Gold World News Flash |
- Battlefield America
- Battlefield America
- What I Would Carry Months After SHTF
- The End of Gold and Silver Market Manipulation
- Economic Collapse 2014 -- Gold SHORTAGE Globally Hidden by Mainstream Media
- Death to Forex
- Professor William Black: The System is Ungovernable, It Has Already Largely Imploded
- “China Expected To Announce It Has More Than Doubled Its Gold Reserves”, Shanghai Daily
- Philippine Navy Adds To Regional Arms Build-Up As China Words (And Deeds) Escalate
- TF Metals Report: Morgan can break the Comex in gold
- 11.51mt Gold Remains at COMEX, Levered 112.2x to 1
- In the News
- Is Germany's gold in France as impaired as its gold at the New York Fed?
- "China Expected To Announce It Has More Than Doubled Its Gold Reserves", Shanghai Daily
- William Black -- The System Implosion Already Happened
- Why doesn't the monetary metals mining industry defend itself?
- Warfare, Welfare, and Wonder Woman - How Congress Spends Your Money
- Bank of America Is Actively Preparing For The Chinese January 31 Trust Default
- Ron Paul -- Congress Spending Your Money on Warfare
- Investment Climate in 7 Points
- In German newspaper, Bundesbank makes lame excuses for slow repatriation of gold
- Adam Taggart: A new way to hold gold -- right alongside the bills in your wallet
- Koos Jansen: Hong Kong isn't gold's only entry point in China
- Mining for Gold
- Noonan on Silver: Wait for Price to Confirm Its Intent – Then Start Stacking!
- Silver - The Power Of Thought Will Ultimately Previal
- Major Buy Signal in the Precious Metals Sector in the Next 2 - 3 Weeks
- Silver – The Power Of Thought Will Ultimately Previal
- Gold and Silver Major Buy Signal Over the Next 2-3 Weeks
- Silver Price – The Power Of Thought Will Ultimately Previal
- Bitcoin, Gold, and the Quantity of Money
- A Glimpse into the Coming Collapse
- BNN allows a warning about Comex's paper gold
- Gold will reign as currencies, stocks and bonds collapse.
- Why the West sells gold and China buys it
- Truth about gold market rigging will trigger price recovery, Sprott says
- Is Gold Still In A Downtrend? Yes – and No – Depending On How You Look At It
- Central Banks, Gold & the Currency Market, Part I
- Billionaire Eric Sprott - This Will Stun The Gold World In 2014
- China is taking control of the gold market away from the LBMA, Maguire says
- MAJOR BUY SIGNAL IN THE PRECIOUS METALS SECTOR IN THE NEXT 2-3 WEEKS
- Bitcoin Is The Financial Smelling Salts For Humanity – By Jason Liosatos
- Maguire - China Moves To Crush The West In The Gold Market
| Posted: 20 Jan 2014 01:11 AM PST Luckily, not the whole world is going to hell... STARTING in 1999, we predicted a systemic economic collapse that would take place in the First World and would impact all other economies, writes Jeff Thomas of International Man at Casey Research. We began to list some of the "dominoes" that would fall as the collapse evolved and described that the "Great Unravelling", as we termed it, would take roughly ten years. At that time, we guesstimated that the first two of the dominoes, a real estate crash and subsequent stock market crash in the US, would begin in about 2005. We were premature in this prediction, as the first of the crashes did not occur until 2007. And, truth be told, we have frequently been incorrect in the timing of the other dominoes. Whilst the actual events have been predicted correctly, our timing has often been incorrect. In every such case, the prediction has been premature. Sadly, however, the prediction of the events of the collapse have been almost entirely correct. We also predicted that, just as a ball of string speeds up its rotation as it rolls along unravelling, so, too, the events of the Great Unravelling would occur more quickly as the situation worsened. Additionally, the severity of the events would increase concurrently with the increase in velocity. However, none of the above was the result of gypsy fortune-telling, nor did it require the brightest of minds to work out. It is mostly based on the simple assumption that history repeats itself – that the world's leaders make the same mistakes in every era, because human nature never changes. Anyone who is willing to expend the effort to study history diligently and to be prepared to think in contrarian terms, may develop a meaningful insight into the events of the future. Back in 1999, of course, the very idea that the world was headed for serious economic calamity was considered ridiculous by most. The unfortunate fact is, most people do truly deal in the present, rarely questioning the future beyond what they consider to be the very next event. The truth of this statement is borne out by the fact that the great majority of people, who have already seen the first half of the Great Unravelling come to pass, still somehow cannot imagine the second half – the more disastrous half – as being in any way possible. Surely, somehow, the governments of the world will fix things. However, the number of people whose eyes have been opened seems to be growing, and many of them are asking what the collapse will look like as it unfolds. What will the symptoms be? Well, the primary events are fairly predictable: they would include major collapses in the bond and stock markets and possible sudden deflation (primarily of assets), followed by dramatic inflation, if not hyperinflation (primarily of commodities), followed by a crash of several major currencies, particularly the euro and the US Dollar. The secondary events will be less certain, but likely: increased unemployment, currency controls, protective tariffs, severe depression, etc. But, along the way, there will be numerous surprises – actions taken by governments that may be as unprecedented as they would be unlawful. Why? Because, again, such actions are the norm when a government finds itself losing its grip over the people it perceives as its minions. Here are a few: Travel Restrictions. This will begin with restrictions on foreign travel, including suspension/removal of passports. (This has begun in a small way in both the EU and US.) Later, travel restrictions will be extended within the boundaries of countries (highway checkpoints, etc.) Confiscation of wealth. The EU has instituted the confiscation of bank accounts, which can be expected to become an international form of governmental theft. This does not automatically mean that other assets, such as precious metals and real estate will also be confiscated, but it does mean that the barrier for confiscation has been eliminated. There is therefore no reason to assume that any asset is safe from any government that approves theft through bail-ins. Food Shortages. The food industry operates on very small profit margins and survives only as a result of quick payment of invoices. With dramatic inflation, marginal businesses (suppliers, wholesalers, and retailers) will fall by the wayside. The percentage of failing businesses will be dependent upon the duration and severity of the inflationary trend. Squatters Rebellions. A dramatic increase in the number of home and business foreclosures will result in homelessness for anyone whose debt exceeds his ability to pay – even those who presently appear to be well-off. As numbers rise significantly, a new homeless class will be created amongst the former middle class. As they become more numerous, large scale ownership of property may give way to large scale "possession" of property. Riots. These will likely happen spontaneously due to the above conditions, but if not, governments will create them to justify their desire for greater control of the masses. Martial Law. The US has already prepared for this, with the passing of the 2012 National Defense Authorization Act (NDAA), which many interpret as declaring the US to be a "battlefield". The NDAA allows the suspension of habeas corpus, indefinite detention, and the assumption that any resident may be considered an enemy combatant. Similar legislation may be expected in other countries that perceive martial law as a solution to civil unrest. The above list is purposely brief – a sampling of eventualities that, should they occur, will almost definitely come unannounced. As the decline unfolds, they will surely happen with greater frequency. But the value in projecting what the collapsing governments may do to their citizens is not merely an exercise in speculation. By anticipating the likelihood of any of the above, the individual may find that it would be prudent to turn off the game on television tonight and spend his time musing on the possibility of what he would do if any of the above events were to take place. (And, again, these projections are not mere fancy; they are actions typically taken by governments as their declines play out.) Most importantly, if the reader concludes that there is a significant percentage of likelihood that any of the above are coming his way, he would be well-advised to assess whether they are developments that he feels he could live with. If not, he might wish to assess how much time he has before these events become a reality and what he may do to sidestep their impact on him. Whilst, throughout the First World, the comment, "The whole world is going to Hell," is becoming common, in fact, this is not the case. Although some countries are in decline, others are on the rise. It is left to the reader to decide whether he will fall victim to coming events, or will use them as an opportunity to internationalise himself. You can find Casey Research's A-Z guide on internationalization here. |
| Posted: 20 Jan 2014 01:11 AM PST Luckily, not the whole world is going to hell... STARTING in 1999, we predicted a systemic economic collapse that would take place in the First World and would impact all other economies, writes Jeff Thomas of International Man at Casey Research. We began to list some of the "dominoes" that would fall as the collapse evolved and described that the "Great Unravelling", as we termed it, would take roughly ten years. At that time, we guesstimated that the first two of the dominoes, a real estate crash and subsequent stock market crash in the US, would begin in about 2005. We were premature in this prediction, as the first of the crashes did not occur until 2007. And, truth be told, we have frequently been incorrect in the timing of the other dominoes. Whilst the actual events have been predicted correctly, our timing has often been incorrect. In every such case, the prediction has been premature. Sadly, however, the prediction of the events of the collapse have been almost entirely correct. We also predicted that, just as a ball of string speeds up its rotation as it rolls along unravelling, so, too, the events of the Great Unravelling would occur more quickly as the situation worsened. Additionally, the severity of the events would increase concurrently with the increase in velocity. However, none of the above was the result of gypsy fortune-telling, nor did it require the brightest of minds to work out. It is mostly based on the simple assumption that history repeats itself – that the world's leaders make the same mistakes in every era, because human nature never changes. Anyone who is willing to expend the effort to study history diligently and to be prepared to think in contrarian terms, may develop a meaningful insight into the events of the future. Back in 1999, of course, the very idea that the world was headed for serious economic calamity was considered ridiculous by most. The unfortunate fact is, most people do truly deal in the present, rarely questioning the future beyond what they consider to be the very next event. The truth of this statement is borne out by the fact that the great majority of people, who have already seen the first half of the Great Unravelling come to pass, still somehow cannot imagine the second half – the more disastrous half – as being in any way possible. Surely, somehow, the governments of the world will fix things. However, the number of people whose eyes have been opened seems to be growing, and many of them are asking what the collapse will look like as it unfolds. What will the symptoms be? Well, the primary events are fairly predictable: they would include major collapses in the bond and stock markets and possible sudden deflation (primarily of assets), followed by dramatic inflation, if not hyperinflation (primarily of commodities), followed by a crash of several major currencies, particularly the euro and the US Dollar. The secondary events will be less certain, but likely: increased unemployment, currency controls, protective tariffs, severe depression, etc. But, along the way, there will be numerous surprises – actions taken by governments that may be as unprecedented as they would be unlawful. Why? Because, again, such actions are the norm when a government finds itself losing its grip over the people it perceives as its minions. Here are a few: Travel Restrictions. This will begin with restrictions on foreign travel, including suspension/removal of passports. (This has begun in a small way in both the EU and US.) Later, travel restrictions will be extended within the boundaries of countries (highway checkpoints, etc.) Confiscation of wealth. The EU has instituted the confiscation of bank accounts, which can be expected to become an international form of governmental theft. This does not automatically mean that