Gold World News Flash |
- In The News Today
- Jim’s Mailbox
- Why Does It Even Matter?
- Further short term volatility for gold expected
- Reasons to view Colombia as an exploration play
- Gold prices currently in the heart of overhead resistance
- SNB expects $10bn loss for 2013 as gold price plummets
- Can’t-miss headlines: Gold shrugs off ‘flash crash’, OceanaGold hedges & more
- World stocks fall on China, U.S. services data; gold gains
- Precious Metals Intervention In The Extreme - Let's Call It What It Is
- Precious Metals Intervention In The Extreme - Let's Call It What It Is
- Why is Gold Trading So Low During Balance Sheet Expansion?
- Silver Update Sovereign Immunity
- U.S. Dollar Crisis Inflation Hammer 2014
- The First Bankable Energy Trend of 2014
- Gold Price Drops 1.2% as Stocks, Dollar Jump on 4-Year Low in US Trade Deficit
- Chinese FX expert says gold is a currency that China must dominate
- The Crypto Wars With Freedom Of Speech And Freedom Of Transaction
- Gold 2013: Why Private Investment Kept Spreading
- Gold 2013: Why Private Investment Kept Spreading
- Richard Russell: Is U.S. avoiding gold revaluation because it has lost its gold?
- Gold, Silver and Stock Market 2014 Trend Change Due
- Bitcoin 2014 Bubble Collapse or Dollar Alternative?
- Gold Price Has Bottomed
- Mike Kosares: IRA rollover season -- a time to reap and a time to sow
- Bill Holter: All the questions have the same answer -- Germany's gold is gone
- The Gold Price Lost 60 Cents Closing at $1,237
- The Gold Price Lost 60 Cents Closing at $1,237
- Richard Russell's Dow Theory Letters takes note of GATA's work
- MarketWatch reports suspicions of gold market manipulation
- Bitcoin’s Prospects for 2014
- Gold Stocks: What to Expect in the New Year
- Infographic: The Wonderful Uses Of Silver
- Gold Repricing of 1933 Was Just A Debt Default
- Silver, Gold and S&P: A Trend Change Is Due
- Ben Shalom Beranke Fiddles In Front Of Congress, Under Oath
- Ben Shalom Beranke Fiddles In Front Of Congress, Under Oath
- Gold Prices Stabilize but Downside Momentum Remains a Risk
- Beware of mainstream propaganda as turning point nears, Embry warns
- Gold Daily and Silver Weekly Charts - Non-Farm Payrolls For December Later This Week
- Gold Daily and Silver Weekly Charts - Non-Farm Payrolls For December Later This Week
- What is a Precious Metals Dealer Anyway?
- What is a Precious Metals Dealer Anyway?
- What is a Precious Metals Dealer Anyway?
- Embry - This Is Going To Be An Epic Collapse & Final Battle
- At Last! Back to Abnormal
- At Last! Back to Abnormal
- Playing Volatility in Silver Mining Stocks
- Playing Volatility in Silver Mining Stocks
- In The News Today
| Posted: 07 Jan 2014 09:24 AM PST Jim Sinclair’s Commentary Each step forward for the Yuan is a step backward for the Dollar. China announces new private banks January 7, 2014, 7:18 am China has given the go-ahead to set up three to five private banks as part of a pilot scheme this year in a bid to further open up... Read more » The post In The News Today appeared first on Jim Sinclair's Mineset. |
| Posted: 07 Jan 2014 09:20 AM PST Jim, Distrust of the quality of Gold bars held by Central Banks? Below is Mr. Schall's inquiry to the Deutsche Bundesbank. Say it ain’t so Joe! CIGA Wolfgang Rech Is Germany’s Gold Housed in New York, Paris and London All Gone? Submitted by smartknowledgeu on 01/07/2014 02:19 -0500 foreward by JS Kim, Managing Director of... Read more » The post Jim’s Mailbox appeared first on Jim Sinclair's Mineset. |
| Posted: 07 Jan 2014 08:53 AM PST by Bill Holter, Miles Franklin:
Let me take you back to where this all started and to how we got here in the first place. It used to be (before the Federal Reserve was created) that banks could issue "currency" based on how much gold they had to back it. Then the Federal Reserve came along and played the same game, they issued dollars based on how many ounces they had stored. 1934 came along and the Fed couldn't issue any more dollars because they didn't have enough gold… no problem, just change the "value" of gold from $20 per ounce to $35 and money supply could be expanded by 75%. |
| Further short term volatility for gold expected Posted: 07 Jan 2014 08:51 AM PST Despite yesterday's mini crash, gold is up firmly from its late December lows, but volatility is the name of the game. |
| Reasons to view Colombia as an exploration play Posted: 07 Jan 2014 08:51 AM PST Paul Harris, sees a lot of untapped value in Colombia that has been pummeled by the market but is poised to benefit from a more accommodating political climate and rising gold prices. An interview with The Gold Report. |
| Gold prices currently in the heart of overhead resistance Posted: 07 Jan 2014 08:51 AM PST According to Julian Phillips, there are supply and demand tides that are maturing that will dictate the direction of both the gold and silver prices. |
| SNB expects $10bn loss for 2013 as gold price plummets Posted: 07 Jan 2014 08:51 AM PST The 30% fall in the gold price in Swiss franc terms resulted in a 15 billion-franc valuation loss for the SNB in 2013. |
| Can’t-miss headlines: Gold shrugs off ‘flash crash’, OceanaGold hedges & more Posted: 07 Jan 2014 08:51 AM PST The latest morning headlines, top junior developments and metal price movements. Today gold moves sideways as OceanaGold makes a significant addition to its hedge book. |
| World stocks fall on China, U.S. services data; gold gains Posted: 07 Jan 2014 08:51 AM PST Gold climbed for the third session as U.S. Treasuries prices rose after U.S. data raised the question of further tapering by the Fed. |
| Precious Metals Intervention In The Extreme - Let's Call It What It Is Posted: 07 Jan 2014 08:18 AM PST Anyone who calls what is happening a "flash crash" or hedges on their assertion of "possible" direct intervention is either completely ignorant of the facts or they write their commentary in fear of public ridicule and doubt from other intellectual hedgers. It is what it is: a nuclear currency war rooted in the historical intervention of the gold market by the Federal Reserve and the U.S. Treasury. In the last two days, 26+ tonnes was delivered on the Shanghai Gold Exchange. The enormous physical off-take in China is a freight train w/out brakes. From Standard Bank: "In the physical market we are witnessing strong demand. Since the start of 2014, the SGE premium has jumped higher, reaching $18/oz this morning. The buying frenzy in especially China comes on the back of the seasonal demand pick-up ahead of the country's New Year, which starts on 31 January…More broadly we have also noted an improvement in Asia demand for gold since mid-December. This is evident in the pickup of our Standard Bank Gold Physical Flow Index"The manipulation in the gold market is getting worse by the day as the demand for physical gold from the eastern hemisphere begins to accelerate. It looks like the western Central Banks and their bullion bank market agents are going to work on silver with more focus. SLV is starting to see physical drawdowns, as is the Comex. The capping in silver is beyond blatant. Turkey imported a record amount of silver last year, as did India.. India's demand for silver is the substitution of the gold that was cut off by the U.S. Government-induced Indian import controls. Make no mistake about it. In the face of China's moves to move away from the U.S. dollar and bolster their own currency with an historically epochal program of systemic physical gold accumulation, the U.S Government and the Fed are waging a nuclear currency war with a war on the physical gold market at its nexus. Anyone who asserts that it is any less than that is a complete coward. |
| Precious Metals Intervention In The Extreme - Let's Call It What It Is Posted: 07 Jan 2014 08:18 AM PST Anyone who calls what is happening a "flash crash" or hedges on their assertion of "possible" direct intervention is either completely ignorant of the facts or they write their commentary in fear of public ridicule and doubt from other intellectual hedgers. It is what it is: a nuclear currency war rooted in the historical intervention of the gold market by the Federal Reserve and the U.S. Treasury. In the last two days, 26+ tonnes was delivered on the Shanghai Gold Exchange. The enormous physical off-take in China is a freight train w/out brakes. From Standard Bank: "In the physical market we are witnessing strong demand. Since the start of 2014, the SGE premium has jumped higher, reaching $18/oz this morning. The buying frenzy in especially China comes on the back of the seasonal demand pick-up ahead of the country's New Year, which starts on 31 January…More broadly we have also noted an improvement in Asia demand for gold since mid-December. This is evident in the pickup of our Standard Bank Gold Physical Flow Index"The manipulation in the gold market is getting worse by the day as the demand for physical gold from the eastern hemisphere begins to accelerate. It looks like the western Central Banks and their bullion bank market agents are going to work on silver with more focus. SLV is starting to see physical drawdowns, as is the Comex. The capping in silver is beyond blatant. Turkey imported a record amount of silver last year, as did India.. India's demand for silver is the substitution of the gold that was cut off by the U.S. Government-induced Indian import controls. Make no mistake about it. In the face of China's moves to move away from the U.S. dollar and bolster their own currency with an historically epochal program of systemic physical gold accumulation, the U.S Government and the Fed are waging a nuclear currency war with a war on the physical gold market at its nexus. Anyone who asserts that it is any less than that is a complete coward. |
| Why is Gold Trading So Low During Balance Sheet Expansion? Posted: 07 Jan 2014 07:55 AM PST Collectively, the world’s Central Banks have put more than $10 trillion into the financial system since 2008. To put that number into perspective, it’s equal to roughly 15% of global GDP.
Despite this rampant money printing, the price of Gold has in fact fallen against every major world currency since 2011.
In a time in which every major central bank is expanding its balance sheet through money printing, Gold has fallen against every major currency.
Indeed, in the US, the Federal Reserve is now expanding its balance sheet at a pace of nearly $1 trillion per year. The Fed balance sheet is already at $3.8 trillion and will likely surpass $4 trillion in early 2014.
Any yet, the price of Gold, denominated in US Dollars is lower today than it was when back in early 2011, when the Fed’s balance sheet was just $2.4 trillion.
Does this make sense? Gold falling in value at a time when balance sheets expanded by multiple TRILLION dollars?
Make no mistake, gold is not dead. Not by any means. The day is coming when its price will soar again.
