Thursday, November 14, 2013

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Chart demonstrating gold's inexorable move east

Posted: 14 Nov 2013 05:07 PM PST

Further proof of the yellow metal's journey east comes in the form of a graph from the World Gold Council.

China beats India as world #1 gold buyer

Posted: 14 Nov 2013 03:42 PM PST

Gold demand from the world's former No.1 consumer, India, fell to its lowest Q3 level since 2005 at 148 tonnes, says the World Gold Council.

Pan American Silver Management Discusses Q3 2013 Results - Earnings Call Transcript

Posted: 14 Nov 2013 01:20 PM PST

Pan American Silver (PAAS)

Q3 2013 Earnings Call

November 14, 2013 1:00 pm ET

Executives

Kettina Cordero

Geoffrey A. Burns - Chief Executive Officer, President, Director, Member of Health, Safety & Environmental Committee and Member of Finance Committee

Steven L. Busby - Chief Operating Officer

Michael Steinmann - Executive Vice President of Corporate Development & Geology

A. Robert Doyle - Chief Financial Officer

Analysts

Chris Lichtenheldt - Dundee Capital Markets Inc., Research Division

Jorge M. Beristain - Deutsche Bank AG, Research Division

Andrew Quail - Goldman Sachs Group Inc., Research Division

Trevor Turnbull - Scotiabank Global Banking and Markets, Research Division

Presentation

Operator

Thank you for standing by. This is the Chorus Call conference operator. Welcome to the Pan American Silver Third Quarter 2013 Results Conference Call and Webcast. [Operator Instructions] And the conference is being recorded. [Operator Instructions] At this time, I would like to turn the conference over

Can't miss headlines: Gold demand, silver futures and more

Posted: 14 Nov 2013 12:54 PM PST

News through the mining lens: Uranium One is closing Honeymoon, Kinross continues to cut jobs and the WGC puts out numbers for Q3.

Dividend Aristocrats: Cluster Analysis Expanded

Posted: 14 Nov 2013 12:45 PM PST

In a recent article, twenty Dividend Aristocrats were ranked based on two performance metrics and one volatility factor. In the following analysis, the 20 stocks are supplemented with several dividend ETFs (VIG, DVY, VYM, and IDV) as well as eight low correlated ETFs. The idea is to "cluster" securities with high correlations and pair them with low correlated securities. Since the stocks may not expose low correlations, we include ETFs such as commodities (DBC) and gold (GLD) knowing in advance they will provide the low correlated securities we are looking for. The logic behind this approach is found in a quote by Richard Bernstein.

"It's not the number of asset classes that determines diversification; it's the correlation among those asset classes that determines diversification."

If one combines dividend aristocrat type stocks with dividend producing ETFs, and then throws in a few low correlated ETFs, we can build a portfolio

Can 3M Sustain Its Growth Momentum?

Posted: 14 Nov 2013 12:40 PM PST

Founded in 1902 as Minnesota Mining and Manufacturing Company, 3M Company (MMM) has been a reliable financial performer by all known financial metrics. The company is a conglomerate that produces a broad range of technology products and also offers services in segments that includes Industrial and Transportation, Health Care, Display and Graphics, Electro and Communications, Consumer and Office Services, and Safety, Security & Protection Services. Products such as coated and non-woven abrasives, car care products such as car shampoo, tapes, acoustic systems, filtration and energy control systems, cleaning and protection materials, roofing granules for asphalt shingles, optical film solutions for LCD electronic displays, high-performance fluids, electrical and telecoms products, and touch screens and monitors among others are being manufactured and marketed by 3M Company.

Over the years, with the exception of the quarters during the economic meltdown, 3M's earnings from its industrial sector have been tremendous compared to its peers

Ann Barnhardt: Constitutional Republic Is Overthrown!

Posted: 14 Nov 2013 12:37 PM PST

Ann Barnhardt: Constitutional Republic Is Overthrown!

In this interview with Elijah Johnson, Ann Barnhardt of the former Barnhardt Capital launches into another epic rant regarding fraud in the US banking sector and the fascists who have taken over the US from within- and overthrown our constitutional republic. Barnhardt’s latest on Obamacare, the markets, and the future of freedom in the “Land [...]

The post Ann Barnhardt: Constitutional Republic Is Overthrown! appeared first on Silver Doctors.

Gold Follows Through on Inside Day Trade Setup

Posted: 14 Nov 2013 12:31 PM PST

Radio Appearance with John Stadtmiller of Republic National Broadcasting

Posted: 14 Nov 2013 12:30 PM PST

Andy Hoffman joins John Stadtmiller of the Republic Broadcasting Network to discuss Obamacare, the debt ceiling and the amount of debt, Janet Yellen, mid-term elections this coming year.    They also talked about fiat currency, Central Banks, gold and silver.  To listen to the interview, please click the link below:

Andy Hoffman – Republic Broadcasting Network – November 12, 2013

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

Will 2014 mark the return of the gold ETF investor?

Posted: 14 Nov 2013 12:29 PM PST

Gold could move back to being viewed as a risk-on asset in 2014, says the WGC's Marcus Grubb.

ETF outflows pull gold demand lower in Q3 - WGC

Posted: 14 Nov 2013 11:35 AM PST

During the period, 118.7 tonnes of gold flowed out of ETFs but the reasons for the outflows were a continuation of the factors that saw over 400 tonnes leave in Q2.

Gold battling it out to find balance in supply and demand

Posted: 14 Nov 2013 11:16 AM PST

The gold price has not broken support in the lower $1,270 and the price is battling it out and finding another balance in supply and demand, says Julian Phillips.

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

Posted: 14 Nov 2013 10:59 AM PST

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

The best predictor of future behavior is relevant past behavior. Using that thought it seems clear that: The official national debt will continue to exponentially increase like it has for more than four decades. The dollar will continue to decline in purchasing power like it has for the past 100 years. Gold and silver will [...]

The post Gold & Silver vs. Hope & Change. Place your Bets! appeared first on Silver Doctors.

Precious Metals Markets: Welcome to ‘The Matrix’

Posted: 14 Nov 2013 10:30 AM PST

There will be few readers who are not at least partially familiar with the stylish, thought-provoking film classic, The Matrix. For those readers not among that group; The Matrix is a sci-fi drama which postulates a future where intelligent machines have seized control of the planet, and enslaved humanity – by hooking-up all of them to a gigantic virtual-reality machine.

These human Drones (the energy-supply for the Machines) are entirely oblivious of the fantasy-world in which they dwell (as slaves). They waste away their lives, content to be Drones in the Matrix. At this point, informed readers have already heard enough to know this comes very close to describing our own "reality."