other assets, such as precious metals and real estate will also be confiscated, but it does mean that the barrier for confiscation has been eliminated. There is therefore no reason to assume that any asset is safe from any government that approves theft through bail-ins. Food Shortages. The food industry operates on very small profit margins and survives only as a result of quick payment of invoices. With dramatic inflation, marginal businesses (suppliers, wholesalers, and retailers) will fall by the wayside. The percentage of failing businesses will be dependent upon the duration and severity of the inflationary trend. Squatters Rebellions. A dramatic increase in the number of home and business foreclosures will result in homelessness for anyone whose debt exceeds his ability to pay – even those who presently appear to be well-off. As numbers rise significantly, a new homeless class will be created amongst the former middle class. As they become more numerous, large scale ownership of property may give way to large scale "possession" of property. Riots. These will likely happen spontaneously due to the above conditions, but if not, governments will create them to justify their desire for greater control of the masses. Martial Law. The US has already prepared for this, with the passing of the 2012 National Defense Authorization Act (NDAA), which many interpret as declaring the US to be a "battlefield". The NDAA allows the suspension of habeas corpus, indefinite detention, and the assumption that any resident may be considered an enemy combatant. Similar legislation may be expected in other countries that perceive martial law as a solution to civil unrest. The above list is purposely brief – a sampling of eventualities that, should they occur, will almost definitely come unannounced. As the decline unfolds, they will surely happen with greater frequency. But the value in projecting what the collapsing governments may do to their citizens is not merely an exercise in speculation. By anticipating the likelihood of any of the above, the individual may find that it would be prudent to turn off the game on television tonight and spend his time musing on the possibility of what he would do if any of the above events were to take place. (And, again, these projections are not mere fancy; they are actions typically taken by governments as their declines play out.) Most importantly, if the reader concludes that there is a significant percentage of likelihood that any of the above are coming his way, he would be well-advised to assess whether they are developments that he feels he could live with. If not, he might wish to assess how much time he has before these events become a reality and what he may do to sidestep their impact on him. Whilst, throughout the First World, the comment, "The whole world is going to Hell," is becoming common, in fact, this is not the case. Although some countries are in decline, others are on the rise. It is left to the reader to decide whether he will fall victim to coming events, or will use them as an opportunity to internationalise himself. You can find Casey Research's A-Z guide on internationalization here. |
| What I Would Carry Months After SHTF Posted: 19 Jan 2014 11:30 PM PST from DEMCAD: My response to Miami Prepper’s question on what I would carry when I leave the house months after a societal collapse. |
| The End of Gold and Silver Market Manipulation Posted: 19 Jan 2014 11:00 PM PST Jeffrey Lewis |
| Economic Collapse 2014 -- Gold SHORTAGE Globally Hidden by Mainstream Media Posted: 19 Jan 2014 09:08 PM PST No money is safe anywhere in any form. Period. The only money you can really be sure of not being lost is the money spent. . Otherwise spend a couple thousand on a quality safe from Liberty safe co, and buy an alarm. sell an ounce and a half of gold, and you can get a great one. The safe will... [[ 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! ]]  |
| Posted: 19 Jan 2014 08:37 PM PST The Forex market is dead and dying, in parallel with the US economy; which is fitting, considering the US is still the world reserve currency. Significant harbingers that have changed the Forex market forever:
For those readers who believe this is all part of a 'conspiracy' to issue in a one world currency, read the following Kissinger transcript post Nixon shock (in part):
These are not very sophistocated guys, according to the transcript (Conspiracy Theorists are encouraged to read the FULL transcript), but it does give credibility to the rumor that Arthur Laffer explained economic policy to Dick Cheney and Donald Rumsfeld in a bar by drawing a half circle on a napkin. So, how does the Death of Forex have an impact on my portoflio? How is this information valuable to me, and not just for Fortune Cookies? 1. If you are considering participating in Forex, or are already doing so, and you are a US Citizen or live in the US, consider setting up something outside of US, legally. 2. If you are a portfolio manager, hedge yourself from a potential collapse of your domestic currency. There are plenty of high quality articles on Zero Hedge that outline this, just remember that if the US Dollar collapses it may be orchestrated with the ECB, now being run by an American trained MIT alumni, so if the USD goes down it doesn't mean exactly that the EUR will go up. 3. If you are investing internationally, be sure to hedge your Forex position with forwards, options, and avoid huge bank spreads that can be as high as 14% of your total transaction (up to 700 pips per side). 4. Unless you are forced by circumstance, or are extremely intelligent, experienced, and sophistocated, DO NOT INVEST IN FOREX, especially with 3rd party 'managers' that boast consistent usually unrealistic returns. 5. Stay out of cash as much as possible, a big Forex market event can create hyperinflation, or even black market rates as we've seen in Argentina and India, or make the use of currencies in certain venues difficult or prohibited. A final thought, about the biggest players in the world's largest market by volume. Germany is the economic backbone of the Eurozone and thus the Euro. Euro is currently the only alternative to the US Dollar, and US Bond market. Here's a passage about the banking culture in Germany, with their most important FX banks:
Just a thought, considering the current cases against the FX trading banks, maybe it would have been better, in hindsight, to instead invest in some dynamic model for FX. But every organization reaches it's ultimate level of optimization, in the case of this Forex environment, it involves the excretion of one of the few products we can all agree that Germany does well (beer), and is combined with the alleged manipulation (cheating) of FX dealers. It paints a sad and surreal death the the modern Forex market. |
| Professor William Black: The System is Ungovernable, It Has Already Largely Imploded Posted: 19 Jan 2014 07:45 PM PST from Greg Hunter: Professor William Black is a former financial regulator and an expert in white collar crime. According to Professor Black, the financial system is headed for an even bigger collapse. As a major warning sign, Professor Black points to Treasury Secretary Jack Lew’s recent complaint about no money for regulation in the recent budget deal. Professor Black says, “Jack Lew is the anti-canary in the coal mine because Lew has been gutting regulation for virtually all of his professional life. . . . Lew is saying, my God we’ve gone so far we’re going to cause the collapse of the system. . . . You know when Jack Lew keels over, you know that carbon monoxide has already killed everybody reasonable.” Professor Black goes on to say, “The system is ungovernable . . . It has already largely imploded.” Join Greg Hunter as he goes One-on-One with Professor William Black, who recently updated and re-released his popular book “The Best Way to Rob a Bank is to Own One.” |
| “China Expected To Announce It Has More Than Doubled Its Gold Reserves”, Shanghai Daily Posted: 19 Jan 2014 07:21 PM PST from ZeroHedge:
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| Philippine Navy Adds To Regional Arms Build-Up As China Words (And Deeds) Escalate Posted: 19 Jan 2014 07:15 PM PST Submitted by Luke Hunt via The Diplomat, The Philippine navy hopes to add two more warships to its fleet as Southeast Asian countries continue to expand their militaries in response to the Chinese government’s increasingly assertive territorial ambitions in the South China Sea, also known as the West Philippine Sea.
Armed forces chief of staff General Emmanuel Bautista said the new acquisitions would come under the fresh U.S. military assistance plan announced last month by U.S. Secretary of State John Kerry when he visited the Philippines. China began widening its territorial claims about five years ago to include nearly all of the seas dividing Southeast Asian countries and their northern neighbor. The claims defy international standards and maritime law, and Beijing refuses to have the dispute heard before an international court. Its attitude has angered Vietnam, Malaysia, Brunei and the Philippines, but the four countries have struggled to forge a united front within the 10-member Association of Southeast Asian Nations (ASEAN) when dealing with Beijing over the issue. Adding to recent tensions was Liu Yazhou, political commissar at the People’s Liberation Army National Defense University, who said in a magazine interview that the Chinese military could match the U.S. by “seizing opportunities.” “An army that fails to achieve victory is nothing,” Liu was quoted as saying by a defense magazine “Those borders where our army has won victories are more peaceful and stable, but those where we were too timid have more disputes.” That type of language again irritated its neighbors. The Vietnamese have for the first time publicly marked a naval battle fought against China over disputed islands 40 years ago. Commemorations came a month after the Chinese government published new rules requiring foreign fishing vessels to seek Beijing’s permission to operate in much of the South China Sea. Taiwan has rejected those regulations, described by some as potentially state piracy, while others have rejected or ignored them. Vietnam has also moved to bolster its own defenses, taking delivery of its first Russian-made Kilo class submarine, which is part of substantial military upgrade by Hanoi – primarily through a multi-billion-dollar deal with Moscow. Malaysia has also added two French-made Scorpene submarines, boosting its own maritime capabilities. Indonesia and Singapore are also expanding their fleets in what The New York Times described as “The Submarine Race in Asia.” The paper noted that much of this arms competition was being propelled by growing wealth in Southeast Asia but added these countries and China should realize that increasing their armaments can only undermine their security as well as the stability that nurtures their economies. |
| TF Metals Report: Morgan can break the Comex in gold Posted: 19 Jan 2014 06:40 PM PST 6:35p PT Sunday, January 19, 2014 Dear Friend of GATA and Gold: JPMorganChase has accomplished such a long corner in gold on the New York Commodities Exchange that it could force the Comex to default in any of the near-term delivery months, the TF Metals Report's Turd Ferguson writes. On the other hand, if, as some of us suspect, JPMorganChase trades largely for the U.S. government, its long corner on Comex gold may have been engineered to make sure that nobody but the government itself ever corners the primary monetary metal. Ferguson's commentary is headlined "By the Short Hairs" and it's posted at the TF Metals Report here: http://www.tfmetalsreport.com/blog/5400/short-hairs CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT How to profit with silver -- Future Money Trends is offering a special 16-page silver report with our forecast for 2013 that includes profiles of nine companies and technical analysis of their stock performance. Six of the companies have market capitalizations of less than $800 million and one company has a market cap of only $30 million. The most exciting of these companies will begin production in a few weeks and has a market cap of just $150 million. Half of all proceeds from the sale of this report will be donated to the Gold Anti-Trust Action Committee to support its efforts exposing manipulation and fraud in the gold and silver markets. To learn about this report, please visit: http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp... Join GATA here: Vancouver Resource Investment Conference http://www.cambridgehouse.com/event/vancouver-resource-investment-confer... GATA Reception in Vancouver Mines and Money Hong Kong http://www.minesandmoney.com/hongkong/ * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Buy metals at GoldMoney and enjoy international storage GoldMoney was established in 2001 by James and Geoff Turk and safeguards 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 |
| 11.51mt Gold Remains at COMEX, Levered 112.2x to 1 Posted: 19 Jan 2014 05:00 PM PST Goldsilver |
| Posted: 19 Jan 2014 04:19 PM PST Dr. Paul Craig Roberts: If the Currency Collapses & You Try to Flee Into Gold,There Won’t Be Any Former Assistant Treasury Secretary Dr. Paul Craig Roberts says, “The West is draining itself of physical bullion. . . If there is a currency collapses and you try to flee into gold, there won’t be any there.... Read more » The post In the News appeared first on Jim Sinclair's Mineset. |
