Gold World News Flash |
- Outlook 2014: Geopolitical Uncertainty To Move Safe-Haven Gold Market
- Right, For the Right Reasons
- The Incredibly Important Facts About Gold As 2014 Nears
- More Pain for the Yen?
- David Morgan talks to Sprott Money News about market manipulation and more
- Taper Or No Taper - What The FOMC Has Really Said
- German gold price probe extended to Deutsche Bank
- Holding Gold or Silver In Unallocated Storage Or in ETFs and Brokerage Accounts
- Holding Gold or Silver In Unallocated Storage Or in ETFs and Brokerage Accounts
- If You Don’t Trust the Fed, Here’s An Inside View That Confirms Your Worst Suspicions
- The Gold Price Closed Down $32.50 to $1,226
- The Gold Price Closed Down $32.50 to $1,226
- "Defying Gravity" - Counting Down To Japan's D-Day In Two Charts
- John Hathaway: Threats to 'paper gold' are growing and only metal in hand is safe
- Gold Daily and Silver Weekly Charts - Friday the 13th - JPM's Comex Deliveries
- Gold Daily and Silver Weekly Charts - Friday the 13th - JPM's Comex Deliveries
- Does the Fed Favor Any Group in Particular? Mark Spitznagel vs. Paul Krugman
- Shocking Events & Big Picture In Gold As We Head Into 2014
- Former mint director says he saw Fort Knox gold -- but who owns it?
- Gold-Starved Indians Still Soaking-Up Silver
- Gold Prices Plummet as Everyone Gets Short
- We’re Due for a Recession in 2014
- Gold investors urge caution as miners consider return to hedging
- Ivory Coast sells further 9% stake in Ity gold mine
- Gold & silver imports dive 80% in India
- Can’t-miss headlines: Gold drops, distressed Mercator gets Russian suitors & more
- Update: ‘Volcker Rule’ could hamstring big banks’ gold and silver trades
- Choice for Fed deputy implemented devaluation in Israel
- Gold Prices Tumble, US Budget Deal "Adds Pressure" But India's Anti-Import Policy "A Key Factor" in Slump Says Jim Rogers
- Gold Prices Tumble, US Budget Deal "Adds Pressure" But India's Anti-Import Policy "A Key Factor" in Slump Says Jim Rogers
- Gold Prices Tumble, US Budget Deal "Adds Pressure" But India's Anti-Import Policy "A Key Factor" in Slump Says Jim Rogers
- 1200+ Tonnes Extra Supply, 1000 Tonnes Blocked
- Gold Price Drops $20, "I'd Rather Buy Silver," Says Jim Rogers
- Gold Stocks Bear of a Lifetime Takes No Prisoners
- Jim Rogers' First Rule of Investing
- Jim Rogers' First Rule of Investing
- Jim Rogers: "US Heading for Disaster. Be Prepared"
- Jim Rogers: "US Heading for Disaster. Be Prepared"
- Jim Rogers: "US Heading for Disaster. Be Prepared"
- Jim Rogers on Gold, Silver & the Coming US Crisis
- Jim Rogers on Gold, Silver & the Coming US Crisis
- Jim Rogers on Gold, Silver & the Coming US Crisis
- Gold 1200+ Tonnes Extra Supply, 1000 Tonnes Blocked
- Indicators to Turn Your Trust Back to Gold and Silver
- Banks Do Not Like Either Bitcoin or Gold... It Makes Sense
- Falling Back in Love with Gold Stocks
- Has the Long-term Kress Cycle Bottomed Early?
| Outlook 2014: Geopolitical Uncertainty To Move Safe-Haven Gold Market Posted: 12 Dec 2013 09:40 PM PST from KitcoNews: |
| Posted: 12 Dec 2013 09:20 PM PST by Andy Hoffman, MilesFranklin.com:
On most days, I write of "big picture" topics – such as yesterday, when I discussed the farce that was this weekend's "budget deal"; which essentially, was the one of the most blatantly irresponsible Congressional acts of our time – which is saying a lot. |
| The Incredibly Important Facts About Gold As 2014 Nears Posted: 12 Dec 2013 09:01 PM PST  With so much uncertainty surrounding the gold and silver markets as the cyclical bearish phase unwinds, today a man out of Europe who has been extremely accurate with his calls on the gold market sent King World News the the incredibly important facts about the gold market as 2014 nears. KWN was given exclusive distribution rights to the outstanding piece below by Ronald-Peter Stoferle of Incrementum AG out of Lichtenstein.This posting includes an audio/video/photo media file: Download Now |
| Posted: 12 Dec 2013 07:22 PM PST By: Chris Tell
In late 2011 I started shorting the Japanese Yen. I spoke about it here, here and again here. I even tried to employ my skills in evaluating private equity deals to evaluating Japan. I was coming up empty. I've employed a basic position of long the USD/JPY cross, long XAU/JPY cross and then taking small amounts of speculative capital buying long-dated puts on FXY. The results have been pretty average thus far. The USD long is working well, the long gold trade is slightly above water, while the puts on FXY have been miserable. Timing is everything and I'm cognizant of that fact. I do however want to be positioned, because I remain unconvinced of the ability of central bankers to hold the ship together with monetary bailing twine, jawboning and any other measure they dream up. I took the positions mentioned, not because I had carefully calculated the planetary alignments and noted that the Yen was going to get smashed as soon as Jupiter was in Mars. Frankly, like most market participants I didn't know. What I did know was that the fundamentals supported a weaker yen, and importantly the political will to push the Yen lower was in the cards. Shinzo Abe campaigned on that very platform. From a risk/reward standpoint the risks were low while the reward was potentially very high. A speculators wet dream. At the time we felt that establishing a core position in this trade was so important that we published a free report outlining various ways to play what we believe will be a very profitable trade. Feel free to grab a copy here. On the 28th November our good friend and "trader extraordinaire" Brad Thomas alerted our readers in a trade alert that the Yen looked like it was turning. Specifically he said:
Brad is easily the smartest trader I know, but what has made Brad so successful has been his implementation of his views. This can make all the difference. In the trade referenced above, his strategy has been to place multiple option trades across 12 months of expiry. Namely 120,000 options expiring in 12 different time frames over the next year. (note: not long after this ZH put out a trade overview using similar principals) At the time Brad put the alert out, all 12 trades of 10,000 USD/JPY options would have cost approx US $3,400. As of today the USD/JPY cross sits at 102.82 and the respective 12 call options across 12 months net out at US $4,198. Whatever strategy one uses I believe that being positioned for a substantially weaker Yen is an intelligent move. We'll be hearing more from Brad on how he plays this as well as his many other trade ideas long into the future. To receive Brad's alerts (complimentary for a while longer), click here. - - Chris Excerpted from Steven Drobny's, The New House Of Money: "Drobny: You're on the tape saying that dollar/yen is going to 200. Kyle Bass: If I'm right, it will go much further than that. I don't think it will hit 500, but in crises, currencies swing too far." |
| David Morgan talks to Sprott Money News about market manipulation and more Posted: 12 Dec 2013 06:51 PM PST 9:50 ET Thursday, December 12, 2013 Dear Friend of GATA and Gold: Monetary metals expert David Morgan of The Morgan Report, interviewed today by Nathan McDonald of Sprott Money News, explains why he considers the evidence of gold market manipulation to be overwhelming; speculates that new Federal Reserve Chairwoman Janet Yellen will make the outgoing chairman, Ben Bernanke, look stingy; expresses a little skepticism about bitcoin while libertarianly wishing it well; and muses about whether China wants to take over the role of the United States as issuer of the world reserve currency. Audio and a transcript of the interview are posted at the Sprott Money News Internet site here: http://www.sprottmoney.com/news/ask-the-expert-david-morgan-december-201... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Buy metals at GoldMoney and enjoy international storage GoldMoney was established in 2001 by James and Geoff Turk and is safeguarding more than $1.7 billion in metals and currencies. Buy gold, silver, platinum, and palladium from GoldMoney over the Internet and store them in vaults in Canada, Hong Kong, Singapore, Switzerland, and the United Kingdom, taking advantage of GoldMoney's low storage rates, among the most competitive in the industry. GoldMoney also offers delivery of 100-gram and 1-kilogram gold bars and 1-kilogram silver bars. To learn more, please visit: http://www.goldmoney.com/?gmrefcode=gata Join GATA here: Vancouver Resource Investment Conference http://www.cambridgehouse.com/event/vancouver-resource-investment-confer... * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT How to profit with silver -- Future Money Trends is offering a special 16-page silver report with our forecast for 2013 that includes profiles of nine companies and technical analysis of their stock performance. Six of the companies have market capitalizations of less than $800 million and one company has a market cap of only $30 million. The most exciting of these companies will begin production in a few weeks and has a market cap of just $150 million. Half of all proceeds from the sale of this report will be donated to the Gold Anti-Trust Action Committee to support its efforts exposing manipulation and fraud in the gold and silver markets. To learn about this report, please visit: http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp... |
| Taper Or No Taper - What The FOMC Has Really Said Posted: 12 Dec 2013 06:41 PM PST Economic history is pockmarked with policies instigated with the full intention of improving economic performance which have eventually turned out to do real damage. From the Napoleonic Wars to Weimar and up to the present day gold standards and Keynesianism, Deutsche's Jim Reid notes all too often economic institutions allow themselves to be stuck in intellectual cul-de-sacs at their peril. Such a risk appears alive and well today in the halls of the Federal Reserve. The outlook for tapering is mired in a continuing war between an institutional framework which sees QE as an emergency measure that has gone on far longer then was desired and an economy whose self-sustaining momentum is far from secure. The following statements from the FOMC members shows the tight-rope of uncertainty they are treading... What The FOMC members have said about Taper...