Clearly, there is one, crucial difference: we have no secret, gigantic virtual-reality machine – into which all of the minds of humanity are plugged. No, our Matrix has been a creation of our own minds, fueled by year after year after year of saturation propaganda. Many readers will see such an allegory as hyperbolic. Not for long.

In general terms; how would we describe any fantasy-world/Matrix? While the English language is rich in adjectives, I would suggest that the following trio encapsulates the concept here completely and precisely: perverse, absurd, and unreal. Indeed, simply use those three adjectives together, and readers will deduce from the context alone that one is referring to some sort of Matrix/fantasy-world – without even the need to explicitly include any noun.

Now let's look at the Precious Metals Matrix. The usual starting-point in this trip "through the Looking Glass" is with a  visit to the entity which claims to represent the global gold industry: the World 'Gold' Council. Recently, the WGC issued its own proclamations on third-quarter global gold demand:

Global gold demand fell by 21% year-on-year in the third quarter to 868.5 metric tons, mainly due to a further exodus out of exchange-traded funds by investors in Western nations, the World Gold Council said Thursday. [emphasis mine]

It doesn't get much clearer than that. According to the WGC, the gold market collapsed in Q3 because investors were selling a lot of "gold".

What happens when you sell anything into a market? Inventories go up. What happens when you sell a lot of something (i.e. an "exodus")? Inventories go straight up.

What happened in the gold market during the third quarter, in the real world? Inventories went straight down. Indeed, during this entire, supposed "exodus" out of the gold market, faithfully reported by the WGC; Comex gold inventories have plummeted now by 80%, in aggregate.

This is the Real World. A sustained collapse in gold inventories, at a rate unprecedented in the modern history of markets. There is no more single piece of conclusive evidence on the status of any market than inventories. The report by the WGC is perverse, absurd, and unreal.

There are only two possibilities in this Precious Metals Matrix of the WGC. Either everything reported by the WGC about the gold market is simply complete fabrication; or investors were selling something in Q3 (and Q2), but they weren't selling gold. In other words, some/most (all?) of these paper-gold "funds" are nothing but paper, paper-called-gold.

Can we be more certain about our conclusion here? How about a confession directly from the Bankers who flog this paper-called-gold that they are knowingly (i.e. fraudulently) selling paper, but calling it "gold"?

Fanatical gold bugs losing sanity

Posted: 14 Nov 2013 10:30 AM PST

The gold bug conspiracy-loving charlatans have made a complete mockery of precious metals and the gold community. As the bear market has persisted these folks have shown no humility and become more fanatical in their already outlandish and ridiculous views.

More work from U.S. Fed sees gold rally

Posted: 14 Nov 2013 10:22 AM PST

The wholesale price of gold recovered all this week's previous 2.1% drop by Thursday morning in London, trading back at $1,288 before slipping $5 per ounce as the U.S. dollar steadied on the currency market.

World Gold Council just shrugs at Indias financial repression

Posted: 14 Nov 2013 10:02 AM PST

GATA

End of the Manipulation Timeline

Posted: 14 Nov 2013 10:00 AM PST

A newly discovered "secret memo" from 1974 discusses how important the U.S. government considered gold suppression then; and as we are learning now, such importance has never been more obvious – as we approach the end of the global fiat Ponzi scheme that commenced with the 1971 abandonment of the gold standard.

Since the Fall of 2011, when Global Meltdown II commenced with the U.S. being stripped of its triple-A credit rating, we have witnessed a level of Paper PM suppression putting the prior decade's shenanigans to shame.  Amidst an unending, rapidly expanding series of PM-bullish events – involving cratering economies, surging political and social unrest, and exploding debt, inflation, and money printing, TPTB have managed to push "dollar priced gold" and silver prices down by the incredible amounts of 33% and 53%, respectively…

Spot Gold 2011

…or in silver's case, closer to 60% if you go back to the May 2011 "Sunday night paper silver massacre."

Spot Silver 2011

Sometimes, a picture is worth a thousand words; which is why I have compiled the below, stunning table – depicting the major global political and economic events that have occurred since late 2011; and with them, the supposed "free market response" of gold and silver prices.  No matter how much fraud you think you've seen it's not until you see this table that it can truly be comprehended.

Part 1 of Graph

Part 2 of Graph

Part 3 of Graph

Once again, the reason I publish such monstrosities are to empower you to realize the conditions for Precious Metal appreciation – and currency collapse – have never been more acute in global history.  TPTB are desperate to prevent you from protecting your wealth with real money; and likely, behind the scenes are acquiring as much for themselves as possible.  Historically speaking, "he who owns the gold ultimately makes the rules"; and in the 21st Century, it will be China and Russia that own the gold; not the "traditional Western powers."  Hopefully, you, too will own some as well – before it's too late.Similar Posts:

Federal Reserve Whistleblower Tells America The REAL Reason For Quantitative Easing

Posted: 14 Nov 2013 09:30 AM PST

Federal Reserve Whistleblower Tells America The REAL Reason For Quantitative Easing

A banker named Andrew Huszar that helped manage the Federal Reserve’s quantitative easing program during 2009 and 2010 is publicly apologizing for what he has done.  He says that quantitative easing has accomplished next to nothing for the average person on the street.  Instead, he says that it has been “the greatest backdoor Wall Street [...]

The post Federal Reserve Whistleblower Tells America The REAL Reason For Quantitative Easing appeared first on Silver Doctors.

The silver market in 2013

Posted: 14 Nov 2013 09:03 AM PST

Thomson Reuters GFMS recently released their latest report on the silver market. We take a look at it and assess what it means for the silver price. There are several factors, some positive and others negative, that will affect the price of silver going forward.

Bernanke congratulates himself for transparency while Fed hides gold records

Posted: 14 Nov 2013 09:02 AM PST

GATA

Talking real money: World monetary reform

Posted: 14 Nov 2013 08:57 AM PST

The financial crisis of 2007-2008 has sparked the most intense interest in international monetary reform since Richard Nixon closed the gold window at the New York Fed and devalued the U.S. dollar in 1971.

New Fed chair in waiting speaks and gold jumps back towards $1300

Posted: 14 Nov 2013 08:31 AM PST

Janet Yellen, who takes over from Ben Bernanke at the Federal Reserve in 2014 and is currently going through the nomination process in Congress today, looks like being a gold-bugs best friend in the...

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India Gold demand falls 32% in Q3, 2013 demand to surpass 2012: WGC

Posted: 14 Nov 2013 08:23 AM PST

However, the strength of Indian demand in the first half of the year means that full year consumer demand is still on track to narrowly exceed the 2012 total. One side effect of this was that while global recycling of gold fell 11% compared to the same quarter in 2012, in India the recycling figure increased more than fivefold to 61t.