| Is Germany's gold in France as impaired as its gold at the New York Fed? Posted: 19 Jan 2014 04:01 PM PST 4p PT Sunday, January 19, 2014 Dear Friend of GATA and Gold: Today's fuss about the German Bundesbank's repatriation over the last year of only 5 of the 300 tonnes of its gold that it planned to repatriate from the Federal Reserve Bank of New York should include a fuss about the Bundesbank's similarly pitiful repatriation of its gold vaulted at the Banque de France in Paris. A year ago the Bundesbank said it would repatriate 374 tonnes from the Banque de France: http://www.nytimes.com/2013/01/17/business/global/german-central-bank-to... But today's report in the German newspaper The World on Sunday -- http://www.welt.de/wirtschaft/article123988843/Die-ganze-Wahrheit-ueber-... -- quotes the Bundesbank as saying that it has managed to repatriate only 32 tonnes from France so far. Is the German gold supposedly vaulted in France as impaired as the German gold supposedly vaulted at the New York Fed seems to be? CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT A Personal Touch in Buying Precious Metals If you've not secured your allocation of precious metals and numismatic coins, 2014 may be the last year to get them at affordable and undervalued prices. With huge amounts of gold leaving the West for Asia, the future availability of precious metals is very much in doubt. All Pro Gold has competitive pricing on all bullion and numismatic products -- and offers prompt delivery too. Long-time GATA supporters Fred Goldstein and Tim Murphy are glad to answer any questions or concerns about acquiring the monetary metals. All Pro Gold has an extensive electronic library of articles from the world's top market analysts. Learn more at www.allprogold.com or write to Fred and Tim at info@allprogold.com or telephone them at 1-855-377-4653. Join GATA here: Vancouver Resource Investment Conference http://www.cambridgehouse.com/event/vancouver-resource-investment-confer... GATA Reception in Vancouver Mines and Money Hong Kong http://www.minesandmoney.com/hongkong/ * * * 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 Jim Sinclair plans seminars in Asheville and Austin Gold advocate and mining entrepreneur Jim Sinclair will hold his next market seminars from 2 to 6 p.m. Saturday, January 25, at the Clarion Inn Asheville, 550 Airport Road, Fletcher, North Carolina, and from 2 to 6 p.m. Saturday, February 8, at the Austin, Texas, Airport Hilton. Advance registration is required. Details for the Asheville seminar are posted at Sinclair's Internet site, JSMineSet.com, here: http://www.jsmineset.com/2014/01/07/north-carolina-qa-session-venue-conf... Details for the Austin seminar are posted at JSMineSet.com here: http://www.jsmineset.com/2014/01/02/austin-texas-qa-session-confirmed/ |
| "China Expected To Announce It Has More Than Doubled Its Gold Reserves", Shanghai Daily Posted: 19 Jan 2014 04:00 PM PST The topic of China's below the radar accumulation of gold is nothing new: first revealed here in September 2011 as part of a Wikileaks intercept, watchers of Chinese gold imports have been stunned by the ravenous pace with which Chinese customers have been gobbling up both domestic and foreign gold production month after month. One needs merely to glance at the net imports of gold just through Hong Kong to get a sense of just how much gold has flowed into the country which has now surpassed India as the largest buyer of gold.
But the biggest question mark since 2009, when China gave its last official gold holdings update, has been how much gold has the People's Bank of China accumulated. One thing is certain: it is well more than the official number of just ovef 1000 tons. Recall the confidential memo revealed through Wikileaks:
In other words, between 2009 and 2011, China's gold reserves had increased according to internal data. One can assume they have increased substantially since then, however the PBOC, judiciously, has refused to provide an updated amount of its gold holdings for five years in a row: after all why buy at higher prices (if the world knows that the PBOC is buying at any price), when it can buy cheaply? However, the period of stealth - and cheap - accumulation may be ending. At least according to the largest English-language portal in East China: Shanghai Daily. The website, which cites an analysis by Jeffrey Nichols of American Precious Metals Advisors, reports that the Chinese central bank is about to announce its gold holdings have nearly tripled from 1054 tons to 2710 tons. From Shanghai Daily:
Oh well: the period of quiet accumulation was fun while it lasted. That said, we for one would be happy if Nichols is wrong, and if the PBOC were not to announce any time soon it has become the fourth (or third, or second) largest official holder of gold in the world. Because unlike clueless, momentum-chasing traders everywhere, it is always better to buy lower than higher: a concept which the entire Western "developed" markets and the HFT algos and sophisticated "hedge fund" investors that trade them, have either forgotten or never grasped to begin with. |
| William Black -- The System Implosion Already Happened Posted: 19 Jan 2014 03:37 PM PST Professor William Black is a former financial regulator and an expert in white collar crime. According to Professor Black, the financial system is headed for an even bigger collapse. As a major warning sign, Professor Black points to Treasury Secretary Jack Lew's recent complaint about no... [[ 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! ]]  |
| Why doesn't the monetary metals mining industry defend itself? Posted: 19 Jan 2014 03:25 PM PST 3:27p PT Sunday, January 19, 2014 Dear Friend of GATA and Gold: Our friend T.Y. writes: "I have been following your work for years. It astounds me that the big mining companies don't financially support you. I can only guess that they are beholden to these big banks and financial institutions. That is, if the big mining companies supported GATA, maybe they would be put on a blacklist where they would not get any funding for their projects or would be branded 'conspiracy nuts.' You're up against some of the most powerful, corrupt, and greedy people on the planet. Keep up the good work and be careful. Remember Harry Markopolos." Yes, the mining business is the most capital-intensive and thus almost entirely reliant for financing on the big investment banks that are the agents of the central banks in the gold price suppression scheme particularly and the commodity price suppression scheme generally. And of course the mining business is also the most vulnerable to government control through the award and revocation of mining licenses, the imposition of royalty requirements, and enforcement of environmental regulations. But few executives of companies that mine the monetary metals understand the monetary nature of their product. Fewer still understand the mechanisms by which the prices of their products are suppressed. And those who do understand are too scared to do anything about it or even acknowledge it. Still, since it's dying now anyway, with the nominal price of its products driven below the cost of production by phony futures market paper trading, the monetary metals mining industry has little to lose by fighting back. It's a job that should be done by the industry's trade organizations, the World Gold Council and the Silver Institute, to take the burden off any particular company. Unfortunately the World Gold Council and the Silver Institute exist only to make sure that there never is a world gold council or a silver institute, to make sure that the gold and silver mining industries are never represented and exert the influence they could have on behalf of free and transparent markets. The failure of those organizations to defend their industries is an essential part of the market rigging by which the money power exploits the whole world. 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... GATA Reception in Vancouver Mines and Money Hong Kong http://www.minesandmoney.com/hongkong/ * * * 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 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... |
| Warfare, Welfare, and Wonder Woman - How Congress Spends Your Money Posted: 19 Jan 2014 02:53 PM PST Supporters of warfare, welfare, and Wonder Woman cheered last week as Congress passed a one trillion dollar "omnibus" appropriation bill. This legislation funds the operations of government for the remainder of the fiscal year. Read More... |
| Bank of America Is Actively Preparing For The Chinese January 31 Trust Default Posted: 19 Jan 2014 02:41 PM PST Last week we were the first to raise the very real and imminent threat of a default for a Chinese wealth management product (WMP) default - specifically China Credit Trust's Credit Equals Gold #1 (CEQ1) - and its potential contagion concerns. It seems BofAML is now beginning to get concerned, noting that over 60% of market participants expects repo rates to rise if a trust product defaults and based on the analysis below, they think there is a high probability for CEQ1 to default on 31 January, i.e. no full redemption of principal and back-coupon on the day. Crucially, with the stratospheric leverage ratios now engaged in such products, BofAML warns trust companies must answer some serious questions: will they stand back behind every trust investment or will they have to default on some or potentially many of them? BofAML believes the question needs an answer because investors and Trusts can’t have their cake and eat it too. The potential first default, even if it’s not CEQ1 on 1/31, would be important based on the experience of what happened to the US and Europe; the market has tended to underestimate the initial event.
For those who have forgotten, below is a quick schematic of what a WMP looks like:
And as we previously noted,
So the PBOC's efforts are merely exacerbating the situation for the worst companies... and as BofAML notes below, this is a major problem... The 3bn CNY Beast Knocking CNY stands for the currency, and also a beast CNY represents China’s official currency. It also stands for Chinese New Year, the biggest holiday for the country and the occasion for family reunions and celebration. But less familiar for many, however, the Year (?) itself actually stood for a beast which comes out every 365 days and eats everything along the way from bugs to humans. The holiday tradition started as a way for people to fend off the beast by getting together and lighting up the firecrackers. At the same time, custom dictated that people also to paid their due to avoid becoming the beast’s target. In particular, it has been a tradition to settle all debt before the New Year. From the perspective of such folk culture, the trust product Credit Equals Gold #1, referred as CEQ1 hereafter, by China Credit Trust planned poorly for having the maturing date on the New Year, leaving a 3bn CNY beast running wild. High probability for the trust product to default Though the term default is used quite frequently, there are actually confusions on what constitutes a default in this case when talking to investors and especially onshore investment professionals. To simplify the issue, we define a default as failing to pay the promised contractual amount on time. The product, CEQ1, is straightforward. It is CNY3.03bn financing with senior tranches of CNY3bn and junior tranche of CNY30mn. In principle, the senior tranches are also equity investment, but the junior tranche holder pledged assets for repurchasing senior investment at a premium. The promised rate was indexed to PBoC’s deposit rate with a floor for three classes of senior tranches at 9.5%, 10% and 11%, paid annually (detailed structure is illustrated below).
In a sense, the product is in technical default already. The last coupon payment in December, with nearly all the money (CNY80mn) left in the trust account, came in at only 2.7%, falling far short of the promised yield. The bigger trouble is the CNY3bn principal payment, along with the delinquent coupon, on 31 January. We see high probability of default on 31 January
Putting all the above reasons together, we think there is a high probability for CEQ1 to default on 31 January, i.e. no full redemption of principal and backcoupon on the day. Immediate impact would be for China rates curve to flatten The case has been widely covered in the media. However, many still believe one way or the other the involved parties will find a last minute solution to fully redeem the maturing debt. So if the trust is not paid, we believe it will be a big shock to the market. China rates market reaction, however, might not be straightforward. On the one hand, default would likely lead to risk-averse behavior, arguing for lower rates. On the other hand, market players would likely hoard cash in such an event, leading to tighter liquidity condition and pushing money rates higher. We think that both movements are likely to ensue initially, meaning higher repo/SHIBOR rates and lower CGB yield if default were to realize. We suggest positioning likewise by paying 1y IRS and long 5y CGB. On the swap curve itself, we think the immediate reflection will be a bear flattening move.
