Friday, November 15, 2013

Gold World News Flash

Gold World News Flash

USD as a Percentage of Global Reserves Down, Then Up. What's next for Gold?

Posted: 14 Nov 2013 07:09 AM PST

When the euro arrived on the scene, it took over around 32% of global foreign exchange reserves from the USD, with the tacit approval of the U.S. This dropped the USD's percentage of global reserves from 95% to around 63%. Since then ... Read More...

More Stuxnet: US-Israeli Computer Virus Infected Russian Civilian Nuclear Power Plants

Posted: 14 Nov 2013 07:00 AM PST

from 21st Century Wire:

How reckless is the US-Israeli joint government-sponsored cyber warfare weapon known as the 'Stuxnet' computer virus? How many lives have been put at risk, not to mention the environmental risks of a core meltdown by this malicious operation?

Eugene Kaspersky, CEO and co-founder of Kaspersky Labs computer security corporation, announced at the Australian National Press Club that Stuxnet has also infected Russian nuclear facilities. From a diplomatic standpoint, this rogue and dangerous act of cyber-terrorism by Washington DC and Tel Aviv – could trigger a new meltdown in relations between the US and Russia.

As has reported multiple times already on GMN live broadcasts, sources have claimed that the US-Israeli super virus was implanted into Iran's nuclear power facility computer system by using Microsoft's automatic 'system updates'.

Read More @

Bernanke congratulates himself for transparency while Fed hides gold records

Posted: 14 Nov 2013 06:45 AM PST

As retiring Federal Reserve Chairman Ben Bernanke congratulates himself on his administration's supposed transparency, why is the Fed refusing to disclose its records about gold? And why are financial journalists just regurgitating the Fed's public-relations slop instead of demanding to see those records?:

* * *

As His Term Nears Its End, Bernanke Lauds Fed's Transparency

By Jonathan Spicer
Wednesday, November 13, 2013

WASHINGTON -- The more steps the Federal Reserve takes to openly explain its policy decisions to the public the more legitimate and effective the U.S. central bank will be, Fed Chairman Ben Bernanke said on Wednesday. ...

At a Teacher Town Hall Meeting on the 100-year history of the Fed, Bernanke said that until the 1990s policymakers were reluctant to publicly explain their decisions in part because they thought doing so would diminish the effectiveness of policies. ...


How to profit with silver --
and which stocks to buy now

Future Money Trends is offering a special 16-page silver report with our forecast for 2013 that includes profiles of nine companies and technical analysis of their stock performance. Six of the companies have market capitalizations of less than $800 million and one company has a market cap of only $30 million. The most exciting of these companies will begin production in a few weeks and has a market cap of just $150 million.

Half of all proceeds from the sale of this report will be donated to the Gold Anti-Trust Action Committee to support its efforts exposing manipulation and fraud in the gold and silver markets.

To learn about this report, please visit:

But "a more open Fed ... is both a more effective and more democratically legitimate institution," Bernanke said in remarks prepared for delivery at the event.

"The complex challenges we face as a nation are best addressed in an environment of informed public discourse, which is only possible when policy decisions are made in as transparent a way as possible.

"Increasing the Fed's transparency, openness and accountability has been one of my top priorities as chairman," Bernanke said. ...

... For the complete story:

* * *

Join GATA here:

Vancouver Resource Investment Conference
Vancouver Convention Centre West
Sunday-Monday, January 19-20, 2014
Vancouver, British Columbia, Canada

* * *

Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006:

Or by purchasing a colorful GATA T-shirt:

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

To contribute to GATA, please visit:


Buy metals at GoldMoney and enjoy international storage

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

Indian Gold Dealer: “Gold Demand Cannot Go Down; By End Of December, All Jewelers Will Need To Replenish Stock”

Posted: 14 Nov 2013 06:36 AM PST

I had the chance this week to reconnect with Vishal Vyas, head of operations at one of India's top bullion dealers, Pushpak Bullions Pvt. Ltd.

It was a powerful conversation, as Vishal indicated that the Indian Government and Central Bank are now stepping back in their fight against gold, allowing select bullion & jewelry

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

TF Metals’ Turd Ferguson: Gold HAD To Be Taken Down So The Bullion Banks Could Cover Shorts

Posted: 14 Nov 2013 06:30 AM PST

McKinsey "Finds" QE Did Not "Boost Equity Markets"

Posted: 14 Nov 2013 06:26 AM PST

Earlier today consulting company McKinsey, which has now become the new Moody's, released a 72 page report titled "QE and ultra-low interest rates: Distributional effects and risks" which contains the following pearls of wisdom: "The impact of ultra-low rate monetary policies on financial asset prices is ambiguous. We found little conclusive evidence that ultra-low interest rates have boosted equity markets. Although announcements about changes to ultra-low rate policies do spark short-term market movements in equity prices, these movements do not persist in the long term." Uhh, does McKinsey have an S&P chart that goes back to 2008? One would think whoever commissioned this report can at least pay for "bigger charts." Continuing: "Moreover, there is little evidence of a large-scale shift into equities as part of a search for yield. Price-earnings ratios and price-book ratios in stock markets are no higher than long-term averages."

We will spare any analysis, in-depth or otherwise, of the report: it merits none, and certainly not for those who watch the farce that the "market" has become.

Sadly, by issuing such drivel McKinsey has just tarnished what little reputation and credibility it may have had.

Instead we will just point out, visually, what McKinsey is saying: namely that the chart below from SocGen titled very confusingly "Liquidity has been the main driver of US equities since 2008" which shows the causation between the S&P and the Fed's balance sheet, doesn't exist and is purely a figment of overactive realists' imaginations.

