells a different story about gold and US joblessness... The GOLD PRICE tells us just like any other indicator what is going on in our country, or economy, writes Miguel Perez-Santalla at BullionVault. The most important part of an economy is simply employment. To ignore or sideline the importance of unemployment statistics is foolish. Including when you are considering the gold price. The unemployment statistic is one of the most important numbers being studied by the Federal Reserve Bank. Their attempt to influence growth in the economy can only be proven out by growth in employment. This is because a growing economy means the need to produce more and in all cases increase hiring. But all the liquidity that is being added by the Federal Reserve Bank, even though it has plainly worked to boost the gold price over time, has had little effect on unemployment. Because most of the money is not reaching the economy, or the people in the private sector. Often times we read that the unemployment rate has dropped. But unfortunately it is the Labor Force Participation Rate that has dropped at a greater rate. So the real unemployment rate is higher than what is reported. Because the participation rate is the barometer that shows how many people looking for work have lost faith that they can find full-time employment. There also seems to be a growth of part-time workforce. This is believed to be caused by the burden that Obamacare will have on small business enterprises. So to avoid the financial burden many smaller firms, instead of hiring full-time employees and paying benefits, prefer to hire part-time employees and avoid participating in the Obamacare scheme. Also related to Obamacare is the increase in expenses to a family of four which apparently will represent $766 per annum basis current studies. This will represent a loss of spendable income. This will in turn slow production and hurt the growth of the economy. In the end, less spending money means less buying which means less employment. But that's not all, if you take a look at our indicators you would see that the trend has not reversed. The trend looks dismal at best. People talk about an improving US economy and I hope that they are right. Unfortunately I believe the disparity between the haves and have-nots is growing. Even those that are able to find jobs are accepting positions beneath their education and experience. What does all this mean to the college graduates who spend anywhere from $50,000-$150,000 for a four-year degree? It means that not only is the college expense not worth the investment but that they are now in a whole that will be difficult to dig out of. If our young and well-educated are not able to find employment at reasonable levels then again we have built a top-heavy pyramid much like our mortgage crisis. Plenty of spending without the future of income to pay the debts will create another crisis. I know many don't want to hear this, but a college degree should not be for everyone. The education lobby in the United States has had a hold over our government for decades. We need skilled and intelligent laborers at many levels that can earn a reasonable living. Not all people should go into debt to find employment, but sadly this is the vision that our government has accepted as a solution to our woes. If you look at the graph representing the gold price and the Labor Force Participation Rate you will see that though the rate has continued lower since 2012, gold drifted lower opposed to the norm. That I believe is due to an acceptance or numbing to the current climate, and a false understanding of the unemployment data of late creating a false confidence in the situation. Then take a look at the graph of the participation rate versus the Gross Domestic Product. You can see that the decrease of the participation rate properly signals the direction of the GDP. The lack of growth in the Labor Force Participation Rate indicates that the economy is still a long way off from getting on its feet. This means the gold price has upward mobility on the back of the poor economic environment. Taking into consideration the expected negative factors of Obamacare, the government shutdown and the impending negotiations on the US debt ceiling it behooves the wise investor to consider their position in gold relative to the current market price. | ||||||
Gold and the Unemployment Rate Posted: 04 Oct 2013 12:40 PM PDT Labor Force Participation tells a different story about gold and US joblessness... The GOLD PRICE tells us just like any other indicator what is going on in our country, or economy, writes Miguel Perez-Santalla at BullionVault. The most important part of an economy is simply employment. To ignore or sideline the importance of unemployment statistics is foolish. Including when you are considering the gold price. The unemployment statistic is one of the most important numbers being studied by the Federal Reserve Bank. Their attempt to influence growth in the economy can only be proven out by growth in employment. This is because a growing economy means the need to produce more and in all cases increase hiring. But all the liquidity that is being added by the Federal Reserve Bank, even though it has plainly worked to boost the gold price over time, has had little effect on unemployment. Because most of the money is not reaching the economy, or the people in the private sector. Often times we read that the unemployment rate has dropped. But unfortunately it is the Labor Force Participation Rate that has dropped at a greater rate. So the real unemployment rate is higher than what is reported. Because the participation rate is the barometer that shows how many people looking for work have lost faith that they can find full-time employment. There also seems to be a growth of part-time workforce. This is believed to be caused by the burden that Obamacare will have on small business enterprises. So to avoid the financial burden many smaller firms, instead of hiring full-time employees and paying benefits, prefer to hire part-time employees and avoid participating in the Obamacare scheme. Also related to Obamacare is the increase in expenses to a family of four which apparently will represent $766 per annum basis current studies. This will represent a loss of spendable income. This will in turn slow production and hurt the growth of the economy. In the end, less spending money means less buying which means less employment. But that's not all, if you take a look at our indicators you would see that the trend has not reversed. The trend looks dismal at best. People talk about an improving US economy and I hope that they are right. Unfortunately I believe the disparity between the haves and have-nots is growing. Even those that are able to find jobs are accepting positions beneath their education and experience. What does all this mean to the college graduates who spend anywhere from $50,000-$150,000 for a four-year degree? It means that not only is the college expense not worth the investment but that they are now in a whole that will be difficult to dig out of. If our young and well-educated are not able to find employment at reasonable levels then again we have built a top-heavy pyramid much like our mortgage crisis. Plenty of spending without the future of income to pay the debts will create another crisis. I know many don't want to hear this, but a college degree should not be for everyone. The education lobby in the United States has had a hold over our government for decades. We need skilled and intelligent laborers at many levels that can earn a reasonable living. Not all people should go into debt to find employment, but sadly this is the vision that our government has accepted as a solution to our woes. If you look at the graph representing the gold price and the Labor Force Participation Rate you will see that though the rate has continued lower since 2012, gold drifted lower opposed to the norm. That I believe is due to an acceptance or numbing to the current climate, and a false understanding of the unemployment data of late creating a false confidence in the situation. Then take a look at the graph of the participation rate versus the Gross Domestic Product. You can see that the decrease of the participation rate properly signals the direction of the GDP. The lack of growth in the Labor Force Participation Rate indicates that the economy is still a long way off from getting on its feet. This means the gold price has upward mobility on the back of the poor economic environment. Taking into consideration the expected negative factors of Obamacare, the government shutdown and the impending negotiations on the US debt ceiling it behooves the wise investor to consider their position in gold relative to the current market price. | ||||||
