Thursday, October 17, 2013

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Double-up for Brigus gold reserves at Black Fox?

Posted: 17 Oct 2013 05:48 PM PDT

Brigus drills deep at Black Fox hitting a broad, high grade gold intercept with wider implications for reserve growth.

Gold unlikely to bounce back for some time - Kendall

Posted: 17 Oct 2013 04:40 PM PDT

This to us is a bear market, says Credit Suisse's Tom Kendall of the gold market, but there still seems to be a surprising number of participants who refuse to accept that.

Best forecasters see gold reaching a four-year low

Posted: 17 Oct 2013 04:32 PM PDT

The metal will decline to an average of $1,175/oz in the third quarter next year, say the 10 most accurate precious metals analysts tracked by Bloomberg over the past 2 years.

The era of inexperienced managers is over - Lepouttre

Posted: 17 Oct 2013 03:25 PM PDT

Thibaut Lepouttre, editor of Belgium-based Caesars Report, explains how he goes about finding junior miners that can deliver the goods in this interview with The Gold Report.

Russia's first gold ETF lists on Moscow bourse

Posted: 17 Oct 2013 03:19 PM PDT

The FinEx Physically Held Gold ETF fund, Russia's first gold-backed ETF, is seen transforming Moscow into an international financial centre.

[KR511] Keiser Report: Walmart & Wall Street’s Sugar Daddy

Posted: 17 Oct 2013 12:25 PM PDT

We discuss the EBT ‘free lunch’ card chaos at Walmart when an ‘unlimited’ benefits glitch causes card holders to pile shopping carts high with ‘free’ goods, while on Wall-Street, the ‘free lunch’ card of Quantitative Easing has caused a similar misallocation of capital into property and toxic debt instruments. Finally, they discuss the world about to shut off America’s ‘free lunch’ card, otherwise known as the Exorbitant Privilege’ of having the world’s reserve currency. In the second half, Max interviews Alasdair Macleod of GoldMoney.com about the $640 million sell order of gold. They also discuss Alasdair’s new theory on money supply (FMQ) and his differences with Professor Fekete, a recent guest on the Keiser Report, regarding whether or not there is deflation.

Relative ETF Demand: Bullish Or Bearish?

Posted: 17 Oct 2013 12:02 PM PDT

Debt Ceiling And The Dollar

Early in Thursday's session, one of the primary drivers in the global equity markets came from the currency pits. The U.S. Dollar Index (UUP) was having a rough time after politicians kicked the can down the road again relative to addressing U.S. debt. From CNBC/Yahoo:

U.S. politicians may have side-stepped a debt default at the 11th eleventh hour on Wednesday, but currency analysts have told CNBC that the dollar's status as a reserve currency will suffer long-term damage from the impasse. "I think it's part of the demise of the dollar as an international reserve currency," Chris Watling, CEO of Longview Economics, said of the U.S. government's political impasse. Alasdair MacLeod, head of research at GoldMoney Foundation, agreed saying the dollar's credibility has taken a "very, very bad hit".

Capital Flows And The Dollar

Investors of all sizes, from hedge funds to the local

Gold stronger as it attacks overhead resistance

Posted: 17 Oct 2013 11:45 AM PDT

Julian Phillips believes the gold price should be stronger the rest of the week after the US debt ceiling crisis was dealt with.

Ted Butler: JP Morgan’s Perfect Silver Manipulation Cannot Last Forever

Posted: 17 Oct 2013 11:36 AM PDT

Silver manipulation – a lot has been written about the subject, not many have grasped how it works exactly. The age of algorhythm trading (best known as High Frequency Trading, or HFT) allows for manipulative tricks to be rolled out in a very clever way. The “intuitive” way to manipulate the price of a commodity to the downside is to go short when prices are rising. Not so with JP Morgan. It is no coincidence that their manipulation strategy is so clever that most do not understand the mechanics; it is a perfect manipulation.

This article brings clarity in the precise mechanics of JP Morgan’s silver price manipulation. It goes to the heart of the manipulative tricks. The author is obviously Ted Butler, with four decades of experience in the precious metals markets, specialized in the paper (futures) market. The mechanics described in this article have rarely before been explained. It makes it a must read for precious metals enthusiasts, but also for professional and individual investors because the ongoing manipulation must come to an end resulting in much higher prices.

I think the most important comparison of the London Whale case to the COMEX silver manipulation is in the differences. In basic terms, JPM's London Whale manipulation was a simple price rig in extremely complex securities. In silver, JPMorgan's price rig is complex in a simple commodity. Let me try to explain.

The London Whale manipulation was simple in that it followed the rigid blueprint of every previous manipulation, including the Hunt Brothers silver manipulation and the Sumitomo copper case, in that positions were added continuously which moved the price to the manipulators' advantage. Then, because the resultant prices became so out of line with what normal supply and demand forces would dictate, the whole thing collapsed leaving the manipulators with great losses and exposing the manipulative attempt.

In COMEX silver, JPMorgan has behaved differently. Instead of selling short silver at declining prices, as it did in the London Whale case, JPMorgan has only sold short additional quantities of silver on increasing prices. After these additional short sales have satiated all new buying interest, JPMorgan then causes prices to decline (through the manipulative device of HFT) and buys back its short sales at lower prices and great profit.

While the key to the silver manipulation is JPMorgan's dominant market share or market corner on the short side (same as in the London Whale case), there have been some important outside factors that have contributed to the silver price-rigging. The most important have been in the modern mechanics of trading, from HFT to the presence of technical traders and funds which mechanically and consistently buy and sell on price signals; buying as prices move higher and selling and selling short as prices decline. These technical funds are the enablers which allow JPMorgan to sell high and buy low in silver. These technical funds and traders are important contributors to the perfect market manipulation.

I realize that every time the price of silver and gold get smashed down, the intuitive reaction is that JPMorgan or other commercial traders are bombing the market lower by selling thousands of contracts. But that's only partially true. Yes, JPMorgan rigs the price lower on those big down days, but not by selling enormous quantities of COMEX silver contracts short. JPM does get the price snowball rolling down the hill by selling a small quantity of contracts short at critical times and prices with the intent of inducing the technical funds to sell much larger quantities of contracts short (which JPM and other commercials then buy).

This is an important feature of the perfect market manipulation in silver and the reason it has lasted so long; JPMorgan can always proclaim it was a net buyer of silver (and gold) on the big down days as is consistently proven in COT reports. By itself, it is a significant defense against allegations that JPMorgan is manipulating the price of silver, as how the heck can you be accused of manipulation if you buy on big down days? More than any other factor, this has been the prime impediment to ending the silver manipulation. But it doesn't tell the whole story.

JPMorgan's real crime resides in its ability to sell unlimited quantities of COMEX silver contracts short on the way up in price to the point of creating unprecedented levels of market share and concentration. In December 2009, JPMorgan held more than 40% of the entire short side of COMEX silver and close to that market share on other occasions. To my knowledge, there has never been a greater market share or corner in any major market in history. These unlimited short sales by JPM inevitably satisfy technical buying interest and then that technical buying turns to selling at some point, with JPMorgan then working to induce the tech funds into selling. The buying back by JPMorgan is the illegal ringing of the cash register and closing out of the manipulative silver short positions sold at higher prices.

What I've described today and for many years appears to be the perfect market crime that could last forever – except it can't. How can I be so sure? Well, for one thing, this London Whale case itself. While JPMorgan's army of lawyers hammered at the exact wording of the agreement so as to limit additional civil lawsuits, the point is clear – JPMorgan was guilty of manipulating the securities in an important credit market. After the electricity manipulation case by the Federal Energy Regulatory Commission earlier this year, it can now be said without question that JPMorgan is a serial market manipulator. And the manipulations have the same common denominator – an excessive and dominant market share enhanced by dirty trading tricks.

But the most important assurance for the coming end to the COMEX silver manipulation is what the artificially depressed price of silver has done to real supply and demand. The Commission's order in the London Whale case (above) placed great importance on the impact of price manipulation on legitimate forces of supply and demand. Silver is now ground zero for what can happen if prices are manipulated, now that the COMEX rigging has forced the price below the cost of production for many silver miners. In time, silver prices must rise above the cost of production. But it may not take a long time, given the current circumstances for JPMorgan.

For years, I have distilled the issue down to this – whether JPMorgan adds new short contracts on the next silver price rally as the bank has done on every silver rally for the past five and a half years. More than ever I believe this to be the critical element now. Simply put – if JPMorgan doesn't add new short positions in silver, the manipulation is over. Someday, JPMorgan won't add to silver short positions and there are indications that day may be at hand. Yes, I know the CFTC has weaseled out on their silver investigation by not charging JPMorgan, but I am still convinced that was due to concern of the legal liability that would accrue to JPM and the financial system.

This is an excerpt from Ted Butler’s premium service. Readers are highly recommended to subscribe to the service on www.butlerresearch.com as it contains the highest quality of gold and silver market analysis. Ted Butler is specialized in precious metals markets analysis for 4 decades.

Rickards: Fed Responsible for Dollar Collapse, We Are Our Own Worst Enemy!

Posted: 17 Oct 2013 11:30 AM PDT

Rickards: Fed Responsible for Dollar Collapse, We Are Our Own Worst Enemy!

Currency Wars author Jim Rickards’ tweet Monday evening nails it regarding the coming collapse of the dollar. Don’t blame China, Russia, or gold when the dollar collapses. 2013 Gold Buffalo As Low As $51.99 Over Spot at SDBullion!   Original source

The post Rickards: Fed Responsible for Dollar Collapse, We Are Our Own Worst Enemy! appeared first on Silver Doctors.

The Scariest Thing I've Ever Read About A Bank

Posted: 17 Oct 2013 11:21 AM PDT

For a long time, I've been an advocate of Austrian economics. I've been anti-QE and in favor of trying to re-establish some type of control over the currency, instead of simply printing more and more of it, and assuming nothing would go wrong.