The FOMC came very close to tapering at the September 2013 meeting. It seems likely that if (a) Congress hadn't been on the brink of another bout of fiscal-political grandstanding and (b) markets (especially rates) hadn't reacted quite so strongly to the comments Bernanke made in May/June earlier in the year then the Fed would have started tapering at the meeting, irrespective of the failure of the US economy to press on in the middle of 2013. The FOMC will be slightly more hawkish in 2014 - and even more so if Stan Fischer is added... So how biased will the Fed committee in 2014 continue to be against QE? One way to try and take a view on this is to see the relative balance of power of FOMC doves and hawks in 2014, with an eye to their 2013 predecessors
In conclusion, Deutsche believes there is a chance that the Fed's institutional biases lead it to taper earlier then the economic data might suggest is optimal. Whilst Yellen may be able to push against some of these biases, 2014 will still see a tightrope balancing act at the Fed as economics and institution bias battle it out and increasing noise is made for forward guidance to replace QE as the main tool of monetary policy activism. |
| German gold price probe extended to Deutsche Bank Posted: 12 Dec 2013 05:20 PM PST By Alice Ross http://www.ft.com/intl/cms/s/0/b386aa16-6358-11e3-886f-00144feabdc0.html FRANKFURT, Germany -- Germany's financial regulator has demanded documents from Deutsche Bank as part of an investigation into potential manipulation of gold and silver prices. The probe from the German watchdog comes as regulators around the world step up their scrutiny of benchmarks after the recent Libor interbank lending scandal led to hefty fines for banks. BaFin has grilled Deutsche Bank staff during several on-site inspections in the past few months, said people familiar with the matter, in a sign of how seriously the German regulator is scrutinising the precious metals markets. ... Dispatch continues below ... ADVERTISEMENT Buy metals at GoldMoney and enjoy international storage GoldMoney was established in 2001 by James and Geoff Turk and is safeguarding more than $1.7 billion in metals and currencies. Buy gold, silver, platinum, and palladium from GoldMoney over the Internet and store them in vaults in Canada, Hong Kong, Singapore, Switzerland, and the United Kingdom, taking advantage of GoldMoney's low storage rates, among the most competitive in the industry. GoldMoney also offers delivery of 100-gram and 1-kilogram gold bars and 1-kilogram silver bars. To learn more, please visit: http://www.goldmoney.com/?gmrefcode=gata Deutsche Bank is one of five banks that take part in the twice-daily "London gold fixing," and one of three banks that take part in the equivalent process for silver. The UK's Financial Conduct Authority has also been looking at precious metals as part of a broader review of financial benchmarks. With an estimated 175 million ounces of gold, worth $215 billion at today's prices, changing hands daily on the over-the-counter market, London is the global centre of gold trading. However, the FCA has not launched a formal investigation. Some bankers believe BaFin has come under pressure to show it is willing to get tough on suspected market manipulation. It was widely seen to have been slow to respond to the concerns over possible manipulation in the forex market expressed by other regulators around the world earlier this year. Although the gold and silver fixings are, like Libor, set by small groups of banks, they contrast with the process for setting Libor in that they are based on trading activity rather than theoretical quotes. Executives at major gold traders say their contact with the FCA on the subject has so far been largely limited to general questions. But the German regulator's probe into the foreign exchange market has moved beyond informal discussions with banks. BaFin is now asking for information in the form of emails and documents, said a person familiar with the situation. The visit to Deutsche offices signals that BaFin now has greater concerns over the precious metals markets. Officials have asked to observe documents and processes related to precious metals trading as well as to interview bankers, the person said. BaFin confirmed that it had been looking into the possible manipulation of gold and silver prices, as well as foreign exchange benchmark rates, since the summer, but declined to comment on specific institutions. The regulator first confirmed it was conducting a probe into the gold and silver market in November. Deutsche Bank declined to comment. The London gold fixing has been a benchmark for the market since the end of the first world war. Until 2004, the fixings were conducted in person at the London offices of Rothschild and each trader had a Union flag on his desk which he lowered to indicate that he had concluded his business. The other banks that take part in the gold fixing are Barclays, Bank of Nova Scotia, HSBC, and Societe Generale. The other banks involved in silver fixing are Bank of Nova Scotia and HSBC. As the only German member of either fixing, Deutsche is the only bank to come under BaFin's remit. Join GATA here: Vancouver Resource Investment Conference http://www.cambridgehouse.com/event/vancouver-resource-investment-confer... * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT How to profit with silver -- Future Money Trends is offering a special 16-page silver report with our forecast for 2013 that includes profiles of nine companies and technical analysis of their stock performance. Six of the companies have market capitalizations of less than $800 million and one company has a market cap of only $30 million. The most exciting of these companies will begin production in a few weeks and has a market cap of just $150 million. Half of all proceeds from the sale of this report will be donated to the Gold Anti-Trust Action Committee to support its efforts exposing manipulation and fraud in the gold and silver markets. To learn about this report, please visit: http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp... |
| Holding Gold or Silver In Unallocated Storage Or in ETFs and Brokerage Accounts Posted: 12 Dec 2013 04:46 PM PST |
| Holding Gold or Silver In Unallocated Storage Or in ETFs and Brokerage Accounts Posted: 12 Dec 2013 04:46 PM PST |
| If You Don’t Trust the Fed, Here’s An Inside View That Confirms Your Worst Suspicions Posted: 12 Dec 2013 04:43 PM PST Submitted by F.F.Wiley of Cyniconomics blog,
- Former FOMC Governor Kevin Warsh, writing in the Wall Street Journal on November 13.
- Dallas Fed President Richard Fisher, speaking in Chicago on December 9.
- Former St. Louis Fed President William Poole, speaking in Washington D.C. on March 7. Does anyone else see a common theme? Last month, we offered a plain language translation of the Warsh op-ed, because we thought it was too carefully worded and left readers wondering what he really wanted to say. Translation wasn’t necessary for Fisher’s speech, which contained a clear no-confidence vote in the Fed’s QE program. Poole’s comment was from a seminar question-and-answer session earlier this year, but it reached our inbox only last week in a transcript published in the latest Financial Analysts Journal. The Q&A was attached to an article that I’ll discuss here, because it makes claims we haven’t heard from others with FOMC experience. Here’s an example:
Poole is more or less saying that we have no idea what’s truly behind the Fed’s decisions. But he doesn’t stop there. He’s willing to make a prediction that you wouldn’t expect from an establishment economist:
So there you have it: a 10-year FOMC veteran wants us to know that central banking isn’t all about the latest hot research on the wonders of unconventional measures. On the contrary, monetary policy is no different than other types of policymaking; it’s guided by hidden political forces. If you don’t mind our saying so, we feel a bit vindicated. Our very first Fed post ten months ago included the following:
We haven’t returned to this theme often, partly because it can’t be tested like we can test the Fed’s economic beliefs. Regular readers know that we do quite a lot of empirical work. We try our best to follow David Hume’s maxim that: “A wise man, therefore, proportions his belief to the evidence.” As we see it, the Fed’s economic beliefs are proportioned more closely to political factors than real-life evidence. You might replace Hume with Upton Sinclair, who said “it is difficult to get a man to understand something when his salary depends on him not understanding it.” In other words, politics and personal incentives are a huge part of the picture, and not just in central banking but in the economics profession more generally. The theories underpinning current policies, which have built up over the last 80 years or so, can’t be properly understood without thinking through the motivations behind key developments. Some of the motivational factors are obvious, while others are more subtle, but I won’t clutter this post with our musings on the hidden drivers in economics. Detlev Schlichter offered a nice summary in his book, Paper Money Collapse:
Schlichter is one of many authors and bloggers willing to discuss the awkward realities lurking behind economic theory and central banking. But these ideas are considered taboo by most mainstream media outlets. They’re not discussed in establishment venues or spoken by establishment figures. Or so I thought. Poole’s refreshingly honest take on the Fed’s inner workings – from someone who truly knows what goes on behind the curtains – is more than welcome. |