Interestingly, an informal survey conducted on WeChat among finance professionals suggests the same kind of repo rate reaction (Chart 1). We think this survey is important because we believe these investment professionals will likely behave accordingly because the default event is not priced in and hard to hedge a priori. Trust company can’t have their cake and eat it too Of course, we can’t rule out that the involved parties do find a solution to avoid default. However, with a case as clear cut to us as this one favoring default, we believe such outcome would send a strong signal to investors that the best investment is to buy the worst credit. Thus, we believe the near term market reaction with no default would be for the AA credit to shine brightly since this segment has been under pressure for quite some time. Trust investment would be met with enthusiasm and trust assets would likely expand further. However, we see a fundamental problem in the industry; the leverage ratio has gone to a level which requires investors and trust companies to answer some serious questions: will trust company stand back behind every trust investment or will trust company have to default on some or potentially many of them? We believe the question needs an answer because the trust companies can’t have their cake and eat it too. For the industry, the AUM/equity ratio has nearly doubled from 23 to 43 in less than three years during the period of 4Q2010 to 3Q2013 (Chart 2). Some in the industry has argued that one should only count the collective trusts since other trusts are originated by non-trust players like banks. Thus, trust companies have no responsibility for paying investors other than collective trusts.
We see two problems.
On longer term market trend Based on the analysis in the above section, we see a possibility for trust companies to have to let some trust products default with such high leverage and so few provisions. This is especially likely the case given that there will be more and more trust redemption this year and next year as a result of the fast expansion of this industry over the last couple of years and short duration of such products. The heaviest redemption in collective trusts this year will arrive in the 2Q (Chart 3). Given that the financial system is stretched thin and there were more cases of near defaults on smaller amount of redemption last year (three cases in December alone), we believe some form of default is almost inevitable in the near term.
The potential first default, even if it’s not CEQ1 on 31 JANUARY, would be important based on the experience of what happened to the US and Europe; the market has tended to underestimate the initial event. Over the last year, China appeared to be mirroring what happened in the US during 2007, the spike of money rate (much higher repo/SHIBOR), the steepening of money curve (14d money much more expensive than overnight and 7d), and small accidents here and there (junior tranches of a few wealth management products offered by Haitong Securities losing more than 60%, a few small trusts and now CEQ1’s redemption difficulty). Theoretically, China’s risk is best expressed using a China related instrument, but we also think the more liquid expression of China goes through the south pacific. The following points list our longer views on China and Australia rates.
As Michael Pettis, Jim Chanos, Zero Hedge (numerous times), George Soros, Barclays, and now BofAML have explained... Simply put -
The "eerie resemblances" - as Soros previously noted - to the US in 2008 have profound consequences for China and the world - nowhere is that more dangerously exposed (just as in the US) than in the Chinese shadow banking sector. |
| Ron Paul -- Congress Spending Your Money on Warfare Posted: 19 Jan 2014 02:30 PM PST Ron Paul -- Congress Spending Your Money on Warfare Supporters of warfare, welfare, and Wonder Woman cheered last week as Congress passed a one trillion dollar "omnibus" appropriation bill. This legislation funds the operations of government for the remainder of the fiscal year. Wonder... [[ 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! ]]  |
| Investment Climate in 7 Points Posted: 19 Jan 2014 01:49 PM PST 1. The Federal Reserve will continue its tapering strategy outlined by the FOMC last month. The wobble in opinion caused by the unexpectedly poor December jobs report has been largely shrugged off. The Beige Book upgraded its assessment of US growth and recent data have spurred economist to revise up Q4 GDP forecasts, with many coming in around 3% now. Early survey data for January suggests the momentum has carried over.
2. At his press conference earlier this month, ECB President Draghi provided two general conditions for new action. a worsening of the disinflation outlook and an unwarranted increase in money market rates. There is little to add to the inflation picture over the past couple of weeks, but money market rates are elevated. EONIA was above the 25 refi rate in the second half of last week. Indicative prices suggest 3-month interbank lending rates have doubled over the past three months to 27 bp. Pressure will mount on the ECB to act, but politically possible effective options are few and far between. Banks will continue to pay down their LTRO borrowings and, while lending to households appear to be stabilizing, lending to SMEs continues to fall.
3. The BOJ is past the half way point toward reaching its 2.0% target (core inflation, which excludes fresh food prices). The December report is due out from January 30. The headline rate of 1.5% is just above the Germany's December rate. Starting next month, the BOJ's QQE purchases will surpass Federal Reserve purchases. The sales tax hike from 5% to 8% effective April 1 is the next key economic challenge and the BOJ appears more likely to react than to preempt. The rally in global bonds appear to have helped cap JGB yields that had risen from 60 bp to 75 bp in December and settled just above 66 bp before the weekend.
4. The Australian and Canadian dollars remain out of favor. Poor employment data in Australia has seen a dramatic swing in the pendulum of market sentiment toward a rate cut. The lack of a surprise by the Q4 CPI report on January 21 will underscore the idea that the RBA has scope to cut rates. The trimmed mean CPI remains well below the longer term averages (Q3 2.3%, 5- and 10-year averages 2.8% and 2.9% respectively). A similar pattern can be seen in headline rate as well.
A series of poor data and elevated official concerns about disinflation has spurred speculation of a rate cut by the Bank of Canada. Yet action this week, at its Wednesday, January 22 meeting is a highly unlikely. At most, a reduction in its inflation forecasts seems like the most that can be expected. Given the record short speculative position in the futures market and the pace of the recent decline in the Canadian dollar, there seems be heightened risk of a "sell the rumor, buy the fact" short squeeze.
5. European asset markets are outperforming here in early 2014. Turning first to flows, we note that ETFs that invest in European equities have seen assets under management (AUM) increase by $1.4 bln in the first half of January. Japan equity ETFs have also continued to report inflows. The AUMs have increased by $1.3 bln. The retreat from emerging markets equities has continued, with estimates of $4.2 bln leaving so far this year. US equity ETFs have experienced $1.3 bln of outflows.
Looking at some national bourse reports, Taiwan stands out. It appears to be non-residents' favorite equity market in Asia, recording $1.06 bln of inflows already this year. In contrast, South Korea, which was favored by foreign investor last year, has seen light profit-taking. Interestingly, Japan also reports net foreign sales so far this year.
In terms of performance, Span and Italy continue to stand out with 5.5% and 5.3% gains respectively among the large European bourses, but Greece continues to shine (9%) and Portugal is main index is up nearly 7.5%. Of core European countries, Austria has begun the best, gaining 6.8%. The Dow Jones Stoxx 600 is up 2.3% here in January, while the Nikkei is off 3.4% and the S&P 500 is down 0.5%. The MSCI Emerging Market Equity index is off a little more than 3%. Lastly we note that like last year, small caps are generally out performing large caps.
6. The major bond markets have begun the new year with advances, despite Fed tapering and amid generally constructive economic data. The US benchmark 10-year yield is 10 bop lower than where it finished last year. The UK's 10-year gilt yield is off 19 bp, while the benchmark bund yield is 17 bp lower. Japanese bonds have lagged in the rally as they lagged in the sell-off. The 10-year yield is 6 bp lower here in the first part of January. Asset managers continue to see value in peripheral European bonds. Italy's 10-year yield has fallen 222 bp this year; not bad, but Spain's 10-year yield is off 40 bp. However, growing confidence that Portugal can exit its aid programs has seen its 10-year benchmark yield drop 70 bp this year. Ironically, Ireland, which was upgraded by Moodys, back into investment grade, has the only 10-year bond in the euro zone that has weakened this year. The yield has risen a little more than 4 bp.
Turning to the short-end of coupon curve, the US and Japanese two-year yields are essentially flat so far this year, and Germany and the UK of 3-4 bp lower. Spain and Italy continue to experience yield declines in absolute terms and relative to Germany. Their two-year yields are 34 bp and 16 bp lower on the year. Portugal is also experiencing a bullish flattening, as its two-year yield is about 7 bp lower on the year.
7. China is experiencing another squeeze in its money markets and this may ahead of the new year celebration at the month. The 7-day repo rate surged before the weekend, nearing 9.8% before finishing near 8.47%, compared with 5.28% at the end of the previous week. The Shanghai Composite is off 5.25%, given the dubious honor of being the worst performing Asian market. In addition to Lunar New Year considerations, reports suggest a number of wealth management products are set to mature at the end of the month as well.
At the end of last week, new concerns about the China's shadow banking arose. ICBC, the world's largest bank by asset values, took what appears to be an unprecedented step, announced it would not make investors whole who bought some of a CNY3 bln (~$500 mln) investment product it had distributed four years ago. The investment product is set to mature at the end of January. The product reportedly offered a 10% yield when the benchmark deposit rate was around 3%. The regular practice by trust companies to make investors whole has created a moral hazard to which government officials are sensitive and looking for ways to rectify.
