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Wednesday, October 2, 2013

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Gold World News Flash 2

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Gold recovers half of yesterday's $50 plunge

Posted: 02 Oct 2013 03:46 PM PDT

Gold rallied early Wednesday and rose back above $1300 as world stock markets slipped and the US government shutdown spread to new departments.

Gold/silver investor uncertainty to grow in the next 17 days - Phillips

Posted: 02 Oct 2013 12:10 PM PDT

With both sides of the US Congress and Senate not backing off, Julian Phillips reckons over the next 17 days, investor uncertainty is likely to grow which will favour gold.

India's Q2 gold import volumes plunged 72% y/y, 81% q/q : Ministry of Finance

Posted: 02 Oct 2013 10:38 AM PDT

In accordance with the data released by the Indian Finance Ministry, the gold imports by the country fell drastically during the quarter ended September when compared with the previous quarter and the corresponding quarter a year ago.

Gold rallies, but pullback to $1,050 needed to clear Longs

Posted: 02 Oct 2013 10:35 AM PDT

The best-attended LBMA annual conference to date, its final session saw four leading figures from the bullion market agree that $1,050 per ounce is a "key level" for gold.

Italy respects its gold reserves

Posted: 02 Oct 2013 09:54 AM PDT

A few months ago the World Gold Council suggested the Banc d'Italia use its gold reserves as collateral for their sovereign debt. But this doesn't look like an option following a speech by Salvatore Rossi, director general of the Italian central bank.

LBMA consensus: Outlook for gold positive despite short term nervousness

Posted: 02 Oct 2013 09:40 AM PDT

Consensus was that gold would go higher in the medium and long term and prices over $2,000/oz were cited as a strong possibility. Central banks and many participants emphasised that gold's importance was as a store of value

Corvus Gold Continues to Expand Main Sierra Blanca Bulk Tonnage Gold Deposit from Surface at North Bullfrog

Posted: 02 Oct 2013 09:25 AM PDT

Vancouver, B.C……..Corvus Gold Inc. ("Corvus" or the "Company") – (TSX: KOR, OTCQX: CORVF) announces results from eight additional reverse circulation (RC) holes drilled on the flanks of the existing Sierra Blanca deposit (Figure 1). The potential low strip ratio of the project is emphasized as several of the reported holes encountered mineralization starting at or near surface, including Hole NB-13-234 on the northern flank of the Sierra Blanca ridge which encountered 117 metres of continuous mineralization from surface. These results connect the mineralization in the main Sierra Blanca pit area with that in the new high-grade Yellowjacket and North Sierra Blanca Zones. These results are anticipated to favourably affect the design of the potential higher grade starter pit.

Holes NB-13-233 (47.2m @ 0.36 g/t gold), NB-13-238 (41.1m @ 0.39 g/t gold), NB-13-239 (39.6m @ 0.21g/t gold), and NB-13-240 (47.2m @ 0.26 g/t gold) encountered bulk tonnage/alteration associated low-grade oxide mineralization typical in this part of the deposit. These additional zones of mineralization both strengthen the Company's confidence in the existing estimated resource and expand the area of known mineralization. It is anticipated these new results should have a favourable effect on the new resource estimate to be calculated following the 2013 drill program. In addition, NB-13-238 encountered a mineralized structure (12.2m @ 0.8 g/t gold) on the western flank of the ridge which warrants follow-up core drilling in search of other Yellowjacket-style high-grade veins to the west.

Table 1: Significant intercepts* from North Sierra Blanca RC holes.

Hole ID
From (metres)
To
(metres)
Interval (metres)
Gold (g/t)
Silver (g/t)
NB-13-233
86.9
134.1
47.2
0.36
1.34
Including
93.0
114.3
21.3
0.46
1.50
143.3
166.1
22.9
0.42
1.43
239.3
313.9
74.7
0.41
0.67
NB-13-234
0.0
117.3
117.3
0.23
1.08
128.0
152.4
24.4
0.25
1.01
164.6
230.1
65.5
0.30
0.99
NB-13-235
35.0
42.7
7.6
0.25
0.88
108.2
109.7
1.5
0.09
50.30
123.4
125.0
1.5
0.13
100.00
NB-13-236
No significant intercepts
NB-13-237
32.0
68.6
36.6
0.17
0.79
NB-13-238
1.5
42.7
41.1
0.39
0.77
Including
3.0
15.2
12.2
0.77
1.13
50.3
73.2
22.9
0.15
0.44
77.7
102.1
24.4
0.19
0.48
126.5
179.8
53.3
0.19
0.44
NB-13-239
0.0
39.6
39.6
0.21
0.63
134.1
158.5
24.4
0.14
0.21
NB-13-240
10.7
57.9
47.2
0.26
0.76

*Intercepts are calculated with 0.1g/t gold cutoff and up to 3 metres of internal waste. Assuming that the mineralization is roughly stratiform in character the intercepts are approximately true thickness. All holes are vertical.

Holes NB-13-235, 236 and 237 have delineated a narrow, NE-trending structural block where the favourable Middle Sierra Blanca tuff unit has been removed by erosion and only limited mineralization is developed. However, the two high-grade silver intercepts in NB-13-235 could indicate the presence of Yellowjacket-style high-grade vein mineralization on the margin of this block (Table 1).

Jeff Pontius, Chief Executive Officer, stated: "The lateral continuity of the bulk tonnage oxide mineralization at North Bullfrog reflects the presence of a significant mineralizing system. The fact that we continue to hit new mineralized structures over and over again, many with potential for new high-grade vein discoveries, confirms that we have really only begun to scratch the surface with our first systematic high-grade focused drilling campaign. North Bullfrog is demonstrating significant expansion potential for both the large, at surface, low-grade system and high-grade Bullfrog-type systems, all with anticipated high heap leach recoveries."


Figure 1: Location of new reverse circulation drill holes at Sierra Blanca North. Red collars indicate assays reported in Table 1. Blue collars are holes that have been drilled but have assays pending. "SB North" indicates the north ridge of Sierra Blanca.

North Sierra Blanca Target

The objective of the 2013 RC drill program at North Sierra Blanca is to map the distribution of higher grade, disseminated mineralization which could augment the potential production from the proposed Yellowjacket high-grade starter pit area of the deposit. In addition, intersections of stockwork veining in the RC drilling has provided targets for follow-up core drilling to look for additional high-grade Yellowjacket-style vein systems. This 100 metre grid spaced program will also provide important geologic information to aid the interpretation of the geophysics data for the definition of other areas with high potential for high-grade mineralization for future drill testing. The mineralization in NB-13-238 represents another area with near surface material with grades approaching 1 g/t gold and could be the precursor of another Yellowjacket-style system.

About the North Bullfrog Project, Nevada

Corvus controls 100% of its North Bullfrog Project, which covers approximately 70 km² in southern Nevada just north of the historic Bullfrog gold mine formerly operated by Barrick Gold Corporation. The property package is made up of a number of leased patented federal mining claims and 758 federal unpatented mining claims. The project has excellent infrastructure, being adjacent to a major highway and power corridor. The Company's independent consultants completed a robust positive Preliminary Economic Assessment on the existing resource in December 2012.

The project currently includes numerous prospective gold targets, with four (Mayflower, Sierra Blanca, Jolly Jane and Connection) containing an estimated Indicated Resource of 15 Mt at an average grade of 0.37 g/t gold for 182,577 ounces of gold and an Inferred Resource of 156 Mt at 0.28 g/t gold for 1,410,096 ounces of gold (both at a 0.2 g/t cutoff), with appreciable silver credits. Mineralization occurs in two primary forms: (1) broad stratabound bulk-tonnage gold zones such as the Sierra Blanca and Jolly Jane systems; and (2) moderately thick zones of high-grade gold and silver mineralization hosted in structural feeder zones with breccias and quartz-sulphide vein stockworks such as the Mayflower and Yellowjacket targets. The Company is actively pursuing both types of mineralization.

