Saturday, October 12, 2013

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Gold looks forward to US Treasuries EUR USD for guidance: Barclays

Posted: 12 Oct 2013 06:04 AM PDT

Barclays Research pointed out in a weekly report that unlike in 2011 when US debt ceiling debate caused prices to swing from $1500 to $1800 per ounce ina month, the yellow metal is not gaining ground in 2013 despite bullish macro economic issues.

Silver and Gold Where We Owe It to Ourselves

Posted: 12 Oct 2013 04:04 AM PDT

The ultimate rationalizationAn entire monetary science was born from the phrase "we owe it to ourselves". That economic growth comes from credit expansion, and not through the actual production of good and services, has become empirical fact.

Monex Precious Metals Review: Gold support $1249, Silver $20.95

Posted: 12 Oct 2013 03:24 AM PDT

Silver support is now anticipated at $20.95, then $20.60, and then $19.58 . . . and resistance anticipated at $21.55, then $22.37, and then $22.89.

How the Fed is manipulating the gold price down when it should be going up

Posted: 12 Oct 2013 01:04 AM PDT

What’s up with the gold price these days? The US dollar is under huge pressure from the crisis in Washington and the traditional season of gold buying is upon us. So why is the gold price falling? It’s the Fed of course which has backed itself into a corner and is now intervening in the gold futures market to defend the dollar.

What the Fed is doing is going short gold and long the dollar and relying on market commentators to do the rest by panicking holders of gold. The Fed does not do this directly but via its collusion with the two biggest bullion banks.

Naked shorts

They do the naked shorting for the Fed in the bullion markets and long-time traders can see this happening a mile off. What the banks are doing is obvious, who is pulling the strings only a little less so.

The quid pro quo for the bullion banks is that they have the insider knowledge of the market and they can start to join the other side of the trade while the free market participants are being duped.

So when you read the ilk of Goldman Sachs saying that ‘gold is a slam dunk sell’ you can be very confident they are actually buying. These banks are going long in gold for the next swing of the pendulum as the Fed further loses control over the US dollar and bond markets.

It’s actually very bullish for the gold price when these guys are saying to sell. The wonder is that anybody in the market takes them seriously but some do and that is a problem.

Watch this week

How long will this situation take to resolve itself. Well to say matters in financial markets are coming to a head this week is something of a massive understatement. One blink and the price of gold and silver will shoot up.

Perhaps you can’t fight the Fed but you can just wait until it shoots itself in the foot with both barrels!

Indirect Exchange : the Gold Standard

Posted: 11 Oct 2013 11:30 PM PDT

Mises.org

SD Weekly Metals & Markets: 2 Million Oz of Paper Gold Break COMEX Gold Market

Posted: 11 Oct 2013 10:52 PM PDT

SD Weekly Metals & Markets: 2 Million Oz of Paper Gold Break COMEX Gold Market

On this week’s Metals & Markets Wrap The Doc & Eric Dubin cover: Ongoing metals manipulation visible across the board; we’ll document this week’s gold and silver lunacy- & cartel signaling minutes prior to dumping 17,000 paper gold contracts on the market between 8:43 and 8:45am: triggering a stop of Comex gold trading as the [...]

The post SD Weekly Metals & Markets: 2 Million Oz of Paper Gold Break COMEX Gold Market appeared first on Silver Doctors.

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

China stews as it tries to reduce reliance on U.S. dollar

Posted: 11 Oct 2013 08:31 PM PDT

GATA

#T2SDA Truckers Shutting Down Traffic in DC *Live Updates!

Posted: 11 Oct 2013 06:05 PM PDT

#T2SDA Truckers Shutting Down Traffic in DC *Live Updates!

The #T2SDA Truckers to Shut Down America 3 day protest began this morning, and the first images of fed-up truckers blocking traffic on DC’s I-495 inner loop are coming in as truckers are reportedly blocking the loop 4 wide at 10 MPH:                       “Use express [...]

The post #T2SDA Truckers Shutting Down Traffic in DC *Live Updates! appeared first on Silver Doctors.

Is JPMorgan Being Unfairly Singled Out?

Posted: 11 Oct 2013 05:52 PM PDT

JP Morgan (JPM) is the first big bank to suffer a quarterly loss on account of multi-billion-dollar legal bills. It is also the most profitable bank in America (or was, up until this morning). Which means there are three possibilities here:

  1. The profits and the fines share a common cause: the internal behavior which produces massive profits also - eventually - has a tendency to produce massive fines.
  2. The profits and the fines are unrelated: it's just unfortunate bad luck that such a well-run, profitable bank should come unstuck in this manner.
  3. The profits in some way caused the fines: regulators feel comfortable going after JPMorgan precisely because it has a fortress balance sheet and can easily pay the fines.

All three of these have a kernel of truth to them, I think. If you look at misbehavior like the Libor scandal or the London Whale debacle, the

Busting The Myths That Could Wipe Out Your Investments: Louis James, Marin Katusa And Rick Rule

Posted: 11 Oct 2013 05:15 PM PDT

The Gold Report sat down with three of the mythbusters-in-chief at the recent Casey Research 2013 Summit. Louis James, Marin Katusa and Rick Rule debunk myths that range from quantitative easing to crowdfunding, and touch on an array of resource sectors, including gold, platinum, palladium and oil. Get insights about the work investors need to do to succeed and learn why age matters.

Myth: Quantitative Easing Is Being Tapered Off

The Gold Report: Why is the theory of tapering or turning quantitative easing [QE] off a myth and who really benefits from QE?

Rick Rule: My view, as an investor, not an economist, is that QE is misnamed. I think it's another way of saying counterfeiting. It exists in large measure because we're running a trillion-dollar deficit and, while we can hoodwink investors into funding two-thirds of it, we need to print away the last third.

TGR:

Can Bitcoin Be Tamed?

Posted: 11 Oct 2013 05:12 PM PDT

Bitcoin, the virtual alternate currency that has swept the tech world, made headlines again recently when a billion-dollar Bitcoin-based enterprise called Silk Road was shut down in the wake of the arrest of its operator on a variety of shocking charges. The crack-down was cheered by investors and entrepreneurs hoping to convince regulators of Bitcoin's respectability. But even if the online currency is corralled and regulated and co-opted by the government, there's nothing to say "miners" outside the regulatory system can't continue transacting with non-official, free-range Bitcoins. After all, the decentralized alternative currency was designed for just that purpose.

Description: 
Shut-Down of Silk Road was Cheered by Some Bitcoin Investors Hoping Bitcoin Will be Regulated and Government-Sanctioned. But Can a Decentralized Virtual Currency Be Regulated?