Gold rally corrective before turning lower: Elliott Wave

Posted: 14 Nov 2013 08:17 AM PST

Gold found some support and it seems that price is now at the start of a larger three wave retracement back to $1,305-$1,326 region. As such, be aware of a slow and choppy recovery in the next few days before downtrend resumes.

MARKETS TODAY: Rigged, Manipulated & Totally Insane

Posted: 14 Nov 2013 08:15 AM PST

MARKETS TODAY: Rigged, Manipulated & Totally Insane

Investors better remember that a rigged market has a lifespan.  Once the manipulation and rigging no longer works, the system collapses and fundamentals return.  However, you wouldn't know that today by the charade that continues to take place in the MSM and from official releases via the Federal Reserve. 2013 Silver Maples As Low As [...]

The post MARKETS TODAY: Rigged, Manipulated & Totally Insane appeared first on Silver Doctors.

Performance and Rankings Update

Posted: 14 Nov 2013 08:06 AM PST

The post Performance and Rankings Update appeared first on Monty Pelerin's World.

The updated performance through November 13 is presented below. Additionally, the new rankings as of this same date are provided. Performance is based on the rankings as of November 1. The assumption is that you bought and held equal dollar amounts within a category and that you still hold these ETFs. If you entered at […]

The post Performance and Rankings Update appeared first on Monty Pelerin's World.

Gold Trader: “Manufactured” Crash Imminent, Gold to Test June Low Next Week As JPM Guns for $1,000

Posted: 14 Nov 2013 08:00 AM PST

"At least two big banks, I would say Goldman Sachs, JP Morgan, maybe a big hedge fund…are trying to push gold down to that support zone at around $1000. I think they're already short, and right now they're letting the reversing dollar do the work for them.
I think gold tests the June low by the middle of next week.
When gold bottoms, it will bottom in a v-shape—& it'll come roaring back out…because those three funds that have been trying to drive this down…will flip and go long. I think any smart hedge fund manager is looking for this $1000 level, and they're just like me—they're sitting in cash and waiting and licking their lips. If a washout comes, they're going to put the money to work…so I think the buying pressure…is going to be huge.

T
he bottom will be an event—very short and we will very quickly rally back up to test $1520…and then I think by next summer we'll already be testing $1800-$1900."

Click here for more on the two banks attempting to push gold down to $1,000:

Yellen for Moar

Posted: 14 Nov 2013 08:00 AM PST

Six weeks ago, I wrote of how Janet Yellen represented the culmination of four-plus decades of reckless global monetary policy.  Like Ben Bernanke, her background is entirely in the ivory tower (Harvard and Yale, to be specific) and government; and like the Helicopter Man himself, she is entirely devoted to the belief that money printing cures all ills.  Worse yet, she has been wrong about every major decision she has made in her two decades at the Fed – as Peter Schiff pointed out in this fantastic video.  Yellen has made it crystal clear that "full employment" is far more important than inflation control; and thus, will do "whatever it takes" to make that happen – even if the lower "unemployment rate" she targets falls solely due to plunging Labor Participation.

As I have said all year, the Fed can never "taper" QE; and in fact, is more likely to increase it in the coming months.  Fiat currency, by definition, is a Ponzi scheme that must grow larger to survive; and given this is the world's largest-ever fiat regime, the coming printing press output will likely be the most aggressive in history.  TPTB have been trying all year to convince the masses of economic "recovery" via epic levels of money printing, market manipulation, and propaganda – but it's decidedly not working.  Last night alone, bellwether tech stock Cisco Systems – amidst a raging NASDAQ rally – reported the most abysmal forward guidance imaginable; which can only be done justice by the below picture.  And oh yeah, Wal-Mart, the nation's largest company and employer, just missed earnings expectations and reduced its forward guidance as well.  But don't worry, the economy's "recovering."

Cisco Chart

Next, Japan reported a paltry 0.4% of 3Q GDP, half the fourth quarter rate and barely positive despite nearly a year of "quantitative qualitative" easing.  Don't worry, the banks receiving such free money reported record profits; but as greed as no bottom, they are demanding "moar" stimulus!

And on to Europe, where despite the continually propagandized "recovery," it was reported that third quarter GDP "grew" at a measly 0.1% rate, down from 0.3% in the second quarter.  France and Italy were negative, while Spain was reported to be – LOL – up 0.1%.  Yeah, Spain was positive – with its 30% unemployment rate.

Just last week, the ECB lowered its base financing rate (for insolvent banks) to a pitiful 0.25% – just above the Fed's "range" of 0.00% to 0.25%.  But it's clearly not enough; which is why yesterday, ECB governors spoke of the necessity to consider their own version of QE – that is, outside the covert Fed "swap agreements" that secretly funnel cash into European banks – and even the incomprehensible "NIRP," or Negative Interest Rate Policy, I wrote of last year.

On to the main event which actually happened yesterday evening, in advance of the aforementioned news; and today's Senate confirmation hearing for Yellen's Fed Chairmanship, which would commence in February.  Her official comments were published beforehand; and lo and behold they vehemently extoll the virtues of the current money printing scheme, in which a whopping 70% of Treasury issuance is being monetized; of which, she claims, there is "more work to do" to support the current recovery.  In other words, yet again the liars and "gurus" have it wrong; as "tapering" is decidedly not going to occur at the December FOMC meeting; and likely, won't even be considered until after Yellen takes office.  Heck, with the upcoming, massive "mortgage resets" coming – sound familiar? – Raising rates any time in the future would be pure "government suicide."

Showing just how psychotic the degree of market intervention and moral hazard has become, global stock and bond markets are all higher based on this cornucopia of bad news (what else is new?), as the path to hyperinflation draws still closer.  Even though it's been proven that diminishing returns are now causing money printing to contract global GDP, the aforementioned Ponzi scheme nature of fiat money necessitates it – lest the global economy will immediately collapse.

PAPER PMs are higher; but of course, were stopped immediately after Yellen's comments by the Cartel Herald algorithm after rising by exactly 1%; followed by the 2:15 AM algorithms when gold attempted to rise further – in the latter case, for an incredible 115th time in the past 127 days.  Such blatant manipulation is now on display for the entire world to see – causing it to step up physical buying at record rates.  Just this week, U.S. Mint Silver Eagle sales surpassed the record year of 2011's total; whilst through September; Chinese gold imports surpassed 2012's record levels, for example.

24hr Gold 11-13 11-14

How long can this gaping dislocation be maintained – in the face of surging physical demand and plunging supply?  And how long can the global financial system hold up in the face of collapsing economies and surging money printing?  Only time will tell; but my guess is not a lot!Similar Posts:

Currency wars redux: Is U.S. dollar next?

Posted: 14 Nov 2013 08:00 AM PST

Talk of currency wars has made the headlines regularly since the outbreak of the financial crisis in late-2007. A lack of economic growth prompts countries to try and grab a slice of someone else's demand.