A video of the North Bullfrog project showing location, infrastructure access and 2010 winter drilling is available on the Company's website athttp://www.corvusgold.com/investors/video/. For details with respect to the assumptions underlying the current resource estimate and Preliminary Economic Analysis, see the technical report entitled "Technical Report and Preliminary Economic Assessment for the Mayflower and North Mine Areas at the North Bullfrog Project, Bullfrog Mining District, Nye County, Nevada" dated December 6, 2012 and available under the Company's profile at www.sedar.com or on the Company's website at www.corvusgold.com.

Qualified Person and Quality Control/Quality Assurance

Jeffrey A. Pontius (CPG 11044), a qualified person as defined by National Instrument 43-101, has supervised the preparation of the scientific and technical information (other than the resource estimate) that form the basis for this news release and has approved the disclosure herein. Mr. Pontius is not independent of Corvus, as he is the CEO and holds common shares and incentive stock options.

Mr. Gary Giroux, M.Sc., P. Eng (B.C.), a consulting geological engineer employed by Giroux Consultants Ltd., has acted as the Qualified Person, as defined in NI 43-101, for the Giroux Consultants Ltd. mineral resource estimate. He has over 30 years of experience in all stages of mineral exploration, development and production. Mr. Giroux specializes in computer applications in ore reserve estimation, and has consulted both nationally and internationally in this field. He has authored many papers on geostatistics and ore reserve estimation and has practiced as a Geological Engineer since 1970 and provided geostatistical services to the industry since 1976. Both Mr. Giroux and Giroux Consultants Ltd. are independent of the Company under NI 43-101.

The work program at North Bullfrog was designed and supervised by Russell Myers (CPG 11433), President of Corvus, and Mark Reischman, Corvus Nevada Exploration Manager, who are responsible for all aspects of the work, including the quality control/quality assurance program. On-site personnel at the project log and track all samples prior to sealing and shipping. Quality control is monitored by the insertion of blind certified standard reference materials and blanks into each sample shipment. All resource sample shipments are sealed and shipped to ALS Chemex in Reno, Nevada, for preparation and then on to ALS Chemex in Reno, Nevada, or Vancouver, B.C., for assaying. ALS Chemex's quality system complies with the requirements for the International Standards ISO 9001:2000 and ISO 17025:1999. Analytical accuracy and precision are monitored by the analysis of reagent blanks, reference material and replicate samples. Finally, representative blind duplicate samples are forwarded to ALS Chemex and an ISO compliant third party laboratory for additional quality control.

About Corvus Gold Inc.

Corvus Gold Inc. is a resource exploration company, focused in Nevada and Alaska, which controls a number of exploration projects representing a spectrum of early-stage to advanced gold projects. Corvus is focused on advancing its 100% controlled Nevada, North Bullfrog project towards a potential development decision and continuing to explore for new major gold discoveries. Corvus is committed to building shareholder value through new discoveries and leveraging noncore assets via partner funded exploration work into carried and or royalty interests that provide shareholders with exposure to gold production.

On

Right Time To Start Looking EZCORP As A Financial Services Company

Posted: 02 Oct 2013 09:15 AM PDT

EZCORP Inc. (EZPW) is now a financial services company in the making, a lot different from what was traditionally a pawnshop business that also provided payday loans. The results are attesting that the company is successfully leveraging its network of customers to expand its loan business. It's about time to start looking and valuing the business from that angle.

The stock over the last 2 years has declined by 40% while the broader market was up 40% during that time. This stock weakness, in my view, was due to the company being in this major transitional phase. Now with new geographies, businesses and channels that are outgrowing the decline in the traditional payday loans and gold businesses, the stock has room to go up to $22-25.

Opportunities like online loans or international penetration that were being overshadowed by the weakness in gold loans earlier have started to drive growth

Government Shutdown: Buy Or Sell Gold And Silver?

Posted: 02 Oct 2013 09:12 AM PDT

Government shutdown! Shouldn't this be good for the metals? I mean, doesn't this mean there will be panic, anarchy and the end of civilization as we know it?

Ok, in all seriousness, one of the reasons the metals are selling down is because many traders are cashing in on short-term gains that we had when the most recent bottom was found in gold around $1,180 and silver around $18. They are locking in profits. Technically, both have fallen through support. Fundamentally, people are seeing this shutdown as a potential spark that could lead to the government finally cutting spending in the long-term. Less spending=less debt=bad for gold and silver. Short-term traders like it when it seems the U.S is on a path to being bankrupt. Long-term holders realize that is somewhat already the case and welcome this decline.

I believe you should be taking advantage of this selloff thanks to

Gold in midst of price reversal on Wednesday

Posted: 02 Oct 2013 09:08 AM PDT

Commodity Trader

Last Chance To Buy Cheap Gold Mining Stocks Before They Double In 2014?

Posted: 02 Oct 2013 09:02 AM PDT

Those who have read my previous articles know that there's no question in my mind that gold will set a new all-time high in 2014. There's also no question in my mind that gold mining stocks will double in value from their June lows to their eventual peaks next year.

The only question I have is whether now is the last chance to buy cheap gold mining stocks before they double in 2014. I think it is and have acted accordingly. Even if I'm wrong in the short term, it shouldn't matter in the end.

The following is the one-year chart for senior gold mining fund (GDX). The red line is the 50-day moving average and the green line is the 200-DMA.

(click to enlarge)

GDX rebounded 40% within two months of its June low and has broken through its 50-day moving average three times now. Barring any further manipulation

Silver Price History: The Coming End To The Manipulation

Posted: 02 Oct 2013 09:00 AM PDT

Silver Price History: The Coming End To The Manipulation

Silver price history is a long story of manipulation. Yet, the irony is that it is cheap! silver is an important strategic commodity as well as a form of money. The major events impacting silver price history have been: 1. The U.S. decision to remove silver from silver coins and sell the remaining stockpile into [...]

The post Silver Price History: The Coming End To The Manipulation appeared first on Silver Doctors.

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Gold continues lower as technical sell..

Posted: 02 Oct 2013 08:33 AM PDT

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Gold plummets on technical selloff, U...

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Gold Price Analysis - Oct. 2, 2013

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Why Are They Trying So Hard To Demonize Gun Owners?

Posted: 02 Oct 2013 08:00 AM PDT

Why Are They Trying So Hard To Demonize Gun Owners?

There is an all-out effort to demonize gun owners in the United States today.  Those that own guns are repeatedly portrayed as being uneducated, mentally deficient racists in the mainstream media.  No evidence is ever produced to actually back up those claims.  Gun owners regularly make lists of "potential terrorists" in official government documents, and [...]

The post Why Are They Trying So Hard To Demonize Gun Owners? appeared first on Silver Doctors.

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Silver price erases ALL of yesterday’s 6% smash – closes in on $22

Posted: 02 Oct 2013 07:58 AM PDT

Sometimes you've just got to sit back and laugh at the state of these 'markets'. So yesterday gold got smashed well below $1300 – only to take back ALL those loses today. And silver got...

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A pause in the safe-haven bid for gold?

Posted: 02 Oct 2013 07:29 AM PDT

The market does not think that the U.S. government shutdown will last long and has sold gold and bought riskier assets. However, a last-minute debt deal could raise the safe-haven bid for gold.

Bank of Panama Reopens Without Incident

Posted: 02 Oct 2013 07:00 AM PDT

Bank of Panama Reopens Without Incident

Last Friday the Bank of Panama (BancoNacional) announced a 5-day bank holiday, shutting down all banking systems ahead of the end of the month Panamanian payday, completely shuttering all wire transactions as well as ATM cards. Thankfully, it appears that Cyprus Redeux is not in progress, as BancoNacional reportedly re-opened Tuesday without further incident.   [...]

