Gold World News Flash |
- Three Breakouts in Gold and Silver Stocks
- Fukushima Is The End Of The World / Global Radiation Meltdown
- 999 Silver, US dollar reform, US Bond market
- Putin Has Nuclear Economic Bomb-Jim Sinclair
- JPY Ramp Rescues Stocks (For Now) From Plunge To 3-Week Lows
- A St Patrick’s Weekend Tale of The Discovery of a 2100 Year Old Golden Hoard
- Yuan Implied Volatility Spikes To 2-Year High As PBOC Widens Trading Bans (Slows Carry Trade)
- Robert Fitzwilson: Ukraine may be tipping point for central bank market rigging
- Russia has big advantage in confrontation over Ukraine, Sinclair says
- Jim Sinclair : Russia Can Collapse The American Economy
- Gold’s Protection Against Counterparty Risk Is Coming Alive
- ALERT -- China and Russia Threaten to Destroy the Dollar
- 'Cash-On-The-Sidelines' Fallacies And Restoring The "Virtuous Cycle" Of Economic Growth
- Economic Collapse 2014 -- Evidence Of The Coming Economic Meltdown
- Gold trading to open up to foreigners in Shanghai
- Gold control is more powerful than military force, GATA secretary tells KWN
- Western European Banks Vulnerable to Ukrainian Sovereign Debt Crisis
- The Shocking Secret U.S. Is Hiding From Ukraine & The World
- Watch Gold Sentiment For A Confirmation Of Its New Bull Market
- Gold Investors Weekly Review – March 14th
- DOLLAR COLLAPSE - Did Russia Just Move Its Treasury Holdings Offshore?
- Fiat Money and Business Cycles in Emerging Markets
- Koos Jansen: New York Fed lying about gold storage
- In TF Metals Report inteview, GoldMoney's Turk describes his scenario for gold's rise
- George Galloway : In Ukraine The Frankenstein Monster is out of Control
- Gold Continues Higher as Mining Stocks Outperform
- Monster Silver Price Rally Brewing
- Gold Stocks Golden Rocket – Best of the Breed
- Current Economic Collapse News Brief
- Pento: Money printing isn't recovery / Von Greyerz: Depositor's gold wasn't there
- Jim’s Mailbox
- Swiss Bank Refuses To Give Client His Physical Gold
- Watch Fed’s Fiat “Dollar” More Closely For Clues About Gold and Silver Prices
- Gold And Silver - Start Watching Fed's Fiat 'Dollar' More Closely For Clues
- Gold for Investors In Need of Financial Safety
- Can Gold and Interest Rates Move Higher at the Same Time?
- Sprott - The Single Greatest Danger Facing The World Today
- A 'golden cross' likely for gold next week, Sprott tells KWN
- The Gold Price is in the Middle of a Rally, Up $40.90 this Week
- The Gold Price is in the Middle of a Rally, Up $40.90 this Week
- Hugo Salinas Price: We cannot get away from gold or silver
- Alasdair Macleod: The bursting of China's credit bubble
- Is Endeavour Silver Corp Well Positioned for 2014?
- Ambrose Evans-Pritchard: Fire sale of US Treasuries warns of acute stress across the world
- Was that Russia transferring dollar holdings offshore?
- Koos Jansen: Abandoning gold standard enriched financial class
- Delusions About the Origin of an Economic Recovery
- James McShirley: The curious case of the PM fix vs. the AM fix
- Sprott may join manipulation suit; von G says asset gains in dollars are illusory
- Gold Daily and Silver Weekly Charts - Gold Continues Higher as Miners Outperform
| Three Breakouts in Gold and Silver Stocks Posted: 17 Mar 2014 12:33 AM PDT I’ve shown you several comparison charts with the HUI, GLD and SLV that shows they all tend to breakout at roughly the same time. One can sometimes be stronger than the others but they tend to breakout at the same time. This week was no exception. All three broke out of their consolidation patterns this week. Who would have thunk it. |
| Fukushima Is The End Of The World / Global Radiation Meltdown Posted: 16 Mar 2014 11:08 PM PDT The events at Fukushima unfolded in a cascade of disasters, each one more frightening than the last. The massive earthquake and tsunami, the nuclear meltdowns, the explosions, the desperate attempts to keep fuel rods from overheating and, finally, the leaks of radioactive water into the Pacific... [[ 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! ]]  |
| 999 Silver, US dollar reform, US Bond market Posted: 16 Mar 2014 08:00 PM PDT from Alexiscom1: |
| Putin Has Nuclear Economic Bomb-Jim Sinclair Posted: 16 Mar 2014 07:59 PM PDT By Greg Hunter's USAWatchdog.com (Early Sunday Release) Dear CIGAs, World renowned gold expert Jim Sinclair is worried about the crisis in Ukraine. Sinclair says, "Welcome back to the cold war that can get hot overnight." It appears President Obama has brought back the Cold War, and Sinclair contends, "He's brought it back by changing to... Read more » The post Putin Has Nuclear Economic Bomb-Jim Sinclair appeared first on Jim Sinclair's Mineset. |
| JPY Ramp Rescues Stocks (For Now) From Plunge To 3-Week Lows Posted: 16 Mar 2014 07:19 PM PDT When S&P 500 futures opened they tumbled ten points very quickly along with JPY crosses. This pressed US stocks to their lowest intraday level since 2/24, hovering at key post-correction lows support. However, thanks to an impressive liftathon in JPY-carry, S&P futures rallied all the way back to green - until China opened with its wider trading bands slowing carry-traders. Gold prices surged (as stocks fall) then fell back (as stocks rallied) and are now unchanged. Key overnight will be Europe's reaction as Germany appeared to edge away from sanctions against Russia while Barroso and Van Rompuy were all-guns-blazing.
Gold prices jumped above $1390 as they opened but faded back as stocks recovered...
S&P futures hit 3-week lows...
But were rescued by a JPY ramp... until China opened...