 |
| In German newspaper, Bundesbank makes lame excuses for slow repatriation of gold Posted: 19 Jan 2014 11:43 AM PST 11:44a PT Sunday, January 19, 2014 Dear Friend of GATA and Gold: The German newspaper The World on Sunday today provides the Bundesbank's excuses for being so slow to repatriate the gold it supposedly has vaulted at the Federal Reserve Bank of New York -- http://www.welt.de/wirtschaft/article123988843/Die-ganze-Wahrheit-ueber-... -- and Zero Hedge promptly tears those excuses to shreds, noting that the current repatriation episode would not be the first time the U.S. government has sought to deceive Germany about its gold: http://www.zerohedge.com/news/2014-01-19/germany-has-recovered-paltry-5-... What is most notable here is that the gold issue has begun seriously troubling the German political establishment and is breaking into the mainstream financial news media, thanks to the determined clamor of gold's friends in Germany. Maybe someday soon the issue will break into the mainstream financial news media in other Western countries. CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT How to profit with silver -- Future Money Trends is offering a special 16-page silver report with our forecast for 2013 that includes profiles of nine companies and technical analysis of their stock performance. Six of the companies have market capitalizations of less than $800 million and one company has a market cap of only $30 million. The most exciting of these companies will begin production in a few weeks and has a market cap of just $150 million. Half of all proceeds from the sale of this report will be donated to the Gold Anti-Trust Action Committee to support its efforts exposing manipulation and fraud in the gold and silver markets. To learn about this report, please visit: http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp... Join GATA here: Vancouver Resource Investment Conference http://www.cambridgehouse.com/event/vancouver-resource-investment-confer... GATA Reception in Vancouver Mines and Money Hong Kong http://www.minesandmoney.com/hongkong/ * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Buy metals at GoldMoney and enjoy international storage GoldMoney was established in 2001 by James and Geoff Turk and safeguards 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 |
| Adam Taggart: A new way to hold gold -- right alongside the bills in your wallet Posted: 19 Jan 2014 10:35 AM PST 10:34a PT Sunday, January 19, 2014 Dear Friend of GATA and Gold: Peak Prosperity's Adam Taggart reports today that technology has produced a way to put gold into regular "paper" currency that can be carried in wallets and pocketbooks right along with ordinary currency -- gold that is fully recoverable by reprocessing the currency note. The gold note, called an Aurum, Taggart writes, "offers similar potential as a coin or bar, in terms of providing a vehicle for storing and exchanging known, dependable increments of precious metals -- just in much smaller (and more affordable) amounts than commercially available to date." Taggart adds: "The big idea here? In a world where a 1-ounce coin of gold costs over $1,200, an Aurum will let you hold a few dollars' worth of gold in a single note. If you've got pocket change, you can be a precious metals owner." This radical democratizing of gold may strike a powerful blow at the old canard that there isn't enough gold in the world to support restoration of a gold standard. Taggart's report is fascinating, is headlined "A New Way to Hold Gold -- Right Alongside the Bills in Your Wallet," and is posted at Peak Prosperity here: http://www.peakprosperity.com/podcast/84359/new-way-hold-gold CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT How to profit with silver -- Future Money Trends is offering a special 16-page silver report with our forecast for 2013 that includes profiles of nine companies and technical analysis of their stock performance. Six of the companies have market capitalizations of less than $800 million and one company has a market cap of only $30 million. The most exciting of these companies will begin production in a few weeks and has a market cap of just $150 million. Half of all proceeds from the sale of this report will be donated to the Gold Anti-Trust Action Committee to support its efforts exposing manipulation and fraud in the gold and silver markets. To learn about this report, please visit: http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp... Join GATA here: Vancouver Resource Investment Conference http://www.cambridgehouse.com/event/vancouver-resource-investment-confer... GATA Reception in Vancouver Mines and Money Hong Kong http://www.minesandmoney.com/hongkong/ * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Buy metals at GoldMoney and enjoy international storage GoldMoney was established in 2001 by James and Geoff Turk and safeguards 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 |
| Koos Jansen: Hong Kong isn't gold's only entry point in China Posted: 19 Jan 2014 10:22 AM PST 10:25a PT Sunday, January 19, 2014 Dear Friend of GATA and Gold: Gold researcher and GATA consultant Koos Jansen today documents how Hong Kong is not gold's only entry point into China and that Chinese gold imports are likely substantially greater than those reported through Hong Kong: http://www.ingoldwetrust.ch/china-not-only-imports-gold-through-hong-kon... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT A Personal Touch in Buying Precious Metals If you've not secured your allocation of precious metals and numismatic coins, 2014 may be the last year to get them at affordable and undervalued prices. With huge amounts of gold leaving the West for Asia, the future availability of precious metals is very much in doubt. All Pro Gold has competitive pricing on all bullion and numismatic products -- and offers prompt delivery too. Long-time GATA supporters Fred Goldstein and Tim Murphy are glad to answer any questions or concerns about acquiring the monetary metals. All Pro Gold has an extensive electronic library of articles from the world's top market analysts. Learn more at www.allprogold.com or write to Fred and Tim at info@allprogold.com or telephone them at 1-855-377-4653. Join GATA here: Vancouver Resource Investment Conference http://www.cambridgehouse.com/event/vancouver-resource-investment-confer... GATA Reception in Vancouver Mines and Money Hong Kong http://www.minesandmoney.com/hongkong/ * * * 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 Jim Sinclair plans seminars in Asheville and Austin Gold advocate and mining entrepreneur Jim Sinclair will hold his next market seminars from 2 to 6 p.m. Saturday, January 25, at the Clarion Inn Asheville, 550 Airport Road, Fletcher, North Carolina, and from 2 to 6 p.m. Saturday, February 8, at the Austin, Texas, Airport Hilton. Advance registration is required. Details for the Asheville seminar are posted at Sinclair's Internet site, JSMineSet.com, here: http://www.jsmineset.com/2014/01/07/north-carolina-qa-session-venue-conf... Details for the Austin seminar are posted at JSMineSet.com here: http://www.jsmineset.com/2014/01/02/austin-texas-qa-session-confirmed/ |
| Posted: 19 Jan 2014 10:05 AM PST Here's another update of our Value Trap series that contrasts the precious metals miners with the biggest value trap of the previous cycle - the financials. Broadly speaking, the comparative looked at how a derivative sector capitulates ... Read More... |
| Noonan on Silver: Wait for Price to Confirm Its Intent – Then Start Stacking! Posted: 19 Jan 2014 09:55 AM PST Do not mess with Mother Nature! The natural law of supply and demand will always rise up from under the So says Michael Noonan (edgetraderplus.com) in edited excerpts from his original article* entitled Silver – The Power Of Thought Will Ultimately Prevail. [The following is presented by Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com and www.munKNEE.com and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.]Noonan goes on to say in further edited excerpts: Silver remains incredibly undervalued, and that bodes well for all of us silver stackers. The fact that silver and gold have purposefully been suppressed by the moneychangers means the…next price rise in silver will be greater than ever. Any time anything has been artificially manipulated, it makes the ultimate outcome far worse than was planned by those doing everything possible to prevent a rise in prices. Central planning always fails. Do not mess with Mother Nature! …Fundamentals have not been reliable indicators in the supply/demand equation that normally determines price yet almost every single article [you read these days] focuses on:
The above information has been presented many times, and in many ways, over the past year yet the price of silver languishes near recent lows. Why? Because people have an appetite for this kind of information. It serves as a crutch to bolster flagging belief that silver and gold will rally any time soon.
From our perspective, we are looking at one of the best opportunities to be buying the Precious Metals in our lifetime. Okay, second best. [Nick Barisheff: "Today's the 2nd-Greatest Opportunity to Buy Gold Since 2002!"] Those who have been buying since $4 and $5, and up, deserve recognition for knowing far better that silver stacking was, and continues to be, the right thing to do. Fundamentals are real. We are not being dismissive of their importance. Instead, we see the perception of their impact as being misplaced, for now. Ultimately, they will prevail, but the greater area of focus of a failed fiat financial system deserves center stage. It is the gross distortion of paper fiat being forced-fed down the throats of the public and sovereign governments, like a goose being prepared to produce foie gras, that virtually guarantees that the price of silver, and that of gold, will rise to appropriate levels that reflect the degree of manipulation over the past few years. For further technical analysis on the future for gold, silver, the XAU and HUI check out: It is hard to imagine that the elites may have miscalculated so badly, but that is a distinct possibility. Perceptions of the elites and their New World Order, as controlled by their central banking system and determined by the Rothschild Formula, “Give me control over a nation’s money, and I care not who makes the laws”, has always been to see them as impregnable. Could it be that their success over the past few hundred years, unopposed, has led them to become susceptible as a consequence of their own arrogance and their own perceived sense in invincibility? We do not know, but it was a thought that was unthinkable in the past recent years…. Who, growing up in America, would have ever thought that it would be China and Russia that could suppress the suppressors? The most coveted prize of the Rothschild formula was to own all the gold, following the dictates of the Golden Rule, and rule they have, but their days may be numbered.
There are always unintended consequences when the laws of nature are misused. The elites never imagined their artificial suppression of the people of the world could ever come back to haunt them. They still maintain a stronghold on the Western world, via the Federal Reserve in America, and the all but failed European Union, as they continue to wreak financial havoc on country after country. Even the stalwart Germany may soon turn its back on the elite's puppet bureaucrats running the show over there….[Given] the rebuke to Germany in refusing to return their own gold, German citizens are tiring of the idea of financially supporting other financially failing Euro countries…Change your beliefs and, in turn, your perception of reality, and stay focused on buying, holding, and not letting go of any acquired silver and gold in the realization that your action of one will help bring about the demise of the New World Order… As we acknowledge in Noonan: The Trend in Gold Remains Down – But For How Long? the COMX-derived charts of the paper derivatives of the actual physical silver market are controlled by the central bankers, but it is all we have. Plus, throughout Silver may be the one to watch for 2014. It is likely to outperform gold because the gold-to-silver ratio is so high, currently just under 62:1. Reversion to the mean, which is nearer to 28:1, strongly supports this idea. This is a fact and not a perception, so there is a higher degree of validity to it. We do not have to know, in advance, nor do we need to anticipate ahead of time, or even make the common, costly mistake of predicting. Just let the market confirm its intent, and then follow along with the proven market direction…
Silver is at an area of indecision within a down trend that has lost momentum. Rather than guess at what may happen, and possibly be wrong in guessing, better to wait for price to confirm its intent, and then take some action in harmony with the developing momentum.