The post Bank of Panama Reopens Without Incident appeared first on Silver Doctors.

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Gold price back above $1300 after yesterday’s clockwork like gold-smash whilst the Dollar breaks below 80

Posted: 02 Oct 2013 06:48 AM PDT

UPDATE: Gold now trades $1320 – erasing almost ALL of yesterday’s shenanigans: Gold $ (1 hour): (click for sharper image)   The obvious gold smashes are getting more and more...

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Doc’s Deal: San Fran Silver Eagles As Low As $2.99 Over Spot!

Posted: 02 Oct 2013 06:39 AM PDT

Rome, Dollar Debasement & Emperor Obama

Posted: 02 Oct 2013 06:19 AM PDT

Behold the mighty Dollar of Emperor Obama, sat alongside the currency debasement of ancient Rome...
 
US DOLLARS still rule the monetary world, writes Adrian Ash at BullionVault. So too did the Roman Denarius long ago, when Rome was in charge and its emperors chose who lived and died.
 
Hence the best slide, perhaps, of this week's London Bullion Market Association conference in Rome. It shows debasement in action, twice.
 
This slide certainly got the biggest laugh. But long-independent analyst Andy Smith's view of the Dollar – and the gold price as a result – was very serious.
 
"Inflation is neither sufficient nor necessary for gold prices to go higher," he explained in the closing day's panel debate.
 
"It's about psychology," Smith went on, saying that the current US outlook – of a shrinking tax base, but ever-more government dependents "who also vote" – will undermine confidence in the Dollar just as surely as Roman emperors cut the quantity of silver in the empire's Denarius coin. Faith is being debased just the same.
 
"Having failed to create inflation [to devalue US debts], asset theft will be next," he warned the conference (and again, to some but less laughter). And alongside inflation, savers will suddenly meet a heap of investment fears, over counter-party risk, higher taxation, and the return of capital, rather than the return on it.
 
Now, long-time gold investors and traders well know Mr.Smith's bearish stance of a decade ago (scroll near the end of that page). But it's worth noting, perhaps, that the pre-modernized, non-Western environments in which then he could only see gold appealing, now apply to his outlook for the rich West, most especially the States.
 
"Indians are eminently right to buy gold," he told the LBMA on Tuesday, "because they distrust government. We're moving to an India-type scenario in the West [and] we will learn very fast how sophisticated the Indians have been to buy gold."
 
Our own Miguel Perez-Santalla here at Bullionvault told a similar story last month about the shock of Lehmans' collapse. Because it showed how fragile and unsophisticated the modern US economy really is.
 
In sum? According to Andy Smith the empire cannot hold, not for savers and investors without gold. Because "more debtors than creditors vote." Just ask Emperor Obama.

LBMA Consensus: Outlook for Gold Positive Despite Short Term Nervousness

Posted: 02 Oct 2013 06:09 AM PDT

LBMA Consensus: Outlook for Gold Positive Despite Short Term Nervousness

Yesterday, on the final day of the two and a half day LBMA gold conference, there was a consensus among participants and delegates that while there was a risk of short term weakness in gold, the medium and long term outlook is very positive due to the very uncertain economic outlook. $1,050/oz was identified as [...]

The post LBMA Consensus: Outlook for Gold Positive Despite Short Term Nervousness appeared first on Silver Doctors.

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LBMA Consensus: Outlook for Gold Positive Despite Short Term Nervousness

Posted: 02 Oct 2013 06:01 AM PDT

gold.ie

LBMA Consensus: Outlook for Gold Positive Despite Short Term Nervousness

Posted: 02 Oct 2013 03:58 AM PDT

$1,050/oz was identified as the likely level of support if gold weakens again in the short term – especially if gold falls below support at $1,200/oz. This was a possible scenario outlined in the LBMA conference closing session chaired by Dr Brian Lucey of Trinity College Dublin. 

Today's AM fix was USD 1,293.75, EUR 955.93 and GBP 797.92 per ounce.
Yesterday's AM fix was USD 1,332.25, EUR 983.14 and GBP 819.85 per ounce

Gold fell $37.90 or 2.85% yesterday, closing at $1,289.90/oz. Silver slid $0.49 or 2.26%, closing at $21.18. Platinum fell $19.40 or 1.4% to $1,379.40/oz, while palladium dropped $5.03 or 0.7% to $716.47/oz.

Gold bounced back from an 8 week low in London this morning as investors mulled over the U.S. government shutdown, debt ceiling deadline of Oct. 17th and how it will affect the recovering economy and the Fed’s need to taper.

A recent Bloomberg survey of economists are now leaning to December as the first time the Fed will cut its $85 billion/month bond purchases. Gold is still being sought out as a safe haven although physical demand from India, the world’s largest consumer, is sluggish due to ongoing Sharadhs, which is an inauspicious fortnight in Hindu mythology for making new purchases.

Yesterday, on the final day of the two and a half day LBMA gold conference, there was a consensus among participants and delegates that while there was a risk of short term weakness in gold, the medium and long term outlook is very positive due to the very uncertain economic outlook.

$1,050/oz was identified as the likely level of support if gold weakens again in the short term – especially if gold falls below support at $1,200/oz. This was a possible scenario outlined in the closing session chaired by Dr Brian Lucey of Trinity College Dublin.

However, there was a consensus that gold would go higher in the medium and long term and prices over $2,000/oz were cited as a strong possibility.

Central banks and many participants emphasised that gold’s importance was as a store of value and vital diversification in a foreign exchange, savings and investment portfolio.

The annual conference was organised by the LBMA. Headquartered in London and with a global membership base, the London Bullion Market Association or LBMA is the international trade association that represents the market for gold and silver bullion. Its members include the majority of the central banks that hold gold, private sector investors, mining companies, producers, refiners and fabricators.

This year the LBMA welcomed 727 people from 316 companies, a new conference record.

China’s Gold Fever Rises, Showing No Signs of Abating As “Golden Week” Holiday Kicks Off

Posted: 02 Oct 2013 02:29 AM PDT

"You don't need me to paint a picture of what happened yesterday."

¤ Yesterday In Gold & Silver

All was calm in Far East trading on their Tuesday.  That state of affairs lasted until the dollar index dropped below the 80.00 mark shortly before the London open. The tiny rally that resulted from that, turned out to be the high of the day, and the gold price drifted quietly lower until precisely 1 p.m. BST in London, which was 20 minutes before the Comex open in New York.

The then high-frequency traders spun prices lower and the roof immediately caved in as sell stops were hit.  Most of the damage was done by within the first 40 minutes, but gold continued to sell off slowly from there, hitting its low tick [$1,281.70 spot] at 12:45 p.m. EDT.  The subsequent rally, such as it was, didn't get far.

Gold closed at $1,287.50 spot, down $40.40 on the day.  Net volume was very heavy at 220,000 contracts, with 90 percent of that occurring after the London open.

Here's the New York Spot Gold [Bid] chart on its own.

Of course silver, JPMorgan's biggest problem child, wasn't spared either.  After getting turned back at the $22 spot level once again going into the London open, the silver price got the same treatment as gold, although silver's low tick of $20.63 in the December contract came at 10:45 a.m. EDT, and not at 12:45 p.m EDT as it did for gold.

The silver price didn't do much after that until gold began to rally at 12:45 p.m., and then away silver went to the upside.  The rally into the 1:30 p.m. Comex close had all the hallmarks of a short covering rally, and after that close, silver drifted higher, but then got sold down into the 5:15 p.m. electronic close just like gold.