Charts: Bloomberg |
| A St Patrick’s Weekend Tale of The Discovery of a 2100 Year Old Golden Hoard Posted: 16 Mar 2014 07:00 PM PDT by argentus maximus, TF Metals Report:
Happy St Patrick’s Weekend everybody. Here is an interesting story about some really old gold. Enjoy Argentus Maximus The author posts daily commentary on the gold and silver markets in the TFMR forum: The Setup For The Big Trade. More information about the author & his work can be found here: RhythmNPrice. |
| Yuan Implied Volatility Spikes To 2-Year High As PBOC Widens Trading Bans (Slows Carry Trade) Posted: 16 Mar 2014 06:12 PM PDT While Goldman is quickly down-playing the decision by the PBOC to double the size of the daily trading bands for USDCNY to +/2.0% as a risk-off event (just as it was in 2012 - but blame that on Greece as cause rather than symptom), BofA is a little less sanguine about the move noting a more volatile CNY/USD without trend appreciation will deter hot money inflow and perhaps will result in some unwinding of previous inflow. With 1-month volatility spiking to over 4% (its highest in over 2 years), the move is sure to remove some carry traders as risk-rewards break down on their leveraged positions.
Implied volatility is dramatically higher (i.e. the market is pricing in expectations of more volatility going forward) which reduces the risk-reward characteristics of the carry trade and thus removes many players (or at best merely reduces their leverage)...
Via BofAML, The PBoC widens CNY/USD daily trading band to +/-2.0% The PBoC on 15 March announced to widen the yuan-dollar (CNY/USD) daily trading band to +/-2.0% from +/-1.0%, effective from 17 March. The previous band widened took effect on 16 April 2012 when the band was widened from +/-0.5% to +/-1.0%.
This should not be a big surprise to the markets as the PBoC has made it clear recently that it would widen the band this year. Perhaps the timing of this band widening is slightly ahead of what markets had expected. What's the most important message? The band widening strengthens the PBoC's signal that the one-way bet on CNY gain is over, and we should expect more CNY/USD volatility going forward. In the PBOC's own words, two-way yuan fluctuation will become the norm. In the past month we have observed falling interbank rates and falling CNY/USD in China. We believe these moves were engineered and coordinated by the PBoC to solve the dilemma (rising rates, rising hot money inflow and rising CNY) it was facing in 2013. Where can the CNY/USD exchange rate go? Chinese policymakers and academia have reached the consensus that the current USD/CNY (spot rate was 6.15 as of 14 March) is very close to its equilibrium level, so perhaps we will see neither trend appreciation nor trend depreciation in the near term. In the medium to long term, the equilibrium value of CNY/USD will be determined by a number of factors including money supply and inflation in China and the US. What's next step regarding China's FX regime reform? We believe the PBoC won't stop here, but further band widening is of little meaning. A much more important and meaningful reform is to change the mechanism on setting the daily fixing of CNY/USD. In our view, China will eventually shift to a market-based FX regime. As an intermediate step, China could peg yuan to a basket of currencies weighted by the importance of its trading partners. More specifically, the Singapore's BBC (Basket, Band and Crawl) regime seems to be favored. A reform towards a real managed float such as the "BBC" system requires a group of more confident and pragmatic political leaders who are true believers of markets. We think the time is ripe as the current leaders, who consolidated their power base at a much faster pace than expected in 2013, are market oriented. What's the impact on capital flow and growth? What's the impact on money flow and the economy? In our view, a more volatile CNY/USD without trend appreciation will deter hot money inflow and perhaps will result in some unwinding of previous inflow. However, it should not be a big worry as China's has a massive US$4.0tn FX reserves, 20% reserve requirement ratio (RRR) and only 67% loan-to-deposit ratio. If capital outflow risks the stability of interbank liquidity and base money supply, the PBoC has a big room to inject liquidity by cutting RRR or purchasing government bonds. So the only thing we need here is a more flexible PBoC which closely monitors interbank liquidity and interbank rates. Chinese exporters will overall benefit from the band widening which sends strong signal of the end of one-way appreciation of CNY/USD. Note last year CNY appreciated around 6% against its basket, putting big pressure on Chinese exporters. |
| Robert Fitzwilson: Ukraine may be tipping point for central bank market rigging Posted: 16 Mar 2014 04:48 PM PDT 7:49p ET Sunday, March 16, 2014 Dear Friend of GATA and Gold: Central banks can't get away with rigging every market forever, fund manager Robert Fitzwilson of the Portola Group tells King World News tonight, and he wonders whether the confrontation between Russia and the West over Ukraine will be the tipping point. His commentary is posted at the KWN blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/3/16_Co... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT How to profit with silver -- Future Money Trends is offering a special 16-page silver report with profiles of nine companies and technical analysis of their stock performance. Six of the companies have market capitalizations of less than $800 million and one company has a market cap of only $30 million. The most exciting of these companies will begin production in a few weeks and has a market cap of just $150 million. Half of all proceeds from the sale of this report will be donated to the Gold Anti-Trust Action Committee to support its efforts exposing manipulation and fraud in the gold and silver markets. To learn about this report, please visit: http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp... Join GATA here: Mines and Money Hong Kong http://www.minesandmoney.com/hongkong/ Porter Stansberry Natural Resources Conference Canadian Investor Conference 2014 http://cambridgehouse.com/event/25/canadian-investor-conference-2014-inc... * * * 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 |
| Russia has big advantage in confrontation over Ukraine, Sinclair says Posted: 16 Mar 2014 04:40 PM PDT 7:42p ET Sunday, March 16, 2014 Dear Friend of GATA and Gold: Russia has a big advantage in any confrontation with the United States over the Crimea and Ukraine, gold advocate and mining entrepreneur Jim Sinclair tells Greg Hunter at USA Watchdog tonight. For the United States to impose economic sanctions against Russia, Sinclair says, would be "the same as shooting yourself in the foot." All Russia has to do to upend the West, Sinclair says, is to get choosy about which currencies it accepts in payment for its energy exports. Sinclair's interview with USA Watchdog is headlined "Putin Has Nuclear Economic Bomb -- Jim Sinclair" and it's posted here: http://usawatchdog.com/putin-has-nuclear-economic-bomb-jim-sinclair/ CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT How to profit with silver -- Future Money Trends is offering a special 16-page silver report with profiles of nine companies and technical analysis of their stock performance. Six of the companies have market capitalizations of less than $800 million and one company has a market cap of only $30 million. The most exciting of these companies will begin production in a few weeks and has a market cap of just $150 million. Half of all proceeds from the sale of this report will be donated to the Gold Anti-Trust Action Committee to support its efforts exposing manipulation and fraud in the gold and silver markets. To learn about this report, please visit: http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp... Join GATA here: Mines and Money Hong Kong http://www.minesandmoney.com/hongkong/ Porter Stansberry Natural Resources Conference Canadian Investor Conference 2014 http://cambridgehouse.com/event/25/canadian-investor-conference-2014-inc... * * * 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 |
| Jim Sinclair : Russia Can Collapse The American Economy Posted: 16 Mar 2014 04:26 PM PDT Jim Sinclair: Russia Can Collapse US Economy, Gold Update, Silver is Gold on Steroids & More ...Gold expert Jim Sinclair is issuing a warning of a massive downside risk to U.S. sanctions against Russia. Sinclair says watch the "struggling dollar" and Russia accepting any currency for oil and... [[ 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! ]]  |