Gold and the Unemployment Rate Posted: 04 Oct 2013 12:40 PM PDT Labor Force Participation tells a different story about gold and US joblessness... The GOLD PRICE tells us just like any other indicator what is going on in our country, or economy, writes Miguel Perez-Santalla at BullionVault. The most important part of an economy is simply employment. To ignore or sideline the importance of unemployment statistics is foolish. Including when you are considering the gold price. The unemployment statistic is one of the most important numbers being studied by the Federal Reserve Bank. Their attempt to influence growth in the economy can only be proven out by growth in employment. This is because a growing economy means the need to produce more and in all cases increase hiring. But all the liquidity that is being added by the Federal Reserve Bank, even though it has plainly worked to boost the gold price over time, has had little effect on unemployment. Because most of the money is not reaching the economy, or the people in the private sector. Often times we read that the unemployment rate has dropped. But unfortunately it is the Labor Force Participation Rate that has dropped at a greater rate. So the real unemployment rate is higher than what is reported. Because the participation rate is the barometer that shows how many people looking for work have lost faith that they can find full-time employment. There also seems to be a growth of part-time workforce. This is believed to be caused by the burden that Obamacare will have on small business enterprises. So to avoid the financial burden many smaller firms, instead of hiring full-time employees and paying benefits, prefer to hire part-time employees and avoid participating in the Obamacare scheme. Also related to Obamacare is the increase in expenses to a family of four which apparently will represent $766 per annum basis current studies. This will represent a loss of spendable income. This will in turn slow production and hurt the growth of the economy. In the end, less spending money means less buying which means less employment. But that's not all, if you take a look at our indicators you would see that the trend has not reversed. The trend looks dismal at best. People talk about an improving US economy and I hope that they are right. Unfortunately I believe the disparity between the haves and have-nots is growing. Even those that are able to find jobs are accepting positions beneath their education and experience. What does all this mean to the college graduates who spend anywhere from $50,000-$150,000 for a four-year degree? It means that not only is the college expense not worth the investment but that they are now in a whole that will be difficult to dig out of. If our young and well-educated are not able to find employment at reasonable levels then again we have built a top-heavy pyramid much like our mortgage crisis. Plenty of spending without the future of income to pay the debts will create another crisis. I know many don't want to hear this, but a college degree should not be for everyone. The education lobby in the United States has had a hold over our government for decades. We need skilled and intelligent laborers at many levels that can earn a reasonable living. Not all people should go into debt to find employment, but sadly this is the vision that our government has accepted as a solution to our woes. If you look at the graph representing the gold price and the Labor Force Participation Rate you will see that though the rate has continued lower since 2012, gold drifted lower opposed to the norm. That I believe is due to an acceptance or numbing to the current climate, and a false understanding of the unemployment data of late creating a false confidence in the situation. Then take a look at the graph of the participation rate versus the Gross Domestic Product. You can see that the decrease of the participation rate properly signals the direction of the GDP. The lack of growth in the Labor Force Participation Rate indicates that the economy is still a long way off from getting on its feet. This means the gold price has upward mobility on the back of the poor economic environment. Taking into consideration the expected negative factors of Obamacare, the government shutdown and the impending negotiations on the US debt ceiling it behooves the wise investor to consider their position in gold relative to the current market price. | ||||||
Fleckentstein - Gold & What Is Going To Make Stocks Crater Posted: 04 Oct 2013 12:12 PM PDT Having warned last time there was a danger that "all hell is going to break loose," today Bill Fleckenstein told King World News "I'm contemplating starting a short fund again to capitalize on that." Astonishingly, Fleckenstein closed his short fund at the dead lows in stocks in early 2009, so the fact that he is looking to open the short fund again is a very dangerous sign for stock market bulls. He also discussed gold, Jim Grant, and the end game. Below is what Bill Fleckenstein, who is President of Fleckenstein Capital, had to say in this fascinating interview. This posting includes an audio/video/photo media file: Download Now | ||||||
Posted: 04 Oct 2013 10:45 AM PDT Gold stocks are inarguably the most-hated stock sector on the planet these days. After they spent 2013's first half plunging precipitously, investors have left them for dead. Even most former contrarians who earned vast profits ... Read More... | ||||||
Brett Arends: Why Uncle Sam is hoarding gold Posted: 04 Oct 2013 09:33 AM PDT By Brett Arends Grab any Wall Street trader in a bar, or any portfolio manager in his office, and he's likely to tell you gold is finished. It's silly, nothing more than a shiny metal, a substance with little use and little real value, a "barbarous relic," and the stuff of nothing more than superstition. Only a fool would own any gold in his portfolio. Right? After all, its value has plunged by $500 an ounce in the past year, and $100 just in the past month. Gold hasn't even rallied during the budget crisis: So much for its "safe haven" status. There is just one nagging problem with this story line. One group of people disagrees. And I am not talking about wacko gold bugs in Arizona ("the ex-husband state") with tinfoil on their heads. I am talking about the people running the United States Treasury. They remain firm believers in gold. Big-time. ... For the full commentary: http://www.marketwatch.com/story/why-uncle-sam-is-hoarding-gold-2013-10-... ADVERTISEMENT You Don't Have to Wait for Your Monetary Metal: Many investors lately report having to wait weeks and even months for delivery of their precious metal orders. All Pro Gold works with the largest wholesalers that have inventory "live" -- ready to go. All Pro Gold can ship these "live" gold and silver products as soon as payment funds clear. All Pro Gold can provide immediate delivery of 100-ounce Johnson Matthey silver bars, bags of 90 percent junk silver coins, and 1-ounce silver Austrian Philharmonics. All Pro Gold can deliver silver Canadian maple leafs with a two-day delay and 1-ounce U.S. silver eagles with a 15-day delay. Traditional 1-ounce gold bullion coins and mint-state generic gold double eagles are also available for immediate delivery. All Pro Gold has competitive pricing, and its proprietors, longtime GATA supporters Fred Goldstein and Tim Murphy, are glad to answer any questions or concerns of buyers about the acquisition of precious metals and numismatic coins. Learn more at www.allprogold.com or email info@allprogold.com or telephone All Pro Gold toll-free at 1-855-377-4653. Join GATA here: Louis Boulanger Now Seminar http://www.gata.org/files/GATAInNewZealand.pdf Gold Investment Symposium 2013 The Silver Summit http://www.cambridgehouse.com/event/silver-summit-2013 Mines and Money Australia New Orleans Investment Conference https://jeffersoncompanies.com/landing/speakers?IDPromotion=613011610080... * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: | ||||||