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‘Dollar About to Crash’, 170,000 Tons of Gold Held in Secret Hawaii Vault – World Bank Whistleblower

Posted: 11 Oct 2013 05:05 PM PDT

'Dollar About to Crash', 170,000 Tons of Gold Held in Secret Hawaii Vault – World Bank Whistleblower

In this interview with RT, World Bank whistleblower Karen Hudes drops numerous bombshells- claiming that the dollar is valueless and is about to crash. Perhaps of most interest to precious metals investors, Hudes appears to allude to the legendary Yamashita’s Gold- claiming that over 170,000 tons of gold bullion- more than the global stated reserves- [...]

The post 'Dollar About to Crash', 170,000 Tons of Gold Held in Secret Hawaii Vault – World Bank Whistleblower appeared first on Silver Doctors.

Debt Ceiling, Government Shutdown and More with BullionBullsCanada.com

Posted: 11 Oct 2013 04:15 PM PDT

Andy Hoffman spoke with Jeff Nielson of BullionBullsCanada.com about the government shutdown, the debt ceiling, quantitative easing and what it means for gold and silver.

 Debt Ceiling, Government Shutdown and More with BullionBullsCanada.com

 

 

 Similar Posts:

Week In Review: Gold And WTI Fell While Brent Rose

Posted: 11 Oct 2013 03:37 PM PDT

By Sumit Roy

Commodities were mixed this week despite signs of progress on solving the budget showdown in Washington. Gold led all decliners; natural gas was the best performer. Stocks, as measured by the S&P 500, rose by less than 1 percent, bringing their year-to-date gain up to 19.2 percent.

Macroeconomic Highlights

The early part of the week featured more deadlock between Republicans and Democrats, with no signs that the impasse over the government shutdown or debt ceiling was going to end soon.

Then on Thursday, a breakthrough was seen when House Republican leaders unveiled a plan to raise the debt ceiling for a short period of time. The extension would give the Treasury room to borrow through Nov. 22, and is contingent on the willingness of Democrats to participate in broad spending reduction negotiations. President Obama has not said whether he will agree to the terms, and negotiations remain

Oct 11c/GLD drops a massive 5.4 tonnes/comex dealer gold drops to 721,463 oz or 22.44 tonnes/another raid on gold/silver

Posted: 11 Oct 2013 03:06 PM PDT

What Happened To The Gold Price Today?

Posted: 11 Oct 2013 02:58 PM PDT

It was another one of those days that got gold enthusiasts stunning when looking at the daily gold price chart. Right in between the London AM and PM Fix, at 8h30 EST more precisly, the gold price went some $30 lower in a matter of seconds. The following chart is a 5-minute futures charts and it shows the event with the gap down.

gold price 11 october 2013 price

Right after the event, Zerohedge wrote that 800,000 ounces of notional gold were dumped  and that in the space of 4 minutes, almost 2 million ounces notional were flushed into the gold futures markets.”

There is obviously no connection whatsoever between this type of event and the real world of gold. With the words of Julian Philips of GoldForecaster: “With the world's richest banks involved in nearly all global financial markets and capable of moving prices to suit themselves, it becomes easy to ensure prices either do or don't reflect demand and supply.”

Later on, Zerohedgeexplained in great detail that the price drop resulted in a short shut down of gold futures trading. The technical term used for such an event is “stop logic”:

What is Stop Logic? Basically, it is a the mother of all stop hunts, which takes out the entire bid stack and continues until such time as there is absolutely no liquidity left in the entire market! Of course, the liquidity we re-enter at a time when the prevailing price has been reset substantially lower on what is basically a “banging the open” type of event, or in this case market open, when one or more traders attempt to generate the well-known “momentum ignition” event so known to HFT algo manipulators everywhere. The chart below from Nanex show precisely when and how the trading was stopped for 10 seconds in the aftermath of the furious sell trade.

The nanosecond chart shows the gap, or stop logic, which resulted in a temporary shutdown of trading.

Gold shutdown 11 october 2013 price

Readers interested to know more about the workings of manipulation in the paper market can read pieces that appeared earlier on our site:

How Can The Gold Price Drop In A Matter Of Milliseconds?
Gold Price Manipulation Proven On The Intraday Charts
Why The Silver Manipulation MUST End by Ted Butler

Gold sinks 1.8% in 2 minutes amid ‘hope' of US debt deal

Posted: 11 Oct 2013 02:56 PM PDT

The move came on suddenly heavy volume in the gold futures market, which had previously been quiet after Thursday's fall through $1,300.

US Treasury Issues Fiscal Position Summary For 2013: Gold Investors Don't Miss The Forest For The Trees

Posted: 11 Oct 2013 02:31 PM PDT

With all the hoopla about the US government shutdown and the upcoming debt ceiling drama, investors may be overlooking a simple, yet important report issued by the US Treasury at the end of September that sums up the latest fiscal year - the US Debt Position report for 2013. This is actually one of the most important data points for long-term gold investors because it goes into one of the most fundamental reasons why gold needs to be owned by investors.

Here's the latest US Treasury reported Debt and Activity Position:

Though this report is a summarized version of far more detailed reports on the US debt position, it does have a very interesting chart on the first page:

(click to enlarge)

Investors should note that the 2013 debt total is not included in the above chart, but all one has to do is add another orange bar about

Porter Stansberry: This could be the most shocking "End of America" prediction I've ever made

Posted: 11 Oct 2013 02:24 PM PDT

From Porter Stansberry with Sean Goldsmith in S&A Digest Premium:
 
The United States is still – by a wide margin – the most powerful and wealthiest nation in the world. We have a greater productive capacity than any other nation. It's probably larger than all of Europe combined.
 
And despite what many people believe, I (Porter) don't think our country's best days are behind us. That may sound funny coming from the person who predicted the "End of America."
 
But my thesis is about the end of the dollar's status as the world's reserve currency and the devastating economic crisis that would follow. But America has recovered from crises before (and usually emerges stronger)… I've always said I thought our political union would survive…
 
I'm still an optimist. I think that sooner or later – and I can't say when – the madness of our current economic policies will be so evident that this country will make wholesale changes. I just don't believe we'll vote ourselves down the abyss.
 
Eventually, the middle class will realize that this idea that we can tax, borrow, and spend our way to prosperity is failing. By then, real wages will have fallen so far… the wealth gap will become so pronounced… the collusion between the government and the banks will become so evident that people will vote in a candidate willing to take some radical steps to get us on the right track. Somebody like a Ron Paul, for example.
 
And you would be amazed how quickly even the huge hurdles we're setting for ourselves could be overcome just with some sensible policies…
 
First, imagine what would happen if we just had a flat income tax rate for everybody. We'd abolish every other tax – corporate taxes, social security taxes, payroll taxes, and every other federal tax, levy, fine, and fee.
 
Instead, you'd just pay 20% of your income, whatever the source. We'd get rid of the different tax structures for different corporate entities and the different shelters and rebates. Wherever your source of income – dividends, capital gains, wages, etc. – we all pay the same, flat rate.
 