| Gold’s Protection Against Counterparty Risk Is Coming Alive Posted: 16 Mar 2014 03:35 PM PDT History repeats itself. Although it does not repeat exactly in the same way, it rhymes. Consider this, exactly one year ago, on March 16th, Cyprus reached the newswires globally with the announcement of its bank bail-ins. One year later, the geopolitical escalation between Ukraine and Russia is front stage. Just moments ago, the long awaited referendum in Crimea resulted in an overwhelming 95% of votes to join Russia, according to Reuters. The Western world, even before the closing of the referendum, has officially stated that it denies the results. Think about this. Crimea has 2 million inhabitants, a GDP of $4.3 billion, an average monthly salary of $290, a budget deficit $1 billion. Its GDP is 0,02% of the US GDP. Yet, the US government, along with "its friends and allies", feels the need to intervene in Putin's backyard. Why? Motives of the West become much more clear when looking below the surface, in this case literally. It appears that Crimea has a capacity of 7 million tons of oil production per year. Moreover, ExxonMobil and Royal Dutch Shell have closed a deal (although currently on hold) worth $1 billion. As far as Ukraine is concerned, it is a central hub of energy supply to the West, in particular gas. Now there is nothing new to this. All geopolitical tensions of the last decades were centered around oil, gas or other commodities. Think of Iraq two decades ago, Syria very recently, and a dozens of other examples in between. However, there are important reasons why "this time could really be different." Next to the tensions in Russia, there are signs that the Chinese credit bubble, the biggest credit bubble in history, is cracking. Chinese bank assets expressed in US Dollars currently exceed 25 trillion, while US bank assets are close to 14 trillion USD. Chinese credit doubled since 2009. The most concerning news, however, is under the hood. Zerohedge cited Bank of America, when they discovered that one of the large trusts (CITIC) "tried to auction the collateral but failed to do so because the developer has sold the collateral and also mortgaged it to a few other lenders." The fundamental issue here is that an economic crisis, which seems developing, could be very different this time. The effect could really be dramatic. The reason why "this time is different" is directly related to the worsening debt crisis, which is inherently linked to the currency wars. The US is playing a key role here. Why? During all previous escalations, the US, with its global dominance, was in a better economic shape than it is today. And so was the rest of the world. Think about these global facts and figures:
What this means in plain simple terms is that the financial system is extremely leveraged, highly sensible to an external shock. All major economies and, hence, the whole world, is inherently vulnerable. Unfortunately, the first signs of cracks are there, as evidenced by several facts in the last two weeks. First, Friday's reported data about US Treasuries from foreigners held by the Fed, has shown a drop of $104.5 billion. Zerohedge notes: "This was the biggest drop of Treasurys held by the Fed on record, i.e., foreigners were really busy selling. This brings the total Treasury holdings in custody at the Fed to levels not seen since December 2012, a period during which the Fed alone has monetized well over $1 trillion in US paper." The following chart says it all. Why is this important? US Treasuries are the backbone of the world monetary system, at least as long as the US dollar is the world reserve currency. Think about this: China held $1.269 trillion of US Treasuries and Japan $1.183 trillion at the end of December, while Russia held $138.6 billion. After the US sent out warnings to Russia, China openly chose the side of Russia. Below the surface, however, "someone" sent a very strong signal to the US, and, by doing so, to the world, by withdrawing record amounts of US Treasuries. This is economic warfare at a level not seen to date, because of the current extremes in the monetary system. Second, in terms of international currencies, Russia is very likely to engage with China more actively in bilateral trade with the ultimate goal to transact in their own currencies, not the US Dollar. It is not unthinkable that they will use gold. As Ambrose Evans noted this week, the latest financial ructions go beyond Russia, they reek of stress in the international system. "Countries are intervening all over the place to defend their currencies, which means they are tightening. Their central banks built up huge war chests of reserves for a rainy day, and now it is raining," said the currency chief at HSBC. One of the biggest concerns for the US in particular would arise when Russia, backed by China, will start trading oil for gold, as we wrote in "Russia Touches U.S. Achilles Heel: Petrogold instead of Petrodollar." Similar attempts of other countries in the past were not very effective. Think of Iraq or Turkey recently. But with major countries like Russia or China front stage, this has the potential to truly disrupt the US Dollar, and, hence, the world monetary system. Note that the US Dollar has been a safe haven currency in the last years and even decades. Political tensions and wars have resulted in a flight to the dollar. Not so this time. In fact, since the tensions in Ukraine started a couple of weeks ago, the US Dollar index has turned down. Now what is the key take-away of all this? We see a confirmation of three fundamental (big picture) trends. First, central bank control is an illusion. As hard as central banks are trying to achieve some specific goals, think of zero interest rates, inflation or GDP growth, it is ultimately the market that will determine what will happen. Look at the recent evolutions as described above. Even the most powerful countries on this planet cannot control market forces. Their power looks convincing in "normal market circumstances," but the truth is they are powerless in times of stress in the market. In that context, we think it is appropriate to quote John Williams, researcher at Shadowstats.com, when he recently explained what would happen if there was a massive dollar dumping globally. "It would be disastrous for our markets. All those excess dollars coming in, with bonds being sold, interest rates would spike. The stock market would sell off and we would see inflation. To prevent that and try and keep things stable, the Fed would tend to buy up those Treasuries. It would intervene wherever it could to stabilize the circumstance." Second, paper assets are in a secular decline. It really does not matter that US and some European equities are at trading at all-time highs. They are doomed to fail till the bear cycle is over. Why? Because the inherent weakness of our financial system, with the US Dollar vulnerability at its heart, built on fiat. The fact that Russia's stock market is being hit recently seems not to be of the highest importance for Putin. We agree with Zerohedge when they wrote that "for Putin it is orders of magnitude more important to have the price of commodities, primarily crude and gas, high than seeing the illusion of paper wealth, aka stocks, hitting all time highs." It really is no coincidence that most countries, including Russia, China, and the likes, have been adding to their gold reserves for several years. This brings up the third long term trend: gold is in a secular uptrend. Yes, the gold price sold off in 2013. No, the price of gold is not the only aspect that matters. What is far more important is the protection one gets from physical gold. Gold's protection serves individuals as well as countries. The "Golden Rule" will continue to be relevant to countries: he who holds the gold rules. Quoting Michael Noonan: "The transition of physical gold from West to East is disrupting the elites domination of the entire financial world. The East has been saying "Enough is enough." In our view, that is reflected in Eastern physical gold accumulation. To individuals, what matters is that physical gold is immune to counterparty risk. And this, ladies and gentlemen, we believe is the key take-away from the ongoing economic and financial turmoil. All those dollars, Treasuries, stocks, derivatives, e.a., running a risk to become the object of the new economic warfare, in the context of extreme leverage and excess liquidity, has one and only one antidote: unencumbered ownership of physical gold and silver.