For a FREE Special Report on a uniquely profitable inflation hedge, swing by…. http://phoenixcapitalmarketing.com/goldmountain.html
Best Regards Graham Summers
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| Silver Update Sovereign Immunity Posted: 07 Jan 2014 07:45 AM PST from BrotherJohnF: |
| U.S. Dollar Crisis Inflation Hammer 2014 Posted: 07 Jan 2014 07:12 AM PST Economist John Williams thinks 2014 will mark the beginning of hyperinflation. Williams contends, “You are going to see, early on, a crisis in the dollar that will start to trigger the inflation . . . as the inflation picks up, that’s going to savage the economy, which is already in a depression. It never recovered.” Forget what you have heard about the so-called recovery. Williams says, “The consumer is in trouble. There is nothing happening to turn the economy around.” The weak economy is bad news for the dollar. According to Williams, “Anything that would suggest deficit deterioration here, and a weak economy would do that, will have a devastating impact on the dollar.” And if foreigners start selling some of the 12 trillion U.S. dollar based assets, such as bonds and currency, things will turn ugly fast. Williams says, “We’re dependent on the rest of the world continuing to go along with us and continue to support the dollar. |
| The First Bankable Energy Trend of 2014 Posted: 07 Jan 2014 06:00 AM PST At the risk of sounding crazy, I'd like to let you in on a little New Year's resolution. In short, I want to "listen" to our favorite price charts a lot more this year. You see, if you listen long enough the charts will talk to you. Whether it's gold, silver, oil or gas, when a price chart starts talking – especially for these big name commodities – you've got to listen (our investments depend on it!) To start the year off, I pointed an ear to one of my favorite charts. It wasn't long before it started to talk… So far 2014 hasn't been good to crude oil. The price of the commodity is down over 5% in the first 5 days of 2014. Indeed, this may seem to fall in line with the fundamentals. That is, with more oil and gas production in the U.S. I expect prices to feel a little pressure. So far, though, that pressure hasn't been able to push prices below the $90 threshold. Ah, but what's the chart saying?
Even with the recent blip of a downturn, crude's long-term chart is pointing to a leg higher for the black goo. Looking at the chart above you'll see a defined uptrend/channel over the past 18 months. Thus, if we listen to what this chart says, it may be wise to expect a leg higher for crude oil in the coming months. The important thing to watch over the coming days is price action on the low end of that channel. If prices can stay above $93 or so, that uptrend will remain intact. Without a breakthrough of that downside support, we'll continue to see oil trend higher. In 2014 this trend could be our friend! At the same time this trend started to emerge – a few of our favorite U.S. oil plays went on sale! Over the past couple of months Pioneer Natural Resources (PXD), Oasis Petroleum (OAS) and EOG Resources (EOG) felt a general downdraft in share price. Shares are down 13%, 15% and 7% respectively. With stable-to-higher oil price potential for 2014, combined with a recent boost in natural gas prices (many oil shale plays also produce a lot of natural gas as a byproduct), it could be a good time to snatch a few shares of these proven producers. Keep your boots muddy, Matt Insley P.S. If oil prices can hold above $93, or so, in the near-term we could be looking at a continuation of oil's latest emerging uptrend. This could put an end to downside pressure and add some cash to the balance sheets of our favorite U.S. producers. To get updates on this ongoing story before anyone else, sign up for my FREE Daily Resource Hunter email edition. You’ll get a daily rundown of the resource and energy markets as well as several chances to discover real, actionable investment plays. So don’t wait. Sign up for FREE, right here. You’re next issue is just a few hours away. |
| Gold Price Drops 1.2% as Stocks, Dollar Jump on 4-Year Low in US Trade Deficit Posted: 07 Jan 2014 05:42 AM PST GOLD PRICE gains of $10 per ounce overnight were reversed in London trade Tuesday lunchtime, with the metal then falling to 3-session lows as the Dollar rose following much stronger than expected US data. The gold price dropped to a $1225 per ounce, losing 1.2% for the day, after new figures showed the US trade deficit shrinking to a 4-year low of $34 billion in November. US stock markets rose with the Dollar, taking the S&P500 within 0.5% of its record-high close at 1848 on New Year's Eve last week. Treasury bonds were little moved. "Equities look poised to continue outpacing the yellow metal in the years ahead," reckon Citigroup research analysts in a chart measuring the S&P in terms of the gold price. "There still appears to be a fair amount of room for the recent relative price pattern to continue," they conclude, citing previous instances over the last 80 years when the ratio of US equities to gold prices rallied from a significant low. Gold price premiums above international benchmarks had earlier risen from $16 to $18 per ounce Tuesday morning in Shanghai, as brisk trade ahead of the Chinese New Year helped world prices hold near $1240. The Shanghai gold price reached a $30 premium in mid-summer 2013, after the metal first slumped to the $1180s level seen again last week on New Year's Eve. "Gold now has a fairly decent double bottom around $1185," said one London trading desk in a technical note on price this morning, "so that should be good medium term support." "Silver could [also] be forming a double bottom pattern," says price analysis from French investment and London bullion bank Societe Generale, pointing to December's two lows at $18.85. For the gold price, counters Commerzbank's Axel Rudolph, "We still expect the $1184/$1180 support zone to give way in the first half of this year, but have to be vigilant for the possibility of a strong bounce back to the $1350 region first." Together with China's seasonal impact on gold, set to culminate with the start of the Year of the Horse on January 31st, "Gold buying related to annual index rebalancing is much anticipated," says Swiss bank and bullion market-maker UBS's analyst Joni Teves. Typically driving the gold price higher when commodity basket revisions spur portfolio reweightings, the 2014 move "may currently be amplified, squeezing the market higher," says Teves, "as [trading] activity is still relatively subdued, with [market] participants only starting to return from the holiday break." Meantime in India today, "we should not tamper with the [current anti-gold] regime," said economic affairs secretary Arvind Mayaram to the Press Trust of India, pointing to March as the earliest date for any reconsideration. The former world No.1 gold consumer nation, India was overtaken by China in 2013 after the government effectively banned new imports with strict financing and re-export rules starting in June. "Our point is that we need to keep the current account deficit low. We cannot afford to let it go, at least for this fiscal year." |
| Chinese FX expert says gold is a currency that China must dominate Posted: 07 Jan 2014 05:14 AM PST 8:15a ET Tuesday, January 7, 2014 Dear Friend of GATA and Gold: Gold researcher and GATA consultant Koos Jansen today discloses a speech given to a gold conference in Beijing last year by Tan Ya Ling, president of the China Foreign Exchange Investment Research Institute and author of a book titled "Currency Wars" (like that of U.S. fund manager James G. Rickards), arguing that gold is a currency and and potentially the world reserve currency and that China needs to dominate the world gold market. An English translation of the speech is posted at Jansen's Internet site, In Gold We Trust, here: http://www.ingoldwetrust.ch/chinas-fx-research-center-gold-strategy CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Jim Sinclair plans seminar in Austin on Feb. 8 Gold advocate and mining entrepreneur Jim Sinclair will hold his next market seminar at the Austin, Texas, Airport Hilton from 2 to 6 p.m. on Saturday, February 8. Advance registration is required. Details are posted at Sinclair's Internet site, JSMineSet, here: http://www.jsmineset.com/2014/01/02/austin-texas-qa-session-confirmed/ 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 our forecast for 2013 that includes profiles of nine companies and technical analysis of their stock performance. Six of the companies have market capitalizations of less than $800 million and one company has a market cap of only $30 million. The most exciting of these companies will begin production in a few weeks and has a market cap of just $150 million. Half of all proceeds from the sale of this report will be donated to the Gold Anti-Trust Action Committee to support its efforts exposing manipulation and fraud in the gold and silver markets. To learn about this report, please visit: http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp... |
| The Crypto Wars With Freedom Of Speech And Freedom Of Transaction Posted: 07 Jan 2014 03:00 AM PST Run to Gold |
| Gold 2013: Why Private Investment Kept Spreading Posted: 07 Jan 2014 01:16 AM PST So gold investment was abandoned by the West in 2013...? Not quite... GOLD INVESTMENT's big takeaway from its torrid 2013 performance? asks Adrian Ash at BullionVault. Private households in the West seem to recall the financial crisis more clearly than professional money managers. Because in marked contrast to investment funds, what little gold selling there was from private investors in 2013 was matched by new demand at these sharply lower prices. The Gold Investor Index measures the numbers of buyers versus sellers on BullionVault, the world-leading precious metals market online. With a reading of 50.0 signalling a perfect balance of buyers and sellers, the index ended 2013 at 52.9, markedly below the reading of 58.3 where it finished 2012. But the index again showed more buyers than sellers on Bullionvault, which ended the year caring for $1.3 billion of client gold property, held in independent storage in London, New York, Singapore, Toronto and Zurich. By US Dollar value that was 28.5% down from the end of 2012. The donkey-work in that drop was done by price, however. Because by weight, client gold holdings slipped only 1.0% across the year to 32.3 tonnes – more than it owned by most of the world's national central banks.  Now used by more than 50,000 people worldwide to buy, store and trade physical gold or silver, Bullionvault created its Gold Investor Index in 2012 to track user activity as a guide to behaviour in the broader gold investment markets. Some 90% of our users live in Western Europe or North America. So as a proxy for the developed West, Bullionvault offers a window onto how private households – whether they consider themselves investors or savers – are acting directly with their own money with regards to gold. (You can read more about the Gold Investor Index here.) On average across last year, it's worth noting, our monthly index slipped just one per cent in 2013, from 55.0 in 2012 down to 54.0. So again, this signals more buyers than sellers of investment gold throughout 2013 on Bullionvault. Meaning the appeal of gold continued to broaden even as prices fell. And buying gold as financial insurance at last year's lower prices could soon prove smart if the stock market surge falters in 2014. Still, the Gold Investor Index's annual average in 2011, when the monthly reading peaked with record-high prices at 71.1 in the September, was 59.5. So the urgency of buying gold, whether for insurance or immediate gain, was clearly lower in 2013. And no wonder. World stock markets returned 20% in Dollar terms on the MSCI index. Who would have felt they needed quite so much gold? Private households, as it happened, more than investment managers. Looking after your own money, it seems, means looking beyond the next quarter's portfolio performance. Remembering the lessons of the financial crisis more clearly counts, too. |