So the first thing we need to do to get our country back on track is pass a flat tax. We could take two other steps that would revive our economy and our standard of living…
 
We need to declare the federal government isn't going to be in the business of borrowing money anymore, period…
 
We also need to pass a balanced budget amendment that keeps us from financing foreign wars and an endless welfare state…
 
We need true welfare reform, not the kind you saw in 1996, where everyone just jumped from welfare to disability. If you have some kind of an emergency situation, you can apply to the federal government for help for a limit of $5,000 over six weeks (to pick arbitrary terms). And that's it… You won't get any money from the government again.
 
Then, in addition to those two, we need to get out of the business of trying to regulate every single banking transaction in the world…
 
In the financial crisis, who got in trouble? Was it the hedge funds that are unregulated and backed with private capital? No. It was the banks that are heavily regulated and backed with public capital.
 
Instead, to ensure everyone's money is safe, we back the currency by gold. We'd put up 20% of every dollar in existence in gold.
 
We need to stop trying to regulate the banks and guaranteeing the deposits. Leave that up to the market. But guess what? You won't even have to put your money in a bank if it's backed by gold. Then, all you have to do is put it under the mattress and you'll be fine.
 
With those three steps… we'd have a fair and transparent tax policy. We'd have a sensible federal budget with no budget deficit. And we'd be out of the business of trying to control every dollar that's spent and the way it's banked around the world.
 
If we just did those three things, the size of our economy could double in five years. It would be an unbelievable boom because America is still the largest market in the world. We still control the global language of business. We still have the best computing and software companies, the best high technology. We have unlimited amounts of energy (thanks to the shale oil and gas boom), despite what the idiots in the government tell you.
 
But as long as we continue with the idiotic socialist policies we're currently pursuing, we are going to bankrupt ourselves just like every other socialist nation… no matter how wealthy and powerful we are.
 
Crux note: Porter is optimistic about the long term. But he's preparing for a crisis in the meantime... And he's making it easy for his readers to do the same. For a limited time, Porter has arranged for all interested readers to access a "blueprint" for escaping the "End of America" written by one of the world's most respected investors absolutely FREE. Click here to claim your copy.
 
More from Porter:
 
 
 

Gold Elliott Wave Technical Analysis – 10th October, 2013

Posted: 11 Oct 2013 02:15 PM PDT

fxstreet

The Treasury Admits Gold is King

Posted: 11 Oct 2013 02:10 PM PDT

Based on what I've observed over the past eleven years, its days like today when my job is most important.  Many topics to discuss – including both big picture issues and the day's farcical "trading" action.  We'll start with the latter; as I'm sure it's on most of your minds.

Let's face it, the Cartel has declared WAR on the Precious Metals; an all-out offensive, I might add, attempted countless times throughout history, but ALWAYS ending in failure.  They may think this time is different because the (currently shut down) CFTC is in their pocket; the anti-PM PROPAGANDA machine is turned up full tilt; and an assortment of technologically advanced naked shorting tools sit at their disposal.  However, all the PAPER PMs in the world don't add up to a single ounce of real, PHYSICAL metal; and given this year's maniacal price suppression – to levels WELL BELOW the respective costs of production – it's just a matter of time before the 15%-25% production decline I am forecasting comes to pass.  To wit, the world's largest silver miner announced a 17% year-over-year decline in the first half of the year; and this was before the full effect of the price smash was recognized.  Heck, Coeur D'Alene – the world's ninth largest silver producer – this morning announced a 10% sequential production decline; which I ASSURE you, is just the tip of the iceberg for the global silver mining industry.

Meanwhile, there's that little old thing called fundamentals that even the most powerful, market manipulating Cartel can't control.  History's most insane, worldwide money printing experiment hasn't produced an iota of real economic recovery; which is why ALL major Central banks keep printing, while global unemployment remains at or near historic highs.  At such depressed prices, PMs don't need weak economies to catalyze buying.  However, that's EXACTLY what they're getting; and will, in spades in the coming years – as Central bank PRINTING PRESSES continue to fuel inflation; while "big government" cannibalizes real business; and inexorable population growth tightens demand for REAL ITEMS OF VALUE.  Meanwhile, the "all's well" PROPAGANDA machine continues to spout relentless LIES about "recovery"; which frankly, even a reasonably intelligent fifth grader can see through by now…

World GDP Forecasts

I mean geez; the people are practically SHOUTING it.  To wit, we've all heard the term "it's the economy, stupid"; and when it comes to government approval ratings, ONLY the economy determines how people opine (albeit NOT when it comes to actually voting, when whichever candidate promises the most entitlements wins).  Per below, not only is government approval at an ALL-TIME LOW, but by a wide margin

Americans satisfactions with

Today's "economy" is governed entirely by the flow of credit from the Federal Reserve – either altering or subsuming nearly all legitimate, free market business practices.  Throw in draconian government regulations like Obamacare – not to mention, the fact the government is by far the nation's largest employer – and you have an economy that long ago left "capitalism" in the dust, en route to its supposed arch-nemesis of communism.

Case in point, the "banking" sector; which no longer "banks" much of anything.  These INSOLVENT, vulture institutions have been taken under the governments wings – permanently.  Thus, they no longer lend to the public; but instead, simply take free ZIRP and "QE" funds to speculate with and pay bonuses.  Their losses are 100% covered by the government, and "profits" emanate principally from the FASB's 2009 ruling that banks can value toxic assets at whatever fantasy prices they choose.

This quarter, the ENTIRE ECONOMY has seen a freefall in earnings expectations; in fact, one of the steepest declines EVER, particularly when measured not by ambiguous, statistically insignificant "diffusion indices," but HARD DATA.  Gee, I wonder if this economic disaster has anything to do with the 10-year Treasury yield – as a proxy for the yield curve – rising from a Fed-suppressed RECORD LOW of 1.5%, to a whopping 2.9%.  And to that end; gee, I wonder if the Fed – under the chairmanship of "uber-dove" Janet Yellen – will consider "tapering," given it is right now the ONLY real Treasury buyer.  As for the "banking" sector, early earnings reports have been abysmal, as the tiny rate increase has hammered core operations.  The mortgage business has been decimated; and as I discussed last week, the Wall Street hiring atmosphere is being compared to the last hours of the Titanic.