Gold seen flowing east as refiners recasting bars for Asia

Posted: 14 Nov 2013 07:26 AM PST

Gold demand in China, India and the Middle East surged in the 12 months to September while European sales contracted, underscoring a shift in the global bullion market from west to east, according to the World Gold Council.

Have You Moved Any Capital Offshore Yet?

Posted: 14 Nov 2013 07:00 AM PST

Normally I write each day regarding a subject that pertains to the big economic picture, today I would like to offer you a solution to investing funds offshore and doing it completely legally while you still can.  I would like to announce a “re” partnership between Miles Franklin and BFI, a wealth management group based in Switzerland.  To give you a little bit of background history, Miles Franklin was started back in 1990 and primarily introduced investors who were looking for non-dollar denominated investments to BFI and their access to “Swiss annuities.”  This partnership went on through the late 1990′s until David Schectman thought it was wise for his clients to switch gears and buy precious metals in the place of any sort of paper investments.  Miles Franklin and BFI did not part ways per se but did very little business together because the precious metals businesses of each overlapped the other.  The partnership at this point was at a lull with the exception of Miles Franklin’s ability to offer the vaulting facilities of BFI for anyone wanting Swiss storage.

Fast forward to today, David and Andy have decided to rekindle the partnership because they realized that many Miles Franklin customers have assets that they would like to be either invested or domiciled outside of the U.S. and this process has become very difficult.  As you may or may not know, many Swiss banks have been “firing” their American customers because of the burden of the new FATCA reporting law. BFI, however, continues to welcome American customers. They offer a full array of international wealth management services. Clients simply need to understand that, today, the requirements of reporting are a part of doing business. BFI helps them understand and meet the rules.

It is still completely legal to move assets or accounts “offshore."  A growing number of investors are taking this route, but not in order to “hide” assets, to avoid taxes or for any other nefarious reason.  Investors simply do not want all of their assets in one “basket” (domicile). And they are looking for safety. Obviously, if you are reading this then the words “confiscation,” “capital controls,” “bail ins,” “asset tax” etc. have crossed your mind before.  The time to “get out of the system” as Jim Sinclair is so fond of saying is while it is still legal to do so and before any restrictions or capital controls are put in place.

But “why” would it ever be necessary to have capital outside of our own borders?  I will give you one example, and you can then use your own imagination for other examples.  Let’s assume that capital controls are put in place (which I firmly believe are coming).  Let’s also assume that under the new health care act you need a hip transplant, heart transplant, eye surgery or whatever and it is deemed that for whatever reason the surgery is denied.  Not only that, as I understand it, it may be illegal for a doctor to perform the surgery even if you could pay for it with a credit card, check or even cash…so what do you do?  Well, you could find a doctor at a respected health center outside of the U.S. and arrange for the surgery…but…how will you pay?  If capital controls are in place it may well be illegal to wire funds or move funds outside of the U.S.!  In this case you would be “stuck” and not able to pay with your good funds for a surgery that if not done will change the quality of your life.

So, with the above example, what good are millions of dollars if you cannot move them or use them?  It is for this reason and others similar that David and Andy have decided to re partner with BFI and offer this legal avenue of diversifying the geographical location where you hold your capital.  BFI has the ability to offer a broad array of wealth management solutions, including financial planning, references to trustee services, and investments from stocks and bonds to mutual funds from all over the world.  They also advise investors in regard to insurance and annuity solutions along with of course precious metals and vaulting capabilities.  The bottom line is that if you have a financial need and would like it to be done outside of the U.S., BFI can either perform the service or refer you to an institution that can.

I am excited about this partnership as I have spoken to many investors who have already been kicked out of their foreign bank or who would like to have some funds outside of the U.S. but have thrown up their hands in disgust because of obstacles.  BFI has been doing business with U.S. clients since 1990 and now, because of the obstacles already put in place for Americans wanting to do business overseas, they are actually specifically seeking the business of Americans.  As they put it, “Swiss banks have not abandoned this market because of Americans, it is because the reporting obstacles have grown higher than most banks are willing to scale.  We welcome the business.”

I would urge anyone who has even contemplated having and holding investments outside of the U.S. to call us at 800-822-8080.  We will answer any questions that you might have and introduce you to the folks at BFI who are very experienced at working to satisfy the financial needs of American (and Canadian) citizens.  This is still perfectly legal.  This is still an option.  It is possible or even probable in my opinion that legally moving your funds to a safe haven like Switzerland may at some point no longer be an option.Similar Posts:

Flow of gold from West to East continues as World Gold Council says China gold buying rises 18% y/o/y

Posted: 14 Nov 2013 06:57 AM PST

Earlier today we posted the numbers from the WGC on Q3 2013 gold demand – and for physical gold, demand has continued to be strong rising some 6% – this is on the back of the staggering Q2...

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World Gold Council: Gold coin and bar demand is up 6% y/o/y – as consumer demand hits year-to-date record

Posted: 14 Nov 2013 06:28 AM PST

Back in August we published the World Gold Council's global gold demand report for Q2. That Q2 report showed that bar and coin demand had jumped a staggering 77%. We noted: Total gold bar and coin...

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Gold Trader: “Manufactured” Crash Imminent, Gold to Test June Low Next Week As JPM Guns for $1,000

Posted: 14 Nov 2013 06:20 AM PST


“At least two big banks, I would say Goldman Sachs, JP Morgan, maybe a big hedge fund…are trying to push gold down to that support zone at around $1000. I think they're already short, and right now they're letting the reversing dollar do the work for them. I think gold tests the June low by [...]

The post Gold Trader: "Manufactured" Crash Imminent, Gold to Test June Low Next Week As JPM Guns for $1,000 appeared first on Silver Doctors.

Talking Real Money: World Monetary Reform

Posted: 14 Nov 2013 05:51 AM PST

Talking Real Money: World Monetary Reform

The financial crisis of 2007-2008 has sparked the most intense interest in international monetary reform since Richard Nixon closed the gold window at the New York Fed and devalued the U.S. dollar in 1971. Nixon's action was widely seen at the time as presaging the end of the dollar-based world trade and financial system. On [...]

The post Talking Real Money: World Monetary Reform appeared first on Silver Doctors.

Chinese gold buying almost exactly compensated for falling Indian demand in Q3 as the global gold sell-off decelerated

Posted: 14 Nov 2013 04:39 AM PST

Increased Chinese gold purchases of 201 tons in the third quarter almost exactly compensated for a fall in demand from India, according to new data from the World Gold Council. But gold exchange traded products saw net outflows of 119 tons and total global gold demand fell by 21 per cent on the same months of last year at 869 tons.

