Gold World News Flash |
- S&P Closes Above 1800, Posts 7th Consecutive Weekly Increase: Longest Streak Since 2007
- Jim Sinclair: My mission on our behalf
- Silver Certificates and Counterfeit Mobs
- My Mission On Our Behalf
- Obamacare Is Going To Be The Biggest Expansion Of The Welfare State In U.S. History
- The Amazing Disappearance Of Gold From The American Psyche
- Gold QE Tapering Hysteria
- The Daily Market Report: Mounting Deflation Risks Keeps Focus on Easy Monetary Policy
- In The News Today
- The End Game, Gold & What I’m Doing With My Own Money
- Jim’s Mailbox
- Money Supply Skyrocketing As China Abandons US Dollar
- Collapse Imminent: Got Silver?
- Gold Tapering Hysteria
- Alasdair Macleod: Sprott's right, WGC is wrong on gold demand data
- Precious Metals: The Long-Term Perspective
- Catherine Austin Fitts: Derivatives, Rates, Debt, Gold, Weather Wars, More..
- Gold traders plan benchmark code of conduct
- Detroit’s Bankruptcy According to Sesame Street
- Gold Capitulation? Not Quite
- Gold Capitulation? Not Quite
- Gold Capitulation? Not Quite
- Audio: Short-Term Shortages in Silver
- Audio: Short-Term Shortages in Silver
- Alasdair Macleod’s Weekly Market Roundup
- Hugh Hendry Capitulates: "Can't Look At Himself In The Mirror" As He Throws In The Towel, Turns Bullish
- Bearishness, naked shorts at extremes again in gold, Maguire says
- Maguire - Gold War Heats Up As Shocking Events Taking Place
- Alasdair Macleod: Paper sellers still in charge of gold market
- Goldman forecasts at least 15% declines for gold, iron ore
- GoldCore's O'Byrne notes continuing signs of gold market manipulation
- Verkoopt Venezuela zijn Goud aan Goldman Sachs?
- China Is Getting Closer To Pulling The Plug On The Dollar
- China Is Getting Closer To Pulling The Plug On The Dollar
- Examining Silver and Deflation
- Gold and commodities
- Stock Market Boom Sees Gold Down 25% in 2013
- Market report: Paper sellers remain in charge
- 4 Fantastic Charts Showing Gold Is Nearing A Major Turn
- Gold Bullion "Out of Favor" as Stocks Hit New Highs, Sterling Price Slumps 25% for 2013, Central Banks Add More
- Gold better at 1246.40 (+3.20). Silver 19.96 (-0.04). Dollar slips. Euro higher. Stocks called higher. US 10yr 2.77% (-1 bp).
- Chinese gold demand and the World Gold Council’s estimates
- Gold 2014 - U.S. Dollar 30 Year Slide May Be Gold's New Life
- U.S. Dollar Index ETF Trading Strategy
- Final Plunge in Gold and Silver is Underway
- People To Lose Confidence In Dark Forces Ruling West & Japan
- When To Trade? My Algorithmic Trading System Shows You
- Mining shares are so depressed that value is starting to be seen, Rule tells KWN
- Mining shares are so depressed that value is starting to be seen, Rule tells KWN
- The End Game, Gold & What I’m Doing With My Own Money
| S&P Closes Above 1800, Posts 7th Consecutive Weekly Increase: Longest Streak Since 2007 Posted: 22 Nov 2013 01:11 PM PST The S&P 500 has now managed the longest weekly winning streak (7 weeks) since May 2007 (when it managed a 9% gain). Off the recent lows, the current run is an impressive 9.6% (for the S&P) with Trannies up 12.5% in the same period. (we hesitate to mention that May 2007's run-up was halted by the first of the structured credit funds imploding) On the week, Trannies and NASDAQ ended back practically unch, Russell 2000 outperformed but the afternoon melt-up in stocks (on the back of more shorts being squeezed) held the S&P above 1,800 close for the first time ever. Bonds rallied (recovering a lot of their mid-week losses), the USD was offered in general (led by EUR strength) but AUD's 2% loss was notable. VIX was manhandled to 12.25% into the close to maintain the headline-grabbing 1,800 as gold and silver clung to their lows.
The 7-week winning streak of the S&P 500 in 2007 marked the top...
A glance at the lower pane in the following week of data for the S&P 500 says all you need to know... the selling days are heavy volume and the buy days are thin, low volume illiquid meltups...
The NASDAQ crept back to unch on the week, Trannies underperformed but the small cap Russell went on another high beta trip to infinity...
As "most shorted" names were tossed around like rag dolls... with the afternoon meltup in broad indices driven by yet further squeezes...
Led by the all-important EURJPY carry trade... come the fuck on!!!!
Treasuries were bid back in the last 2 days recovering mnost ofthe FOMC minutes losses...
The more hedge and saturated credit guys finally threw in the towel and capitulated the last 2 days...
Precious metals had a tough week - as oil and copper rose (Fed off, growth on? - not in the data but whatever)...
Charts: Bloomberg Bonus Chart: The Only chart that counts...
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| Jim Sinclair: My mission on our behalf Posted: 22 Nov 2013 12:41 PM PST 3:46p ET Friday, November 22, 2013 Dear Friend of GATA and Gold: Gold advocate and mining entrepreneur Jim Sinclair writes today from Singapore about his efforts to have physical gold exchanges replace the paper futures markets in which manipulation is suppressing prices. Sinclair writes: "There has been a clarion call from the long-suffering holders of gold shares and investment gold for the chief executive officers of gold companies to identify and take definitive action to end the slavery of the gold price to the mechanism of manipulation, the paper gold market. The advent of global platforms for and the true revelation to the gold public of the real gold price, the physical cash price on a 24-hour basis, is the answer." ... Dispatch continues below ... ADVERTISEMENT How to profit with silver -- 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: http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp... Just this morning your secretary/treasurer wrote to the CEO of a major gold mining company to request an audience at which GATA might make a presentation about these issues. Sinclair's commentary today emphasizes the necessity of mobilizing the gold mining industry, which for the most part is clueless about both the monetary nature of its product and the suppression of its product's price. Only agitation by the shareholders of the mining companies can save them. They will die on their knees if they won't start fighting on their feet. No one on the planet will ever need a piece of metal as long as a piece of paper will suit him just as well instead. So shake off your demoralization and do something. Get in touch with the top executives or at least the investor relations people of the companies whose shares you own, send them Sinclair's commentary today, which is headlined "My Mission on Our Behalf" -- http://www.jsmineset.com/2013/11/22/my-mission-on-our-behalf/ -- as well as your secretary/treasurer's recent summary of the international gold price suppression scheme -- http://www.gata.org/node/13185 -- and ask for a response. If you don't get a response in a week or so, start asking yourself why you have invested in companies that are dumber than the rocks they dig out of the ground. CHRIS POWELL, Secretary/Treasurer Join GATA here: Vancouver Resource Investment Conference http://www.cambridgehouse.com/event/vancouver-resource-investment-confer... * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html 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: http://gata.org/node/wallstreetjournal 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: ADVERTISEMENT 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: http://www.goldmoney.com/?gmrefcode=gata | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Silver Certificates and Counterfeit Mobs Posted: 22 Nov 2013 12:40 PM PST by JY896, TF Metals Report:
Then I stumbled across this (forcefully written, but nevertheless compelling) 'refutation' of the EO_11110 'theory' according to which for the crime of 'attempt to reduce the influence and circulation of fiat currency issued by the FedResBanks', JohnF was sentenced (presumably by interests controlling the FedResSystem) to death by firing squad. | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 22 Nov 2013 12:03 PM PST My Dear Extended Family, The following was written at Changi Airport in Singapore on route to Dar es Salaam, East Africa, November 22nd 2013/ My presence in Singapore is a mission for us. Having reported to you the six locations where cash and physical only exchanges for silver and gold were to be established, I... Read more » The post My Mission On Our Behalf appeared first on Jim Sinclair's Mineset. | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Obamacare Is Going To Be The Biggest Expansion Of The Welfare State In U.S. History Posted: 22 Nov 2013 12:00 PM PST by Michael Snyder, End of the American Dream:
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| The Amazing Disappearance Of Gold From The American Psyche Posted: 22 Nov 2013 11:53 AM PST Submitted by Simon Black of Sovereign Man blog, In George Orwell’s seminal work 1984, there’s a really great scene early in the book between Winston (the main character) and Syme, a low-level functionary at the Ministry of Truth. Syme is working on the 11th Edition of the Newspeak Dictionary, and he explains to Winston how the Ministry of Truth is actually removing words from the English vocabulary. In Newspeak, words like -freedom- have been struck from the dictionary altogether, to the point that the mere concept of liberty would be incommunicable in the future. I thought about this scene recently as I was testing out Google’s new Ngram Viewer tool. If you haven’t seen it yet, Google has digitized over a million books that were printed as far back as 1500, and they’ve made the contents searchable within their own database. The Ngram Viewer allows you to search for particular keywords. And you can see over time how prevalent the search terms were for particular years. Out of curiosity, I searched for the term “gold” in English language books starting in 1776. As one would expect back in the 18th and 19th centuries when gold was actually considered money, the instances of the word ‘gold’ favored prevalently in English language books at the time. The trend continued into the early part of the 20th century. But then something interesting happened in the mid-1930s. The use of the word ‘gold’ in English language books reached its peak… and began a steep, multi-decade decline.