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| ALERT -- China and Russia Threaten to Destroy the Dollar Posted: 16 Mar 2014 02:30 PM PDT Russia Threatens to Drop The Dollar and Crash The U.S. Economy if Sanctions Are Imposed - Obama Signs Sanctions Anyway Thanks to StormCloudsGathering fo compiling the data that was used in this video. Visit his channel and consider subscribing! Is Russia bluffing, or is the world as we know it... [[ 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! ]]  |
| 'Cash-On-The-Sidelines' Fallacies And Restoring The "Virtuous Cycle" Of Economic Growth Posted: 16 Mar 2014 02:20 PM PDT As we explained in great detail recently, the abundance of so-called cash-on-the-sidelines is a fallacy, but even more critically the we showed the belief that these 'IOUs of past economic activity' would immediately translate into efforts to deploy them into future economic activity is also entirely false. Simply put, there is no relationship between corporate cash and subsequent capital expenditure, nor is the level of capital expenditure even well-correlated with the level of real interest rates. At this point, as John Hussman explains, it should be clear that the mere existence of a mountain of IOUs related to past economic activity is not enough to provoke future economic activity. What matters instead is the same thing that always matters: Are the resources of the economy being directed toward productive uses that satisfy the needs of others?
The fallacy of cash piles on the balance sheet meaning strong balance sheets...
and Proposition 1: Corporate cash is high, and therefore, businesses should put that cash to work through capex. Comments: This is the most obviously deceptive of the four propositions, hence Mark Spitznagel’s incredulous response when asked to address cash balances by Maria Bartiromo last week. As Spitznagel explained, it makes little sense to isolate the cash that sits on corporate balance sheets without netting the credit portions of both assets and liabilities. We last updated corporations’ net credit position here, showing that gradual increases in cash balances are dwarfed by rising debt. A longer history further disproves the proposition; it shows that there’s no correlation between capex and corporate cash:
So how do we restore growth? Via Hussman's Funds' Weekly Insight, To the extent that such desirable activities exist – whether as consumption goods or as investment goods like machines, the act of bringing them forward not only engages existing resources (such as factory capacity and labor), but also creates new income that can be used to purchase yet other desirable products. This is what creates a virtuous circle of economic activity and growth. Not quantitative easing, not suppressed interest rates, not speculation. The resources of the economy must be channeled toward activities that are actually productive, desirable, and useful to others. When this doesn’t occur – when companies produce output that isn’t wanted, when capital investments are made that aren’t productive, when housing is constructed at a pace that exceeds the sustainable demand and ability to finance it – the act of production and the resources of the economy are wasted. That is really the narrative of the past 14 years, and is largely the result of repeated bouts of Fed-induced speculation and misallocation. Robert Blumenthal recently wrote an excellent essay describing the economic costs of such “malinvestment.” At the moment that a person uses their labor to produce something of value to others, that person’s own income is enhanced, and the ability to purchase the output of others is also created. As economist Jean-Baptiste Say wrote, “A product is no sooner created than it, from that instant, affords a market for other products to the full extent of its own value… Thus the mere circumstance of creation of one product immediately opens a vent for other products.” In a healthy economy, the productive activity of one sector opens a vent for the productive activity of other sectors of the economy. The useful allocation of resources in one area of the economy reinforces the useful allocation of resources in another. Economic growth continues as the efforts of each sector focus on the production of those things that will be of demand and use to others. Each productive act is not simply an event, but contributes momentum to a virtuous cycle. The difficulty emerges when something is brought into production that is not desired – that fails to align with the actual demand for it. In that event, the value of the product itself may be less than the value of the resources committed to its production. Since it is not consumed, it simultaneously becomes “savings” and “unwanted inventory investment.” Long-term growth is harmed, because economic effort and resources are wasted and fail to open a vent for other production. If this occurs at a large scale, jobs are lost, inventories build, and the economy suffers the long-term effects of misallocated activity. When we review the economic narrative of the past 14 years, this is exactly what we observe. The first insult occurred during the excesses of the tech bubble and the severe misallocation of capital that resulted. Next, in response to the economic downturn in 2000-2002, the Federal Reserve held interest rates down in the hope of reviving interest-sensitive spending and investment. Instead, the suppressed interest rate environment triggered a “reach for yield” that found itself concentrated in enormous demand for mortgage securities. Wall Street was more than happy to provide the desired “product,” but could do so only by creating new mortgages by lending to anyone with a pulse. The resulting housing bubble became a second episode of severe capital misallocation, and led to the economic collapse of 2008-2009. In response to that episode, the Federal Reserve has now produced and largely completed a third phase of speculative malinvestment, this time focused on the equity market. On historically reliable valuation measures, equity prices are now double the level at which they would be likely to provide historically normal returns. As in 2000, three-quarters of the record new issuance of equities is now dominated by companies that have no earnings. The valuation of the median stock is now higher than it was at the 2000 peak. NYSE margin debt as a percent of GDP exceeds every point in history except the March 2000 peak. All of this will end badly for the equity market, but the real insult is what this constant malinvestment has done to the long-term prospects for U.S. economic growth and employment. The so-called “dual mandate” of the Federal Reserve does not ask the Fed to manage short-run or even cyclical fluctuations in the economy. Instead – whether one believes that the goals of that mandate are achievable or not – it asks the Fed to “maintain long run growth of the monetary and credit aggregates commensurate with the economy's long run potential to increase production, so as to promote effectively the goals of maximum employment, stable prices and moderate long-term interest rates.” What the Fed has done instead is to completely lose control of the growth of monetary aggregates, in an effort to offset short-run, cyclical fluctuations in the economy, so as to promote maximum speculative activity and repeated bouts of resource misallocation, and ultimately damage