Saturday, November 30, 2013

Gold World News Flash

Gold World News Flash


American Economic Collapse, martial law and the coming fall of America

Posted: 30 Nov 2013 12:30 AM PST

Gold And Silver – Reverse Bubble. Huge Rally When Broken. Note Bitcoin Results.

Posted: 30 Nov 2013 12:24 AM PST

Gold and silver are in reverse bubbles, if you will, where price has been both severely distorted and suppressed by central banks, the visible tools of the otherwise hidden moneychangers, those on the top of the population pyramid who want to control and enslave the entire world in a totalitarian state of existence. Ironically, the best and only hope for the [not so] free world comes from China and Russia. It is a twisted world in which we live.

There are so many pieces to the entire puzzle, and for all the known ones, those which are most important are unknown to the great majority. All one can do is to continually monitor events and prepare accordingly. The best predictor of the future has always been past behavior. For centuries, the most reliable preparation has been the ownership of gold.

There is no evidence that it will be any different, this time around. In fact, given the gross manipulation of both gold and silver, once this artificial reverse bubble bursts, the results will be equally distorted to the upside. Where not too long ago, one often heard $5,000 to $10,000 the ounce for gold, the numbers have accelerated to as high as $50,000 and $500 the ounce for gold and silver, respectively.

If anyone wants a glimpse into what the future holds for gold and silver, just look at how Bitcoin has rallied to $1,200+!!! Not even two weeks ago, it traded at $460, and now, it is almost worth the same as an ounce of gold. Without any warrants as to the reliability or sustainability of this recent phenomenon, it clearly shows the appetite for an uncontrolled [by central banks/governments] alternative to any fiat currency. The world is finally waking up to the central banker's huge fiat Ponzi scheme.

Bitcoin is a digital currency, aka a crypto-currency, that has no intrinsic value. For now, it is an anonymous e-currency taking the world by storm. What seems to be the strongest point for acquiring Bitcoin is that it is continually going up in value, and it is momentum, not fundamentals, that keeps carrying the day. It runs the risk of becoming a Tulipcoin.

Putting aside whether the novelty of Bitcoin can survive any number of stress tests, which it has not yet had to do, any way possible for operating outside of the existing central banking cartel's fiat scheme has enormous appeal. We do not see Bitcoin going up in value so much as the fiats are eroding in confidence. Where it used to take $400 in fiat Federal Reserve Notes, [FRN] to buy a Bitcoin, it now takes over $1,200 FRNs to buy the same coin. This exposes the downside to fiats.

This is the good news for gold and silver holders. Once the suppressive manipulation bubble bursts for gold and silver, the number of fiats it takes to buy an ounce of gold, [currently about $1,260] and an ounce of silver, [ about $20], will rise in value, as in true measured value. Bitcoin is the precursor for how reality will immediately set in and catapult precious metals that will likely leave Bitcoin in the dust.

As to why the Western central bankers continue to successfully manipulate/suppress gold and silver is open to debate. In large, central bankers set and control currencies world-wide, and most people are oblivious to the insidious nature of fractional reserve banking and the corrupt criminal enterprises that run them. They do it because they operate with impunity and get away with it.

China is becoming an unexpected center stage protagonist for ridding the world of the fiat "dollar," once and for all. It has become their mission, one in which they will not fail.

There is a book entitled "The Ugly American," from 1958 and a film in 1963 that was popular for some time. Its focus was on America's inability, even unwillingness to understand foreign cultures, and particularly true of the American government. To that can now be added another adjective, "The Ugly and Ignorant American." The country is filled with a population that remains clueless about its de facto and bankrupt corporate federal government, and especially its own fiat currency.

China will become the wake-up that will show the world how America is, and has been for a few decades, a Third World country living off the fumes of a once thriving nation. We hope to address China as the likely replacement for both national and monetary superiority, next week.

A look at the charts. There has not been any notable change in the charts since last week. The dramatic rise in Bitcoin is the best reminder for all those buying and holding physical gold and silver, for whatever length of time and at whatever price, better days are assured. It is just a matter of time.

It could be said that the nine week rally from the June low is being corrected by a 13 week decline, which is relatively more labored. While a positive, it does nothing to suggest a turnaround, at this point.

gold price weekly 29 november 2013 price

The noted clustering of closes can take price in either direction. One of the advantages of reading developing market activity is that it is followed, not led or anticipated in advance. This means we do not have to know in advance which direction price will head, in the week or more, ahead. Instead, we wait for a concrete signal, and then go with prevailing market strength. It is the best way to avoid being on the wrong side of any market.

gold price daily 29 november 2013 price

Silver's strong August swing high rally has been negated by the much slower decline that is now trading under the strong rally bar, 3rd from the August swing high. Until the small range of last week, the preceding decline, none of the 4 bars overlapped by much, indicative of a liquidating market. Whether the small weekly range becomes significant, as a potential form of stopping action, remains to be seen.

silver price weekly 29 november 2013 price

Price could still go marginally lower and not break the previous zone of support. In any down trend, sellers have proven themselves. The onus is on buyers to demonstrate the ability to effect change. For now, there is no evidence that buyers are stepping in and taking over. The ongoing "fate" of precious metals remains in the central bankers pockets.

silver price daily 29 november 2013 price

Dollar, Euro and Their Influence on Precious Metals

Posted: 29 Nov 2013 09:40 PM PST

by Przemyslaw Radomski, Gold Seek:

In our essay on precious metals from Nov. 22, we focused on the markets from the long-term perspective. As we wrote in the summary:

(…) the final bottom for the decline in gold, silver and mining stocks doesn’t seem to be in just yet.

On the next trading day, after the essay was posted, gold, silver and mining stocks declined and dropped to their fresh monthly lows. Although we've seens some improvement in recent days, precious metals still have been trading in the narrow range.

Read More @ GoldSeek.com

At a Crossroads

Posted: 29 Nov 2013 08:00 PM PST

by Ryan Jordan, Ph. D, SilverBearCafe.com:

Despite its recent weakness, the world is still viewing gold as a store of value.

Overall demand remains strong. As Eric Sprott points out, "It's staggering to think demand for gold is twice global mine production."

China is now the largest gold buyer and producer in the world. And with their economy looking better, gold continues getting a big boost from this area.

Gold's steps are your friend

For now, all is still good on the basing front. And our best bet is to keep track of the stepping stones because gold is at a crossroads.

Read More @ SilverBearCafe.com

E-Gold Founder Launches New Gold Backed Currency

Posted: 29 Nov 2013 06:17 PM PST

Submitted by Mike Krieger of Liberty Blitzkrieg blog,

It was only a matter of time before the success of Bitcoin led to a new attempt to create a digital currency backed by gold. It seems as if that day has now arrived.

Douglas Jackson is the founder of e-gold, which was shut down by U.S. authorities a little over five years ago under accusations of money laundering. While I fully think the ultimate monetary solution will be a decentralized payment protocol that merges Bitcoin-like technology with the ability to back it with gold, silver or whatever people want, I am of the view that it cannot be done from an overly centralized authority or protocol. There are several reasons for this.

First, when you have a centralized single issuer of a currency who also is responsible for vaulting the gold within the payment system you have an enormous degree of counter-party risk. The vault itself could be seized by “authorities” in whatever jurisdiction it is located in.