Further investigation shows that the peak actually occurred in 1933. And as any student of gold in modern history knows, 1933 was the same year that the President of the United States (FDR) criminalized the private ownership of gold. It remained this way for four decades. And by the time Gerald Ford repealed the prohibition on gold ownership, the concept of gold being money had been permanently struck from the American psyche, just as the Orwellian Newspeak dictionary had done. By the mid-1970s (and through today), people have become readily accepting of the idea that money was nothing more than pieces of paper conjured at will by central bankers. The good news is that, according to Google’s data, there seems to be slight uptick in the number of instances of the word ‘gold’ in English language books over the last 10-years or so. No doubt, this probably has a lot to do with gold’s seemingly interminable rise relative to paper currency. One can hope that the trend will hold… that more people will wake up to the reality that the central-bank controlled fiat currency system is a total fraud. | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 22 Nov 2013 11:52 AM PST Already beleaguered, gold suffered another sharp drop this week. When the minutes from the Federal Reserve’s latest policy meeting implied it might slow its QE3 bond-buying campaign “in coming months”, futures speculators responded with heavy selling. But their extreme gold bearishness is highly irrational, they are missing the forest for the trees. Taper or not, quantitative easing remains super-bullish for gold. Quantitative easing is the fancy name for the Fed’s massive and unprecedented bond-buying programs of recent years. In order for normal investors to buy bonds, they first have to raise the necessary cash by selling something else. But when central banks like the Fed buy bonds, they conjure the cash out of thin air! The Fed pays the bond sellers with new money that never existed before, which is then immediately spent. | |||||||||||||||||||||||||||||||||||||||||||||||||||
| The Daily Market Report: Mounting Deflation Risks Keeps Focus on Easy Monetary Policy Posted: 22 Nov 2013 11:40 AM PST
The ECB has got to be flummoxed by the inability of the euro to sustain losses. After hitting a new two-year high against the dollar in October at €1.3832, the ECB cut the refi rate to a record low 0.25% at its November meeting. The EUR-USD rate dutifully tumbled 14%, all the way back to 1.3294. However, the single currency came charging right back, so the central bank floated the possibility of a negative deposit rate earlier this week. Once again, the euro fell at first and then rebounded. What’s a poor central bank to do when their currency simply wont be cowed by record low rates and the threat of a negative deposit rate? You naturally roll out the heavy artillery that is needed to truly engage in the global currency war. Weapons that have already been utilized by the likes of the BoJ, BoE and Fed. I’m talking QE here. The ECB’s chief economist Peter Praet warned today that the eurozone ecconomy “is weak” and deflationary pressures are mounting. This was an attempt to parry persistent German objections to liquidity operations and QE because of inflation fears. Praet has expressed support for QE in the past. There have been many assurances in recent weeks from policy makers that ‘everything is on the table’. Presumably that would include more LTRO liquidity injections and even a full-on QE effort. On Thursday, ECB President Mario Draghi defended the recent rate cut, saying the central bank had moved to secure a "safety margin against deflationary risks." We’ve made note in recent commentary about what Draghi called a “slow motion” decline in Europe’s inflation rate, but deflationary risks are suddenly cropping up in other places as well. This week we saw U.S. CPI for October drop 0.1%. The annual pace of consumer inflation fell to 1.0%, from 1.2% y/y in September. U.S. PPI fell 0.2% in October, with the annual pace of inflation at the producer level holding steady at just 0.3%. Today Canada released its October inflation data: All items CPI was -0.2% m/m, while the annual pace tumbled to 0.7%, versus 1.1% in September. This dose of reality will likely silence the hawks at the BoC for the time being. If the trend continues, a BoC rate hike probably gets pushed out to at least 2015. While the minutes of the October FOMC meeting hinted that the taper would commence in the “coming months,” I think that’s absolute nonsense in the face of the mounting disinflation/deflation risks. Nonetheless, the hovering threat of taper has weighed on gold. But how do you think global central banks will react if these risks do in fact persist? They will assuredly push back in the form of even easier monetary policy. That may come in the form of further rate cuts for those central banks that have yet to reach the zero-bound. For the rest though, further liquidity operations and asset purchases would likely be the order of the day. That would likely reinvigorate the long-term uptrend in the gold market. During the deflationary episode of 2008, gold initially dropped 34% from a high of 1032.30 to a corrective low of 681.10. In November of 2008, the Fed initiated QE1, which pushed gold to new record highs. QE1 begot QE2 in November 2010, which begot Operation Twist in September of 2011. Ultimately gold reached a record high of 1920.84 that month. While there was ultimately a QE3 as well, gold has been in a corrective mode for just over two-years. This correction, while longer in duration, is similar in scope to the 2008 correction: About 38%. All we need now is the next jolt of monetary stimulus — whether it be from the Fed or ECB — as a means to ward off the deflation threat. After all, if the world’s major central banks want inflation (and clearly they do), by God inflation we shall have. One need look no further than Japan’s recent success on the inflation front. This “success” comes as a result of Shinzo Abe returning to power and appointing Haruhiko Kuroda as Governor of the Bank of Japan to implement Abenomics. Did they taper? Heck no, they doubled down and launched a massive expansion of QE with the tacit goal of devaluing the yen. In an environment where central banks are swinging toward greater accommodation, can the Fed really swing toward tightening? I don’t think so. | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 22 Nov 2013 11:38 AM PST Jim Sinclair's Commentary This is a massive shot across the bow of the US Dollar. PBOC Says No Longer in China's Interest to Increase Reserves By Bloomberg News – Nov 20, 2013 8:03 PM MT The People's Bank of China said the country does not benefit any more from increases in its foreign-currency holdings,... Read more » The post In The News Today appeared first on Jim Sinclair's Mineset. | |||||||||||||||||||||||||||||||||||||||||||||||||||
| The End Game, Gold & What I’m Doing With My Own Money Posted: 22 Nov 2013 11:30 AM PST from KingWorldNews:
"Ben Graham once observed that in the very short-term markets are voting machines, and long-term they are weighing machines. Meaning, in the short-term they measure people's perceptions and prejudice, and in the long-term they measure value. Ben Graham famously said, 'Money was made arbitraging between the way people vote and the way things are.' And I think paying attention to the gold price at today's price makes about as much sense as sense as paying attention to it at $1,900 did. The truth is that they are both short-term aberrations. | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 22 Nov 2013 11:26 AM PST Jim, Let the tapering begin. For the gold shorts, it's a case of damned if you do and damned if you don't. Taper = stock market and bond market correction, with funds seeking gold as safe haven. No Taper = increased fiat printing, with gold benefiting on a dollar decline. Even higher rates are good... Read more » The post Jim’s Mailbox appeared first on Jim Sinclair's Mineset. | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Money Supply Skyrocketing As China Abandons US Dollar Posted: 22 Nov 2013 11:25 AM PST  Today one of the top economists in the world is warning KWN readers around the world that the money supply is skyrocketing as news hit that China announced they are abandoning the US dollar. This is an incredibly powerful piece from Pento where he also discussed the disastrous situation the US now faces. Michael Pento, founder of Pento Portfolio Strategies, wrote the following powerful piece exclusively for KWN. This posting includes an audio/video/photo media file: Download Now | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Collapse Imminent: Got Silver? Posted: 22 Nov 2013 11:20 AM PST How To Win the War on Your Wealth by Brittany Stepniak, Outsider Club:
As the Second World War exploded with one catastrophe after another, Joseph Stalin told America and England that whichever side had more petroleum engines would win the war. Plain and simple. The Soviet Union echoed this message in desperate hope of acquiring new wartime allies in England and America. The primary goal: to combine resources in order to defeat Hitler-controlled Germany using the biggest source of energy the world had at the time. | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 22 Nov 2013 11:07 AM PST Already beleaguered, gold suffered another sharp drop this week. When the minutes from the Federal Reserve's latest policy meeting implied it might slow its QE3 bond-buying campaign "in coming months", futures speculators responded ... Read More... | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Alasdair Macleod: Sprott's right, WGC is wrong on gold demand data Posted: 22 Nov 2013 11:01 AM PST 2p ET Friday, November 22, 2013 Dear Friend of GATA and Gold: The economist Alasdair Macleod, GoldMoney's research director, today analyzes the controversy over the World Gold Council's gold demand estimates and sides with Sprott Asset Management CEO Eric Sprott, concluding that the gold council vastly underestimates gold being imported into China. Macleod calculates that imports by China and Hong Kong "exceed all other mine supply by at least 580 tonnes on an annualized basis." Macleod concludes: "Without significant leasing by Western central banks, total Asian demand could not be satisfied at current prices, because there is no evidence of material selling by existing holders of above-ground stocks, with the exception of exchange-traded fund liquidation, which is minor compared with the amounts involved." Facilitating gold price suppression explains the concealment by Western central banks of their gold swaps and leases, as confirmed by the secret March 1999 report from the staff of the International Monetary Fund: http://www.gata.org/node/12016 But what explains the gold council's determined avoidance of this admission that central bank gold reserve data is false? Macleod's commentary is headlined "Chinese Gold Demand and the World Gold Council's Estimates" and it's posted at his Internet site, Finance and Economics, here: http://www.financeandeconomics.org/chinese-gold-demand-and-the-world-gol... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT How to profit with silver -- 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: http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp... Join GATA here: Vancouver Resource Investment Conference http://www.cambridgehouse.com/event/vancouver-resource-investment-confer... * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html 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: http://gata.org/node/wallstreetjournal 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: ADVERTISEMENT 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: http://www.goldmoney.com/?gmrefcode=gata | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Precious Metals: The Long-Term Perspective Posted: 22 Nov 2013 10:48 AM PST In our latest free essay, we focused on silver. We wrote: "the outlook for silver remains bearish and further declines should not surprise us." On the same day, after the essay was posted, silver declined sharply moving very ... Read More... | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Catherine Austin Fitts: Derivatives, Rates, Debt, Gold, Weather Wars, More.. Posted: 22 Nov 2013 10:45 AM PST from The Victory Report: Investment advisor Catherine Austin Fitts joins George Nory for a discussion about the top financial trends impacting Americans. She noted that after decades, interest rates are beginning to trickle upward, which could affect mortgages, credit cards, and the bond market. Catherine Austin Fitts starts around minute 8:30. | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold traders plan benchmark code of conduct Posted: 22 Nov 2013 10:37 AM PST Like, maybe, don't get caught? * * * By Jack Farchy www.ft.com/intl/cms/s/0/c18f828e-5392-11e3-9250-00144feabdc0.html The group of banks and traders that runs the London gold market is planning to tighten procedures to protect against manipulation in the wake of the Libor scandal. The London Bullion Market Association, whose members include Barclays, Goldman Sachs, and JPMorgan Chase, has hired lawyers to review whether the benchmarks it publishes conform to principles set out by the International Organisation of Securities Commissions (IOSCO). The banks and traders discussed the results of the review at a meeting this week and are working on a code of conduct for banks contributing to the benchmarks, according to three people familiar with the discussions. They are also working on plans to keep more detailed historical records of trading in the market. ... Dispatch continues below ... ADVERTISEMENT 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: http://www.goldmoney.com/?gmrefcode=gata London is the centre of the gold market, with some 175 million ounces, worth $220 billion at today's prices, changing hands daily on the over-the-counter trade, according to a 2011 survey by the LBMA. Benchmarks set in London are used across the gold industry. A large range of benchmarks has come under regulatory scrutiny after the discovery of widespread manipulation of Libor, the benchmark for borrowing in interbank lending. Iosco in July published a set of principles on methodology and governance of benchmarks. The Libor scandal has cost banks and brokers $3.5 billion in regulatory fines, and some experts believe the brewing controversy around alleged foreign exchange manipulation could be even costlier, with regulators on three continents now investigating. "After what's been happening with foreign exchange and Libor, it's only prudent to review your processes and governance around those benchmarks," said one person with knowledge of the gold industry's discussions. The UK's Financial Conduct Authority is looking at gold fixings as part of a wider review of how well benchmark rates work in conjunction with securities regulators around the world, according to people familiar with the matter. But executives at major gold traders said that they had so far had minimal contact on the subject with the regulator. "At some point the authorities are going to be turning their attention to some of our benchmarks under the umbrella of looking at all benchmarks," said one person close to the LBMA. "We want to make sure we're prepared when they do that." There are several gold price benchmarks set in London. The main benchmark is set twice a day by a small group of banks, in a process known as the "London gold fixing." Unlike Libor, however, the fixing is based on trading activity, rather than theoretical quotes. A second set of benchmarks is produced by the LBMA for gold forward rates, known as "GOFO." Like Libor, GOFO is based on the average of a set of price quotes by members; however, unlike Libor, banks can be obliged to trade at the prices they quote. Join GATA here: Vancouver Resource Investment Conference http://www.cambridgehouse.com/event/vancouver-resource-investment-confer... * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html 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: http://gata.org/node/wallstreetjournal 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: ADVERTISEMENT How to profit with silver -- 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: http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp... | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Detroit’s Bankruptcy According to Sesame Street Posted: 22 Nov 2013 10:27 AM PST "We've had amazing human experiments throughout history," Peter told us yesterday over Pinot Grigio and Yuengling. We were discussing the topic that has had us preoccupied for many months: Who improves peoples' standard of living? Is it government… entrepreneurs…some combination of both? "North and South Korea… West and East Germany… Hong Kong and China…" Pete continued, "in each case, geographic lines were just arbitrarily drawn… and two completely opposite social and economic systems were set up." "We learned a few things from these experiments, too. No one left West Germany for East. No reports were made of South Koreans tiptoeing through landmines to get to North Korea. And if people from Hong Kong went to China at all it was probably to see the Great Wall… and maybe take photos of poor farmers like they would zoo animals." Why was that? we wondered as we took a few sips of our wine. "Maybe cities are a good place to look for answers", Pete offered. "They're like miniature economies all to themselves. They're a dense grouping of capital — physical, human and social. And there are a wide range of them. Some good… and some not." Hrm… We kicked the idea around some more and only came up with more questions So, we finished our drinks and left the bar. Then, this morning, while perusing the UK's Guardian, the following headline caught our attention: "Detroit accused of exaggerating $18bn debts in push for bankruptcy" Digging in, we read that Detroit pensioners, whose benefits ballooned to a $3.5 billion liability could be cut down to 16 cents on the dollar. Go figure, the report said pensioners don't like that very much. They argue that yes, $3.5 billion is a tidy sum of debt to pay off… but it's only bad because the city's income is so low. "The real issue for Detroit" according to Walter Turberville from the Demos think tank, "is not its debts but declining revenues as a result of its rapidly falling population. The city’s had close to 2 million residents in 1950 and 714,000 in 2010. During the recession, unemployment and the property crash exacerbated Detroit’s revenue woes. Since 2008 the city’s revenues have fallen by over 20%. This year it will have a budget shortfall of $198 million." But if there's a budget shortfall… it wasn't for lack of city hall trying to increase revenue. In fact, it may have been revenue grabbing that was the culprit for budget shortfalls in the first place. As we wrote in these pages back in July, when Detroit first declared bankruptcy:
Here's a comparison of the effective property tax rates in Detroit… versus the average across 50 U.S. cities. We're sure it has absolutely nothing to do with Detroit's declining population:
What was that song from Sesame Street? One of These Things is Not Like the Others? Heh. Hold onto that for a moment… Something else crossed our radar this morning that fits in nicely at this point: "French farmers snarled traffic into Paris as they drove tractors onto highways to protest against taxes and new regulations" wrote Bloomberg's Gregory Viscusi this morning. "The action is the latest in tax revolts in France, which in recent weeks has seen horse-riding clubs, truckers and small retail outlets protesting against increased levies by President Francois Hollande's government." Heh… France, like Detroit also has the problem of too much deb…err, excuse us, not enough revenue. We recall when we lived in France. The politics of debt and taxes was so ingrained in their society that there was a general strike or greve generale what seemed like every other day. Here was a picture taken on the scene of one:
These things were so common that kids used to actually look forward to them. They didn't even understand the issues. To them, it was an opportunity grill chorizo in the back of their trucks while blasting technopop right outside of our office on the rue Rivoli. The strikers were happy to not be working even if their strikes didn't work. And everyone else? They were more or less annoyed that they could travel on the rue Rivoli because of it. Seems like not much has changed. In France, the top tax rate is 75%. Back in 2011, nearly 12,000 families paid that rate… another 8,000 families paid more than 100% of their income in taxes because of a one-time levy. Maybe that explains the riots. It might also explain why in 2011, there were 10,456 Frenchmen registered as residents of Hong Kong. It used to be that the French headed westward when they wanted to escape taxes. Now, apparently Asia is increasingly becoming the preferred destination. According to the French Consulate in Shanghai, 40% of their expatriates were working under a local contract in 2008; they were 55% in 2012. Local contracts allowed the expat to stay in the country after their work contract was up. The larger lesson we've taken away from it all? Whether it's Detroit’s population decline or French expatriation, if you expropriate them… they will go (and those left will riot). As the debt piles higher… we expect that expropriation will be the go to strategy for cash-strapped governments. Luckily for innovators, attracting capital even if the owners of it have been driven out of town. Regards, Addison Wiggin Ed. Note: In the end, Detroit and France each have their own story to tell, and their own lessons to impart. Stay tuned for more on these and other developing stories in The Daily Reckoning email edition. Sign up for FREE, right here. | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 22 Nov 2013 10:18 AM PST Would Einhorn and Paulson please hurry up and capitulate? Oh, thought not... CAPITULATION: the act or moment of surrender, of giving up, writes Adrian Ash at BullionVault. In finance, capitulation is when, after watching prices go against them, people finally throw in the towel. And typically, in the big sweep of things, you need capitulation to mark the end of that trend. Because only when the last bull takes all the losses he can and has sold – or the last bear has given up waiting for a crash and bought – can the market turn itself around. London's would-be homebuyers, for instance. Sitting out the surge in prices, a friend who always thought the bubble MUST burst at some point has just given in, and bought a flat. Gulp! On the other side of the hill, and after getting beaten down by months and now years of falling prices, big-name gold investors are finally throwing in the towel, too. Well, kinda. "This year hasn't been good for gold," said David