| Gold 2013: Why Private Investment Kept Spreading Posted: 07 Jan 2014 01:16 AM PST So gold investment was abandoned by the West in 2013...? Not quite... GOLD INVESTMENT's big takeaway from its torrid 2013 performance? asks Adrian Ash at BullionVault. Private households in the West seem to recall the financial crisis more clearly than professional money managers. Because in marked contrast to investment funds, what little gold selling there was from private investors in 2013 was matched by new demand at these sharply lower prices. The Gold Investor Index measures the numbers of buyers versus sellers on BullionVault, the world-leading precious metals market online. With a reading of 50.0 signalling a perfect balance of buyers and sellers, the index ended 2013 at 52.9, markedly below the reading of 58.3 where it finished 2012. But the index again showed more buyers than sellers on Bullionvault, which ended the year caring for $1.3 billion of client gold property, held in independent storage in London, New York, Singapore, Toronto and Zurich. By US Dollar value that was 28.5% down from the end of 2012. The donkey-work in that drop was done by price, however. Because by weight, client gold holdings slipped only 1.0% across the year to 32.3 tonnes – more than it owned by most of the world's national central banks. Now used by more than 50,000 people worldwide to buy, store and trade physical gold or silver, Bullionvault created its Gold Investor Index in 2012 to track user activity as a guide to behaviour in the broader gold investment markets. Some 90% of our users live in Western Europe or North America. So as a proxy for the developed West, Bullionvault offers a window onto how private households – whether they consider themselves investors or savers – are acting directly with their own money with regards to gold. (You can read more about the Gold Investor Index here.) On average across last year, it's worth noting, our monthly index slipped just one per cent in 2013, from 55.0 in 2012 down to 54.0. So again, this signals more buyers than sellers of investment gold throughout 2013 on Bullionvault. Meaning the appeal of gold continued to broaden even as prices fell. And buying gold as financial insurance at last year's lower prices could soon prove smart if the stock market surge falters in 2014. Still, the Gold Investor Index's annual average in 2011, when the monthly reading peaked with record-high prices at 71.1 in the September, was 59.5. So the urgency of buying gold, whether for insurance or immediate gain, was clearly lower in 2013. And no wonder. World stock markets returned 20% in Dollar terms on the MSCI index. Who would have felt they needed quite so much gold? Private households, as it happened, more than investment managers. Looking after your own money, it seems, means looking beyond the next quarter's portfolio performance. Remembering the lessons of the financial crisis more clearly counts, too. |
| Richard Russell: Is U.S. avoiding gold revaluation because it has lost its gold? Posted: 06 Jan 2014 08:51 PM PST 11:49p ET Monday, January 6, 2014 Dear Friend of GATA and Gold: The dean of the American financial letter writers, Richard Russell, speculates today that the United States has been avoiding a traditional method of reliquefying its government, an upward revaluation of gold, because it no longer really has its gold reserves. Russell concludes: "If it's true that the United States has gotten rid of a large portion of its gold, this could turn out to be one of the greatest economic scandals in U.S. history. Technically, gold is part of the Treasury holdings and is owned by the citizens of the United States. It's our gold; show it to us. There is something funny about why they won't proceed with an audit. Something strange is going on." Russell's commentary is reprinted at King World News here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/1/7_Ric... 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 Jim Sinclair plans seminar in Austin on Feb. 8 Gold advocate and mining entrepreneur Jim Sinclair will hold his next market seminar at the Austin, Texas, Airport Hilton from 2 to 6 p.m. on Saturday, February 8. Advance registration is required. Details are posted at Sinclair's Internet site, JSMineSet, here: http://www.jsmineset.com/2014/01/02/austin-texas-qa-session-confirmed/ |
| Gold, Silver and Stock Market 2014 Trend Change Due Posted: 06 Jan 2014 08:19 PM PST The year 2013 was a great year for the S&P and a terrible year for silver and gold investors. There are many indications that it is time for a reversal. If a market moves too far (up or down), too fast, or for too long, expect a reversal. Examples: |
| Bitcoin 2014 Bubble Collapse or Dollar Alternative? Posted: 06 Jan 2014 08:04 PM PST Is it a bubble or mania destined for collapse? Or can it beat the odds and become a viable alternative to the dollar? That’s what many are wondering about Bitcoin, the electronic currency which has captured the Internet world’s imagination. Many observers have dismissed the e-currency as a passing fad – a flash in the pan destined to suffer the same fate as break dancing and Beanie Babies. This conclusion is far too simplistic, however. Due to the complexities of the new currency the Bitcoin issue demands a deeper analysis. |
| Posted: 06 Jan 2014 07:57 PM PST Words by different Authors who attempt to “Pump Up” or “Talk Down” an Issue are exactly that, just Words. The ultimate results show up on Technical Charts in relation to Volume and Price Movements and which act as a Function of Mathematical Indicators involving Momentum and Rate of Change as we learned in Algebra II in H.S. and Calculus and Derivatives at U.C. Berkeley. There should be no “Mystery” in making money if these concepts are applied correctly which involve the Net Emotions of Greed and Fear and the Fundamental Values will ultimately take care of themselves. By applying correctly, Have Cash Ready until you see MACD lines crossing Up or Down at ZERO and always use Stops to Limit your losses. If you are an Intraday Trader, use 1min to 15min Charts and look for Peaks and Troughs of %B to Alert you and MACD line Crosses to Effect a Buy or Sell. If a “Long Termer”, which does not exist with Volatile ETFs, use Daily Charts.Follow me and stockcharts.com and you will see. Initially use the format: “chartbook” and scroll to the issues which are of interest specifically to your style of “Investing or Speculation”, and if you wish to make some good Returns for a Change as many of my Followers. Thank you for your interest |
| Mike Kosares: IRA rollover season -- a time to reap and a time to sow Posted: 06 Jan 2014 05:57 PM PST 8:55p ET Monday, January 6, 2014 Dear Friend of GATA and Gold: Mike Kosares of Centennial Precious Metals in Denver looks at a chart of the S&P 500 and the gold price and is reminded of the adage that there is a time to reap and a time to sow. Sometimes, Kosares suggests, they may be the same times. His commentary is headlined "Gold IRA Rollover Season -- As We Begin 2014, Market Opportunity, Danger Abound" and it's posted at Centennial's Internet site, USAGold.com, here: http://www.usagold.com/cpmforum/2014/01/06/gold-ira-rollover-season-%E2%... 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 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 |
| Bill Holter: All the questions have the same answer -- Germany's gold is gone Posted: 06 Jan 2014 05:34 PM PST Monkey Business By Bill Holter http://blog.milesfranklin.com/monkey-business Over the weekend GATA reported that Lars Schall has had correspondence with the Bundesbank regarding Germany's planned repatriation of gold: http://www.gata.org/node/13458 As you know, Germany has reported that 37.5 tons were delivered last year, which is about 50 tons shy of what was the announced plan last January and was expected to be delivered over the course of 2013. Peter Boehringer (Germany's equivalent of GATA's Chris Powell here in the States) asked many questions of the Bundesbank, the most central being: Why was this gold "recast" before being returned? As there has not been an audit of Fort Knox since the 1950's, nor a bar list made public since this German gold was claimed to have been deposited with the Federal Reserve Bank of New York back in the 1950s, this is a can of worms that has already been opened and any "answer" will only lead to more questions. ... Dispatch continues below ... ADVERTISEMENT Jim Sinclair plans seminar in Austin on Feb. 8 Gold advocate and mining entrepreneur Jim Sinclair will hold his next market seminar at the Austin, Texas, Airport Hilton from 2 to 6 p.m. on Saturday, February 8. Advance registration is required. Details are posted at Sinclair's Internet site, JSMineSet, here: http://www.jsmineset.com/2014/01/02/austin-texas-qa-session-confirmed/ So why exactly would the gold need to be recast before sending it back? Never mind the obvious question that we've already asked. Why will it take up to eight years to send the Germans their gold? You see, gold has a "fingerprint." Once it is refined down to 99.999 percent pure, the fingerprint is erased. For example, the "coin melt" that came from the 1934 confiscation has a fingerprint of 90 percent purity. The gold the Soviet Union was selling back in 1990 was 89 percent pure and had the czar's stamp on it, which was a dead giveaway that they were out of gold (money). They collapsed within six months and it was foretold by this "fingerprinted gold." For these 37.5 tons to be recast brings up the question: Where did it come from? Was this the original gold that was safe-kept? Or was the German gold leased out a hundred times over and is this gold being recast and returned from another source? Is this like the bank employee or even retail cashier who stole from the register with the intent of replacing it before anyone found out? This is a very legitimate question because we know for a fact that demand has outstripped supply for 20 years or more -- and the supply had to come from somewhere, right? If the gold was held on an "allocated," basis then the bars should at most need a feather duster to clean them up before shipment -- unless they are not the same bars. There is no other explanation for this, as the New York Fed would have no incentive to go through the process of recasting (refining?) even an ounce if the Fed was shipping what was originally stored. Germany would not and should not expect its gold back in form other than how it was originally delivered to the New York Fed. I call "monkey business" on this one because there are just too many questions. The questions collectively all have the same obvious answers. All these obvious answers point to the same conclusion: The German gold that is being delivered is not the same gold that was supposedly deposited more than 50 years ago. Thhat their 300+ tons (20 percent of the supposed total of Germany's gold in New York) will take more than eight years to deliver means that it's not just sitting in a corner collecting dust and waiting patiently to be delivered -- it was mobilized and "used" years ago. The conspiracy wackos who used to be laughed at with their (our) farfetched questions and claims had merit after all -- and all along the way! Please remember that even though this gold that has been delivered no longer has any fingerprint left to it, foreigners can (and will) eventually come to the obvious conclusion. The process may take longer and be far more complex and obfuscated than the Soviets delivering gold with the czar's stamp on it, but the result will be the same. We live in an era where everything is supported by confidence, so how confident will anyone be if (when) it is known that the gold is long gone? This is a very serious question and is the core reason I have been screaming to buy gold for more than 15 years no matter what the price has been. Any price between $252 and $1,920 over the last 15 years has been too low by orders of magnitude. In my opinion you could add a zero to the prices of gold and silver and still possibly not have the price necessary to clear the market. We will not know exactly how much monkey business has already gone on until the music stops. Whatever levels gold and silver do finally settle out to when the dust clears will be an indicator as to exactly how much. All you need to do is read the questions that are being asked and then use common sense. Any and all questions speak to one thing: There has been fraud. Gold and silver in their physical forms are anti-fraud and will be priced accordingly after the revelation. 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 our forecast for 2013 that includes profiles of nine companies and technical analysis of their stock performance. Six of the companies have market capitalizations of less than $800 million and one company has a market cap of only $30 million. The most exciting of these companies will begin production in a few weeks and has a market cap of just $150 million. Half of all proceeds from the sale of this report will be donated to the Gold Anti-Trust Action Committee to support its efforts exposing manipulation and fraud in the gold and silver markets. To learn about this report, please visit: http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp... |