Silver had an intraday moved of around $1.35, over five percent.

Silver finished the Tuesday trading session at $21.165 spot, which was down 54 cents from Monday, but well off its low.  Net volume was was on the heavy side at 56,000 contracts.  I was expecting a bigger volume number than that.

Here's the New York Spot Silver [Bid] chart on its own.

The platinum and palladium price charts look similar, so I'll spare you the details, which you already know.

The dollar index closed on Monday afternoon in New York at 80.22; and minutes after 10 a.m. Hong Kong time on their Tuesday morning, had reached its high of 80.31, and it was all down hill into the London open.  The low tick of 79.87 came about ten minutes before London began trading, and after that the dollar index chopped higher into the New York close.  The index finished the day at 80.18 which was down 4 basis points from Monday's close.

Of course there was no correlation between the dollar index and the precious metal prices once again.  Normally there certainly would be some if there was a free market, but neither the dollar index nor the precious metals exist in that sort of pricing environment.

The gold stocks gapped down over 2 percent at the open, and then chopped sideways for the remainder of the day.  The HUI finished down 2.46%.

It was the same for the silver stocks, and Nick Laird's Intraday Silver Sentiment Index closed down 2.56%.

The CME's Daily Delivery Report for "Day 3" of the October delivery month showed that 59 gold and 2 silver contracts were posted for delivery tomorrow within the Comex-approved depositories.  In gold, it was Canada's Bank of Nova Scotia that issued 47 contracts, and HSBC USA and JPMorgan stopped 42 and 17 contacts respectively.  The link to yesterday's Issuers and Stoppers Report is here.

There were no reported changes in GLD yesterday, and as of 10:07 p.m. EDT, there were no reported changes in SLV either.

Surprisingly enough, the U.S. Mint had another sales report.  They sold 500 ounces of gold eagles; 1,500 one-ounce 24K gold buffaloes; and 187,000 silver eagles.

Monday was the third day in a row where there was very little in/out activity at the Comex-approved depositories.  In gold, there were 3,215 troy ounces shipped out, and in silver they reported shipping out 130,780 troy ounces of the stuff.  Nothing was reported received in either metal.

I've got a couple of very interesting charts that Nick Laird sent my way after David Franklin wrote about palladium in Sprott's Thoughts yesterday.  This is the actual data that Nick uses to compute his "Days to Cover Short Positions" chart that I post in my column on Saturdays, and the monthly "Bank Participation Report".

Here's this "Days to Cover" chart from last week's Commitment of Traders Report, and the data for platinum and palladium in this particular chart, represent the last data points on the far right of the platinum and palladium charts posted further down.

This first chart is a 13-year "Days to Cover Short Positions" for palladium, and shows the palladium price [in black] against the short positions of the Big 4 and Big 8 traders in the Comex futures market over the same time period.  The short positions of each group are shown in two shades of blue.  Up until mid-2003 a short position of 10 days of world palladium production by the Big 4 and Big 8 short traders combined was a rarity, and look what the price was doing at the time.  That's called a free market in action.

But look what has happened since.  To prevent prices from rising as the speculators wishing to go long enter the market driving prices higher, they are now met by the sellers of last resort/not-for-profit sellers, and that has prevented a repeat of the big price rally we had in 2000/01.  This situation has become more grotesque as the years have gone by.  But starting in late 2012, the situation has gone from simply grotesque to the obscene.

It is a recognized and acknowledged fact both inside and outside the platinum and palladium industry [read the Sprott piece linked above] that these metals are going to be in a deficit position for years, if not decades, to come.  So the speculators, both small and large, are piling in on the long side, only to be met by the Commercial traders as short sellers of last resort; in this case the major New York bullion banks and Wall Street investment firms, including Canada's beloved Bank of Nova Scotia.

About a year ago, the Big 8 were short about 45 days of world palladium production.  As of last Friday's COT Report they were now short 127 days of world production.

Here's the platinum "Days to Cover Short Positions" going back 13 years as well.  As of last Friday's COT Report, the Big 4 and Big 8 were short 73 and 103 days of world platinum production respectively, the last data point on the right side of this chart.

I'll have the corresponding charts for gold and silver in tomorrow's missive.

I have a decent number of stories today, but quite a few less than yesterday, so I hope you can find the time to read the ones that interest you the most.

¤ Critical Reads

Labor Department: No Unemployment Data During Shutdown

The Labor Department has no plans to release the closely watched U.S. monthly jobs report on Friday in case of a partial government shutdown that lasts through the week.

A Labor official with direct knowledge said Monday that there wouldn't be enough staffers on site to compile the jobs report. The official spoke on condition of anonymity because he wasn't authorized to discuss the matter publicly.

A document the department filed Friday said its Bureau of Labor Statistics, which prepares the jobs data, would have only three employees working in case of a partial government shutdown.

This news item was posted on the cnsnews.com Internet site just after the markets closed on Monday...and I thank reader M.A. for today's first story.  By the way, there's also a chance that there won't be a COT Report or Bank Participation Report on Friday, either.  I have more on that in The Wrap.

Bank Secrets Exposed in E.U. Credit-Derivatives Investigation

European Union regulators inadvertently sent confidential data to 13 of the world’s biggest lenders as part of an antitrust complaint in an investigation of the credit derivatives industry.

The European Commission said a limited amount of sensitive information was accidentally left in the documents by law firms representing companies in the probe. After the revelation was discovered, recipients including Goldman Sachs Group Inc. and JPMorgan Chase & Co. were told they must promise to destroy the information without reading it.

“The access was caused by mistakes committed by some members of IT departments of some law firms who represent companies in this investigation,” said Antoine Colombani, a spokesman for Joaquin Almunia, the EU’s antitrust chief. “The commission declines any responsibility if document owners” use inappropriate IT software to redact sensitive information, he said.

It just boggles the mind, dear reader.  This Bloomberg piece was posted on their Internet site early yesterday morning MDT...and it's the first contribution of the day from Roy Stephens.  It's worth reading.

Russia doubts mid-November date for Syria peace talks

Russia expressed doubt on Tuesday that Western nations can persuade Syrian opposition representatives to take part in an international peace conference in time for it to take place in mid-November.

The doubts of Damascus's most important ally followed remarks in which the international envoy for Syria, Lakhdar Brahimi, said the target date of mid-November was "not 100 percent certain" and cited disunity among rebel forces.

"Until recently we hoped our Western partners, who undertook to bring the opposition to the conference, could do it quite quickly, but they were unable to do it quickly, and I don't know whether they will be able to do so by mid-November," Russian Foreign Minister Sergei Lavrov said.

This Reuters article was posted on their website during the New York lunch hour yesterday...and my thanks go out to Roy Stephens once again.

'Putin's Syria role deserving of Nobel Peace Prize'

President Putin should get the Nobel Peace Prize for his moves to resolve the Syrian crisis, according to a group of Russian activists and political scientists who have indicated that they are officially proposing the president’s nomination.

One of the main sponsors of the move, State Duma MP Iosif Kobzon, told reporters that in his view Putin deserved the prize much more than the 2009 laureate, US President Barack Obama.

“Barack Obama is the man who has initiated and approved the United States’ aggressive actions in Iraq and Afghanistan, now he is preparing for an invasion into Syria. He bears this title nevertheless. Our president, who tries to stop the bloodshed and who tries to help the conflict situation with political dialogue, is in my view more worthy of this high title,” the Interfax news agency quoted Kobzon as saying.

This Russia Today article was posted on their website early yesterday morning Moscow time...and it's the third and final offering from Roy Stephens.

 

Barclays shuts down U.A.E. bank accounts

Barclays has started closing the accounts of some of its retail customers in the UAE, just weeks after the lender announced that it was selling off its local retail arm.