This fall in demand from investors for the precious metal is the main reason for the price decline, albeit the investment market is being driven by blatant price manipulation by the two main bullion banks at the behest of the US Federal Reserve which is taking every available measure to defend the value of the US dollar amid $1 trillion-a-year of money printing.

Sell-off ending

However, although this was the third consecutive quarter of net outflows from ETPs, the pace of gold liquidation slowed from 402 tons to 119 tons in the second quarter. That’s a big decline in net gold sales which are now clearly on a falling trend.

The question for gold investors is naturally when will this fall in demand stop and turn around? Given that it is the speculative ETP investor who has been selling recently this could all turn on a sixpence, or gold eagle perhaps.

India is the other weak spot with a total ban on gold coin imports since July, and restrictions that meant 20 per cent of all gold imported must be re-exported before additional supplies could be bought. This has confused the market and caused a hiatus in demand.

Besides it is not only in China that gold demand is offsetting the Indian slump. In Dubai the gold souks have seldom been busier with cases of small scale smuggling of gold to India already being reported locally in the press. In the distant past such a trade helped to make the city rich.

Central bank buyers

Central banks are still net buyers of gold though in the third quarter official bullion buying dropped 17 per cent on a year ago to 93 tons. Russia, Kazakhstan, Azerbaijan and the Ukraine were the biggest buyers.

The obvious conclusion is that the gold price would be heading up again this year if it was not for the Fed spooking speculative investors. The main fundamentals remain in place and central bank money printing is still in top gear.

The Chinese know a buying opportunity when they see one and Indians would love to buy gold but their government is intervening in the gold market in another bungled attempt to boost the real economy. Indians know only too well how to protect themselves from a devaluing rupee, buy gold!

Talking Real Money: World Monetary Reform

Posted: 14 Nov 2013 04:32 AM PST

The financial crisis of 2007-2008 has sparked the most intense interest in international monetary reform since Richard Nixon closed the gold window at the New York Fed and devalued the U.S. dollar in 1971. 

Today's AM fix was USD 1,283.25, EUR 955.23 and GBP 801.53 per ounce.
Yesterday's AM fix was USD 1,276.00, EUR 951.25 and GBP 798.75 per ounce.

Gold rose $4.40 or 0.35% yesterday, closing at $1,273.30/oz. Silver slipped $0.19 or 0.92% closing at $20.56. Platinum fell $5.55 or 0.4% to $1,424.20/oz, while palladium fell $9.50 or 1.3% to $727.97/oz.

Gold inched up again after Federal Reserve Chairman nominee Janet Yellen said the U.S. economy and labor market must improve before QE is reduced. This lifted confidence as silver prices recovered from their lowest levels since August. "The focus for the bullion market may shift to the upcoming testimony by Yellen," James Steel, an analyst at HSBC, commented. "Chinese gold demand remains brisk. However, gold is likely to remain on the defensive in the near term, wrote Steel."

The latest long term gold trend research from Nick Laird at ShareLynx indicates that the price of gold may rise in the near future. In the chart below, Nick references those periods from the past when it was prudent  to buy and to sell. He also indicates that this particular period, November 2013, may be a prudent time to to buy. This chart reaffirms GoldCore's long term outlook for the price of gold.


Long Term Gold Trend (www.sharelynx.com)

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

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

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

The financial crisis of 2007-2008 has sparked the most intense interest in international monetary reform since Richard Nixon closed the gold window at the New York Fed and devalued the U.S. dollar in 1971. Nixon's action was widely seen at the time as presaging the end of the dollar-based world trade and financial system. On the face of it, this probably wasn't an unreasonable expectation at the time. Within fewer than ten years, however, it was proven to be far off the mark. The dollar fell alright, but by the middle 1980s had recovered strongly.

In retrospect it is clear why the dollar sceptics were wrong. To begin with, the U.S. economy was still the world's largest and the U.S. was still the leader of the "free world," that is to say the world outside the communist bloc. The NATO countries of Western Europe were wholly dependent on the U.S. for security as well as for markets.

The same applied to Japan, South Korea and Taiwan, while the signatories of the secret UK/USA intelligence agreement (the U.S., UK, Canada, Australia and New Zealand) represented the Anglo core of the old British Empire, a group with no interest in seeing the dollar replaced. Communist Russia and China were in no position to register an opinion, much less offer an alternative. By default, the dollar soldiered on, thanks to the geopolitical realities of the time.

But what about today's realities? Continue this fascinating story in our November edition of Insight – Talking real money: World Monetary Reform.

Click here to download your own copy of Talking real money: World Monetary Reform

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Talking Real Money: World Monetary Reform

Posted: 14 Nov 2013 04:32 AM PST

gold.ie

Gold could rebound to hit $10,000 an ounce: Nick Barisheff

Posted: 14 Nov 2013 03:38 AM PST

History also shows that gold has retained its purchasing power compared to any other asset class in history. For eg. a compact car would have cost 66 ounces of gold in 1971, the year President Nixon closed the gold window and 10 ounces of gold in 2012.

"More Work" from US Fed Sees Gold Rally, China Beats India as World #1 Buyer

Posted: 14 Nov 2013 03:00 AM PST

Bullion Vault

Eric Sprott: Silver, and Silver Stocks, Will Go Much Higher!

Posted: 14 Nov 2013 02:23 AM PST

"I fully expect that Ted's estimates for tomorrow's COT Report will live up to the advance billing"

¤ Yesterday In Gold & Silver

Gold rallied unsteadily through all of Far East and early London trading on their respective Wednesdays.  There was a slight dip into the noon London silver fix, and then the price rallied until just before lunch in New York before getting sold down to its low of the day which came right at the 1:30 p.m. EST Comex close.

From that point, the gold price developed an immediate positive bias, before shooting up about ten buck in the last hour of trading before the 5:15 p.m. electronic close.

The CME recorded the low tick as $1,265.00, and the high tick at $1,283.70 in the December contract.

Gold closed in New York at $1,282.30 spot, up $16.10 on the day.  Volume, net of roll-overs, was very light at only 107,000 contracts.

Here's the New York Spot Gold [Bid] chart on its own, so you can see the price action in that market in more detail.

The silver price action on Wednesday was the same as the gold price action, sans the price spike just before the 5:15 p.m. electronic close.  As I'm sure you've already noted, the low of the day came at the close of Comex trading as well.

The CME recorded the high and low ticks at $20.855 and $20.41 respectively in the December delivery month.

Silver closed on Wednesday at $20.61 spot, which was down 9 cents from Tuesday's close.  Gross volume was an eye-popping 99,000 contracts, but once the [very] heavy roll-over/switches were subtracted out, the net volume fell all the way down to 40,500 contracts, the same net volume as Tuesday.  I'm not exactly sure what to make of this, but it may mean nothing, however it sure got my attention.