Einhorn, fresh-faced card shark and hedge fund manager at Greenlight Capital, to CNBC on Thursday. Building his fund's gold investment since 2006, Einhorn switched it in 2009 to physical, allocated gold just like you trade on BullionVault. Because "at a minimum" it would save him money compared to ETF trust funds. Today he's not buying more. Which is capitulation of a sort. But Einhorn isn't selling. "Just in case something goes really, really, haywire." Also failing to capitulate, and sticking with gold, is the biggest bull of them all, John Paulson. Head of the imaginatively named Paulson & Co., his hedge funds' owned $4.6bn of the giant SPDR Gold Trust just before gold peaked in mid-2011. Halving his holding in that fund (ticker: GLD) as prices crashed this spring, however, Paulson kept it flat between July and October. He ended the third quarter with GLD stock worth $1.3 billion. And this week, says Bloomberg, he reportedly told clients that he wouldn't personally buy gold right now. Because the inflation story he's expected for the last five and six years simply hasn't shown up. This, we guess, is as good a sign for gold (and by extension, silver) as we've had all year. Because "Gold bugs die hard," as the New York Times said back in June 1999. It's worth re-reading that story today. If only for Jean-Marie Eveillard's close brush with closing his legendary gold fund. That was amid deafening reasons to quit the market. It was also just before gold prices bottomed at $250 per ounce, and turned 7 times higher as the financial world, in Einhorn's phrase above, "went haywire". Today again, "People are finding it hard to find a reason to own gold," one analyst tells the Wall Street Journal. But how about insurance, Lehman Brothers, or record-high peacetime Western debt levels? All you need is an attention span longer than a goldfish's. And deep pockets, of course, to carry the financial loss which all gold and silver bulls who failed also to invest in the stockmarket in 2013 are now wearing. Insurance pays nothing when nothing goes wrong. That doesn't mean you don't need it. But it does make capitulation all the more tempting when stockmarkets are setting new record highs but you missed out. And the thing with insurance, remember, is you also need to own something to insure. Otherwise, you might wind up just paying the premiums. | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 22 Nov 2013 10:18 AM PST Would Einhorn and Paulson please hurry up and capitulate? Oh, thought not... CAPITULATION: the act or moment of surrender, of giving up, writes Adrian Ash at BullionVault. In finance, capitulation is when, after watching prices go against them, people finally throw in the towel. And typically, in the big sweep of things, you need capitulation to mark the end of that trend. Because only when the last bull takes all the losses he can and has sold – or the last bear has given up waiting for a crash and bought – can the market turn itself around. London's would-be homebuyers, for instance. Sitting out the surge in prices, a friend who always thought the bubble MUST burst at some point has just given in, and bought a flat. Gulp! On the other side of the hill, and after getting beaten down by months and now years of falling prices, big-name gold investors are finally throwing in the towel, too. Well, kinda. "This year hasn't been good for gold," said David Einhorn, fresh-faced card shark and hedge fund manager at Greenlight Capital, to CNBC on Thursday. Building his fund's gold investment since 2006, Einhorn switched it in 2009 to physical, allocated gold just like you trade on BullionVault. Because "at a minimum" it would save him money compared to ETF trust funds. Today he's not buying more. Which is capitulation of a sort. But Einhorn isn't selling. "Just in case something goes really, really, haywire." Also failing to capitulate, and sticking with gold, is the biggest bull of them all, John Paulson. Head of the imaginatively named Paulson & Co., his hedge funds' owned $4.6bn of the giant SPDR Gold Trust just before gold peaked in mid-2011. Halving his holding in that fund (ticker: GLD) as prices crashed this spring, however, Paulson kept it flat between July and October. He ended the third quarter with GLD stock worth $1.3 billion. And this week, says Bloomberg, he reportedly told clients that he wouldn't personally buy gold right now. Because the inflation story he's expected for the last five and six years simply hasn't shown up. This, we guess, is as good a sign for gold (and by extension, silver) as we've had all year. Because "Gold bugs die hard," as the New York Times said back in June 1999. It's worth re-reading that story today. If only for Jean-Marie Eveillard's close brush with closing his legendary gold fund. That was amid deafening reasons to quit the market. It was also just before gold prices bottomed at $250 per ounce, and turned 7 times higher as the financial world, in Einhorn's phrase above, "went haywire". Today again, "People are finding it hard to find a reason to own gold," one analyst tells the Wall Street Journal. But how about insurance, Lehman Brothers, or record-high peacetime Western debt levels? All you need is an attention span longer than a goldfish's. And deep pockets, of course, to carry the financial loss which all gold and silver bulls who failed also to invest in the stockmarket in 2013 are now wearing. Insurance pays nothing when nothing goes wrong. That doesn't mean you don't need it. But it does make capitulation all the more tempting when stockmarkets are setting new record highs but you missed out. And the thing with insurance, remember, is you also need to own something to insure. Otherwise, you might wind up just paying the premiums. | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 22 Nov 2013 10:18 AM PST Would Einhorn and Paulson please hurry up and capitulate? Oh, thought not... CAPITULATION: the act or moment of surrender, of giving up, writes Adrian Ash at BullionVault. In finance, capitulation is when, after watching prices go against them, people finally throw in the towel. And typically, in the big sweep of things, you need capitulation to mark the end of that trend. Because only when the last bull takes all the losses he can and has sold – or the last bear has given up waiting for a crash and bought – can the market turn itself around. London's would-be homebuyers, for instance. Sitting out the surge in prices, a friend who always thought the bubble MUST burst at some point has just given in, and bought a flat. Gulp! On the other side of the hill, and after getting beaten down by months and now years of falling prices, big-name gold investors are finally throwing in the towel, too. Well, kinda. "This year hasn't been good for gold," said David Einhorn, fresh-faced card shark and hedge fund manager at Greenlight Capital, to CNBC on Thursday. Building his fund's gold investment since 2006, Einhorn switched it in 2009 to physical, allocated gold just like you trade on BullionVault. Because "at a minimum" it would save him money compared to ETF trust funds. Today he's not buying more. Which is capitulation of a sort. But Einhorn isn't selling. "Just in case something goes really, really, haywire." Also failing to capitulate, and sticking with gold, is the biggest bull of them all, John Paulson. Head of the imaginatively named Paulson & Co., his hedge funds' owned $4.6bn of the giant SPDR Gold Trust just before gold peaked in mid-2011. Halving his holding in that fund (ticker: GLD) as prices crashed this spring, however, Paulson kept it flat between July and October. He ended the third quarter with GLD stock worth $1.3 billion. And this week, says Bloomberg, he reportedly told clients that he wouldn't personally buy gold right now. Because the inflation story he's expected for the last five and six years simply hasn't shown up. This, we guess, is as good a sign for gold (and by extension, silver) as we've had all year. Because "Gold bugs die hard," as the New York Times said back in June 1999. It's worth re-reading that story today. If only for Jean-Marie Eveillard's close brush with closing his legendary gold fund. That was amid deafening reasons to quit the market. It was also just before gold prices bottomed at $250 per ounce, and turned 7 times higher as the financial world, in Einhorn's phrase above, "went haywire". Today again, "People are finding it hard to find a reason to own gold," one analyst tells the Wall Street Journal. But how about insurance, Lehman Brothers, or record-high peacetime Western debt levels? All you need is an attention span longer than a goldfish's. And deep pockets, of course, to carry the financial loss which all gold and silver bulls who failed also to invest in the stockmarket in 2013 are now wearing. Insurance pays nothing when nothing goes wrong. That doesn't mean you don't need it. But it does make capitulation all the more tempting when stockmarkets are setting new record highs but you missed out. And the thing with insurance, remember, is you also need to own something to insure. Otherwise, you might wind up just paying the premiums. | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Audio: Short-Term Shortages in Silver Posted: 22 Nov 2013 10:01 AM PST David Jollie of Mitsui explains why and how silver shortages can develop... SILVER SHORTAGES have been widely reported on the internet in 2013. But does that mean there's a true shortage in silver worldwide? Market-renowned analyst David Jollie, speaks here to Miguel Perez-Santalla – vice-president at BullionVault in New York – about how the perception of silver shortages arise. In this edition of Miguel's weekly New York Markets Live, David Jollie also talks about how the professional wholesale silver market operates, plus the 2013 activity in silver trading across the various consumer and industrial markets worldwide. Mining production costs are also a concern at current silver prices. But David is "an optimist" he says, and sees no reason for prices not to rally from here to New Year 2014 as the US Federal Reserve fails to taper its QE money printing anytime soon. Hear the full 30-minute show now... New Business Podcasts with New York Markets Live on BlogTalkRadio | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Audio: Short-Term Shortages in Silver Posted: 22 Nov 2013 10:01 AM PST David Jollie of Mitsui explains why and how silver shortages can develop... SILVER SHORTAGES have been widely reported on the internet in 2013. But does that mean there's a true shortage in silver worldwide? Market-renowned analyst David Jollie, speaks here to Miguel Perez-Santalla – vice-president at BullionVault in New York – about how the perception of silver shortages arise. In this edition of Miguel's weekly New York Markets Live, David Jollie also talks about how the professional wholesale silver market operates, plus the 2013 activity in silver trading across the various consumer and industrial markets worldwide. Mining production costs are also a concern at current silver prices. But David is "an optimist" he says, and sees no reason for prices not to rally from here to New Year 2014 as the US Federal Reserve fails to taper its QE money printing anytime soon. Hear the full 30-minute show now... New Business Podcasts with New York Markets Live on BlogTalkRadio | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Alasdair Macleod’s Weekly Market Roundup Posted: 22 Nov 2013 09:55 AM PST This week has been very uncomfortable