Oh, and to the skeptics, we urge both you - and McMoody's - to speak to the US Treasury and the TBAC, which three months ago "finally admitted the truth: It's All POMO." To wit:

There, hidden on page 26, or slide 76 of 100, where the Treasury discusses "The Impact Of Monetary Policy", the biggest "conspiracy theory" of all becomes merely the latest conspiracy fact. First, for corporate bonds...


But just as importantly, for stocks.


But most importantly, and tying it all together, POMO. Only this time, finally, the US Treasury finally admits it.


So, thanks to the US Treasury, we know that between January 2009 and April 2013, on days in which the Fed POMO was more than $5 billion, the stock market rose a total of 570 points, on days in which the POMO was less than $5 billion, the cumulative stock market gain was "only" 141 points, and when there was no POMO, the S&P gained... -51 points.

And like that, another conspiracy theory bites the dust. Are any left? Oh yes, Gold isn't manipulated because alleging "gold manipulation" is unfit for polite, dignified society and is best left to the realms of the conspiracy theorists. 

WGC: China Already Tops Record For Full-Year Gold Demand

Posted: 14 Nov 2013 06:25 AM PST

14-Nov (Kitco News via Forbes) — Gold demand in China remained robust in the third quarter, with the country already topping its previous full-year record for gold buying, the World Gold Council reported Thursday.

The country was the world's top consumer in the July-September period and is on pace to replace India as the leading buyer for the full year. Indian demand was also up for the year through September, but was hurt in the third quarter by government efforts to restrict imports in an effort to battle a large current-account deficit.

For the year through September, mainland Chinese gold demand was 797.8 metric tons, reported Marcus Grubb, managing director of investment for the World Gold Council. Demand for full-year 2012 was around 776 tons.


Fanatical Gold Bugs Losing Sanity

Posted: 14 Nov 2013 06:25 AM PST

I stick by my forecast and am confident in its outcome. This sector is headed for trouble in the near term but it is likely to be the end of the bear market. There will be a huge and fantastic rebound. Read More...

JPMorgan reaps mostly mockery when it solicits questions on Twitter

Posted: 14 Nov 2013 06:18 AM PST

JPMorgan Twitter Hashtag Trends Against Bank

By Dawn Kopecki
Bloomberg News
Thursday, November 14, 2013

JPMorgan Chase & Co., the target of at least eight Justice Department investigations, was mocked and taunted by Twitter users after asking followers to send questions to an executive using the hashtag #AskJPM.

The online forum, which the bank canceled late yesterday, was intended in part to give college students an opportunity to communicate directly with a senior executive, said Brian Marchiony, a spokesman for the New York-based company.

"#Badidea! Back to the drawing board," the bank posted less than six hours after its original post, which drew more than 6,000 responses from users in that span, according to social media tracking service Topsy.

... Dispatch continues below ...


Buy metals at GoldMoney and enjoy international storage

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

The "Snarkpocalypse," as @ReformedBroker dubbed it, started after the bank's official Twitter account posted a call for questions at 1:26 p.m. in New York for investment bank Vice Chairman James Lee, using #AskJPM.

JPMorgan, the biggest U.S. bank, faces criminal probes including one into possible bribery in Asia and another examining its relationship with Ponzi scheme operator Bernard Madoff. The firm also has been negotiating an agreement with the U.S. to resolve multiple mortgage-bond probes, and two ex-employees were indicted for allegedly trying to cover up a record trading loss last year.

JPMorgan's call for questions provoked jeers from Twitter users, who responded with sarcastic posts about the bank's mounting legal woes.

"Can I have my house back?" @AdamColeman4 posted. "Is it true JPM stands for 'Just Pay More'?" asked @SconsetCapital.

"What's your favorite type of whale?" wrote @ObsoleteDogma. JPMorgan's record $6.2 billion loss tied to a derivatives position was built by a trader dubbed the London Whale because of the size of the bets.

Social media campaigns have backfired on other companies. Home Depot Inc. apologized this month and pulled a Twitter photo of three men drumming on some store buckets after consumers deemed it racist.

McDonald's Corp. sponsored the hashtag #McDStories in January 2012, seeking positive responses about dining at its restaurants. Instead, respondents joked about obesity and dog food, and the firm halted the promotion less than two hours after it started.

In 2011 Qantas Airways Ltd. let consumers write about their dream in-flight experiences only to be swamped with thousands of negative posts about the airline after the carrier became embroiled in a labor dispute.

* * *

Join GATA here:

Vancouver Resource Investment Conference
Vancouver Convention Centre West
Sunday-Monday, January 19-20, 2014
Vancouver, British Columbia, Canada

* * *

Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006:

Or by purchasing a colorful GATA T-shirt:

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

To contribute to GATA, please visit:


How to profit with silver --
and which stocks to buy now

Future Money Trends is offering a special 16-page silver report with our forecast for 2013 that includes profiles of nine companies and technical analysis of their stock performance. Six of the companies have market capitalizations of less than $800 million and one company has a market cap of only $30 million. The most exciting of these companies will begin production in a few weeks and has a market cap of just $150 million.

Half of all proceeds from the sale of this report will be donated to the Gold Anti-Trust Action Committee to support its efforts exposing manipulation and fraud in the gold and silver markets.

To learn about this report, please visit:

World Gold Council just shrugs at India's financial repression

Posted: 14 Nov 2013 06:07 AM PST

WGC Sees China Well Ahead of India as World's No.1 Gold Consumer

By A. Ananthalakshmi
Thursday, November 14, 2013

SINGAPORE -- China is this year set to usurp India as the world's biggest gold consumer by a convincing margin as strict import rules introduced by New Delhi bite, forecasts from the World Gold Council showed on Thursday.

The industry body cut its outlook for Indian demand in 2013 to around 900 tonnes from the 1,000 tonnes predicted previously, while keeping its forecast for China unchanged at 1,000 tonnes.

Plummeting demand from India could further pressure global prices that have dropped around 24 percent this year on fears the U.S. Federal Reserve would cut its economic stimulus.