 

Second, the human beings or company behind any currency system can themselves be pressured or threatened in order to comply with more powerful interests. The beauty of Bitcoin is that there is no “Bitcoin corporation.” It truly is decentralized and anarchic in nature. It basically puts “the powers that be” in a position that if they want to completey destroy it, they’d have to destroy the internet itself.

That said, I do believe the evolution of money is headed to a Bitcoin type system with the ability to have whatever backing is desired by the market. So at this point my questions to Mr. Jackson would be:

1) How decentralized is this currency system intended to be if at all?
2) Will there be an open source protocol available to all?
3) Are the units of currency distributed to those that own gold in a particular vault or vaults under a the custodianship of a particular company?
4) Is the currency limited to those who own gold in the currency issuer vaults, or will they be linking vaults all over the world if such vaults care to be linked.

While I love the idea, it would have to be done right or it will be doomed to fail. I’m very curious to learn more about this and I’d also love to hear reader feedback on this.

From the Financial Times:

The founder of one of the earliest virtual currencies has re-emerged with a rival to Bitcoin, more than five years after his first venture, e-gold, was shut down by the US Department of Justice

 

Douglas Jackson is consulting for a membership organisation called Coeptis that hopes to launch a new version of his gold-backed currency, which attracted millions of users at its height.

 

Coeptis’s “global standard currency” would be fully backed by reserves of gold, held in a trust, in effect turning the precious metal into a medium of exchange.

Full article here.

The Gold Price Closed Up for the Week at $1,250.60

Posted: 29 Nov 2013 06:12 PM PST

Gold Price Close Today : 1,250.60
Gold Price Close 22-Nov-2013 : 1,244.10
Change : 6.56 or 0.52%

Silver Price Close Today : 19.98
Silver Price Close 22-Nov-2013 : 19.86
Change : 0.12 or 0.604%

Gold Silver Ratio Today : 63.05
Gold Silver Ratio Today : 62.64
Change : 0.41 or 0.65%

Franklin didn't publish commentary today, if he publishes later it will be available here.

Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.

- Franklin Sanders, The Moneychanger
The-MoneyChanger.com

© 2013, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold or 18 ounces of silver. or 18 ounces of silver. US $ and US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down.

WARNING AND DISCLAIMER. Be advised and warned:

Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures.

NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps.

NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced.

NOR do I recommend buying gold and silver on margin or with debt.

What DO I recommend? Physical gold and silver coins and bars in your own hands.

One final warning: NEVER insert a 747 Jumbo Jet up your nose.

The Gold Price Closed Up for the Week at $1,250.60

Posted: 29 Nov 2013 06:12 PM PST

Gold Price Close Today : 1,250.60
Gold Price Close 22-Nov-2013 : 1,244.10
Change : 6.56 or 0.52%

Silver Price Close Today : 19.98
Silver Price Close 22-Nov-2013 : 19.86
Change : 0.12 or 0.604%

Gold Silver Ratio Today : 63.05
Gold Silver Ratio Today : 62.64
Change : 0.41 or 0.65%

Franklin didn't publish commentary today, if he publishes later it will be available here.

Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.

- Franklin Sanders, The Moneychanger
The-MoneyChanger.com

© 2013, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold or 18 ounces of silver. or 18 ounces of silver. US $ and US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down.

WARNING AND DISCLAIMER. Be advised and warned:

Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures.

NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps.

NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced.

NOR do I recommend buying gold and silver on margin or with debt.

What DO I recommend? Physical gold and silver coins and bars in your own hands.

One final warning: NEVER insert a 747 Jumbo Jet up your nose.

Von Greyerz, Roberts interviewed at King World News

Posted: 29 Nov 2013 05:41 PM PST

8:40p ET Friday, November 29, 2013

Dear Friend of GATA and Gold:

Swiss gold fund manager Egon von Greyerz today tells King World News that values may be illusory if they don't stand up outside their domestic currency:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/11/29_G...

And former Assistant U.S. Treasury Secretary Paul Craig Roberts tells King World News that China's currency likely will appreciate against the U.S. dollar and even cause a run on the dollar:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/11/29_F...

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



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

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:

http://gata.org/tshirts

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:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16



ADVERTISEMENT

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

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

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

To learn about this report, please visit:

http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp...


The Young Guns of Gold – round table discussion

Posted: 29 Nov 2013 05:00 PM PST

The Real Asset Co

Visualizing Abenomics - Japan's Dangerous Experiment

Posted: 29 Nov 2013 04:07 PM PST

The early effects of the reform program have triggered a surge in the Japanese stock market, accelerated by the anticipation of growth revival. So far, so good for the markets and traders. But how will Abenomics accommodate public debt of over 200% GDP, and will Abe's radical policies inspire a long-term economic recovery in Japan? Saxo Capital Markets' new infographic explores the efficacy of Japan's prime minister's dangerous experiment to stimulate economic growth.

(click image for large legible version)

 

Via Saxo Capital Markets,

Can Abenomics save the Japanese economy?

Abenomics is based on the untested formula of monetary easing, fiscal stimulus and structural reforms. In early 2013, Abe promised to increase public spending across Japanese infrastructure and renewable energy, committing $116 billion to reignite Japan's struggling economy. This short-term stimulus aims to boost GDP and job creation by building business confidence and inspiring private investment.

A new inflation target of 2%, conceived by Abe and enacted by the Bank of Japan, prompted a massive quantitative easing programme worth $1.4 trillion. This stimulus measure was introduced with the aim of buying up government debt in a battle to counter deflation. Monetary easing has resulted in a weakening of the yen to the point of a rise in inflation. A devalued yen is a boon to Japanese exports, as manufacturers can sell more goods to a more receptive foreign market. As a result, the Nikkei stock index has rallied by gaining more than 40%, driving stock price increases and, consequently, invigorating business growth. Japan's lower currency has dipped against the US dollar, with forecasts suggesting wages, prices, employment and business investment will all rise.

The third, and potentially most critical, strategy of Abenomics is the unrolling of proposed structural reforms. Abe's move to revamp Japan's healthcare field, energy policies and IT industry is an overhaul in key industry sectors to maintain economic growth beyond short-lived QE lifts and fiscal spending. To what extent does Japan's financial stability hinge on these structural reforms? Abe's decision to join negotiations on the Trans-Pacific Partnership (TPP), a regional free trade agreement, may be crucial to elevating the ratio of Japan's international trade from 20% to 70%, under the free trade agreements.

A series of initiatives to lay the groundwork for future growth includes schemes to help Japanese engineering companies to sell more nuclear power plants and high-speed trains abroad as well as a domestic-based proposal to increase female numbers in the workforce.

For Abenomics to succeed, Japanese households will need to reverse the recent deflationary trend of excess saving and encourage consumers to spend more. In the infographic, Mads Koefed, Head of Macro Strategy at Saxo Bank, suggests that 'the new experiment in Japan has boosted consumer sentiment and that has now resulted in consumers spending more of their money'. Will a more optimistic outlook translate into a revival for the world's third largest economy? It is premature to gauge the success of Abenomics at this stage, and there are question marks over the proposed structural reforms. Fears remain over Japan's alarming national debt, and an eventual rise in interest rates would add a greater burden on the government, undercutting reform measures. Will an offshoot of Abe's remedies to Japan's macroeconomic problems inflict a greater debt load?