As to the physical, keep on stacking! Let the market take its course, naturally, or with temporary interference, and do not be distracted by purposeful distractions. It is but a matter of time. History is on the side of silver, and the rewards will be well worth the patience. [Editor's Note: The author's views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.]*http://edgetraderplus.com/market-commentaries/silver-the-power-of-thought-will-ultimately-previal Other Related Articles: (The articles posted on munKNEE.com deliberately present a diverse perspective on subjects discussed. Below are links, with introductory paragraphs, to a variety of related articles designed to help you become truly informed regarding both sides of the issues so that you can assess the merits of all points of view and come to your own conclusion.) 1. Nick Barisheff: "Today's the 2nd-Greatest Opportunity to Buy Gold Since 2002!"  Last year…saw gold's greatest decline in 32 years…but I'm still confident that gold's bullish fundamentals are still intact and that what I said in my recently published book, $10,000 Gold, still holds true. Here’s why. Read More » 2. These 10 Charts Suggest the Outlook for Gold Is Good for 2014 and Beyond  Very poor sentiment towards gold and oversold conditions is reminiscent of the conditions seen in late 2008 and January 2009 [as seen in the chart below] when gold prices had fallen by more than 25% in 9 months. Subsequently, gold rose from a low on January 15, 2009 at $802.60/oz to a high less than 12 months later at $1,215/oz for a gain of over 50%. A similar move today would see gold above $1,800/oz by year end. Read More » 3. Gold To Begin a Parabolic Rise In 2014 – Here's Why  We are now starting the hyperinflationary phase in the USA and many other countries – and this will all start in 2014. What will be the trigger? The answer is simple – the fall of the U.S. dollar. Read More » 4. Gold Going to $5,000 & Possibly MUCH More – Here's Why  Longer term, I think gold goes to $5,000 over a number of years. If they continue to print money at the current rate, I think it could be multiples of that. I see a slow steady rise punctuated with some sharp upward moves. Read More » 5. Sustained Rise in Gold Price Likely – Here's Why Many events moved the market this month which are all very bullish for gold. In addition, gold's leading indicator is currently at a major low area all of which strongly reinforce the likelihood of an upcoming sustained rise. Let us explain. Read More » 6. 12 Reasons Why Gold Should Bounce Sharply Higher in 2014  Is it time to throw in the towel? Is the bull market in precious metals really over? I don’t think so because my analyses suggest that nearly all of the fundamental factors that have been driving the gold price higher in the past decade have only strengthened in the past two years. Now that the correction has most likely run its course, I expect gold to rebound into the close of the year and bounce sharply higher in 2014. Here are the 12 reasons why. Read More » 7. A Look At the Great Chinese Gold Rush  China is taking over the world one gold bar at a time. The infographic below shows how, in the space of a few decades, it has developed a huge appetite for the world's physical gold. Read More » 8. China Converting U.S. Dollar Debt Holdings Into Gold At Accelerating Rate  China, Russia and other nations are exiting their dollar-denominated holdings in favor of gold. This action should put pressure on the dollar and U.S. treasuries, p |
| Silver - The Power Of Thought Will Ultimately Previal Posted: 19 Jan 2014 06:52 AM PST It has become universally recognized that the power of thought can change anything. Silver remains incredibly undervalued, and that bodes well for all of us silver stackers. Read More... |
| Major Buy Signal in the Precious Metals Sector in the Next 2 - 3 Weeks Posted: 19 Jan 2014 06:41 AM PST It's been my opinion for the last several weeks that gold formed an intermediate degree bottom on December 31. That being said I'm still a bit nervous that the sector could suffer another manipulation event so I haven't been ... Read More... |
| Silver – The Power Of Thought Will Ultimately Previal Posted: 19 Jan 2014 06:37 AM PST It has become universally recognized that the power of thought can change anything. Silver remains incredibly undervalued, and that bodes well for all of us silver stackers. The fact that silver and gold have purposefully been suppressed by the moneychangers makes the future for the next price rise to be greater than ever. Any time anything has been artificially manipulated, it makes the ultimate outcome far worse than was planned by those doing everything possible to prevent a rise in prices. Central planning always fails.
In our gold article, Disconnect Between Fundamentals And Price. Perception Rules, we addressed the importance of perception. Beliefs are formed from perceptions, and they are not necessarily reality, but just a belief about reality. Change the perception and you change the belief. We keep moving away from discussing fundamentals because the fundamentals have not been reliable indicators in the supply/demand equation that normally determines price. Yet, almost every single article focuses on the record sales of numbers of coins offered to the public, charts showing overwhelmingly favorable statistics that favor higher silver prices, cost factors for mine production, decreasing supply relative to increasing demand. How many times, and in how many ways can the same information be presented over the past year, and yet the price of silver languishes near recent lows? People have an appetite for this kind of information. It serves as a crutch to bolster flagging belief that silver and gold will rally any time soon. From our perspective, we are looking at one of the best opportunities to be buying the Precious Metals, [PM], in our lifetime. Okay, second best. Those who have been buying since $4 and $5, and up, deserve recognition for knowing far better that silver stacking was, and continues to be the right thing to do.
It is hard to imagine that the elites may have miscalculated so badly, but that is a distinct possibility. Perceptions of the elites and their New World Order, as controlled by their central banking system and determined by the Rothschild Formula, [Give me control over a nation's money, and I care not who makes the laws], has always been to see them as impregnable. Could it be that their success over the past few hundred years, unopposed, has led them to become susceptible as a consequence of their own arrogance and their own perceived sense in invincibility? We do not know, but it was a thought that was unthinkable in the past recent years. Thoughts are ideas. They do not exist in physical form, yet they have been proven to manifest themselves into the physical world throughout history. Marconi, Einstein, Gandhi, and so many others transformed a thought that impacted the world. The power of one lives on. Three years ago, the irreverent Max Keiser exhorted people to "crash J P Morgan by buying one silver coin." It has not worked, obviously, but his idea is spot on, and the notion to keep buying silver and gold coins may not overturn the effort of the elites, but it will have a dramatic impact on the individuals who have taken the right steps to buy and hold PMs as the best form of protection against the financial ravages that are sure to result from the miscalculated arrogance of the elites. Who, growing up in America, would have ever thought that it would be China and Russia that could suppress the suppressors? The most coveted prize of the Rothschild formula was to own all the gold, following the dictates of the Golden Rule, and rule they have, but their days may be numbered. There are always unintended consequences when the laws of nature are misused. The elites never imagined their artificial suppression of the people of the world could ever come back to haunt them. They still maintain a stronghold on the Western world, via the Federal Reserve in America, and the all but failed European Union, as they continue to wreak financial havoc on country after country. Even the stalwart Germany may soon turn its back on the elite's puppet bureaucrats running the show over there. Consider: the rebuke to Germany in refusing to return their own gold, German citizens tiring of the idea of financially supporting other financially failing Euro countries, even the not so petty spying on Angela Dorothea Kasner Merkel, German Chancellor and turncoat architect for the elite's formation of the European Union to subjugate Europe's citizenry under one convenient umbrella of control, may have added to the tipping point for potentially turning Germany to the East, where the money and the future financial and energy power is.
There is no hope for Obama. He is controlled by the elites and in control of a badly leaking financial ship that has been damaged by a huge fiat iceberg, as it were. Merkel, on the other hand, has a choice. If she does not change, external events will force the change upon her. The UK will never change. We acknowledge the COMX-derived charts of the paper derivatives of the actual physical silver market are controlled by the central bankers, but it is all we have. Plus, throughout history, there has always been some degree of manipulation over all markets. It is human nature to go against Mother Nature. To the charts… |
| Gold and Silver Major Buy Signal Over the Next 2-3 Weeks Posted: 19 Jan 2014 06:14 AM PST It's been my opinion for the last several weeks that gold formed an intermediate degree bottom on December 31. That being said I'm still a bit nervous that the sector could suffer another manipulation event (like the flash crash two weeks ago) so I haven't been willing to enter a firm long position just yet. However there are definite signs that this bear market is probably over. The large momentum divergences on the weekly charts are one. |
| Silver Price – The Power Of Thought Will Ultimately Previal Posted: 19 Jan 2014 06:07 AM PST It has become universally recognized that the power of thought can change anything. Silver remains incredibly undervalued, and that bodes well for all of us silver stackers. The fact that silver and gold have purposefully been suppressed by the moneychangers makes the future for the next price rise to be greater than ever. Any time anything has been artificially manipulated, it makes the ultimate outcome far worse than was planned by those doing everything possible to prevent a rise in prices. Central planning always fails. |
| Bitcoin, Gold, and the Quantity of Money Posted: 19 Jan 2014 01:40 AM PST This article is reprinted from the latest Journal Of The Gold Standard Institute. The popular view today is based on the linear Quantity Theory of Money. It seems to be common sense. If more units of a currency are issued, then the value of each unit should fall. Many people may not think of it in explicit terms, but the idea is that the value of one unit of a currency is 1/N, where N is the total money supply. If you double the money supply, then you halve the value of each currency unit. Inflation, according to this view, is either the cause—the increase in the money supply itself. Or it's the effect—rising prices. The Keynesians hold that inflation is good, and the Monetarists basically agree, though they quibble that the rate should be limited. The Austrians universally think inflation is bad. The Quantity Theory is not based on reality. One should think of this theory like the Lamarckian theory of evolution. Lamarck asserted that changes to an animal's body—e.g. its tail is cut off—can be passed on to its offspring. At the time, this theory may have seemed only common sense, and it was very convenient, if not tempting. The same is true with the Quantity Theory of Money. It is convenient, seems like common sense, tempting—and wrong. The Fed has been inflicting Quantitative Easing on us for five years. There are many negative effects, but rising prices, today, is at best debatable. Certainly, even where prices have risen, the increase is not nearly proportional to the increase in the money supply. Advocates of the theory explain this by saying that the money hasn't entered the economy, it's sitting on bank balance sheets. However, money is always on bank balance sheets in a debt-based system, so this answer is not satisfying. Enter, bitcoin, a cryptography-based currency and technology developed by someone with the pseudonym Satoshi Nakamoto. It has been designed to have a limited rate of growth in the total quantity of currency, up to a predefined cap. There can never be more than 21M bitcoins. The Quantity Theory says that this will make prices of goods measured in bitcoins stable. One problem with this theory is that the real costs in terms of land, capital, and labor to produce things is steadily falling. Every productive enterprise is constantly seeking to drive cost out of production. If a currency had a constant value, then prices in terms of this currency would be falling. As we shall see below, the value of bitcoin will be anything but constant. Without a mechanism for responding to increased market demand by creating more currency, there is a fatal flaw. In the real world, when prices appear to be stable it is not because anything is static or unmoving. It is because there is constant arbitrage. Arbitrage is the act of straddling a spread. If one thing becomes more valuable relative to something else, then someone will take the arbitrage. For example, if the price of eggs in a city downtown rises relative to the price of eggs in a farm town 50 miles away, then someone will buy eggs in the farm town and sell them in the city. This will lift the price in the farm town and depress the price in the city center, until there is not much of a gap any more. To continue with the analogy on to another point, what happens if the price of eggs in the farm town is higher than the price in the city? This arbitrage is one-way. Distributors can only buy in the farm town and sell in the city; they do not distribute in the other direction. There must be another arbitrage or arbitrages, if the farm-city egg spread is to remains stable. Indeed, there is. If the price of eggs gets cheap in the city, then consumers will prefer eggs to other foods. In the body of a vertebrate, every joint is stabilized by a pair of muscles. Consider the upper arm. The biceps flexes it, and the triceps extends it. Muscles can only push, but not pull. There must be a second, opposing, muscle to move the joint in the opposite direction. This is analogous to arbitrage, as each arbitrage can only pull a spread tighter in one direction, but not push in the other. No market is more important than the markets for money and credit. So what happens when the price of money itself rises? In thinking about this question and the answer, you should not look at the dollar. The dollar is defective by design and does not work the way proper money ought to. The dollar is the product of fiat, not of a market. Everything about it is driven by forced wielded by the government. It is more instructive to consider gold. Gold is produced by gold miners. They buy labor, oil, truck tires, machine parts, and they sell gold. As we saw above, they bid up these inputs and gold metal onto the market. The gap between the value of gold and the value of this broad swath across the major factors in the real economy is thus closed by the arbitrage of gold mining companies. This keeps the value of gold from becoming too high, or in other words allows gold to be produced in response to market demand. What happens if market demand for gold drops? One reaction is that the jeweler and the artisan increase their activities. They tend to bid up gold metal, and sell jewelry and objets d'art onto the market. There is another kind of arbitrage, which is outside the scope of this article4 but it's worth mentioning. If the demand for gold metal drops, then the owners of gold, otherwise known as savers, can lend gold for interest. This tends to press down the bid on the rate of interest. Now consider bitcoin. Bitcoin is not a fiat currency. No government forces anyone in any way to use it. However, bitcoin is irredeemable. That is, there is no agreement by anyone to redeem bitcoin in exchange for a defined quantity of gold, silver, or any real good. With its fixed quantity, there are no arbitrages regarding the value of bitcoin. So what does this mean? What will happen? The value of bitcoin will be set entirely by speculators. In gold, there are numerous forces in reality—i.e. numerous arbitrages—that will keep the value of gold tied to the values of every other thing in the economic universe. The value of gold in a free market is the exact opposite of untethered and arbitrary. The value of gold cannot crash and it cannot shoot the moon. Satoshi Nakamoto ignored these forces, and his design does not provide for them. The value of bitcoin is not tethered by the value of labor and capital. It was assumed to be sufficient that its quantity is fixed. It is the exact opposite of sufficient—a fatal flaw based on the Quantity Theory of Money, which is flawed to its core. The speculators will use bitcoin as a toy to generate profits (as they already do). When the value of bitcoin is rising, it will be obvious. Everyone has a chart, and they can pile on. The value can rise much farther than anyone would expect. Eventually, the chart will show a topping pattern. Momentum will dry up. The speculators can see this too, and thus will begin a collapsing wave of bitcoin.