Of course, thanks to the aforementioned FASB-sanctioned accounting gimmickry, both JP Morgan and Wells Fargo "beat expectations" this morning.  Except in JP Morgan's case, core operations actually posted a LOSS; while Wells Fargo's net interest margin plummeted.  In other words, both banks will need more FREE ZIRP and QE money than ever, as actual operations hemorrhaged cash.  Thus, do you now understand why yesterday afternoon – just after the 10-year yield rocketed above 2.7%, it was suddenly "rescued" by "blistering demand" at the 30-year T-Bond auction?  Or, for that matter, why in ultra-thin "pre-market" trading at 6:00 AM EST this morning, Treasury yields turned on a dime for no reason – suddenly turning big losses into big gains?  No, there was no "news" about the government shutdown/debt ceiling talks; or for that matter, ANYTHING.  Just a plain old Fed "turbo-QEing" to keep rates from rising…

Graph

As the morning progressed, NOTHING incrementally newsworthy emerged; that is, until 10:00 AM EST, when consumer confidence plunged to its lowest level of the past year; including an utterly shocking collapse in the all-important 12-month economic outlook…

Quote

"Tapering," anyone?  You know, the supposed reason PMs have been plunging all year?  Not if you listen to the just out comments from permanent FOMC voting member Jeremy Powell; or, for that matter, anyone with a brain

Quotes 2

Irrespective, by then, the day's main event had long passed.  Topping off a week of infamy in the CFTC-less PAPER markets, we experienced the second CME shutdown in the past month; in both cases, due to MASSIVE, MANIPULATIVE PM sell orders.  Setting up the landscape, let's go back to yesterday morning at EXACTLY 8:40 AM EST; when a GARGANTUAN "market sell" order of 600,000 ounces of gold – valued at $786 million – suddenly swamped the COMEX, just 20 minutes after it opened.  The day's budding gains were immediately erased, and five minutes later the KEY ROUND NUMBER of $1,300 was breached to the downside.  No news, no outside market movements, no NOTHING.  Simply the government attacking the PAPER price to affect sentiment; and if you don't think such "corruption" is possible, you'd have to be blind.  Market rigging has literally become a daily occurrence in recent years; such as today's allegations of massive, widespread currency manipulation.  I won't even comment on what they did at 3:00 PM EST, as I already did yesterday.

24hr Gold 10-10-13 1553

Fast forward to this morning, when again at EXACTLY 8:40 AM; again, with ZERO news other than the poor JPM and WFC earnings, and less progress in the government shutdown/debt ceiling talks than expected – a whopping TWO MILLION OUNCE "market sell" order hit the COMEX, valued at a ridiculous $2.6 BILLION.  The WATERFALL DECLINE charts below tell the story; as does the fact that for the second time in the past month, the CME actually shut down the PM pits for nearly a half-minute due to "lack of liquidity."  In other words – like yesterday, this MONSTROUS order was put in solely for the purpose of knocking the price down; with absolutely ZERO fear of the regulators.  Gee, I wonder who could possibly fund, and get away with, such acts…

24hr Gold Silver 10-10-13 846

I had originally planned a deeper discussion for this morning's article.  However, as noted earlier, the day's events rendered that impossible.  That said, quite a bit of important information was imparted on this morning of "PM infamy."  I won't hesitate to use another page on a topic near and dear to my heart; i.e., the supposed U.S. Treasury gold reserves of 8,133 tonnes; which, despite sounding like an imposing amount, would be worth just $330 billion if they even existed.

Putting this piddling amount into context, $330 billion could only fund government spending for a single month, or pay off a measly 1.9% of the national debt.  Actually, if you include "off balance sheet" debt, only 1.5% could be paid off; and if "unfunded liabilities" are counted as well, just 0.1%!  FYI, the fact this gold has likely been covertly leased, swapped, or sold is immaterial for purposes of this discussion; and if you don't believe me, just ask the Germans – who were told they have to wait SEVEN YEARS for the return of just 300 tonnes.

Anyhow, my point relates to an article published yesterday by Marketwatch reporter Brett Arends.  In it, he discusses his discourse with a U.S. Treasury spokesperson, after asking why it doesn't just sell its gold to help fund the deficit; or at the least, the bankruptcy costs of the White House gift shop.  And their answer…

Selling gold would undercut confidence in the U.S. both here and abroad, and be destabilizing to the world financial system.

-Resource Investor, October 10, 2013

So let me get this straight.  According to the Treasury itself, the value of its (supposed) gold is worth more than the nation's very credibility.  That is, it would rather default on its debt – as will occur next week without a "debt ceiling deal" – than sell a measly $330 billion worth of gold.  I mean, I thought gold was a "barbarous relic"; although you wouldn't know it from the actions of other Central banks, who have been net buyers for the past five years.

In my view, this incredible statement from the horse's mouth should scream LOUD and CLEAR what governments truly believe about gold; not to mention, why they fear its uncontrolled rise.  If a tiny stash is considered enough to "undercut confidence in the U.S. and destabilize the world financial system," just think of what the realization it no longer exists might catalyze.  Let alone, if gold surged against the U.S. dollar and other major fiat currencies; which, come to think of it, has been occurring for the past 13 years…

Currency Basket

Again, only you can determine if the information imparted on the Miles Franklin Blog rings true – not to mention, those of the world's other "good, smart people."  If you believe so, WHAT ON EARTH are you waiting for to prepare for what's coming?  Just as has occurred hundreds of times throughout history, the fraudulent fiat currencies will collapse spectacularly – leaving only REAL MONEY in their wake.Similar Posts:

What Does It Really Costs To Mine Gold: The Agnico-Eagle Second Quarter Edition

Posted: 11 Oct 2013 01:56 PM PDT

Company Overview

In this analysis we will calculate the true costs of production of Agnico-Eagle (AEM), a mid-tier producer with mines in Canada, Mexico, and Finland. Also, the company is led by Mr. Sean Boyd, one of my personal favorite CEO's in the mining industry.

Calculating the True Mining Cost of Gold - Our Methodology

In a previously mentioned article, we gave a thorough overview of the current way mining companies report their costs of production and why it is inaccurate and significantly underestimates total costs. Then we presented a more accurate methodology for investors to use to calculate the true costs of mining gold or silver. Please refer to that article for the details explaining this methodology, and I would encourage all precious metals investors to understand this concept.

Cost Per Gold-Equivalent Ounce - is the costs incurred for every payable gold-equivalent ounce. It is Revenues

Balmoral Increases Private Placement to $6.0 Million

Posted: 11 Oct 2013 12:01 PM PDT

Balmoral Resources Ltd. (TSX:BAR) (OTCQX:BALMF) (“Balmoral” or the “Company“) announced today that, due to significant demand, it has increased the size of its non-brokered private placement of flow-through common shares (“Flow-Through Shares”) and units (“Units”), initially announced on October 4, 2013 (see NR13-22), from $5.0 million in aggregate gross proceeds to $6.0 million in aggregate gross proceeds (the “Offering”). As previously indicated, the Offering is comprised of Units, at an issue price of $0.425 per Unit, and/or Flow-Through-Shares, at an issue price of $0.475 per Flow-Through Share. All other terms and conditions of the Offering remain the same.

The Offering is now fully allocated with gross proceeds of approximately $3.6 million to be raised from the placement of Flow-Through Shares and approximately $2.4 million to be raised through the placement of Units. Closing of the Offering is anticipated to occur on or about October 16, 2013.