Currency Wars and the Ghost of Bear Stearns - The Mass Exodus of Gold Bullion Posted: 04 Oct 2013 09:14 AM PDT | ||||||
Currency Wars and the Ghost of Bear Stearns - The Mass Exodus of Gold Bullion Posted: 04 Oct 2013 09:14 AM PDT | ||||||
Crucial China support for gold may fade Posted: 04 Oct 2013 09:10 AM PDT While China has been a stabilising influence on the gold price this year, few believe it will be able to drive the price higher on a sustained basis. | ||||||
The Silk Road Redux: gold’s journey East Posted: 04 Oct 2013 09:10 AM PDT All things bullion will have their epicentre in Asia, writes Sharps Pixley’s Ross Norman, adding, Its less of an 'if' than a 'when' | ||||||
Silver beats gold as Asian demands eases Posted: 04 Oct 2013 09:10 AM PDT Silver tracked and extended the moves in gold, first dipping to a loss of 2.7% for the week and then recovering to last Friday’s finish at $21.80. | ||||||
Indian jewellers hoping to mobilise idle gold through new scheme Posted: 04 Oct 2013 09:10 AM PDT In a show of solidarity with the government, Indian jewellers unveil plans to unlock idle gold across households. | ||||||
Why gold prices don’t reflect fundamentals – Phillips Part 2 Posted: 04 Oct 2013 09:10 AM PDT Gold markets are inefficient, unreflective of fundamentals & understate the metal’s market value, writes Julian Phillips. | ||||||
US gold sales unable to overwhelm Asian demand Posted: 04 Oct 2013 09:10 AM PDT There will be a point in the near future when Asian demand will swamp developed world selling and take complete control of the gold market, says Julian Phillips. | ||||||
Posted: 04 Oct 2013 09:03 AM PDT Shutdown Continue, Debt-Ceiling Looms
It is widely acknowledged that the debt ceiling is a far more significant issue. “The government shutdown is bad enough, but failure to raise the debt ceiling would be far worse, and could very seriously damage not only the US economy, but the entire global economy,” warned IMF President Christine Lagarde. In a report released yesterday, the Treasury Department said “Even the possibility of a default could lead to sharp declines in household wealth, increases in the cost of financing for businesses and households, and a fall in private-sector confidence.” In the event of an actual default, “the U.S. economy could be plunged into a recession worse than any seen since the Great Depression.” That’s a pretty dire warning indeed. I honestly don’t think there is anyone in Congress who wants to take the budget/debt-ceiling battle that far. If the U.S. were to default, all the concessions that might be wrested from these negotiations (or lack there of) would be largely meaningless if the economy were plunged back into a recession before we had even fully recovered from the last one. However, there is a high-stakes game of chicken going on in Washington right now, with each side expecting the other to veer away at the last second. I assume the debt ceiling will be raised and a default will be avoided; because that has always been the case in the past. Nonetheless, what if nobody veers? Or they veer too late… The notion being forwarded that a debt ceiling hike is not an authorization of new debt may be true on the surface, but let’s be honest here: There has never been a debt limit that hasn’t eventually been reached and ultimately exceeded. If you give Congress the headroom to spend more, they’ll always find a way to get there. That brings us back to the seemingly never ending series of short-term Continuing Resolutions (CR) that are being used to fund the government, because Congress hasn’t been unable to pass a budget since 2009. That’s a pretty sorry state of affairs when the world’s economic super-power is stumbling and bumbling from one CR to the next and one debt ceiling to the next. Keep in mind that the CR currently being debated, and caused the shutdown, provides only an additional six-weeks of funding. Even if the CR were passed, we’d be right back in the same place by mid-November. Of course the fact that Treasury will lose its ability to borrow between now and then is a total game changer. Investors are taking notice of our political dysfunction, and we’ve been quite busy this week with clients buying gold and silver as safe-havens. Just about everyone has cited the craziness in Washington as a contributing factor to their investment decisions. Prices don’t really reflect that heightened physical demand yet, and I think that is attributable to selling in the paper market as investors hunker down to see how this all shakes out. | ||||||
David Stockman - This Financial Collapse Will Be Catastrophic Posted: 04 Oct 2013 08:59 AM PDT Today David Stockman stunned King World News when he warned the coming financial collapse is "going to be catastrophic." Stockman also said that we will see "massive selling" of overpriced financial assets, but he also made the frightening prediction that "there won't be any bids." KWN takes Stockman's warning very seriously because he is the man former President Reagan called on in 1981, during that crisis, to become Director of the Office of Management and Budget. He also spoke about what this means for gold and other major markets. Below is what Stockman had to say in the first of a series of powerful interviews that will be released today. This posting includes an audio/video/photo media file: Download Now | ||||||
Posted: 04 Oct 2013 08:12 AM PDT Gold stocks are inarguably the most-hated stock sector on the planet these days. After they spent 2013’s first half plunging precipitously, investors have left them for dead. Even most former contrarians who earned vast profits in gold stocks over a decade have gone ostrich. This is a terrible mistake, as the best times to buy low are when sectors are universally loathed. Peak bearishness occurs right before they soar. I first wrote about ostrich investors back in early 2009, in a very different context. Ostriches are the kings of birds, mighty animals growing up to 9 feet tall and weighing up to 320 pounds! They can run well over 40 miles per hour, and their tremendously powerful kicks can even prove lethal for humans. Yet they have the metaphorical reputation of hiding their heads in the sand in the face of danger. It’s untrue, but useful. | ||||||
Gold and Emperors With No Clothes - From Nero To Nixon To Obama Posted: 04 Oct 2013 07:54 AM PDT Today’s AM fix was USD 1,316.00, EUR 967.01 and GBP 817.04 per ounce. Yesterday’s AM fix was USD 1,309.00, EUR 961.58 and GBP 806.63 per ounce. Gold inched up $1.40 or 0.11% yesterday, closing at $1,317.40/oz. Silver remained unchanged closing at $21.70. Platinum climbed $10.10 or .74% to $1,372.40/oz, while palladium climbed $3.47 or 0.5% to $700.47/oz. | ||||||
Precious Metals Need Equity Market Weakness Posted: 04 Oct 2013 07:47 AM PDT Precious metals are a niche and a niche of the market that is often ignored. When conventional investments do well, there is no need for alternatives like Gold. However, when conventional investments don't perform or perform poorly ... Read More... | ||||||
Continued Growth In U.S. Public Debt Suggests $2,000 Gold – Here’s Why Posted: 04 Oct 2013 07:44 AM PDT The price of gold, on a quarterly basis, is 86% correlated – yes, 86%! – to total government debt going back to 1975… and a shocking 98% over the past 15 years – as can be clearly seen in the chart below. Despite the current rumblings, everyone is aware that the debt ceiling will be raised and will likely surpass $20 trillion by the end of President Obama's term. That would put the price of gold at about $2,000 per ounce. This post was featured on bmgbullion.com under the title Chart of the Week: Correlation Between Price of Gold and US Public Debt. [The post is presented by Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com and www.munKNEE.com and the FREE Market Intelligence Report newsletter (sample here – register here) and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.]Also read: Startling Relationship Between Gold Price & U.S. Gov't Debt Suggests What Price for Gold in 2017?
