Monday, November 18, 2013

Gold World News Flash

Gold World News Flash


Ayn Rand’s Galt’s Gulch Vision Now A Reality…And It Accepts Private Money Bitcoin

Posted: 17 Nov 2013 07:00 AM PST

from GoldSilverBitcoin:

Jeff Berwick, CEO of TDV Media and The Dollar Vigilante, made quite a stir when he announced earlier this year his plan to open a Bitcoin ATM in Cyprus while the bankers were closed there.

Now, he's created a place where you can go and use your bitcoins: Berwick's created something like John Galt's vision (from Ayn Rand's "Atlas Shrugged), Galt's Gulch. He's called it Galt's Gulch Chile.

The libertarian real estate project is located in Chile. The team in Chile has given the project immense attention to detail to ensure it is in line with all Chilean regulations and environmentally friendly.

And now, the land of Galt's Gulch just opened up to bitcoiners, who might be looking to cash out some of their enormous Bitcoin profits (Bitcoin is currently at $391). From the PR:

Read More @ goldsilverbitcoin.com

Current Economic Collapse News — News Brief

Posted: 17 Nov 2013 06:40 AM PST

from X22Report:

SilverSeek Mine Site Visit, Fortuna Silver’s San Jose Project – Oaxaca, Mexico

Posted: 17 Nov 2013 06:20 AM PST

by Peter Spina, Silver Seek:

In an age of cost overruns, delayed projects, and eroding profits, Fortuna Silver Mines (TSX: FVI | NYSE: FSM) has managed to maintain something of a sterling reputation in the mining industry.

Since starting out in 2005 the company has permitted, commissioned, and operated its two silver-focused mines on-time and on-budget, establishing CEO and co-founder Jorge A. Ganoza and his team at Fortuna as proven mine builders and strong operators in Latin America.

In October I flew to Oaxaca, Mexico to visit the San Jose mine and property, which included visiting the company's efficiently run underground mining operation, newly expanded mill, onsite assaying lab and key stakeholders at the silver-gold mine.

Read More @ SilverSeek.com

Pinnacle Digest: Rigging the gold market

Posted: 17 Nov 2013 06:12 AM PST

9:10a ET Sunday, November 17, 2013

Dear Friend of GATA and Gold:

Pinnacle Digest, a financial letter based in Richmond, British Columbia, Canada, yesterday gave its readers a comprehensive review of the Western central bank scheme to suppress gold prices particularly and commodity prices generally. GATA's work is cited and is plainly getting around. Pinnacle Digest's commentary is headlined "Rigging the Gold Market" and it's posted at the digest's Internet site here:

http://www.pinnacledigest.com/articles/vol-334-rigging-gold-market

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.



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Black Gold Poised To Shine

Posted: 17 Nov 2013 04:59 AM PST

This is an excerpt from this week's premium update from the The Financial Tap, which is dedicated to helping people learn to grow into successful investors by providing cycle research on multiple markets delivered twice weekly. For more up to date commentary subscribe. Now offering monthly & quarterly subscriptions with 30 day refund available if not 100% satisfied.

The recent midweek report highlighted a technical pattern that frequently occurs during Gold's Daily Cycle declines – a step pattern of 3 sessions down followed by 3 days of sideways consolidation. The pattern is repeated as Gold falls into its DCL, with the final 3 day drop marked by broad capitulation and panic.

Gold's recent move toward a DCL has generally followed this pattern, but I'm concerned that the last 3 day burst down was, by DCL standards, fairly mild. Technically, Tuesday's low qualifies as a DCL. The lower Bollinger Band was touched and the RSI was oversold. But since we're also looking for this Cycle to mark a much deeper Investor Cycle Low, we would expect broader capitulation and deeper technical damage.

To satisfy my expectation of an ICL in the $1,210-$1220 area, Gold will need to endure yet another, more violent, step-down decline. A final drop is needed to wash out the remaining bullish sentiment and to push the weekly Investor Cycle down into a more recognizable Cycle Low. Because the Cycle is already 24 days in and price has churned sideways for 3 days (a bear flag), the final 3 day down move should begin almost immediately.

gold price 16 november 2013 category technicals

The above these leaves room for doubt, however. In a modest departure from the primary expectation, I'm starting to reconsider the possibility that we might have another Daily Cycle ahead of us – the current Investor Cycle simply doesn't yet show the normal signs of an ICL. Gold's next move should provide clarity. If Gold immediately drops to retest the June lows in the $1,220 range, we can mark the drop as a both a DCL and an ICL, although the ICL drop will have been fairly mild.