The truth is, the global economy is still in shambles. The U.S. is needing to raise its debt ceiling again and again, Europe is a mess with unemployment and taxes through the roof, and gold (GLD) - although momentarily pulling back - is up exponentially over the last 10 years.

This morning, I read what may be the most disturbing news I've read about banks in my life. Voice of Russia reported that Chase Bank (JPM) is limiting all cash withdraws:

Chase Bank has moved to limit cash withdrawals while banning business customers from sending international wire transfers causing speculation that the bank is preparing for

Junior miners that can deliver the goods

Posted: 17 Oct 2013 11:18 AM PDT

In this interview, Thibaut Lepouttre reveals the results of his search over five continents to find those juniors in gold, iron ore and tungsten that offer superior value.

US Gold coin sales surge in Oct on lower prices

Posted: 17 Oct 2013 11:14 AM PDT

The US Mint has also reported higher-than-usual American Eagle silver coin sales of 750,000 ounces on Tuesday, bringing the October till date production to 1.6 mn ounces, on track to surpass sales of 3 mn ounces in September.

Penultimate Deal with the Devil

Posted: 17 Oct 2013 11:00 AM PDT

As I expected – nay, knew – a "deal" was cobbled together to avoid a technical default on the U.S. national debt.  Not to mention, avoiding the termination of food stamps, social security, Medicaid, and the myriad entitlements utilized by more than half the citizens of our "dependency nation."

Actually, I was proven correct on all fronts; as weeks back, when this "crisis" commenced, I said there was NOT A CHANCE the government would be shut down – or the debt ceiling stifled.  Regarding the latter, it decidedly wasn't; and as for the former, in hindsight it wasn't shut at all – aside from a handful of national parks and monuments, to make some sort of demented point.  Roughly 85% of all government jobs were unscathed by the "shut down" – considered essential to "national security."  Half of the rest were arbitrarily "recalled" by the Pentagon after but a few days – again, under the guise of "national security"; and now, we learn, last night's deal generates back pay for every furloughed government worker.  In other words, 400,000 workers simply received a taxpayer-funded two week vacation!  

In the end, as I have predicted for weeks, the Republican gambit to defund Obamacare was a miserable failure; not just procedurally, but in terms of the credibility hit this already dying party took.  Mind you, I am neither Democrat nor Republican – but instead, an "equal party hater."  However, I call a spade a spade; and when it comes to politics, the Karl Rove theory of relentlessly attacking one's opponents with propaganda – and in many cases, lies – have worn out its use, and then some.

As I have stated countless times, the Republicans are the "party of the rich"; and since "99%" of the public is – at best - lower middle class, the GOP's days of power are OVER.  In fact, I wrote earlier this year of my belief that eventually, all American politicians will embrace populist "liberal" platforms – like increased entitlements – in order to be elected; to the point that a one-party fascist government will emerge.  Sorry Boehner, Obamacare is here to stay – as your beloved House of Representatives approved it in 2009 (by a measly five votes); whilst a Republican-controlled Supreme Court declared it constitutional in 2011, in perhaps the worst high court decision in American history.

As for last night's eleventh hour deal, it takes U.S. credibility to an ALL-TIME LOW; quite apropos, as not only is Congress' approval rating also at an all-time low, of just 10%, but only 13% of Americans believe the nation is headed in the right direction.  Following last night's "penultimate deal with the devil" – more on that in a minute – Chinese rating agency Dagong downgraded America from A to A-; while even Jamie Dimon – yes, the CEO OF JP MORGAN – admitted America's debt problem is "virtually assured" to destroy it!

Back in February, when the "No Budget, No Pay Act" enabled the then $16.394 trillion "debt ceiling" to be exceeded – with no restrictions – until the arbitrary date of May 18th, I deemed it the most "juvenile" decision in Congressional history.  After all, the 2011 debt ceiling crisis – yielding the stripping of America's triple-A credit rating, among other things – had not resolved the nation's problems in the slightest.  With $2.2 trillion of debt since added, the "Budget Control Act" sequestration cuts of $150 billion were essentially cut in half by the New Year's Eve "fiscal cliff deal"; and after that, by significantly more when the government arbitrarily decided that air traffic control and other "essential" activities could not be subject to the sequester.  Said "debt ceiling delay" simply kicked the can further into 2013; i.e., an insult to the world's intelligence, that was compounded further when the government spent May through October utilizing "extraordinary measures" to steal from Peter to pay Paul – and thus, hide further increases in debt that will be realized the second the debt ceiling is raised, perhaps by more than $300 billion.  Since May 19th, the U.S. national debt has been "frozen" at $16.699 trillion; but rest assured, the REAL number, as we speak, is well over $17 trillion.  And don't forget the $5 trillion of "off balance sheet" Fannie Mae and Freddie Mac debt and $200 trillion of "unfunded liabilities"; although for the time being, the MSM certainly will.

Amazingly, with the spotlight of the WORLD on America's hideous political and financial situation; not to mention, a plunging economy, as depicted by horrific earnings from IBM, a morbid holiday outlook from eBay, surging jobless claims, and the lowest Consumer Confidence and mortgage application readings in two years – prompting the Fed's TOP HAWK, Richard Fisher, to state this morning that tapering is out of the question; Congress comes up with a "deal" in which few actual details were given.  Talk about juvenile; and for that matter, insane!

If I see one more headline that the debt ceiling was "lifted" or "raised" until February 7th, I'm going to puke!  What does that mean; i.e., WHAT IS THE NEW DEBT CEILING?  To wit, I have also read the new deal does not repeal the extraordinary measures provision enabling the Treasury to use accounting tricks to avoid default.  So, does that mean the debt ceiling has not in fact been "raised"; and thus, is simply being "delayed" again?  Moreover, if Jack Lew claimed that today the Treasury has exhausted its last possible extraordinary measure, than what could possibly enable this process to continue?  And if he is in fact correct; then pray tell, WHAT IS THE NEW DEBT CEILING?  I mean, is there some kind of gag order on Congress and the MSM on that topic; sort of like not calling the Egyptian coup a coup?

Worse yet, this "penultimate deal with the devil" only funds the government through January 15th, and "extends" – or "raises", "lifts," or whatever vague term you choose – the "debt ceiling" until just February 7th, with a "budget conference" requiring a "long-term spending plan" (i.e., a budget) by December 13th.  And oh yeah, a number of previously "mum" taxes – like those on medical devices and reinsurance – will be quietly implemented to further burden American taxpayers.

So let's get this straight.  The Dow surged 500 points in the past week on "exuberance" about a can-kicking deal that basically pushed this same issue just two months into the future; with a "drop-dead" deadline right after the holidays, just after the annual, month-long Congressional holiday recess.  In December 2011, the budget "Super Committee" failed to produce a single penny of spending cuts – prompting passing of the "kick the can" Budget Control Act (talk about oxymorons!).  But now, two years and nearly $3 trillion of debt later – with the GLOBAL economy in a vastly worse position – we're to believe Congress will create its first budget in five years!  And not just a budget, but one that vastly cuts spending when more than half of all Americans are on entitlements, with the Labor Participation rate at a 35-year low.  If they don't – and most likely, they won't; the government will again be shut down on January 15th – with the same three week separation ahead of the new debt ceiling "drop dead" date of February 7th.

To say this "penultimate deal with the devil" is an embarrassment to America – and an affront to the world – is an understatement.  However, if you think this is bad, just wait until the "ultimate" deal is cut in mid- to late January.  At that point, I predict, any remaining shard of American credibility will be permanently lost.  A world that is already openly revolting against American imperialism will no longer stand idly when Congress – and the Fed – give the "all speed ahead" signal regarding their intention to PRINT and SPEND ad infinitum.  Last year, I warned of the coming "debt ceiling to infinity"; and if ever it were to come to pass, this January is the time – as the government will literally have NO MORE "stalling tactics" at its disposal.

This morning, Fed "uber-hawk" Richard Fisher claimed the FOMC's hope to implement QE tapering was "swamped" by the impact of the government budget crisis; and paralleling those sentiments, Fed, PPT, and Cartel efforts to control markets with MONEY PRINTING, MARKET MANIPULATION, and PROPAGANDA will in time be "swamped" as well.  In the case of Precious Metals, their fraudulent scheme will be undone by the inexorable PHYSICAL demand the Chinese and other wealthy nations will only accelerate, particularly given how ridiculously underpriced the Cartel has made PAPER prices.

As for today's "markets," the Dow Jones Propaganda Average opened at the PPT's "ultimate limit down" of EXACTLY minus 1.0%; but as I write at 11:25 AM EST, has cut its losses in half – naturally.  Treasury bonds are again surging, as no doubt the Fed's "turboQE" operations are on full tilt – likely, at much higher levels than the published $85 billion per month; but dang it, the dollar index is plunging – down a full percent, to 79.6.  Given how horrific European and Japanese fundamentals are, the fact the dollar index has fallen this far should SCREAM how numbered its days are as the world's "reserve currency."  And when it goes, TRUST ME it will not be the Euro or Yen that takes its place.

Instead, it will be whatever new currency – presumably, some combination of the Yuan and Ruble – is backed by the most gold.  This is how things have worked throughout history; and why ANYONE would believe the current situation is any different – in a world where ALL currencies are fiat-based nightmares experiencing spiraling debt burdens – is beyond me.  This morning, TPTB are using every suppressive algorithm in their PAPER toolbox – including countless Cartel Herald caps – to prevent their six-week old "lines in the sand" at $1,320/oz. and $22/oz., respectively, from being taken out.  But have no fear, they eventually will; as will the all-time highs of $1,920/oz. and $50/oz. in dollars – not to mention, the all-time highs in ALL world currencies.

24hr Gold Silver 10-17-13

Time is running out, as the "ultimate deal with the devil" is coming by late January.  This is perhaps the most inexpensive – and available – Precious Metals will be to Westerners EVER; although unfortunately, the same can't currently be said for Easterners.  The next crisis will likely be "the Big One"; and thus, if you don't PROTECT yourself now, you may NEVER get another chance.