| The Gold Price Closed Down $32.50 to $1,226 Posted: 12 Dec 2013 04:36 PM PST Gold Price Close Today : 1262.40 Change : -32.50 or -2.51% Silver Price Close Today : 19.402 Change : -0.896 or -4.41% Gold Silver Ratio Today : 65.065 Change : 1.271 or 1.99% Silver Gold Ratio Today : 0.01537 Change : -0.000306 or -1.95% Platinum Price Close Today : 1363.50 Change : -20.80 or -1.50% Palladium Price Close Today : 719.80 Change : -18.30 or -2.48% S&P 500 : 1,775.50 Change : -6.72 or -0.38% Dow In GOLD$ : $257.73 Change : $ 4.81 or 1.90% Dow in GOLD oz : 12.468 Change : 0.233 or 1.90% Dow in SILVER oz : 811.23 Change : 30.68 or 3.93% Dow Industrial : 15,739.43 Change : -104.10 or -0.66% US Dollar Index : 80.196 Change : 0.314 or 0.39% I told y'all I was still braced for bad action in silver and GOLD PRICES, and today it hit. Things were rocking along fine until about 4:30 a.m. EST, late night even in London, when "somebody" slammed gold at $1,254. Whatever they hit it with, it gapped down to $1,245, stayed around there until New York opened, then from 8:30 to 10 declined and about 11:1.m. gapped down again to $1,225. The GOLD PRICE closed Comex down $32.50 (2.6%) at $1,226.00 while the SILVER PRICE ended down 89.6 cents (4.4%) at 1940.2c. Whew. What can you say about that? A lot. First, the silver price stopped about where it made its low on 9 December, one day after what appeared to be a bottom. Next, it remains in an uptrend. It's true. But the Rate of Change turned negative with today's fall. The gold price was also driven to its 9 December low, but remains above the support line. I don't know any more than y'all do what they will do tomorrow. After today's drop, odds say they will drop further, but we'll wait and let the market tell us. Be calm. A year from now y'all will look like investing geniuses after silver and gold prices have rallied. A reader describing himself as a "natural born fool from RI" asked me what in the world the US dollar index is all about and what in the world it means and why should he care. Here's why: The US Dollar Index is an weighted index of the dollar's value against currencies of its most significant trading partners. The basket of currencies contains the Euro, Japanese yen, British Pound, Canadian Dollar, Swiss Franc, and Swedish Kronor (why that, I don't know). Here are the weights: Euro, 57.6% Yen, 13.6% Pound sterling, 11.9% Canadian dollar, 9.1% Swedish Krona, 4.2% Swiss franc, 3.6%. The US dollar index takes into account not only changes in the dollar's value against one currency, but several, and so ought to give a fuller picture of the dollar's value. Comparing the US dollar to the Zimbabwean dollar would give one the idea the dollar was very healthy, but a chart of the US$ in euros would give quite another idea. The US Dollar Index offers a composite view of the dollar's value against its major trading partners. It has traded as high as $164.22 in February 1985 and as low as 70.70 on 16 March 2008. The US Dollar index double peaked in 2000 and 2001 at 121, and has been in a bear market (declining) ever since. Range since 2003 -2013 has been 92 to 70.70. Range late 2009 to now has been 72.70 to 88.70. Range last two years has been 78 - 85. A drop below the support line now at about 80 would send it falling much further. Since most of y'all live and trade with dollars every day, its change in value is fraught with significant effect upon your life. Also, the main competitors with the US dollar are silver and gold. Distrust in the dollar sends money fleeing into silver and gold, generally but not every single day. Thus watching the US dollar index clues us about gold and silver's future. TODAY'S MARKETS Woe is everybody. Lots of money went to money heaven today. Stocks, for example, lost big again. Dow dropped 104.10 (0.66%) to 15,739.43. S&P500 followed right along, losing 6.72 (0.38%) to 1,775.5. Lo, both draweth nigh their 50 DMAs (15,640 and (1,760) as the decline begun on November's last day continues. Dow has already fallen back within its old trading channel, and the S&P isn't far from it, about where its 50 DMA stands (1,760). Sharp drops in silver and gold today sent the Dow in Gold and Dow in Silver back up above their 20 DMAs. This disturbeth not the larger downtrend. DiG gained 1.56% to end at 12.85 oz (G$265.63 gold dollars). DiS rose 3.5% to 808.81 oz. Be calm -- they've turned down and in markets, unlike gravity, nothing rises or falls in a straight line. Well, the US Dollar Index managed to rise today, up 31.4 basis points (0.4%) to 80.196, drawing away from that dangerous 80 support lie. This still ain't stellar, with the dollar index below its 50 DMA (80.38) and 20 DMA (80.61). Very hard to parse where the dollar is headed, but it's not really flashing strength. Indecision, maybe, but not strength. Euro lost 0.25% to $1.3752 on the US dollar's "strength." It had almost reached the $1.3800 line. Yen fell again today, down 0.92% to 96.72 cents/Y100, and to a new low for the move. Rotten outlook if it can't turn around from 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 Down $32.50 to $1,226 Posted: 12 Dec 2013 04:36 PM PST Gold Price Close Today : 1262.40 Change : -32.50 or -2.51% Silver Price Close Today : 19.402 Change : -0.896 or -4.41% Gold Silver Ratio Today : 65.065 Change : 1.271 or 1.99% Silver Gold Ratio Today : 0.01537 Change : -0.000306 or -1.95% Platinum Price Close Today : 1363.50 Change : -20.80 or -1.50% Palladium Price Close Today : 719.80 Change : -18.30 or -2.48% S&P 500 : 1,775.50 Change : -6.72 or -0.38% Dow In GOLD$ : $257.73 Change : $ 4.81 or 1.90% Dow in GOLD oz : 12.468 Change : 0.233 or 1.90% Dow in SILVER oz : 811.23 Change : 30.68 or 3.93% Dow Industrial : 15,739.43 Change : -104.10 or -0.66% US Dollar Index : 80.196 Change : 0.314 or 0.39% I told y'all I was still braced for bad action in silver and GOLD PRICES, and today it hit. Things were rocking along fine until about 4:30 a.m. EST, late night even in London, when "somebody" slammed gold at $1,254. Whatever they hit it with, it gapped down to $1,245, stayed around there until New York opened, then from 8:30 to 10 declined and about 11:1.m. gapped down again to $1,225. The GOLD PRICE closed Comex down $32.50 (2.6%) at $1,226.00 while the SILVER PRICE ended down 89.6 cents (4.4%) at 1940.2c. Whew. What can you say about that? A lot. First, the silver price stopped about where it made its low on 9 December, one day after what appeared to be a bottom. Next, it remains in an uptrend. It's true. But the Rate of Change turned negative with today's fall. The gold price was also driven to its 9 December low, but remains above the support line. I don't know any more than y'all do what they will do tomorrow. After today's drop, odds say they will drop further, but we'll wait and let the market tell us. Be calm. A year from now y'all will look like investing geniuses after silver and gold prices have rallied. A reader describing himself as a "natural born fool from RI" asked me what in the world the US dollar index is all about and what in the world it means and why should he care. Here's why: The US Dollar Index is an weighted index of the dollar's value against currencies of its most significant trading partners. The basket of currencies contains the Euro, Japanese yen, British Pound, Canadian Dollar, Swiss Franc, and Swedish Kronor (why that, I don't know). Here are the weights: Euro, 57.6% Yen, 13.6% Pound sterling, 11.9% Canadian dollar, 9.1% Swedish Krona, 4.2% Swiss franc, 3.6%. The US dollar index takes into account not only changes in the dollar's value against one currency, but several, and so ought to give a fuller picture of the dollar's value. Comparing the US dollar to the Zimbabwean dollar would give one the idea the dollar was very healthy, but a chart of the US$ in euros would give quite another idea. The US Dollar Index offers a composite view of the dollar's value against its major trading partners. It has traded as high as $164.22 in February 1985 and as low as 70.70 on 16 March 2008. The US Dollar index double peaked in 2000 and 2001 at 121, and has been in a bear market (declining) ever since. Range since 2003 -2013 has been 92 to 70.70. Range late 2009 to now has been 72.70 to 88.70. Range last two years has been 78 - 85. A drop below the support line now at about 80 would send it falling much further. Since most of y'all live and trade with dollars every day, its change in value is fraught with significant effect upon your life. Also, the main competitors with the US dollar are silver and gold. Distrust in the dollar sends money fleeing into silver and gold, generally but not every single day. Thus watching the US dollar index clues us about gold and silver's future. TODAY'S MARKETS Woe is everybody. Lots of money went to money heaven today. Stocks, for example, lost big again. Dow dropped 104.10 (0.66%) to 15,739.43. S&P500 followed right along, losing 6.72 (0.38%) to 1,775.5. Lo, both draweth nigh their 50 DMAs (15,640 and (1,760) as the decline begun on November's last day continues. Dow has already fallen back within its old trading channel, and the S&P isn't far from it, about where its 50 DMA stands (1,760). Sharp drops in silver and gold today sent the Dow in Gold and Dow in Silver back up above their 20 DMAs. This disturbeth not the larger downtrend. DiG gained 1.56% to end at 12.85 oz (G$265.63 gold dollars). DiS rose 3.5% to 808.81 oz. Be calm -- they've turned down and in markets, unlike gravity, nothing rises or falls in a straight line. Well, the US Dollar Index managed to rise today, up 31.4 basis points (0.4%) to 80.196, drawing away from that dangerous 80 support lie. This still ain't stellar, with the dollar index below its 50 DMA (80.38) and 20 DMA (80.61). Very hard to parse where the dollar is headed, but it's not really flashing strength. Indecision, maybe, but not strength. Euro lost 0.25% to $1.3752 on the US dollar's "strength." It had almost reached the $1.3800 line. Yen fell again today, down 0.92% to 96.72 cents/Y100, and to a new low for the move. Rotten outlook if it can't turn around from 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. |
| "Defying Gravity" - Counting Down To Japan's D-Day In Two Charts Posted: 12 Dec 2013 04:05 PM PST While the distraction of Japanese currency collapse, the resultant nominal offsetting surge in the value of the Japanese stock market, the doubling of the Japanese monetary base and the BOJ's monetization of 70% of Japan's gross issuance have all been a welcome diversion in a society still struggling with the catastrophic aftermath of the Fukushima explosion on one hand, imploding demographics on the other, and an unsustainable debt overhang on the third mutant hand, the reality is that Japan, despite the best intentions of Keynesian alchemists everywhere, is doomed. One can see as much in the following two charts from a seminal 2012 research piece by Takeo Hoshi and Tatakoshi Ito titled "Defying Gravity: How Long Will Japanese Government Bond Prices Remain High?" and which begins with the following pessimistic sentence: "Recent studies have shown that the Japanese debt situation is not sustainable." Its conclusion is just as pessimistic, and while we urge readers to read the full paper at their liesure, here are just two charts which largely cover the severity of the situation. Presenting the countdown to Japan's D-Day. Exhibit A. The technical details of what is shown below are present in the appendix but the bottom line is this: assuming three different interest rates on Japan's debt, and a max debt ceiling which happens to be the private saving ceiling, as well as assuming a 1.05% increase in private sector labor productivity (average of the past two decades), Japan runs out of time some time between 2019 and 2024, beyond which it can no longer self-fund itself, and the Japan central bank will have no choice but to monetize debt indefinitely.
and Exhibit B. Figure 12 shows the increase in the interest rate that would make the interest payment exceed the 35% of the total revenue for each year under each of the specific interest scenarios noted in the chart above (for more details see below). The 35% number is arbitrary, but it is consistent with the range of the numbers that the authors observed during the recent cases of sovereign defaults. In short: once interest rates start rising, Japan has between 4 and 6 years before it hits a default threshold.