| The Gold Price Lost 60 Cents Closing at $1,237 Posted: 06 Jan 2014 05:15 PM PST Gold Price Close Today : 1237.80 Change : -0.60 or -0.05% Silver Price Close Today : 20.077 Change : -0.105 or -0.52% Gold Silver Ratio Today : 61.653 Change : 0.291 or 0.47% Silver Gold Ratio Today : 0.01622 Change : -0.000077 or -0.47% Platinum Price Close Today : 1413.70 Change : 2.20 or 0.16% Palladium Price Close Today : 737.60 Change : 7.30 or 1.00% S&P 500 : 1,826.77 Change : -4.60 or -0.25% Dow In GOLD$ : $274.31 Change : $ (0.62) or -0.22% Dow in GOLD oz : 13.270 Change : -0.030 or -0.22% Dow in SILVER oz : 818.11 Change : 2.03 or 0.25% Dow Industrial : 16,425.10 Change : -44.89 or -0.27% US Dollar Index : 80.780 Change : -0.260 or -0.32% Something very odd and very encouraging happened for the GOLD PRICE today -- "Somebody" early this morning dumped one huge 11,660 contract sell order (1,166,000 ounces) on the futures market, BUT IT FAILED TO BREAK THE PRICE. Gold dropped $30 an ounce in less than a minute, but instead of triggering an avalanche of new selling, gold quickly rebounded. The trick "somebody" has been playing since since April no longer works. What does that say? The GOLD PRICE has been shaken out of the weak hands, and loads of sellers are ready to buy at lower prices. That event helps confirm my working assumption that silver and gold prices bottomed on 31 December, and have completed the 2011-2013 correction by posting double bottoms with the June lows. That said, bear in mind we need to witness confirmations. It's sort of like that wonderful girl you have your eye on. It's progress when she accepts your offer of a date, but confirmation when she accepts your proposal of marriage. But at Comex close the gold price had lost 60 cents to $1,237.80 and the SILVER PRICE 10.5 cents to 2007.7c. Considering the pounding gold took, that's not bad. Now look: gold and silver both remain ABOVE their 20 day moving average, so short term momentum is upward. Both are within spitting distance of their 50 DMAs ($1,258.65 and 2044c). All other indicators are signaling higher prices, and the 12 day rate of change just today turned up. What about Unconfirming? Well, a gold price close below $1,195 or silver close below 1935 cents would gainsay my rally assumption. Even aware of that, I'm riding this wave. Stocks continued to trip and stumble today, tracing out a reversal. All indices fell, and the Dow fell 44.89 (0.27%) to 16,425.10. It tried to rally out of the gate, but fell sharply before noon. Traded underwater until about 2:00, then tried to rally, peaked its head above the surface of unchanged, then sank again. Very weak. S&P500 lost 0.25% (4.6 points) to end at 1,826.77. Clearly a correction is brewing -- or better, has begun. Dow in Gold and Dow in silver are yea-saying both lower stock prices and higher prices for metals. Even with gold lower at Comex close, the Digs lost 0.25% to 13.28 oz (G$274.52 gold dollars). The 20 day moving average at 13.25 can feel the DiG's breath on its neck. Dow in silver lost 0.22% to 814.74 oz today, and fell below its 20 DMA (818.8). Both indicators remain above their 50 DMA (783.55 oz and 12.71 oz), which roughly marks their trading channel's lower boundary line. To make it clearer, a fall through that level will be a lot like diving with an anvil tied to your ankle. By the way, the gold mining stock indices are still encouraging. GDX, XAU, and HUI all rose slightly today. All have turned up, but all need to confirm by rallying higher. US dollar index today swooned, whether on bad economic numbers from the ISM report, or Janet Yellen's confirmation as the new head criminal at the Fed, no one can say. If we lived in a rational world, the appointment of a mouth-foaming inflationist as head currency guardian would have people selling dollars like the Russians were on Main Street. Anyhow, the dollar lost 26 basis points (0.32%) to 80.78, turning back to kiss the downtrend line good-bye. Technically, dollar index remaineth "broken-out" above its downtrend. Euro made time at the dollar's expense, up 0.35% to $1.3636. However, buying the euro would be like taking a job carrying fruit jars of nitroglycerin by hand riding a goat up Pike's Peak -- 'tain't no job with a future. Euro has already made a double peak, leaving behind an island reversal on this last one, and when it clears $1.3575, it will dive like one of those Mexicans off the cliffs at Acapulco. Only problem will be -- whoops! -- somebody drained the ocean. Yen seems to have turned up today, breaking through the downtrend line. Added 0.66% to end at 95.99 cents/Y100. Faced with a choice of buying the yen or a dose of the flu, I reckon I wouldn't have to ponder long to choose the flu. I have Thirteen (13) one hundred ounce silver bars, Engelhard, Johnson-Matthey, or equal, that I will sell in lots of four (4), Five (5) or one lot of Thirteen at $2120 each, plus $35/order shipping. That's about $50 a bar below usual retail. First emails to offers@the-moneychanger.com buy 'em. Remember that all sales are final, whether the market rises or falls tomorrow. You'll come nearer getting a fill if you say "13 or fewer." If you order 'em, you bought 'em. Include your name and phone number in your email. I don't read minds since I lost mine. No re-orders at that price. Mention goldprice.org in the email. Today is the celebration of the Epiphany, the manifestation of Christ to the Gentiles embodied in the visit of the Three Magi to the infant Jesus. It is also the 12th and final day of Christmas. Argentum et aurum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger The-MoneyChanger.com © 2013, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold or 18 ounces of silver. or 18 ounces of silver. US $ and US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down. WARNING AND DISCLAIMER. Be advised and warned: Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures. NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps. NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced. NOR do I recommend buying gold and silver on margin or with debt. What DO I recommend? Physical gold and silver coins and bars in your own hands. One final warning: NEVER insert a 747 Jumbo Jet up your nose. |
| The Gold Price Lost 60 Cents Closing at $1,237 Posted: 06 Jan 2014 05:15 PM PST Gold Price Close Today : 1237.80 Change : -0.60 or -0.05% Silver Price Close Today : 20.077 Change : -0.105 or -0.52% Gold Silver Ratio Today : 61.653 Change : 0.291 or 0.47% Silver Gold Ratio Today : 0.01622 Change : -0.000077 or -0.47% Platinum Price Close Today : 1413.70 Change : 2.20 or 0.16% Palladium Price Close Today : 737.60 Change : 7.30 or 1.00% S&P 500 : 1,826.77 Change : -4.60 or -0.25% Dow In GOLD$ : $274.31 Change : $ (0.62) or -0.22% Dow in GOLD oz : 13.270 Change : -0.030 or -0.22% Dow in SILVER oz : 818.11 Change : 2.03 or 0.25% Dow Industrial : 16,425.10 Change : -44.89 or -0.27% US Dollar Index : 80.780 Change : -0.260 or -0.32% Something very odd and very encouraging happened for the GOLD PRICE today -- "Somebody" early this morning dumped one huge 11,660 contract sell order (1,166,000 ounces) on the futures market, BUT IT FAILED TO BREAK THE PRICE. Gold dropped $30 an ounce in less than a minute, but instead of triggering an avalanche of new selling, gold quickly rebounded. The trick "somebody" has been playing since since April no longer works. What does that say? The GOLD PRICE has been shaken out of the weak hands, and loads of sellers are ready to buy at lower prices. That event helps confirm my working assumption that silver and gold prices bottomed on 31 December, and have completed the 2011-2013 correction by posting double bottoms with the June lows. That said, bear in mind we need to witness confirmations. It's sort of like that wonderful girl you have your eye on. It's progress when she accepts your offer of a date, but confirmation when she accepts your proposal of marriage. But at Comex close the gold price had lost 60 cents to $1,237.80 and the SILVER PRICE 10.5 cents to 2007.7c. Considering the pounding gold took, that's not bad. Now look: gold and silver both remain ABOVE their 20 day moving average, so short term momentum is upward. Both are within spitting distance of their 50 DMAs ($1,258.65 and 2044c). All other indicators are signaling higher prices, and the 12 day rate of change just today turned up. What about Unconfirming? Well, a gold price close below $1,195 or silver close below 1935 cents would gainsay my rally assumption. Even aware of that, I'm riding this wave. Stocks continued to trip and stumble today, tracing out a reversal. All indices fell, and the Dow fell 44.89 (0.27%) to 16,425.10. It tried to rally out of the gate, but fell sharply before noon. Traded underwater until about 2:00, then tried to rally, peaked its head above the surface of unchanged, then sank again. Very weak. S&P500 lost 0.25% (4.6 points) to end at 1,826.77. Clearly a correction is brewing -- or better, has begun. Dow in Gold and Dow in silver are yea-saying both lower stock prices and higher prices for metals. Even with gold lower at Comex close, the Digs lost 0.25% to 13.28 oz (G$274.52 gold dollars). The 20 day moving average at 13.25 can feel the DiG's breath on its neck. Dow in silver lost 0.22% to 814.74 oz today, and fell below its 20 DMA (818.8). Both indicators remain above their 50 DMA (783.55 oz and 12.71 oz), which roughly marks their trading channel's lower boundary line. To make it clearer, a fall through that level will be a lot like diving with an anvil tied to your ankle. By the way, the gold mining stock indices are still encouraging. GDX, XAU, and HUI all rose slightly today. All have turned up, but all need to confirm by rallying higher. US dollar index today swooned, whether on bad economic numbers from the ISM report, or Janet Yellen's confirmation as the new head criminal at the Fed, no one can say. If we lived in a rational world, the appointment of a mouth-foaming inflationist as head currency guardian would have people selling dollars like the Russians were on Main Street. Anyhow, the dollar lost 26 basis points (0.32%) to 80.78, turning back to kiss the downtrend line good-bye. Technically, dollar index remaineth "broken-out" above its downtrend. Euro made time at the dollar's expense, up 0.35% to $1.3636. However, buying the euro would