for long-term gold investors. Trading in derivative markets has become thin, as evidenced by sustained intraday periods of little price movement, with a tendency to drift lower. This relative calm was shattered on Thursday ahead of the release of the Fed’s FOMC minutes when a sale of only 1500 futures contracts (4.67 tonnes) was sufficient to eliminate all bids in the market. The subsequent fall drove the gold price below the October lows, as shown in the chart below. The consensus in the investment community is uniformly bearish. Closer questioning boils it down to everyone agreeing for the same reason: the trend is down, the charts are terrible, and therefore one has to be a bear. This level of consensus, long on herd instinct and devoid of any solid reasoning, is however typical of extremes of market sentiment. The event of the week for which the bears were praying was the release of the FOMC minutes. They actually said nothing new, beyond reaffirming both the desire to reduce asset purchases as and when circumstances permit, and the contradictory commitment to current ultra-low interest rates. Of greater relevance perhaps is the threat to “twist” that tapering implies: in other words yields on bonds might be free to rise relative to close-to-zero overnight rates. And if bond yields rise, that is bad for gold, or so the bears argue. Furthermore, we must be rapidly approaching the point where there is very little gold left in the West to supply the voracious Asian appetite. So both valuation and physical demand are totally ignored. There are many similarities between today’s market sentiment and that of September 1999, when the gold price jumped 27% in just two weeks. The bullion banks were bearish with gold at $255. The consensus then was that it was going to go lower perhaps to $220, stock markets were hitting new highs with the dot-com boom, and price inflation was not a problem. The bear squeeze in September 1999 would have been more dramatic had the Bank of England and the Fed not used their still considerable bullion stocks to intervene and rescue the bullion banks from their short positions. If a similar bear squeeze develops today, it is unlikely the Western central banks will have enough gold available to control the market. Note: This originally appeared in GoldMoney News. P.S. Readers of The Daily Reckoning email edition get the story not being told and crucial tips to protect and grow their wealth. Click here now to subscribe. | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 22 Nov 2013 09:55 AM PST
- Hugh Hendry First David Rosenberg, now Hugh Hendry: one after another the bears are throwing in the towel. As Investment Week reports, speaking at Harrington Cooper's 2013 conference this morning, Hugh Hendry said "he is no longer fighting the two-way feedback loop which is continuing to boost risk assets." The reflexive feedback loop envisioned by Hendry is the following and centres on the currency war being played out between the US and China, "in which US QE prompts dollar-denominated investment to head to China, and China fights the resulting upwards pressure on its currency by manufacturing an investment boom. Hendry said this creates a "global supply glut", leading to falling US inflation expectations (as this supply far outweights US domestic demand) - which in turn prompts the Federal Reserve to loosen policy once again." Rinse. Repeat. Of course, there is a limitation here as we have explained previously, namely the amount of "high-quality collateral" which the Fed and the other central banks can and are rapidly soaking up, in the process destroying bond market liquidity, but that "discovery" will be made by the Fed far too late, despite even the repeated warnings of the Treasury Borrowing Advisory Committee. And since Hendry is constrained by daily, monthly and annual P&L, he simply does not have luxury of waiting for the "fat tail" event, which incidentally will be quite terminal and thus hardly profitable for anyone exposed to fiat-denominated assets. So the end result is that Hugh Hendry is merely the latest bear to throw in the towel: "I can no longer say I am bearish. When markets become parabolic, the people who exist within them are trend followers, because the guys who are qualitative have got taken out," Hendry said. "I have been prepared to underperform for the fun of being proved right when markets crash. But that could be in three-and-a-half-years' time." "I cannot look at myself in the mirror; everything I have believed in I have had to reject. This environment only makes sense through the prism of trends." So what does the newly christened "bull" like?
In other words the "dash for trash" mentality, which we predicted in September 2012 when we forecast that the most shorted stocks would outperform the market (and they have), has just won another convert. That, and of course, Fed-balance sheet induced momentum chasing, in which the only thing that matters is one's view how many "assets" the Fed will hold at any point in the future (see from April: "Bernanke & Kuroda Capital LLC: Overweight S&P 500, 2013 Target 1950"). Finally, Hendry's "come to Bernanke" moment does not come easily:
Sadly, his last statement is just the latest confirmation that in the New Centrally-Planned Normal, FOMO or Fear of Missing Out (the trend, the media appearance, the herd, the year end bonus, you name it) is indeed the new POMO as we warned in May. And like that, everyone is now on the same side of the boat. | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Bearishness, naked shorts at extremes again in gold, Maguire says Posted: 22 Nov 2013 09:50 AM PST 12:50p ET Friday, November 22, 2013 Dear Friend of GATA and Gold: London metals trader Andrew Maguire tells King World News that extremes in bearishness and naked short positions have been reached again in the gold market, prompting him to expect an imminent reversal in the price. An excerpt from the interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/11/22_M... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Jim Sinclair Plans Seminar in Boston on Dec. 7 Gold advocate and mining entrepreneur Jim Sinclair will hold his next seminar from 1 to 5 p.m. on Saturday, December 7, in the Boston suburb of Cambridge, Mass., at the Boston Marriott Cambridge at 50 Broadway in Cambridge. The admission fee will be $50. Details are posted at Sinclair's Internet site, JSMineSet, here: http://www.jsmineset.com/2013/11/14/boston-qa-session-announced/ Join GATA here: Vancouver Resource Investment Conference http://www.cambridgehouse.com/event/vancouver-resource-investment-confer... * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html 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: http://gata.org/node/wallstreetjournal 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: | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Maguire - Gold War Heats Up As Shocking Events Taking Place Posted: 22 Nov 2013 08:40 AM PST  On the heels of some wild trading action this week, London metals trader Andrew Maguire spoke with KWN about the shocking events taking place as the gold war heats up, as well as some extraordinary information about what to expect in the gold market going forward. Below is what Maguire had to say in part I of his stunning interview.This posting includes an audio/video/photo media file: Download Now | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Alasdair Macleod: Paper sellers still in charge of gold market Posted: 22 Nov 2013 08:37 AM PST 11:40a ET Friday, November 22, 2013 Dear Friend of GATA and Gold: GoldMoney research director Alasdair Macleod notes today that "paper sellers remain in charge" in the gold market and that market sentiment for gold could hardly be worse, just as it was in 1999 when the great bear squeeze developed: http://www.goldmoney.com/research/research-archive/market-report-paper-s... Macleod also analyzes gold's price relationship with commodities, which he finds to be close in regard to oil but not so much with commodities generally: http://www.goldmoney.com/research/research-archive/gold-and-commodities?... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT How to profit with silver -- 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: http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp... Join GATA here: Vancouver Resource Investment Conference http://www.cambridgehouse.com/event/vancouver-resource-investment-confer... * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html 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: http://gata.org/node/wallstreetjournal 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: ADVERTISEMENT 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: http://www.goldmoney.com/?gmrefcode=gata | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Goldman forecasts at least 15% declines for gold, iron ore Posted: 22 Nov 2013 08:00 AM PST Goldman reckons the price pressures will mostly become visible later in 2014, with bullion, iron ore, copper and soybeans to drop at least 15%. | |||||||||||||||||||||||||||||||||||||||||||||||||||
| GoldCore's O'Byrne notes continuing signs of gold market manipulation Posted: 22 Nov 2013 07:58 AM PST 10:55a ET Friday, November 22, 2013 Dear Friend of GATA and Gold: Mark O'Byrne's daily market commentary at GoldCore yesterday noted that "the peculiar trading action" in gold "suggests that certain banks may be manipulating the gold price in the same way that they rigged LIBOR and are alleged to have rigged foreign exchange markets." It's posted at GoldCore here: http://www.goldcore.com/goldcore_blog/comex-halts-gold-trading-twice-one... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT How to profit with silver -- 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: http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp... Join GATA here: Vancouver Resource Investment Conference http://www.cambridgehouse.com/event/vancouver-resource-investment-confer... * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html 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: http://gata.org/node/wallstreetjournal 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: ADVERTISEMENT 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: http://www.goldmoney.com/?gmrefcode=gata | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Verkoopt Venezuela zijn Goud aan Goldman Sachs? Posted: 22 Nov 2013 07:48 AM PST Op Zerohedge.com kwam ik het onderstaande artikel tegen. Wil Goldman Sachs zich een “beetje” goud verzekeren? Venezuela's Central Bank and Goldman Sachs are ready to sign an agreement to swap or exchange international gold reserves, with a start date … Continue reading | |||||||||||||||||||||||||||||||||||||||||||||||||||