the economy’s long-run potential to increase production and promote employment. In the face of our concerns about long-run consequences, some might immediately appeal to Keynes, who trivialized prudence and restraint, saying “In the long run, we are all dead.” But we are not talking about decades. The insults to the U.S. economy, to U.S. labor force participation, and to the long-term unemployed are the largely predictable result of policies that have been pursued in the past decade alone. On the fiscal policy side, there are numerous initiatives that – when properly focused on productivity and labor force participation – could easily be self-financing for the economy in aggregate. Too much of our fiscal deficit has nothing to do with productivity or inducements that reward economic activity. Productive infrastructure (ideally projects that have large distributed effects, as opposed to notions like rural broadband), alternative energy, earned income tax credits, tying extended unemployment compensation to some sort of activity requirement (community, internship or otherwise), small business loans and tax credits tied to job creation and retention, investment and R&D credits, and other initiatives fall into this category. The objective is for the private markets to retain a vested interest and exposure to some amount of risk, so that losses and unproductive decisions remain costly, but also for fiscal initiatives to ease constraints that are binding on private decision-making. On the monetary policy side, it’s simply time to change course to a far less "elastic," rules-based policy. With $2.5 trillion in excess reserves within the banking system, even one more dollar of quantitative easing is harmful because it perpetuates financial distortion and speculative activity while doing nothing to ease any constraint in the economy that is actually binding. Fortunately, it actually appears that the FOMC increasingly recognizes this, as attention has gradually focused on questions about policy effectiveness and financial risk, and away from the weak hope for positive effects. We will have to see how long this insight persists, but statements from FOMC officials increasingly reflect the intention to “wind down” QE, and emphasize the “high bar” that would be required to move away from that stance. The cyclical risk for the U.S. equity market is already baked in the cake, and we view downside potential as substantial. The economy would allocate capital better, and to greater long-term benefit, if interest rates were at levels that rewarded savings and discouraged untethered growth in fiscal deficits. The economy would also allocate capital better if equity valuations were closer to historical norms (unfortunately about half of present levels given the extent of present distortions). While the capital markets are likely to undergo a great deal of adjustment in the coming years, we don’t anticipate systemic economic risks similar to the 2007-2009 period. We do observe a buildup of inventories in recent quarters that, combined with disruptions abroad, seem likely to contribute to economic weakness, but there are numerous episodes in history when stock market losses were not associated with steep economic losses. The largest economic risks are particularly likely to emerge in Asia, where “big bazooka” central bank policies and speculative overinvestment have also produced large and persistent misallocation. China and Japan are of principal concern, though many smaller developing countries outside of Asia also appear at risk. Policy makers should certainly focus on areas where exposure to foreign obligations, equity leverage, and credit default swaps would produce sizeable disruptions. In any event, I believe it is urgent for investors to recognize the current position of the U.S. equity market in the context of a complete market cycle. As I noted in the face of similar conditions in 2007, my expectation is that any “put option” still provided by the Federal Reserve has a strike price that is way out-of-the-money. |
| Economic Collapse 2014 -- Evidence Of The Coming Economic Meltdown Posted: 16 Mar 2014 01:30 PM PDT U.S. workers are taking home the smallest share of the income pie that has ever been recorded. The top 1% have all the income now and they are not spending it. No consumer spending, no demand, no new jobs, ... Walmart has killed this country now after the massive damage is done and they have... [[ 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! ]]  |
| Gold trading to open up to foreigners in Shanghai Posted: 16 Mar 2014 12:46 PM PDT By Daniel Ren http://www.scmp.com/business/commodities/article/1450182/gold-trading-op... SHANGHAI -- The Shanghai Gold Exchange is poised to get the jump on other mainland equity and commodity trading bourses by launching a gold trading platform in the city's free-trade zone open to foreign investors. Rules on the gold exchange's "international board" are being reviewed by the central bank and the foreign exchange regulator, and an imminent approval is expected, according to exchange officials. The platform, likely to get under way in the second half of this year, will mark a major breakthrough in the development of the free-trade zone, the mainland's first free port. ... Dispatch continues below ... ADVERTISEMENT How to profit with silver -- Future Money Trends is offering a special 16-page silver report with profiles of nine companies and technical analysis of their stock performance. Six of the companies have market capitalizations of less than $800 million and one company has a market cap of only $30 million. The most exciting of these companies will begin production in a few weeks and has a market cap of just $150 million. Half of all proceeds from the sale of this report will be donated to the Gold Anti-Trust Action Committee to support its efforts exposing manipulation and fraud in the gold and silver markets. To learn about this report, please visit: http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp... The trading platform and the warehouse will be run separately from the existing trading system in Shanghai's downtown Huangpu district, and the products will be denominated in yuan, part of Beijing's efforts to internationalise the currency. Spot and forward gold trading will be conducted on the "international board" as analysts foresee a keen interest from foreign traders. Foreign players will be invited to conduct gold trading, with liberalisation in the sector seen as creating arbitrage opportunities for them. "Gold will be an ideal trading product to spearhead the efforts to internationalise all kinds of exchanges in the free-trade zone," said Jiang Shu, a gold analyst at Industrial Bank. "The precious metal could trigger a large turnover when the international players come." Jiang, who has seen the draft rule, said domestic individual investors would not be allowed access to the platform initially. The central bank and the foreign exchange regulator were expected to grant an investment quota to overseas players for gold trading in the zone, he added. The Shanghai Gold Exchange will soon register a subsidiary, International Gold Trade Centre, in the trade zone to operate the new trading system. Foreign institutions and individuals could open accounts in the zone that are designated for gold trading. China became the world's largest gold consumer last year, overtaking