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QUEST UPDATE

Posted: 17 Oct 2013 11:00 AM PDT

Still hanging in. Closed another trade in the Quest portfolio this afternoon. Current total stands at $3055. Up 1000% over the last two months. 

If by some miracle gold is forming an intermediate bottom here it will get a lot easier to keep the quest portfolio in the green and making money. If gold hasn't made an intermediate bottom then it's still going to be very tough to keep our streak alive and the odds will be good that the quest is going to miss a trade soon and quickly go back to $0.

Gold Resurrection from Financial Disaster

Posted: 17 Oct 2013 10:55 AM PDT

Take a whirlwind tour with graphics and photos. Absorb the images. They are profound, broad, and ugly. The central bank concept is the Matrix in embodiment, but the Eastern nations led by BRICS and G-20 have a key to unlock the USDollar prison. A quick look at the Australian banking system reveals four global banks who own outsized portions, their reach extending to the largest gold producer in Oz as well. Incest is best. The fast decline in Money Velocity is the most convincing proof of the failure of monetary policy. It does not provide stimulus, but rather capital destruction. The foreign dumping of USTreasury Bonds actually accelerated this past summer, amidst the Taper Talk trial balloon offered by the hapless desperate Bernanke Fed. His legacy will be one of disproving his own PhD Thesis, since liquidity in torrents does not repair insolvency, and no traction comes to soaked ground. A grand game of shuffling gold bars has begun, actually accelerated in a final phase. The big bullion banks wish to obscure that they are almost bone dry of gold in inventory. The COMEX will shut down from no gold, rather than criminal prosecution in a land where crime rules and treason is the syndicate bylaw. China has imported two thirds of GLD inventory in the first seven months of this year. They use the Hong Kong route. In fact, the emerging giant is on course to import over 1000 tons in 2013, compared to 2750 tons in global annual mine output. China & India are taking the majority of gold and silver straight from output. The climax event will be the return of the Gold Trade Standard, discarding the USTreasury Bonds, converting them to Gold bullion. The early adopters and those who follow the viable solution will be the winners. Those who cling to their USTBonds and their other paper securities in indentured servitude will be the losers.

 

CENTRAL BANKS AS MATRIX

No Plan B is on the table. The central bank is stuck in a destructive cycle with no viable workable exit strategy. They operate with no perceived risk reward, only desperation to delay the certain collapse, proved by the wrong-footed Taper Talk. They must continue the Zero Interest Rate Policy (ZIRP) forever and the Quantitative Easing (QE) to infinity. They preside over failure with a franchise model that causes great capital destruction in the climax phase. The current grand monetary experiment is untested, and is proving to be a glaring disaster. They have sold a moral hazard to the entire world like a passed goblet of hemlock. Rather than stimulus, the monetary policy produces killed and retired capital. The Keynesian path has led to the monetary corner, a wrecking zone from bad policy. They preside over collapse while sitting in their own thrones within the matrix.

 

A counter-culture comparison is due. The USFed and the Wall Street bankers have created an environment of alternative universe. The financial markets are rigged. The USDollar currency and USTBond are propped. The politicians are syndicate puppets, include the leader of the land straight out the Manchurian Candidate theme. The debts are covered by hyper monetary inflation. The USEconomy is stuck in quicksand, as it deteriorates, while the blaring music sings about recovery. The Fascist United States is the embodiment of the MATRIX, the multi-sequel hit movie series from the 1990s. Notice the similarity between the cold controlling deceptive alternative world Matrix architect and USFed Chairman Bernanke. The contrast is scary. No offense to Helmut Bakaitis, the Austrian actor and director who played the architect who fought the rogue Oracle and Neo and Morpheus and Keymaker. They symbolize the Gold community working toward freedom from the Matrix itself, doing battle against a corrupt controlled fiat currency Matrix centered upon the USDollar, defended by the USTBond software, preying upon the sleepy captive population. The rogue programs loose within the Matrix are from the giant workaround subroutine being fashioned by the East, the Dollar alternative for trade and thus bank reserves. The gold trade settlement will be the New Gold Trade Standard which renders the Matrix with obsolete software. It opens the door to freedom from the Matrix.

   

AUSTRALIAN BANK INCEST

Big international banks own both the Australian big banks and the biggest Australian mining firms. They are in control for the financial adjustments and reset. The story is typical of the Western financial super-structures. In the West, Barclays is the banker’s bank that owns a significant portion of almost every important large Western bank. The integrated ownership of these banks reveals a vast incestuous network. The banking system in Australia is controlled by HSBC, JPMorgan, NAB, and Citigroup. The tree below displays the ownership of the largest banks in Australia. In parallel, Americans, British, and Europeans have no idea that Barclays owns a piece of almost every large Western bank. The same shareholder examination for National Australia Bank, JPMorgan, and Citicorp found that the these four companies not only control a vast array of mining and industrial companies, but also pull the strings as banks under a different name. Furthermore, the four financial firms which own Australia’s banks also have substantial holdings in Newcreat Mining Ltd, the largest gold producing company.

MONEY VELOCITY FAILURE

Money velocity remains crippling low, at historic lows. The amplified monetary expansion has aided banks and redeemed bonds, but with no tangible benefit to the useconomy. Many are the channels for money flow, but most are blocked. As capital is killed or retired from the USFed monetary policy, the money velocity declines. It is proof of capital destruction in its wake. The Money Velocity is at historic lows, a point of extreme embarrassment to USFed Chairman Bernanke, who is on the way out with failure on his resume. Worse, the outcome of four years with extraordinary money growth has been a crippled USEconomy. Next on the global stage will be the USFed serving as the processing plant for the USTBonds returned to sender from a vast stream of foreign entities. The money flow has numerous textbook channels, of which at least five are important channels. They are 1) redeemed toxic bonds without price inflation effect, 2) business capital expansion for a massive typical effect which is not happening, 3) USGovt deficits and its moderate effect when infrastructure which is not happening, 4) Wall Street and financial account expansion for a tiny effect that offers psychological lift to consumers, and 5) Military spending for a profound deficit effect that harms twice with capital destruction in true nazi style. Be sure to know that fast reducing money velocity is the most reliable signal of deep recession and economic danger. The churn is gone to pay taxes in homage to the USGovt.

The nation seems to completely accept the notion of the USFed monetary policy being a radical stimulus that runs the risk of promoting extreme price inflation. The truth is the exact opposite. No stimulus is seen, when in fact the QE bond monetization will continue to kill capital and destroy business. The price inflation effects are all over the board, with material costs rising, service costs rising, but liquidation sales throughout the field of view in a suppressive cross current effect. The same incorrect stimulus propaganda has been spouted for months on end, actually over three years steadily like a propaganda loudspeaker. However, almost no economists comprehend the capital destruction and severely harmful effect from the USFed policy. The sequence is simple, from rising cost structure, poor pricing power, shrinking profits, ruined business segments and even entire businesses, then shut down of equipment and liquidated capital. The ongoing QE will ensure the USEconomy continues to deteriorate, with more acceleration coming. Those who expect a rise in business activity are way off, bordering on delusional. They are led by the system harlots. Those who expect the money velocity to rise are way off, bordering on clueless. They are led by morons and quacks.

 

FOREIGNERS DUMPING USTREASURY BONDS

Foreigners sold more US$-based securities in June than after the Lehman Brothers bankruptcy. The USFed must lap up what is dumped. Big pressure is on primary dealers, which the USFed must relieve. The Taper Talk will reverse into an acceleration of official bond purchases. A global USDollar rejection is in full swing. The new threat is the seizure of the REPO market, the vast overnight credit window device. In June and July, the Jackass indicated that the USFed would eventually be forced to buy up all the foreign dumping of USTreasury Bonds. It happened. The TIC Report is compelling. Paul Mylchreest added a great point regarding the tighter capital requirements imposed by Basel III Rules. He said, “Leverage ratio regulations might preclude banks using REPO’s to accommodate sudden influx of Treasury [being dumped by foreigners.] Maybe they will use the Exchange Stabilization Fund if BRICS start swapping USTreasurys for Gold as you suggest.” So the big US banks, and London banks too, might not be able to withstand the huge flood of USTBonds returned to the sender from foreign sources due to stricter rules on stretched capital.

A recent Treasury Investment Capital (TIC) Report showed every single type of US$-based securities sold on a net basis, a rare occurrence. The big culprit Treasurys sold a record setting net $40.8 billion, the largest single month sale of USTBonds in history. The consolidated foreign sale in June 2013 was greater than either month when Lehman failed, September or October 2008. The conclusion is simple and staring the nation in the face. The USFed must accelerate the QE bond monetization program, not reduce it. The public statements and declared rationale will be interesting, if not a comedy in lies, and an exposure of failure. The bigger conclusion is that the USGovt debt default is within view, no longer over the horizon.

 

COMEX VACANT GOLD VAULT

The COMEX registered gold continues to plummet, down to 665k oz gold in a recent snapshot. Members must distrust JPMorguen deeply. They are either removing their eligible gold, or refusing to put it among the registered stock. Pressures for a default are rising every month without respite. Refer to the COMEX Registered Warehouse gold in their official vaults. By Registered is meant available to meet delivery, in full satisfaction of strict requirements for form, weight, and purity. The present level of 0.665 million ounces marked on September 10th means a 77 to 78% decline had occurred this year. Bear in mind that the declines occurred following the German Govt repatriation request. The plummet is a major wake-up call for a COMEX default, or whatever they call a forced cash redemption to bullion bank suppliers. They are being drained and lied to, holding a fistfull of gold certificates that are in the process of being forcibly redeemed at cash.

Further investigation reveals JPMorguen taking gold from Scotia Mocatta under certain hidden threat, as well as from HSBC and other big banks. The drain has a pathway bound by coercion. A grand game of internal raids is underway that cannot be stopped. Pressure is brought to bear. Ramps are busy moving gold bullion around in trucks and tunnels. It is curious why Scotia Mocatta played this game of harikari. They cut a deal in Satan’s service.