On the other hand, if Gold moves higher next week, Gold bugs should be fearful. With Gold at 25 days from the last DCL, a move higher through the 10dma ($1,294) and the declining trend-line will confirm that a new Daily Cycle is in play. On the surface, a new DCL is bullish, and many investors will interpret and trade it as such. But a new Daily Cycle will likely be the 5th in the current Investor Cycle, so should fail and lead to significant low. To avoid the downside that a 5th Daily Cycle would bring, the current 4th Daily Cycle needs to show a rapid $80 decline in Gold's price. Though nothing is certain, such an immediate drop will dramatically increases the odds of a DCL which also marks an ICL.

By Poly from The Financial Tap

Related Posts
Expect More Dollar Weakness
Path Of Least Resistance Is Down For Gold
Euro's New High Negates H&S Pattern

Gold Investors Weekly Review – November 15th

Posted: 17 Nov 2013 04:43 AM PST

In his weekly market review, Frank Holmes of the USFunds.com nicely summarizes for gold investors this week's strengths, weaknesses, opportunities and threats in the gold market. The price of the yellow metal went lower after two consecutive weeks of gains. Gold closed the week at $1,290.20 which is $1.6 per ounce lower (0.12%). The NYSE Arca Gold Miners Index rose 0.34% on the week. This was the gold investors review of past week.

Gold Market Strength

Last week saw more action in the Comex warehouses, with a net gain in gold inventories for the week. However, registered gold stocks hit a new all-time low at a little under 639,000 ounces. The ratio of registered Comex gold inventory also hit a new low, reiterating the impending physical delivery shortage. In China, demand volumes for cash gold on the Shanghai Gold Exchange climbed to a one-month high this week, leading traders to cover some their short positions early in the week. In addition, the U.S. Mint sold 764,500 ounces of American Eagle coins as of November 8, compared with 753,000 ounces in all of 2012, according to data on the mint's website.

Gold rose on Thursday after Federal Reserve Chairman nominee Janet Yellen spoke in testimony before the Senate. Yellen commented that the economy and labor market are performing far below their potential and pointed that large improvements must be made before the Fed reduces its unconventional asset purchase stimulus. The continuation of ultra accommodative monetary policies, together with Yellen's dovish tone, is viewed as supportive of gold prices.

Gold Market Weaknesses

Ed Yardeni, in his daily commentary this week, thinks that there are lots of grey shades in the latest batch of global economic indicators as well as in the stock market's reaction to them. For one, U.S. GDP growth isn't "red hot" as initially believed. When excluding inventory build-ups, real final sales in GDP increased by only 2.0 percent, shy of the headline 2.8 percent. Yardeni adds that real final sales to domestic purchasers rose just 1.7 percent, following a gain of 2.1 percent during the second quarter. All that glitters is not gold, as they say.

Hedge funds cut bullish gold bets late last week, adding the most short contracts in four weeks, as U.S. economic growth fuels speculation that the Fed will trim stimulus. Gold's negative price reaction to the possibility of a December Fed tapering indicates that the bullion market is likely to remain sensitive to expectations for changes in monetary policy, according to Howard Wen of HSBC. Short bets jumped 37 percent, the most since October 15.

Gold Market Opportunities

In regard to China's physical demand, a gold vault capable of storing 2,000 metric tonnes, or twice the amount of China's expected demand this year, opened in Shanghai and is seeking to benefit from rising physical demand in Asia's largest economy. The facility is a massive vote of confidence for the Chinese gold market, according to Philip Klapwijk of Precious Metals Insights. In addition, recent World Gold Council data shows that China's demand for gold jewelry, bars and coins rose 30 percent, while gold usage in India rose 24 percent, adding that the bulk of year-to-date growth in consumer demand came from eastern markets. Both Klapwijk and two Bloomberg research analysts have come to the conclusion that the People's Bank of China (PBOC) has taken 300 tonnes of gold into reserves in the first half of the year, just under 15 percent of global supply. The key highlight of the report is that the conclusion was reached independently. At such a massive rate of accumulation, China could match or even surpass U.S. gold reserves within the next 10 years.