"The administrative measures that the Indian government has imposed on the market have proven to be quite effective and imports have slowed down," Albert Cheng, the WGC's managing director for the Far East told Reuters.

... For the full story:


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Join GATA here:

Vancouver Resource Investment Conference
Vancouver Convention Centre West
Sunday-Monday, January 19-20, 2014
Vancouver, British Columbia, Canada

* * *

Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006:

Or by purchasing a colorful GATA T-shirt:

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

To contribute to GATA, please visit:

Gold Advances After Yellen Backs Easing Until Economy Improves

Posted: 14 Nov 2013 06:05 AM PST

14-Nov (Bloomberg) — Gold gained after Federal Reserve Chairman nominee Janet Yellen backed stimulus until the economy and labor market improve, reducing concern the central bank's bond-buying program will be scaled back soon.

Yellen said in testimony prepared for her nomination hearing today before the Senate Banking Committee that the economy and labor market are performing "far short of their potential" and signaled they must improve before the central bank begins reducing monetary stimulus. Gold lost 23 percent in 2013 as signs of recovery spurred speculation that the Fed will start to cut its monthly bond buying, strengthening the dollar.

"The market is re-appraising its expectations for Fed tapering given Yellen's clearly dovish comments," said Nic Brown, head of commodity research at Natixis SA in London. "This afternoon's testimony therefore takes on added significance."


Redefining “Cheap Oil” for the Next 10 Years

Posted: 14 Nov 2013 06:00 AM PST

Radio the air traffic controller… return your seats to their upright position…

Make sure the runway lights are on… ready the brightly-colored ground crew!

The "blackbird" is in its final approach and set for landing.

Today we'll take a detailed look at an important landing zone for one of our favorite commodities, and why this touch-down event will provide our next long-term profit opportunity…

From a short-term high over $108 a barrel, crude oil began its descent. Since late August, the price of crude is down some 12%.

Today the blackbird is in its final approach to a landing zone we shared with you a few weeks ago. Here's a look…

Light Crude Oil, Spot Price, 2011-Present

A quick look at today's ticker and the price of crude is much closer to $90 a barrel then it's been for the past four months. And as you can surmise from the chart above, a quick dip lower — to the $80-range — isn't out of the cards, either.

Today we'll scan the long-range radar for crude's long-term direction. As you'll see the blips are painting a rather vivid picture…

Since America's 1970 peak in oil production, our dependence on foreign oil has ballooned. You could say we moved from First Class to Business Class, from Business Class to Coach and back in 2005 it almost looked like we were going to have to sit in the cargo hold with the chickens!

America's oil production has since skyrocketed — thanks to the U.S. shale boom. Today we're producing nearly 8 million barrels per day (bpd) here in the U.S. – for reference, during a trough for production in 2005 we produced a mere 4.2 million bpd.

U.S. Oil Production, 1920-Present

The turnaround has been spectacular and according to this week's report from the International Energy Agency (IEA) the U.S. is set to be the world's #1 producer of oil by 2015. For those keeping score at home, that smashes a 2011 forecast from Goldman Sachs that said the U.S. would move to the top spot by 2017.

Looks like we're two years early to the party – much to the benefit of Americans and U.S. investors alike!

Last week I was kicking rocks in the South Texas Eagle Ford. This week I'm headed to the capitol of the Rust Belt (revival) Pittsburgh, Pa.

But regardless of where I lace up my boots – North Dakota's Bakken, Pennsylvania's Marcellus, the West Texas Permian Basin, the South Texas Eagle Ford, or others — I'm seeing the same trend: more drilling, more knowhow, more efficiencies and more importantly more production.

The one thing I can say with full authority is that drill bits are spinning as I type – doesn't matter if these words reach you at 11am or 11pm. (The only difference for the drill crews at night is that their rig is lit up like a Christmas tree.)

The result? Thousands of shale wells are year being put onto production each year.

Combined with the field reports are the statistics. A quick glance at the most recent report from the U.S. Energy Information Administration and you'll see the same concrete trend. More efficiencies, more knowhow and more production. (Just take a peak at the tail end of the U.S. production chart above!)

With all of this new production hitting the pipelines it's no wonder the price for crude oil is under pressure. And under $100…

The blackbird is landing. But does that mean we're in for a decade of "cheap" oil?

The needle on America's energy gauge is moving in the right direction.

Well, yes and no.

Before I explain, understand this caveat: oil doesn't have to be "cheap" or "expensive." There's certainly middle ground when we're talking about a supply and demand driven commodity, like crude.

So when I say oil is "cheap" I'm just implying it's under the psychological $100 level – or a level that spurs economic growth and doesn't impede it.

"Cheap" oil does NOT, however, mean $20, $30, even $50/barrel. In that sense the good old days are truly gone. Unless there's a catastrophic economic meltdown that pulls demand back, we'll never see those prices again. And if we do see them, much like we saw in 2009, the market will quickly recover and pull prices back to a baseline level.

The most established baseline level we're seeing here, in the post-2008 meltdown world, is $80.

That said, we are indeed in for a decade of "cheap" oil. According to what I'm seeing in the U.S. oil fields and the data that crosses my screen on a daily basis we've got a good 10-15 years of shale oil drilling ahead of us. I won't go out on a limb and say when/where this boom will peak, but I will say that the U.S. has ample supply of oil and gas prospects for the next decade. The needle on America's energy gauge is moving in the right direction.

In that sense I don't think we'll see sustained oil prices above $100 (shielding my forecast from inflation I'll say $100 in "2013 dollars.") Sure, I think we'll see plenty of Middle East-driven flare ups that spike the price over the $100 mark, but again it won't be a sustained rally.

It's a goldilocks scenario here in the U.S.