The net proceeds raised from the Offering will be used by the Company for continued exploration of its Detour Gold Trend Project and other property assets located in the Province of Quebec, for general working capital and other corporate purposes.

The Offering will be completed in conjunction with the receipt of regulatory approvals, including the approval of the Toronto Stock Exchange (“TSX”).

This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein in the United States. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to the account or benefit of a U.S. person absent an exemption from the registration requirements of such Act.

About Balmoral Resources Ltd. - www.balmoralresources.com

Balmoral is a Vancouver-based precious metal exploration and development company focused on district scale gold opportunities in North America. With a philosophy of creating value through the drill bit and with a focus on proven productive precious metal belts, Balmoral is following an established formula with a goal of maximizing shareholder value through discovery.

On behalf of the board of directors of BALMORAL RESOURCES LTD.

Darin Wagner, President and CEO

Long Gold, Short Silver And Exponential Demand

Posted: 11 Oct 2013 12:00 PM PDT

Long Gold, Short Silver And Exponential Demand

The unintended consequence of allowing suppression in the name of industry or to protect fiat currencies has led to a world record surge in physical off-take demand. Each day more conspiracy theories are becoming conspiracy fact. From Enron to Madoff, the NSA to LIBOR, these scandals were “known” years before being acknowledged or embraced by [...]

The post Long Gold, Short Silver And Exponential Demand appeared first on Silver Doctors.

Can the gold market withstand a ‘bear-raid’ now?

Posted: 11 Oct 2013 11:57 AM PDT

The size of any new 'bear raid' will be far less effective than the one in April but the reaction of Asia, particularly China, will be quicker and larger, says Julian Phillips.

Gold Fixation

Posted: 11 Oct 2013 11:39 AM PDT

What is it about gold that makes people view it differently than any other asset class, creating an almost religious fixation* on the metal?  As long-term monetary insurance, you would think that it would be among the more boring items; sort like insurance annuities.  But that is not the case.

 

Gold is routinely propped up on a pedestal and obsessed upon in the world of money and finance.  In actuality, gold is a geological element that has been deemed by humans to be money or to closely track monetary value, with a track record measured in centuries.   Why, there it is on WebElements' element chart bracketed by things like Mercury, Cadmium and Copernicium, among other 'precious' metals.

elements

'There is no fever like gold fever' I suppose, and that is what gets many market players in trouble.  How can an asset of unquestionable value be trashed so routinely and with such ease when US and global policy makers are taking their inflationary operations to new heights, right out in the open?  Why, the US just nominated Bernanke clone Janet Yellen as the new Fed Chair.  Gold should skyrocket!

Well no, it shouldn't because it hasn't.  As a counter cyclical asset (counter to the economic recovery that policy makers are trying to engineer) its price continues to reside in the dumps as the average market participant still leans toward confidence in policy makers and a view that "the crisis" is over; meaning that the crash of 2008 was a 'one off' that was the result of some financial institutions that screwed the pooch and have been brought back in line.

Gold is simply a value marker and insurance against the possibility that the US crisis in 2008 and the European crisis in 2011 were emblematic of much deeper and ingrained problems that will bubble (no pun intended) up to the surface once again at a place and time yet to be determined.  Gold is insurance in support of the idea that new debt can leverage, but not fix, the economy.  That is gold's ultimate fixation.**

The bottom line is that gold should not get caught up in some kind of imagined war of good against evil.  That is because it is not an idol, it is a tool to be used by right-minded investors to protect themselves against certain financial risks while going about business in an increasingly complex and leveraged financial system.

If they have fixed*** the system, gold is done for now.  We'll keep watching gold's ratios to positively correlated markets for the big picture clues there.  If they have not fixed the system, people who calmly viewed gold as a value instrument rather than a speculation play in the casino, will be rewarded.

Meanwhile, I would advise tuning out the gold price micro managers, the gold bug cheering squads and the likes of the Vampire Squid itself, Goldman Sachs, with its 'bearish, no bullish, no bearish…' line.  It is all noise.

* Fixation, def. 1:  n., an obsessive interest in or feeling about someone or something;

** Fixation, def. 2: n., the action of making something firm or stable

*** Fix, def. v., mend; repair

Biiwii.comNotes From the Rabbit HoleTwitterFree eLetter

Silver and gold in a world where "we owe it to ourselves"

Posted: 11 Oct 2013 11:23 AM PDT

Perhaps the greatest indicator that the end is near for a fiat currency is the return of the clarion call: "We owe it to ourselves!" Such is the ultimate capitulation and politically unifying mantra. Once the debt ceiling is raised literally, figuratively once and for all, the great gates...

Kinross Gold to cut 300 jobs in Mauritania and Spain

Posted: 11 Oct 2013 11:18 AM PDT

The Canadian miner plans to cut 300 jobs at its mining operations in Mauritania and at a regional administrative office in Spain.

Gold could act as insurance against India's 22% external debt to GDP

Posted: 11 Oct 2013 10:55 AM PDT

India has large amount of gold which if the need arises will be used to repay external debts, said Mr.Raghuram Rajan, Governer, Reserve Bank of India while addressing the IMF meeting. According to latest data, the country's external debt to GDP is around 22%.

Gold sinks 1.8% in 2 minutes amid "hope" of U.S. debt deal

Posted: 11 Oct 2013 10:52 AM PDT

Wholesale and futures prices for gold dumped 1.8% inside two minutes Friday lunchtime in London, extending the week's losses to $50 per ounce at a three-month low of $1265.

Gold Price's "Default" Model Broken

Posted: 11 Oct 2013 10:18 AM PDT

Why? Because this is not the debt default gold prices were looking for...
 
NO DENYING it, writes Adrian Ash at BullionVault. The threat of US debt default has been a non-event for gold prices so far.
 
In fact, the mere hint of a short-term fix knocked gold prices below $1300 on Thursday, with a further plunge as the week ended.
 
For long-time investors, the irony looks so thick you could butter your toast with it.
 
The US Dollar is the world's most important currency. The United States is also the world's largest debtor. So-called gold "bugs" who began buying gold in the early 2000s thought they saw what was coming. Then from 2007, Washington only added to its historic debt pile, backing the nation's entire finance sector with yet more taxpayer promises.
 
The endgame looked clear. And here it is, with less than one week to go. We now have the very real risk of an outright default, a failure by the United States government to pay its debts or bills as they come due.
 
US Treasury bonds underpin the world's financial system, setting interest rates and acting as collateral for pretty much the entire planet. The panic about to take hold should mean silver and gold prices are soaring. Yet here we sit, back below $1300 and $22 per ounce.
"You would think," offers John Waggoner in USA Today, "that the threat of a government default would send gold soaring. In default, after all, those who normally buy government debt would flee, driving down the value of US currency on foreign markets. But gold is doing little to aid your portfolio."
The gold price just isn't working as it should, in short, as US default draws near. "Honestly, it doesn't make sense," adds Dan Denbow – a guy who understands gold more than most, as manager of the $1bn USAA Precious Metals fund (USAGX). "The current situation is a bit perplexing."
 