[Editor's Note: The author's views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.]*http://www.bmgbullion.com/document/buzz/2013-10-02 (© Copyright 2003-2012 Bullion Management Group Inc. All rights reserved. Buy BMG Gold, Silver and Platinum >> To Learn More About BMG Bullion Products) Related Articles: 1. What You Need to Know About the U.S. Budget Deficit & National Debt Q: Don’t laugh at me, but what is a deficit? A: It’s actually not a dumb question. Here’s why. Read More » 2. Debt Clocks Tell the Story: Vicious Upward Debt Spiral Gaining Momentum – Take a Look A vicious upward debt spiral is gaining momentum. The budgets of most advanced economies, excluding interest payments, need 20 consecutive years of surpluses exceeding 2% of gross domestic product – starting now – just to bring the debt-to-GDP ratio back to its pre-crisis level. Read More » The Ponzi bubble is bigger than most can imagine. Western central planners… [continue to try to] suppress gold and silver in order to keep their sorry lives alive. In the process, the destruction of people's financial well- being is unabated… Read More » 4. Startling Relationship Between Gold Price & U.S. Gov't Debt Suggests What Price for Gold in 2017? The price of gold, on a quarterly basis, is 86% correlated – yes, 86%! – to total government debt going back to 1975… and a shocking 98% over the past 15 years! [As such,] it would seem like a no-brainer investment thesis to buy gold… as a proxy for the not-otherwise-investable thesis that US total government debt will increase in the future. [But there is more - and it is disappointment for gold bugs - read on!] Read More »
The post Continued Growth In U.S. Public Debt Suggests $2,000 Gold – Here’s Why appeared first on munKNEE dot.com. | ||||||
Silver Beats Gold as Asian Demand Eases But "Challenges London" as World Hub Posted: 04 Oct 2013 07:43 AM PDT WHOLESALE GOLD rallied from a 1-day low of $1310 per ounce lunchtime Friday in London, but was still trading 1.4% down from last week while European stock markets also reversed earlier losses. The US Dollar rallied from 9-month lows on the currency market as the budget shutdown in Washington saw President Obama cancel a long-planned tour of Asia. | ||||||
Bonus Profits from North Dakota’s Untapped Oil Posted: 04 Oct 2013 06:00 AM PDT The magic number is 10. With current technology, U.S. producers are able to extract around 10% of the shale oil trapped in a given formation. Seems really low, right? Exactly. Today I want to show you the secret behind getting the other 90%. This secret will take America's oil and gas boom to the next level. Better yet, you and I will have a front row seat to profit! As I type North Dakota's Bakken formation is booming – call it the poster child for America's energy renaissance… According to the latest information from the U.S. Energy Information Administration, North Dakota is producing 874,000 barrels per day. That represents one of every 20 barrels the U.S. consumes – not bad for a flyover state, eh? Better yet, according to state officials, output is set to ramp up even more. "Oil production in North Dakota, home to the giant Bakken shale formation, may double to 1.6 million barrels a day by mid-2017" Rigzone reports. Please, please, please, realize the gravity of this situation. 10 years ago the oil output from North Dakota was negligible at best. Today it's the U.S.'s second highest producing state. A sign of the times, to be sure – a profitable one at that! But even though there's mucho oil coming out of the prairie ground of North Dakota, about 90% of the shale oil remains trapped. Back to the magic number above, with production as it stands, drillers are only pulling about 10% of the shale oil to the surface. Indeed, billions of barrels are being left behind. The secret to getting at these bonus barrels is simple: improved technology. You see, the tech revolution in the oil field isn't just a "cool" one-off idea that got us some extra barrels. Nor is it about a few roughnecks stumbling upon a patch of "easy oil", like Jed Clampett. No, today's tech revolution is the beginning of a decades-long production boom. Indeed, hydraulic fracturing, horizontal drilling and 3D seismic are a foot in the door. Over time expect that door to be thrown wide open – in fact, we're already seeing it happen. Industry insiders talk about the boom in different ways… At first there was a lot of "we're in the early innings" talk. I've also heard, in football parlance, that "we're in the first quarter." But more recently the rhetoric is changing. I'm now hearing "we're in the first 5 minutes of the first quarter." Regardless of how you say it, America's shale boom is just getting started. And the leaps and bounds that we're seeing in oil field technology are going to continue moving U.S. production higher. This much I guarantee. I'm like a broken record on this topic, I know. But it's not often a broken record can make you this much money over the long-haul. So before you write off my crazed redundancy, hear me out once more… Last year I muddied my boots outside of Williston, ND – home of the Bakken shale play. The place was booming. The town's single Wal-Mart was packed, you could barely get a hotel room (and at an outrageous price at that) – heck it was tough to find a seat at the local Applebee’s and the parking lot was jam-packed with Ford and Chevy trucks. Oil production was booming, too. But under that same prairieland I witnessed last year, there's even more oil to come. Over the years expect to see production rise, and stay elevated for decades to come… Decades. Indeed, as technology improves, more oil will flow from the rolling hills of North Dakota – same prairie, more oil! And get this: while the Bakken is leaving behind over 90% of the shale oil in place, other shale formations are leaving even more black gold behind. The Eagle Ford for example is producing closer to 5% of the shale oil in place. That means in some spots there's still 95% of the oil left in place. Talk about a future target zone! The point of today's missive is simple: if you've been lulled to sleep by my incessant chatter about America's stunning energy comeback, it's time to wake up! This story is quite possibly the biggest investment opportunity of the next few decades. The production numbers prove it – and the forecasts portend the bigger trend. The secret to unlocking the trapped oil in U.S. fields is tomorrow's technology. As oil drillers get better at finding and producing these shale hotspots, expect to see even more crude and profits! Keep an eye on these pages. I'll be sure to keep you posted on our favorite shale plays. Keep your boots muddy, Matt Insley P.S. Great news for you and me: America's shale boom is following a standard pattern. One that could lead to a swift round of profits! If you haven't heard about the latest round of this massive, game-changing boom – along with a full host of ways to play it – you'll want to sign up for The Daily Resource Hunter. It’s a completely free letter that gets delivered straight to your email inbox every single morning… and it’s full of actionable investment opportunities. Don’t sleep on the U.S. energy story. Sign up for The Daily Resource Hunter, and start bagging profits immediately. This article originally appeared at Daily Resource Hunter | ||||||