 

CHINA GOLD IMPORT VIA HONG KONG

China imported an impressive 116.4 tons of gold in July. The exponential rise continues unabated in 2013. China is the Asian juggernaut on gold demand, and the primary engine for demand in the entire world. Their demand approaches half of global mining output. China imported through Hong Kong another robust load totaling 116.4 tons of physical gold in July of 2013. Their demand comes after the 517.92 tons of gold imports in the first six completed months of this year. In total, from January through July of this year, China imported a staggering  633.94 tons of physical gold. The trend continued in the next months. Put the figure into perspective. The global gold mine output in 2012 was on the order of 2750 tons. The SPDR Gold Trust (aka GLD Fund) had 919 tons at last count, but has been fast dwindling. Hence China alone has imported two thirds of GLD inventory in the first seven months of this year. In fact, July recorded their second largest gold import in a single month since the start of this bull market in 2001. The chart is courtesy of Sharelynx, often shown on the Hat Trick Letter with gratitude. The exponential growth is a steady trait.

GOLD TRADE SETTLEMENT

Let the graphic below tell the story, worth at least 1000 words, a Jackass task done on Powerpoint with glee. The Black Hole of the USTreasury Bond implosion has a corresponding fountain in Gold pressures. Acting like Old Faithful in Yellowstone Park, the gold movement continues to apply upward visible pressure. In fact, the analogy is more complete. The entire expanse of Yellowstone region is a giant caldera that serving as remnant to an ancient volcanic eruption and explosion. The region has been well studied, as geologists conclude its surface level is rising an inch or two (a few centimeters) every year. The return of the Gold Trade Standard outside the bank purview governed by SWIFT rules and outside the FOREX temples filled with moneychangers will arrive like a massive gigantic impressive volcano. Nothing can stop it. It is driven by the Eastern Hemisphere seeking an alternative to the USDollar in trade and a diversification away from the USTreasury Bond in banking reserves. The nations which actively depart the USDollar Sphere will survive, the others to fall into the De-industrialized Third World. Many are the forces within the inner circle and along the periphery. The Gold Trade Standard, enforced largely by China & Russia, supplied by the BRICS Bank which will manage the conversion of USTBonds to Gold bullion, will manifest the Paradigm Shift. The Price of Gold will easily reach the $7000 per oz mark, then surpass it. The Price of Silver will easily reach the $200 per oz mark, then surpass it. Gold (rock) wins, and USDollar (paper) loses, with BRICS acting like scissors on USGovt sovereign toilet paper.

THE HAT TRICK LETTER PROFITS IN THE CURRENT CRISIS.

From subscribers and readers:

At least 30 recently on correct forecasts regarding the bailout parade, numerous nationalization deals such as for Fannie Mae and the grand Mortgage Rescue.

 

“Jim Willie is a gift to our age who is the only clear voice sounding the alarm of the extreme financial crisis facing the Western nations. He has unique skills of unbiased analysis with synthesis of information from his valuable sources. Since 2007, he has made over 17 correct forecast calls, each at least a year ahead of time. If you read his work or listen to his interviews, you will see what has been happening, know what to expect, and know what to do.”

  (Charles in New Mexico)

“I commend the Jackass for being the most accurate of all newsletter writers. Others called for the big move in Gold right away, but you understand that the enormous fraud in the system needs to play out before free market forces can begin to assert themselves. You seem to have the best sources and insights into the soap opera that is our global financial system. Most importantly, you have advised readers to be patient, stay safe, and avoid mining shares like the plague. Calling the top in the USTreasury Bond (10-yr yield at 1.4% yield) stands out as a recent fine accomplishment. The Jackass understands the markets, understands the fraud, and also has the sources to keep him the most up-to-date on the big geopolitical and financial events and scandals. Few or no other writers have all three of these resources.”

  (Austin in California)

“A Paradigm change is occurring for sure. Your reports and analysis are historic documents, allowing future generations to have an accurate account of what and why things went wrong so badly. There is no other written account that strings things along on the timeline, as your writings do. I share them with a handful of incredibly influential people whose decisions are greatly impacted by having the information in the Jackass format. The system is coming apart on such a mega scale that it is difficult to wrap one’s head around where all this will end. But then, the universe strives for equilibrium and all will eventually balance out.”

  (The Voice, a European gold trader source)

 

Jim Willie CB is a statistical analyst in marketing research and retail forecasting. He holds a PhD in Statistics. His career has stretched over 25 years. He aspires to thrive in the financial editor world, unencumbered by the limitations of economic credentials. Visit his free website to find articles from topflight authors at  www.GoldenJackass.com. For personal questions about subscriptions, contact him at  JimWillieCB@aol.com

 

by Jim Willie CB October 17, 2013

 

home:  Golden Jackass website

subscribe:  Hat Trick Letter

Jim Willie CB, editor of the "HAT TRICK LETTER"

 

Use the above link to subscribe to the paid research reports, which include coverage of critically important factors at work during the ongoing panicky attempt to sustain an unsustainable system burdened by numerous imbalances aggravated by global village forces. The historically unprecedented ongoing collapse has been created by compromised central bankers and inept economic advisors, whose interference has irreversibly altered and damaged the world financial system, urgently pushed after the removed anchor of money to gold. Analysis features Gold, Crude Oil, USDollar, Treasury bonds, and inter-market dynamics with the US Economy and US Federal Reserve monetary policy.

Gartman Sours On Gold: He's Right For Now

Posted: 17 Oct 2013 10:46 AM PDT

A few weeks ago, I highlighted how Dennis Gartman of the well-known Gartman Letter had reversed himself on the prospects for gold, but as his position on the yellow commodity gets more negative, investors need to look at the overall structure of the market before allocating resources. With Deputy Janet Yellen as the probable replacement for Ben Bernanke as Chairman of the Federal Reserves, most pundits realize that easy money is here to stay. Still, Friday's sell-off puts some critical support levels squarely in the bullseye of bears, meaning that deciphering the swirling forces is the only way to get a clear picture on where gold may go from here.

Gartman's Take

Even prior to the news that the debt ceiling has been raised and the federal government was once again open for business, Gartman recommended that investors focus on steel stocks - think U.S. Steel (X) and Nucor

Falling gold purchases reduce India's import bill

Posted: 17 Oct 2013 10:44 AM PDT

The Planning Commission of India has projected the country's current account deficit (CAD) for the entire fiscal year to be around $40- $45 billion. This is sharply lower than the 'red line' target of $70 billion projected by the country's Finance Ministry, thanks to the drastic fall in gold imports...

Debt deal sees gold, silver surge, still leaves creditors "reviewing dollar holdings"

Posted: 17 Oct 2013 10:42 AM PDT

The wholesale price of gold in London leapt at the start of Thursday's trade, rising $45 per ounce to hit one-week highs above $1,320 after the U.S. Congress reached a short-term deal on the government's debt limit.

SILVER: 4 Cycles in 12 Years

Posted: 17 Oct 2013 10:25 AM PDT

SILVER: 4 Cycles in 12 Years

Since 2001 the silver and gold markets have gone up substantially as a reaction to the 20 year precious metals bear market from 1980 – 2000, massive increases in military spending, weakening global economies that REQUIRE Quantitative Easing to avoid deflation, the rise of competing currencies that weaken the dollar's trading status, excessive debts in [...]

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Gold spikes 3% after debt ceiling rises, U.S. downgrade

Posted: 17 Oct 2013 10:05 AM PDT

Gold rose for the first time in four days after U.S. lawmakers reached an agreement to increase the debt ceiling and increasingly important Chinese credit ratings agency, Dagong Global Credit Rating Co. cut its credit rating for the U.S.

Capital Controls Revisited

Posted: 17 Oct 2013 09:45 AM PDT

Speaking of PROTECTING yourself – which I did this week by purchasing more PHYSICAL gold, and withdrawing more funds from my Charles Schwab non-margin brokerage account; I have long written of how CAPITAL CONTROLS will eventually "swamp" attempts to flee the burning American building.  They were widely discussed during the 2008-09 crisis – including capital withdrawal limits and IRA confiscations – and to this day, such talks have only accelerated, oftentimes in full public view.  "Bail-in" policies are on the verge of becoming official, and additional calls for government "management" of retirement plans are only the start; not to mention the FBAR and FATCA regulations monitoring your international financial holdings (which, according to what we have been advised, do not apply to our Brink's Canada PM storage program).

And now, the following news that JP Morgan is apparently – as of next month – initiating "cash activity" limits of $50,000 per account per month; and worse yet, terminating the ability to send international wires.  In fact, if such wires were already scheduled, they will be promptly cancelled!  And no, this is not anecdotal evidence – but instead, based on REAL company communications, like this letter…

Chase Letter

 

At this point, I don't know what else you need to see to realize America's days of financial freedom are all but over – not to mention, the ability to exercise countless, previously sacrosanct rights of ALL kinds.  Whether the current financial system lasts a month, a year, or more is immaterial – as the writing is on the wall, as loudly as at any time in our lives.  The time to prepare is running low – as "the day the dollar died" is nearing rapidly.  Only PHYSICAL precious metals will help you to bridge the "financial gap" between the current system and the new one, whatever it may be; while holding other LIFE'S NECESSITIES may well prove the difference between life and death.Similar Posts:

Alasdair Macleod: The Deflationistas Are Wrong

Posted: 17 Oct 2013 09:15 AM PDT

Alasdair Macleod: The Deflationistas Are Wrong

Alasdair Macleod joins Rahul from Alternative Investors to discuss the most recent episode of gold and silver manipulation which saw approximately 2 million ounces of paper gold dumped on the market in 3 minutes Friday, as well as Iceland’s recent debt default, and how it proves the deflationistas are WRONG about what is coming to [...]