Further problems await Japan: the unsustainable ratio of the elderly to the working population, fallout should fiscal stimulus fail, and snowballing costs for imports. This symptom of a weakened yen is exemplified by Japan's post-Fukushima nuclear programme, which relies heavily on imports. Although Japan's aggressive monetary easing programme has helped the yen devalue against the US dollar, Abe's monetary easing plans threaten to distort the financial markets. The Bank of Japan's purchases of financial assets have created significant uncertainty in the bond markets, with Japan's 10-year government bond unexpectedly rising to a record high in May 2013.

Abe's structural reforms carry with them several risks. The domestic agriculture sector could suffer from increased marketplace competition should tariffs on imports be removed. Any agreements with the TPP would mean greater dependency on government support among Japanese farmers, adding a further load on finances.

Finally in the infographic, Saxo have looked at the percentage of their clients, based in the UK, that hold a net-long position in the US dollar against the Japanese yen, compared to the number of those who are net-short USDJPY. The majority (83%) hold a net-long position, which reflects the position many traders take on the success of Abenomics.

Data published in late November indicates that household spending has risen 0.9% in October (from 2013 figures), but is this a long-term ascent, leading to stable economic growth?

Recent data suggests the Japanese economy is recovering from its deflationary cycle, with inflation at its highest for a half a decade. Japan's consumer price index (CPI), which identifies the change in prices of consumer goods and services over a specific period, reveals an upward trend in consumer costs. Is this a sign of Abenomics in action? Next year's consumption tax increase means the BOJ's fiscal stimulus is expected to continue during 2014 to target the 2% inflation rate, despite the promising figures in the CPI release.

November Gold Drop of 5.5% Worst in 35 Years as “Unidentified Sellers” Continue to Dump Gold

Posted: 29 Nov 2013 03:47 PM PST

November was a miserable month for gold investors as prices dropped by 5.5% for the Worst November in 35 Years.  Adding to the misery, gold is almost certain to have its first yearly decline after 12 years up years in a row. NEW YORK—Gold prices logged their worst November since 1978 as a brighter economic [...]

Silver Fundamentals Guarantee Gains For Long Term Investors

Posted: 29 Nov 2013 03:46 PM PST

By: GE Christenson Ryan Jordan, Ph.D., is a professional historian, author, and college professor. He is the author of Silver – The People's Metal, which I highly recommend. He sees silver fundamentals from the perspective of a historian and as an astute observer of present conditions. He studies the drivers of the silver market, supply, [...]

Metallic Money (Gold/Silver) vs. Credit Money: Know The Difference

Posted: 29 Nov 2013 03:12 PM PST

Submitted by Charles Hugh-Smith of OfTwoMinds blog,

Longtime correspondent Jeff W. succinctly explains the difference between metallic money (gold and silver) and credit money.

You've probably read many articles about money--what it is (store of value and means of exchange) and its many variations (metal, paper, etc.). But perhaps the most important distinction to be made in our era is between metallic money and credit money.

Longtime correspondent Jeff W. succinctly explains the difference between metallic money (gold and silver) and credit money:

We use credit money every day. It’s the only kind of money we have. But because people in Europe and America have historically used metallic money for over 2,500 years, we still have cultural habits that come from the gold money era.

When the U.S. removed gold and silver coins from circulation in the 1930’s and 1960’s and replaced paper gold certificates and silver certificates with Federal Reserve notes, the paper money looked very much the same. But the thing that the paper money represented changed dramatically. The paper money now represents units of credit money that have no guaranteed relationship with the prices of gold or silve r or anything else.

Because the nature of credit money and metallic money are not well understood, and because money is so important in our lives, it is worthwhile to examine and discuss how these two kinds of money are different.

1. Tangible vs. intangible. A gold or silver coin is a physical object that has weight, volume and physical characteristics. Credit money is a record of the existence of a debt. Credit money exists in the intangible world of information and human relationships. Where Mr. A owes Mr. B a specified unit of money, and where that debt is recorded on paper or another recording medium, and where the record of that debt passes from one person’s possession to another as a medium of exchange, you have credit money.

Gold coins are minted; debts are recorded. The two forms of money could hardly be more dissimilar.

2. Old vs. oldest. Metallic money has been used by people for about 2,600 years. It has been used sporadically and in certain places. Credit money has been used for at least 5,000 years, when people first started recording debts on clay tablets, pieces of wood or ivory, etc., and trading those IOU’s as money. Before debts were recorded in writing, they were, in prehistoric times, discussed verbally, remembered, and sometimes traded in verbal transactions. This is how very primitive people still trade using debt today.

3. Persistent vs. ephemeral. Some gold coins more than 2,000 years old are still in existence today. But it would be very rare for any performing loans to be more than 100 years old, and many loans are of very short duration. Much of the U.S. Treasury’s debt issue is very short term, lasting only 90 days or one year. Where gold coins can last for thousands of years, debts are constantly coming into existence and going out of existence.

The U.S. debt holdings of the Federal Reserve are constantly churning and rolling over, whereas gold holdings in vaults can lie stationary and do not need to be replaced or rolled over.

4. Hard to create vs. easy to create. To create a gold coin, someone has to first mine the gold from the earth, refine it, mill it, stamp it into circular shapes and then stamp the governmental pattern on it. To create a piece of credit money, a debt has to be created and then a piece of paper printed or a record created on a computer. Anyone who has no intention of paying back his debt, such as the Federal government, can potentially issue debt in infinite amounts. There is an issue of whether that debt is worth anything, however.

5. Always good vs. sometimes good. A gold coin that is legal tender will always be accepted as money. With credit money, some of it is good and some of it is bad. In recent years Zimbabwe’s credit money went bad. Before that, the Weimar Republic’s credit money became worthless. All circulating debt has a mixture of good and bad. When a lot of it goes bad at the same time, it causes a crisis, where the “toxic debt” must be guaranteed or purchased by government or else banks and other financial institutions will go bankrupt.

6. Non-interest bearing vs. interest bearing. Most debt specifies interest payments as part of the loan agreement. The Federal Reserve notes we use as money are claims on interest-bearing debt owned by the Federal Reserve. Credit money has the quality that there is a continuing flow of interest payments away from the users of money in the general population and toward creditors. There is no such continued flow of wealth from debtors to creditors in a gold money system.

7. Does not need money supply expansion vs. needs expansion. Because interest payments are constantly flowing out from families, businesses and communities to financial centers and wealthy creditors, credit money results in economic sluggishness unless there is a constant expansion of the supply of credit money. Under a gold money system, people can function much better with a constant money supply because there is no leakage of interest payments. Each community can continue to circulate its own holdings of gold money without having to pay any of it out in the form of interest payments.

8. Government does not need to enable creating more debt vs. government must enable debt creation. In order to keep a credit money economy going, more debt must be continually created. Government and financial leaders who do not want to be blamed for a downward spiral of slowing economic activity must see to it that more debt is constantly being created. Under a gold money system, there is no pressure to constantly increase the burden of debt.