Platinum chopped sideways in a very tight price range yesterday.  Palladium did the same right up until the Comex open.  Then the downwards price pressure began.  The low, like gold and silver, came at the Comex close, and the subsequent rally didn't get far.  Here are the charts.

The dollar index closed in New York late Tuesday afternoon at 81.14.  After a very weak rally attempt overnight, the index rolled over in mid-morning trading in London, making it down to 81.03 by 9:20 a.m. EST in New York.  The subsequent rally took the index up to its 81.28 high at, or shortly after, the London p.m. gold fix, before the dollar rolled over once more and broke through the 81.00 level to the downside, and it never recovered after that.  The index closed at 81.80, which was down 24 basis points from Tuesday's close.

The gold stocks gapped up about a percent and a half at the opening on Wednesday morning in New York, but quickly fell back to almost unchanged by 10 a.m.  After that they didn't move much higher, and chopped around just above the unchanged mark for the entire day.  The HUI closed up 0.50%.

It was pretty much the same story with the silver equities, but Nick Laird's Intraday Silver Sentiment Index only closed up 0.21%.

The CME's Daily Delivery Report was another quiet affair again yesterday, as only 1 lonely silver contract was posted for delivery within the Comex-approved depositories on Friday.

There was a withdrawal from GLD yesterday.  This time it was 86,968 troy ounces.  And as of 10:05 p.m. EST yesterday evening, there were no reported changes in SLV.

The U.S. Mint had a smallish sales report yesterday, as they sold 4,000 troy ounces of gold eagles and 1,000 one-ounce 24K gold buffaloes.

There were no reported changes over at the Comex-approved warehouses in gold on Tuesday.

In silver, there was nothing reported received, and only 130,628 troy ounces shipped out.  The link to that activity is here.

I have quite a few stories for you today, and I'll happily leave the final edit up to you.

¤ Critical Reads

Fed's Lockhart Wants to See Higher Inflation Before Taper

Federal Reserve Bank of Atlanta President Dennis Lockhart, who has backed record stimulus, said he wants to see inflation accelerate toward the Fed’s 2 percent goal before the central bank reduces $85 billion in monthly bond purchases.

“I’d like to see some movement toward the target” before tapering, Lockhart said today in a Bloomberg Radio interview with Kathleen Hays. Inflation is “stable but too low” and a move up would “give me some confidence we are not dealing with some downside scenario that might develop,” said Lockhart, who doesn’t vote on policy this year.

An assessment of whether to reduce bond purchases should “focus mostly on employment and inflation, both of which are pretty far from the mandate-consistent levels we are seeking,” Lockhart said in Montgomery, Alabama.

This Bloomberg story was posted on their website early Tuesday afternoon Denver time...and I found it yesterday's edition of the King Report.

Yellen's Challenge at the Fed: Speaking Persuasively to Investors

Janet L. Yellen, President Obama’s choice to lead the Federal Reserve over the next four years, has championed the idea that the Fed can stimulate the economy simply by speaking clearly.

But even before she takes over, the questions she will begin to confront on Thursday, as she appears before the Senate Banking Committee, are whether the Fed under her leadership can communicate more clearly than it has managed to do in recent months — and whether that is the best the Fed can do to lift the economy from its enduring malaise.

Ms. Yellen, the Fed’s vice chairwoman since 2010, has been a key architect of the push to more fully explain to the public the Fed’s actions, its reasoning and its plans. The theory is that the Fed can exert greater influence over investors, by enlisting them to hold down longer-term interest rates at a time when the Fed has cut short-term rates practically as low as they can go, by detailing an itinerary rather than sending occasional postcards.

She is widely expected to double down on this strategy, assuming she is confirmed as chairwoman.

I would carefully pay attention to what she does before I believed a word she says, dear reader.  This 'story' was posted on The New York Times website on Tuesday sometime...and I thank Phil Barlett for sending it along.

How JPMorgan's Latest PR Stunt Blew Up In Its Face

In a shocking turn of events, the Financial Times reported that JPM just canceled the #AskJPM event. The bank said: "#That idea back to the drawing board."

It's obvious that some of the tweets they got back were not what they were expecting.  It was hilarious...and ugly, all at the same time.

This Zero Hedge piece from late yesterday afternoon EST is a hoot to read...and I thank reader Michael Cheverton for bringing it to our attention.

Investment Manager Explains Why 99.5% Of Americans Can Never Win

Beyond the charts and warnings from economists and investors, perhaps the most disturbing commentary on income inequality in America was written by an investment manager in 2011.

"In my view, the American dream of striking it rich is merely a well-marketed fantasy that keeps the bottom 99.5% hoping for better and prevents social and political instability," the manager wrote in an email to Professor G. William Domhoff of the University of California at Santa Cruz.

The manager, who asked to remain anonymous to protect his relationship with wealthy clients, expresses his frustration with a financial system that is rigged to help the elites at the cost of everyone else.

This article was posted on the businessinsider.com Internet site during the New York lunch hour yesterday...and it's courtesy of Roy Stephens.

Euro Tumbles After ECB Hints At Q.E.

Despite the ECB's recent "stunning" rate cut, which sent the EUR modestly lower by a few hundred pips, the resultant resurge in the European currency has left the European Central Bank even more stunned: just what does it have to do to force its currency lower and boost Europe's peripheral economies, especially in a world in which every other major central banks is printing boatloads of money each and every month?

We hinted at precisely what the next steps will be two days ago when in "Next From The ECB: Here Comes QE, According To BNP" we said "BNP is ultimately correct as the European experiment will require every weapon in the ECB's arsenal, and sooner or later the ECB, too, will succumb to the same monetary lunacy that has gripped the rest of the developed world in the ongoing "all in" bet to reflate or bust. All logical arguments that outright monetization of bonds are prohibited by various European charters will be ignored: after all, there is "political capital" at stake, and as Mario Draghi has made it clear there is no "Plan B." Which means the only question is when will Europe join the lunaprint asylum: for the sake of the systemic reset we hope the answer is sooner rather than later."

This Zero Hedge story from yesterday morning is definitely a must read.  I thank Manitoba reader Ulrike Marx for her first contribution to today's column.

Europe Follows U.S. in Demanding Germany Explain Its Exporting Ways

As we discussed two weeks ago, it would appear Germany's lack of willingness to throw itself on the pyre of self-sacrifice and not adopt a global Fairness Doctrine - as engendered by the U.S. Treasury's (and IMF's) bashing of the core European nation's for maintaining its export strength and daring to keep Europe intact and thus a periphery-damaging strong Euro - is gathering steam.

None other than Europe itself is now 'probing' Germany's trade surplus, using enhanced powers over how euro nations manage their economies with the IMF urging German Chancellor Angela Merkel to curtail the trade surplus to an “appropriate rate” to help euro  partners cut deficits.