be like taking a job carrying fruit jars of nitroglycerin by hand riding a goat up Pike's Peak -- 'tain't no job with a future. Euro has already made a double peak, leaving behind an island reversal on this last one, and when it clears $1.3575, it will dive like one of those Mexicans off the cliffs at Acapulco. Only problem will be -- whoops! -- somebody drained the ocean. Yen seems to have turned up today, breaking through the downtrend line. Added 0.66% to end at 95.99 cents/Y100. Faced with a choice of buying the yen or a dose of the flu, I reckon I wouldn't have to ponder long to choose the flu. I have Thirteen (13) one hundred ounce silver bars, Engelhard, Johnson-Matthey, or equal, that I will sell in lots of four (4), Five (5) or one lot of Thirteen at $2120 each, plus $35/order shipping. That's about $50 a bar below usual retail. First emails to offers@the-moneychanger.com buy 'em. Remember that all sales are final, whether the market rises or falls tomorrow. You'll come nearer getting a fill if you say "13 or fewer." If you order 'em, you bought 'em. Include your name and phone number in your email. I don't read minds since I lost mine. No re-orders at that price. Mention goldprice.org in the email. Today is the celebration of the Epiphany, the manifestation of Christ to the Gentiles embodied in the visit of the Three Magi to the infant Jesus. It is also the 12th and final day of Christmas. Argentum et aurum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger The-MoneyChanger.com © 2013, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold or 18 ounces of silver. or 18 ounces of silver. US $ and US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down. WARNING AND DISCLAIMER. Be advised and warned: Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures. NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps. NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced. NOR do I recommend buying gold and silver on margin or with debt. What DO I recommend? Physical gold and silver coins and bars in your own hands. One final warning: NEVER insert a 747 Jumbo Jet up your nose. |
| Richard Russell's Dow Theory Letters takes note of GATA's work Posted: 06 Jan 2014 04:55 PM PST By Matthew Kerkhoff, Research Director http://ww2.dowtheoryletters.com/ For those who may be interested, the website www.gata.org is home to the Gold Anti-Trust Action Committee. The committee was organized in 1998 to "expose, oppose, and litigate against collusion to control the price and supply of gold and related financial instruments." Leveraging the Freedom of Information Act, GATA sought access to the Federal Reserve's gold-related records and, according to them, elicited an admission from the Fed that it maintains gold swap arrangements with foreign banks which it insists on keeping secret. In an attempt to obtain the records in question, GATA sued the Fed in 2009. In February 2011 the court ruled that the majority of the Fed's records could remain secret with the exception of the minutes of the April 1997 meeting of the G-10 Committee on Gold and Foreign Exchange. The minutes, according to GATA, showed "G-10 member treasury and central bank officials secretly discussing the coordination of their policies toward the gold market." The Fed was ordered to pay court costs to GATA for this lawsuit. GATA continues to collect and publish any documents that show treasury and central bank efforts to intervene against a free market in gold. There is a wealth of information on the site, too much to summarize succinctly here. I should note that from the articles I read, some of the information appears anecdotal, as it is based on personal accounts, opinions, and interpretations. But nonetheless it does drive home the very real possibility that the gold market is not what it appears and might be subject to manipulation based on hidden agendas. 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 Jim Sinclair plans seminar in Austin on Feb. 8 Gold advocate and mining entrepreneur Jim Sinclair will hold his next market seminar at the Austin, Texas, Airport Hilton from 2 to 6 p.m. on Saturday, February 8. Advance registration is required. Details are posted at Sinclair's Internet site, JSMineSet, here: http://www.jsmineset.com/2014/01/02/austin-texas-qa-session-confirmed/ |
| MarketWatch reports suspicions of gold market manipulation Posted: 06 Jan 2014 04:24 PM PST GoldCore's O'Byrne, Sharps Pixley's Norman, Gold Newsletter's Lundin are actually quoted on the point. Could GATA's Bill Murphy be next? * * * Gold Market 'Flash Crash' Explanations Vary from 'Fat Finger' to 'Price Manipulation' By Myra Saefong http://blogs.marketwatch.com/thetell/2014/01/06/gold-market-flash-crash-... Gold futures suffered a sudden, brief drop in prices early Monday on the Comex division of the New York Mercantile Exchange, with market watchers blaming the move on everything from a "fat finger: to trader liquidation to price manipulation. According to Nanex, a trade of about 4,200 contracts sent February gold tumbling by $30 an ounce on heavy volume at around 10:14 a.m. Eastern and triggered a 10-second trading halt. Prices fell from about $1,245 to around $1,215 an ounce in just moments. The crash came about 14 minutes after the release of U.S. factory orders and ISM services index data. Phil Flynn, a senior analyst at Price Futures Group, at first said the drop looked like it was due to a "fat finger," then added there was speculation over a broker liquidating positions. Mark O'Byrne, executive director at GoldCore, said the "flash crash today had the hallmarks of price manipulation." Still, "as ever, it is nearly impossible to tell and could have been a fat finger trade or a large fund or bank liquidating a gold position." ... Dispatch continues below ... ADVERTISEMENT How to profit with silver -- Future Money Trends is offering a special 16-page silver report with our forecast for 2013 that includes profiles of nine companies and technical analysis of their stock performance. Six of the companies have market capitalizations of less than $800 million and one company has a market cap of only $30 million. The most exciting of these companies will begin production in a few weeks and has a market cap of just $150 million. Half of all proceeds from the sale of this report will be donated to the Gold Anti-Trust Action Committee to support its efforts exposing manipulation and fraud in the gold and silver markets. To learn about this report, please visit: http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp... Meanwhile, Ross Norman, chief executive officer at Sharps Pixley, said that the move "looks to be shorts defending their substantial positions." But "some of us have doubts, which makes gold a steal at these prices," he said. "In fact, [it's] the cheapest insurance in town against economic difficulties." February gold was last up $1.80, or 0.2%, at $1,240.40 an ounce on Comex. Now the real question is whether the U.S. Commodity Futures Trading Commission and exchange "will investigate and try to actually enforce its regulations," said Brien Lundin, editor of Gold Newsletter. "Apparently there was no investigation into the mid-April episode where gold contracts were dumped simultaneously to push the price through sell stops. Either position limits were ignored by the exchange in this instance, or there was collusion involved -- either of which should have been investigated and exposed," he said. "I'm afraid that today's spike downward is further evidence that the current regulatory regime isn't working," Lundin said. 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 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 |
| Posted: 06 Jan 2014 04:00 PM PST Is it a bubble or mania destined for collapse? Or can it beat the odds and become a viable alternative to the dollar? |
| Gold Stocks: What to Expect in the New Year Posted: 06 Jan 2014 04:00 PM PST After three years of pain, can gold stocks break their losing streak and see a gain in 2014? |
| Infographic: The Wonderful Uses Of Silver Posted: 06 Jan 2014 02:59 PM PST Silver is a critical element which has been used in a growing number of industries, applications and devices. In fact, most of us are simply not aware how many times a day we are using silver; the grey metal is in medicine, solar panels, electrical switches, automotive, electronic devices, etc. This infograpic, created by Physicalgold.co.uk, gives an overview of some important uses of silver in daily life and benefits of the metal.
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| Gold Repricing of 1933 Was Just A Debt Default Posted: 06 Jan 2014 02:58 PM PST About a week ago, we wrote about two new IMF papers who discuss a savings tax. The topic and the idea is gaining traction after the IMF described the effect of a one-time 10% tax on all savings recently. In one of the latest two papers, Bron Suchecki brought up another interesting point from the paper. On his personal blog, he extracted a quote from the paper which proves that the repricing of gold in 1933 was nothing more than a debt default. An interesting view which has been underexposed. “… the United States had already defaulted on its sovereign debt in April 1933 to domestic and external creditors alike. The abrogation of the gold clause in conjunction with a subsequent 40 percent reduction in the gold content of the U.S. dollar (January 1934) also amounted to a debt haircut amounting to about 16 percent of GDP.” Bron Suchecki writes:
This forced repricing has been discussed extensively by Jim Rickards in the last few years. He expects the government to be forced to return to a form of gold standard and, by doing so, reprice gold. His latest expectations, as described in his newest book to be published soon, are gold going to $9,000 in that process. |
| Silver, Gold and S&P: A Trend Change Is Due Posted: 06 Jan 2014 02:32 PM PST The year 2013 was a great year for the S&P and a terrible year for silver and gold investors. There are many indications that it is time for a reversal. If a market moves too far (up or down), too fast, or for too long, expect a reversal. Examples:
The fundamentals for these markets did not change from normal to fantastic to terrible in a short time. It is clear that High Frequency Trading (HFT) algorithms, speculators, momentum players, the Fed, and others pushed the markets higher or lower to unsustainable levels and then reversed those markets. How do silver prices compare to the S&P? Examine the data back to 1975 and calculate the ratio of the price of silver to the S&P 500 index. We see that:
Silver prices are too low compared to the S&P 500 index. What else supports that analysis?
Conclusions: Silver and gold prices have been forced lower in the paper markets while the S&P has been levitated with zero-interest rates, HFT and QE. The financial powers-that-be, the political and financial elite, Wall Street, China, India, Russia, and the U.S. Treasury have all benefitted from the suppression of gold and silver prices. Most have also benefitted from QE and the S&P levitation. The surprise is not that gold and silver prices have been pushed lower after their 2011 blow-off rallies, but that the "smack down" has lasted so long in the face of such strong physical demand. Regardless, regression to the mean is relevant, even in manipulated markets. Expect a trend change in 2014 and much higher gold and silver prices as they rally above their 200 day moving averages. The ratio of silver prices to the S&P is back to 2008 levels and substantially below the linear trend since 2006. Expect the ratio to regress (rise) to its mean while silver prices rally substantially from here. Both long and short term time cycles indicate that an important bottom occurred in June of 2013. It appears that a double-bottom occurred in December of 2013. If this double-bottom holds, time cycles suggest that silver will rally strongly in 2014.