9. Not as bubble prone vs. more bubble prone. The fractional reserve method of banking encourages asset bubbles because new money is created as borrowers take out new loans. When people borrow money to buy bubble assets (e.g., houses 1981-2006), it creates enormous amounts of new money to feed the asset bubble. Many asset bubbles were also created during the gold money era due to fractional reserve banking, but where the unit of currency is guaranteed by government to be equal to a fixed weight in gold, the inflation threat is taken out of the picture and that restrains bubble creation somewhat.

To support the value of their currencies under a gold money system, governments must also often raise interest rates in order to encourage investors to sell gold in exchange for bonds paying good interest. Higher interest rates also discourage the formation of asset bubbles.

10. Does not enable ZIRP vs. enables ZIRP. A zero interest rate policy is impossibl e under a gold money system. The demand for gold would soon deplete government’s gold holdings to zero. Under a credit money system a policy of low interest rates and financial repression can be imposed for an indefinite period of time.

11. Does not increase lending activity vs. increases lending activity. Low interest rates and the ease with which credit money is created lead to increased lending activity and higher debt loads. Under a gold money system, debt will necessarily be created at a slower rate. By stepping up the pace of debt creation, a credit money system serves the interests of the banks.

12. Has no problem with debt saturation vs. has serious problems with debt saturation. Continually increasing debt leads ultimately to debt saturation. When a country’s people and businesses are saturated with debt, it makes it much more difficult to continue to increase the debt load. That leads to stagnation and slowing economic activity in a credit money system. A gold money system does not tend to lead to debt saturation and has no similar problems with debt saturation.

13. Increases wealth disparities vs. does not increase wealth disparities. The higher debt load facilitated by a credit money system results in greater flows of wealth from the debtor class to the creditor class. The higher debt load leads to increased disparities in income, more very poor and very rich and fewer of the middle class.

14. Holds its value vs. does not hold its value. Gold-backed currencies have an excellent track record of holding their value. Credit money tends to inflation, the rate of which largely depends on how fast new debt is being created.

15. Government as a guarantor of savings vs. government provides no guarantee. One of the three functions of money is as a store of value. (The others are a medium of exchange and a unit of account.) When the U.S. government guarantees that 35 U.S. dollars will buy an ounce of gold, as it did in the years 1934-67, government aid savers by acting as a guarantor of that store of value.

When the U.S. went off the gold standard in 1971, it changed the relationship between citizens and their government when government no longer provided that guarantee.

16. Defaulters are bad vs. defaulters are only partly bad. In a gold money system, a person who takes out a loan and does not repay it is considered a bad person, almost a thief. He has robbed his creditors of the money they were rightfully owed. In a credit money system, however, the creation of new debt is so important that anyone who goes into debt is a hero of the economy.

That is why under a debt money system, it is considered more important that new debt be created (e.g., as student loans) than to worry about whether they will ever be paid back or to pin blame and guilt on loan defaulters.

Conclusion: As we see, it is no exaggeration to say that the transition from gold money to credit money changes everything. It changes every individual’s relationship with his own money, with government, and with banks. It changes the power relationships within society. It changes the patterns of ownership and wealth accumulation.

It is very important that citizens and investors understand the credit money system that they are trying to operate within. For people with over 2,500 years of experience with gold money, it is difficult to understand it and get used to it. But anyone who does understand it will be better off because of making better-informed decisions. We might as well get used to it because we shall likely have to live with a credit money system for a very long time.

Thank you, Jeff, for an insightful and extremely important overview of the critical differences between credit money and gold/silver. The key distinction of all these important distinctions is the ephemeral nature of credit-money (and any form of fiat currency). History teaches us that a financial-political crisis of sufficient magnitude reveals the underlying value of credit-money--i.e. zero--in a brief but cataclysmic loss of faith/trust.

As correspondent Harun I. observed in Why Is Debt the Source of Income Inequality and Serfdom? It's the Interest, Baby: "Governments cannot reduce their debt or deficits and central banks cannot taper. Equally, they cannot perpetually borrow exponentially more. This one last bubble cannot end (but it must)."

When the current bubble bursts, the difference between metallic money and credit money will be starkly visible: no one will trade gold or silver for any amount of paper/credit money, and the ephemeral financial instruments ("assets") that dominate today's financial system will be revealed for what they are: phantom promises of value.

Of related interest:

Gold: The Once and Future Money by Nathan Lewis

Could Bitcoin (or equivalent) Become a Global Reserve Currency?
November 7, 2013

Gold, Money, China & Frightening Worldwide Destruction

Posted: 29 Nov 2013 03:03 PM PST

On the heels of global stock markets remaining strong, today the 42-year market veteran who correctly predicted that the Fed would not taper has just written the following incredibly powerful piece for King World News discussing gold, money, China & frightening worldwide destruction. Below is the tremendous and exclusive KWN piece from Egon von Greyerz, who is founder of Matterhorn Asset Management out of Switzerland.

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

U.S. Mint Runs Out of Silver Bullion Coins – Gold and Silver Coin Sales Hit Record Levels in November

Posted: 29 Nov 2013 02:29 PM PST

Long term proponents of sound money cannot seem to get enough of the U.S. Mint gold and silver bullion coins.  Ever since 2008 the financial crash of 2008 many Americans remain profoundly skeptical of the paper dollar system backed by the "full faith and credit" of a nation that has borrowed itself into poverty and [...]

Signs of a Top

Posted: 29 Nov 2013 01:16 PM PST

The primary drivers of asset prices are the economy and corporate earnings. With that in mind, consider that both are rolling over today.

 

Indeed, when we take the big picture, we find that corporate profits, as a percentage of GDP are also at all-time highs. Never before in history have corporations made so much money relative to the US economy. This trend is not likely to continue.

 

Finally, take a look at the massive divergence between nominal GDP and the S&P 500. Economic growth drives earnings, which in turn drive stocks. And as you can see, economic growth has been drifting sharply lower.

 

Source: the King Report

 

Detailing precisely when stocks will plunge is very difficult. All we can say with great certainty is that stocks are rallying ever higher on weakening economic fundamentals. This is precisely what happened in the build up to the 2008 Crash.

 

Indeed, if is now clear stocks are definitively in a bubble. Based simply on CAPE (cyclical adjusted price to earnings) the market is significantly overvalued with a reading of nearly 24 (anything over 15 is overvalued).

 

 

Indeed, we’ve only been at this level of valuation during major stock tops (1929, 1966, 2000, and 2007)

 

Thus we find that:

 

1)   The US economy is in recession again

2)   Corporate profits are at record highs and set to fall

3)   Stocks are extremely overvalued

 

All of these add up to a real problem for long-term stock investors today. The classic method of valuing stocks, the P/E ratio is comprised of market cap relative to earnings.

 

If earnings are at record highs today and stocks are already overvalued, how high will P/Es be when earnings begin to contract with stocks at these levels?

 

My point with all of this is that based on valuations and economic conditions, now is not the time to be loading up on stocks. There will be plenty of opportunities such as NVDA and NDRO which we’ve already invested in, but overall, I would not be heavily buying stocks at these levels especially relative to earnings.

 

Speaking of earnings, let us now move to #2 on the list of items I listed at the opening of this issue: the recent collapse in revenues and earnings at economically sensitive firms.

 

We’ve seen a recent spate of terrible results from corporate America.