I must be dreaming.  Did I really just read that?  You couldn't make this stuff up.  Here's a Zero Hedge story about this from early yesterday morning EST...and it's the second article in a row from Ulrike Marx.  South African reader Bob Visser sent me a BBC story about this as well.  Here's the link to that.

E.U. gives up hope on Ukraine deal at Vilnius summit

E.U. diplomats have given up hope Ukraine will sign an association and free trade treaty at the Vilnius summit later this month.

The rupture comes after Ukrainian authorities on Monday (11 November) charged Serhiy Vlasenko, the lawyer of jailed former PM Yulia Tymoshenko, with domestic violence in a case which could see him also jailed for three years.

The move came 48 hours before a European Parliament mission on Wednesday in Brussels gives a final verdict on whether Ukraine has stopped "selective justice."

It also came one week before EU foreign ministers next Monday decide whether to sign the pact at an EU summit with former Soviet states in the Lithuanian capital on 27 November.

This news item was posted on the euobserver.com Internet site yesterday morning Europe time...and it's the second offering of the day from Roy Stephens.

Dutch Eurosceptic Wilders and France's Le Pen unite

The Eurosceptic Dutch politician Geert Wilders and French National Front (FN) leader Marine Le Pen have launched what they call an "historic" alliance for next year's European elections.

Mr Wilders said they had agreed on the need to repatriate from Brussels the power to control their countries' borders and economies.

They held strategy talks in The Hague.

Both leaders say Europe's political elite has been too tolerant of Islam and both want to curb immigration.

This article was posted on the bbc.co.uk Internet site early yesterday afternoon GMT...and it's the second offering of the day from Bob Visser.

Russian legislative proposal would outlaw U.S. dollar

Predicting the imminent collapse of the U.S. dollar, a Russian lawmaker submitted a bill to the country’s parliament on Wednesday that would ban the use or possession of the American currency.

Mikhail Degtyarev, the lawmaker who proposed the bill, compared the dollar to a Ponzi scheme. He warned that the government would have to bail out Russians holding the U.S. currency if it collapsed.

“If the U.S. national debt continues to grow, the collapse of the dollar system will take place in 2017,” said Mr. Degtyarev, a member of the nationalist Liberal Democrat Party who was a losing candidate in Moscow’s recent mayoral election.

“The countries that will suffer the most will be those that have failed to wean themselves off their dependence on the dollar in time. In light of this, the fact that confidence in the dollar is growing among Russian citizens is extremely dangerous.”

This very interesting news item was posted on the Washington Times website yesterday...and I found it embedded in a GATA release.

Pope Francis' anti-corruption stance agitating mafia - prosecutor

The anti-corruption stance of Pope Francis has riled Italy’s powerful mafia groups, according to a prosecutor who specializes in mob cases.

State prosecutor Nicola Gratteri – who works in the southern Italian region of Calabria, where the ‘Ndrangheta mafia is active – told the Italian daily Fatto Quotidiano that Francis’ statements on transparency and dismantling economic power in the Vatican are making mobsters “nervous and agitated.”

“I cannot say if the organization is in a position to do something like this, but they are dangerous and it is worth reflecting on,” Gratteri said. “If the godfathers can find a way to stop him, they will seriously consider it.”

This rather disturbing, but not surprising story was posted on the Russia Today Internet site in the wee hours of this morning Moscow time...and I thank Bob Visser for sliding it into my in-box in the wee hours of this morning MST.

Tehran Diary: Four Iranians on Life in the Time of Sanctions

In 2010, a year after the obviously rigged reelection of President Mahmoud Ahmadinejad resulted in bloody unrest, SPIEGEL editor Dieter Bednarz and German-Iranian journalist Nasrin Bassiri asked five Tehran residents to describe their everyday lives. Additional diary excerpts were published a year later.

A few of the authors were subsequently persecuted, partly for criticism of the regime voiced in their diaries. Political activist Kouhyar Goudarzi was arrested and accused of having had contact with SPIEGEL, but he then managed to flee to Turkey. Mohammad Mostafaei, an attorney known for his battle against stoning, evaded arrest by fleeing to Norway. Human rights lawyer Nasrin Sotoudeh was held in the notorious Evin Prison until recently.

Nevertheless, three of the diary authors decided to share their thoughts once more with SPIEGEL. Graphic designer Reza Chandan is part of the group for the first time, though as the husband of attorney Sotoudeh, he is already familiar with the diaries.

This 3-page essay was posted on the German website spiegel.de yesterday.  It has had a headline change...as it used to read "Iranians share hope for end of sanctions in SPIEGEL Tehran Diary".  I thank Roy Stephens for sending it.

Ex-Bank Executive May Face Death in Vietnam Fraud Trial

A Vietnam court will consider the death penalty for two former executives if they’re convicted in a $25 million fraud scheme, signaling an aggressive stance as leaders seek to clean up the banking system.

The People’s Court of Ho Chi Minh City may hand down the death penalty for Vu Quoc Hao, the former general director of Agribank Financial Leasing Co. No. 2, who is charged with embezzling 531 billion dong ($25 million) of state property, the official Vietnam News reported yesterday. Dang Van Hai, the former chairman of a construction company, also faces the death penalty in the case, the newspaper said.

The trial comes as the government seeks to shore up Vietnamese banks saddled with Southeast Asia’s highest rate of bad debt and turn around an economy that grew last year at the slowest pace since 1999. The central bank governor vowed to crack down on violations by groups of shareholders working against banking r

Russian legislative proposal would outlaw U.S. dollar

Posted: 14 Nov 2013 02:23 AM PST

Russian legislative proposal would outlaw U.S. dollar

Predicting the imminent collapse of the U.S. dollar, a Russian lawmaker submitted a bill to the country’s parliament on Wednesday that would ban the use or possession of the American currency.

Mikhail Degtyarev, the lawmaker who proposed the bill, compared the dollar to a Ponzi scheme. He warned that the government would have to bail out Russians holding the U.S. currency if it collapsed.

“If the U.S. national debt continues to grow, the collapse of the dollar system will take place in 2017,” said Mr. Degtyarev, a member of the nationalist Liberal Democrat Party who was a losing candidate in Moscow’s recent mayoral election.

“The countries that will suffer the most will be those that have failed to wean themselves off their dependence on the dollar in time. In light of this, the fact that confidence in the dollar is growing among Russian citizens is extremely dangerous.”

This very interesting news item was posted on the Washington Times website yesterday...and I found it embedded in a GATA release.