Oil isn't going to go too low, to stop oil producers from turning a profit (not for long anyhow) and oil isn't going to go too high to impede a global economic recovery.

This is great news for Americans and U.S. investors alike. Keep an eye on these pages for updates on our favorite ways to play this long-term trend…

Keep your boots muddy,

Matt Insley
for The Daily Reckoning

Ed. Note: What's funny, in the midst of this "lull" in oil prices, America has what could be considered the biggest opportunity in its recent history. The last time we were vaulted to a global powerhouse was after WWII. This time, without war, the U.S. could take another commanding step forward as the undisputed economic world leader. What's that mean for investors? To find out, sign up for the Daily Resource Hunter for free, right here, and stay one step ahead on the developing U.S. oil story.

Original article posted on Daily Resource Hunter

Investor Psychology Can Trump Gold Stocks Market Fundamentals

Posted: 14 Nov 2013 06:00 AM PST

With gold and silver equities markets as volatile as ever and assets of many miners valued at pennies on the dollar, Eric Muschinski, editor of the Gold Investment Letter, believes being on the right side of the emotional curve when investing is critical. He pays as much attention to investor psychology as he does to market fundamentals. In this interview with The Gold Report, Muschinski explains how investors can use knowledge of market cycles to their advantage and profiles undervalued companies flying under the radar. The Gold Report: You have published a recent e-letter for investors called "Fighting Battles to Win the War." Please sum up the major themes of the issue, especially around how small-cap stock investors can combat impatience and deal with the emotional stress associated with temporary market downturns.

Gold Prices "Tied to Sentiment" as Fed Chairs Speak, Demand Rebound "Would See $1300" Again

Posted: 14 Nov 2013 05:57 AM PST

GOLD PRICES recovered all of this week's previous 2.1% drop by Thursday morning in London, trading back at $1288 before slipping $5 per ounce as the US Dollar steadied on the currency market.
World stock markets also stood higher for the day, and bond yields fell as prices rose, after both the current and next US Fed chiefs said money-printing and zero interest rates "[have] more work to do" yet.
"Gold's price is closely tied to investor sentiment," write John Hathaway and Doug Groh, co-managers of the Tocqueville Gold mining-stock fund.
"[So] the current run-up of the equity market has turned investors' attention to stocks and away from commodities. [But] when commodity prices are advancing as a result of inflation or increased demand, investors often gravitate to gold, and we expect that to be the case as a result of accommodative monetary policies."
US consumer price inflation was last seen in September at 1.2% per year, near its lowest since the mid-1960s.
The US stock market's 23% rise so far in 2013 matches the 23% decline in gold prices since January.
Wholesale gold bullion prices are now showing a strongly negative correlation with the US Dollar's trade-weighted index on the currency markets, moving higher as the Dollar falls and vice versa, says a note from Swiss bank and London market-maker UBS.
Hitting a 4-month low of -0.74 last week, "the correlation [of daily gold prices with the USD index] suggests gold will likely continue to look closely to Dollar moves for direction," explains UBS.
But "choppy price action" is likely to predominate it says, "given the persistent focus on US economic data and headline risks coming from Fed member comments."
Fed vice-chair Janet Yellen, defending her nomination as the US Federal Reserve's next chief later today, will tell lawmakers "I believe the Federal Reserve has made significant progress toward its goals," according to prepared remarks released Wednesday
"But [the Fed] has more work to do."
"We're missing on both" parts of the Fed's dual mandate, current chairman Ben Bernanke said at an event Wednesday to mark 100 years of the US central bank, pointing to weak jobs growth and weak price inflation below the central bank's 2.0% target.
"We need a stronger, more rapidly moving economy."
Back in the gold market Thursday, new data from the World Gold Council showed the first spring-to-summer drop in world gold demand since 2007.
Gold demand from the world's former No.1 consumer, India, fell to its lowest Q3 level since 2005 at 148 tonnes, says the market-development group's new Gold Demand Trends, down by one third from July-Sept. last year.
New world No.1 China saw its gold demand rise by 18% year on year.
Today, reports Reuters, "Supplies coming through legal channels [to India] are very expensive," said one Mumbai dealer.
"Buyers need to pay more than $100 premium over London prices" – the world benchmark for physical gold bullion.
China's gold premiums meantime held firm today at $4.50 per ounce in Shanghai.
 "Looking to the fourth quarter," says the World Gold Council's new report, pointing to typical stockpiling ahead of the strong Chinese New Year, "anecdotal reports are of cautious optimism among banks and retailers.
"Investment should nonetheless improve during the traditionally strong [year-end] period."
"Should we see a pick-up in [Asian] physical demand," says Standard Bank analysis today, "we would expect gold to rise above $1300.  First because ETF liquidation [by Western funds] is likely to be better matched by demand from Asia, and second, the futures market is likely to short-cover."

Gold steady at 1284.78 (-0.16). Silver 20.69 (-0.025). Dollar better. Euro lower. Stocks called higher. US 10yr 2.72% (unch).

Posted: 14 Nov 2013 05:52 AM PST

Platinum ‘Rich Man’s Gold’ is Palladium: Tomorrow’s?

Posted: 14 Nov 2013 05:50 AM PST

The Platinum Group Metals (PGMs) are a family comprised of 6 metals - platinum, palladium rhodium, iridium, osmium and ruthenium. But for our purpose today (and for most investors), we are only interested in the first two - platinum and palladium. Platinum is usually more expensive than gold. But for well over a year, it actually traded for less - substantially less. One could purchase a troy ounce of platinum for $150 or so less than a troy ounce of gold. (As a side note, during the time of this unusual inverted pricing relationship, in expectation of the "norm" reestablishing itself, I placed a long platinum/short gold spread trade. Of course, this did indeed take place and I was able to make a good profit on the trade.)