The post Alasdair Macleod: The Deflationistas Are Wrong appeared first on Silver Doctors.

Gold Spikes 3% After Debt Ceiling Rises, U.S. Downgrade, Chase Bank Imposes Capital Controls

Posted: 17 Oct 2013 09:02 AM PDT

gold.ie

Gold slumping to four-year low for best forecasters

Posted: 17 Oct 2013 09:02 AM PDT

Gold will drop in each of the next four quarters and reach a four-year low as reduced U.S. stimulus in response to faster economic growth curbs demand for bullion as a haven, the most accurate forecasters said.

Mario Draghi: “Also the experience of some central banks who liquidated their entire stock of gold about 10 years ago was not very successful.”

Posted: 17 Oct 2013 08:38 AM PDT

Stacy Summary: Mario Draghi answers question about gold from Tekoa da Silva. Stay tuned for the end when he disses some central banks who made mistake of liquidating their gold. Is he talking about UK? I assume he is when he says some central banks about 10 years ago liquidated ‘entire stock of gold;’ the UK, in fact, allegedly ‘liquidated’ about 60%. Needless to say, Draghi will be reprimanded for this. [Photo of Larry Summers as the question asked.]

Learn more about Brown’s Bottom here:

Larry Summers was in the room whilst this question about gold was being asked of Draghi. Notice that he appears to be the only one in the room who understands the importance of this question:

Who asked about gold!? Nooooo!!!!

Who asked about gold!? Nooooo!!!!

The dollar is just whistling DXY as it breaks below 80 and onto seven month lows

Posted: 17 Oct 2013 08:18 AM PDT

The dollar index puked all it's pre-debt-limit rise today, crashing back through 80, and onto fresh seven month lows. DXY (daily): (click for sharper image) It's pretty clear what people thought of...

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India jewellers to resume sale of Gold coins

Posted: 17 Oct 2013 08:10 AM PDT

A news report quoting a senior official of All India Gems and Jewellery Federation (GJF), that represents three lakh players in the industry, said that the decision not to sell gold coins was taken in July this year to support government initiative to curb current account deficit (CAD).

Jim Willie: Gold Resurrection from Financial Disaster

Posted: 17 Oct 2013 07:57 AM PDT

jones gold 2The central bank concept is the Matrix in embodiment, but the Eastern nations led by BRICS and G-20 have a key to unlock the USDollar prison. A quick look at the Australian banking system reveals four global banks who own outsized portions, their reach extending to the largest gold producer in Oz as well. Incest is best. The fast decline in Money Velocity is the most convincing proof of the failure of monetary policy. It does not provide stimulus, but rather capital destruction. The foreign dumping of USTreasury Bonds actually accelerated this past summer, amidst the Taper Talk trial balloon offered by the hapless desperate Bernanke Fed. His legacy will be one of disproving his own PhD Thesis, since liquidity in torrents does not repair insolvency, and no traction comes to soaked ground.
A grand game of shuffling gold bars has begun, actually accelerated in a final phase. The big bullion banks wish to obscure that they are almost bone dry of gold in inventory. The COMEX will shut down from no gold, rather than criminal prosecution in a land where crime rules and treason is the syndicate bylaw.
The climax event will be the return of the Gold Trade Standard, discarding the USTreasury Bonds, converting them to Gold bullion. The early adopters and those who follow the viable solution will be the winners. Those who cling to their USTBonds and their other paper securities in indentured servitude will be the losers.

Click here for Jim Willie’s latest Hat Trick Letter: Gold Resurrection from Financial Disaster:

Jim Willie: Gold Resurrection from Financial Disaster

Posted: 17 Oct 2013 07:53 AM PDT

Jim Willie: Gold Resurrection from Financial Disaster

The central bank concept is the Matrix in embodiment, but the Eastern nations led by BRICS and G-20 have a key to unlock the USDollar prison. A quick look at the Australian banking system reveals four global banks who own outsized portions, their reach extending to the largest gold producer in Oz as well. Incest [...]

The post Jim Willie: Gold Resurrection from Financial Disaster appeared first on Silver Doctors.

Debt deal done, but dollar's demise deep-rooted

Posted: 17 Oct 2013 07:41 AM PDT

U.S. politicians may have side-stepped a debt default at the 11th eleventh hour on Wednesday, but currency analysts have told CNBC that the dollar's status as a reserve currency will suffer long-term damage from the impasse...

Read

Gold Is Money and It Is a Long-Term Hold

Posted: 17 Oct 2013 07:25 AM PDT

I was putting the finishing touches on today's newsletter when I looked up and gold was up over two percent at $1,309.40 and the dollar dove below support at 80 and currently resides at 79.97.  Let's see the follow up on Thursday and Friday before we get too excited.

24 Hour Spot Gold BId 10-17-13 423

Today, I want to talk about something that doesn't matter – the daily price of gold.  Most newsletter writers sell their "information."  They justify the cost by offering price and timing information.  Not that its bad in itself, but when it comes to gold, it is misleading.

Let's start with the writers that have the best record of predicting gold's short-term price and timing it accurately?  I'd put Ed Steer/Ted Butler at the top.  They predict, accurately I might add, that gold and silver will rise, or fall, when JPMorgan wants it to.  They predict that gold and silver will rise as high or fall as low as JPMorgan can push the markets, when it suits them.  Now these are predictions I can live with.

Larry, "I called it right" Edelson wrote that gold would bottom in the $1,000-$1,100 area – and then rebound – and the NEW BULL MARKET will commence, moving up toward the $5000 range and higher.

He's likely right – at least about where the price of gold is headed.  He understands that the bull market is not over, or maybe not.  He states that the "NEW BULL MARKET leg will be higher…"  This is not a new bull market!  We are nearing the end of a correction of the same bull market that started 12 years ago.  The bull market will resume, but it's definitely not a NEW BULL MARKET!

His "first week in October" has come and gone.  His charts let him down.  His latest comments (kind of a retraction, without actually saying it) are still long-term bullish, but the timeframe has been extended until January.  So much for the accuracy of anyone's charts and graphs.  Playing the gold-timing game is for gamblers and speculators.  Gold is not an investment to time, to buy and sell.  Oh, you can do it, but it is a mistake.  Gold is MONEY and it is a long-term hold, an insurance policy.  Do you sell your life insurance policy because your doctor told you that you would live another 15 years?  I doubt it.  You know the phrase – "The past is no guaranty of the future."  And that is even truer with gold and silver since, as I believe, they are heavily manipulated and NOT allowed to move in a logical, rational and PREDICTABLE short-term pattern.

Here are the highlights of what Edelson wrote:

I love gold. I love its history. I love the role it’s had in many monetary systems. I love the beauty of gold. I love the versatile uses of gold.

I love gold coins. I love objects made of gold. I love gold’s role in new technologies.

But gold is not the end-all, be-all of the investment world. Nor is it the world’s savior. It is not even a very good hedge against inflation.

The hate mail will pour in again. I’m sure of it. But I have my reasons for giving you the truth, and nothing but the truth, about gold. As despised as I’ll be for the facts I give you today, you need to know the truth.

Consider the following:

At the depths of the depression in 1929, an ounce of gold sold for $20. The Dow Industrials

was at 40.

An ounce of gold today is roughly $1,300. It has increased 65 times over.

But the Dow Industrials stands at about 15,000. That’s 375 times more than it was in 1929.

And that means since 1930, the Dow has outperformed gold 5.8 times over.

In 1980, gold sold for $850 an ounce. The Dow Industrials was at 824.6. Since then, gold has increased 1.5 times over, and the Dow 18 times.

Now, on the flip side of the coin, since the year 2000, gold's gained more than 400 percent.

But the Dow Industrials are up a meager 29 percent.

As you know from my previous columns, I expected a cycle low to form by Oct. 3.  We got that low right on cue at $1,276.90, one day early, on Oct. 2.

But that low did not break the prior low at $1,178.  That means the interim bear market is not over yet, and that gold will likely bounce around I a tight trading range for the next couple of months, then do a swan dive heading into January of next year, where I expect gold will move below $1,178 – and likely bottom around the $1,035 level or just slightly lower, under $1,000.

And then I WILL TELL YOU TO "back up the truck" on gold.  For, you see, during gold's ensuing new bull market leg higher, it will finally play catch-up with inflation, it will also rise as European and U.S. governments fall from their perches into a heap of rubble – and gold will begin an ascent that will take it to well over $5,000 an ounce.

TIMING, in life and in the markets, is everything.  Gold is not immune to that law.  And it's just not time for gold to shine again.

If you own gold from much lower levels, as I do and my subscribers do as well, then hold that

gold. It's great insurance.  But don't back up the truck on new purchases yet.  WAIT UNTIL I

TELL YOU TO DO SO.

-Money and Markets, October 7, 2013

I can hardly wait to comment on this.  I'll start at the top and work my way through his article.

First, he assumes the role of a "self-appointed expert."  There are not "experts" in gold, although some have a better track record than others.  I'd put my money on Jim Sinclair and Richard Russell, but you can pick your own gurus.

Then he says gold is not a good hedge against inflation.  In the last bull market in the 1970s, inflation was the force driving gold and silver.  Inflation was the result of the failure of the U.S. dollar.  Gold (and silver) were the big winners during the inflationary 70s.

Foreigners had stopped buying our bonds and they were dumping dollar assets.  As the dollar plunged, especially against the German Mark, inflation set in and prices rose.  It got so bad that price and wage controls were implemented.  Gold and silver were becoming fashionable.

Which inflation numbers is Larry talking about – the BLS or John Williams' real inflation numbers?  While it is true that my definition of inflation, Williams' numbers which currently run around nine percent, should be accompanied by a higher gold price, that assumes that there are no outside forces holding it back.  Bill Holter, Andy Hoffman and I have written about the manipulation on a daily basis, for years.  The topic is not new to our readers.  There is no need to repeat it here, again.

We are getting very close to the time when the dollar's near the 70-year run as the world's reserve currency comes to an end.  Once the dollar starts falling, there will be nothing holding gold and silver back.