GE Christenson | The Deviant Investor |
| Ben Shalom Beranke Fiddles In Front Of Congress, Under Oath Posted: 06 Jan 2014 02:32 PM PST Tragedy is like strong acid: It dissolves away all but the very gold of truth.Indeed, David Herbert, when the fiat-currency-driven paper gold market collapses, exposing the giant Ponzi scheme of the western Central Banking fractional gold bullion system, it will be a tragedy for the United States that will reveal the golden truth. Here's Ben Bernanke's testimony to Congress, in which he asserts that gold is not money and that Central Banks hold gold as part of their reserves only out of tradition. If that's the case, then where is audit of the Federal Reserve's gold vault? The audit that the Fed has spent hundreds of thousands, if not millions, to avoid - including hiring the former Enron lobbyist Linda Robertson in 2009 to help fight of Ron Paul's attempt to force an audit. |
| Ben Shalom Beranke Fiddles In Front Of Congress, Under Oath Posted: 06 Jan 2014 02:32 PM PST Tragedy is like strong acid: It dissolves away all but the very gold of truth.Indeed, David Herbert, when the fiat-currency-driven paper gold market collapses, exposing the giant Ponzi scheme of the western Central Banking fractional gold bullion system, it will be a tragedy for the United States that will reveal the golden truth. Here's Ben Bernanke's testimony to Congress, in which he asserts that gold is not money and that Central Banks hold gold as part of their reserves only out of tradition. If that's the case, then where is audit of the Federal Reserve's gold vault? The audit that the Fed has spent hundreds of thousands, if not millions, to avoid - including hiring the former Enron lobbyist Linda Robertson in 2009 to help fight of Ron Paul's attempt to force an audit. |
| Gold Prices Stabilize but Downside Momentum Remains a Risk Posted: 06 Jan 2014 01:58 PM PST Gold prices are little changed on Monday, suggesting the price has stabilized in recent days, but RJO Futures Senior Commodities Broker Phil Streible tells TheStreet's Joe Deaux that downside risk... [[ 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! ]]  |
| Beware of mainstream propaganda as turning point nears, Embry warns Posted: 06 Jan 2014 01:31 PM PST 4:34p ET Monday, January 6, 2014 Dear Friend of GATA and Gold: Sprott Asset Management's John Embry, interviewed today by King World News, cautions investors not to be misled by mainstream financial news media propaganda that is "being used in a desperate attempt to try to get people out of gold and silver and into overvalued financial assets at the worst possible moment in history." An excerpt from Embry's interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/1/6_Emb... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Jim Sinclair plans seminar in Austin on Feb. 8 Gold advocate and mining entrepreneur Jim Sinclair will hold his next market seminar at the Austin, Texas, Airport Hilton from 2 to 6 p.m. on Saturday, February 8. Advance registration is required. Details are posted at Sinclair's Internet site, JSMineSet, here: http://www.jsmineset.com/2014/01/02/austin-texas-qa-session-confirmed/ 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 our forecast for 2013 that includes profiles of nine companies and technical analysis of their stock performance. Six of the companies have market capitalizations of less than $800 million and one company has a market cap of only $30 million. The most exciting of these companies will begin production in a few weeks and has a market cap of just $150 million. Half of all proceeds from the sale of this report will be donated to the Gold Anti-Trust Action Committee to support its efforts exposing manipulation and fraud in the gold and silver markets. To learn about this report, please visit: http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp... |
| Gold Daily and Silver Weekly Charts - Non-Farm Payrolls For December Later This Week Posted: 06 Jan 2014 01:20 PM PST |
| Gold Daily and Silver Weekly Charts - Non-Farm Payrolls For December Later This Week Posted: 06 Jan 2014 01:20 PM PST |
| What is a Precious Metals Dealer Anyway? Posted: 06 Jan 2014 12:52 PM PST Precious metals dealer is a term used a lot, but understood very little... SO WHAT MAKES a precious metals dealer? asks Miguel Perez-Santalla at BullionVault. This term is bandied about loosely, and used by many people with no knowledge of the gold or silver market. But precious metals dealer is also used by others with a very specific meaning. So in reality, it is a term that has not been clearly defined in the eyes of both the trading community and the public. Traditionally, the term "dealer" usually meant a company, involved in the trading of a commodity or product, which stood ready to buy or sell that item during trading hours. For instance, in the precious metals market we would call a gold dealer someone who stands ready to make a bid and offer price on gold for a minimum of 500 ounces at a time. Of course this doesn't limit the dealer to trading this amount; it just means that they stand ready to be a market maker for the item, which is another term – in this wholesale context – for dealer. Such firms are typically larger, and only deal with companies in the same industry. So in precious metals, their counterparties may be banks, refineries, consumers or producers of gold, silver, platinum or palladium. These dealers would not typically trade with you or me as private individuals, nor with companies that are not actively involved in the precious metals business. However, the term "precious metals dealer" later evolved to refer to businesses which are involved with the distribution of product to the retailers of coins, bars and bullion who then finally make a sale to the public. These institutions, who typically inventory product for sale to companies such as coin retailers, jewelers, and investment companies, are considered middle-market distributors or wholesalers in other industries. However, because of the uniqueness of the gold and silver markets, they also participate in buying back merchandise, either to be held in their inventory or to be scrapped back to its original raw state by a refinery. Since these middle-market distributors also make a two-way market, offering to buy or sell merchandise, it has led them to also attain the nom du jour of precious metals dealer. There is no doubt that they are active participants in the marketplace. But even though they will always have an interest in buying and selling bullion products – since this is their business, after all – it does not mean they must always show the best buying price or selling price at any given time. There is nothing unjust about their ability to determine pricing. They are subject to the market ebbs and flow just as much as in any other marketplace, and must adjust their pricing accordingly. Which will include a mark-up from the base wholesale price (or discount when they're buying back) to ensure they turn a profit. Then there is the final level of business where the term precious metals dealer is now used. Here it is real a misnomer. At the retail level there are many precious metals companies, coin shops, pawnshops, and scrap collectors that do deal direct with the public. These people are not direct dealers in any sense because they rely on their distributors or market makers for making their prices to the market. But because government authorities needed to give this business a title, they chose one that worked best for them. It would have been more adequate to call them vendors or service providers of precious metals, rather than precious metals dealer. This is not meant to degrade these retailers in any sense. It is only to describe properly what their primary purpose or position is in the marketplace. These businesses traditionally are those that promote the sale, and or purchase of gold and silver products or services to the public through advertising or media campaigns. They are an important part of the marketplace, especially for those private citizens wishing to take physical possession or ownership of gold or silver bullion. But the term precious metals dealer is being used with different meanings by different people across many related industries, now including banks, money service businesses, trusts and administrators of self-directed IRAs. And because the precious metals market, especially gold, has only recently taken a pause at last from what proved a 12-year bull run, many new companies have surfaced to supply the demand from would-be investors. Many of these new companies are reputable and well recognized by their quality of service and the products they provide. However, several cases of fraud and unfair dealing have come up, some more high profile but others more under the radar. And historically in all industries, the stage most susceptible to fraud is the final provision to retail customers. This is why anyone looking to work with a precious metals provider for gold and silver products should take the time to do proper research. Whatever level of business you're looking to conduct, here's a checklist of what you should do before entering into a financial transaction with any precious metals provider, be they a "dealer" or otherwise:
As Jim Rogers told me in my recent interview with him on New York Markets Live, "If you cannot spell gold you should not own any gold until you learn something about it." And as we've seen with the term precious metals dealer, improving your own understanding goes a long way to getting you a better, safer deal when you come to act. |
| What is a Precious Metals Dealer Anyway? Posted: 06 Jan 2014 12:52 PM PST Precious metals dealer is a term used a lot, but understood very little... SO WHAT MAKES a precious metals dealer? asks Miguel Perez-Santalla at BullionVault. This term is bandied about loosely, and used by many people with no knowledge of the gold or silver market. But precious metals dealer is also used by others with a very specific meaning. So in reality, it is a term that has not been clearly defined in the eyes of both the trading community and the public. Traditionally, the term "dealer" usually meant a company, involved in the trading of a commodity or product, which stood ready to buy or sell that item during trading hours. For instance, in the precious metals market we would call a gold dealer someone who stands ready to make a bid and offer price on gold for a minimum of 500 ounces at a time. Of course this doesn't limit the dealer to trading this amount; it just means that they stand ready to be a market maker for the item, which is another term – in this wholesale context – for dealer. Such firms are typically larger, and only deal with companies in the same industry. So in precious metals, their counterparties may be banks, refineries, consumers or producers of gold, silver, platinum or palladium. These dealers would not typically trade with you or me as private individuals, nor with companies that are not actively involved in the precious metals business. However, the term "precious metals dealer" later evolved to refer to businesses which are involved with the distribution of product to the retailers of coins, bars and bullion who then finally make a sale to the public. These institutions, who typically inventory product for sale to companies such as coin retailers, jewelers, and investment companies, are considered middle-market distributors or wholesalers in other industries. However, because of the uniqueness of the gold and silver markets, they also participate in buying back merchandise, either to be held in their inventory or to be scrapped back to its original raw state by a refinery. Since these middle-market distributors also make a two-way market, offering to buy or sell merchandise, it has led them to also attain the nom du jour of precious metals dealer. There is no doubt that they are active participants in the marketplace. But even though they will always have an interest in buying and selling bullion products – since this is their business, after all – it does not mean they must always show the best buying price or selling price at any given time. There is nothing unjust about their ability to determine pricing. They are subject to the market ebbs and flow just as much as in any other marketplace, and must adjust their pricing accordingly. Which will include a mark-up from the base wholesale price (or discount when they're buying back) to ensure they turn a profit. Then there is the final level of business where the term precious metals dealer is now used. Here it is real a misnomer. At the retail level there are many precious metals companies, coin shops, pawnshops, and scrap collectors that do deal direct with the public. These people are not direct dealers in any sense because they rely on their distributors or market makers for making their prices to the market. But because government authorities needed to give this business a title, they chose one that worked best for them. It would have been more adequate to call them vendors or service providers of precious metals, rather than precious metals dealer. This is not meant to degrade these retailers in any sense. It is only to describe properly what their primary purpose or position is in the marketplace. These businesses traditionally are those that promote the sale, and or purchase of gold and silver products or services to the public through advertising or media campaigns. They are an important part of the marketplace, especially for those private citizens wishing to take physical possession or ownership of gold or silver bullion. But the term precious metals dealer is being used with different meanings by different people across many related industries, now including banks, money service businesses, trusts and administrators of self-directed IRAs. And because the precious metals market, especially gold, has only recently taken a pause at last from what proved a 12-year bull run, many new companies have surfaced to supply the demand from would-be investors. Many of these new companies are reputable and well recognized by their quality of service and the products they provide. However, several cases of fraud and unfair dealing have come up, some more high profile but others more under the radar. And historically in all industries, the stage most susceptible to fraud is the final provision to retail customers. This is why anyone looking to work with a precious metals provider for gold and silver products should take the time to do proper research. Whatever level of business you're looking to conduct, here's a checklist of what you should do before entering into a financial transaction with any precious metals provider, be they a "dealer" or otherwise:
As Jim Rogers told me in my recent interview with him on New York Markets Live, "If you cannot spell gold you should not own any gold until you learn something about it." And as we've seen with the term precious metals dealer, improving your own understanding goes a long way to getting you a better, safer deal when you come to act. |