The paradox, of course, is that should Japan's economy indeed accelerate, and inflation rise, rates will rise alongside as we saw in mid 2013, when the JGB market would be halted almost daily on volatility circuit breakers as financial institutions rushed to dump their bond holdings. In other words, the reason why Japan is desperate to inject epic amounts of debt in order to inflate away the debt - without any real plan B - is because, all else equal, it has about 8 years before it's all over. Here is how the authors summarize the dead-end situation.
Finally, this is how the BOJ's epic monetization was seen by the paper's authors back in March 2012.
For now monetization is indeed less disruptive. The question is for how much longer, since both Japan and the US are already monetizing 70% of their respective gross debt issuance. And once the last bastion of Keynesian and Monetarist stability fails, well then...
Ah... rational. * * * Appendix: The private saving ceiling is the absolute maximum of the domestic demand for the government debt, but the demand for JGBs will start falling well before the saving ceiling is ever reached. One potential trigger for such a change is that the financial institutions find alternative and more lucrative ways to invest the funds. In general, when the economic environment changes to increase the returns from alternatives to the JGBs, the interest rate on JGBs may start to increase. If this suddenly happens, this can trigger a crisis. Increases in the rate of returns may be caused by favorable changes in the economic growth prospect. The end of deflation and the zero interest rate policy would also lead to higher interest rates. ... In Figure 6 , the authors calculate Japan's debt'GDP over the next three decades using the following assumptions on the interest rate:
R1 is motivated by the fact that the average yield on 10 year JGBs over the last several years has been about the same as the GDP growth rate during the same time interval, but constrains the interest rate to be much lower than the current rate even when the GDP growth declines further. R2 and R3 assume that the interest rate rises as the government accumulates more debt. Many empirical studies have demonstrated such relation. R2 (2.0 basis points increase) uses the finding of Tokuoka (2010) for Japan. R3 (3.5 basis points increase) assumes the coefficient estimate used by Gagnon (2010). It is the median estimate from studies of various advanced economies ... A more reasonable scenario is to assume the growth rate of GDP per-working-age person (or an increase in labor productivity) to be similar to that of the 1990s and 2000s. We consider two alternative growth rates per-working-age population. The low growth scenario is that the increase in labor productivity at 1.05% (average of 1994-2010) and the high growth scenario is at 2.09% (average of 2001-2007, the "Koizumi years").12 Table 6 shows the growth decomposition on the assumption of the 1.05% growth rate of GDP per-working-age person.... The upper bound for the debt accumulation is reached by 2024 at the latest. |
| John Hathaway: Threats to 'paper gold' are growing and only metal in hand is safe Posted: 12 Dec 2013 02:53 PM PST 5:45p ET Thursday, December 12, 2013 Dear Friend of GATA and Gold: The explosive growth of "paper gold" has depressed the metal's price even as prices of other scarce stores of wealth are soaring, the Tocqueville Gold Fund's John Hathaway writes today in a brilliant study of the gold market that takes note of many recent developments brought to your attention by GATA. Hathaway cites the intensifying threats to the "paper gold" system, predicts that money printing will become permanent policy for central banks, and concludes that the only risk-free asset remaining is metal in possession. Hathaway's commentary is posted at King World News here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/12/12_S... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT You Don't Have to Wait for Your Monetary Metal: Many investors lately report having to wait weeks and even months for delivery of their precious metal orders. All Pro Gold works with the largest wholesalers that have inventory "live" -- ready to go. All Pro Gold can ship these "live" gold and silver products as soon as payment funds clear. All Pro Gold can provide immediate delivery of 100-ounce Johnson Matthey silver bars, bags of 90 percent junk silver coins, and 1-ounce silver Austrian Philharmonics. All Pro Gold can deliver silver Canadian maple leafs with a two-day delay and 1-ounce U.S. silver eagles with a 15-day delay. Traditional 1-ounce gold bullion coins and mint-state generic gold double eagles are also available for immediate delivery. All Pro Gold has competitive pricing, and its proprietors, longtime GATA supporters Fred Goldstein and Tim Murphy, are glad to answer any questions or concerns of buyers about the acquisition of precious metals and numismatic coins. Learn more at www.allprogold.com or email info@allprogold.com or telephone All Pro Gold toll-free at 1-855-377-4653. Join GATA here: Vancouver Resource Investment Conference http://www.cambridgehouse.com/event/vancouver-resource-investment-confer... * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: |
| Gold Daily and Silver Weekly Charts - Friday the 13th - JPM's Comex Deliveries Posted: 12 Dec 2013 02:26 PM PST |
| Gold Daily and Silver Weekly Charts - Friday the 13th - JPM's Comex Deliveries Posted: 12 Dec 2013 02:26 PM PST |
| Does the Fed Favor Any Group in Particular? Mark Spitznagel vs. Paul Krugman Posted: 12 Dec 2013 02:00 PM PST Kicking off this Economic Farce Royale… we have Mark Spitznagel explaining why the Fed is the root of all evil… or at least the source of the so-call "wealth gap". We've sprinkled our own comments throughout to keep it lively and (God help us) too serious. OK. Round one, *ding, ding*…
The source is not runaway entrepreneurial capitalism, which rewards those who best serve the consumer in product and price. (Would we really want it any other way?) There is another force that has turned a natural divide into a chasm… dun, dun, dun… the Federal Reserve. The relentless expansion of credit by the Fed creates artificial disparities based on political privilege and economic power. [Go figure...] David Hume, the 18th-century Scottish philosopher, pointed out that when money is inserted into the economy (from a government printing press or, as in Hume’s time, the importation of gold and silver), it is not distributed evenly but “confined to the coffers of a few persons, who immediately seek to employ it to advantage.” [Well, yeah...] In the 20th century, the economists of the Austrian school built upon this fact as their central monetary tenet. Ludwig von Mises and his students showed that an increase in money supply is beneficial to those who get it first and is detrimental to those who get it last. Monetary inflation is a process, not a static effect. To think of it only in terms of aggregate price levels (I'm looking at you Ben Bernanke) is to ignore this pernicious process and the imbalance and economic dislocation that it creates. As Mises protégé Murray Rothbard explained, monetary inflation is akin to counterfeiting, which necessitates that some benefit and others don’t. After all, if everyone counterfeited in proportion to their wealth, there would be no real economic benefit to anyone. Similarly, the expansion of credit is uneven in the economy, which results in wealth redistribution. To borrow a visual from another Mises student, Friedrich von Hayek, the Fed’s money creation does not flow evenly like water into a tank, but rather oozes like honey into a saucer, dolloping one area first and only then very slowly dribbling to the rest. The Fed doesn’t expand the money supply by uniformly dropping cash from helicopters over the hapless masses. Rather, it directs capital transfers to the largest banks (whether by overpaying them for their financial assets or by lending to them on the cheap), minimizes their borrowing costs, and lowers their reserve requirements. All of these actions result in immediate handouts to the financial elite first, with the hope that they will subsequently unleash this fresh capital onto the unsuspecting markets, raising demand and prices wherever they do. The Fed, having gone on an unprecedented credit expansion spree, has benefited the recipients who were first in line at the trough: banks (imagine borrowing for free and then buying up assets that you know the Fed is aggressively buying with you) and those favored entities and individuals deemed most creditworthy. Flush with capital, these recipients have proceeded to bid up the prices of assets and resources, while everyone else has watched their purchasing power decline. At some point, of course, the honey flow stops—but not before much malinvestment. Such malinvestment is precisely what we saw in the historic 1990s equity and subsequent real-estate bubbles (and what we’re likely seeing again today in overheated credit and equity markets), culminating in painful liquidation. The Fed is transferring immense wealth from the middle class to the most affluent, from the least privileged to the most privileged. This coercive redistribution has been a far more egregious source of disparity than the president’s presumption of tax unfairness (if there is anything unfair about approximately half of a population paying zero income taxes) or deregulation. Pitting economic classes against each other is a divisive tactic that benefits no one. Yet if there is any upside, it is perhaps a closer examination of the true causes of the problem. Before we start down the path of arguing about the merits of redistributing wealth to benefit the many, why not first stop redistributing it to the most privileged? Ooh… Them fightin' words. OK, we turn to *ahem* America's leading economist, nobel laureate and pointy head, Paul Krugman. He'll now take himself too seriously and give us his academic rebuttal. We took a few editorial liberties so you wouldn't fall asleep… Round two, *ding, ding*…