To understand this, let's ask the following question. If you take two bushels of corn and feed it to raise one chicken from egg to market, did you create or destroy wealth? Which has greater value, two bushels or one chicken? To answer, we use the common denominator of money. If Two bushels cost ½ ounce of silver and a chicken is 2 ounces of silver, then feeding the corn to the chick creates value. Simple cases like this can be (and were, in the ancient world) resolved without money. Complex cases cannot be. If you borrow money to buy land, erect a building, buy machines and inventory, then hire people to manufacture computer chips, did you create or destroy wealth? This question cannot be answered without a stable unit of measure. It would not have been possible to answer it in the ancient world. Businesses keep books to measure profit and loss. The very principle of bookkeeping depends on a constant value of the unit of account, the numeraire. When the value of the numeraire spikes and crashes, then business which produce wealth go can bankrupt. At the same time others, which destroy wealth, can grow larger, employing more people and more capital to scale up their wealth-destroying activities. This is occurring today on a massive scale. Bitcoin may make a great speculation today, because its unique combination of technologies enables many transactions that would otherwise be impossible (due to government fiat). If you live in a country that does not recognize your right to freedom of speech, you can trade your local currency for bitcoin, pay WordPress, and have your blog hosted safely outside your regime. There are many other kinds of legitimate transactions that are made possible by bitcoin. Bitcoin would not work as the exclusive currency. Its unstable value is not suited to being used as the numeraire. For the same reason, it is not suitable for hoarding by wage earners. As I explain in In a Gold Standard, How are Interest Rates Set? it is the arbitrage between hoarding and saving (i.e. lending) that sets the floor under the rate of interest. If bitcoin is unsuitable for hoarding, then either it will not develop a lending market, or the lending market will not have a stable interest rate. A destabilized interest rate is the root cause of the ongoing global financial crisis. Bitcoin works well as a foil to fiat currencies. It makes it possible for people to conduct business that would otherwise be impossible. If enough people participate, then it becomes more difficult and more unpopular for governments to act to squelch those activities. It's a pointed object lesson, showing people what is possible in a less-unfree market. Hopefully it will motivate them to clamor for more freedom.
About the author: Dr. Keith Weiner Dr. Keith Weiner is the president of the Gold Standard Institute USA, and CEO of Monetary Metals where he write on the basis and related topics. Keith is a leading authority in the areas of gold, money, and credit and has made important contributions to the development of trading techniques founded upon the analysis of bid-ask spreads. Keith is a sought after speaker and regularly writes on economics. He is an Objectivist, and has his PhD from the New Austrian School of Economics. He lives with his wife near Phoenix, Arizona. |
| A Glimpse into the Coming Collapse Posted: 19 Jan 2014 12:55 AM PST Beginning in 1999, we predicted a systemic economic collapse that would take place in the First World and would impact all other economies. We began to list some of the “dominoes” that would fall as the collapse evolved and described that the “Great Unravelling,” as we termed it, would take roughly ten years. At that time, we guesstimated that the first two of the dominoes, a real estate crash and subsequent stock market crash in the US, would begin in about 2005. We were premature in this prediction, as the first of the crashes did not occur until 2007. And, truth be told, we have frequently been incorrect in the timing of the other dominoes. Whilst the actual events have been predicted correctly, our timing has often been incorrect. In every such case, the prediction has been premature. Sadly, however, the prediction of the events of the collapse have been almost entirely correct. We also predicted that, just as a ball of string speeds up its rotation as it rolls along unravelling, so, too, the events of the Great Unravelling would occur more quickly as the situation worsened. Additionally, the severity of the events would increase concurrently with the increase in velocity. However, none of the above was the result of gypsy fortune-telling, nor did it require the brightest of minds to work out. It is mostly based on the simple assumption that history repeats itself—that the world’s leaders make the same mistakes in every era, because human nature never changes. Anyone who is willing to expend the effort to study history diligently and to be prepared to think in contrarian terms, may develop a meaningful insight into the events of the future. Back in 1999, of course, the very idea that the world was headed for serious economic calamity was considered ridiculous by most. The unfortunate fact is, most people do truly deal in the present, rarely questioning the future beyond what they consider to be the very next event. The truth of this statement is borne out by the fact that the great majority of people, who have already seen the first half of the Great Unravelling come to pass, still somehow cannot imagine the second half—the more disastrous half—as being in any way possible. Surely, somehow, the governments of the world will fix things. However, the number of people whose eyes have been opened seems to be growing, and many of them are asking what the collapse will look like as it unfolds. What will the symptoms be? Well, the primary events are fairly predictable: they would include major collapses in the bond and stock markets and possible sudden deflation (primarily of assets), followed by dramatic inflation, if not hyperinflation (primarily of commodities), followed by a crash of several major currencies, particularly the euro and the US dollar. The secondary events will be less certain, but likely: increased unemployment, currency controls, protective tariffs, severe depression, etc. But, along the way, there will be numerous surprises—actions taken by governments that may be as unprecedented as they would be unlawful. Why? Because, again, such actions are the norm when a government finds itself losing its grip over the people it perceives as its minions. Here are a few:
The above list is purposely brief—a sampling of eventualities that, should they occur, will almost definitely come unannounced. As the decline unfolds, they will surely happen with greater frequency. But the value in projecting what the collapsing governments may do to their citizens is not merely an exercise in speculation. By anticipating the likelihood of any of the above, the individual may find that it would be prudent to turn off the game on television tonight and spend his time musing on the possibility of what he would do if any of the above events were to take place. (And, again, these projections are not mere fancy; they are actions typically taken by governments as their declines play out.) Most importantly, if the reader concludes that there is a significant percentage of likelihood that any of the above are coming his way, he would be well-advised to assess whether they are developments that he feels he could live with. If not, he might wish to assess how much time he has before these events become a reality and what he may do to sidestep their impact on him. Whilst, throughout the First World, the comment, “The whole world is going to Hell,” is becoming common, in fact, this is not the case. Although some countries are in decline, others are on the rise. It is left to the reader to decide whether he will fall victim to coming events, or will use them as an opportunity to internationalise himself. Editor's Note: You can find Casey Research's A-Z guide on internationalization here. |
| BNN allows a warning about Comex's paper gold Posted: 18 Jan 2014 11:40 PM PST 11:39p PT Saturday, January 18, 2014 Dear Friend of GATA and Gold: Canada's Business News Network on Friday permitted Tres Knippa of Kenai Capital Management in Chicago to warn about the likely inability of the New York Commodities Exchange to deliver anything but a tiny fraction of the gold supposedly behind the pending contracts sold there, as well as about Germany's seeming inability to recover its gold from the Federal Reserve Bank of New York. The segment is seven minutes long and can be seen at the BNN archive here: http://www.bnn.ca/News/2014/1/17/Buy-physical-gold-and-avoid-paper-CME-T... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Buy metals at GoldMoney and enjoy international storage GoldMoney was established in 2001 by James and Geoff Turk and is safeguarding more than $1.7 billion in metals and currencies. Buy gold, silver, platinum, and palladium from GoldMoney over the Internet and store them in vaults in Canada, Hong Kong, Singapore, Switzerland, and the United Kingdom, taking advantage of GoldMoney's low storage rates, among the most competitive in the industry. GoldMoney also offers delivery of 100-gram and 1-kilogram gold bars and 1-kilogram silver bars. To learn more, please visit: http://www.goldmoney.com/?gmrefcode=gata Join GATA here: Vancouver Resource Investment Conference http://www.cambridgehouse.com/event/vancouver-resource-investment-confer... GATA Reception in Vancouver Mines and Money Hong Kong http://www.minesandmoney.com/hongkong/ * * * 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 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 will reign as currencies, stocks and bonds collapse. Posted: 18 Jan 2014 11:30 PM PST Matterhorn AM |
| Why the West sells gold and China buys it Posted: 18 Jan 2014 11:00 PM PST Finance and Eco. |
| Truth about gold market rigging will trigger price recovery, Sprott says Posted: 18 Jan 2014 10:49 PM PST 10:50p PT Saturday, January 18, 2014 Dear Friend of GATA and Gold: Disclosure of the truth about gold market rigging is likely this year and will trigger a quick recovery in the gold price, Sprott Asset Management's Eric Sprott tells King World News: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/1/18_Bi... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT How to profit with silver -- Future Money Trends is offering a special 16-page silver report with our forecast for 2013 that includes profiles of nine companies and technical analysis of their stock performance. Six of the companies have market capitalizations of less than $800 million and one company has a market cap of only $30 million. The most exciting of these companies will begin production in a few weeks and has a market cap of just $150 million. Half of all proceeds from the sale of this report will be donated to the Gold Anti-Trust Action Committee to support its efforts exposing manipulation and fraud in the gold and silver markets. To learn about this report, please visit: http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp... Join GATA here: Vancouver Resource Investment Conference http://www.cambridgehouse.com/event/vancouver-resource-investment-confer... GATA Reception in Vancouver Mines and Money Hong Kong http://www.minesandmoney.com/hongkong/ * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Buy metals at GoldMoney and enjoy international storage GoldMoney was established in 2001 by James and Geoff Turk and safeguards more than $1.7 billion in metals and currencies. Buy gold, silver, platinum, and palladium from GoldMoney over the Internet and store them in vaults in Canada, Hong Kong, Singapore, Switzerland, and the United Kingdom, taking advantage of GoldMoney's low storage rates, among the most competitive in the industry. GoldMoney also offers delivery of 100-gram and 1-kilogram gold bars and 1-kilogram silver bars. To learn more, please visit: http://www.goldmoney.com/?gmrefcode=gata |
| Is Gold Still In A Downtrend? Yes – and No – Depending On How You Look At It Posted: 18 Jan 2014 09:38 PM PST Is Gold still in a downtrend or has it actually broken its downtrend? Both as it turns out, but only if viewed from So says Tom McClellan (mcoscillator.com) in edited excerpts from his original article entitled Gold Breaks Downtrend, Sort Of. [The following is presented by Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com and www.munKNEE.com and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.]McClellan goes on to say in further edited excerpts: The price plot of gold as priced in dollars is still below the declining tops line which dates back to late August 2013 but the same line drawn on the plot of gold priced in euros has already been broken.