Arabian Business understands that around 500 accounts have now been frozen.

Business and personal banking customers said that they had been telephoned by the lender on Tuesday morning, and informed that their accounts were being frozen.

"I was asked by the bank to come into the Emaar Square headquarters this morning," one of the customers, a British expatriate, who preferred not to be named, said. "They told me my account was being closed, but refused to give me a reason why.

This short, but very interesting read, was posted on the arabianbusiness.com Internet site yesterday afternoon local time...and I thank reader 'David in California' for sending it my way.

Three King World News Blogs

1.  Robert Griffiths: "Top Strategist Says U.S. Responsible For Gold Take Down".  2. Andrew Maguire: "Gold Plunge, Who's Responsible and What's Next".  3. William Kaye: "Man Who Predicted Gold Take Down Tells Investors What's Next".

[Although I post all of Eric King's interviews, I wish to go on the record as saying that I don't necessarily agree with everything that's said by some of his guests. - Ed]

 

Bart Chilton to Commodities Traders: You Are On Your Own

While the government is by and large shut down, the various market "regulators" have been quite vocal in reiterating that they will stay open. After all - in a world in which the capital markets are the only policy (not to mention confidence boosting) vehicle left, one can't have a situation in which mom and pop investors lose faith in "free, efficient and unbroken markets" and stay out. The SEC went so far as to post the following announcement on its site: "The SEC will remain open and operational in the event the federal government undergoes a lapse in appropriations on October 1."

However, this appears to be the case only for stocks.

For commodities, such as gold and silver which both got pummeled around the usual time of the London fixing as reported previously, it is a different matter entirely. Bart Chilton, in this email exchange with a reader, explains why investors in non-stock instruments are as of this moment, largely on their own.

This commentary posted on the Zero Hedge website yesterday is certainly worth reading...and I thank Washington state reader S.A. for being the first one through the door with this story.

Commodity benchmarks could fall under U.K. regulatory scrutiny

Key commodities benchmarks could be subject to UK market abuse rules, a British financial markets regulator said on Tuesday, with stiff fines or prison sentences possible as punishments for the manipulation of prices.

Global financial markets have come under increasing scrutiny from regulators following the scandal around the manipulation of interest rates -- namely the London Interbank Offered Rate (Libor).

"After the Libor scandal, we started to look at various benchmarks," Don Groves, technical specialist at the Financial Conduct Authority, told a gold industry conference in Rome.

This short, but must read Reuters commentary, filed from Rome, was posted on their Internet site early yesterday afternoon EDT...and I found it hiding in a GATA release.

 

UC Berkeley explosion linked to still-high copper prices

While copper prices have come down this year, they’re still high enough to tempt thieves, and it’s copper wire-grabbing crooks who are blamed for Monday’s explosion at University of California at Berkeley.

A power generator exploded on Monday evening shortly after Berkeley was hit by a campus-wide power outage,  leading to an evacuation of the campus. On Tuesday morning, university officials said power had been restored to most buildings on the campus, and most classes will meet as scheduled today.

The university discovered last week that some copper wiring had been disturbed, but didn’t see the full extent of the problem, according to a report from the Daily Californian. The university newspaper said: “Vandals were stealing or attempting to steal copper grounding wire from an electrical system not readily visible, and the damage appears to be more extensive than initially believed.

This brief news item was posted on the marketwatch.com Internet site yesterday morning EDT...and it's courtesy of West Virginia reader Elliot Simon.

David Franklin: Palladium's Future is Bright

With all eye

Three King World News Blogs

Posted: 02 Oct 2013 02:29 AM PDT

Three King World News Blogs

1.  Robert Griffiths: "Top Strategist Says U.S. Responsible For Gold Take Down".  2. Andrew Maguire: "Gold Plunge, Who's Responsible and What's Next".  3. William Kaye: "Man Who Predicted Gold Take Down Tells Investors What's Next".

[Although I post all of Eric King's interviews, I wish to go on the record as saying that I don't necessarily agree with everything that's said by some of his guests. - Ed]

 

Bart Chilton to Commodities Traders: You Are On Your Own

Posted: 02 Oct 2013 02:29 AM PDT

Bart Chilton to Commodities Traders: You Are On Your Own

While the government is by and large shut down, the various market "regulators" have been quite vocal in reiterating that they will stay open. After all - in a world in which the capital markets are the only policy (not to mention confidence boosting) vehicle left, one can't have a situation in which mom and pop investors lose faith in "free, efficient and unbroken markets" and stay out. The SEC went so far as to post the following announcement on its site: "The SEC will remain open and operational in the event the federal government undergoes a lapse in appropriations on October 1."

However, this appears to be the case only for stocks.

For commodities, such as gold and silver which both got pummeled around the usual time of the London fixing as reported previously, it is a different matter entirely. Bart Chilton, in this email exchange with a reader, explains why investors in non-stock instruments are as of this moment, largely on their own.

This commentary posted on the Zero Hedge website yesterday is certainly worth reading...and I thank Washington state reader S.A. for being the first one through the door with this story.

Commodity benchmarks could fall under U.K. regulatory scrutiny

Posted: 02 Oct 2013 02:29 AM PDT

Commodity benchmarks could fall under U.K. regulatory scrutiny

Key commodities benchmarks could be subject to UK market abuse rules, a British financial markets regulator said on Tuesday, with stiff fines or prison sentences possible as punishments for the manipulation of prices.

Global financial markets have come under increasing scrutiny from regulators following the scandal around the manipulation of interest rates -- namely the London Interbank Offered Rate (Libor).

"After the Libor scandal, we started to look at various benchmarks," Don Groves, technical specialist at the Financial Conduct Authority, told a gold industry conference in Rome.

This short, but must read Reuters commentary, filed from Rome, was posted on their Internet site early yesterday afternoon EDT...and I found it hiding in a GATA release.

 

David Franklin: Palladium’s Future is Bright

Posted: 02 Oct 2013 02:29 AM PDT

David Franklin: Palladium's Future is Bright

With all eyes glued to the political wrangling in Washington, and the impact of the government shutdown that took effect this morning, attention has been diverted from some very bullish developments in the palladium market.

The price of the metal has struggled for direction most of this year oscillating between $650/ounce and $750/ounce amid a wider sell-off of precious metals driven by concerns about the U.S. scaling back stimulus and a struggling global economy. With a focus on market fundamentals, we believe palladium has the potential to fulfill earlier expectations of robust gains this year. Palladium has already outperformed other precious metals so far this year with gold down 20%, silver down 28% and platinum down 8%, palladium is the only bright spot appreciating by 3% on a year-to-date basis. Palladium has successfully detached itself from the other precious metals and given recent events we think this divergence will continue.

I mentioned this Sprott's Thoughts piece further up in today's column.  Of course the price of palladium, along with all the other precious metals would be materially higher already if the short sellers of last resort weren't in the market taking the short side of every futures contract placed on any Comex rally.  This piece certainly falls into the must read category

Gold Coin Buyers Wrapping up a Stingy September

Posted: 02 Oct 2013 02:29 AM PDT

Gold Coin Buyers Wrapping up a Stingy September

It’s the last day of the month, and sales of American Eagle gold bullion coins are running nowhere near the pace of early 2013, or the year-ago period.

With a day of sales left to record (today’s), the U.S. Mint has sold 27,500 American Eagle gold coins for the month, according to the mint's website.  It’s not even close. Last September’s figure was 104,000. January 2013′s was a remarkable 275,500, before a peak of 312,500 in April. Then the downtrend that bottomed in August as buyers took a vacation (21,000 coins).

Miller Tabak’s Andrew Wilkinson writes to tell clients this afternoon that sales are on track for the smallest two months in six years, which shouldn’t be surprising given August’s sales were themselves a six-year low.