Indeed, his screed actually claims that the whole 1 versus 99 thing should really be about reining in or maybe abolishing the Fed. (Hah… Could you imagine that!) Unfortunately, and I'm sorry for this backhanded compliment, some pretty smart people have bought into at least some version of this dumb story. What's wrong with the idea that running the printing presses is a giveaway to plutocrats? Let me count the ways! First, the situation is utterly the reverse of what Spitznagel claimed. Quantitative easing isn't being imposed on an unwitting populace by financiers and rentiers; it's being undertaken, to the extent that it is, over howls of protest from the financial industry. I mean, c'mon! Where are the editorials demanding that the Fed raise its inflation target, right?! [Crickets…] Uhh… Beyond that, let's talk about the economics. The deliberately misleading… er I mean, naive, version of Fed policy Spitznagel made is that Ben Bernanke is "giving money" to the banks. What it actually does, of course, is buy stuff from the banks, usually short-term government debt but nowadays sometimes other stuff with money that didn't exist before. But, seriously, it's not a gift. To claim that it's a gift you have to claim that the prices the Fed is paying are artificially high, or equivalently that interest rates are being pushed artificially low. And you do in fact see assertions to that effect all the time. But if you think about it for even a minute, that claim is truly bizarre. I mean, what is the un-artificial, or if you prefer, "natural" rate of interest? As it turns out, there is actually a standard definition of the natural rate of interest and it's basically defined on a PPE basis (that's for proof of the pudding is in the eating). Roughly, the natural rate of interest is something, kind of like the rate that would lead to stable inflation at more or less full employment. [Uh-huh...] And we have low inflation with high unemployment, strongly suggesting that the natural rate of interest is below current levels, and that the key problem is the zero lower bound which keeps us from getting there. Under these circumstances, expansionary Fed policy isn't some kind of giveway to the banks, it's just a giveaway to the banks that the economy needs. Furthermore, Fed efforts to do this probably tend on average to hurt, not help, bankers. Yes, I just wrote that with a straight face. Banks are largely in the business of borrowing short and lending long; anything that compresses the spread between short rates and long rates is likely to be bad for their profits. And the things the Fed is trying to do are in fact largely about compressing that spread, either by persuading investors that it will keep short rates at zero for a longer time or by going out and buying long-term assets. These are actions you would expect to make bankers angry, not happy — and that's what has actually happened. How, exactly, does expansionary monetary policy hurt the 99 percent? Think of all the people living on fixed incomes, we're told. But who are these people? I know the picture: retirees living on the interest on their bank account and their fixed pension check — and there are no doubt some people fitting that description. But there aren't many of them, which makes it ok. No, the real victims of expansionary monetary policies are the very people who the current mythology says are pushing these policies. And that, I guess, explains why we're hearing the opposite. The typical retired American these days relies largely on Social Security — which is indexed against inflation. He or she may get some interest income from bank deposits, but not much: ordinary Americans have fewer financial assets than the elite can easily imagine. And as for pensions: yes, some people have defined-benefit pension plans that aren't indexed for inflation. But that's a dwindling minority — which again means it's perfectly ok — and I assume the effect of, say, 1 or 2 percent higher inflation isn't going to be enormous even for this minority. What's the takeaway? That unless you're going to go stumping for policy on capitol hill (in which case, there's no hope for you) you should focus on actionable steps you can take to increase your wealth… instead of engaging in groupthink. As for the policy debate…well, it's always good for a laugh. Regards, The Daily Reckoning Ed. Note: Whether you’re on a fixed income or not, there are ways you can safeguard and even grow your wealth, regardless of where you stand on the issue debated above. Today’s Daily Reckoning email edition gave readers a chance to get in on a one-time live event that will help them do just that. Didn’t see that offer? Not to worry… The Daily Reckoning will be back tomorrow with another opportunity for you to take advantage of. Be sure you don’t miss that one too. Sign up for the FREE Daily Reckoning email edition, right here. |
| Shocking Events & Big Picture In Gold As We Head Into 2014 Posted: 12 Dec 2013 01:10 PM PST  With continuing volatility in the gold and silver markets, today one of the great veterans of the gold world sent King World News an extraordinary piece covering the shocking events we are seeing take place in the war on gold, as well as a stunning look at the big picture for this key market. KWN was given exclusive distribution rights to the outstanding piece below by John Hathaway of Tocqueville Asset Management.This posting includes an audio/video/photo media file: Download Now |
| Former mint director says he saw Fort Knox gold -- but who owns it? Posted: 12 Dec 2013 12:32 PM PST 3:35p ET Thursday, December 12, 2013 Dear Friend of GATA and Gold: There's really gold in Fort Knox even if most of it seems to be in the form of bars made from relatively impure coin melt, former U.S. Mint Director Edmund C. Moy told the Whitman coin exhibition in Baltimore on November 9, reporting that he had been admitted to Fort Knox during his tenure as mint director, which ran from 2006 to 2011. Moy's comments about inspecting gold at Fort Knox were videotaped and posted last month at Coin Week's Internet site here: http://www.coinweek.com/education/really-gold-fort-knox-video-527/ Moy added that he couldn't say just how much gold was kept at the depository, nor, infinitely more important to GATA, did he address whether any of that gold has been swapped, leased, or otherwise encumbered -- a question validated by the Federal Reserve's admission to GATA in September 2009 that it has secret gold swap arrangements with foreign banks: According to a secret March 1999 memorandum by the staff of the International Monetary Fund, Western central banks conceal their gold swaps and leases to facilitate their secret intervention in the gold and currency markets: http://www.gata.org/node/12016 So how many people have reason to think they own the gold held at Fort Knox? Exactly what are the Fed's gold swap arrangements and their purposes? The questions remain compelling and unanswered. CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Buy metals at GoldMoney and enjoy international storage GoldMoney was established in 2001 by James and Geoff Turk and is safeguarding more than $1.7 billion in metals and currencies. Buy gold, silver, platinum, and palladium from GoldMoney over the Internet and store them in vaults in Canada, Hong Kong, Singapore, Switzerland, and the United Kingdom, taking advantage of GoldMoney's low storage rates, among the most competitive in the industry. GoldMoney also offers delivery of 100-gram and 1-kilogram gold bars and 1-kilogram silver bars. To learn more, please visit: http://www.goldmoney.com/?gmrefcode=gata Join GATA here: Vancouver Resource Investment Conference http://www.cambridgehouse.com/event/vancouver-resource-investment-confer... * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT How to profit with silver -- Future Money Trends is offering a special 16-page silver report with our forecast for 2013 that includes profiles of nine companies and technical analysis of their stock performance. Six of the companies have market capitalizations of less than $800 million and one company has a market cap of only $30 million. The most exciting of these companies will begin production in a few weeks and has a market cap of just $150 million. Half of all proceeds from the sale of this report will be donated to the Gold Anti-Trust Action Committee to support its efforts exposing manipulation and fraud in the gold and silver markets. To learn about this report, please visit: http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp... |
| Gold-Starved Indians Still Soaking-Up Silver Posted: 12 Dec 2013 10:55 AM PST Informed precious metals investors are well aware of the tremendous "squeeze" placed upon gold demand in India, via the draconian suppression of imports. Regular readers of my work understand that this gold-squeeze was, in fact, instigated by the One Bank – through placing enormous pressure on India's government. This economic blackmail took the form of attacking India's currency, the rupee, in global currency markets, and driving its value to record-lows, until the government of India capitulated. With the global rigging of currency markets (by these same Banksters) now being fully-exposed; this is nothing more than "business as usual" for the One Bank. But as readers are frequently reminded, actions have consequences. When the supply of gold to the world's largest precious metals market (and most-astute precious metals investors) was severely restricted; Indians switched to silver – and in a big way. Even by June of this year, the Indian stampede into silver was already apparent. As noted in a previous commentary; it was at that time that the One Bank was maximizing its efforts at Indian gold-suppression (resulting in a total ban on imports) because monthly Indian gold imports had exploded to an annualized rate of around 2,000 tonnes/year. In the silver market meanwhile, by the end of May; India had already imported over 2,400 tonnes of silver to meet surging demand, versus 1,900 tonnes in all of 2012. By the end of October, India's total silver imports amounted to over 4,600 tonnes. Barring a complete collapse; 2013 silver imports in India will hit an all-time high – eclipsing the previous high-water mark of 5,048 tonnes, set back in 2008. Astute silver investors will recall that in 2008 the price of silver had also been "crashed" roughly 60% below previous highs. However, back then India's silver imports dropped off abruptly after that. Total silver imports in 2009 and 2010 combined amounted to significantly less than the 5,000+ tonnes imported in 2008. But note that in 2009 and 2010 the price of silver was rising dramatically, roughly tripling in price during those two years, and at that time there were no restrictions of any kind on India's gold market. Actions have consequences. Having driven Indian precious metals investors from gold into silver; how can the One Bank cool-off the red-hot Indian silver market (again)? It could allow the current price of silver to triple, and remove all restrictions on Indian gold imports. One thing it cannot do is play the same currency-blackmail game which it used to force India's government to halt all gold imports. To understand the reasoning here requires briefly reviewing how/why the One Bank was successful with its currency-blackmail in attacking the gold market. The phony rationale behind the One Bank's relentless assault on the rupee was that when Indians were swapping their paper currency for gold currency (in massive quantities) that this was creating a "currency deficit" in India. Obviously it's no more possible to have a "currency deficit" when one swaps one currency for another than it is to have a "fruit deficit" if one swaps apples for oranges. Understand that the same bankers (minions of the One Bank) who lied to the world and claimed that India's gold imports were creating a "current account deficit" are the same bankers whose own monetary rules have always treated gold as money. India's (supposed) current-account deficit is a lie; the attacks on the rupee were (are) a criminal fraud – yet another one of the One Bank's financial mega-crimes. |
| Gold Prices Plummet as Everyone Gets Short Posted: 12 Dec 2013 10:37 AM PST Gold Prices erase Tuesday's big gain, in a downward move that mirrored last week's big tumble. Kitco.com's Jim Wyckoff tells TheStreet's Joe Deaux that things will change on next week's Fed... [[ This is a content summary only. Visit http://www.GoldSilverNewsBlog.com or http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  |