But step back for a second. The world doesn't fit your model. So the world must be wrong?
 
Back in 2009, "the recent [gold] price surge looks suspiciously like a bubble," wrote Nouriel Roubini. Because in the absence of severe inflation, or a catastrophic economic collapse, the NYU Stern School professor couldn't imagine gold prices rising. Yet they were. So gold must be wrong. Because of course, Roubini could only be right.
 
Now in late 2013, the opposite problem is confusing pundits and traders alike. Gold is falling when it "should" be soaring. Maybe gravity's failed, the earth is flat, or somebody's rigging the market?
 
But this US "default" isn't for real. It's a sham, a fraud and scamola. Political posturing is all that is happening, and the financial markets know it. America faces default on a technicality, not on a refusal by creditors to finance any more of its spending. Even if no deal is done by Oct. 17th, equity and bond investors know the US can borrow and spend all it wants at the moment. Only the arbitrary and very moveable debt ceiling is stopping it. And the US of course remains the world's biggest economy, and the source of its hottest must-have investments, regardless of value.
 
Take communications, for instance. The UK has Royal Mail, floated this week for the equivalent of $5.25 billion, and then jumped 38% on first trading today. The US in contrast has Twitter, priced at twice as much by its IPO. Never mind the business models (Royal Mail made $700m operating profit in full-year 2012. Twitter lost $68m in the first-half of 2013). One of these stocks is a sell. But the faller will most likely be different short term from long.
 
Meantime, there's little surprise that gold and silver aren't jumping. Because the US default isn't happening, whether it does next Thursday or not. And together with America's rediscovered bounce, the sense of crisis peaking in 2011 continues to ebb. The real panic, the financial "end times" which Tea Party Republicans are winking at, is still pending. It isn't here today. And when it does show up, precious metals – most especially gold – will offer a stand-out antidote. 
 
Physically rare and indestructible, gold is the very opposite of debt investments. Owning it puts you a million miles from being a creditor. If this US default were for real, gold would say so. For now, this is not the debt default gold owners were looking for.

Gold and Debt Ceiling - Here We Go Again

Posted: 11 Oct 2013 10:01 AM PDT

SunshineProfits

U.S. Government Debt Is THE Biggest Ponzi Scheme In History

Posted: 11 Oct 2013 10:00 AM PDT

U.S. Government Debt Is THE Biggest Ponzi Scheme In History

First, let me just say up front that anyone who is worried that the U.S. will default on its Treasury obligations because of this grand Vegas stage-show going in DC is a complete idiot.  To begin with, I fully expect Boehner to cave in and come to an agreement that at least temporarily lifts the [...]

The post U.S. Government Debt Is THE Biggest Ponzi Scheme In History appeared first on Silver Doctors.

Moscow exchange follows SGE in offering gold contracts

Posted: 11 Oct 2013 09:37 AM PDT

The Moscow Exchange has announced that it expects to introduce gold and silver trading this month, making the precious metals more accessible to smaller banks. Prices will be quoted in rubles per gram, minimum trades start at 10g of gold and 100g for silver.

U.S. Debt Limit To Be Raised For 18th Time In 20 Years – Gold Vulnerable Short Term But Real Record High Likely

Posted: 11 Oct 2013 09:25 AM PDT

Another increase in the debt ceiling will allow U.S. politicians to continue spending money like drunken sailors. The "guns and butter" fiscal policies since the end of the Gold  Standard in 1971 are set to continue until there is a crisis. The crisis will likely manifest when there are sharp falls in the value of the U.S. dollars, U.S. bonds, and a U.S. debt crisis.

Today's AM fix was USD 1,285.75, EUR 947.15 and GBP 804.30 per ounce.
Yesterday's AM fix was USD 1,298.00, EUR 959.56 and GBP 814.51 per ounce.

Gold fell $18.90 or 1.45% yesterday, closing at $1,287.40/oz. Silver slipped $0.26 or 1.19% closing at $21.59. Platinum rose $9.20 or 0.7% to $1,382.00/oz, while palladium climbed $6.50 or 0.9% to $707/oz.

Premiums in China and India remained robust overnight. Shanghai premiums are at $28 over spot and in Mumbai premiums jumped to $30 to $40 an ounce from last week’s $5 to $7 an ounce.

Bullion premiums in western markets remain flat. Gold bullion bars (1 oz) are trading at $1,335.25 or premiums between 3.75% and 4.5% and gold  bars (1 kilo) are trading at $42,602 or premiums between 3% and 3.5%.

Gold is headed for the second week of losses and is looking vulnerable to further weakness technically. Gold's close below $1,300/oz yesterday makes it vulnerable to a sell off to test the next level of support at $1,200/oz and the June 28th low of $1,180/oz.

A daily or weekly close below $1,180/oz would be bearish and could result in gold falling to test support at $1,000/oz which was previous resistance in 2009 (see chart below).

US Debt Limit (Black) Versus Gold (Gold) – Bloomberg

Gold analysts have turned the most bearish in a month on increased confidence that U.S. lawmakers will reach a deal to avoid default. Fifteen analysts surveyed by Bloomberg News expect prices to decline next week, eight are bullish and four neutral, the highest proportion of bears since September 13.

Analysts are citing an increased confidence that U.S. lawmakers will agree to a deal to avoid default coupled with a decrease in physical Asian demand. Although there is little evidence of any decrease in demand from Asia as seen in robust premiums and import figures.

Prices rose since the first partial U.S. government shutdown in 17 years began October 1st, as investors sought a haven. President Barack Obama has not accepted or rejected a House Republicans' plan to increase the debt limit and end the government shutdown as the two sides entered further talks.

A new and potentially large source of demand and gold buying may soon come from Russia. OAO Moscow Exchange, Russia's stock and currency exchange, will introduce trading of deliverable gold and silver bars as early as this month. It is part of plans to make precious metals more accessible to Russian investors and savers.

The exchange will quote gold and silver in Russian rubles per gram, with minimum trades starting at 10 grams of gold and 100 grams of silver, the bourse's Deputy Chief Executive Officer
Andrey Shemetov said in an e-mailed response to Bloomberg questions yesterday.
Most metals trading in the country takes place via the over-the-counter market, which is dominated by Russia's biggest banks, such as OAO Sberbank. The exchange is hoping to work with mid sized and smaller banks by reducing transaction costs.

The Moscow Exchange is following the Shanghai Gold Exchange in listing precious metals to augment over the counter, or OTC, trading and broaden the range of instruments available for hedging and liquidity purposes.