Posted: 04 Oct 2013 05:54 AM PDT The GOLD PRICE rallied from a 1-day low of $1310 per ounce lunchtime Friday in London, but was still trading 1.4% down from last week while European stock markets also reversed earlier losses. The US Dollar rallied from 9-month lows on the currency market as the budget shutdown in Washington saw President Obama cancel a long-planned tour of Asia. Major government bonds eased back, and crude oil ticked up towards $110 per barrel of Brent. Silver tracked and extended the moves in the gold price, first dipping to a loss of 2.7% for the week and then recovering to last Friday's finish at $21.80 as the start of New York trading drew near. "Asian demand for physical gold picked up briefly this week when prices fell below $1300 an ounce," says Reuters. Indian wholesalers continue to shy away however, the Times of India reports, with the state of Gujarat seeing its second-lowest gold imports of the last 5 years in September as confusion over anti-import rules persists. "Macau [in contrast] imported more gold jewellery than food and drink in the period between January and August," reported the China city's Statistics and Census Bureau today. "Where would the gold price be," asked Jeremy East of Standard Chartered Bank at this week's LBMA conference in Rome, "if China hadn't come in and mopped up" what India didn't buy over the summer? "I wouldn't have been surprised to have seen gold testing its big support level at $1050," said East. Yesterday, however, "We are not seeing any demand come in from China even at these levels," Bloomberg quoted Chicago trader Frank Lesh at FuturePath, "indicating that people expect [the gold price] to fall further." Singapore dealers today reported ongoing demand for gold bullion from stockists in Thailand and other south-east Asian markets. Malaysia's futures exchange will start trading gold price contracts for the first time this coming Monday. After auctioneers Christies raised $25 million with its first event in China last week, Singapore jeweler Mouawad is now offering a $55 million diamond and gold necklace, Reuters reports. State-owned Chinese bank ICBC – the world's largest bank – is investing $£650m ($1bn) into a new business district at Manchester city airport in the UK, says the Financial Times. "Gold has within living memory remained very much a London-centric market," writes Ross Norman of Sharps Pixley in the latest edition of Commodities Now. "[But] not only is the epicentre of gold trading moving East, so is the vaulting. "The emerging nations are making it ever easier and cheaper to buy and store. Their regulations and taxes are infinitely less onerous." Singapore in particular is already seeing "significant flows of gold" according to ANZ Bank's local head of FX and commodities Eddie Listorti. "Increasing numbers of high net worth individuals and family offices [are] opting for Singapore's status as a safe haven," he says. Looking at the gold price, however, "Events in the US will have the biggest impact over the coming two years," reckons a new report from French investment bank and bullion dealer Natixis. "As the US economic situation continues to improve, so gold prices are at risk of further declines as interest rates rise and the need for a safe haven dissipates." Australia's government forecasting agency agrees, predicting that the gold price will average $1275 per ounce in 2014. "Gold prices are expected to rebound in the near term," says the Bureau of Resources & Energy Economics in Canberra, due to the US Federal Reserve's decision not to "taper" its money-printing quantitative easing program in September. However, "speculation on the tapering is likely again in 2014," it goes on, "particularly if more positive US economic data is reported." Such speculation about US Fed policy, "as well as investor preferences shifting to other asset classes as interest rates recover to normal levels, are expected to result in lower gold prices." | ||||||
Silver: Monitor The Resistance At 22.13 Posted: 04 Oct 2013 05:52 AM PDT Silver has thus far successfully tested the key support at 20.63 (see also the rising trendline). A break of the resistance at 22.13 is needed to suggest something more than a short-term bounce. Another resistance stands at 23.42. Read More... | ||||||
Gold Falls in New York as Investors Weigh U.S. Shutdown, Debt Posted: 04 Oct 2013 05:47 AM PDT 04=Oct (Bloomberg) — Gold fell in New York as investors weighed the outlook for reducing stimulus amid a partial shutdown of the U.S. government and wrangling over the nation's debt ceiling. The first partial government shutdown in 17 years delayed economic releases this week, including the monthly payrolls report and the official jobless rate, which was scheduled for release today. Atlanta Fed President Dennis Lockhart said the shortage of data "would tend to make me somewhat more cautious" about reducing the pace of bond purchases. …"There is a complete lack of interest as of late in the precious metals market," David Govett, head of precious metals at Marex Spectron Group in London, wrote today in a report. "If there is no resolution over the weekend then the market should remain supported and find some buying next week. If there is a resolution, then look for a drop." [source] | ||||||
Posted: 04 Oct 2013 05:35 AM PDT | ||||||
Gold and Silver Physical Reality In An Increasingly Alternative Universe Posted: 04 Oct 2013 04:33 AM PDT We live in a time of great illusion in terms of money, wealth, and justice. Investment banking and finance continue to attract the greatest minds. Fraud of the greatest degree goes practically unpunished. On the surface, to pursue a path toward safety appears to be the ultimate sacrifice, both financially and socially. | ||||||
Obamacare Bust a Buying Opportunity for Stock Market Investors? Posted: 04 Oct 2013 04:21 AM PDT George Leong writes: Obamacare is here after the Affordable Care Act was signed into law in March 2010. The Act dictates that all Americans, poor and rich, will need to have some form of insurance coverage. Americans can select the appropriate level for them from the four levels of coverage—bronze, silver, gold, and platinum. The actual coverage in each plan is the same, with the difference being the deductable you have to pay. Moving from the bronze level to the platinum level, the deductable declines but the initial amount paid for the plan increases. Some Americans may be eligible for government assistance, depending on their financial situation, of course. | ||||||
Gold and Silver Need Stock Market Weakness Posted: 04 Oct 2013 01:52 AM PDT We’ve discussed the negative correlation between precious metals and the stock market. It has now been in place for over two years. Since September 2, 2011, the HUI Gold Bugs Index is down 64% while the S&P 500 has gained 43%. Silver has lost 48% while Gold has shed 28%. It’s not exactly groundbreaking analysis to say that a decline in the general market would be good for precious metals. After all, it’s happened in the past which includes various times in the 1970s as well as the Y2K tech bust. Given the scope of the decline in precious metals, some generalist or mainstream money needs to come in for the sector to sustain a rebound. That money will only dip into precious metals once the general market struggles. | ||||||