Four King World News Blogs/Audio Interviews

Posted: 14 Nov 2013 02:23 AM PST

Four King World News Blogs/Audio Interviews

1.  William Kaye: "Man Who Predicted Gold Smash Tells Investors What's Next".  2. John Ing: "Historic Meeting in China to Shake the Entire World".  3. Richard Russell: "Unprecedented and Historic Events Shock the Financial World".  4. The audio interview is with Dr. Stephen Leeb.

[Please direct any questions or comments about what is said in these interviews by either Eric King or his guests to them, and not to me. Thank you. - Ed]                                                                                                                                        

Gold has achieved a staggering 3,500pc return since 1970, a new report has found

Posted: 14 Nov 2013 02:23 AM PST

Gold has achieved a staggering 3,500pc return since 1970, a new report has found

If you were an early investor in gold and have stuck by the precious metal for the past 43 years you will have made a small fortune.

A new report, released today by the Centre for Economics & Business Research and CoinInvestDirect, an online precious metals dealer, has found that the gold price has soared by some 3,500pc since 1970. This means an investor who spent £27,800 on gold and retained their investment ever since will today be a millionaire.

An investor with more modest sums would still be sitting on incredible gains. For instance, an investment of £10,000 would be worth £360,000 today.

This gold-related story was posted on the telegraph.co.uk Internet site late yesterday morning GMT...and I found it a GATA release.

Venezuelan opposition leader says desperate president plans to sell gold reserves

Posted: 14 Nov 2013 02:23 AM PST

Venezuelan opposition leader says desperate president plans to sell gold reserves

Venezuela's President Nicolas Maduro was a step closer to getting the votes he needs to govern by decree after his ruling party ousted an opposition lawmaker from parliament.

Opposition leader Henrique Capriles said the government was in negotiations to sell oil assets and gold reserves worth $1.8 billion to cover its "currency needs."

Venezuela is pretty much toast whether it sells its gold reserves or not.  The headline to this story posted on the google.com Internet site on Tuesday actually reads "Venezuela's Maduro closes in on powers by decree".  It's another story from a GATA release that Chris Powell filed from New Orleans yesterday.

Gold gets mere travelogue from Vanity Fair instead of investigative reporting

Posted: 14 Nov 2013 02:23 AM PST

Gold gets mere travelogue from Vanity Fair instead of investigative reporting

Vanity Fair magazine this week publishes a long article about gold that is mostly just travelogue from mining venues and brief profiles of a few mining industry personalities and unfortunately touches only briefly on market manipulation.

The author, Matthew Hart, who is writing a book about gold, says this about the daily gold price "fixing" by the major bullion banks in London:

"The opacity of the fixing has a consequence: It's impossible to know if the price is being rigged. Because the banks own bullion, it's fair to wonder about this, and people do. The Commodity Futures Trading Commission in Washington began looking at the fixing early this year. According to The Wall Street Journal, the CFTC wanted to see if prices were being manipulated. The gold price determines the value of such derivatives as the $198 billion of precious-metals contracts held by U.S. banks last year."

And then Hart rushes away to the African bush.

Too bad. For any journalist who really wants to know whether the gold price is rigged needs only to put a few pointed questions to the biggest players in the gold market, central banks.

GATA's secretary/treasurer, Chris Powell takes author Matthew Hart to task over his VF article I posted in this space yesterday.

China could match U.S. gold reserves inside 10 years – or

Posted: 14 Nov 2013 02:23 AM PST

China could match U.S. gold reserves inside 10 years – or

Since writing a recent article suggesting that China’s Reserve Bank, the Peoples Bank of China (PBOC), has been building up its gold holdings, but without reporting this to the IMF, we have been contacted by a Bloomberg research analyst, Andrew Cosgrove, who has, with his colleague Kenneth Hoffmann, been working on Chinese gold data, and who has come up with a somewhat similar conclusion.  In this case some specific figures have been developed in the research which do tie in well with Philip Klapwijk’s assertion that China has taken some 300 tonnes of gold into reserves in the first half of the current year.

The Bloomberg data, which has been available on Bloomberg terminals since mid October, puts a more precise figure on this, suggesting that in the current year the PBOC will likely add some 620 tonnes into its gold reserves, and possibly even more next given the current lower gold price.  China can do this without reporting the increase to the IMF by the simple mechanism of holding the newly acquired gold in a separate account from its official reserves and only transferring it into the official reserve when it deems it timely, or politically expedient, to do so.  This is exactly what happened in 2009 when China announced an increase in its gold reserve from 600 tonnes to 1,054 tonnes with the gold having been acquired over the prior five years.

This commentary by Lawrence Williams was posted on the mineweb.com Internet site yesterday...and it's worth reading.  It's another offering from Ulrike Marx for which I thank her.

Improved physical demand for silver forecast by Thomson Reuters GFMS

Posted: 14 Nov 2013 02:23 AM PST

Improved physical demand for silver forecast by Thomson Reuters GFMS

At the Annual Silver Industry Dinner organised by the Silver Institute in New York , Andrew Leyland , Manager, Precious Metals Demand at Thomson Reuters GFMS, presented its interim silver market review.

Jewellery demand has been particularly strong amongst emerging countries with demand surging in India as consumers switch away from gold due to draconian government regulations put in place this year in order to curb gold imports. The industrial sector, which currently accounts for 45 per cent of global silver demand, is also expected to grow by one per cent in 2013, thanks to a pickup in industrial activity amid an improved global economic outlook. This year's price correction may also slow the trends in the market toward substitution away from silver toward cheaper alternatives.

GFMS highlighted key differences in ETF holdings between the gold and silver markets, noting that, while outflows from gold ETFs have been firmly in place throughout the year, silver ETF holdings continued to grow, reaching a record-high of 655 Moz as of 31 October.

There's the odd nugget in this CPI Financial report filed over at the kitco.com Internet site yesterday, but it's mostly b.s...and that's being kind.  Read with caution!  Ulrike Marx sent it our way.

Sprott's Thoughts: Vaults are Booming! [in Asia]

Posted: 14 Nov 2013 02:23 AM PST

Sprott's Thoughts: Vaults are Booming! [in Asia]

For the better part of the last century, Switzerland has been a sanctuary for high-net-worth capital. Today, however, the rich are choosing a different destination to stash their wealth – Asia. Gold, silver and collectibles are pouring into Singapore, Hong Kong and Shanghai, jurisdictions that now offer some of the most exclusive gold and silver vault options in the world.

With the recent wealth explosion in Asia, these clients are preferring to keep their collectibles and bullion close at hand. Recently published trade data supports our presumption that a significant amount of physical gold from ETF liquidations was indeed heading East. But where to exactly once it arrived? Several transactions have taken place this month which confirm the new Asian facilities as the final destination for the physical gold that has been transferred out of London and Swiss vaults.

This excellent commentary by David Franklin was posted on the sprottgroup.com Internet site yesterday...and definitely falls into the must read category.

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