India, after large falls in global prices prompted bargain hunting across the country. Domestic gold consumption reached 1,176.4 tonnes last year, up 41.4 per cent from 2012. The country produced 428.1 tonnes of gold last year, remaining the top gold producer for a seventh consecutive year. Shanghai launched the free-trade zone in September last year under Premier Li Keqiang's plans to use the 28.78-square-kilometre territory as a test bed for further economic reforms. Beijing has promised to make the yuan convertible under the capital account in the zone but has yet to give the go-ahead on this step to institutions and individuals based in the zone. A liberalised capital account could let foreign investors trade yuan-denominated equities, financial futures and commodity futures - all of which are now off-limits to them. But financial regulators remain concerned over the prospect of a surge in hot money inflows prompted by a fully convertible yuan. The Shanghai Futures Exchange set up a 5 billion yuan (HK$6.3 billion) subsidiary, Shanghai International Energy Exchange, in the free-trade zone in November last year. Yuan-denominated crude oil futures will be traded on the exchange. Foreign investors will be allowed to participate in crude oil futures trading as the mainland strives to gain pricing power on the key energy product. But sources said it would be some time before the regulators finalised a detailed trading framework. Join GATA here: Mines and Money Hong Kong http://www.minesandmoney.com/hongkong/ Porter Stansberry Natural Resources Conference Canadian Investor Conference 2014 http://cambridgehouse.com/event/25/canadian-investor-conference-2014-inc... * * * 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 |
| Gold control is more powerful than military force, GATA secretary tells KWN Posted: 16 Mar 2014 12:29 PM PDT 3:30p ET Sunday, March 16, 2014 Dear Friend of GATA and Gold: Interviewed today by King World News, your secretary/treasurer discusses the suppression of the story about the likely transfer of Ukraine's gold reserve to the United States. Control of the gold market, your secretary/treasurer adds, is a much more powerful mechanism of controlling the world than military force. The interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/3/16_Th... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Safe and Private Allocated Bullion Storage In Singapore Given the increasing risks in financial markets, it is more important than ever to own physical bullion coins and bars and to store them in the safest vaults in the world in the safest jurisdictions in the world. Gold advocates Jim Sinclair and Marc Faber have recommended Singapore. Now, with GoldCore, you can own coins and bars in fully insured, segregated, and allocated accounts in Singapore with the ability to take delivery. Learn more by downloading GoldCore's Essential Guide To Storing Gold In Singapore: http://info.goldcore.com/essential-guide-to-storing-gold-in-singapore And for more information call Daniel or Sharon at +44 203 0869200 in the United Kingdom or at +1 302 635 1160 in the United States. Or email them at info@goldcore.com. Join GATA here: Mines and Money Hong Kong http://www.minesandmoney.com/hongkong/ Porter Stansberry Natural Resources Conference Canadian Investor Conference 2014 http://cambridgehouse.com/event/25/canadian-investor-conference-2014-inc... * * * 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: |
| Western European Banks Vulnerable to Ukrainian Sovereign Debt Crisis Posted: 16 Mar 2014 11:50 AM PDT James Henry: European banks in countries like Germany and Austria have a vested interest in a stable Ukraine because of trillions in outstanding debt American taxpayers will be bailing out Ukraine, Pres. Obama has authorized a trillion dollar budget deal a significant portion of our totaled... [[ 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! ]]  |
| The Shocking Secret U.S. Is Hiding From Ukraine & The World Posted: 16 Mar 2014 11:05 AM PDT  With so much chaos taking place around the world, today King World News spoke to the man who has been focused on uncovering sensitive government and market information for over 15 years. What he had to say will surprise KWN readers around the world. Chris Powell covered everything from what the United States is hiding about the Ukrainian gold hoard, to how the U.S. ruthlessly controls the mainstream media and the world. Below is what Powell had to say in this remarkable and timely interview.This posting includes an audio/video/photo media file: Download Now |
| Watch Gold Sentiment For A Confirmation Of Its New Bull Market Posted: 16 Mar 2014 11:03 AM PDT This article is based on the latest premium edition of the Sentimentrader report (click here for a free trial). Market sentiment towards gold and silver are analyzed and put into perspective. In the last gold sentiment update some three weeks ago (read Gold and Silver Sentiment Improving Significantly), we noted that gold just crossed its 200 day moving average for the first time in a year. That happened on an improving sentiment score. According to Sentimentrader, who analyzes sentiment in almost all markets, it was important to watch gold sentiment cross 70%. “Above-average and rising sentiment is good, as long as it doesn’t get excessive, which would occur on a move closer to 80%. Even in a bull market, that would suggest that at least some nearer-term caution would be warranted.” Where do we stand today? The latest figures, released this weekend, show that gold’s sentiment is 75% and silver 50%. That’s almost identical as 3 weeks ago, although the price stands significantly higher. It is mainly platinum and palladium that went higher significantly.
Zooming in on gold, the sentiment chart shows that gold is approaching “excessive optimism” territory, with a current reading of 75%. That’s on a par with the highest readings of the past few years, close to where it stood several weeks in the fall of 2012.
From Sentimentrader:
Indeed, it is key to watch how gold sentiment will behave with the changes in the gold price in the coming weeks. If the price goes higher and gold sentiment remains close to its current readings, it would indicate to internal strength. If the sentiment readings go significantly higher, then a pullback in price is very likely. Readers can monitor market sentiment by subscribing to the Sentimentrader report (click here for a free trial). |
| Gold Investors Weekly Review – March 14th Posted: 16 Mar 2014 10:44 AM PDT In his weekly market review, Frank Holmes of the USFunds.com nicely summarizes for gold investors this week's strengths, weaknesses, opportunities and threats in the gold market. Gold closed the week at $1,382.65, up $42.67 per ounce (3.18%). The NYSE Arca Gold Miners Index lost 0.36% on the week. This was the gold investors review of past week. Gold Market StrengthsGold rose $43.07 per ounce in the last trading week fear about Chinese macroeconomic data and geopolitical tensions in Ukraine. Furthermore, as shown on the following chart, the 50-day moving average closed less than $10 below the 200-day moving average, which implies that barring a gold collapse below $1,300 next week, we should see gold making a golden cross before the end of the week. Our analysis shows that, going back to 2000, a golden cross in gold is followed on average by a 50% rally lasting on average 15 months.