It's an "unusual move" for the stock and currency exchange to list physical metals, and has the "potential to affect the gold market as trading volume grows", Marcus Grubb, managing director of investment research at the World Gold Council, said in an e-mailed response to questions.

The exchange will quote prices and enable traders to settle contracts via delivery to and from unallocated metals accounts at its National Clearing Center. Banks can deposit or withdraw precious metals in the form of physical bullion bars, and delivery and collection will occur at a nominated Moscow vault, the bourse said. The contracts are also likely to appeal to brokers, producers, jewelers and private investors in the long run, it said.

The U.S. Debt Ceiling will be raised once again. It will be the 18th raise in the debt limit in 20 years. Raising the limit will happen, it is a question of when rather than if.

Date
Debt Ceiling (billions of dollars)
Change in Debt Ceiling (billions of dollars)

 

Source: United States Debt Ceiling – Wikipedia

Continuing imprudent and profligate fiscal and monetary policies in the U.S. are likely to lead to higher interest rates and have dire consequences for the U.S. economy and indeed the global economy.

Until, fiscal and monetary discipline and sanity returns to America and the world, gold and silver will continue to be bought by prudent individuals, companies, pension funds, family offices and central banks, in order to hedge the continuing debasement of paper currencies.

Another increase in the debt ceiling will allow U.S. politicians to continue spending money like drunken sailors. The "guns and butter" fiscal policies since the end of the Gold  Standard in 1971 are set to continue until there is a crisis. The crisis will likely manifest when there are sharp falls in the value of the U.S. dollars, U.S. bonds, and a U.S. debt crisis.

Unfortunately for U.S. citizens and people around the world, the huge opportunity costs of these profligate monetary policies and the ongoing spending spree is soon to be felt. Many would argue that it is already being felt as U.S. governments have continuously elected to spend more money on 'guns' and the massive military complex and less money on 'butter', the production of necessary goods.

In recent years, this was particularly the case during President Bush Junior's term and unfrotunately, President Obama, despite the Nobel Peace prize has continued the more gun than butter policies.

As an economy produces more 'guns' or military spending, it generally reduces its production of 'butter' or food and other necessary goods, and vice versa.  A nation has to choose between two options when spending its finite resources.

Nations that elect the military option tend to end up as empires. Military spending, currency debasement and imperial overstretch have been the undoing of many Empires including the Roman Empire and the British Empire.

A historical perspective is valuable in these 'interesting times'.

Today, without U.S. government spending and state aid, consumer activity would be greatly diminished and many corporations who suckle on the teat of government would simply go out of business – with attendant consequences on the jobs market.

A staggering proportion of American personal income now comes straight from government transfer payments – welfare, unemployment and other forms of benefit.

An even more staggering proportion of American banking and corporate income and profits comes from government stimulus, grants, state aid  and other forms of corporate welfare.

Every strata of U.S. society is saturated with debt and there is no signs of a reduction in debt levels or deleveraging of the economy. The appointment of Janet Yellen as Federal Reserve Chairwoman will lead to a continuation of ultra loose monetary policies and this will likely  exacerbate this trend and lead to more debt being piled on top of the already huge U.S. debt mountain.

At some stage the whole 'house of cards' will come tumbling down and result in a dollar crisis and an international monetary crisis.

The analysis of the debt ceiling crisis has been extremely superficial and very short term in nature. Very few analysts are pointing out the long term risks of a nation, still the world's leading economy, living beyond its means for an extended period of time.

The dangerous habit of politicians and governments continually 'kicking the can down the road' cannot go on indefinitely. Eventually, the ramifications of this profligacy will be clear to all.

Yet another increase in the debt ceiling and the increasingly parabolic nature of the rise in U.S. government debt will be very supportive of gold in the medium and long term.

It should lead to gold reaching our long term price target, held since 2003, of  a new real (inflation adjusted) high over $2,500/oz.
Gold in US Dollars 5 Years with Support and Resistance – (Bloomberg)

In these uncertain times, all owners of gold and those considering owning gold should acquaint themselves with the most appropriate storage options for their own particular circumstances.

GoldCore's ebook How To Store Gold Bullion – The Seven Key Must Haves is a must read in this regard Download here.

Gold Fixation

Posted: 11 Oct 2013 09:01 AM PDT

Biwii

Spoiler Alert! The Debt Ceiling Will Be Raised

Posted: 11 Oct 2013 09:00 AM PDT

Spoiler Alert! The Debt Ceiling Will Be Raised

Truth Never Told’s Chris Duane drops a spoiler alert on the ongoing debt ceiling/ US default drama: The debt ceiling will be raised, and the spending and printing will go on. 30 PPM ASAP Colloidal Silver Only Available From The Doc at SDBullion!

The post Spoiler Alert! The Debt Ceiling Will Be Raised appeared first on Silver Doctors.

Power Mad Obama Offers Two Choices: Unconditional Surrender Or Default

Posted: 11 Oct 2013 08:00 AM PDT

Power Mad Obama Offers Two Choices: Unconditional Surrender Or Default

Barack Obama is warning that if he does not get everything that he wants that he will force the U.S. government into a devastating debt default which will cripple the entire global economy.  In essence, Obama has become so power mad that he is actually willing to take the entire planet hostage in order to [...]

The post Power Mad Obama Offers Two Choices: Unconditional Surrender Or Default appeared first on Silver Doctors.

Gold vulnerable short term but real record high likely

Posted: 11 Oct 2013 07:49 AM PDT

Gold is headed for the second week of losses and is looking vulnerable to further weakness technically. Gold's close below $1,300/oz yesterday makes it vulnerable to a sell off to test the next level of support at $1,200/oz and the June 28th low of $1,180/oz.

U.S. Debt Limit To Be Raised For 18th Time In 20 Years - Gold Vulnerable Short Term But Real Record

Posted: 11 Oct 2013 07:01 AM PDT

gold.ie

Created Currencies… are NOT GOLD! (Financial Prepping 101)

Posted: 11 Oct 2013 07:00 AM PDT

Created Currencies… are NOT GOLD! (Financial Prepping 101)

Paper currencies seem normal. They seem natural. We are told they are necessary. Paper currencies with no intrinsic value are used everywhere – we pretend they are valuable. If we don't look closely, or remember the world of 60 years ago, they seem like a good idea. Monopoly money. Euros. Dollars. What is the essential [...]

The post Created Currencies… are NOT GOLD! (Financial Prepping 101) appeared first on Silver Doctors.

10 oz Sunshine Mint Bars As Low As 0.69/oz Over Spot!

Posted: 11 Oct 2013 06:51 AM PDT

The Worst since Lehman

Posted: 11 Oct 2013 06:30 AM PDT

In the words of the great Kelly Bundy of Married with Children, "the mind wobbles."  NEVER has America been so dysfunctional, and NEVER has the entire world been so hopelessly tethered to futility.  Historically, "empires" have decayed when populations grow "fat and lazy."  Today, however, the ENTIRE WORLD is doing so – care of the dollar-anchored fiat currency system that is so comprehensively destroying it.