Highest Conviction Hedge Fund Exposure By Asset Class

Posted: 14 Nov 2013 05:18 AM PST

Curious where the "hedge fund hotel" is currently located, for both most loved and hated asset classes? The following table shows both the penthouse and the basement of the most recent groupthink, which not surprisingly, indicates that hedge funds, which have simply become highly-levered momentum and beta chasers, are most bullish on the Nasdaq, and offsetting this, are most bearish on 10 Year notes. Of course, since the bulk of the very highly levered marginal cash (for those who haven't seen it, Balyasny's leverage chart is a stunning eye opener) is already deployed, all that remains now is the profit-taking, and as such anyone who wishes to take advantage of the inevitable and recurring hedge fund hotel collapse would be advised to put on a short Nasdaq, long 10Y pair on and await the unraveling.

Source: SocGen

Talking Real Money: World Monetary Reform

Posted: 14 Nov 2013 05:07 AM PST

by Mark O'Byrne, Gold Core:

"Sometimes it’s not enough to know what things mean, sometimes you have to know what things don’t mean." Bob Dylan

The Bank of England says the UK recovery has taken hold and Chancellor George Osborne is reported as saying "the report was proof the government's economic plan was working." The governor of the Bank of England, Mark Carney, said the bank will not 'consider' raising interest rates until the jobless figure falls below 7%.

However, The Bank of England threw a get-out-of-jail card on the table and said that there was a two-in-five chance of the unemployment rate reaching the 7% threshold by the end of 2014. And then added that the corresponding figures for the end of 2015 and 2016 are around three in five and two in three respectively. What exactly does the Bank of England mean or what does this not mean?

Read More @

Silver: Successful Test of The Key Support at 20.50

Posted: 14 Nov 2013 05:00 AM PST

Silver has successfully tested the key support at 20.50. Resistances for a short-term bounce can be found at 21.30 (intraday high) and 21.55 (intraday high). Read More...

Gold and the ‘flations

Posted: 14 Nov 2013 05:00 AM PST

The Real Asset Co

Frontrunning: November 14

Posted: 14 Nov 2013 04:32 AM PST

  • Yellen to defend Fed's ultra-easy monetary policy (Reuters)
  • Japan growth slows on global weakness (WSJ)
  • Eurozone third-quarter growth falters (FT)
  • Fed Debates Its Low-Rate Peg (Hilsenrath)
  • Yellen: Economy Still Needs Fed Aid (WSJ)
  • 'Obamacare' launch fiasco rouses sceptics (FT)
  • DoubleLine's Gundlach says U.S. equities 'only game in town' (Reuters)
  • Indian Inflation Exceeding Estimates Adds Rate-Rise Pressure (BBG)
  • HUD Said to Fail in Bid to Sell $450 Million of Mortgages (BBG)
  • Boeing machinists reject labor deal on 777X by 67 percent (Reuters)
  • Australia's Senate Rejects Raising Debt Ceiling to A$500 Billion (BBG)
  • ECB's Praet puts asset buying on agenda (Reuters)
  • Default 'Wave' of $1.6 Trillion Looming for Junk, Fridson Says (BBG)
  • Carney's economic glass is half full (FT)


Overnight Media Digest


* The government's antitrust settlement with AMR Corp and US Airways Group Inc sets up what may be the last big land grab at major airports for some time, as the planned merger cements a new structure for the industry after a decade of bankruptcies and consolidation.

* In a sign of the fervor once again rising around Internet startups, the 23-year-old CEO of a two-year-old company with no revenue has rejected a $3 billion buyout offer from Facebook . Snapchat Inc is being wooed by other investors and potential acquirers. Chinese Internet giant Tencent Holdings Ltd had offered to lead an investment that would value Snapchat at $4 billion.

* Boeing's largest union rejected an eight-year contract that would have guaranteed the plane maker's updated long-range 777X jetliner and its wings would be built in unionized facilities in Puget Sound.

* Crocs, famous for its colorful plastic clogs, is considering going private, its sales and stock price off their peaks.

* Business owners throughout the U.S. used-smartphone market are reporting they suddenly cannot unlock old Apple iPhones. None of them knows exactly what changed, but AT&T seems to be at the center of it.

* The nation's railroads are asking safety regulators to require that all existing tank cars that carry crude oil, ethanol and other flammable liquids be modified or upgraded to better withstand accidents or be "aggressively" phased out of service.

* KKR and Google have struck a pact to invest about $400 million in six solar power plants being built by Recurrent Energy in California and Arizona, according to people familiar with the matter.

* With thousands of debt-laden new lawyers entering the market at a time when plum jobs at big firms are in short supply, the influential New York City Bar Association is trying out some alternatives.

* Fairholme Capital Management said it wants to buy parts of bailed-out mortgage-finance giants Fannie Mae and Freddie Mac from the government in a recapitalization valued at $52 billion.

* Sotheby's sold a silvery Andy Warhol diptych of a man slumped amid his crumpled car, "Silver Car Crash (Double Disaster)," for $105.4 million, an auction high for the Pop artist.



Network equipment maker Cisco Systems Inc warned that revenue would decline by as much as 10 percent in the current quarter, blaming sliding demand due to a "level of uncertainty or concern" among customers after recent revelations about internet surveillance by the U.S. National Security Agency.

Two of Barclays' most senior bankers, including Britain's former top financial industry regulator Hector Sants, have resigned, dealing a blow to Chief Executive Antony Jenkins' attempts to revive the lender and restore its reputation.

The Bank of England brought forward its unemployment forecast on Wednesday and said it believes the UK economy is recovering so quickly that it is likely to consider raising interest rates from their historic lows as soon as this time next year.

The latest income tax bill for Starbucks Corp has been cut to zero after it was ordered on Tuesday to pay $2.7 billion to Kraft Foods for ending the companies' packaged coffee partnership early, the coffee chain revealed in its restated accounts on Wednesday.