Gold ETFs appear to be back in fashion, as total known gold ETF holdings are now 870 thousand ounces higher since bottoming at 55.8 million ounces in mid-February. The ETF data comes as the situation in Ukraine reinforces gold's safe haven status and the weak macroeconomic data coming from China highlight gold's hedging properties amid a risk-off investing environment. Gold Market WeaknessesThe China Gold Association (CGA) said China's gold demand may decline by 17 percent to 250 tonnes in the first quarter of 2014, from 300 tonnes in the first quarter of 2013. Despite this fact, CGA vice chairman Zhang Yongtao expects annual demand to remain strong at 1,176 tonnes, very close to the actual annual demand for 2013. According to HSBC Research, Mr. Zhang’s forecast indicates that China’s gold demand should be stronger for the rest of 2014 after the first quarter, when compared to the same period in 2013. This may indicate that China’s strong appetite for gold is likely to be sustained well into 2014. Gold Market OpportunitiesA Royal Bank of Canada report shows similarities between the 2005 to 2008 gold price rally and the current gold price environment, which analysts believe could lead to a sustained gold price rally over the next 12 to 24 months. While still early in gold recovering from its lows, Chinese and emerging market gold demand combined with the absence of central bank selling both offset any ETF liquidations. Given the volumes seen in China recently, and the fact the Chinese market is not as price sensitive – thanks to high savings rates – Chinese demand on its own could replicate the 2005-08 ETF-driven gold rally. Gold Market ThreatsThe instability in Ukraine, together with the China hard-landing fears, has not changed Goldman Sachs' bearish view on gold. According to Jeffrey Currie, the bank's head of commodities research, the weakness in the U.S. and the turmoil in Ukraine are not driving gold. Instead, the lower mining costs mean it is more probable that gold drops below $1,000. Marc Faber on the other hand believes the near tripling of the S&P 500 since the end of the bear market in 2009, together with heavy insider selling, high valuations, and extremely high corporate profits should make any investor consider the possibility that we may be at a top of the U.S. equity cycle. A wave of weak economic data released by the Chinese government agencies this week helped propel gold higher as U.S. and Europe markets weighed the risk of a deceleration in Chinese economic growth. The weak data points released show the risk of Chinese physical gold and jewelry buyers to defer consumption to a later date. As a matter of fact, Chinese retail sales data showed growth of 11.8 percent, missing analysts' estimates for a 13.5 percent increase. As a result, gold demand from China may be lower in the short term, or until the festive and marriage season starts later in the year. |
| DOLLAR COLLAPSE - Did Russia Just Move Its Treasury Holdings Offshore? Posted: 16 Mar 2014 10:41 AM PDT Foreign central banks' Treasury bond holdings parked at the Federal Reserve dropped by the most on record in the latest week. Some analysts think the crisis in Ukraine is sparking the move.Their theory: Russia is shifting its Treasury bond holdings out of the Fed and into offshore accounts.... [[ 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! ]]  |
| Fiat Money and Business Cycles in Emerging Markets Posted: 16 Mar 2014 10:13 AM PDT Roger McKinney writes: After the stock market collapse of 2008 and a decline of 3.4 percent for U.S. GDP in 2009, investors rushed to stash funds in emerging markets (EM) where economies were growing at a 3.1 percent annual rate. But the US stock market fell in January of this year largely due to financial trouble in emerging markets. The economies of EM nations, such as, Brazil, Russia, India, Turkey, Thailand, and China, have deteriorated in part because of the withdrawal of US dollar investments from them. Here is a chart from the Institute for International Finance (IIF)[1] showing the capital flows to EM nations: |
| Koos Jansen: New York Fed lying about gold storage Posted: 16 Mar 2014 10:09 AM PDT 1:13p ET Sunday, March 16, 2014 Dear Friend of GATA and Gold: Gold researcher and GATA consultant Koos Jansen today disputes the New York Federal Reserve Bank's assertion that it returns to gold depositors the same gold bars they deposited and does this because "gold deposits are not considered fungible." But of course it appears that the gold recently recovered from the New York Fed by the German Bundesbank had been melted and recast for some reason, and Jansen notes that the Netherlands central bank has asserted that in gold leasing by central banks the gold bars recovered are not necessarily the gold bars lent. Perhaps more interesting in Jansen's commentary today is his noting the New York Fed's assertion that it does not charge storage fees to its foreign central bank gold depositors. Of course, as Jansen notes, ordinary gold vaults charge often very substantial storage fees to depositors. Could it be that custody of the gold of other nations involves control of their gold particularly and control of the gold price and currency markets generally and as such is worth infinitely more to the New York Fed and the U.S. government than the expense of vaulting? Jansen's commentary is headlined "New York Federal Reserve Lying about Gold Storage" and it's posted at his Internet site, In Gold We Trust, here: http://www.ingoldwetrust.ch/new-york-federal-reserve-lying-about-gold-st... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT How to profit with silver -- Future Money Trends is offering a special 16-page silver report with profiles of nine companies and technical analysis of their stock performance. Six of the companies have market capitalizations of less than $800 million and one company has a market cap of only $30 million. The most exciting of these companies will begin production in a few weeks and has a market cap of just $150 million. Half of all proceeds from the sale of this report will be donated to the Gold Anti-Trust Action Committee to support its efforts exposing manipulation and fraud in the gold and silver markets. To learn about this report, please visit: http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp... Join GATA here: Mines and Money Hong Kong http://www.minesandmoney.com/hongkong/ Porter Stansberry Natural Resources Conference Canadian Investor Conference 2014 http://cambridgehouse.com/event/25/canadian-investor-conference-2014-inc... * * * 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 |
| In TF Metals Report inteview, GoldMoney's Turk describes his scenario for gold's rise Posted: 16 Mar 2014 09:52 AM PDT 12:53p ET Sunday, March 16, 2014 Dear Friend of GATA and Gold: GoldMoney founder James Turk was interviewed this week by the TF Metals Report's Turd Ferguson, covering many topics, including the scenario he expects for the explosive phase of gold's price rise, the likely trigger for it, and some investment portfolio advice. The interview is 50 minutes long and can be heard at the TF Metals Report's Internet site here: http://www.tfmetalsreport.com/podcast/5579/conversation-james-turk CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT How to profit with silver -- Future Money Trends is offering a special 16-page silver report with profiles of nine companies and technical analysis of their stock performance. Six of the companies have market capitalizations of less than $800 million and one company has a market cap of only $30 million. The most exciting of these companies will begin production in a few weeks and has a market cap of just $150 million. Half of all proceeds from the sale of this report will be donated to the Gold Anti-Trust Action Committee to support its efforts exposing manipulation and fraud in the gold and silver markets. To learn about this report, please visit: http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp... Join GATA here: Mines and Money Hong Kong http://www.minesandmoney.com/hongkong/ Porter Stansberry Natural Resources Conference Canadian Investor Conference 2014 http://cambridgehouse.com/event/25/canadian-investor-conference-2014-inc... * * * 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 |