On the surface, the lethal combination of MONEY PRINTING, MARKET MANIPULATION, and PROPAGANDA has so badly distorted perception, the average person has either "shut themself off" or morphed into a blithering fool.  Speaking to my parents is no different; as call it age if you like, but they have not the slightest interest in current events – or frankly, knowledge of them.  The debt ceiling?  Government shutdown?  Syria?  Obamacare?  Not a clue, although they'll happily say Obamacare is a "good idea" because everyone should have health insurance.

Yes, everyone should have whatever they want.  However, should doesn't pay the bills; and in a helplessly BANKRUPT nation – not to mention, world – the absolute WORST idea imaginable is putting the government in charge of the gargantuan, complex healthcare industry.  Despite pathetic pro-Obamacare rhetoric, even the Congressional Budget Office estimates it will directly cost a quarter trillion annually to administer.  Of course, the CBO has woefully underestimated every cost it has ever forecast; and that doesn't even include the indirect ramifications of this lunacy.  Conversely, to the average person, it matters not.  To them, Obamacare is just one of dozens of wild goose chases attempted by our nation's "leaders" each day; few – if any – of which draw even a modicum of personal interest.  Higher taxes?  No problem.  Fewer doctors?  No problem.  Soaring insurance premiums?  No problem.  So as long as no money down iPhones are available for non-stop texting, reality television dominates the airwaves, and all-you-can-eat buffets remains cheap, "all's well."

Today, as Jack Lew whines to Congress about the dire ramifications of a debt ceiling breach, the Dow is up 200 points on hopes of a deal to again "delay" the debt ceiling – this time, by a whopping six weeks.  In other words, yet another "license to print"; and in the eyes of the ENTIRE WORLD, another complete abdication of fiscal responsibility.  Even though absolutely NOTHING has been formally discussed, we are told the "market" is excited about the prospect of America reducing its credibility further, by "kicking the can" another six weeks.

Such a deal wouldn't bring furloughed workers back, improve the nation's financial situation, or bring any reduce financial obligations; and with interest rates again on the rise, the overall economy will be injured further.  However, we're told the "free market" is juiced about a proposal to delay the debt ceiling breach six weeks; just as we're told that this is somehow bad for gold – in the EXACT same manner as on 92 of the past 103 trading days at the PAPER markets' open.  Heck, aside from the daily visit from the 2:15 AM naked shorting algorithm – and the current, relentless silver "line in the sand" at $22/oz. – we were treated to a $16/oz. WATERFALL DECLINE at 8:30 AM; get this, just after it was reported that jobless claims spiked from 308,000 last week to 374,000 this week.  Whether this bastardized data was "glitched" by the ongoing California and Nevada computer system upgrades is immaterial; as in the big picture, what sentient being would believe gold would go "no bid" upon the release of such data?  As I write, the "battles" for $1,300/oz. and $22/oz. are raging; as TPTB desperately attempt to stave off the inevitable STAMPEDE from fraudulent fiat to real physical money…

24hr Gold Silver 10-10-2013 959 951

And by the way, aside from being WELL BELOW the all-in cost of production of EVERY MINING COMPANY ON EARTH, the VERY KEY ROUND NUMBER of $1,300/oz. is proving to be quite the technical support level; or alternatively put, a "REALITY line in the sand."  Since June's "taper smash," gold has recovered from all six Cartel attempts to push it below $1,300; and with essentially ALL fundamental factors favoring higher prices, each day that passes above $1,300 will only strengthen this "floor" further…

$GOLD 10-9-13

Meanwhile, the list of economy bearish – and PM bullish – events continues to multiply, worldwide.  Today, we learned that back to school PC sales have fallen to their lowest level since 2008; following last week's realization that U.S. "economic confidence" plunged at its "fastest pace since Lehman."  Sometimes, such headlines suggest "financial karma" is guiding my writings; as I have been pondering a piece titled "The Worst since Lehman" for quite some time.  And thus, today's article; as you can imagine, comparing today's economic circumstances to those of the world's worst economic calamity since the depression.

Let's just start with monetary policy; which presumably, would become at least slightly more hawkish if indeed the economy were "recovering."  Yesterday's FOMC Minutes publication, which I wrote of yesterday afternoon, only validates the Fed is utterly "boxed in"; and despite typical MSM misdirection, there is not a CHANCE that the "ultimate dove," Janet Yellen, would even dream of commencing her Chairmanship by turning tail on a career-long obsession with money printing.  As for the rest of the world, the printing presses are running full out.  The Bank of Japan last week re-affirmed its commitment to double the Yen money supply in just two years, while the ECB stated it would use "all available tools" to prevent rates from rising.  And today, the Bank of England statement read no differently than in 2009…

The Bank of England offered no surprises, leaving the size of its bond-buying program unchanged and keeping its key lending rate at a record low of 0.5%, where it has stood since March 2009.  The central bank’s Monetary Policy Committee left its asset purchases, the centerpiece of its quantitative-easing strategy, at 375 billion pounds ($598 billion). The central bank has said it aims to keep rates low at least until the U.K. unemployment rate drops below 7%, which it doesn’t expect will happen until 2016.

-Market Watch, October 10, 2013

Regarding the housing market, for all the HYPE about "recovery," the Case-Shiller index remains 25% below its "pre-Lehman" highs; with millions of U.S. homeowners having suffered the detrimental effects of having their mortgages pushed underwater.  The only factors that have pushed it higher have been Fed MONEY PRINTING and Wall Street VULTURE INVESTMENTS; and now that interest rates have barely ticked higher (from RECORD LOW levels), the housing market is again rolling over.  And by the way, most of Europe's housing markets are below the 2009 lows.

Economically, the fraudulent, politically influenced "unemployment rate" reported by the BLS may have ticked lower, but the Labor Participation Rate – i.e., a much broader, more reliable measure of labor market health – has fallen to a 35-year low, nearly three percentage points below the pre-Lehman level.  As for the rest of the REAL economy, data point after data point says the same thing; i.e., 'the worst since 2009.'  And not arbitrary "diffusion indices" like the highly volatile, statistically insignificant "PMI" reports; but REAL data like durable goods orders, retail sales expectations, economic confidence, and service employment.

As for the global financial system, it's magnitudes worse than 2009.  With RECORD unemployment in Europe, multi-decade high REAL unemployment in the U.S. and stagnant economic growth the world round, it is difficult to make the case that ANYWHERE is better off than in 2009; other than in government-supported stock and bond markets, of course.  Currencies the world round have been collapsing; bankruptcies surging; and, of course, debt is off the charts (although in the chart below, it appears to have "leveled off" due to the "extraordinary measures" delaying the realization of $300 billion until the debt ceiling is raised)…

Federal Debt Total Public Debt