| China Is Getting Closer To Pulling The Plug On The Dollar Posted: 22 Nov 2013 06:53 AM PST "...the reason for living was to get ready to stay dead for a long time" - Addie from, "As I Lay Dying by William FaulknerMany of you are aware by now that China has been methodically eradicating the use of the dollar in its bi-lateral trade with most of its largest trading partners. It has put in place large yuan-based currency swaps which are now used to settle trade with most of Asia and some large western hemisphere countries, including France and the UK. You are also aware of the enormous amount of gold that China has been importing and accumulating (it's funny how observant research analysts who invest money for a living come up with the data that shows this but it somehow escapes the detection of the World Gold Council and GFMS. China is not only currently importing gold at a rate equal to the 2013 total global gold mine production, it also produces 400 tonnes internally that disappears down the "rabbit hole" there. Now it looks like China has officially made public a policy of reducing its direct exposure to the amount of dollars in its foreign currency reserves: The People's Bank of China said the country does not benefit any more from increases in its foreign-currency holdings, adding to signs policy makers will rein in dollar purchases that limit the yuan's appreciation - LINKI have been thinking for quite some time - dating back to 2003, to be exact - that China's end game, "check mate" move would be to eventually eliminate the dollar from its trade activities and roll out a new currency that would be backed by gold. At the same time China would implement a huge revaluation of gold in yuan terms in order to establish the necessary market value of its gold hoard to create an effective backing of the new currency. Now, of course, it won't happen exactly like this but in order to envision how a global currency reset will occur we need to think along those lines. However the mechanism is effected, the result will be a massive devaluation of the dollar. This is something that we all know is an inevitable event and that the natural forces of the market would eventually enforce, but something that the U.S. elitists have been deferring by means of insidious political and military-based coercion. And in order for it occur it will likely require that China tosses a straw on the camel's back in order to help the natural market forces override the U.S. repression of them. There's really no way of determining a time-frame for the actual event so please don't ask me my view of when it will happen. What I will say is that we can observe certain "environmental" signals to let us know whether its sooner or later. Based on the blatant and extreme corruption exhibited by our political and business leaders and based on what I sense is desperation and unrest being reflected by a growing number of dissatisfied middle class people ("middle class" here is defined as anyone who does not have enough liquid wealth to buy their own politician, so 99.9% of us), I suspect that "the event" is a lot closer than most us can possibly discern. And it looks like the U.S. dollar and the American way of life is getting ready to stay dead for a long time. | |||||||||||||||||||||||||||||||||||||||||||||||||||
| China Is Getting Closer To Pulling The Plug On The Dollar Posted: 22 Nov 2013 06:53 AM PST "...the reason for living was to get ready to stay dead for a long time" - Addie from, "As I Lay Dying by William FaulknerMany of you are aware by now that China has been methodically eradicating the use of the dollar in its bi-lateral trade with most of its largest trading partners. It has put in place large yuan-based currency swaps which are now used to settle trade with most of Asia and some large western hemisphere countries, including France and the UK. You are also aware of the enormous amount of gold that China has been importing and accumulating (it's funny how observant research analysts who invest money for a living come up with the data that shows this but it somehow escapes the detection of the World Gold Council and GFMS. China is not only currently importing gold at a rate equal to the 2013 total global gold mine production, it also produces 400 tonnes internally that disappears down the "rabbit hole" there. Now it looks like China has officially made public a policy of reducing its direct exposure to the amount of dollars in its foreign currency reserves: The People's Bank of China said the country does not benefit any more from increases in its foreign-currency holdings, adding to signs policy makers will rein in dollar purchases that limit the yuan's appreciation - LINKI have been thinking for quite some time - dating back to 2003, to be exact - that China's end game, "check mate" move would be to eventually eliminate the dollar from its trade activities and roll out a new currency that would be backed by gold. At the same time China would implement a huge revaluation of gold in yuan terms in order to establish the necessary market value of its gold hoard to create an effective backing of the new currency. Now, of course, it won't happen exactly like this but in order to envision how a global currency reset will occur we need to think along those lines. However the mechanism is effected, the result will be a massive devaluation of the dollar. This is something that we all know is an inevitable event and that the natural forces of the market would eventually enforce, but something that the U.S. elitists have been deferring by means of insidious political and military-based coercion. And in order for it occur it will likely require that China tosses a straw on the camel's back in order to help the natural market forces override the U.S. repression of them. There's really no way of determining a time-frame for the actual event so please don't ask me my view of when it will happen. What I will say is that we can observe certain "environmental" signals to let us know whether its sooner or later. Based on the blatant and extreme corruption exhibited by our political and business leaders and based on what I sense is desperation and unrest being reflected by a growing number of dissatisfied middle class people ("middle class" here is defined as anyone who does not have enough liquid wealth to buy their own politician, so 99.9% of us), I suspect that "the event" is a lot closer than most us can possibly discern. And it looks like the U.S. dollar and the American way of life is getting ready to stay dead for a long time. | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Examining Silver and Deflation Posted: 22 Nov 2013 06:44 AM PST If we think historically, even many mainstream economists understand gold and silver primarily as deflation hedges. Although the example of the 1970s is the most recent example of gold and silver as inflation hedges, throughout history ... Read More... | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 22 Nov 2013 06:28 AM PST The relationship between gold and commodities is essentially a simple one. If you look at long-term charts of oil priced in gold for example, you find that they have been more constant than oil priced in paper currencies. In 1965, gold was at $35 and oil was priced at $2.90 per barrel, so priced in gold oil was 0.083 ounces. Today gold is $1250 and oil is $95, so oil is 0.076 ounces. Therefore the price of oil in terms of gold has hardly changed over nearly forty years compared with it rising 33 times measured in US dollars.What has happened is the purchasing power of the dollar has fallen. Since 1965 the quantity of gold in above ground stocks has doubled, which other things being equal explains a rise in the price of oil in gold terms. At the same time, the Fiat Money Quantity (a measure of total dollar cash and deposits in the banking system) has increased 33 times, which again is broadly consistent with the price of oil measured in USD increasing substantially. There are significant fluctuations in price from the oil side as well. Before the Lehman crisis in mid-2008, oil peaked at $140 before collapsing to under $40by the year-end, or in gold terms, 0.14oz to 0.05oz, so there is no precision in these relationships. However, so long as economic conditions are roughly stable, over time it will be true that gold, in paper currency terms, will tend to move in line with commodity prices. For this reason many analysts make the mistake of tying gold closely to the general commodity cycle. This trend assumption ignores the monetary role of gold at a time of great currency inflation and systemic risk. It is hardly surprising, since so far as I'm aware not one commodity analyst even considers the possibility that changes in commodity prices might be due to changes in the purchasing power of the currency. For this reason, they will either use technical analysis or will focus on prospective demand for commodities in the light of the global economic outlook. Both these approaches are inherently subjective. The monetary situation today is at an extreme for which the consensus is not prepared. Let us take two simple facts: governments are being funded by their central banks at wholly artificial interest rates; and the global banking system, exposed to government bonds, interest rate swaps and highly-indebted customers, would face a renewed crisis if interest rates and bond yields were suddenly normalised. Not only has there been significant deviation between gold and commodity prices in the past, but the past is no guide to the current position. Currency inflation is now a significant and escalating problem, and those that think gold will continue to act like any other commodity are almost certainly mistaken. | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock Market Boom Sees Gold Down 25% in 2013 Posted: 22 Nov 2013 06:01 AM PST FOUR-MONTH lows in gold continued vs. the Dollar and Euro in London on Friday, with the metal heading for its lowest weekly finish in British Pounds since early August 2010. World stock markets rose meantime, extending 2013's 30% gain on the MSCI index, as did commodities and government bond prices, after the Dow Jones index in New York ended last night above 16,000 for the first time. | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Market report: Paper sellers remain in charge Posted: 22 Nov 2013 06:00 AM PST This week has been very uncomfortable for long-term gold investors. Trading in derivative markets has become thin, as evidenced by sustained intraday periods of little price movement, with a tendency to drift lower.This relative calm was shattered on Thursday ahead of the release of the Fed's FOMC minutes when a sale of only 1500 futures contracts (4.67 tonnes) was sufficient to eliminate all bids in the market. The subsequent fall drove the gold price below the October lows, as shown in the chart below.
The consensus in the investment community is uniformly bearish. Closer questioning boils it down to everyone agreeing for the same reason: the trend is down, the charts are terrible, and therefore one has to be a bear. This level of consensus, long on herd instinct and devoid of any solid reasoning, is however typical of extremes of market sentiment. The event of the week for which the bears were praying was the release of the FOMC minutes. They actually said nothing new, beyond reaffirming both the desire to reduce asset purchases as and when circumstances permit, and the contradictory commitment to current ultra-low interest rates. Of greater relevance perhaps is the threat to "twist" that tapering implies: in other words yields on bonds might be free to rise relative to close-to-zero overnight rates. And if bond yields rise, that is bad for gold, or so the bears argue. This simple logic is blind to two overriding facts: adjusted for the increase in fiat currency, gold is now at a discount of 34% to where it was pre-Lehman crisis, and things have if anything become far worse since then (see the chart below). Furthermore, we must be rapidly approaching the point where there is very little gold left in the West to supply the voracious Asian appetite. So both valuation and physical demand are totally ignored.