 

In the few quarters we’ve seen disappointing earnings at:

 

1)   Caterpillar (global machinery)

2)   Microsoft (software)

3)   Google (search engine ad revenue)

4)   Chevron and Exxon Mobil (oil)

5)   Discovery (credit cards)

6)   Amazon (online retail)

7)   Charles Schwab (brokers)

8)   Wynn Resorts (casino)

 

There are dozens and I literally mean dozens of ways to craft earnings to be better than reality. You can writedown assets, alter depreciation methods, manipulate bad debt expenses in accounts receivables, game the closure of deals, take one time charges, utilize derivatives and mark to model valuation of assets, etc.

 

Indeed, a study performed by Duke University found that roughly 20% of publicly traded firms manipulate their earnings to make them appear better than they really are. The folks who were surveyed for this study about this practice were the actual CFOs at the firms themselves.

 

In this sense, it is safe to assume that recent earnings, as poor, are they are, have been “massaged” to look better than reality.

 

Indeed, we get confirmation of this from revenues misses. As I mentioned a moment ago, earnings can manipulated any number of ways, but revenues cannot; either money came in or not.

 

With that in mind, we’ve in the last few quarters we’ve seen revenues misses at:

 

1)   Merck (big pharma)

2)   Molson Coors (alcohol)

3)   Clorox (cleaning materials)

4)   US Steel (steel)

5)   McDonald’s (fast food)

6)   3M (conglomerate)

7)   GE (conglomerate)

 

This brings me back to an earlier point, that profits and earnings are likely peaking. All of these point to a top forming.

 

Be prepared.

 

For a FREE Special Report on how to beat the market both during bull market and bear market runs, visit us at:

http://phoenixcapitalmarketing.com/special-reports.html

 

Best Regards

 

Phoenix Capital Research

 

 

 

 

GoldMoney Market Report - week ending 29th November: 5:00pm

Posted: 29 Nov 2013 12:19 PM PST

Metal prices moved positively this week. Silver led with a gain of 2.5% followed by gold at 1.9% and palladium at 1.2%. Platinum showed a small loss of 0.4%. Read More...

Former US Treasury Official - China To Dominate US

Posted: 29 Nov 2013 12:08 PM PST

Today a former US Treasury Official warned King World News that the Chinese are positioning themselves to dominate the US. He also discussed the desperate situation the US now faces and what all of this means for the battered gold market. Below is what Dr. Paul Craig Roberts had to say in part I of this powerful interview series.

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

Junior Gold Stocks Rabbit Hole

Posted: 29 Nov 2013 11:52 AM PST

Lewis Carroll’s Alice in Wonderland is a timeless tale that chronicles the journey of a young girl into a psychedelic fantasy land.  This tale is one that turns logic upside down, and takes us into a bizarre world that defies reality.  To get to this world Alice falls down a precarious rabbit hole, perhaps the same one that has swallowed the junior gold stocks. The juniors have seen so much carnage lately that investors have completely disregarded their sector.  And this disregard has sent them down a proverbial rabbit hole, into a world that is bizarre and illogical to say the least.  Though these stocks certainly don’t have much support with gold prices so weak lately, popular consensus that their sector is dead is pure fantasy.

U.S. Dollar, Euro and Their Influence on Gold and Silver

Posted: 29 Nov 2013 11:42 AM PST

In our essay on precious metals from Nov. 22, we focused on the markets from the long-term perspective. As we wrote in the summary: (...) the final bottom for the decline in gold, silver and mining stocks doesn't seem to be in just yet. On the next trading day, after the essay was posted, gold, silver and mining stocks declined and dropped to their fresh monthly lows. Although we've seens some improvement in recent days, precious metals still have been trading in the narrow range.

Gold Worst November for 35 Years

Posted: 29 Nov 2013 11:34 AM PST

WHOLESALE London prices for gold pushed higher in quiet trade Friday morning, on course for the largest November drop since 1978 in US Dollar terms. Down 5.9% from the last London Fix of October, Dollar gold this morning touched $1249 per ounce.

Gold Daily and Silver Weekly Charts - Goodbye November

Posted: 29 Nov 2013 11:00 AM PST

Gold Daily and Silver Weekly Charts - Goodbye November

Posted: 29 Nov 2013 11:00 AM PST

Williams marvels at stock market herd mentality, rising claims on missing gold

Posted: 29 Nov 2013 10:32 AM PST

1:30p ET Friday, November 29, 2013

Dear Friend of GATA and Gold:

Fund manager Grant Williams, interviewed today by King World News, marvels at the herd mentality in the stock market and the ever-increasing claims on the very limited gold available at the New York Commodity Exchange. An excerpt from the interview is posted at the King World News blog here:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/11/29_S...

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



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

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:

http://gata.org/tshirts

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:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16

Junior-Gold Rabbit Hole

Posted: 29 Nov 2013 10:15 AM PST

Lewis Carroll's Alice in Wonderland is a timeless tale that chronicles the journey of a young girl into a psychedelic fantasy land. This tale is one that turns logic upside down, and takes us into a bizarre world that defies reality. Read More...

Shocking Chart Shows Gold Will See “Astronomical Levels”

Posted: 29 Nov 2013 08:59 AM PST

Today one of the most highly respected fund managers in Singapore sent King World News a shocking gold chart, and also spoke with KWN about why gold will reach "astronomical levels." Grant Williams, who is portfolio manager of the Vulpes Precious Metals Fund, also spoke about the remarkable events which are taking place around the world. Below is what Williams had to say in part I of this powerful and timely interview series.

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

Dollar, Euro and Their Influence on Precious Metals

Posted: 29 Nov 2013 08:39 AM PST

Many times in the past, the situation in the U.S. dollar and the euro gave us important clues about future precious metals' moves. Therefore, today we'll examine the US Dollar Index (from many perspectives) and the Euro Index to see ... Read More...

Gold endures worst November since 1978

Posted: 29 Nov 2013 08:06 AM PST

Worst November in 35 years for gold as India’s import ban forces jump in recycling, writes Adrian Ash

Read more….

Wherever the gold price goes, silver is sure to follow

Posted: 29 Nov 2013 08:06 AM PST

For a number of reasons, the supply/demand picture for silver now shares many common denominators with those of gold, says Julian Phillips.

Read more….

ASX Wrap: Whitehaven takes over henhouse, as Newcrest cash bleed continues

Posted: 29 Nov 2013 08:06 AM PST

Gold miners have endured a torrid week on the ASX, with Beadell Resources (-9.4%), Regis Resources (-2.2%) and Evolution Mining (-4.7%) all losing ground.

Read more….

Iran to resume gold trade with Turkey

Posted: 29 Nov 2013 08:06 AM PST

Iran’s ambassador to Turkey says once sanctions on Iran are eased, the gold trade will resume albeit at lower levels than last year.

Read more….

Silver may rise as moving averages converge

Posted: 29 Nov 2013 08:06 AM PST

A technical analysis by Korea Exchange Bank Futures suggests futures may climb to $22/oz as converging moving averages signal a short-term rebound.

Read more….

Cash is king: Asian investors look to gold coins for big returns

Posted: 29 Nov 2013 08:06 AM PST

Over the past two years Chinese and Indian coins have outperformed most others in the market, including US ones.