Meet Your New Landlord: Wall Street Posted: 04 Oct 2013 01:48 AM PDT Dear Reader, Dan Steinhart here, filling in for David Galland, who's busy kicking off our star-studded Casey Research Summit in Tucson, Arizona, along with the rest of the Casey staff. Just which stars are studding our Summit this year, you ask? Dr. Ron Paul is the biggest name, and is sure to impress with his keynote presentation. But such giants of the investment world as Rick Rule, Lacy Hunt, Jim Rickards, John Mauldin, and of course Doug Casey will also be in attendance, sharing their takes on the global economy and, most importantly, their very best investment ideas. As for me, I'll be spending my Friday in a decidedly different manner, driving down to West Orange, New Jersey, to be at my dear friend Jay's side as he marries his sweetheart this weekend. Given that Jay is one of my very best friends from college, and that we're a rare pair of college buddies to remain just as good friends so many years later, I wouldn't miss his wedding for the world. My only regret is that, despite today's breathtaking rate of technological advancement, humans have yet to figure out how to defy physics by being in two places at once. That, combined with the geographic reality that Tucson is 2,389 miles from West Orange, means I won't be attending this year's Summit. Luckily for me, we record every second of the conference, so although I can't be in the same room with the investment gurus and legends, I'll still be able to absorb their knowledge and most profitable investment ideas by doing the next best thing: listening to the audio after the Summit concludes. If you're in the same boat as I and would like to attend the Summit but simply cannot due to other obligations, click here to preorder the audio collection and save $100 off the regular price. As I need to hit the road shortly, I'll now pass the baton to Doug French, who has much to say about the apparent recovery of single-family home prices. He asks and answers: just who is buying all those single-family homes that seem to be flying out of inventory faster than builders can build them? Meet Your New Landlord: Wall StreetDoug French, President of the Mises Institute Amongst all the news of how glorious the housing market is comes the turd in the punch bowl: the Federal Housing Administration (FHA) is shaking its tin cup at the Treasury, asking for $1.7 billion to shore up its insurance fund. Its reserves have been depleted by defaulted mortgages, despite the Case-Shiller Index being up 12.4 percent from one year ago, its fastest annual rise since 2006. Despite this rip-roaring price action, the average home price is still 21 percent below the 2006 peak. Which might explain why the FHA must go to Uncle Sam for help. The hole in the FHA reserves comes entirely from losses in the agency's reverse-mortgage program. Reverse mortgages are what aging celebrities like Fred Thompson and Henry Winkler pitch on TV. Thompson says the average reverse-mortgage borrower can obtain $130,000 in tax free cash with a government-insured reverse mortgage and use it to live the retirement of their dreams. According to American Banker, "Many seniors who received the loans in a lump sum were later unable to pay taxes and insurance, resulting in a wave of defaults. The reverse mortgage program was projected to have a $5.2 billion deficit this year." A report issued last November from an independent actuary projected losses for the agency over the next 30 years that will put it $16 billion in the red. Despite the housing market's improvement, the FHA's serious delinquency rate is still a whopping 8.47%. The agency insured 27 percent of all mortgages last year, and along with Fannie Mae and Freddie Mac, dominates mortgage finance post-crash. At the end of the second quarter, nearly 24 percent of homeowners were underwater. In parts of Nevada, California, and Florida, the percentage is more than double that. Still, Wall Street is in love with Main Street's houses again. Not fancy structured financial products stuffed with mortgages of various quality. This time, companies like Blackstone Group LP's (BX) Invitation Homes are buying up homes by the dozen. Invitation has purchased 32,000 homes in 13 markets, focusing on locales like Phoenix, Las Vegas, and Orlando. The company has invested $6 billion into single-family detached rental homes that it plans to sell when the market recovers. Blackstone believes housing prices are 22 percent below the 48-year trend line between 1951 and 1999. As William Cohan writes in the Atlantic, "It's as if the run-up in the 2000s never happened." Up until now, the landlord business has always been a mom-and-pop industry. Blackstone figures it can professionalize the business, offering excellent customer service such as 24-hour on-call maintenance. Of course, cheap money has made this rental proposition compelling for Wall Street, while tight money for everyone else has cleared the playing field for the big players. Rental REITs on the RiseThe rush to form publicly traded rental REITs began with Silver Bay Realty Trust (SBY) going public last December, followed by American Homes 4 Rent (AMH) and American Residential Properties (ARPI). The question is whether the economies of scale exist to manage multiple units in disparate locations. Managing 100 separate houses is more labor intensive and expensive than running a 100-unit apartment complex that sits on five contiguous acres. Speaking on the second-quarter conference call of apartment REIT Equity Residential (EQR), company CEO David Neithercut commented on the single-family rental business. "I think that they will be more challenging to manage than people think. I think that it's likely they will underestimate tenant credit quality, turn costs [i.e., cleaning, painting, repair], re-leasing expenses, capex [or capital expenditures] and maintenance... Not that it can't be done, but the notion that it can be done as efficiently and with the same profit margins as apartments is comical." Chris Meyer, the author of Capital and Crisis, recently cited the comments of Camden Property Trust (CPT) CEO Keith Oden. Camden is a large apartment REIT, but Oden said on his company's earnings call that his company had tried to pencil out a single-family portfolio. His team couldn't make sense of the numbers. For instance, he said developers are modeling $500 for capital expenditures. "That's just astonishing," he said. "The number could be five times that by the time you rip the carpet out and replace the sheetrock." He considers the capex numbers "silly." Legendary property investor Sam Zell called managing a pool of houses "a hell of an operation to run," and made the point that no one has ever successfully made such an investment work. Professor Christopher Leinberger echoes