There are many similarities between today's market sentiment and that of September 1999, when the gold price jumped 27% in just two weeks. The bullion banks were bearish with gold at $255. The consensus then was that it was going to go lower perhaps to $220, stock markets were hitting new highs with the dot-com boom, and price inflation was not a problem. The bear squeeze in September 1999 would have been more dramatic had the Bank of England and the Fed not used their still considerable bullion stocks to intervene and rescue the bullion banks from their short positions. If a similar bear squeeze develops today, it is unlikely the Western central banks will have enough gold available to control the market. Next week The following list is of expected statistics for next week. Monday UK: Nationwide House Prices, BBA Mortgage Approvals. Tuesday US: Building Permits, Housing Starts, S&P Case-Shiller Home Price Index, Consumer Confidence. Wednesday UK: GDP (2nd est.), CBI Distributive Trades. Thursday Eurozone: M3 Money Supply, Business Climate Index, Consumer Sentiment, Industrial Sentiment. Friday Japan: Construction Orders, Housing Starts. | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 4 Fantastic Charts Showing Gold Is Nearing A Major Turn Posted: 22 Nov 2013 05:59 AM PST 22-Nov (KingWorldNews) — On the heels of some wild trading in global markets and with gold and silver under recent pressure, today top Citi analyst Tom Fitzpatrick sent King World News 4 fantastic charts which show that gold is nearing a major turning point. Fitzpatrick: …So while gold is just consolidating at the moment, we still believe that it's formed a base here around this $1,180 level, but its ability to move significantly higher is compromised as long as the equity market continues to do well. At a point in time where the equity market finally does struggle, and it will happen, that is going to be the point where gold will really start to come into its own once again. [source] PG View: Eric King asks Fitzpatrick, “are we getting close to the end of the equity run?" "It feels that way,” responds Fitzpatrick. It seems that Mr. Fitzpatrick’s instincts are telling him the recent gains in the stock market may not be sustainable. In analysis from earlier in the week, our own Jonathan Kosares advises to Trust Your Instincts when it comes to shares. | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 22 Nov 2013 05:50 AM PST GOLD BULLION prices held at 4-month lows against the Dollar and Euro in London trade Friday, and headed for the lowest weekly finish in British Pounds since early August 2010. World stock markets rose meantime, extending 2013's 30% gain on the MSCI index, as did commodities and government bond prices, after the Dow Jones index in New York ended last night above 16,000 for the first time. "People are finding it hard to find a reason to own" gold bullion, the Wall Street Journal quotes one analyst today. "Precious metals markets," says David Govett at brokers Marex Spectron, also speaking to the WSJ, "are out of favor with investors and set to stay that way," Silver tracked gold's Dollar-price drop of 3.6% to $1245 this week, failing to hold a rally above $20 per ounce lunchtime Friday. Averaging 14% annual gains since 1999, the Sterling price of gold bullion has so far dropped 25% in 2013, dipping below £770 per ounce overnight. New data from the International Monetary Fund meantime showed central banks as a group adding slightly to their gold bullion reserves in October. Turkey led the rise, with nearly 13 tonnes being added – most likely by commercial banks putting more client property on deposit, as part of their liquidity reserves – to the country's previous holdings of 491. Germany sold 3.4 tonnes from its 3,391 reserves, again for production of investment gold coin. The United States added 33 kilograms, the largest change to its world-leading 8,133-tonne hoard since the 840kg added in the third quarter of 2012. "Our bullish view [of gold prices] has proven incorrect," said Bank of America-Merrill Lynch technical strategist MacNeil Curry on Thursday, pointing to the drop through $1251 per ounce. Whilst $1270 will now "limit the topside," his chart analysis says, "[gold bullion] bears need a break [below] $1155 and $1087 to confirm a long-term top and secular turn in trend from bullish to bearish." Targeting gold bullion prices of $1150 per ounce into 2014, TD Securities analyst Mike Dragosits says "Spec positioning" in the futures market "could also precipitate an overshoot, with gold hitting sub-$1000/oz on an intraday basis." Speculative traders in the US gold futures market have this year built the biggest "short" bet against prices since the bear-market lows of 1999. "We will continue to watch Comex specs activity as a major contributing driver for this move," says TD's note. Gold bullion prices in India, formerly the world's No.1 consumer but now overtaken by China, pushed higher above international benchmarks Friday, reports Reuters. "Premiums are still on the higher side at about $120 per ounce," the newswire quotes All India Gems & Jewellery Federation chairman Haresh Soni. Thanks to the Indian government's strict anti-gold import rules, aimed at cutting the country's large trade deficit, "Still there is scarcity of gold," Soni adds. "This problem will continue for another 5-6 months till the elections." Gold bullion will meantime be traded between China's biggest banks in formal "swaps" contracts starting Monday, the National Interbank Funding Center said today. Used by large gold bullion owners and traders to raise cash, and with a small rate of interest typically offered to borrowers as an incentive, gold swaps hit the headlines in 2010 after European central banks were identified as the source of 349 tonnes swapped with the Bank for International Settlements during the 1st half of the year, raising cash amid the growing Eurozone debt crisis. Announcing a raft of reforms this week after the 3rd plenum of the current politburo, policymakers in Beijing have put China's gold-market liberalization at the heart of financial deregulation. US derivatives exchange the CME yesterday cut the margin payments needed to trade gold and silver futures contracts, halving the sharp hike made in June as bullion prices ended their worst quarterly drop in three decades. | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 22 Nov 2013 05:22 AM PST | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Chinese gold demand and the World Gold Council’s estimates Posted: 22 Nov 2013 05:19 AM PST There is considerable disagreement about Chinese gold demand, with delivery figures on the Shanghai Gold Exchange and import/export figures for Hong Kong suggesting the real totals are far higher than those published by the World Gold Council and Thompson-Reuters GFMS.Recently Eric Sprott of Sprott Global Resource Investments Limited tackled this issue and wrote an open letter to the WGC pointing out that import/export figures show far higher levels of gold demand than the WGC's estimates for Asia, particularly China, Hong Kong, Thailand, India and Turkey. The response is not on the WGC website, though it appears to be partially quoted elsewhere. It seems that Sprott and the WGC are trying to do two different things. Sprott is interested in how much gold is actually taken into a country net of exports, irrespective of its use category, taking the view that there can be no more accurate estimate of overall gold demand, irrespective of how it is used. The WGC is trying to identify how much gold is used for specific purposes, which given the opaqueness of the market means they will never track all of it down. Crudely put it is top-down versus bottom-up. To see how different the results can be let's look at the solid figures for China and Hong Kong for the first nine months of 2013 which are set out in the table below, before comparing the result with that of the WGC.
All these are published figures which we can assume to be accurate. Mainland China does not release import/export statistics for gold but we know what has been physically delivered through the Shanghai Gold Exchange, the monopoly physical market, and we know what Hong Kong imports exports and re-exports. We can also be reasonably certain that these figures exclude off-market government transactions, such as direct purchases from the mines of all China's gold production, given that Chinese-refined bars are never seen in circulation. Exports from Hong Kong refer to gold processed into a materially different form from that imported, typically jewellery; so exported to the Mainland they are additional to SGE deliveries. Re-exports refers to imports re-exported with no material processing, and therefore can be assumed to be bullion trans-shipped and destined for the SGE, ignoring for simplicity's sake that some may have bypassed the SGE and been sent directly to private buyers. Exports and re-exports to the rest of the world obviously must be deducted. The conclusion is that between them gold absorbed by private sector purchases in Hong Kong and China amount to at least 2,130.7 tonnes in the first nine months of this year, or 2,841 tonnes annualised. This compares with the WGC's estimates from their quarterly Gold Demand Trends of only 818.6 tonnes for the same period, or 1,091.5 annualised. Given the hard evidence of Hong Kong and SGE statistics it appears that the WGC's figures substantially understate the true position. Furthermore, any analysis of gold demand will fail to account for the increase in gold ownership not constrained by national boundaries. Estimates of China's demand also exclude government purchases of gold in foreign markets, and gold that may have been acquired and imported by wealthy Chinese from foreign locations without going through Hong Kong or the SGE. So without taking into account these extra factors China and Hong Kong's combined imports from the rest of the world exceeds all other mine supply by at least 580 tonnes on an annualised basis. It now becomes clear that without significant leasing by Western central banks total Asian demand could not be satisfied at current prices, because there is no evidence of material selling by existing holders of above-ground stocks, with the exception of ETF liquidation which is minor compared with the amounts involved. | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold 2014 - U.S. Dollar 30 Year Slide May Be Gold's New Life Posted: 22 Nov 2013 04:57 AM PST Today’s AM fix was USD 1,241.75, EUR 918.59 and GBP 766.75 per ounce. Yesterday’s AM fix was USD 1,248.50, EUR 929.64 and GBP 775.76 per ounce. Gold fell $1.50 or 0.12% yesterday, closing at $1,243.20/oz. Silver climbed $0.14 or 0.71% closing at $19.99/oz. Platinum rose $4.60 or 033% to $1,389.50/oz, while palladium climbed $3.78 or 0.53% to $714.75/oz. | |||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. Dollar Index ETF Trading Strategy Posted: 21 Nov 2013 10:42 PM PST We all know quantitative easing devalues the Dollar but contrary to that general statement it looks as though we could see the dollar index continue to rise for a few more weeks. If we analyze the chart of the Dollar ETF (UUP) it is clear that the short term momentum has turned up. The break above the down trend line and recent bounce off support bodes well for the dollar index. | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Final Plunge in Gold and Silver is Underway Posted: 21 Nov 2013 10:40 PM PST Two weeks ago we penned Gold Bear to end with a Bang, and noted the increasing probability that precious metals could be headed for a plunge to new lows ahead of a final major bottom. Two weeks later we continue to hold that view. The forthcoming charts present levels at which the more than two year old cyclical bear market could end. At the least, these support levels can provide a point at which short positions and hedges could be liquidated. | |||||||||||||||||||||||||||||||||||||||||||||||||||
| People To Lose Confidence In Dark Forces Ruling West & Japan Posted: 21 Nov 2013 09:01 PM PST  Today the man who predicted the recent takedown in the gold market ahead of time told King World News that people will lose confidence in the dark forces ruling the West and Japan. William Kaye, who 25 years ago worked for Goldman Sachs in mergers and acquisitions, also spoke about what all of this means for major markets, including gold. Below is what Kaye had to say in this fascinating and powerful interview.This posting includes an audio/video/photo media file: Download Now | |||||||||||||||||||||||||||||||||||||||||||||||||||
| When To Trade? My Algorithmic Trading System Shows You Posted: 21 Nov 2013 08:30 PM PST By Chris Vermeulen, TheGoldAndOilGuy Pre Algorithmic Trading System Analysis: This week has been a little wild as stocks pulled back due to headline news. The two big drops which took place on heavy volume sent market participants into an emotional state liquidating their long positions on fear of a collapse. Even though the stock market shows no sign of the trend reversing down, traders are jumpy and quick to lock in gains with any negative new. Sounds like a "Wall Of Worry" to me. Taking a look at the ES mini futures chart below which is a ten minute intraday chart. It is clear the recent pop in price is testing high volume resistance as seen on the chart with the blue horizontal bars. Also the previous pivot highs and consolidations on the chart highlighted in red also confirms there is price resistance at this level. Thursday's rally is likely ready for a little pullback or sideways consolidation at this point based on this information.