Rolls-Royce, the world's second-largest maker of aircraft engines, is preparing to use 3D printing technology to make components, in a bid to speed up production and reduce the weight of parts.

Research Group CCS Insight predicted unprecedented mergers and acquisitions activity in the next two years in the technology and telecommunication sectors with a handful of large companies expected to expand their regional and global reach by 2016.



* A contract between JPMorgan Chase and a consulting firm run by the daughter of the former prime minister points to the bank's strategy to build its influence in China.

* Snapchat, a social media service based in Venice Beach, California, has become one of the most sought-after businesses in the technology industry.

* Janet L. Yellen, President Obama's choice to lead the Federal Reserve for the next four years, plans to tell senators at her confirmation hearing on Thursday that continuing the Fed's enormous stimulus campaign is the best way to revive the economy and hasten the program's end.

* Just over 106,000 people picked health plans in the first month of open enrollment through the state and federal insurance marketplaces established by the Affordable Care Act, President Obama's health secretary said Wednesday, a fraction of the administration's initial estimate for enrollment during that period.

* The race for consumers' dollars has prodded more retailers to open their doors on Thanksgiving, a day before the traditional start of the holiday season.

* On Thursday IBM will announce that Watson, the computing system that beat all the humans on "Jeopardy!" two years ago, will be available in a form more than twice as powerful via the Internet.

* Online real estate brokerage Redfin has raised $50 million in a new round of mezzanine capital, led by Tiger Global Management and T. Rowe Price. Five existing investors, including Greylock Partners and DFJ Venture Capital, also participated.

* JPMorgan called off a question-and-answer session with James Lee, its vice chairman and top deal maker, after Twitter users complied with its request for queries with a stream of ribald questions and hostile jokes.

* A Brazilian tour operator backed by the Carlyle Group could raise as much as 1 billion reais ($428 million) for its existing shareholders through a planned offering.

* Goldman Sachs has promoted 280 executives to managing director, one step down from the brass ring of partner. Promotions are up 5 percent over last year, when the firm named 266 employees managing director.




* Canada boasts world-class destinations such as the Rockies and Niagara Falls, but it's missing out on a global tourism boom, costing the economy billions of dollars a year. The number of international visitors to Canada has plunged 20 percent since 2000 even as global travel soars, according to a sobering report being released Thursday by Deloitte Canada.

* Former staffers in the office of Toronto Mayor Rob Ford have alleged a series of abusive behavior by their boss, with one staffer telling police detectives the mayor drove while intoxicated, and another describing a lurid night in 2012 when there were allegations of cocaine use and a "professional escort."

Reports in the business section:

* Mounting competition from giant U.S. chains is forcing supermarkets to lower their prices, a trend that hit grocers Loblaw Companies Ltd and Metro Inc in their latest financial quarter. Basic commodities such as corn and sugar have also fallen this year, meaning there is virtually no inflation pressure in food to help the bottom line.

* Governments in Ontario and Quebec have thrown political hurdles in front of Alberta's efforts to expand markets for its crude, launching public hearings into controversial pipeline proposals the industry regards as necessary to enable its fast-growing oil production.


* With the dust barely settled on a day of tense face-offs, interrogations and intervention-like pleas to a defiant Toronto mayor, Rob Ford learned on Wednesday that he is facing a new attempt to curtail his power, as city councillors try to strip him of his ability to deal with city emergencies.

* Canada and Sri Lanka traded shots on Wednesday in the build-up to the Commonwealth meeting in Colombo, which Canadian Prime Minister Stephen Harper is boycotting over Sri Lanka's human rights record.


* It's a relatively small upscale mall in Toronto's north end but the $500 million price being paid for Bayview Village is sending a strong message about the property market in Canada. Real estate prices in the right markets are still strong.

* Quebec is asking companies involved in public contract bid-rigging years ago to repay the sums they overcharged or risk a civil suit.




- Some of China's provincial authorities have set dates by which state-controlled developers will exit property development, official sources said. By the end of 2013, 23 part or full state-owned Nanjing developers will complete their exit from projects.


- Shanghai Jinfeng Investment Co Ltd said its parent is in talks with real-estate developer Greenland Group on a possible restructuring deal.

- Private equity firm Warburg Pincus has invested $100 million in privately-run hospital Amcare Corp, and will help it accelerate expansion over the next five years.


- China and the West hold different views on human rights, said an editorial in the paper. No country has the right to impose its own perceptions of human rights upon others or use the concern as an excuse to interfere in internal affairs, it said.


- An important political task for China's Communist Party is to ensure strong entrepreneurial and opportunity awareness, said a commentary in the paper which acts as the party's mouthpiece.


Fly On The Wall 7:00 AM Market Snapshot



CAE (CAE) upgraded to Outperform from Sector Perform at RBC Capital
Carlyle Group (CG) upgraded to Buy from Neutral at Goldman
Finish Line (FINL) upgraded to Buy from Neutral at B. Riley
Invesco (IVZ) upgraded to Buy from Neutral at Goldman
LifePoint Hospitals (LPNT) upgraded to Buy from Hold at Deutsche Bank
Office Depot (ODP) upgraded to Buy from Underperform at BofA/Merrill
PGT, Inc. (PGTI) upgraded to Outperform from Neutral at Credit Suisse
Sony (SNE) upgraded to Overweight from Equal Weight at Morgan Stanley
SunTrust (STI) upgraded to Outperform from Perform at Oppenheimer
Zogenix (ZGNX) upgraded to Outperform from Perform at Oppenheimer