| We’re Due for a Recession in 2014 Posted: 12 Dec 2013 10:03 AM PST The level of uncertainty among investors about the direction of U.S. fiscal and monetary policy is startling. At a recent gathering of top investors in New York, few displayed much conviction about the future path of the Federal Reserve's monetary stance after its Sept. 18 decision not to wind down a slew of stimulus measures in the face of a weaker-than-expected U.S. economy. On the fiscal policy front, incessant congressional wrangling over federal spending and borrowing baffled financiers from around the world. Fed Chairman Ben Bernanke has made no secret of his concerns about the negative effects of fiscal policy uncertainty. During his Sept. 18 press conference, he cited the economic drag tied to what has become a government shutdown-cum-possible debt crisis as a reason for the central bank's move. More recently, in an Oct. 2 speech, he acknowledged, "Community bankers today confront a frustratingly slow recovery, stiff competition from larger banks and other financial institutions, and the responsibility of complying with new and existing regulations." Households and firms face more policy uncertainty today than at any time since the mid-2011 debt-ceiling fiasco that sent the S&P 500 swooning by 20 percent over a period of three weeks. Then as now, Congress dithered for weeks while threatening to shut down the government and/or default on Treasury debt. Lawmakers managed, even while eventually agreeing to a debt-ceiling increase, to engineer a ratings-agency downgrade of U.S. debt. It took the stock market almost 8 months to recover from that debacle. Now, just over 2 years later, many households and businesses are gamely trying to look through the growing cloud of uncertainty that is enveloping Congress's increasingly doubtful efforts to pass a "continuing resolution" to keep the government operating in the new fiscal year, and to raise the debt ceiling, enabling the government to finance its past spending. But even if Congress manages to pass temporary measures that allow continued spending and borrowing, the uncertainty won't end. The measures under discussion over the next several weeks, if they are passed, will only postpone the wrangling until November or December. The jump in uncertainty tied to the Fed's Sept. 18 move could therefore not have come at a worse time. Bernanke's hints in May about the possibility of a tightening had already inflicted a damaging full percentage-point rise in interest rates, lowering growth. Elevated uncertainty about monetary policy will remain a drag on the economy. Now add to this the uncertainty over the debt ceiling, and you have a recipe for recession in 2014. Based on comparisons to the 2007-11 period, the combination of monetary and fiscal uncertainty could reduce investment and employment by enough to shave a full percentage point off growth this year — putting the economy at stall speed by January. The spending cuts enacted this year, while reducing the deficit from about $1 trillion to $600 billion, have already shaved about 2 percentage points off GDP – and the current uncertainty isn't helping. It's nearly impossible to imagine Congress turning on a dime and promoting new stimulus spending. Nor does the Fed have any arrows left in its quiver: Having pushed its "quantitative easing" (QE) experiment nearly to the limit, the Fed could offer little in the way of new stimulus beyond further delaying tapering, as it did last month. So what can be done? Congress needs to adopt quickly a budget for 2014 and raise the debt ceiling high enough to preclude further disruptions for at least a year and a half. Meanwhile, the Fed needs to stop trying to fine-tune its tapering message, end board members' public second-guessing of its decisions, and declare its willingness to hold steady until the economy stabilizes. The more unlikely these steps become, the more likely a 2014 recession becomes. The average postwar U.S. expansion has lasted 58 months. In the midst of major policy dislocation in Congress and at the Fed, we are at month 52 of the current expansion, which began in June 2009. But we are running out of time – and luck. This originally appeared in Politico. John H. Makin Ed. Note: Like it or not, we're stuck with the Fed. And while it continues to print money and keep interest rates artificially low — all while destroy the value of the U.S. dollar — you'll want to make sure you're taking action now to protect you and your family's wealth. Signing up for free The Daily Reckoning email edition is one small thing you can do to make that happen. Every single issue is packed with opportunities to help you safeguard and even grow your wealth no matter what the Fed does. And it's FREE! So what are you waiting for? Sign up right here to get started. |
| Gold investors urge caution as miners consider return to hedging Posted: 12 Dec 2013 07:38 AM PST Investors in major gold miners reckon a return to hedging could rob them of the chance to reap the rewards of any price rebound. |
| Ivory Coast sells further 9% stake in Ity gold mine Posted: 12 Dec 2013 07:38 AM PST State miner Sodemi has sold the stake to Canada’s La Mancha Resources, the government says. |
| Gold & silver imports dive 80% in India Posted: 12 Dec 2013 07:38 AM PST A belligerent government wants to contain gold imports to $30 billion from the over $50 billion shelled out last year. |
| Can’t-miss headlines: Gold drops, distressed Mercator gets Russian suitors & more Posted: 12 Dec 2013 07:38 AM PST The latest morning headlines, top junior developments and metal price movements. Today, gold falls while in junior land deal making heats up. |
| Update: ‘Volcker Rule’ could hamstring big banks’ gold and silver trades Posted: 12 Dec 2013 07:38 AM PST The implementation of the 'Volcker Rule' over the next two years will, in theory, prevent the big banks dealing in gold and silver for their own speculative purposes. |
| Choice for Fed deputy implemented devaluation in Israel Posted: 12 Dec 2013 07:13 AM PST Fischer Seen Bringing Crisis-Fighting Skills to No. 2 Fed Post By Joshua Zumbrun and Rich Miller WASHINGTON -- Stanley Fischer, said to be the leading candidate for the No. 2 job at the Federal Reserve, offers crisis-fighting experience and a dose of skepticism about efforts to shape expectations on the outlook for interest rates. The former Bank of Israel governor, though a newcomer to the Fed, also brings continuity and strong academic credentials: as a professor of economics at Massachusetts Institute of Technology, he taught Fed Chairman Ben S. Bernanke, whose term ends in January, and European Central Bank chief Mario Draghi. Fischer, 70, is President Barack Obama's top choice to succeed Fed Vice Chairman Janet Yellen, who has been nominated to replace Bernanke, according to people familiar with the selection process. Obama has already offered the job to Fischer, who accepted it, said one of the people. The decision was made jointly by the president and Yellen, who is awaiting Senate confirmation as Fed chairman, the person said. ... Fischer earned a reputation as a trailblazer as the first central banker to cut interest rates in 2008 at the start of the global crisis and the first to raise them the following year in response to signs of a financial recovery. He also bought up foreign currency in unprecedented amounts to drive down the value of the shekel and boost exports, more than doubling reserves. ... ... For the full story: http://www.bloomberg.com/news/2013-12-12/fischer-seen-bringing-crisis-fi... ADVERTISEMENT Buy metals at GoldMoney and enjoy international storage GoldMoney was established in 2001 by James and Geoff Turk and is safeguarding more than $1.7 billion in metals and currencies. Buy gold, silver, platinum, and palladium from GoldMoney over the Internet and store them in vaults in Canada, Hong Kong, Singapore, Switzerland, and the United Kingdom, taking advantage of GoldMoney's low storage rates, among the most competitive in the industry. GoldMoney also offers delivery of 100-gram and 1-kilogram gold bars and 1-kilogram silver bars. To learn more, please visit: http://www.goldmoney.com/?gmrefcode=gata Join GATA here: Vancouver Resource Investment Conference http://www.cambridgehouse.com/event/vancouver-resource-investment-confer... * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT How to profit with silver -- Future Money Trends is offering a special 16-page silver report with our forecast for 2013 that includes profiles of nine companies and technical analysis of their stock performance. Six of the companies have market capitalizations of less than $800 million and one company has a market cap of only $30 million. The most exciting of these companies will begin production in a few weeks and has a market cap of just $150 million. Half of all proceeds from the sale of this report will be donated to the Gold Anti-Trust Action Committee to support its efforts exposing manipulation and fraud in the gold and silver markets. To learn about this report, please visit: http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp... |
| Posted: 12 Dec 2013 05:49 AM PST GOLD PRICES tumbled more than $20 per ounce in quiet London business Thursday morning, falling with world stock markets after the week's "three-day rally [in gold] prompted some profit-taking" according to one trading desk. This week's US budget deal will also "add pressure on gold and silver," reckons a note from Standard Bank's commodity team. Although "tiny, miniscule" according to some commentators, the deal between Republican and Democrat politicians to avert a repeat of the debt-ceiling shutdown in Feb. 2014 now means "another hurdle to economic growth in the US has been removed," writes analyst Walter de Wet, "and this increases the probability that the US Fed may start to reduce their asset purchases this month." So "from a tactical perspective," Standard Bank's de Wet concludes, "we still believe that gold should be sold into rallies." Overnight "ranges and volumes were subdued as the market waits for better sell levels [ie, higher gold prices]," says one Asian dealing desk in a note. "There has not been a great deal of action from China," says another, pointing to the Shanghai premium falling to $5 per ounce above London gold prices, down from $7 on Wednesday. "We will need to see some swings in [prices] to have renewed interest." Over in India today, formerly the world's No.1 gold consumer market, "As inflation comes down and as financial assets become more attractive, perhaps part of the demand for gold can come down too," said C.Rangarajan, chief of the prime minister's Economic Advisory Council, at an economics conference in Delhi. "We can probably tolerate $30 billion worth of import of gold." Indian gold imports have totaled nearer $50 billion over the last 12 months, and are blamed by the Economic Times today for "inflating India's current account deficit to a historic high of 4.8% of GDP in 2012-13." "The fact that India," said investor, fund manager and best-selling author Jim Rogers to BullionVault on Wednesday, "which has been the largest buyer, has reduced its buying a lot is one of the main factors that's causing gold prices to go down." Noting plans to "mobilize" existing consumer gold holdings, "If the Indian politicians somehow get their people to sell gold, whoo! Who knows how low gold prices could go?" Adding that he has hedged a portion of his personal gold holdings against further price falls, but not his silver position, Jim Rogers says the US budget deal means "the government is under no constraint. Central banks can [also] print as much as they want. "With all this staggering amount of currency debasement, gold has got to be a good place to be down the road once we get through this correction." Right now, says Jim Rogers, "I'm not buying either gold or silver...but if I had to buy one today, I'd buy silver because it certainly has gone down more than gold. So on a historic priced-basis if nothing else, I'd rather own silver." |