Such disagreement can appear in a few different forms, but the two I pay most attention to are (1) divergences, and (2) different trend line behavior. It is the second category which is of interest now. Gold prices have just started the process of building a pattern of higher highs and higher lows to define an uptrend but we already have a broken downtrend line on the plot of gold priced in euros. A couple of other examples of trend lines on each plot are shown in this week's chart, and you can see that in each case, the euro price plot broke its downtrend line ahead of the equivalent line being broken on the dollar price. Indeed, the leftmost example did not even see the dollar price break its trend line, although there was nevertheless a pop upward after the euro price broke its downtrend. Conclusion The short answer is that the euro price of gold has nearly always proven to be "right" when there is such a disagreement between the two plots so I expect that to be the case again this time. [Editor's Note: The author's views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.]*http://www.mcoscillator.com/learning_center/weekly_chart/gold_breaks_downtrend_sort_of1/ (Copyright © 1996-2013 McClellan Financial Publications. All Rights Reserved.) Related Articles: (The articles posted on munKNEE.com deliberately present a diverse perspective on subjects discussed. Below are links, with introductory paragraphs, to a variety of related articles designed to help you become truly informed regarding both sides of the issues so that you can assess the merits of all points of view and come to your own conclusion.)1. These 10 Charts Suggest the Outlook for Gold Is Good for 2014 and Beyond Very poor sentiment towards gold and oversold conditions is reminiscent of the conditions seen in late 2008 and January 2009 [as seen in the chart below] when gold prices had fallen by more than 25% in 9 months. Subsequently, gold rose from a low on January 15, 2009 at $802.60/oz to a high less than 12 months later at $1,215/oz for a gain of over 50%. A similar move today would see gold above $1,800/oz by year end. Read More » 2. Gold & Silver to Plunge – Again – Then Move Up Dramatically Later in 2014  Back in early May, 2013, I correctly forecast the lows in gold & silver which occurred 2 months later. Today, my new analyses of gold & silver indicates they both will show further weakness during the first quarter of 2014 before both jumping dramatically in price before the end of 2014. Below are the specific details of my forecasts (with charts) to help you reap substantial financial rewards should you wish to avail yourself of my insightful analyses. Read More » 3. Nick Barisheff: "Today's the 2nd-Greatest Opportunity to Buy Gold Since 2002!" Last year…saw gold's greatest decline in 32 years…but I'm still confident that gold's bullish fundamentals are still intact and that what I said in my recently published book, $10,000 Gold, still holds true. Here's why. Read More » 4. Noonan: Charts Suggest Lower Lows for Gold & Silver to Come in 2014  Because the natural laws of supply and demand do not apply to gold and silver, the only way we can track the influence of endless paper supply on the market is through the most reliable source, the market itself, and the best way to track the market is through charts.Let's take a look at what they are conveying today. Read More » 5. Gold In 2014: Price Forecasts ($900 – $1,435) & Commentary Below are a series of forecasts and predictions of what 2014 could bring for the price of gold (as low as $900/ozt. & no higher than $1,435/ozt.) and the reasons why with interesting commentary by some individual investors and gold enthusiasts. Read More » 6. Gold To Begin a Parabolic Rise In 2014 – Here's Why We are now starting the hyperinflationary phase in the USA and many other countries – and this will all start in 2014. What will be the trigger? The answer is simple – the fall of the U.S. dollar. Read More » 7. 12 Reasons Why Gold Should Bounce Sharply Higher in 2014 Is it time to throw in the towel? Is the bull market in precious metals really over? I don't think so because my analyses suggest that nearly all of the fundamental factors that have been driving the gold price higher in the past decade have only strengthened in the past two years. Now that the correction has most likely run its course, I expect gold to rebound into the close of the year and bounce sharply higher in 2014. Here are the 12 reasons why. Read More » 8. Growth In National Debt Is 86% Correlated to the Price of Gold! Got Gold? The correlation between the gold price, silver price and the debt growth has been amazingly accurate since 2001. Government spends too much money to perform a few essential services and to buy votes, wars, and welfare, and thereby increases its debt almost every year, while gold and silver prices, on average, match the increases in accumulated national debt. Read More »
The post Is Gold Still In A Downtrend? Yes – and No – Depending On How You Look At It appeared first on munKNEE dot.com. |
| Central Banks, Gold & the Currency Market, Part I Posted: 18 Jan 2014 05:18 PM PST Bullion Vault |
| Billionaire Eric Sprott - This Will Stun The Gold World In 2014 Posted: 18 Jan 2014 04:12 PM PST  In a continuation of one of his most important and powerful interviews, today billionaire Eric Sprott spoke with King World News about what is going to stun the gold world in 2014. The Canadian billionaire also discussed Deutsche Bank quitting the LBMA London gold fix. Below is what Sprott, Chairman of Sprott Asset Management, had to say in Part II of this remarkable interview series.This posting includes an audio/video/photo media file: Download Now |
| China is taking control of the gold market away from the LBMA, Maguire says Posted: 18 Jan 2014 02:25 PM PST 2:23p PT Friday, January 17, 2014 Dear Friend of GATA and Gold: In an excerpt from his latest interview with King World News, London metals trader Andrew Maguire explains a telling detail of how China is taking control of the gold market away from the London Bullion Market Association: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/1/18_Ma... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT How to profit with silver -- Future Money Trends is offering a special 16-page silver report with our forecast for 2013 that includes profiles of nine companies and technical analysis of their stock performance. Six of the companies have market capitalizations of less than $800 million and one company has a market cap of only $30 million. The most exciting of these companies will begin production in a few weeks and has a market cap of just $150 million. Half of all proceeds from the sale of this report will be donated to the Gold Anti-Trust Action Committee to support its efforts exposing manipulation and fraud in the gold and silver markets. To learn about this report, please visit: http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp... Join GATA here: Vancouver Resource Investment Conference http://www.cambridgehouse.com/event/vancouver-resource-investment-confer... GATA Reception in Vancouver Mines and Money Hong Kong http://www.minesandmoney.com/hongkong/ * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Buy metals at GoldMoney and enjoy international storage GoldMoney was established in 2001 by James and Geoff Turk and safeguards 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 |
| MAJOR BUY SIGNAL IN THE PRECIOUS METALS SECTOR IN THE NEXT 2-3 WEEKS Posted: 18 Jan 2014 01:03 PM PST It's been my opinion for the last several weeks that gold formed an intermediate degree bottom on December 31. That being said I'm still a bit nervous that the sector could suffer another manipulation event (like the flash crash two weeks ago) so I haven't been willing to enter a firm long position just yet. However there are definite signs that this bear market is probably over. The large momentum divergences on the weekly charts are one.  The heavy volume flowing into the ultra mining ETF is another sign that smart money is positioning for a major bear market bottom.  Presently I'm waiting to see if gold can break through the intermediate downtrend line and make a higher high above the previous daily cycle top. This would confirm the intermediate bottom. Coincidentally this is roughly the same number in both cases. Gold will need to move above $1268.  I would caution that a move above $1268 probably isn't a timely entry into the sector however. As gold is going to be moving into the latter part of its daily cycle timing band by the end of next week, a better strategy would most likely be to allow gold to bounce off of the 150 day moving average and then retest the $1250 level from above at the next daily cycle low.  So I think a little patience is warranted over the next two weeks. Allow gold to confirm the intermediate degree bottom. If it does, then prepare to buy aggressively at the next short-term pullback.       |
| Bitcoin Is The Financial Smelling Salts For Humanity – By Jason Liosatos Posted: 18 Jan 2014 12:30 PM PST Bitcoin is fast becoming a major contributor to the awakening of human beings, shaking us from our deeply seated conditioning and indoctrination that the paper, gold, silver, and metal currencies are our only choice. Bitcoin is reminding people that they have been forced into a financial system... [[ 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! ]]  |
| Maguire - China Moves To Crush The West In The Gold Market Posted: 18 Jan 2014 11:12 AM PST  London metals trader Andrew Maguire told King World News that in the gold war, China has just struck a major blow to the West and their LBMA paper Ponzi scheme. He also spoke about what is going on behind the scenes in the war on gold. Below is what Maguire said in Part III of his powerful interview.This posting includes an audio/video/photo media file: Download Now |
Shanghai Daily: “China may soon announce an increase in its official gold reserve from 1,054 tons to 2,710 tons, Jeffrey Nichols, managing director of American Precious Metals Advisors, said. The People's Bank of China has not reported any increase in official gold holdings since 2009, when the central bank said the official reserve was at 1,054 tons, which accounted for only about 1 percent of its multi-trillion foreign exchange reserves. The PBOC has been "surreptitiously" adding to its official gold reserves. It has bought a total of 654 tons in 2009 through 2011, another 388 tons in 2012, and more than 622 tons last year, mostly from domestic mine production and secondary supplies, Nichols said in a commentary posted on NicholsOnGold.com yesterday. Central bank purchases comprise the smallest fraction of global gold demand — less than 10 percent. "If China announces an increase in gold reserves, there would be an immediate drag-up force in the gold market," Albert Cheng, managing director of the industrial association World Gold Council for the Far East, told Shanghai Daily. China is the biggest gold consumer and producer in the world.”
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