This tiny story appeared on the Barron's website yesterday afternoon...and there's not much in here you don't already know, however it is worth skimming if you have the time.  But you've already read the most important bits.  It's another offering from Elliot Simon.

Texas eliminates sales tax on precious metals coins

Posted: 02 Oct 2013 02:29 AM PDT

Texas eliminates sales tax on precious metals coins

As of October 1, the sales tax levied on purchases of gold, silver and platinum bullion and numismatic coins in Texas is now eliminated. It is the first time that a state has expanded an existing sales tax exemption for gold and silver.

Previously, Texans were paying 6.25% on all precious metals purchases under $1,000, a tax that was considered especially burdensome to small investors. Gov. Rick Perry signed H.B. 78 into law on June 14.

The legislation puts precious metals on a level playing field with other investments. Proponents of the legislation had asserted the exemption would attract coin shows, auctions and other events to Texas.

This news item was posted on the mineweb.com Internet site in the wee hours of this morning...and I found it just before I hit the 'send' button on today's column.

India’s Gold Imports Seen Declining on Curbs to Contain Deficit

Posted: 02 Oct 2013 02:29 AM PDT

India's Gold Imports Seen Declining on Curbs to Contain Deficit

Gold purchases by India, the world’s largest user, may fall 5.3 percent this year as the government curbs imports to contain a record current-account deficit.

Inbound shipments are seen at 800 metric tons in the 12 months through March, compared with 845 tons a year earlier, Economic Affairs Secretary Arvind Mayaram told reporters in New Delhi today. Falling bullion imports may help the nation cap the current account deficit at $70 billion this year, he said.

Gold imports were 58.37 tons between July 1 and Sept. 25 compared with 335.31 tons in the three months ended June 30, the finance ministry said in a statement today. The declining trend will continue, it said.  Purchases may not be more than 150 tons in the six months through December, according to Bachhraj Bamalwa, a director at the All India Gems & Jewellery Trade Federation.

This Bloomberg story, filed from New Delhi, was posted on their Internet site very early yesterday morning Denver time...and it's the first offering of the day from Manitoba reader Ulrike Marx.

India's October gold imports seen picking up sharply

Posted: 02 Oct 2013 02:29 AM PDT

India's October gold imports seen picking up sharply

Shipments on October could rise sharply to 30 tonnes on month under the new rule, but still half of the usual monthly average, as exporters await supplies to process pending orders.

"We are starving for supplies," said Parekh, adding exporters need to complete orders taken from U.S. clients ahead of the peak Christmas season.

This Reuters story is similar in many ways to the Bloomberg story above, but with a slightly different spin.  It was filed from New Delhi/Mumbai yesterday evening IST...and is the second offering in a row from Ulrike Marx. Of the two, I'd pick this one as the must read.

Swiss gold refiner Metalor delays Singapore launch

Posted: 02 Oct 2013 02:29 AM PDT

Swiss gold refiner Metalor delays Singapore launch

Swiss gold refiner Metalor Technologies has postponed the full-scale launch of its refinery in Singapore to next year due to a delay in construction, a company executive told Reuters.

The refinery is set to be first in Singapore, which is trying to become a gold trading hub, and when fully running is expected to have a combined manufacturing and refining capacity of 150 tonnes per year.

The $15 million refinery was initially expected to be fully operational by November but will now be opened only in January or February, Metalor's Singapore head Gilles Robert said.

The rest of this Reuters story, filed from Singapore, was picked up by the mineweb.com Internet site yesterday...and I thank Ulrike Marx for sharing it with us.

China's Gold Fever Rises, Showing No Signs Of Abating As ‘Golden Week’ Holiday Kicks Off

Posted: 02 Oct 2013 02:29 AM PDT

China's Gold Fever Rises, Showing No Signs Of Abating As 'Golden Week' Holiday Kicks Off

Fresh market statistics from Thomson Reuters GFMS research and exchange operator CME Group paint a remarkable portrait of Chinese demand for gold in 2013, even as the metal has seen historic price declines and volatility this year.

Despite that, trading of spot contracts on the Shanghai Gold Exchange more than doubled in the first half of 2013.

Premiums in China hit an all-time high of $56/oz. on May 13, against the 2012 average of $6.5/oz. Compare that to premiums in India, which hit $40/oz. in September, even as record import taxes of 10 percent sparked gold smuggling.  Gold imports into Hong Kong, the main conduit for gold to China, rose 162 percent from the year before, for the first seven months of 2013...and Chinese jewelry production hit a record 345 metric tons for the first half of 2013.

This news item, with lots of charts, was posted on the International Business Times website yesterday...and it's another contribution from Ulrike Marx.  It's certainly worth reading.

How China is taking over the world, one gold bar at a time

Posted: 02 Oct 2013 02:29 AM PDT

How China is taking over the world, one gold bar at a time

The year 2013 in the gold investment market will be remembered as the year of China, so we’ve produced a stunning infographic detailing China’s great golden rise to power.

In just a few months the world’s largest country will overtake India as the biggest consumer of gold and its gold market continues to break records.

Whilst it may appear that China has exploded onto the gold scene this is by no means the case. China’s ancient monetary history is well documented. They are the world’s oldest scientists when it comes to different forms of money, having being the first to experiment with paper money and different metallic standards. Therefore during an international financial crisis one would imagine that the country with the longest and most diverse monetary history would be the place to turn to for direction.

Quite a few readers sent me this story when it was first posted, but because I felt there was nothing really new in it, I didn't include it in yesterday's column.  After some sober second thought, and re-reading it more carefully, I've changed my mind.  It was posted on therealasset.co.uk Internet site on Monday...and it's definitely worth your time.  Once again I thank Ulrike Marx for bringing it to our attention.

Collapse Is In Hindsight – It Is A Matter Of Time (Part III)

Posted: 02 Oct 2013 02:19 AM PDT

We live in a world of exploding debt, unsustainable deficit spending, Quantitative Easing, corrupt politicians, and "forever" wars that benefit the political and financial elite.  We will need help to survive the collapse of failing economic and political systems.

This article is the continuation of part I (read here) and part II (read here). As introduced in the previous parts, our research of 20 different cycle theories has indicated that as of 2013 serious turmoil will reign in all markets and that the precious metals drop of this year was just the first shot across the board (courtesy: Gary Christenson). Every cycle theory we researched pointed to a coming collapse in different financial assets, varying in degree and exact timeframe. The dolldrums are becoming louder.

In our most recent update on the debt bear market, we showed in several must-read charts how every additional unit of debt based money is creating decreasingly less economic output. In the 50′s, every dollar of debt created more than 4 dollar of economic output. In this decade, the economic output is 0.08 dollar. On the highest level, it is the most important indication that the debt bubble is ripe to pop (although popping will not be a one-time event, it will probably be a process with no specific start and end date). 

Collapse – From Our Debt Addiction

Bill Bonner: (link)

"The feds decided to fight fire with fire.  To solve the debt problem, they added debt!  The genius of this plan was, we admit, not immediately obvious."

"The feds have always had one overriding goal:  to transfer money and power to themselves.  They create no wealth.  The can only get it by taking from others.  The crisis – which was nothing more than a natural market correction in an unnaturally extreme debt cycle, caused largely by the feds – gave them cover for larceny on an ever grander scale."

Egon Von Greyerz: (link)

"We have had a century of false prosperity based on printed money and credit… These four extremely shaky legs, Central bank printing, Bank leverage, Government borrowing and Derivatives manufacturing have created a world of delusional wealth and illusory prosperity.  Also, there is a total absence of moral and ethical values.  We are in the final stages of an era of extreme decadence, an era that sadly cannot and will not have a happy ending."