| Posted: 12 Dec 2013 05:49 AM PST GOLD PRICES tumbled more than $20 per ounce in quiet London business Thursday morning, falling with world stock markets after the week's "three-day rally [in gold] prompted some profit-taking" according to one trading desk. This week's US budget deal will also "add pressure on gold and silver," reckons a note from Standard Bank's commodity team. Although "tiny, miniscule" according to some commentators, the deal between Republican and Democrat politicians to avert a repeat of the debt-ceiling shutdown in Feb. 2014 now means "another hurdle to economic growth in the US has been removed," writes analyst Walter de Wet, "and this increases the probability that the US Fed may start to reduce their asset purchases this month." So "from a tactical perspective," Standard Bank's de Wet concludes, "we still believe that gold should be sold into rallies." Overnight "ranges and volumes were subdued as the market waits for better sell levels [ie, higher gold prices]," says one Asian dealing desk in a note. "There has not been a great deal of action from China," says another, pointing to the Shanghai premium falling to $5 per ounce above London gold prices, down from $7 on Wednesday. "We will need to see some swings in [prices] to have renewed interest." Over in India today, formerly the world's No.1 gold consumer market, "As inflation comes down and as financial assets become more attractive, perhaps part of the demand for gold can come down too," said C.Rangarajan, chief of the prime minister's Economic Advisory Council, at an economics conference in Delhi. "We can probably tolerate $30 billion worth of import of gold." Indian gold imports have totaled nearer $50 billion over the last 12 months, and are blamed by the Economic Times today for "inflating India's current account deficit to a historic high of 4.8% of GDP in 2012-13." "The fact that India," said investor, fund manager and best-selling author Jim Rogers to BullionVault on Wednesday, "which has been the largest buyer, has reduced its buying a lot is one of the main factors that's causing gold prices to go down." Noting plans to "mobilize" existing consumer gold holdings, "If the Indian politicians somehow get their people to sell gold, whoo! Who knows how low gold prices could go?" Adding that he has hedged a portion of his personal gold holdings against further price falls, but not his silver position, Jim Rogers says the US budget deal means "the government is under no constraint. Central banks can [also] print as much as they want. "With all this staggering amount of currency debasement, gold has got to be a good place to be down the road once we get through this correction." Right now, says Jim Rogers, "I'm not buying either gold or silver...but if I had to buy one today, I'd buy silver because it certainly has gone down more than gold. So on a historic priced-basis if nothing else, I'd rather own silver." |
| Posted: 12 Dec 2013 05:49 AM PST GOLD PRICES tumbled more than $20 per ounce in quiet London business Thursday morning, falling with world stock markets after the week's "three-day rally [in gold] prompted some profit-taking" according to one trading desk. This week's US budget deal will also "add pressure on gold and silver," reckons a note from Standard Bank's commodity team. Although "tiny, miniscule" according to some commentators, the deal between Republican and Democrat politicians to avert a repeat of the debt-ceiling shutdown in Feb. 2014 now means "another hurdle to economic growth in the US has been removed," writes analyst Walter de Wet, "and this increases the probability that the US Fed may start to reduce their asset purchases this month." So "from a tactical perspective," Standard Bank's de Wet concludes, "we still believe that gold should be sold into rallies." Overnight "ranges and volumes were subdued as the market waits for better sell levels [ie, higher gold prices]," says one Asian dealing desk in a note. "There has not been a great deal of action from China," says another, pointing to the Shanghai premium falling to $5 per ounce above London gold prices, down from $7 on Wednesday. "We will need to see some swings in [prices] to have renewed interest." Over in India today, formerly the world's No.1 gold consumer market, "As inflation comes down and as financial assets become more attractive, perhaps part of the demand for gold can come down too," said C.Rangarajan, chief of the prime minister's Economic Advisory Council, at an economics conference in Delhi. "We can probably tolerate $30 billion worth of import of gold." Indian gold imports have totaled nearer $50 billion over the last 12 months, and are blamed by the Economic Times today for "inflating India's current account deficit to a historic high of 4.8% of GDP in 2012-13." "The fact that India," said investor, fund manager and best-selling author Jim Rogers to BullionVault on Wednesday, "which has been the largest buyer, has reduced its buying a lot is one of the main factors that's causing gold prices to go down." Noting plans to "mobilize" existing consumer gold holdings, "If the Indian politicians somehow get their people to sell gold, whoo! Who knows how low gold prices could go?" Adding that he has hedged a portion of his personal gold holdings against further price falls, but not his silver position, Jim Rogers says the US budget deal means "the government is under no constraint. Central banks can [also] print as much as they want. "With all this staggering amount of currency debasement, gold has got to be a good place to be down the road once we get through this correction." Right now, says Jim Rogers, "I'm not buying either gold or silver...but if I had to buy one today, I'd buy silver because it certainly has gone down more than gold. So on a historic priced-basis if nothing else, I'd rather own silver." |
| 1200+ Tonnes Extra Supply, 1000 Tonnes Blocked Posted: 12 Dec 2013 05:25 AM PST With so many criminals holding seats in Parliament, Indians are used to the turpitude of government and are happily buying what gold they can from smugglers at a $50 discount to other 'legal' market prices. The political unpopularity of ... Read More... |
| Gold Price Drops $20, "I'd Rather Buy Silver," Says Jim Rogers Posted: 12 Dec 2013 05:05 AM PST WHOLESALE LONDON gold tumbled more than $20 per ounce in quiet trade Thursday morning, falling with world stock markets after the week's "three-day rally [in gold] prompted some profit-taking" according to one dealing desk. "The fact that India," said investor, fund manager and best-selling author Jim Rogers to BullionVault overnight, "which has been the largest buyer, has reduced its buying a lot is one of the main factors that's causing gold prices to go down." |
| Gold Stocks Bear of a Lifetime Takes No Prisoners Posted: 12 Dec 2013 05:02 AM PST Today I would like to update some of the Diamonds that have been in play for several months now. Chartology is giving us an edge over most of the other technical disciplines out there , in that it has been showing us the way lower to a T. Nobody but Rambus Chartology folks are seeing the precious metals stocks from this angle that got us short, for the first ride down, one year ago during the first impulse leg down. It was in the first week of December of 2012 that we took our first DUST position and added to it from there until the Kamikaze Portfolio was full. Here we are one year later and we have the exact same setup staring us in the face. This time we are one step ahead of the game by being fully invested in the Kamikaze Portfolio before things broke down. |
| Jim Rogers' First Rule of Investing Posted: 12 Dec 2013 04:30 AM PST Get educated. Choose real assets like gold or silver. But first... ON BEHALF of BullionVault customers who sent me their questions to put to Jim Rogers, writes Miguel Perez-Santalla, I asked him last night what advice he'd give someone trying to build or protect their portfolio as 2014 begins. "Everybody's gotta make that decision for themselves," Jim Rogers replied, urging US and other investors to educate themselves.
Then, and only once "you've done your homework and know where you're going," says Jim Rogers, "the first rule is you should have some of your assets outside of your country." Discover Business Internet Radio with New York Markets Live on BlogTalkRadio Speaking to New York Markets Live on Wednesday, Jim Rogers said:
Not everyone can access farmland or grain for investing directly, however. So how does Jim Rogers see silver investing compared to gold?
However, Jim Rogers stressed again that "I'm not buying either. I do own both. I have hedged a little of my gold, but I haven't hedged my silver. Because it's already gone down so far.
So, Jim Rogers' take on silver and gold investing overall right now?
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| Jim Rogers' First Rule of Investing Posted: 12 Dec 2013 04:30 AM PST Get educated. Choose real assets like gold or silver. But first... ON BEHALF of BullionVault customers who sent me their questions to put to Jim Rogers, writes Miguel Perez-Santalla, I asked him last night what advice he'd give someone trying to build or protect their portfolio as 2014 begins. "Everybody's gotta make that decision for themselves," Jim Rogers replied, urging US and other investors to educate themselves.
Then, and only once "you've done your homework and know where you're going," says Jim Rogers, "the first rule is you should have some of your assets outside of your country." Discover Business Internet Radio with New York Markets Live on BlogTalkRadio Speaking to New York Markets Live on Wednesday, Jim Rogers said:
Not everyone can access farmland or grain for investing directly, however. So how does Jim Rogers see silver investing compared to gold?
However, Jim Rogers stressed again that "I'm not buying either. I do own both. I have hedged a little of my gold, but I haven't hedged my silver. Because it's already gone down so far.
So, Jim Rogers' take on silver and gold investing overall right now?
|
| Jim Rogers: "US Heading for Disaster. Be Prepared" Posted: 12 Dec 2013 04:26 AM PST Nowhere near enough US gold to support the Dollar against America's debts... SPEAKING last night to my New York Markets Live radio show online, Jim Rogers forecast a nasty outlook for the global and especially US economy, writes Miguel Perez-Santalla at BullionVault. "In 1918," Jim Rogers explained, "the UK was the richest most powerful nation on earth. Within a generation it was in economic chaos, and within 3 generations it was bankrupt and the IMF had to bail them out. They couldn't sell government bonds things got so bad." Today the United States looks a lot like it could suffer the same loss of wealth and power as the UK began 100 years ago, says Jim Rogers. Most particularly:
Why temporary? Because central banks will panic at the first sign of trouble, and go straight back to money printing again. "Until, eventually," thinks Jim Rogers, "the market's going to say we say we're not gonna take this garbage anymore, this is absurd.