Zell's concerns. "You can cobble something together," but many units "are going to fall through the cracks as far as day-to-day management attention is concerned." Unlike buying a completed and fully leased apartment project, these REITs are acquiring properties so fast their vacancy rates are around 50 percent. This has some investors asking hard questions. "You don't see REITs in any other sector coming public when they're not fully occupied," Jim Wilson, of JMP Securities, told the Wall Street Journal. "So the investors are saying, 'Are you actually getting these things leased?'" In his article for the Atlantic, Cohan points out that most single-family homes are not designed and built for the heavier wear and tear that's normal from renters. Also, housing in one market is not the same as housing elsewhere. Consumer tastes change. Young people today are less inclined to get married, have kids, and flood suburban subdivisions. Today's Dallas could be tomorrow's Detroit. Looming over and above all of these unsolved problems, interest rates are still near record lows. When they rise, the yields produced by these REITs will become less competitive with safer assets. Investors tempted to play the rental market by purchasing shares of these housing rental REITs should think twice. Yes, with interest rates ticking up, these shares have been punished by the market of late. But the lower prices do not denote bargains. The Fed's low rates have created a real estate price bounce, but it is only temporary. When the dominoes start to fall, it will be clear that the Fed has merely set up investors for more punishment. Dan again. I couldn't help but chuckle when Doug's article came to me across the wire. Not because I find it funny that renters may soon have to call Goldman Sachs to fix their leaky roof, but because the article reminded me of what Andy Miller, real estate expert and correspondent to The Casey Report, had to say on the matter way back in February 2012. Andy gave The Casey Report subscribers early warning of this very phenomenon over a year ago, when Wall Street's purchase of Main Street's homes was still just a whispery rumor. He dubbed the phenomenon "hot money," and had this to say: The only way [high real estate prices] can be explained is that these institutional buyers are loaded up with hot money. By "hot money" I mean that they are given money by some pension fund or life insurance company, and when institutions allocate money to a private equity fund or a hedge fund, they do so with a time limitation. So if I'm ABC pension fund and you have a private equity group that is focusing on acquisition of real estate and real estate notes, I'm going to give you 24 months to place my money. If at the end of 24 months you haven't placed my money, you have to give it back to me. So there's a tremendous amount of pressure on these groups today to place the money. If they don't, they lose it, which means they're out of business. Andy then elaborated on the hot-money trend in a more recent interview with The Casey Report in July of this year, citing an eye-popping statistic: We now have organizations, gargantuan institutions like private equity funds and real estate groups, buying hundreds of thousands of homes… in normal times, two-thirds of real estate activity is organic, meaning people buy homes to live in them. Today, that ratio is reversed: more than two-thirds of all real estate activity in the country today is by either investors or first-time homebuyers. That's not a recovery. It's easy to see why Andy is our go-to guy for all things real estate: he sniffed out the hot-money trend long before it was even a thing. The statistic that he cited—that investors and first-time homebuyers are driving two-thirds of all real estate activity—is crucial, and here's why: homeowners who actually live in the homes they own offer support to the real estate market in tough times. If real estate prices take dip, you wouldn't tell your wife and kids to pack up their things because you're selling the house. Price bumps are largely irrelevant to you. Contrast that with an investor who views a house as a financial asset, like a stock. As long as prices are rising, he's content. But when prices take an inevitable a dip, investors offer flimsy support because they're the first to flee. If you're in the market for a home and your rationale for buying includes "riding the wave" of recovering home prices, put down the pen and step away from the mortgage application. The sturdy base of homeowners that historically supported US real estate ain't what it used to be. Until the majority of homes are back in the hands of the families who live in them, there's serious downside price risk. Real estate is just one of the many trends we keep a close eye on in The Casey Report. If you're interested in staying ahead of those trends and understanding what's really going on in the investment world beneath the obvious surface, a subscription to The Casey Report is easily one of the best investments you can make. With our three-month money back guarantee, you can cancel anytime within those three months for a full and prompt refund. There's exactly zero risk. Click here for a trial subscription. I have one more article to share with you today, this one by Dennis Miller, editor of Miller's Money Forever. With the ballyhooed opening of Obamacare's health exchanges earlier this week as a backdrop, Dennis shares his experience traveling abroad, on a mission to seek options beyond the rapidly degrading US healthcare system. My Antidote to the Dirty Obamacare PillDennis Miller, Senior Editor, "Miller's Money Forever" I wish I never had to write this article, but I cannot put it off any longer. There are life-threatening secrets you need to know today. In the fall of 2009, my wife Jo and I went to a town hall meeting in Illinois. The guest speaker was a member of the House of Representatives who served on the committee putting together the law now known as Obamacare. The Congressman stood next to a draft of the bill and answered our questions by reading straight from the text. Most of us left terrified, hoping the bill would never pass. Jo and I were so aghast that we attended several International Living conferences and even traveled to Costa Rica and Panama to investigate international healthcare options. The thought of going to a hospital where we didn't even speak the language was unnerving, but we needed to know our options. We spent time with the president of the Johns Hopkins Hospital in Panama—a real world-class facility with mostly US-trained and board-certified physicians. He laid out the details of international medicine for us: "We are gearing up for an onslaught of Americans coming here for health care which they will find denied or delayed in the United States." Much like Canada, eventually Americans will have to leave the country to get quality, timely health care. Like most countries, in Panama you either have insurance from a carrier the hospital does business with, you pay out of pocket in advance, or you don't get treated. So, we looked into obtaining international insurance and discovered two