Dan Norcini:  (link)

"In a debt based system, more and more, larger and larger, amounts of debt have to be taken on for the economy to grow.  It is difficult to do that if consumers are afraid to spend with the same reckless abandon as they did during the boom years."

Karl Denninger:  (link)

"What Bernanke did yesterday [the no-taper caper] was guarantee a crash."

Collapse – Before or After the Next Big War?

Ernest Hemmingway:

"The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists."

Bill Holter:  (link)

"A war is necessary.  It is necessary so that fingers can be pointed to it as the reason for all things bad… Not many pay attention anyway but a war, more than anything else will distract attention to the real deal.  The real deal being that the global Ponzi scheme is collapsing."

Strauss & Howe – "The Fourth Turning:" (link)

"History offers even more sobering warnings:  Armed confrontation usually occurs around the climax of Crisis.  If there is confrontation, it is likely to lead to war.  This could be any kind of war – class war, sectional war, war against global anarchists or terrorists, or superpower war.  If there is war, it is likely to culminate in total war, fought until the losing side has been rendered nil – its will broken, territory taken and leaders captured."

Collapse – Seek Protection & Safety With Gold

Dr. Paul Craig Roberts:  (link)

"So what the Fed is doing is simply keeping the system going as long as it can.  I don't see how they can avoid a crash.  It they stop QE it's going to crash.  If they don't stop it, it's going to crash later.  So the Fed is manipulating everything to keep the system intact.  And to repeat myself, they can do that until there is a run on the dollar, and when there is a run on the dollar they lose control.  At that point (the price of) gold and silver will explode."

Robin Griffiths – Historic Fed Decision's Impact on Gold and Major Markets (link)

"The (gold) charts indicate that a capitulation sell-off has taken place, completing the bear part of a cycle still in secular uptrend.  Central banks have been trying to disrupt the bull move but they have simply ended up with nothing in their vaults.  They have lent or sold so much of the precious metal that it would take seven years of production to rebuild their reserves to the levels they were at two years ago."

Western Central Banks have supported collapsing western currencies and economies by selling off the one real asset – gold – that has no counter-party risk.  This seems less like a sensible decision and more like an act of desperation.   The result has been a massive transfer of gold from western commercial and central bank vaults to the east, where China, Russia and others have imported huge quantities of gold from London, Switzerland, and New York.

DISCUSSION:

  1. The U.S. economy is run largely for the benefit of the political and financial elite.  (An excellent explanation is given here.)  Ever-increasing debt is necessary for the transfer of wealth to the political and financial elite.
  2. It seems that BORROWING MORE money to extend current wars and to fight additional wars in the Middle East is a major component of the U.S. economy.  What price will we pay in terms of lives, jobs, commodity price inflation, and the standard of living for the middle and lower classes?  It is clear that expensive and pointless wars will accelerate the timing for a financial collapse.
  3. The United States, Europe, and Japan have chosen to print money and create more debt to "solve" their excessive debt problems.  Few expect this will end well and history suggests some form of collapse is highly likely.
  4. The United States, Europe, and Japan have created a crushing mountain of debt that is ever-increasing and can only be rolled over (extend and pretend), but not repaid.  Which currency and economy will collapse first?  How long will the United States dollar maintain its "reserve currency status" and how dire will the consequences be when that "exorbitant privilege" (French Minister of Finance) is lost?
  5. When the dollar weakens or collapses against other better managed currencies, how drastically will gold and silver appreciate?  There is no bubble in gold yet, but remember that "there is no fever like gold fever," so another bubble in gold seems inevitable.  Gold fever will visit those countries that have abused their monetary systems, mismanaged their currencies, and who confuse actual wealth with unbacked paper money, which is merely a depreciating currency based on debt IOUs.
  6. What about the $1,000,000,000,000,000 (a $ Quadrillion or so) in global derivatives?  Could a spike in interest rates cause those "weapons of mass financial destruction" (Warren Buffett) to collapse the international banking system and a few Western economies?   For perspective, remember the economic crash of 2008, the 2006-07 housing crash, the tech stocks crash of 2000, and many other financial crashes that enriched a few at the expense of the many.  It can happen again!
  7. 7.  Are you prepared?  I'll say it again – protect yourself with gold and silver stored outside the banking system!

Stay safe!  It is wise to admit that strange and previously unthinkable events are now more likely to occur in the U.S. and Europe – such as stolen MFGlobal customer accounts, Cyprus "bail-in," and partially nationalized Polish retirement funds.

Additional concerns that may contribute to a financial collapse include QE to infinity, unsustainable deficit spending, middle-east wars, a government shut-down, Obamacare, an unknown risk from about $1,000 Trillion in derivatives, and loss of faith and trust in governments and central banks.

A financial collapse may not occur in the next few months, but the risks and instabilities seem to increase every quarter.  Gold and silver, stored outside the banking system, seem more necessary after each new political crisis, government scandal, QE creation, and financial bail-out.

 

Read:  Gold, Silver, and the Status Quo
Read:  Silver:  The $100 History

GE Christenson  |  The Deviant Investor

Bill Kaye: Raid on gold coincided with Chinas holiday, low in dollar index

Posted: 02 Oct 2013 01:01 AM PDT

GATA

Stewart Thomson: The Dow Faces Hurricane Winds

Posted: 01 Oct 2013 09:57 PM PDT

Stewart Thomson: The Dow Faces Hurricane Winds

As one deadline after another passes, the US government is beginning to shut down.  This is a truly horrific situation, and I’m stunned by the incredible complacency being exhibited by stock market investors. For decades, I’ve labelled the September – October time frame as "crash season".  In my view, it’s critical that all mainstream investors [...]

The post Stewart Thomson: The Dow Faces Hurricane Winds appeared first on Silver Doctors.

Check out these similar articles:
  1. Stewart Thomson: Buy Gold On QE Exit News
  2. Stewart Thomson: Key Gold Breakout
  3. Stewart Thomson: Silver Set for Surge

Marc Faber: 7 Key Insights About Today’s Debt Bubble

Posted: 01 Oct 2013 09:35 PM PDT

Based on a diversity of recent interviews with Marc Faber we could paint a picture of how the Swiss investor thinks about the ongoing debt crisis and especially its implosion. This article provides a summary on seven critical points.

The dangers of a market crash:

“Unlike the ’50s and ’70s when there was relatively less overall debt, a financial market crash did not inflict great damage on the economy. Debt levels are significantly higher these days, and so a market crash can inflict serious damage on economies. We’ve gone through a period of huge asset inflation, in stocks, bonds, commodities, and real estate, and we essentially now have in the world, a huge asset bubble. So everything is grossly inflated.”

The next bubble:

“The problem is I believe you and I are the bubble … the financial system is just too big, that is the problem. Maybe we can’t see where the next bubble is because we are the bubble – that is something to consider.”

Economic growth vs credit growth:

“One day this whole credit bubble will be deflated very badly – you are going to experience a complete implosion of all asset prices and the credit system – but as to when -I don’t know.”

The writing on the wall – declining marginal economic value of debt:

“A dollar of additional credit in the system created significant economic growth, but these days an additional dollar has very little impact. That is a sign that we have reached the end of monetary policy.

The end game:

“When the US government has to issue treasuries to pay the interest on its maturing debt. That will be the end game – then you are dealing with a collapse in the currency.”

The share of precious metals in Faber’s total portfolio:

“I recommend an asset allocation of about 25% in equities; 25% in fixed income, securities and cash; 25% in real estate; and 25% in precious metals—gold, silver. I think I have around 25% in gold whereby I don't value my gold. I have it and it's my insurance policy. It is important that one day when the so-called shit hits the fan—and I think the Fed is well on its way to creating that situation—you have access to your gold, that it is not taken away.”