Jim Rogers told me, when I asked for his thoughts on this year's strong rise in stock markets, that thanks to quantitative easing and zero interest rates there is now "an artificial sea of liquidity and it's going into stocks.
So drilling down, what effect might the much-awaited tapering of QE by the US Fed in 2014 have on the economy? Jim Rogers thinks:
On the other side of that crisis, I asked, might the United States' gold reserves help support the Dollar in some new currency regime? "I don't know that it's there," Jim Rogers said. "I have no reason to assume it's not, except that there's not been a proper audit of America's gold in decades, if ever." Even if the US government does indeed hold the 8,133 tonnes of gold bullion reserves it reports, "It's not nearly enough to back the Dollar," he went on.
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| Jim Rogers: "US Heading for Disaster. Be Prepared" Posted: 12 Dec 2013 04:26 AM PST Nowhere near enough US gold to support the Dollar against America's debts... SPEAKING last night to my New York Markets Live radio show online, Jim Rogers forecast a nasty outlook for the global and especially US economy, writes Miguel Perez-Santalla at BullionVault. "In 1918," Jim Rogers explained, "the UK was the richest most powerful nation on earth. Within a generation it was in economic chaos, and within 3 generations it was bankrupt and the IMF had to bail them out. They couldn't sell government bonds things got so bad." Today the United States looks a lot like it could suffer the same loss of wealth and power as the UK began 100 years ago, says Jim Rogers. Most particularly:
Why temporary? Because central banks will panic at the first sign of trouble, and go straight back to money printing again. "Until, eventually," thinks Jim Rogers, "the market's going to say we say we're not gonna take this garbage anymore, this is absurd.
Jim Rogers told me, when I asked for his thoughts on this year's strong rise in stock markets, that thanks to quantitative easing and zero interest rates there is now "an artificial sea of liquidity and it's going into stocks.
So drilling down, what effect might the much-awaited tapering of QE by the US Fed in 2014 have on the economy? Jim Rogers thinks:
On the other side of that crisis, I asked, might the United States' gold reserves help support the Dollar in some new currency regime? "I don't know that it's there," Jim Rogers said. "I have no reason to assume it's not, except that there's not been a proper audit of America's gold in decades, if ever." Even if the US government does indeed hold the 8,133 tonnes of gold bullion reserves it reports, "It's not nearly enough to back the Dollar," he went on.
|
| Jim Rogers: "US Heading for Disaster. Be Prepared" Posted: 12 Dec 2013 04:26 AM PST Nowhere near enough US gold to support the Dollar against America's debts... SPEAKING last night to my New York Markets Live radio show online, Jim Rogers forecast a nasty outlook for the global and especially US economy, writes Miguel Perez-Santalla at BullionVault. "In 1918," Jim Rogers explained, "the UK was the richest most powerful nation on earth. Within a generation it was in economic chaos, and within 3 generations it was bankrupt and the IMF had to bail them out. They couldn't sell government bonds things got so bad." Today the United States looks a lot like it could suffer the same loss of wealth and power as the UK began 100 years ago, says Jim Rogers. Most particularly:
Why temporary? Because central banks will panic at the first sign of trouble, and go straight back to money printing again. "Until, eventually," thinks Jim Rogers, "the market's going to say we say we're not gonna take this garbage anymore, this is absurd.
Jim Rogers told me, when I asked for his thoughts on this year's strong rise in stock markets, that thanks to quantitative easing and zero interest rates there is now "an artificial sea of liquidity and it's going into stocks.
So drilling down, what effect might the much-awaited tapering of QE by the US Fed in 2014 have on the economy? Jim Rogers thinks:
On the other side of that crisis, I asked, might the United States' gold reserves help support the Dollar in some new currency regime? "I don't know that it's there," Jim Rogers said. "I have no reason to assume it's not, except that there's not been a proper audit of America's gold in decades, if ever." Even if the US government does indeed hold the 8,133 tonnes of gold bullion reserves it reports, "It's not nearly enough to back the Dollar," he went on.
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| Jim Rogers on Gold, Silver & the Coming US Crisis Posted: 12 Dec 2013 04:17 AM PST Investment legend is hedging gold, not silver. Will buy more if prices fall further... "I OWN GOLD and I own silver," said investor, fund manager and best-selling author Jim Rogers to me last night, interviewed by phone from his Singapore home, writes Miguel Perez-Santalla at BullionVault. "I've owned it for decades," he told listeners to my New York Markets Live radio show online. "But I'm not buying," Jim Rogers went on, stressing the point throughout our 30-minute interview. "In fact, I've hedged some of my gold at the moment." Here's how Jim Rogers sees the gold and silver markets as 2014 draws near:
Just how much longer might this correction in gold and silver prices run? Jim Rogers told me that:
And why not? Because "History would indicate we're in some kind of decline, either relative or actual and we're gonna have a crisis or semi-crisis," Jim Rogers believes. |
| Jim Rogers on Gold, Silver & the Coming US Crisis Posted: 12 Dec 2013 04:17 AM PST Investment legend is hedging gold, not silver. Will buy more if prices fall further... "I OWN GOLD and I own silver," said investor, fund manager and best-selling author Jim Rogers to me last night, interviewed by phone from his Singapore home, writes Miguel Perez-Santalla at BullionVault. "I've owned it for decades," he told listeners to my New York Markets Live radio show online. "But I'm not buying," Jim Rogers went on, stressing the point throughout our 30-minute interview. "In fact, I've hedged some of my gold at the moment." Here's how Jim Rogers sees the gold and silver markets as 2014 draws near:
Just how much longer might this correction in gold and silver prices run? Jim Rogers told me that:
And why not? Because according to Jim Rogers, "History would indicate we're in some kind of decline, either relative or actual and we're gonna have a crisis or semi-crisis." |
| Jim Rogers on Gold, Silver & the Coming US Crisis Posted: 12 Dec 2013 04:17 AM PST Investment legend is hedging gold, not silver. Will buy more if prices fall further... "I OWN GOLD and I own silver," said investor, fund manager and best-selling author Jim Rogers to me last night, interviewed by phone from his Singapore home, writes Miguel Perez-Santalla at BullionVault. "I've owned it for decades," he told listeners to my New York Markets Live radio show online. "But I'm not buying," Jim Rogers went on, stressing the point throughout our 30-minute interview. "In fact, I've hedged some of my gold at the moment." Here's how Jim Rogers sees the gold and silver markets as 2014 draws near:
Just how much longer might this correction in gold and silver prices run? Jim Rogers told me that:
And why not? Because according to Jim Rogers, "History would indicate we're in some kind of decline, either relative or actual and we're gonna have a crisis or semi-crisis." |
| Gold 1200+ Tonnes Extra Supply, 1000 Tonnes Blocked Posted: 12 Dec 2013 03:45 AM PST Indian Politics The events in India have taken a most interesting turn for gold. The one year-old political party that is anti-corruption is shaking the political foundations there. The ruling National Congress Party is having to change its stance in a hurry and is already losing influence in the capital, Delhi. With elections in May, one of the changes we expect to see will be the Finance Minister relaxing (what effectively is) the blockade on the importing of gold, which is hammering the gold jewelry industry as well as denying Indians access to market gold. |
| Indicators to Turn Your Trust Back to Gold and Silver Posted: 12 Dec 2013 03:28 AM PST John Paul Whitefoot writes: Despite the wintry Arctic chill, the economic recovery is in full bloom. Or is it? Wages are stagnant, unemployment remains stubbornly high at seven percent, and consumer confidence remains tepid at best. The average American investor clearly isn’t enjoying the Wall Street perpetual momentum machine. |
| Banks Do Not Like Either Bitcoin or Gold... It Makes Sense Posted: 12 Dec 2013 02:35 AM PST GoldBroker |
| Falling Back in Love with Gold Stocks Posted: 11 Dec 2013 09:04 PM PST There's a saying that old love never rusts. James West, publisher and editor of The Midas Letter, might have broken it off with the gold space for a while, but he always knew he'd be back when the time was right. In this interview with The Gold Report, West talks about what has convinced him to start shopping for gold stocks again and the unconventional indicators he's using to signal a buy. |
| Has the Long-term Kress Cycle Bottomed Early? Posted: 11 Dec 2013 08:24 PM PST A reader asks, "I was wondering if it's possible that the long cycles, such as the 60-year cycle, have already bottomed early. Is that even a possibility within the scope of the cycles? It appears that the Fed has complete control of the markets right now. One cannot help but wonder how high they will drive the stock market, and how low they will drive the gold miners. It would seem that the imbalances are beginning to look a little conspicuous." |
At the Miles Franklin Blog and Newsletter, our goal is to educate of the real state of the global economy; and subsequently, why Precious Metals should preserve one's wealth throughout the upcoming, global currency collapse. The topics we discuss cover the entire gamut – from macroeconomics, to relevant political issues, to personal anecdotal data. And of course, the illicit – and at times, explicit – suppression of gold and silver prices ongoing ever since Robert Rubin launched the ambiguous "strong dollar policy," circa 1998. Between David Schectman, Bill Holter, and myself, there's no topic you won't receive an intelligent, thought-provoking analysis of; and whether you believe it or not, is entirely up to the level of due diligence you choose to perform.
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