Affiliated Managers (AMG) downgraded to Neutral from Buy at Goldman
Cisco (CSCO) downgraded to Hold from Buy at Deutsche Bank
Fortress (FIG) downgraded to Neutral from Buy at Goldman
Hercules Technology (HTGC) downgraded to Hold from Buy at Wunderlich (NTES) downgraded to Hold from Buy at Deutsche Bank
PNC Financial (PNC) downgraded to Perform from Outperform at Oppenheimer
Penn National (PENN) downgraded to Neutral from Overweight at JPMorgan
Telefonica Brasil (VIV) downgraded to Neutral from Buy at Goldman
WhiteHorse Finance (WHF) downgraded to Neutral from Outperform at RW Baird
lululemon (LULU) downgraded to Underperform from Neutral at Sterne Agee


Bright Horizons (BFAM) initiated with an Outperform at Wells Fargo
Burlington Stores (BURL) initiated with a Buy at BofA/Merrill
Burlington Stores (BURL) initiated with an Outperform at BMO Capital
Echo Global (ECHO) initiated with an Outperform at Cowen
Essent Group (ESNT) initiated with an Outperform at JMP Securities
Gaming and Leisure Properties (GLPI) initiated with a Neutral at JPMorgan
Heritage Oaks (HEOP) initiated with an Outperform at Keefe Bruyette
International Rectifier (IRF) initiated with a Buy at Drexel Hamilton
Maxim Integrated (MXIM) initiated with a Hold at Drexel Hamilton
NXP Semiconductors (NXPI) initiated with a Buy at Drexel Hamilton
SanDisk (SNDK) initiated with a Buy at Drexel Hamilton


Fairholme Capital proposed purchase of Fannie Mae (FNMA), Freddie Mac (FMCC) MBS insurance units
Eli Lilly (LLY) to invest $700M to enhance global insulin manufacturing capacity
BlackBerry (BBRY) CEO: Company has significant financial strength for long-haul
Boeing (BA) sees $550B market in Middle East for new airplanes
Cisco (CSCO) CEO Chambers: Emerging markets more challenging than anticipated
Cisco raised stock buyback program by $15B
BorgWarner (BWA) announced two-for-one stock split
NetApp (NTAP) said ongoing macro environment 'uncertain'


Companies that beat consensus earnings expectations last night and today include:
North American Palladium (PAL), Chimerix (CMRX), Helmerich & Payne (HP), eLong (LONG), Kinross Gold (KGC), Spark Networks (LOV), Tetra Tech (TTEK), Radiant Logistics (RLGT), SeaWorld (SEAS), Cisco (CSCO), NetApp (NTAP)

Companies that missed consensus earnings expectations include:
Penford (PENX), WGL Holdings (WGL), (NTES), Eagle Bulk Shipping (EGLE), CUI Global (CUI), American Midstream Partners (AMID), ExOne (XONE)

Companies that matched consensus earnings expectations include:
GasLog (GLOG), Luxfer (LXFR), Aegean Marine (ANW)


  • KKR (KKR) and Google (GOOG) struck a deal to invest about $400M in six solar-power plants being built by Recurrent Energy LLC in California and Arizona, sources say, the Wall Street Journal reports
  • The roaring market for IPOs  has hit some speed bumps this month, with a number of deals attracting less investor enthusiasm than had been the case for much of the year. IPOs remain on track for their busiest year since the financial crisis, with bankers and investors expecting a steady stream of deals through year-end and into 2014, the Wall Street Journal reports
  • Riverbed Technology (RVBD) is not now considering a sale, sources say, denying a media report that pushed up the technology company's stock earlier yesterday, Reuters reports
  • Alitalia's board approved a revised business plan, promising severe cost cuts to make the Italian airline more profitable, but that failed to convince top shareholder Air France-KLM (AFLYY), which voted against the plan, sources say, Reuters reports
  • Google (GOOG) and Hewlett-Packard (HPQ) are stopping sales (BBY, AMZN) of the Chromebook 11 laptop after some users reported overheating power supplies, a setback for the devices that have been gaining momentum with consumers, Bloomberg reports
  • Fed Vice Chairman Janet Yellen will testify before the Senate Banking Committee today and signal that she will carry on the central bank's unprecedented stimulus until she sees improvement in an economy that's operating well below potential, Bloomberg reports


CDW Corporation (CDW) 15M share Secondary priced at $20.50
Genesee & Wyoming (GWR) announces sale of 5.98M shares by Carlyle funds
Hougton Mifflin (HMHC) 18.25M share IPO priced at $12.00
Lumos Networks (LMOS) files to sell 2.512M shares of common stock
Parametric Sound (PAMT) announces $5.1M registered direct offering
Sapiens (SPNS) announces proposed public offering of 5.65M shares
Tandem Diabetes Care (TNDM) 8M share IPO priced at $15.00
Vertex Energy (VTNR) files to sell $8M in common stock

Gold & Silver vs. Hope & Change. Place your Bets!

Posted: 14 Nov 2013 04:20 AM PST

from Deviant Investor:

The BIG Perspective: Examine the following "Point & Figure" chart from Ron Rosen. This type of chart plots price on the "y" axis while the "x" axis shows time but without uniform distance between years. The long term trend has been up since 1970 and 2001, while the intermediate trend has been down for the past 26 months.

Clearly the long term trends are up. Why?

– A debt based paper currency system must expand to survive!

– The Fed needs an increasing money supply and more debt.

– Congress and the administration aggressively spend money, borrow money, and increase the national debt. It will take a real crisis to change this – much worse than a phony debt ceiling crisis.

Read More @


Posted: 14 Nov 2013 03:23 AM PST

Maybe 2015 will be the year of the collapse. Our entire economy runs on debt creations, vis-a-vis financialization, since we import $500 billion a year more than we export. 2015 is the year when increasing debt results in ZERO GDP growth. The end of the line. But that won’t stop the Federal Reserve and the […]

Gender Equality: U.S., U.K., Canada & Australia Fail to Crack Top 10

Posted: 13 Nov 2013 10:08 PM PST

The World Economic Forum released its annual Global Gender Gap Report for 2013top-10-300x300 measuring gender disparity between men and women around the world…and disappointingly the United States didn't even make it in the top 20! How did your country fare?