If we take a look at the Barchart Market Momentum index which is something I follow closely because it tells me when stocks have moved to far too fast in either direction. In simple terms, the market is either overbought or oversold when this chart reaches either extreme. When the market closes with this indicator in the overbought or oversold zone, you should expect a pause or 1-3 day reversal in the opposite direction. But keep in mind, when the trend is up, the only high probability zone to focus on is the oversold. We want to buy dips within an uptrend, and take partial profits or tighten our stops when the stock market is over extended to the upside. This is exactly what members and myself did today, locked in some profits and tightened our stops, well my Algorithmic Trading System told us to do it…
Logical Market Analysis Combined with Automated Algorithmic Trading System Reviewing the charts for high volume resistance levels, previous pivot highs and lows, and a close eye on the Barchart momentum index like we just did in this report is only the tip of the iceberg when it comes to complete market analysis. There are many other things one should analyze for precision market timing of the broad market. The stock market has several different forces at play which move price and using a type of analysis which I call INNER-Market Analysis allows us to capture all the market moving forces within one indicator. This February when my book is published on INNER-Market Analysis and algorithmic trading systems all this information will be available if you would like to learn more. Some other areas of the market which must be analyzed are trends, active cycles, volatility, volume flows, and market sentiment to name a few. Over the years I have been converting the way I analyze the market into an algorithmic trading system that catches each overbought and oversold market condition on specific chart timeframes. I have also implemented position and money management rules for the algorithm to trade in my brokerage account completely hands free which I must admit is the coolest feeling thing to experience. What is an algorithmic trading system? Take a look at the 30 minute algorithmic trading resultsSince Oct 30th the S&P500 index has been chopping around and shaking traders out of their long and short positions with intraday price whipsaws (nominal new highs and lows which runs the stops of the average market participant). The index is only risen by 1.2% in the last 23 days while my algorithmic trading system which trades the S&P 500 index futures (ES Mini) and/or (3x Leveraged ETFs UPRO & SPXU) has been pulling money out of the market at an incredible rate.
Remember these trades in the example chart above are just two types for algorithms trading within my system. There are 12 algo trading strategies covering all market conditions automatically managed in one complete solution.
Conclusion About Using an Algorithmic Trading System:Trading or investing for that matter is no easy task. And I know firsthand that even if one has a proven winning strategy it's almost impossible follow the rules and catch every trade setup generated. I do not know how many times I see perfect setups about to unfold and then miss them because I was reviewing other charts, sending an email, going to the washroom or grabbing a bite to eat. These missed opportunities along with a few other reasons I will explain in my next post, is what got me started programming my trading strategies to do exactly what I showed you here. I will admit, it has been a major learning process, ridiculously expensive to create and I can safely say that I now know several of the main stream programmers available. I also know who can make miracles happen and who cannot. This post is to share with you some new and exciting things unfolding based around my index trading strategy. Over the next week I will share my story of how algorithmic trading became my focus, passion and automated income stream and how you can do it also. Chris Vermeulen The post When To Trade? My Algorithmic Trading System Shows You appeared first on ETF Trading Gold Newsletter.   | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Mining shares are so depressed that value is starting to be seen, Rule tells KWN Posted: 21 Nov 2013 07:13 PM PST GATA 10:11p ET Thursday, November 21, 2103 Dear Friend of GATA and Gold: Interviewed today by King World News, Sprott Asset Management’s Rick Rule says precious metals mining company shares have been driven down so far that big investment players are beginning to see value in them. The companies might have still more value if they ever recognized the monetary nature of their product and the way its price is suppressed by the surreptitious market intervention of central banks and if the companies did something to defend themselves. But whoever owns the companies — their current shareholders or future trustees in bankruptcy — their metal will remain in the ground awaiting the great financial reset. An excerpt from Rule’s interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/11/21_T… CHRIS POWELL, Secretary/Treasurer * * * 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: | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Mining shares are so depressed that value is starting to be seen, Rule tells KWN Posted: 21 Nov 2013 07:13 PM PST 10:11p ET Thursday, November 21, 2103 Dear Friend of GATA and Gold: Interviewed today by King World News, Sprott Asset Management's Rick Rule says precious metals mining company shares have been driven down so far that big investment players are beginning to see value in them. The companies might have still more value if they ever recognized the monetary nature of their product and the way its price is suppressed by the surreptitious market intervention of central banks and if the companies did something to defend themselves. But whoever owns the companies -- their current shareholders or future trustees in bankruptcy -- their metal will remain in the ground awaiting the great financial reset. An excerpt from Rule's interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/11/21_T... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT 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: http://www.goldmoney.com/?gmrefcode=gata Join GATA here: Vancouver Resource Investment Conference http://www.cambridgehouse.com/event/vancouver-resource-investment-confer... * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html 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: http://gata.org/node/wallstreetjournal 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: ADVERTISEMENT How to profit with silver -- 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: http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp... | |||||||||||||||||||||||||||||||||||||||||||||||||||
| The End Game, Gold & What I’m Doing With My Own Money Posted: 21 Nov 2013 04:38 PM PST  As the modern world seems to move directly from one crisis to another, today one of the wealthiest people in the financial world spoke with King World News about where we are in the end game and gold, as well as what investors should be doing right now with their own money. Rick Rule, who is business partners with billionaire Eric Sprott, also discussed what is happening with the metals and opportunities for investors to make a fortune going forward. Below is what Rule had to say in this candid and powerful interview.This posting includes an audio/video/photo media file: Download Now |
This post was meant to be about Silver Certificates, and if indeed their alleged increased issuance as a result of Executive Order 11110 (or otherwise) could have raised the possibility of abandoning or at least reducing the issuance of FedResNotes in favor of debt-free, silver-backed currency. If so, how would the process have taken place, how exactly WOULD the country have functioned on any supposed pure silver standard? What, exactly, happened to the price of silver in the months preceding and following the order, through 1968 when redemption of the Certificates was finally halted?
Can the U.S. government afford to pay for the health care of 38 million more people? As you will see below, Obamacare is going to be the biggest expansion of the welfare state in U.S. history. It is being projected that a decade from now 17 million Americans will be receiving Obamacare subsidies and an additional 21 million Americans will have been added to the Medicaid rolls. At a time when we are already running trillion dollar deficits, is this really something that the government should be taking on? In addition, it is being projected that bringing millions upon millions of new people into the Medicaid program will also cause enrollment in many other federal welfare programs such as food stamps to surge. Right now, the percentage of Americans that are financially dependent on the U.S. government is already at an all-time high, and Obamacare is going to cause the level of government dependence to go much, much higher. But how much weight can the "safety net" actually carry before it breaks entirely?
Rule: "The truth is that right now stock markets are confident. It would appear people think that Yellen is going to do an absolutely great job, and I guess if the job involves a debasement of the currency, she will….
The year 1941 was a climatic one for the world.
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