I expect more from Edelson, since he crowned himself as THE gold "expert."  What surprises and disappoints me is that the arguments he presents here, usually come from Wall Street and the anti-gold crowd.

He uses gold vs. the Dow from 1929 but conveniently forgets to mention that the price of gold was FIXED at $20.67 an ounce at the time, and then "revalued" to $35 an ounce in 1933, a price that was in effect for nearly another 40 years.  Gold was not allowed to float, but the Dow wasThe comparison is flawed and terribly biased against gold.

Then he compounds the myth by using the gold vs. the Dow timeframe with a starting point of 1980.  In 1980 reached an all-time high of $850 and that was the end of a decade-long bull market.  The Dow was in the 800-range from 1975 through 1981 and then took off as interest rates came tumbling down.  You couldn't pick a more unfavorable starting point (the end of one bull market and the beginning of another) to use as a "fair" comparison.

Why didn't Edelson start the gold vs. Dow comparison in August of 1971?  That's when Nixon ended the gold standard and stopped "officially" fixing the price of gold.  Gold was a touch over $42/ounce at the time.  No, instead Edelson uses 1980 as his starting point.  By then, gold had already increased by more than 20 times!  Using the 1971 starting point, in spite of constant manipulation, gold has increased by 31 times and the Dow is up 18 times.

I didn't pick an "arbitrary" starting point to favor gold.  It was the first time that the price of gold was allowed to float in a relatively free market.  That is the only logical starting point.  Using 1980, the top of a decade-long bull market, is as anti-gold biased as one can get.  No gold "expert" would use the numbers Larry is using.  That's the crap I used to hear from Backwoods Jack and his Wall Street clan.  Frankly, I am very surprised.  Here I thought Edelson was one of the "good guys."

Larry is like so many "newsletter advisors."  They tell you that they can predict the short-term price of gold and silver.  No, they can't.  Worse yet, Edelson subtly reprograms your mindset to make you think of gold as an investment, when that is not its purpose; gold is money and your insurance against not only inflation, but dollar debasement, political turmoil, and war, to mention but a few.

I don't claim to have a crystal ball.  But neither do I buy and sell.  I still have all of my precious metals and they are resting quietly (mostly off shore in a safe and private storage facility) waiting for their time to come.  And when will that be?  When Sinclair's Great Reset arrives, or when I need the funds to live off of or to survive.

Most of our readers own their gold at or below the current price.  Sure, there was a correction, but unless I am forgetting something, housing corrected, the Dow had its ups and downs, and nothing goes up or down forever.  It's just fashionable to pick on gold and silver now, but that will change.  In the near future, they will make headlines, in the most positive of ways.  Today's bears will be tomorrows cheer leaders.  That is something you can bank on.Similar Posts:

Indian Central banks says it “can always pay the world in gold” – but we thought gold wasn’t money

Posted: 17 Oct 2013 07:12 AM PDT

It was one of the more memorable moments in Congress, it was July 2011 and Ron Paul was asking questions to the Fed chairman, Ben Bernanke. At the time we wrote: Well, if ever you wanted a clearer...

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Chase Bank Initiates Capital Controls, Limits Cash Withdrawals & Bans International Bank Wires!

Posted: 17 Oct 2013 07:01 AM PDT

Chase Bank Initiates Capital Controls, Limits Cash Withdrawals & Bans International Bank Wires!

It appears that any small American business not already shut down by Obamacare regulations will be helped along by the banksters. In an apparent effort to front-run official government capital controls, JP Morgan Chase has issued letters to ALL Business account holders notifying them that as of Nov 17th, the bank will limit all cash [...]

The post Chase Bank Initiates Capital Controls, Limits Cash Withdrawals & Bans International Bank Wires! appeared first on Silver Doctors.

David Morgan – Hunt Brothers History Lesson

Posted: 17 Oct 2013 07:00 AM PDT

David Morgan - Hunt Brothers History Lesson

In this must listen interview, Silver-Investor.com’s David Morgan breaks down the official storyline, and gives the real story of the Hunt Brothers attempts to take delivery of a large portion of COMEX silver, and how the petrified banksters responded. 2013 Silver Maples As Low As $2.09 Over Spot at SDBullion!   2013 Silver Philharmonics As [...]

The post David Morgan – Hunt Brothers History Lesson appeared first on Silver Doctors.

Gold rises above $1300 as US law makers avoid temporary debt default

Posted: 17 Oct 2013 06:41 AM PDT

US Gold futures for December delivery has climbed almost $10 to $1292 an ounce on electronic trading on Thursday. According to Jeff Nichols, Precious Metals Economist and Managing Director of American Precious Metals Advisors, uncertainty continues in the precious metals markets.

Gold Spikes 3%, Silver 5% After Debt Ceiling Rises, U.S. Downgraded, Chase Bank Imposes Capital Controls

Posted: 17 Oct 2013 06:10 AM PDT

 Gold Spikes 3%, Silver 5% After Debt Ceiling Rises, U.S. Downgraded, Chase Bank Imposes Capital Controls

Gold prices jumped $36 in 15 minutes overnight and surged as high as $1,321 per ounce or as much as 3.6% at one stage. Silver jumped by an even greater margin, by 5.1%, and rose over a dollar to as high as $22.18/oz. Gold rose for the first time in four days after U.S. lawmakers [...]

The post Gold Spikes 3%, Silver 5% After Debt Ceiling Rises, U.S. Downgraded, Chase Bank Imposes Capital Controls appeared first on Silver Doctors.

US Debt Deal Sees Gold, Silver Surge, Still Leaves Foreign Creditors "Reviewing Dollar H

Posted: 17 Oct 2013 06:00 AM PDT

Bullion Vault

Silver price jumps by nearly 5% and is back over $22

Posted: 17 Oct 2013 05:59 AM PDT

Hot on the heels of gold is silver. Gold has managed a good 4% move (so far) and silver has bettered that with a move of nearly 5%, and crucially is trading back above $22 – a level which has...

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Debt limit can ‘kicked’ – gold price soars higher by 4%

Posted: 17 Oct 2013 05:31 AM PDT

Rather predictably the preverbal 'can' has been 'kicked' again with regards the debt limit of the USofA. It wasn't quite an 11th hour deal, it was in fact a 10th hour and 10 minute deal – so...

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Gold Spikes 3% After Debt Ceiling Rises, U.S. Downgrade, Chase Bank Imposes Capital Controls

Posted: 17 Oct 2013 05:02 AM PDT

Gold rose for the first time in four days after U.S. lawmakers reached an agreement to increase the debt ceiling and increasingly important Chinese credit ratings agency, Dagong Global Credit Rating Co. cut its credit rating for the U.S.

Today's AM fix was USD 1,308.50, EUR 959.87 and GBP 813.09 per ounce.
Yesterday's AM fix was USD 1,278.25, EUR 944.75 and GBP 797.71 per ounce.

Gold fell $1.80 or 0.14% yesterday, closing at $1,279.50/oz. Silver slid $0.06 or 0.28% closing at $21.27. Platinum climbed $14.80 or 0% to $1,395.20/oz, while palladium rose $7.25 or 1% to $712.55/oz.

Gold prices jumped $36 in 15 minutes and it surged as high as $1,321 per ounce or as much as 3.6% at one stage. Silver jumped by an even greater margin, by 5.1%, and rose as high as $22.18/oz.

Gold rose for the first time in four days after U.S. lawmakers reached an agreement to increase the debt ceiling and increasingly important Chinese credit ratings agency, Dagong Global Credit Rating Co. cut its credit rating for the U.S.

This led to short covering and some safe haven demand for gold as the dollar fell against all major currencies.


Gold in USD and Debt Ceiling – Quarterly, 1933-2013 – (Bloomberg)

The smart money is scooping gold bullion up at these depressed levels. Gold is down 23% this year despite robust demand from central banks and especially from India and China.

Global sales of bullion bars and coins gained 78% in the second quarter, according to the World Gold Council, showing that demand actually accelerated.

The U.S. government has avoided default but remains essentially insolvent and its appalling fiscal state has deteriorated once again due to the debt ceiling being raised above $16.7 trillion. Although the U.S. national debt has already surged well above that and as of writing, the U.S. National Debt is actually nearly $16.97 trillion and rising at roughly $1 trillion every year.

It is worrying that the recent debate has again been superficial and revolves around the theatre and political chicanery of the Republicans versus the Democrats and the usual partisan support for opposing 'teams' rather than the substantive issue of America's likely insolvency and the fact that the actual national debt is actually between $100 trillion and $200 trillion and there is little sign of political or economic will to tackle this fundamentally important issue.

The U.S. is engaged in fiscal and monetary policies that are akin to a Banana Republic.

In addition to electronically creating out of nothing $85 billion every month to buy its own debt in the form of bonds, the U.S. is also borrowing more money than it is authorized to borrow, from itself again.

The extra $264 billion or so in borrowing — the difference between the actual real time $16.964 trillion national debt and the $16.7 trillion debt limit — was lent to themselves – by one section of government to another – in recent weeks.  Treasury Secretary, Jack Lew, ex COO of Citigroup Bank, has been using "extraordinary measures" since the U.S. ran out of money a few months ago and has been using government retirement programmes to make up the difference.

This is a form of shell game or confidence trick used to perpetrate what is a dangerous accounting practice that tends to end in tears.


Gold and Silver in USD and Debt Ceiling – Quarterly, 2000-2013 – (Bloomberg)

These unusual, some would say fraudulent, accounting practices and the fact that the U.S. is borderline insolvent, contrary to copious amounts of denial globally, are extremely dollar bearish and gold and silver bullish.

The risks posed to the dollar, but also to the pound, euro, yen and other electronic and fiat currencies is why we remain confident that both precious metals will reach real (inflation adjusted) record highs in the coming months.

Silver will likely continue to outperform after its most recent period of under performance.