The above edited excerpts are by Jodie Gummow (  from her original article* entitled Can You Guess the 10 Best Countries For Women? Hint: the U.S. Isn't One of Them.

[The following article is presented by  Lorimer Wilson, editor of and and the FREE Market Intelligence Report newsletter (sample hereregister here) and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.]

The report, which ranks 136 countries, determines its findings across four primary areas including economic participation and opportunity, educational attainment, political empowerment and health and survival, ranking the United States 23rd on the list for 2013, HuffPost reported.

Each country out of the 136 is assigned a score between 1 representing total gender equality and 0 depicting inequality, the total score representing the percentage of the gap that has been closed between women and men. This year, the United States received a score of 0.7392, which is actually worse than the score it received the year before when it was ranked 22nd.

According to the report, despite having a near-perfect gender gap in terms of education, we have a serious gender disparity when it comes to politics, with women constituting only 18.3 per cent of the 113th Congress.

So which countries ranked above the United States? Not surprisingly, Scandinavia (known for their kick-ass policies on promoting gender equality) scored extremely high yet again with the top 10 as follows:

1. Iceland

2. Finland

3. Norway

4. Sweden

5. Philippines

6. Ireland

7. New Zealand

8. Denmark

9. Switzerland

10. Nicaragua

[other countries of note are ranked as follows:

#13. Netherlands

#14. Germany

#18. U.K.

#20. Canada

#23. USA

#24. Australia

#30. Spain

#45. France

#68. Mexico

#69. China

#71. Italy

#105. Japan

#127. Saudi Arabia

#136 (last). Yemen

See pages 8 through 15 of the Global Gender Gap Report for the complete list.]

[Editor's Note: The author's views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.]


Related Articles:

1. Going Topless Is Legal In These U.S. States & Canadian Provinces


Going topless for both men and women has come a long way over the last 77 years but still has much further to go as the map of the U.S. below illustrates. Read More »

2. How Optimistic/Pessimistic Is Your Country About Its Future Economy?

To what extent do residents of these 39 countries think their country’s economy will improve or worsen by the spring of 2014? Take a look. Read More »

3. Where Does U.S. Credit-worthiness Rank Among Other Countries?

Leading up to the short term resolution of the debt ceiling crisis there were many articles about the extent of the national debt of the U.S.. the likelihood of default and, as such, the overall credit-worthiness of the once proud U.S. of A. The fact is, however, that while the U.S. does not rank in the top 10, it is far more financially sound than most other countries. Take a look at where it ranks compared to 47 other countries. Read More »

4. Who Are the World's Happiest Citizens? Where Does Your Country Rank?

According to the 2nd annual World Happiness Report of the Earth Institute, sponsored by the UN, Canada slipped to 6th place among the world's happiest countries, Australia ranked 10th and the U.S. dropped down to below that of its neighbours to the south including Costa Rica, Panama and Mexico. Where does your country rank? Read on! Read More »

5. Which Is the World's Safest Major Currency – You'll Be Surprised

The term 'safe fiat currency' is as intellectually disingenuous as terms like 'fair tax' or 'government innovation' but, as we've been exploring recently why modern central banking is completely dysfunctional, it does beg the question– is any currency 'safe'? Let's look at the numbers for some data-driven analysis. Words: 575 Read More »

6. Where Does Your Country Rank in Gold Reserves per Person?

The country with the biggest reserves in the world is, not surprisingly, America, with 8,134 tonnes but, expressed in terms of reserves per person, the picture looks very different. Take a look. You’ll be surprised. Read More »

7. World's Most Prosperous Countries: Where Do the U.S., Canada and Others Rank?

The Legatum Prosperity Index survey, as shown in the following table, ranks countries on eight different attributes, and then consolidates those attributes into an 'overall ranking'. The report says that the U.S. has fallen out of the top 10 (to #12) in the 'most prosperous country ranking' increasing doubts about the health of its economy and ability of its politicians. Read the balance of the article to see where your country is ranked overall and in each of the 8 different categories. Words: 520 Read More »

8. 18 Countries Now Have More Economic Freedom Than U.S. – Here are the Details

This year's Economic Freedom of the World Index, which lists countries by most to least free using every available objective criterion, contains a real shocker when it comes to the United States. We aren't just slipping on the index, we're falling off a cliff. In many parts of the world, life is freer than in the "land of the free." What this reports says about the United States should be front-page news. Instead, it has received barely any attention at all. The U.S. has fallen from a high of 2nd to its current 19th. Here's why. Words: 1040



The post Gender Equality: U.S., U.K., Canada & Australia Fail to Crack Top 10 appeared first on munKNEE

Registered Gold By Individual Comex Warehouse

Posted: 13 Nov 2013 10:08 PM PST

Registered Gold By Individual Comex Warehouse

Posted: 13 Nov 2013 10:08 PM PST

Gold continues its journey from West to East as buoyant consumer markets balance investment outflows

Posted: 13 Nov 2013 10:00 PM PST

The latest World Gold Council Gold Demand Trends report, which covers the period July-September 2013, highlights the resilience of the global gold market in what is traditionally a slower quarter for gold demand. The continued growth in consumer demand across the globe and the strength of Asian gold demand overall, reinforces the patterns first seen at the beginning of 2013, clear evidence of the self-balancing nature of the global market.

Gold Demand Trends Q3 2013

Posted: 13 Nov 2013 10:00 PM PST

Gold Demand Trends Q3 2013 Infographics

Posted: 13 Nov 2013 10:00 PM PST

Gold Demand Trends Q3 2013

Posted: 13 Nov 2013 10:00 PM PST

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