things. First, the policies are expensive: over $12,000 for the two of us, who are both currently covered by Medicare. Second, if you want a policy, you need to be under 75 years of age; 75-plus trips around the sun renders you uninsurable. At the time, Jo and I decided to put it off. Health care in that part of the world is currently less expensive than in the United States, so we took our chances and self-insured. If we needed treatment, we would pay for it ourselves. Obamacare is now the law of the land. We can't put it off dealing with it any longer. Disagree? Here's a frank look at the law's dirty secrets, courtesy of a few friendly experts. During our webinar last month, David Galland asked FOX Business reporter John Stossel about his recent book: "You write that, 'Where governments control health care, but want to limit the costs, everyone has to get in line.' … and then you go on to say, 'Once you accept the idea that taxpayers should pay, then individual choice dies. Someone else decides what treatment you get, and when.' … "It sounds to me like the end result [is] the government basically decides who lives and who dies. Could that really happen?" Stossel replied: "Sure. I imagine it already happens under Medicaid; they won't pay for every experimental treatment. And in some cases that means who gets it lives and somebody who doesn't dies. But when somebody else is going to pay, there is going to be a limit on that. And the question is: who's going to set the limit? If you pay, you get to set the limit. … It should be an individual choice that you weigh based on the cost, but right now with no cost, nobody even thinks about it. "The people at FOX are fond of saying … there's going to be this unelected committee of bureaucrats that's going to decide what you get, and they'll decide whether you live or die. … Would elected bureaucrats deciding for you be any better? No. It's the idea that others will decide for us, and that's what happens when it's a third-party payment." That exchange jogged my memory back to an article Dr. Elizabeth Lee Vliet penned in July: 10 Reasons Why Obamacare Is Going to Ruin Your Medical Care… and Your Life. Dr. Vliet is an acclaimed expert on the enigmatic law, and one of our featured speakers at this week's Casey Summit in Tucson. She wrote (all emphasis in original): "Higher expenditures to provide medical services lead to rationing of medical care and treatment options to reduce costs. This is the mandated function of the Independent Payment Advisory Board (IPAB): to cut costs by deciding which types of medical services to allow… or disallow. "Under current regulations, if medical care is denied by Medicare, then a patient is not allowed to pay cash to a Medicare-contracted physician or hospital or other health professional. Patients who need medical care that is denied under Medicare or Medicaid will find themselves having to either: 1) look for an independent physician or hospital (quite rare these days); or 2) go outside the USA for treatment." Huh. So my cash won't be good enough for US doctors or US hospitals. Good thing I was gearing up to interview Nick Giambruno, editor of International Man, for the August issue of Money Forever, when I first read those frightening statements. It's strange how Nick's comments on currency controls wound up speaking to my healthcare worries. Here's what he had to say: "Currency or capital controls are a favorite option in the tool box of a desperate government and are fairly common in the world today. Though they come in many shapes and sizes, capital controls are government regulations that prevent you from taking your money in and out of a country. The imposition of capital controls usually precedes some form of wealth confiscation (a currency devaluation or deposit confiscation among other measures) and always comes as a surprise to the average person. By their nature, capital controls have to come as a surprise in order to be effective. … "There were many… [Cypriots] who saw the writing on the wall and had previously moved to diversify a portion of their savings internationally—most commonly with a Swiss or other European bank account. … | ||||||
Government Shutdown, Debt Ceiling and Other Bullish Factors for Gold Posted: 04 Oct 2013 01:34 AM PDT The partial government shutdown that began this week is not going to have a quick resolution. Both sides of the political aisle seem to be entrenched and unwilling to negotiate. It is political theater to be sure, but there are real world consequences and investment opportunities at hand. The cost of the government shutdown is estimated at roughly $300 million per day, based on the lost wages of some 800,000 government workers. While the initial reaction of investors was to send stock prices higher, the odds of a major shock to the economy or full-blown correction increase with each day the government remains shutdown. | ||||||
U.S. Government Shutdown: Next Step Dollar Collapse? Posted: 04 Oct 2013 01:27 AM PDT Not a single person might make a conciliatory sentiment for rehashing cautioning that, on account of the grim Obama administration and Republicans, Uncle Sam is closed down. Genuine monetary analysts are currently anticipating mobs in the streets that there is presently nothing the USA can do to avert the fall of its currency, and its economy. It has no reserves to back its worth, and has the most indebted country in the world, is dependant of the credit from America's previous foes. | ||||||
Quality over Quantity Stressed at Colorado Conferences Posted: 04 Oct 2013 01:00 AM PDT If it is fall, it must be conference season in Colorado. The Denver Gold Forum, held Sept 22–25, was an invitation-only event billed as featuring seven-eighths of the world's publicly traded gold and silver companies measured by production. It was preceded by the Precious Metals Summit in Beaver Creek, which focused on smaller, emerging companies, some 90 of them with market caps of at least $20 million. Attendees included analysts, fund managers and institutional investors eager to hear updates on companies they own—or may want to own in the future. The Gold Report Publisher Karen Roche and Associate Publisher Jason Mallin were there and brought back these reports. | ||||||
Quality over Quantity Stressed at Colorado Conferences Posted: 04 Oct 2013 01:00 AM PDT If it is fall, it must be conference season in Colorado. The Denver Gold Forum, held Sept 22–25, was an invitation-only event billed as featuring seven-eighths of the world's publicly traded gold and silver companies measured by production. It was preceded by the Precious Metals Summit in Beaver Creek, which focused on smaller, emerging companies, some 90 of them with market caps of at least $20 million. Attendees included analysts, fund managers and institutional investors eager to hear updates on companies they own—or may want to own in the future. The Gold Report Publisher Karen Roche and Associate Publisher Jason Mallin were there and brought back these reports. | ||||||
Quality over Quantity Stressed at Colorado Conferences Posted: 04 Oct 2013 01:00 AM PDT |
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