Read more….

"Mall Brawl Thursday" - Has It Really Gotten This Bad?

Posted: 29 Nov 2013 06:52 AM PST

Black Friday Thursday.  The entire term "holiday sales shopping" has been redefined.  And the word "Black" should now be replaced with "Mall Brawl."  Black Friday has become Mall Brawl Thursday.  In the most obvious sign of just how desperate everyone is to keep up with the euphemistic "Joneses," what used to be a nice family holiday shopping day has turned into something out of the movie "Mad Max."  Here's a nice sampling of actual videos:  Mall Brawl Thursday.

Make no mistake about it, this an overt and blatant signal about just how bad our system has already deteriorated.  Although it didn't start with George W. Bush, his tenure in office ushered in a transformation of our system into Rule by Fiat.  The term "fiat" was originally a Latin word meaning "let it be done" and represented a decree or pronouncement by a person or Government in the position of absolute authority to enforce it.  That's our Government.  A Rule by Fiat totalitarian regime.

Obama refused to negotiate over the budget and debt limit deal.  Why?  Because somehow, hidden from view, he had the leverage to avoid compromise and the authority to force the outcome he and his handlers wanted.  Now Obama is forcing Government implemented and managed healthcare down our throats. How about the way in which the NSA operates to spy on every aspect of our lives unfettered from any sort of regulation or restraint.  In fact, the NSA pretty much is our worst nightmare:  a known pedophile running a child daycare business out of his basement.

Throughout history, Governments move into totalitarian mode when  they have lost control of the economy.  Of course, if the system is free from Government control in the first place, then there's nothing of which the Government can lose control and you avoid the whole problem.  But here we are now with the biggest political charlatan in the history of the United States overseeing the collapse of our system economically, socially and politically.  And the implementation of Rule by Fiat is the last gasp of a Government that is letting the business and political elitists confiscate the remaining remnants of wealth that haven't been expropriated from the middle class since 1971.  Note:  1971 is when Nixon destroyed any legitimate chance of our system existing as it was given to us by the Founding Fathers when he pulled the plug on any connection between gold and the U.S. dollar, thereby creating a pure fiat currency.  And it's this fiat currency that belies the transformation of our Government into one of Rule by Fiat.

Another way of saying "Rule by Fiat" is "because they can."   The elitists running our system and using Obama as their front-man can pretty much do whatever they want because they can.  No one is even making an attempt at stopping them.  The very people who are capable of stopping them are instead shooting each other at the mall on Black Thursday in order to save a couple bucks on the latest fashion sweater or fashion gadget. And Obama is the perfect front-man for them because if you disagree with anything he says or does you are branded as a "rascist."

And while Obama has been the False Prophet of Hope and Change for everyone who voted for him, the U.S. dollar represents the largest financial Ponzi scheme in history. Circling back to this new era of Black Friday Thursday Mall Brawls, nothing could be more emblematic of the state of decline of our system or more reflective of the degree of desperation being felt by the masses than the violence precipitated by the scramble to put cheap gifts under the Christmas Tree.  Is this really how Jesus would have wanted people to behave as they prepared to observe the celebration of his birth?

Think about this while the news networks coerce you to bask in the glow of the White House Christmas tree and video footage of Barack and Michelle experiencing holiday glee.  They, their political colleagues and the wealthy elite do not have to worry about how they are going to try and make the holiday season joyful for their families.  But what exactly did Barack do to earn this right other than sell his soul and our country out to the highest bidders?
 

"Mall Brawl Thursday" - Has It Really Gotten This Bad?

Posted: 29 Nov 2013 06:52 AM PST

Black Friday Thursday.  The entire term "holiday sales shopping" has been redefined.  And the word "Black" should now be replaced with "Mall Brawl."  Black Friday has become Mall Brawl Thursday.  In the most obvious sign of just how desperate everyone is to keep up with the euphemistic "Joneses," what used to be a nice family holiday shopping day has turned into something out of the movie "Mad Max."  Here's a nice sampling of actual videos:  Mall Brawl Thursday.

Make no mistake about it, this an overt and blatant signal about just how bad our system has already deteriorated.  Although it didn't start with George W. Bush, his tenure in office ushered in a transformation of our system into Rule by Fiat.  The term "fiat" was originally a Latin word meaning "let it be done" and represented a decree or pronouncement by a person or Government in the position of absolute authority to enforce it.  That's our Government.  A Rule by Fiat totalitarian regime.

Obama refused to negotiate over the budget and debt limit deal.  Why?  Because somehow, hidden from view, he had the leverage to avoid compromise and the authority to force the outcome he and his handlers wanted.  Now Obama is forcing Government implemented and managed healthcare down our throats. How about the way in which the NSA operates to spy on every aspect of our lives unfettered from any sort of regulation or restraint.  In fact, the NSA pretty much is our worst nightmare:  a known pedophile running a child daycare business out of his basement.

Throughout history, Governments move into totalitarian mode when  they have lost control of the economy.  Of course, if the system is free from Government control in the first place, then there's nothing of which the Government can lose control and you avoid the whole problem.  But here we are now with the biggest political charlatan in the history of the United States overseeing the collapse of our system economically, socially and politically.  And the implementation of Rule by Fiat is the last gasp of a Government that is letting the business and political elitists confiscate the remaining remnants of wealth that haven't been expropriated from the middle class since 1971.  Note:  1971 is when Nixon destroyed any legitimate chance of our system existing as it was given to us by the Founding Fathers when he pulled the plug on any connection between gold and the U.S. dollar, thereby creating a pure fiat currency.  And it's this fiat currency that belies the transformation of our Government into one of Rule by Fiat.

Another way of saying "Rule by Fiat" is "because they can."   The elitists running our system and using Obama as their front-man can pretty much do whatever they want because they can.  No one is even making an attempt at stopping them.  The very people who are capable of stopping them are instead shooting each other at the mall on Black Thursday in order to save a couple bucks on the latest fashion sweater or fashion gadget. And Obama is the perfect front-man for them because if you disagree with anything he says or does you are branded as a "rascist."

And while Obama has been the False Prophet of Hope and Change for everyone who voted for him, the U.S. dollar represents the largest financial Ponzi scheme in history. Circling back to this new era of Black Friday Thursday Mall Brawls, nothing could be more emblematic of the state of decline of our system or more reflective of the degree of desperation being felt by the masses than the violence precipitated by the scramble to put cheap gifts under the Christmas Tree.  Is this really how Jesus would have wanted people to behave as they prepared to observe the celebration of his birth?

Think about this while the news networks coerce you to bask in the glow of the White House Christmas tree and video footage of Barack and Michelle experiencing holiday glee.  They, their political colleagues and the wealthy elite do not have to worry about how they are going to try and make the holiday season joyful for their families.  But what exactly did Barack do to earn this right other than sell his soul and our country out to the highest bidders?
 

Iran says gold trade with Turkey to resume

Posted: 29 Nov 2013 05:05 AM PST

By Tulay Karadeniz
Reuters
Friday, November 29, 2013

ANKARA, Turkey -- Gold trade between Turkey and Iran will resume, albeit at lower levels than last year, once sanctions on Iran are eased, Iran's ambassador to Turkey said on Friday.