Bloomberg published a brief exhibit this week highlighting that China's buying and holding of gold has increased contango to $134 per ounce on the five-year futures contract, from $94 over the course of six months. This is because the gold moved from London gold ETP liquidations to China during 2013 may no longer be available should ETP demand return. China has been the world’s largest buyer of gold this year, and it is widely known that gold going into China is not expected to hit the international market again. This is due to the country's view of gold as a long-term investment, leading traders to increase contango as a result.

Gold Contango november 2013 investing

In his Friday commentary, David Rosenberg of Gluskin Sheff gave his take on Yellen's Senate testimony. According to Rosenberg, Yellen not only pointed towards endless quantitative easing (QE), she also indicated that the Fed will consider lowering the meager 0.25 percent it pays for bank deposits to kick start a more vigorous credit cycle; the era of free money is alive and well, he asserted. The result of Yellen's nomination, and impending ratification, is that liquidity will remain friendly and will fuel risk appetite for the foreseeable future, implying that investors will be punished for at least another five years of decay, if they are overweight cash underneath Yellen's mandate. In essence, Rosenberg summarizes to borrow short and lend long and start going long hard assets since we will come out of the other side with inflation.

Gold Market Threats

Despite an expected solid underpinning from industrial demand for silver prices, the possibility of the Fed tapering its stimulus, along with the resulting weakness in gold, should send silver tumbling, according to Thomson Reuters. Thomson Reuters' analysts add that the rising physical demand for the metal will not be enough to sustain prices when faced with the unwinding of the massive U.S. government QE program, and the stronger U.S. dollar. Despite this opinion, it is necessary to highlight that the 2011 record of 39.869 million American Silver Eagle bullion coin sales was shattered this Tuesday as the U.S. Mint revealed sales of 40.175 million coins sold so far this year.

Gold And Silver – When Fundamentals Fail And Charts Prevail

Posted: 17 Nov 2013 04:26 AM PST

There is a decline in the number of reads in our articles that do not provide a fully developed "fundamental" story about why gold and silver should be much higher in price, [but are not]. Relying upon charts to more accurately capture the developing "story" does not capture the imagination of as many readers, for whatever reason. We attribute this to Confirmation Bias where a reader wants to read an article that confirms his/her beliefs. The accuracy/validity/truth may or may not be true, but is satisfies an emotional need for affirmation.

The true story of gold and silver is a simple one. There is a recognized and acknowledged shortage of supply in opposition to the greatest demand for both precious metals, for at least in recent memory, if not all time. Current prices are in total disregard to the fixed law of Supply v Demand, or perhaps more accurately stated, in total defiance of that law. It is the most reliable of truths that when demand is in far excess of supply, price goes higher.

This has not been the case for precious metals for the past two years, as central banks have been actively suppressing prices in order to preserve their fiat currencies, particularly the Federal Reserve's "dollar." In our last article, Cognitive Disconnect Between Physical and Paper, we covered several aspects that addressed political/central banker motives that account for why gold and silver are not rising in value.

It is all about money, following the money, for money is power, and those central bankers currently in power face losing it. Desperate people do desperate things, and the power- hungry will destroy all currencies to keep themselves where they are. Even they know the clock is ticking. Repeating statistics, dwindling exchange supplies, etc, etc, etc, has done nothing to otherwise explain why PM prices remain low.

Fundamentals are relative, charts are absolute. They accurately reflect all that is going on, regardless of reasoning/motivation. A few, or some, the number[s] do not matter, have no regard for the validity of PM charts which reflect a bogus paper market. To an extent, the paper markets are bogus, but the number of contracts being sold are large, much larger than buyers, and this ironically reflects the reality of supply v demand.

As to the physical, China being the largest buyer for whatever is available, there is no reason for China and the other buyers to want price to go to higher levels when they can be buying so cheaply. The suppressed prices may even be an accommodation to China and others to compensate for the depreciating/disappearing "value" of toxic bonds the US has been dumping on the world for so long. That game is over, but no one has a fix on the time line for ending the fiat currency Ponzi scheme and reverting back to some kind of gold-back currency sponsored by China and the other BRICS nations.