| What is a Precious Metals Dealer Anyway? Posted: 06 Jan 2014 12:52 PM PST Precious metals dealer is a term used a lot, but understood very little... SO WHAT MAKES a precious metals dealer? asks Miguel Perez-Santalla at BullionVault. This term is bandied about loosely, and used by many people with no knowledge of the gold or silver market. But precious metals dealer is also used by others with a very specific meaning. So in reality, it is a term that has not been clearly defined in the eyes of both the trading community and the public. Traditionally, the term "dealer" usually meant a company, involved in the trading of a commodity or product, which stood ready to buy or sell that item during trading hours. For instance, in the precious metals market we would call a gold dealer someone who stands ready to make a bid and offer price on gold for a minimum of 500 ounces at a time. Of course this doesn't limit the dealer to trading this amount; it just means that they stand ready to be a market maker for the item, which is another term – in this wholesale context – for dealer. Such firms are typically larger, and only deal with companies in the same industry. So in precious metals, their counterparties may be banks, refineries, consumers or producers of gold, silver, platinum or palladium. These dealers would not typically trade with you or me as private individuals, nor with companies that are not actively involved in the precious metals business. However, the term "precious metals dealer" later evolved to refer to businesses which are involved with the distribution of product to the retailers of coins, bars and bullion who then finally make a sale to the public. These institutions, who typically inventory product for sale to companies such as coin retailers, jewelers, and investment companies, are considered middle-market distributors or wholesalers in other industries. However, because of the uniqueness of the gold and silver markets, they also participate in buying back merchandise, either to be held in their inventory or to be scrapped back to its original raw state by a refinery. Since these middle-market distributors also make a two-way market, offering to buy or sell merchandise, it has led them to also attain the nom du jour of precious metals dealer. There is no doubt that they are active participants in the marketplace. But even though they will always have an interest in buying and selling bullion products – since this is their business, after all – it does not mean they must always show the best buying price or selling price at any given time. There is nothing unjust about their ability to determine pricing. They are subject to the market ebbs and flow just as much as in any other marketplace, and must adjust their pricing accordingly. Which will include a mark-up from the base wholesale price (or discount when they're buying back) to ensure they turn a profit. Then there is the final level of business where the term precious metals dealer is now used. Here it is real a misnomer. At the retail level there are many precious metals companies, coin shops, pawnshops, and scrap collectors that do deal direct with the public. These people are not direct dealers in any sense because they rely on their distributors or market makers for making their prices to the market. But because government authorities needed to give this business a title, they chose one that worked best for them. It would have been more adequate to call them vendors or service providers of precious metals, rather than precious metals dealer. This is not meant to degrade these retailers in any sense. It is only to describe properly what their primary purpose or position is in the marketplace. These businesses traditionally are those that promote the sale, and or purchase of gold and silver products or services to the public through advertising or media campaigns. They are an important part of the marketplace, especially for those private citizens wishing to take physical possession or ownership of gold or silver bullion. But the term precious metals dealer is being used with different meanings by different people across many related industries, now including banks, money service businesses, trusts and administrators of self-directed IRAs. And because the precious metals market, especially gold, has only recently taken a pause at last from what proved a 12-year bull run, many new companies have surfaced to supply the demand from would-be investors. Many of these new companies are reputable and well recognized by their quality of service and the products they provide. However, several cases of fraud and unfair dealing have come up, some more high profile but others more under the radar. And historically in all industries, the stage most susceptible to fraud is the final provision to retail customers. This is why anyone looking to work with a precious metals provider for gold and silver products should take the time to do proper research. Whatever level of business you're looking to conduct, here's a checklist of what you should do before entering into a financial transaction with any precious metals provider, be they a "dealer" or otherwise:
As Jim Rogers told me in my recent interview with him on New York Markets Live, "If you cannot spell gold you should not own any gold until you learn something about it." And as we've seen with the term precious metals dealer, improving your own understanding goes a long way to getting you a better, safer deal when you come to act. |
| Embry - This Is Going To Be An Epic Collapse & Final Battle Posted: 06 Jan 2014 12:00 PM PST  With continued uncertainty around the globe, today a man who has been involved in the financial markets for 50 years, and whose business partner is billionaire Eric Sprott, warned King World News that 2014 is going to be the year of an epic final battle in the financial markets that will "literally collapse" the banking system. John Embry also discussed what this means for investors around the world in his powerful KWN interview.This posting includes an audio/video/photo media file: Download Now |
| Posted: 06 Jan 2014 11:55 AM PST Contrarians relax! Things have got abnormal again at last... The FACT THAT that Australia's S&P ASX/200 is still down 20% from its 2007 high should not get in the way of a good story, writes Dan Denning in his Daily Reckoning Australia. And the good story shaping up for 2014 is that everything is back to normal. The crisis is over. You can come out of your bomb shelter. Happy days are here again. Growth is the new debt, as far as buzzwords go. The International Monetary Fund reports that the world's economy will grow by around 4%. Europe and the United States are on the mend. And China will chip in with its regular annual growth rate somewhere between 7.2% and 7.8%. And with growth will come sales and profits. And let's not forget new shares, either. Australia had the fourth-largest initial public offering (IPO) market in the world last year. $6.4 billion worth of new shares floated in 2013, and nearly 70% of that total came from companies that went public in the fourth quarter. Nothing says 'animal spirits' like a new rush of equities for the public to buy. Shares are so popular now that we wonder if this will this be the year that Aussies focus on shares instead of property. Property had a great year last year, at least in the capital cities. After a 15.2% rise in 2013, the median house price in Sydney is now $775,000. Melbourne prices rose by 8.5% for a median price of $625,000. In fact, prices were up in all eight cities for an average gain of 9.9%. Another couple of years like that and the median Sydney house price will be a million Dollars. Until then, why not combine both passions? There were two property related floats in the fourth quarter. GDI Property Group Ltd (ASX:GDI) went public at 88 cents a share in late December. Industria REIT (ASX:IDR) went public a few weeks later. Between the two, they raised almost $750 million in new capital. Here's the thing, though. Every normal narrative needs at least a semblance of sensibility to it. In the tech boom, it was the promise of revolutionary profits. Back in the 1960s and 1970s, you had the 'Nifty 50' stocks. Those were stocks you couldn't go wrong with because the world was growing and big corporate blue chips were bound to profit from it. What is today's narrative? That the way to profit from a property boom is to buy property shares? Or is it something simpler? If it's just that stocks should go up as long as central banks keep interest rates low, that's not a very convincing story. To be fair, it worked a treat last year. But it's not really investing if you're just following the Federal Reserve. Last week we called it cooperating with an occupying power, like Quislings. Perhaps this was too harsh. But frankly we welcome the return to normal. It means our mailbox is now full of invective from readers telling us how wrong we are about everything. We even get the occasional 'Yankee go home' email, always a sign of confidence in the normal. Yes, judging by the tenor of the mailbox, normal is back. Today feels much more like 2007-when all the theories about sound money and deficits and gold were the province of cranks, wingnuts, and wackos. Back then, it was only circus-freaks and fringe dwellers that were willing to suggest that something was deeply flawed in the world's financial system. Something unusual happened over the next few years. Mainstream economists and pundits realized they had no idea what was really going on in the financial world. All of their academic theories and textbook arguments collapsed more swiftly than a sub-prime lender. As a publisher of contrarian ideas, we found it harder than ever to be contrarian. Suddenly everyone was a doom and gloomer. Enter Ben Bernanke's Fed. In fact, enter a whole cavalcade of central bankers and economists. They came armed with digital printing presses. And they've been so prolific in pumping up stock prices since 2009 that all the doubts about debt vanished under a sea of green numbers. Bernanke is now so secure in his opinion of himself that he spent a good part of his farewell address lecturing emerging markets on the structural reforms they need to make. Seldom have so few who know so little about money deceived so many and done so much damage. When you look around at the world created by the Fed, don't ever forget it's been created by people who know nothing about operating a business in the real world. The entire financial system – indeed the entire global economy – is now in the grip of an experiment by academic bankers. If you think that's progress, or that's normal, or that's safe, you need to quit drinking the Kool-Aid. No one knows exactly how this experiment in managing an economy with asset purchases will blow up. But that it will, well, there can hardly be any doubt about that. The good news is that financial markets are finally interesting again. The re-emergence of the normal position (that everything is okay) allows us to re-assume the mantle of abnormality. |
| Posted: 06 Jan 2014 11:55 AM PST Contrarians relax! Things have got abnormal again at last... The FACT THAT that Australia's S&P ASX/200 is still down 20% from its 2007 high should not get in the way of a good story, writes Dan Denning in his Daily Reckoning Australia. And the good story shaping up for 2014 is that everything is back to normal. The crisis is over. You can come out of your bomb shelter. Happy days are here again. Growth is the new debt, as far as buzzwords go. The International Monetary Fund reports that the world's economy will grow by around 4%. Europe and the United States are on the mend. And China will chip in with its regular annual growth rate somewhere between 7.2% and 7.8%. And with growth will come sales and profits. And let's not forget new shares, either. Australia had the fourth-largest initial public offering (IPO) market in the world last year. $6.4 billion worth of new shares floated in 2013, and nearly 70% of that total came from companies that went public in the fourth quarter. Nothing says 'animal spirits' like a new rush of equities for the public to buy. Shares are so popular now that we wonder if this will this be the year that Aussies focus on shares instead of property. Property had a great year last year, at least in the capital cities. After a 15.2% rise in 2013, the median house price in Sydney is now $775,000. Melbourne prices rose by 8.5% for a median price of $625,000. In fact, prices were up in all eight cities for an average gain of 9.9%. Another couple of years like that and the median Sydney house price will be a million Dollars. Until then, why not combine both passions? There were two property related floats in the fourth quarter. GDI Property Group Ltd (ASX:GDI) went public at 88 cents a share in late December. Industria REIT (ASX:IDR) went public a few weeks later. Between the two, they raised almost $750 million in new capital. Here's the thing, though. Every normal narrative needs at least a semblance of sensibility to it. In the tech boom, it was the promise of revolutionary profits. Back in the 1960s and 1970s, you had the 'Nifty 50' stocks. Those were stocks you couldn't go wrong with because the world was growing and big corporate blue chips were bound to profit from it. What is today's narrative? That the way to profit from a property boom is to buy property shares? Or is it something simpler? If it's just that stocks should go up as long as central banks keep interest rates low, that's not a very convincing story. To be fair, it worked a treat last year. But it's not really investing if you're just following the Federal Reserve. Last week we called it cooperating with an occupying power, like Quislings. Perhaps this was too harsh. But frankly we welcome the return to normal. It means our mailbox is now full of invective from readers telling us how wrong we are about everything. We even get the occasional 'Yankee go home' email, always a sign of confidence in the normal. Yes, judging by the tenor of the mailbox, normal is back. Today feels much more like 2007-when all the theories about sound money and deficits and gold were the province of cranks, wingnuts, and wackos. Back then, it was only circus-freaks and fringe dwellers that were willing to suggest that something was deeply flawed in the world's financial system. Something unusual happened over the next few years. Mainstream economists and pundits realized they had no idea what was really going on in the financial world. All of their academic theories and textbook arguments collapsed more swiftly than a sub-prime lender. As a publisher of contrarian ideas, we found it harder than ever to be contrarian. Suddenly everyone was a doom and gloomer. Enter Ben Bernanke's Fed. In fact, enter a whole cavalcade of central bankers and economists. They came armed with digital printing presses. And they've been so prolific in pumping up stock prices since 2009 that all the doubts about debt vanished under a sea of green numbers. Bernanke is now so secure in his opinion of himself that he spent a good part of his farewell address lecturing emerging markets on the structural reforms they need to make. Seldom have so few who know so little about money deceived so many and done so much damage. When you look around at the world created by the Fed, don't ever forget it's been created by people who know nothing about operating a business in the real world. The entire financial system – indeed the entire global economy – is now in the grip of an experiment by academic bankers. If you think that's progress, or that's normal, or that's safe, you need to quit drinking the Kool-Aid. No one knows exactly how this experiment in managing an economy with asset purchases will blow up. But that it will, well, there can hardly be any doubt about that. The good news is that financial markets are finally interesting again. The re-emergence of the normal position (that everything is okay) allows us to re-assume the mantle of abnormality. |