The massive gold accumulation by China, India and Russia:

“In the Far East, we have a tradition of owning physical gold, but what is new is the Chinese government encouraging citizens to own gold. I believe that in the face of political instability and a lack of faith in the U.S. dollar, Asians will continue to accumulate physical gold and silver.”

 

Sources: 
Marc Faber spells out end game on CLSA Forum
Marc Faber Own 25% Of His Assets In Physical Gold

 

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

Posted: 01 Oct 2013 09:01 PM PDT

GATA

Bill Gross warns October 17th and US debt ceiling is the real date to watch this month for a category five storm

Posted: 01 Oct 2013 07:57 PM PDT

Pimco's Bill Gross joined Bloomberg Television's Trish Regan and Adam Johnson on 'Street Smart' today and said, US will avoid a 'catastrophic' default on Treasury securities if lawmakers fail to extend the debt limit on the nation's debt.

Mr. Gross went on to say that a default will be 'unimaginable' and would trigger a 'complex series of events worldwide.' 

He also told Trish Regan and Adam Johnson that Janet Yellen will be the next Fed Chairman. 


On how investors should be thinking about the looming debt ceiling:

'Let's look at this from two different angles. In this particular shutdown continues, it probably affects economic growth by 0.1 per cent a week. That is what happened in 1995 with the Gingrich shutdown. It has happened before that. In terms of prior shutdowns, there have been many.

‘There will be a slowdown in economic growth. Fourth-quarter economic growth will continue for three weeks. They quickly were repaired. There is no eventual impact in terms of economic growth. Much ado about nothing. The big date is October 17th on the debt ceiling. We will see if the dates can be merged together and show a category five storm instead of a category one.'

On whether there is a chance it could be a category five:

'With the debt ceiling we will have to see. It is a delicate dance in terms of investor perception and rating services and the like. The rating services to this point, Moody's very boldly suggested that they did not do anything. The real happy service compared to some of the other standard. It might take a more dour outlook.

‘It is the investors. The vanguard of the world. The retail investors. The central banks of the world that will be affected by this delicate dance and so want to collect fiasco in Washington that continues and continues without some type of resolution. Yes, October 17th can be important. '

On what happens to the yield on treasuries if we default on our debt:

'Catastrophic. And don't just look to treasuries. Markets are interrelated. We have complex markets in terms of money market funds and repo and interconnected types of relationships that depends upon the solvency of the US Treasury. The US Treasury is basically the center of the global financial conflict.

‘The default is unimaginable. If it happens, it will set into motion a complex series of events that affects not just bonds but credit transit transactions on a worldwide basis equity prices commodity prices. We do not want to see that happen.'

On whether people will be seeking a safe haven asset if US Treasuries default:

'Well of course…If they did default, would there be a safer haven on a global basis? Of course there will be German bunds there will UK gilts there will be other sovereign entities that have not defaulted. Would there be a flock to U.S treasuries if they defaulted.

‘Of course not. There will be a drastic movement away from US treasuries because early investors simply do not like defaults.'

On what will happen to stocks:

'The stocks are growth related. Stocks are default sensitive to a certain extent and if the sovereign mother defaults on their obligations then what could be next in terms of corporations so the whole intertwine connectivity of credit and credit markets and equity related securities will be unwound in drastic fashion.

‘This is not going to happen but this is the potential if did happen'

On whether the government will get their act together by the deadline:

'Treasury brings in perhaps 60-percent of the revenues. The debt service costs are about $25 Billion. The Revenues are $150 Billion per month. They cover their interest expense by six times. The treasury is not going to default on their debt simply because the debt ceiling is not going to be raised. There will be other repercussions. There will be slow economic growth. The Treasury will not default. That is the last, that's the last option.'

On whether buying credit default swaps on US debt is a 'sucker's bet':

'It depends on your cause. Credit default swap takes into consideration some very technical aspects. If it defaults the most deliverable security would be something that will be valued at $0.85 or $0.90. In other words, those selling protection would receive $0.85 on the dollar even though the treasuries ultimately might be money good.

‘It becomes very technical in terms of what it is worth. It has moved to 20 to 25 basis points to 35 to 36, 37 basis points. That see me still suggests an odds of maybe a million to one in terms of a treasury default.'

On whether he is staying the course with what he is holding now:

'What we have done is to buy and hold treasuries at the front end of the curve. What we think is the most defendable aspect of policy going forward, whether it is the debt ceiling, the CR resolution, the Fed going forward, is the a fact that the Fed probably will stay put. In terms of 25 basis points, not talking taper here stay put in terms of policy rate for the next two or three years.

‘What the market is interpreting is that the Fed will raise interest rates by 100 basis rates by December of 2015 and by another hundred by 2016. We do not believe that. We said bet against it. What does that mean? It means by front end treasuries by three, four, five year treasuries that incorporate the mispricing in terms of fed policy rates going forward.

‘We think, when Janet Yellen and I say when Janet Yellen is appointed… I cannot confirm it. I can give you 99.9 per cent pure that she will be head of the Fed come six months from now. If she is, then she is a main proponent of forward guidance. She and Michael Woodford basically suggested that after tapper that forward guidance is the thing.

‘What we believe at Pimco is forward guidance in terms of keeping the policy rate low under certain conditions that probably will not be met. The policy rate is the key. You should buy treasuries yes but on the front end. Don't by 30s, don't by 10s because these are inflation incentive. Buy something that the Federal Reserve is going to guarantee for the next several years.'

Did Bart Chilton Predict Today’s Gold & Silver Smash?

Posted: 01 Oct 2013 05:42 PM PDT

Did Bart Chilton Predict Today's Gold & Silver Smash?

Bart Chilton on today’s metal’s smash:  You’re on your own. Chilton’s prediction that the “do-badders” would attack due to lack of any gov’t oversight of the markets in light of the gov’t shutdown is below: 2013 Silver Maples As Low As $2.09 Over Spot at SDBullion!   CFTC Commissioner Bart Chilton on September 20th: ​On [...]

The post Did Bart Chilton Predict Today’s Gold & Silver Smash? appeared first on Silver Doctors.

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Karl Denninger Goes John Galt!

Posted: 01 Oct 2013 05:11 PM PDT

Karl Denninger Goes John Galt!

Economist Karl Denninger has gone John Galt.  The Market Ticker founder has released a statement that he is shutting down active market reports and updates at The Market Ticker, as he no longer wishes to actively fund the abuses of our fascist government and banking sector, and says in two words: “I’m done.” I refuse [...]

The post Karl Denninger Goes John Galt! appeared first on Silver Doctors.

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Announcing the Winners of The Doc’s September Silver Giveaway

Posted: 01 Oct 2013 05:07 PM PDT

Announcing the Winners of The Doc's September Silver Giveaway

The following four individuals won The Doc’s September Silver Giveaway compliments of DNA Precious Metals.  Included below is also a statistical summary of the entered predictions for the month.  Don’t forget to register for The Doc’s October Silver Giveaway.  ONE INDIVIDUAL could WIN Four 2013 Silver American Eagles!  CLICK HERE To See How You Can Win! [...]

The post Announcing the Winners of The Doc’s September Silver Giveaway appeared first on Silver Doctors.

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Sean Brodrick Talks Gold, Gold Miners, Pipelines & More

Posted: 01 Oct 2013 04:21 PM PDT

Sean Brodrick of the Oxford Club recently returned from a whirlwind property tour in Nevada. He gives us his thoughts on Gold, the miners, sentiment and the state of the industry.

Latest Columns: Investment U

Sean’s Blog: King 1 Eye

Sean’s Twitter: @SeanBrodrick

 

oct 1/Massive raid on gold and silver/dealer and total comex gold falls/GLD and SLV remain constant/

Posted: 01 Oct 2013 03:52 PM PDT
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