JP Morgan Chase has issued letters to its business account holders notifying them that as of November 17 the bank will limit all cash transactions, including deposits, withdrawals and ATM usage, to $50,000 per month, and will prohibit all outgoing international bank wires.

Chase Bank has moved to limit cash withdrawals while banning business customers from sending international wire transfers. This has caused speculation that the bank is preparing for a looming financial crisis in the United States by imposing capital controls.

Some have suggested the drastic measures were designed to push business clients into more costly premium business accounts. Bank officials confirmed yesterday that the new capital limits apply to all business account holders but could not say why the measures came about and whether they were bank driven, due to profit motives or government regulations.


Gold in USD and Debt Ceiling, 2011 - (Bloomberg)

The bank will stop processing any outgoing international bank wire, and that any monthly cash transactions in excess of the new $50,000 limit will be subject to penalties and fees.

JP Morgan is embattled after a series of scandals including allegations of manipulation in many markets including LIBOR, foreign exchange, oil and energy markets and of course in the gold and silver markets.

It has received some enormous 'slap on the wrist' fines as it attempts to clear up the mess created by the London Whale trading scandal. The bank will pay $100 million to the U.S. Commodity Futures Trading Commission (CFTC), conceding “reckless” behavior led to the trading debacle that generated about $6 billion in losses.

There remains the real risk of capital controls and it will be important to own gold bullion in the event of capital controls.

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US Dollar Index Forecast October 17, 2013, Technical Analysis

Posted: 17 Oct 2013 05:00 AM PDT

fxempire

COMEX Gold Warehouses Continue to Bleed Out As Owners Per Ounce Climbs Back Over 53

Posted: 17 Oct 2013 04:00 AM PDT

Le Cafe Américain

Jim Rickards: Central Bank and Hedge Fund Bear Raids Push Gold From West to East

Posted: 17 Oct 2013 02:36 AM PDT

"The high-frequency trader were ever vigilant as the deficit crisis went down to the wire"

¤ Yesterday In Gold & Silver

Gold didn't do much of anything in Far East trading on their Wednesday, but the smallish rally going into the London open proved to be the high tick of the day, as a seller showed up immediately.  The gold price then sold down a bit into the London a.m. gold fix, rose into the noon BST silver fix, before getting sold down to its low of the day which occurred at precisely 3 p.m. BST, which was the close London close.  That was 11 a.m. in New York.

The tiny rally that followed got capped just minutes after the 1:30 p.m. Comex close, and that was it for the day.

The high and low ticks in the December contract were reported by the CME as $1,289.20 and $1,268.60.

Gold closed the Wednesday session at $1,282.70 spot, up $1.70 from Tuesday.  Volume, net of October and November, was pretty decent at 177,000 contracts, most of which were of the HFT variety.

Here's the New York Spot Gold [Bid] chart on its own so you can see the precise timing of the low tick at the London close.

The silver price traded erratically within a very tight range everywhere on Planet Earth on Wednesday.  The highs and lows aren't worth mentioning.

Silver closed at $21.42 spot, up a whole 12 cents from Tuesday.  Net volume  was pretty decent as well, at 43,000 contracts.

Both platinum and palladium had an easier time of it.  Here are the charts.

The dollar index closed in New York at 80.42 on Tuesday afternoon.  Its Far East high of 80.57 came at 9:30 a.m. in Hong Kong.  At that point it headed slowly lower, hitting its low tick of 80.29 just before the 8:20 a.m. EDT Comex open.  The subsequent rally peaked out at 80.75 about 12:15 p.m. in New York before sliding back to 80.40 by 2 p.m.  After that it didn't do much.  The index closed at 80.40, which was up eight basis points on the day.

The gold stocks opened lower, and were down over 2% within the first 45 minutes of trading.  The subsequent rally took the stocks back to unchanged, but they couldn't hold it.  By the close, the gold equities were back almost to their low of the day.  The HUI finished down 1.68%, giving up over half their Tuesday gains.

The silver stocks did somewhat better.  The chart pattern was the same, but they never got sold down as hard as the gold equities at the open, and even traded in positive territory for a bit before rolling over.  Nick Laird's Intraday Silver Sentiment Index closed down 0.71%.

The CME's Daily Delivery Report showed that 58 gold and zero silver contracts were posted for delivery within the Comex-approved depositories on Friday.  Canada's Bank of Nova Scotia issued 56 of those contracts, and JPMorgan Chase stopped 55 contracts.  The link to yesterday's Issuers and Stoppers Report is here.

Another day, and another withdrawal from GLD.  This time it was 115,828 troy ounces.  And as of 9:53 p.m. EDT, there were no reported changes in SLV.

Over at Switzerland's Zürcher Kantonalbank for the week ending 11 October, they reported small declines in both their gold and silver ETFs once again.  In gold it was 20,393 troy ounces, and in their silver ETF it was 219,814 troy ounces.

There was a tiny sales report from the U.S. Mint yesterday.  They sold 1,000 ounces of gold eagles and 1,000 one-ounce 24K gold buffaloes.

It was fairly busy at the Comex-approved depositories in gold on Tuesday.  They didn't report receiving any, but they did ship out 51,201 troy ounces.  Almost all of the warehouses were involved to a certain extent, and the link to yesterday's activity is here.

It was another big day for silver at these same depositories.  They reported receiving 321,474 troy ounces, and shipped out 1,149,701 troy ounces.  Virtually all of the activity was within the Scotiabank depository.  The link to that action is here.  And please note Ted Butler's comments on this in the quote in The Wrap section further down.

I don't have a lot of stories again for you today, but I hope you find some that interest you in the list posted below.

¤ Critical Reads

Congress Sets New Deadlines as Votes Will Open Government

After the partisan passions and heated rhetoric, the disruptions of a government shutdown and displays of dysfunction, Congress did what it could have done weeks ago: voted to fund the government and lift the debt limit.

The passage last night by wide margins -- an 81-18 vote in the Democratic-led Senate, followed by a 285-144 vote in the Republican-controlled House -- allows the U.S. to avoid default and ends the shutdown that began Oct. 1 and has taken $24 billion out of the economy.

President Barack Obama signed the bill just after midnight, according to a White House statement. The measure puts government workers back on the job as soon as today and permits the U.S. to continue paying its debts, benefits and salaries.

This Bloomberg story was posted on their website at 11:15 p.m. Denver time last night... which was 1:15 a.m. EDT.

Three things that worry Marc Faber more than D.C.

While investors fret over D.C. brinkmanship as the government gets closer and closer to the debt ceiling, "Dr. Doom" Marc Faber has other concerns on his mind.

"I think the markets will move according other events rather than what is happening in Washington," Faber said Tuesday on CNBC's "Futures Now."

Specifically, the publisher of the Gloom Boom & Doom Report newsletter warns of disappointing earnings, deteriorating technicals, and a decline in consumer confidence.

This 45-second CNBC video clip was posted on their Internet site very early on Tuesday afternoon...and I thank reader Ken Hurt for sending it along.

Jamie Dimon On The U.S. Debt Endgame

Yes, it's ironic to defer to Jamie Dimon, who lately has far more pressing concerns in justifying the non-criminal nature of his enterprise, on anything - especially which does not involve market manipulation - but for once, Jamie actually had it right when it comes to framing the parody of governance in the US and the real debt problem.

Q. How worried are you that one morning the bond market has moved against the United States?

A. It’s virtually assured, the question is when and how. I don't know if it will be two years of five years but it will happen. It is a matter of time, the United States can’t borrow indefinitely. Over hundred years bankruptcies of country after country who thought they could get away with it because they had the reserve currency and the military power of the world. We are going to have fiscal discipline. It’s imposed upon us or we do the right thing and do it to ourselves the right way...America knows the way, it doesn't have the will.

I listened to the embedded 1:30 video clip...and it's definitely a must watch...and this short Zero Hedge piece from yesterday is a must read.  I thank reader M.A. for sharing it with us.

Bart Chilton: "We are the 'posse' trying to track down banks"

This 56-second CNBC video clip was posted on the thomsonreuters.com Internet site yesterday.  It's too bad that the CFTC can't/won't do anything about the outrageous long-side corner in gold by JPMorgan, and the short-side corners in silver, platinum and palladium held by JPMorgan Chase and two other U.S. banks.

I thank Washington state reader S.A. for bringing this video clip to my attention...and now to yours.  [Note to Bart: Get a haircut!]

Bernanke won't have to testify in A.I.G. case—for now

Federal Reserve Chairman Ben Bernanke does not have to testify in the multibillion-dollar lawsuit by the former chief of American International Group against the United States over the insurer's 2008 bailout, a federal appeals court said on Wednesday.

The ruling, from the U.S. Court of Appeals for the Federal Circuit, overturned a lower court decision from July that said Bernanke should submit to a deposition by lawyers for former AIG CEO Maurice "Hank" Greenberg.

Deposing Bernanke while he is in office could disrupt "significant" government activities, the panel said.

This Reuters piece was posted on the cnbc.com Internet site after the markets closed in New York yesterday...and my thanks go out to West Virginia reader Elliot Simon for sharing it with us.

South Dakota Ranchers Face Storm's Toll, but U.S.' Helping Hands Are Tied

The cattle lay in heaps of tangled hooves, collapsed against fences and submerged in creeks. Some had curled up behind hay bales, hiding from 70 mile-per-hour winds that scattered herds for miles, struck by hypothermia weeks before they were scheduled to go to market.

In one of the worst blizzards to hit western South Dakota, ferocious winds and snow as deep as five feet killed tens of thousands of livestock and damaged the area’s economy. More than a week later, many of the cows remain unburied.

“At this point in time, it’s important to step over the dead ones and take care of the living,” said Gary Cammack, a state representative and rancher who lost 120 cows and calves, about a fourth of his herd.

Fetching about $2,000 a head and outnumbering South Dakotans by 5 to 1, cattle make up about a quarter of the state’s $24 billion-a-year agriculture industry, its largest economic driver. About a third of the state’s 16,000 beef farms are west of the Missouri River, the area hit hardest by the storm.