Right now, the charts are letting us know that higher PM prices are unlikely to occur anytime soon. Barring some kind of "overnight surprise" that will shock the markets, odds favor lower prices over higher prices unless and until demand shows up in chart activity.

Whenever a trend is down, the onus is on buyers to create a change. Right now, that is not happening. We show the bearish spacing, a sure sign of weakness and one of sellers being in control. The 50% retracement level is also shown, and the August swing rally failed to reach that level. A half-way retracement is a general guide used to measure the relative strength/weakness of a trend. In a down market, when a retracement rally cannot retrace to the half-way level, it is a sign of greater market weakness.

There is a small possibility of a low from the last week of June, and there have been two potential retests that have held, so far. If this lower probability proves out, it is unfolding in a weak manner, which is no surprise given what was just explained about the character of the market's overall weakness.

Assume for the moment that we are looking at a possible low, because it is developing slowly, even under this scenario, it will take much more time for buyers to turn this market around. Should price go lower still, then the time frame for a turnaround will be extended even more.

This is a weekly chart, and it take more time and effort to make a turn in trend.

gold price weekly 15 november 2013 price

The fact about the daily gold chart is that it continues to make lower highs, and that is a characteristic is a down trending market, so the message here remains clear. There was a high volume strong rally in mid-October. The bar is marked "D/S," Demand over Supply. This positive expression of demand was erased by the 4th bar from the right. Another fact is that the October rally effort was totally retraced, last week. Both are signs indicating the weak character of the gold market.

gold price DAILY 15 november 2013 price

Silver is not faring any better. Regardless of whatever positive fundamental consideration one can advance, the chart structure is telling us silver is struggling. We see evidence of that from the bearish spacing, supportive of overall weakness.

Also, note the location of the last two little swing high rallies. The last one, 3rd bar from the right, is a lower swing low, a sign right there, but both fall short of rallying half-way in the down channel, once again, echoing weakness.

As with gold, the June low has the potential of being a bottom, but it needs more confirmation than we are seeing, to date.

silver price weekly 15 november 2013 price

The arrow pointing to the sharp increase in volume, and the poor close on the bar, at a support area, resulted in a price gap up from the close, next day. It could be a small bear trap. Friday's close was upper end on the bar, and that says buyers won over sellers for that day. The only caveat we hold is how price has been unable to rally from support right away, as it did at points 1 and 2. Weak rallies lead to lower prices, so buyers better step up on Monday, or silver can break current support.

The best feature about buying physical gold and silver is that charts do not matter. Just keep on buying, especially at these lower prices. These low levels may last for some time, but timing is less of an issue for accumulating tangible assets that cannot be debased and have no counterparty risk. Beat the central bankers at their own game.

silver price DAILY 15 november 2013 price

Gold Knocking on the Door of Overhead Resistance

Posted: 17 Nov 2013 02:30 AM PST

from Dan Norcini:

Take a look at the chart below and you can see that gold is trying to clear chart resistance near $1290 but thus far has been unable to do so. Incoming Fed Chairperson Janet Yellen’s testimony has put to rest any fears of bond tapering in the immediate future and this has spurred a round of short covering once again in the gold market.

It seems as if every single time the Fed either seems to shift gears and become more dovish or economic data comes in worse than expected and dispels Tapering fears, we experience a round of short covering in gold. However, these rallies have tended to be fleeting at best as they are viewed as just another opportunity to establish fresh short positions by some of the larger speculators. In other words, the bearish chart posture in gold has traders selling rallies and not looking to buy dips at the present time.

Read More @ TraderDanNorcini.Blogspot.com

Bloomberg: So Many Memes, So Little Time

Posted: 17 Nov 2013 01:30 AM PST

by Anthony Wile, The Daily Bell:

Republicans are beginning to mention a gold link for the US dollar once more. This information is presented to us in a recent Bloomberg article entitled, “Republicans Asserting Reliance on Gold as World Loses Faith.”

This is more of a dominant social theme than a curative. The disease of the West today is statism and the institutions of statism need to be removed, not merely reconfigured.

In fact, the Bloomberg article is chock full of memes. One nearly despairs at the aggressiveness of the disinformation. Here’s how it begins:

Read More @ TheDailyBell.com

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