Turkey's gold trade with Iran boomed in 2012 when Ankara was paying for its natural gas and oil imports with Turkish lira and Iranians were using those deposits held in Turkey's Halkbank to buy gold.

"Certainly the gold trade between Iran and Turkey will resume," the ambassador, Ali Reza Bigdeli, told reporters in the Turkish capital today. ...

... For the complete story:

http://www.reuters.com/article/2013/11/29/turkey-iran-gold-idUSL5N0JE1OR...



ADVERTISEMENT

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

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

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

To learn about this report, please visit:

http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp...



Join GATA here:

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

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:

http://gata.org/tshirts

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:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16



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


Is This The Right Time To Get Into Gold?

Posted: 29 Nov 2013 04:33 AM PST

Today’s AM fix was USD 1,245.25, EUR 915.29 and GBP 763.07 per ounce. Yesterday’s AM fix was USD 1,241.75, EUR 913.12 and GBP 760.46 per ounce. Yesterday the markets were closed in the U.S. for the Thanksgiving national holiday. The closing fix in London was USD 1,245.50, EUR 915.54 and GBP 761.59 per ounce.

Gold Prices End Worst November Since 1978 in "Thin Holiday Trade" as Stockmarkets Rise

Posted: 29 Nov 2013 04:28 AM PST

GOLD PRICES pushed higher in quiet trade Friday morning in London, heading for the biggest November drop since 1978 for Dollar investors.
 
Down 5.9% from the last London Fix of October, Dollar gold prices this morning touched $1249 per ounce, the lowest monthly finish since June's 3-year low.
 
Global stock markets meantime hit fresh 6-year highs on the MSCI World index, as the Japanese Nikkei closed its strongest November since 2005.
 
The Japanese Yen today hit its lowest level in a half-decade to the Euro.
 
Gold prices in the Yen rose to 1-week highs Friday morning, cutting November's drop to 1.9%.
 
"Trading has been relatively subdued," says a European bank dealing desk, pointing to the US Thanksgiving holidays.
 
"Some light buying from short-term players," says a Swiss refiner's note, again citing "very thin conditions."
 
Tracking Friday's rally in gold prices, silver also rose but held $2 per ounce below the end of October, heading for a 9.1% drop in November at $19.93.
 
"Physical [gold] demand is solid," says ANZ Bank's commodity team in a special report, "but not bullish enough to spark significant short covering [by bearish traders in gold futures].
 
"[That's] reflected in subdued Shanghai Gold Exchange premiums."
 
Trading volumes in Shanghai gold slipped back Friday, pulling the premium above London gold prices down to $6 per ounce from the recent peak of $9 hit Thursday.
 
ANZ now forecasts 2013 gold imports to China of 1,050 tonnes, topping last year's record by some 80%.
 
"[But] we believe caution is warranted in expecting the growth in Chinese gold demand will be repeated next year," says the banks' analysts, stating a "baseline expectation" of a drop in 2014 imports back to 900 tonnes.
 
Meantime in former world No.1 gold consumer nation India, where gold prices on the MCX futures market ended the day unchanged near 6-week lows, "People have started coming with recycled gold," Reuters quotes a gold retailer in the famous Zaveri Bazaar.
 
Thanks to the Indian government's gold import rules effectively shutting legal inflows, "There is no gold available in the market this wedding season," the retailer, Kumar Jain, goes on.
 
So the parents of brides-to-be "have started exchanging their old gold for new, and paying the labor charges," he adds, forecasting perhaps 400 tonnes of gold recycling this year, compared with more typical levels of 130 tonnes.
 
Import duties, the lack of supply and other costs have pushed Indian gold dealers' quotes for physical bullion to $130 per ounce above world prices this month.

Silver and Gold as Currency Commodities

Posted: 29 Nov 2013 04:15 AM PST

Gold and silver have a 6000 year history for their use as a currency, and until the last century, the price of gold and silver maintained a healthy valuation ratio of 1 ounce of gold to every 15 ounces of silver.                         This purchasing power ratio is strengthened by the fact that there are 17 ounces of silver for every 1 ounce of gold in the earth's crust, although physical silver stocks have dwindled as the metal is used in a wide variety of industrial applications.            

Hyperinflation of The Reserve Currency

Posted: 29 Nov 2013 04:13 AM PST

The recent rise in interest rates, in response to the threat of Fed tapering, foreshadows the unavoidable demise for the dollar. Not only did the rise in rates have an immediate effect on the housing recovery, it also indirectly exposed the system to another vulnerability, that is, the Fed is not only the lender of last resort but will be the lender to the spender of last resort - the US Treasury.

In The News Today

Posted: 28 Nov 2013 11:43 PM PST

Jim Sinclair’s Commentary Playing chicken in the "no fly" area is dangerous enough but it also invites playing chicken with the petro dollar, something more dangerous than even warplanes China sends warplanes into disputed airspace over East China Sea Air force spokesman says fighter jets have been sent after Japanese and South Korean aircraft flew... Read more »

The post In The News Today appeared first on Jim Sinclair's Mineset.

Gold Slumps as Wall Street Soars

Posted: 28 Nov 2013 11:00 PM PST

Nichols on Gold

Bitcoin Anonymously Genius

Posted: 28 Nov 2013 09:50 PM PST

Young digital currency Bitcoin has been gaining popularity rapidly. It is believed that it may even make the US dollar move over as time goes by. However, there is one embarrassing detail: the currency circulates on condition of anonymity, which means that it can be used for criminal purposes. Bitcoin is used in transaction of drug traffickers, casino owners and killers.

State Dept. minutes confirm that whoever has the most gold makes the rules

Posted: 28 Nov 2013 08:48 PM PST

12:03a ET Friday, November 29, 2013

Dear Friend of GATA and Gold:

Gold researcher Koos Jansen tonight calls attention to the minutes of a U.S. State Department meeting in April 1974 summoned by Secretary of State Henry Kissinger to consider the danger that the price of gold might get beyond the U.S. government's control.

The objective of U.S. policy about gold during this time has not been secret; GATA has cited government records demonstrating it. For example:

http://www.gata.org/files/ArthurBurnsLetterToPresidentFord-June1975.pdf

http://www.gata.org/node/12551

But the minutes published by Jansen tonight are especially remarkable for making explicit the U.S. government's recognition of what some gold advocates call "the golden rule" -- that is, whoever has the most gold makes the rules.

... Dispatch continues below ...



ADVERTISEMENT

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

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

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

To learn about this report, please visit:

http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp...



The meeting is addressing what is perceived as the increasing desire among Western European countries to revalue their gold reserves upward, thereby increasing gold's role in the international financial system, while U.S. policy has been to demonetize gold so as to leave the U.S. dollar unchallenged as the world reserve currency.

Secretary Kissinger asks the meeting: "Why is it against our interest to have gold in the system?"

He is answered by his assistant undersecretary of state for economic and business affairs, Thomas O. Enders.

The minutes, found by Jansen in the State Department archives in Volume 31 of "Foreign Relations of the United States, 1973-76," record Kissinger's exchange with Enders this way:

* * *

Mr. Enders: It's against our interest to have gold in the system because for it to remain there it would result in it being evaluated periodically. Although we have still some substantial gold holdings -- about $11 billion -- a larger part of the official gold in the world is concentrated in Western Europe. This gives them the dominant position in world reserves and the dominant means of creating reserves. We've been trying to get away from that into a system in which we can control ...