| Playing Volatility in Silver Mining Stocks Posted: 06 Jan 2014 11:53 AM PST Even Mexico's high royalty tax on silver mining offers opportunity... CHRIS THOMPSON, trained in South Africa and with more than 20 years industry experience as a geologist, specializes in analyzing mid-cap precious metals miners. Now mining analyst with Raymond James, Chris Thompson received the 2011 Starmine No.1 Stock Picker award for the Canadian Metals and Mining Sector. Here, speaking to The Gold Report's sister title The Mining Report, he explains how investors should embrace the volatility in silver, and how – despite its higher royalty tax – Mexico remains a silver powerhouse for investors... The Mining Report: Your research reports make it clear that mine operating costs are creeping up. For investors, which should be the bigger concern, lower commodity prices or climbing operating costs? Chris Thompson: Both are a concern, but right now operating margins are an investor's biggest concern. For producers, volatility in the metal prices has led to rapidly changing operating margins. Companies are demonstrating their ability to reduce costs, but how far they need to reduce these costs will be determined by the commodity price. TMR: Do you have a threshold for operating margins; a minimum that you want to see? Chris Thompson: It depends on the metal price forecast, but we're happiest with a 50%+ operating margin on the company's total cash cost. TMR: What are your gold and silver price forecasts for 2014? Chris Thompson: We have silver at $25 per ounce. Historically, that is not unrealistic, although it is a significant premium to today's $20 per ounce price. Our gold forecast is $1400 per ounce. TMR: Do you calculate the correlation of equities to the daily spot price? Chris Thompson: We calculate correlation coefficients for equity valuations and market valuations relative to metal prices. At the moment, pure play precious metal producers, especially the silvers, correlate very well in many respects with the silver price. TMR: Some miners publish cost-per-ton numbers; others don't. How does the average investor calculate cost-per-ton for silver? Chris Thompson: That's a metric I use a lot because from an operating perspective, it's one of the most relevant metrics in the metals space. It's a metric with a lot of components, including mining costs, processing costs and general and administrative costs – all calculated on a per-ton mill basis. Adding those components together gives you a cost-per-ton milled, which is a pure reflection of mine site operating costs per ton. TMR: What would be a favorable cost-per-ton in today's market environment for a silver mine and a gold mine? Chris Thompson: You need to recognize that the operating cost on a per-ton basis is only one part of the story. We need to look at the metal value or the metal that's encased in rock and the company's capacity to beneficiate that metal. To answer that question, you have to look at grade, as well as metallurgical recoveries. On a cost-per-ton basis, a mine may be a very high cost producer, but it may also be very profitable based on high grade and good metallurgical recoveries. TMR: Looking at Mexico, what about the new royalty coming into play in the country: a 7.5% flat tax on EBITDA (earnings before interest, tax, depreciation and amortization deductions). How is that affecting Mexican silver producers and how are you factoring it into your calculations? Chris Thompson: The net effect is marginal for marginal producers operating marginal mines. Unfortunately, for operators that enjoy healthy operating margins, it has a much more significant effect on their ability to generate cash flow. It's very much a leveler. Furthermore, it is a deterrent on investment in Mexico. Companies have to, and are, thinking twice about exploring for, building and operating mines in Mexico. TMR: Nonetheless, you have buy ratings on just about every company that you cover there. Chris Thompson: Our buy ratings are based on our metal price forecast for 2014, and many are driven by multiples to cash flow. Remember, our 2014 silver price forecast is $25 per ounce, a full 25% higher than spot. This is reflected in high target prices relative to current market prices. Our target prices are more a reflection on valuations should silver prices strengthen to ~$25 oz. TMR: Should investors expect more volatility in precious metals prices in early 2014? Chris Thompson: Absolutely. The one thing we can expect in 2014 is pretty much what we had this year. We'll be in a very volatile space for quite some time. My advice to investors is stay with quality; stay with good management teams that have good asset bases in geopolitically secure regions. Stay with companies that can demonstrate what I call "realistic executable organic growth plans." TMR: In other words, projects already in the pipeline that should be relatively easy to finance and bring into production with high recovery rates and controllable costs. Chris Thompson: Absolutely. That is the most risk-averse focus a company can offer investors right now. In an environment where money is tight, there's little chance of projects being financed, but if they carry palatable capital costs, are attractive and the company has the right skill set to advance the assets to production, that's what the company needs to do. And it's what investors need to look for. TMR: That makes sense for midcap or small companies. For the slightly larger players, is there enough confidence in precious metal prices for them to enter a fresh round of mergers and acquisition (M&A) activity? Chris Thompson: Broadly speaking, there's very little confidence for M&A at the moment. However, within management groups that have in-house expertise to deliver on value, there is a much better appetite for M&A. TMR: What's one thing investors in the precious metals space can look forward to in 2014? Chris Thompson: More volatility, I'm afraid, if that's something to look forward to. You need to play the volatility. This is the time for people to buy stock in solid, high-quality names when the silver metal price is $19-$20 per ounce. If the silver price strengthens to ~$25 per ounce, which we think it might, it will be time to lighten the load or offload names. Often, the little stories that can deliver on all fronts are the stories that investors should gravitate to, regardless of the metal price. You have to play the volatility and acquire positions in good, solid companies when metal prices are low. At these metals prices, there's more upside potential than downside risk. TMR: Chris, thank you for your time and your insights. |
| Playing Volatility in Silver Mining Stocks Posted: 06 Jan 2014 11:53 AM PST Even Mexico's high royalty tax on silver mining offers opportunity... CHRIS THOMPSON, trained in South Africa and with more than 20 years industry experience as a geologist, specializes in analyzing mid-cap precious metals miners. Now mining analyst with Raymond James, Chris Thompson received the 2011 Starmine No.1 Stock Picker award for the Canadian Metals and Mining Sector. Here, speaking to The Gold Report's sister title The Mining Report, he explains how investors should embrace the volatility in silver, and how – despite its higher royalty tax – Mexico remains a silver powerhouse for investors... The Mining Report: Your research reports make it clear that mine operating costs are creeping up. For investors, which should be the bigger concern, lower commodity prices or climbing operating costs? Chris Thompson: Both are a concern, but right now operating margins are an investor's biggest concern. For producers, volatility in the metal prices has led to rapidly changing operating margins. Companies are demonstrating their ability to reduce costs, but how far they need to reduce these costs will be determined by the commodity price. TMR: Do you have a threshold for operating margins; a minimum that you want to see? Chris Thompson: It depends on the metal price forecast, but we're happiest with a 50%+ operating margin on the company's total cash cost. TMR: What are your gold and silver price forecasts for 2014? Chris Thompson: We have silver at $25 per ounce. Historically, that is not unrealistic, although it is a significant premium to today's $20 per ounce price. Our gold forecast is $1400 per ounce. TMR: Do you calculate the correlation of equities to the daily spot price? Chris Thompson: We calculate correlation coefficients for equity valuations and market valuations relative to metal prices. At the moment, pure play precious metal producers, especially the silvers, correlate very well in many respects with the silver price. TMR: Some miners publish cost-per-ton numbers; others don't. How does the average investor calculate cost-per-ton for silver? Chris Thompson: That's a metric I use a lot because from an operating perspective, it's one of the most relevant metrics in the metals space. It's a metric with a lot of components, including mining costs, processing costs and general and administrative costs – all calculated on a per-ton mill basis. Adding those components together gives you a cost-per-ton milled, which is a pure reflection of mine site operating costs per ton. TMR: What would be a favorable cost-per-ton in today's market environment for a silver mine and a gold mine? Chris Thompson: You need to recognize that the operating cost on a per-ton basis is only one part of the story. We need to look at the metal value or the metal that's encased in rock and the company's capacity to beneficiate that metal. To answer that question, you have to look at grade, as well as metallurgical recoveries. On a cost-per-ton basis, a mine may be a very high cost producer, but it may also be very profitable based on high grade and good metallurgical recoveries. TMR: Looking at Mexico, what about the new royalty coming into play in the country: a 7.5% flat tax on EBITDA (earnings before interest, tax, depreciation and amortization deductions). How is that affecting Mexican silver producers and how are you factoring it into your calculations? Chris Thompson: The net effect is marginal for marginal producers operating marginal mines. Unfortunately, for operators that enjoy healthy operating margins, it has a much more significant effect on their ability to generate cash flow. It's very much a leveler. Furthermore, it is a deterrent on investment in Mexico. Companies have to, and are, thinking twice about exploring for, building and operating mines in Mexico. TMR: Nonetheless, you have buy ratings on just about every company that you cover there. Chris Thompson: Our buy ratings are based on our metal price forecast for 2014, and many are driven by multiples to cash flow. Remember, our 2014 silver price forecast is $25 per ounce, a full 25% higher than spot. This is reflected in high target prices relative to current market prices. Our target prices are more a reflection on valuations should silver prices strengthen to ~$25 oz. TMR: Should investors expect more volatility in precious metals prices in early 2014? Chris Thompson: Absolutely. The one thing we can expect in 2014 is pretty much what we had this year. We'll be in a very volatile space for quite some time. My advice to investors is stay with quality; stay with good management teams that have good asset bases in geopolitically secure regions. Stay with companies that can demonstrate what I call "realistic executable organic growth plans." TMR: In other words, projects already in the pipeline that should be relatively easy to finance and bring into production with high recovery rates and controllable costs. Chris Thompson: Absolutely. That is the most risk-averse focus a company can offer investors right now. In an environment where money is tight, there's little chance of projects being financed, but if they carry palatable capital costs, are attractive and the company has the right skill set to advance the assets to production, that's what the company needs to do. And it's what investors need to look for. TMR: That makes sense for midcap or small companies. For the slightly larger players, is there enough confidence in precious metal prices for them to enter a fresh round of mergers and acquisition (M&A) activity? Chris Thompson: Broadly speaking, there's very little confidence for M&A at the moment. However, within management groups that have in-house expertise to deliver on value, there is a much better appetite for M&A. TMR: What's one thing investors in the precious metals space can look forward to in 2014? Chris Thompson: More volatility, I'm afraid, if that's something to look forward to. You need to play the volatility. This is the time for people to buy stock in solid, high-quality names when the silver metal price is $19-$20 per ounce. If the silver price strengthens to ~$25 per ounce, which we think it might, it will be time to lighten the load or offload names. Often, the little stories that can deliver on all fronts are the stories that investors should gravitate to, regardless of the metal price. You have to play the volatility and acquire positions in good, solid companies when metal prices are low. At these metals prices, there's more upside potential than downside risk. TMR: Chris, thank you for your time and your insights. |
| Posted: 06 Jan 2014 11:52 AM PST Jim Sinclair's Commentary Gold’s flash crash of January 6th is the first since $1900 that such took place, and there was no immediate follow through on the downside. Rather than a downside follow through it was an immediate recovery into positive territory. This is a very positive sign for the Gold markets future. Jim... Read more » The post In The News Today appeared first on Jim Sinclair's Mineset. |
Some have asked the question, "Why does it even matter?" when it comes to whether we still have the gold in Ft. Knox or not. They say, "Who cares, nobody uses gold to settle trade anymore." Even Ben Bernanke has testified (perjured himself) in front of Congress and said, "Gold is not money, it is an asset." Based on this (il) logic it then goes that even if the vaults are empty it "doesn't matter."
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