I posted a story about this in yesterday's column, but this one appeared on The New York Times website on Tuesday...and the 8-photo slide show is worth looking at.  I thank Roy Stephens for his first offering in today's column.

Flaherty Anti-QE Stance Opens Central Bank, G-20 Rift

Canadian Finance Minister Jim Flaherty’s criticism of U.S. monetary policy, which he ramped up last week in Washington, may be putting him at odds with the Bank of Canada and the Group of 20.

Flaherty said he criticized the Federal Reserve’s use of unconventional monetary policy known as quantitative easing at a private dinner of G-20 officials on Oct. 10, with U.S. Federal Reserve Chairman Ben S. Bernanke in attendance.

“I was fairly clear” at the meeting, Flaherty told reporters the next day. “It’s not good public policy,” he said, describing quantitative easing as “the printing of money.”

"It's our currency, but it's your problem."...was the famous quote from U.S. Treasury Secretary John Connally back in 1971...and that still applies to this day for all countries that depend on exports for most of their GDP...Canada included.  This Bloomberg story was posted on their Internet site yesterday morning Denver time.  I thank reader "Alex B." for sending it along.

European Commission backs Albanian E.U. membership talks

Presenting the EU executive's annual enlargement reports on Wednesday (16 October), commissioner Stefan Fuele said that the step, which comes three years after the commission rejected Albania's first application, was conditional on Tirana continuing to combat organised crime and corruption.

EU governments will decide on whether to formalise candidate status at a summit in December.

"There are five key priorities which stand between Albania and accession talks: corruption, organised crime, judiciary, administrative reform, human rights," said Fuele.

Balkan neighbour Croatia became the twenty-eighth member state in July following a six-year negotiation process. It is the second country, after Slovenia, from the former Yugoslavia to join the EU.

And Nigel Farage pointed out what happened to Croatian exports after they joined, they fell 11 percent in two months.  This story, filed from Brussels, was posted on the euobserver.com Internet site late yesterday afternoon Europe time...and it's another contribution to today's column from Roy Stephens.

Greece strips three extreme right MPs of immunity

Greece's parliament on Wednesday lifted the legal immunity of three MPs from the Golden Dawn neo-Nazi party who are facing charges of belonging to a criminal organisation.

The chamber also lifted the immunity of three more of the party's lawmakers on lesser charges, amid a month-long crackdown on Golden Dawn's activities following the murder of an anti-fascist musician in September.

Golden Dawn leader Nikos Michaloliakos, his deputy Christos Pappas and lawmaker Yiannis Lagos are already being held in Athens's high security Korydallos prison over the case.

This article appeared on the france24.com Internet site yesterday...and I thank Roy Stephens once again for sending it our way.

Huge half-ton chunk of Russian meteorite lifted from lake bed

The largest-discovered fragment of a Russian meteorite, weighing around 570 kilograms, has been lifted from the bed of Lake Chebarkul in the Urals.

The huge meteorite chunk split into three pieces when scientists tried to weigh it. The precise weight could not be established because the heavy object broke the scales.

The preliminary examination... shows that this is really a fraction of the Chelyabinsk meteorite. It’s got thick burn-off, the rust is clearly seen and it’s got a big number of indents. This chunk is most probably one of the top ten biggest meteorite fragments ever found,” said Sergey Zamozdra, associate professor of Chelyabinsk State University, as cited by Interfax news agency.

Well, dear reader, the fact that it fell apart with light handling suggests that it's mostly made of stone, with maybe some iron in it...as an iron meteorite would never fall apart with light handling, especially considering the G-forces it was exposed to during its decent to earth.

This very interesting Russia Today story from yesterday is definitely worth reading...and both embedded videos are worth watching.  I thank Roy Stephens for his this third contribution in a row, and his final offering in today's column.

Three King World News Blogs

1. Dr. Stephen Leeb: "China May Seize Control of Entire U.S. Financial System".  2. Rob Arnott: "What We Have Right Now is the Battle For the Soul of a Nation".  3. John Ing: "China is Setting Up the Worst Nightmare For the U.S.".

[Please direct any questions or comments about what is said in these interviews by either Eric King or his guests, to them, and not to me. Thank you. - Ed]

Sprott's Thoughts: Rick Rule -- Are Gold Critics Right?

By and large, the voices of Wall Street are now openly telling the public to dump gold. Forbes reports:

“The sentiment around gold has been diminishing since April, when billionaire investor George Soros indicated that gold was no longer a safe haven and the smart money was getting out. The shadow over gold has continued through this month, when Goldman Sachs’ head of commodities research said gold was a ‘slam dunk’ sell and headed for $1,050 an ounce.”

Goldman Sachs isn’t the only large investment bank advising the public to rid their portfolios of the yellow m

Bart Chilton: "We are the 'posse' trying to track down banks"

Posted: 17 Oct 2013 02:36 AM PDT

Bart Chilton: "We are the 'posse' trying to track down banks"

This 56-second CNBC video clip was posted on the thomsonreuters.com Internet site yesterday.  It's too bad that the CFTC can't/won't do anything about the outrageous long-side corner in gold by JPMorgan, and the short-side corners in silver, platinum and palladium held by JPMorgan Chase and two other U.S. banks.

I thank Washington state reader S.A. for bringing this video clip to my attention...and now to yours.  [Note to Bart: Get a haircut!]

Bernanke won't have to testify in A.I.G. case—for now

Posted: 17 Oct 2013 02:36 AM PDT

Bernanke won't have to testify in A.I.G. case—for now

Federal Reserve Chairman Ben Bernanke does not have to testify in the multibillion-dollar lawsuit by the former chief of American International Group against the United States over the insurer's 2008 bailout, a federal appeals court said on Wednesday.

The ruling, from the U.S. Court of Appeals for the Federal Circuit, overturned a lower court decision from July that said Bernanke should submit to a deposition by lawyers for former AIG CEO Maurice "Hank" Greenberg.

Deposing Bernanke while he is in office could disrupt "significant" government activities, the panel said.

This Reuters piece was posted on the cnbc.com Internet site after the markets closed in New York yesterday...and my thanks go out to West Virginia reader Elliot Simon for sharing it with us.

Sprott's Thoughts: Rick Rule -- Are Gold Critics Right?

Posted: 17 Oct 2013 02:36 AM PDT

Sprott's Thoughts: Rick Rule -- Are Gold Critics Right?

By and large, the voices of Wall Street are now openly telling the public to dump gold. Forbes reports:

“The sentiment around gold has been diminishing since April, when billionaire investor George Soros indicated that gold was no longer a safe haven and the smart money was getting out. The shadow over gold has continued through this month, when Goldman Sachs’ head of commodities research said gold was a ‘slam dunk’ sell and headed for $1,050 an ounce.”

Goldman Sachs isn’t the only large investment bank advising the public to rid their portfolios of the yellow metal. As Bloomberg reports, Morgan Stanley expects that “Bullion will average $1,313 an ounce in 2014, down from $1,420 forecast for this year.”

And that’s to be the first of five years of lower gold prices! “Bullion will average lower every year through 2018,” says the write-up on Morgan Stanley’s forecast.

Rick's comments on this were posted in yesterday's edition of Sprott's Thoughts...and it's worth reading.

Mark Mahaffey: Why gold production is going to go to zero

Posted: 17 Oct 2013 02:36 AM PDT

Mark Mahaffey: Why gold production is going to go to zero

Without much higher gold prices the gold mining industry is dead, Hinde Capital co-founder and Chief Financial Officer Mark Mahaffey writes this week, noting that the shares of many gold mining companies are down as much as 90 percent because the cost of production is higher than the metal's declining price.

On the other hand, if the world continues to find a piece of paper labeled "gold" as useful and reliable as the metal itself, and if the gold mining industry concurs in that judgment and has no clue about the monetary nature of its product and the surreptitious suppression of its price by Western central banks, who needs the gold mining industry? The paper industry will substitute just fine.

The headline is a bit more than misleading, as almost all the companies to which he refers are non-producing resource companies that may or may not have the resources they claim...all hat and no cattle, if you like.  It's not surprising that their market caps have vanished.  But based on this, it's a good bet that the Cambridge House Resource Conference in Vancouver this coming January could be a disaster in the making.  I thank Chris Powell for wordsmithing the first two paragraphs of introduction.  Despite my comments, it's worth reading, but keep its obvious shortcomings in mind as you do.

For shagun: Indian Jewellers to lift ban on gold coins

Posted: 17 Oct 2013 02:36 AM PDT

For shagun: Indian Jewellers to lift ban on gold coins

Jewellers have decided to lift a self-imposed ban and sell gold coins in the Diwali season.

"Gold coins are not bought for investment but are rather seen as shagun and given as gifts. So we have decided to temporarily lift the ban on sale of gold coins for Dhanteras and Diwali," said Ashok Minawala, board member at the All-India Gems and Jewellery Trade Federation.

The federation, which represents over three lakh players including jewellery retailers, manufacturers, wholesalers and exporters, had in July asked its member jewellers not sell gold coins and bars to help contain the current account deficit (CAD).

However, jewellers are now convinced they can go back to selling gold coins.

This short story was posted on the indianexpress.com Internet site early this morning IST...and it's certainly worth your time.  I thank reader M.A. for finding it for us.

Central bank and hedge fund bear raids push gold from West to East, Rickards says

Posted: 17 Oct 2013 02:36 AM PDT

Central bank and hedge fund bear raids push gold from West to East, Rickards says

Central bank and hedge fund bear raids have knocked gold futures prices down in the West only to increase demand for real metal in Asia, fund manager and geopolitical strategist James G. Rickards tells Bloomberg News in a video interview this week.

This 5:09 minute video clip was posted on the goldsilver.com Internet site on Tuesday...and I found it embedded in a GATA release yesterday.  It's a must watch. [Note to James: Get a hair cut!]

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