Secretary Kissinger: But that's a balance-of-payments problem.

Mr. Enders: Yes, but it's a question of who has the most leverage internationally. If they have the reserve-creating instrument, by having the largest amount of gold and the ability to change its price periodically, they have a position relative to ours of considerable power. For a long time we had a position relative to theirs of considerable power because we could change gold almost at will. This is no longer possible -- no longer acceptable. Therefore, we have gone to Special Drawing Rights, which is also equitable and could take account of some of the less-developed-country interests and which spreads the power away from Europe. And it's more rational in ...

Secretary Kissinger: "More rational" being defined as being more in our interests or what?

Mr. Enders: More rational in the sense of more responsive to worldwide needs -- but also more in our interest. ...

* * *

So there you have it. Whoever has the most gold can control its valuation -- and implicitly the valuation of every currency -- and thereby create the most "reserves," the most money, money being power. The interest of the United States, at least as it was perceived at that meeting at the State Department in April 1974, was to dominate the world through the power of money creation.

Few observers would deny the success of that policy from 1974 and earlier right up to the present day. The current war over gold, a war raging nearly everywhere today except in the mainstream financial news media, which strive desperately to overlook it, is a war for world domination through the power of money creation. Whoever gets the most gold will control its valuation, control the valuation of other currencies, and make the rules for the international financial system.

The minutes of the April 1974 meeting at the State Department are posted at Jansen's Internet site, In Gold We Trust, here:

http://www.ingoldwetrust.ch/minutes-of-kissinger-meeting-on-gold-1974

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

* * *

Join GATA here:

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

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:

http://gata.org/tshirts

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:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16



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


The Gold Price Closed at $1,237.80

Posted: 28 Nov 2013 08:14 PM PST

Gold Price Close Today : 1237.80
Change : 0.00 or 0.00%

Silver Price Close Today : 19.63
Change : 0.00 or 0.00%

Gold Silver Ratio Today : 63.05
Change : 0.00 or 0.00%

Franklin didn't publish commentary today, if he publishes later it will be available here.

Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.

- Franklin Sanders, The Moneychanger
The-MoneyChanger.com

© 2013, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold or 18 ounces of silver. or 18 ounces of silver. US $ and US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down.

WARNING AND DISCLAIMER. Be advised and warned:

Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures.

NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps.

NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced.

NOR do I recommend buying gold and silver on margin or with debt.

What DO I recommend? Physical gold and silver coins and bars in your own hands.

One final warning: NEVER insert a 747 Jumbo Jet up your nose.

The Gold Price Closed at $1,237.80

Posted: 28 Nov 2013 08:14 PM PST

Gold Price Close Today : 1237.80
Change : 0.00 or 0.00%

Silver Price Close Today : 19.63
Change : 0.00 or 0.00%

Gold Silver Ratio Today : 63.05
Change : 0.00 or 0.00%

Franklin didn't publish commentary today, if he publishes later it will be available here.

Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.

- Franklin Sanders, The Moneychanger
The-MoneyChanger.com

© 2013, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold or 18 ounces of silver. or 18 ounces of silver. US $ and US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down.

WARNING AND DISCLAIMER. Be advised and warned:

Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures.

NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps.

NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced.

NOR do I recommend buying gold and silver on margin or with debt.

What DO I recommend? Physical gold and silver coins and bars in your own hands.

One final warning: NEVER insert a 747 Jumbo Jet up your nose.

GOLD Elliott Wave Technical Analysis

Posted: 28 Nov 2013 05:25 PM PST

Yesterday's analysis expected more upwards movement from Gold. Price has moved higher, but it is not a convincing third wave... yet. I have the same main wave count with now two alternates at the daily chart level. Read More...

China’s Gold Rush Continues, Imports Another 131 Tonnes In October

Posted: 28 Nov 2013 02:51 PM PST

It was a month ago when we discussed the September gold import statistics from Hong Kong to China. Net imports (after deducting flows from China into Hong Kong) were 109.4 metric tons in September and 110.2 tons in August. In our article China Imports 0.7% Less Gold Than August, Bloombergs Says Slowdown we showed that Bloomberg reported a "slowdown” for September. We showed the real facts: “since the year 2000, only two months saw significantly higher imports than September, i.e. March and July of this year. August and September (with a minor difference of 0.7%) were the third best months ever when it comes to gold imports to China through Hong Kong.”

The latest statistics show that China imported another 131 tonnes of physical gold in October through Hong Kong.

It appears Bloomberg could not be further from the truth. It is yet another confirmation that readers should not (only) rely on traditional media outlets for correct precious metals news as those channels are biased. Admittedly, in the precious metals blogosphere the bias is significant as well. Picking the right sources for precious metals news and analysis is key.

Courtesy of Mineweb, the year to date net gold imports from Hong Kong to China total 967 tonnes. That is an astonishing amount. To put this figure in perspective: the global production in 2012 was close to 2500 tonnes and the US (having the highest gold reserves in the world) has 8133 tonnes of gold reserves.

china gold imports hong kong october 2013 physical market

The above table shows the official statistics. But there is more. Earlier this week, it became official that China had been importing gold directly from other countries throughout the world. In China Imported An Additional 133 Tonnes Of Gold Directly in 2013 we discussed that the official figures are just partly reflecting reality and that China has already (largely?) surpassed 1000 tonnes of gold imports in the first 3 quarters of 2013.

It should not come as a surprise that “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.” China has started to decrease its dollar holdings and is seeking for monetary safety which the country undoubtedly sees in physical gold.

China Gives Thanks For Cheap Gold

Posted: 28 Nov 2013 02:11 PM PST

Just a quick Thanksgiving morning update on China's gold imports, which continued at extraordinary levels in October. To put the 131 tonnes in perspective ... Read More...

Venezuela denies but doesn't rule out gold transaction with Wall Street

Posted: 28 Nov 2013 02:05 PM PST

Venezuela Central Bank Denies Transactions with Wall Street

By Brian Ellsworth
Reuters
Thursday, November 28, 2013

CARACAS -- Venezuela's central bank president denied on Thursday that the institution is carrying out any transactions with Wall Street banks, a day after a senior government source said it was evaluating a swap agreement involving its gold reserves.

Opposition leaders and local media have reported that Venezuela is seeking to boost availability of hard currency through transactions with Goldman Sachs and Bank of America.

"With respect to the institutions you've mentioned, the central bank ... is not carrying out any operations with these institutions," Central Bank President Eudomar Tovar said at a press conference in response to a question about the reports.

"There are some considerations out there which have come out, but these are unofficial positions, if you will."

Asked again by a reporter, he said: "There has been no activity done by the central bank with Goldman Sachs or any institution."

Tovar's comments did not appear explicitly to rule out the possibility that such a transaction was being negotiated or could be carried out in the future. He declined to elaborate. ...

... For the complete story:

http://www.reuters.com/article/2013/11/28/us-venezuela-economy-idUSBRE9A...



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

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:

http://gata.org/tshirts

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:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16



ADVERTISEMENT

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

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

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

To learn about this report, please visit:

http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp...


No comments:

Post a Comment