| George Galloway : In Ukraine The Frankenstein Monster is out of Control Posted: 16 Mar 2014 09:43 AM PDT One doesn't need to be a brainer to realize that it's an attempt by the CIA to ignite a war between the EU and Russia while the US of A does nothing. This helps to achieve their 2 primary goals: weaken EU and Russia and US dollar becomes a widely used and the most stable currency again. If the EU... [[ 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! ]]  |
| Gold Continues Higher as Mining Stocks Outperform Posted: 16 Mar 2014 08:52 AM PDT Gold continued punching higher after its breakout, but the less talked about story might be the performance of the mining stocks this year, which has been fairly impressive. I have intraday commentary and some relative performance charts on that here. With silver lagging a bit it looks like a 'safe haven' trade so far, and some of it has to be a relief rally from the incredibly pounding that the metals have taken since the Germans asked for the return of their gold bullion in late 2012. That apparently tipped over someone's punchbowl, and they unleashed the dogs of currency war. |
| Monster Silver Price Rally Brewing Posted: 16 Mar 2014 08:23 AM PDT On silver's 1-year chart we can see that a fine large Double Bottom is completing. We already had the breakout on good volume from the 2nd trough of this Double Bottom in the middle of February, and it was this event that has (rightly) caused traders to pile into silver, although the price hasn't moved much - yet. The better silver stocks, on the other hand, are already on fire, because the "writing is on the wall". Right now the price is consolidating following the breakout in a fine tight Flag formation, from which upside breakout looks imminent. |
| Gold Stocks Golden Rocket – Best of the Breed Posted: 16 Mar 2014 06:35 AM PDT Gold and gold stocks have be stabilizing for months and have been quietly rising. Many gold stocks are up 30% even 50% in the past three months. The $HUI AMEX Gold Bugs Index is up over 30% from the lows. If you think you have missed most of the move already you are wrong. The truth is most of the biggest rallies in stocks take place after a basing pattern with 30 -50% or more has formed. This is signaling massive accumulation in gold stocks and its happening right now by the institutions. |
| Current Economic Collapse News Brief Posted: 15 Mar 2014 04:44 PM PDT In this news brief we will discuss the latest news on the economic collapse. We look to see if things are really that different. The central bank will not stop at just confiscating your wealth they will want your life. They want to enslave the people. [[ 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! ]]  |
| Pento: Money printing isn't recovery / Von Greyerz: Depositor's gold wasn't there Posted: 15 Mar 2014 03:30 PM PDT 6:30p ET Saturday, March 15, 2014 Dear Friend of GATA and Gold: There's no economic recovery, market analyst Michael Pento tells King World News today, just monetary expansion that is pumping up asset values without creating anything: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/3/15_Ha... And Swiss gold fund manager Egon von Greyerz tells KWN about another gold investor who thought he owned real metal but couldn't get it delivered when he asked his bank for it: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/3/15_Sw... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT How to profit with silver -- Future Money Trends is offering a special 16-page silver report with profiles of nine companies and technical analysis of their stock performance. Six of the companies have market capitalizations of less than $800 million and one company has a market cap of only $30 million. The most exciting of these companies will begin production in a few weeks and has a market cap of just $150 million. Half of all proceeds from the sale of this report will be donated to the Gold Anti-Trust Action Committee to support its efforts exposing manipulation and fraud in the gold and silver markets. To learn about this report, please visit: http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp... Join GATA here: Mines and Money Hong Kong http://www.minesandmoney.com/hongkong/ Porter Stansberry Natural Resources Conference Canadian Investor Conference 2014 http://cambridgehouse.com/event/25/canadian-investor-conference-2014-inc... * * * 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: 15 Mar 2014 02:13 PM PDT Hi Jim, Have you seen this? Maybe the entire plan from the start was to dump all of their treasury holdings. If they had just dumped the treasuries under normal circumstances it would have been incredibly dollar negative and would have driven gold much higher. Has Russia been the big buyer of gold for the... Read more » The post Jim’s Mailbox appeared first on Jim Sinclair's Mineset. |
| Swiss Bank Refuses To Give Client His Physical Gold Posted: 15 Mar 2014 12:41 PM PDT  Today Egon von Greyerz surprised King World News when he said that a client of a Swiss bank was unable to get their gold, even though they had deposited the gold in physical form, out of a Swiss bank. Below is what Egon von Greyerz, who is founder of Matterhorn Asset Management out of Switzerland, had to say in his interview.This posting includes an audio/video/photo media file: Download Now |
| Watch Fed’s Fiat “Dollar” More Closely For Clues About Gold and Silver Prices Posted: 15 Mar 2014 06:23 AM PDT For the past several weeks, our commentaries have dwelled on factors unrelated to what so many other writers have focused, primarily demand from a variety of sources, shrinking supply of physical at COMEX and LBMA, lots of charts and graphs to make interesting presentations, but none of those factors have been instrumental in moving gold and silver to higher levels. Our take has been the suppression of gold and silver has come from the elites running the central banks, and by extension, all Western governments. There are battles being waged deep behind the scenes, not being made public, but visible based on developing world affairs, if one wants to connect dots without concrete proof. Ukraine is the latest prime example. The Western central banks are attacking Russia in desperation to protect failing energy sources and survival of the even faster failing Federal Reserve Note, more commonly accepted by a different name, the "dollar." It appears Cyprus was more of an attempt to freeze or capture Russian deposits from its gas/energy revenues. It was primarily the Cypriots who suffered, for little to none of the Russian deposits were confiscated. Ukraine is another front, pushed by the elites through their operative agents to stir up unrest and attempt to have Ukraine join the EU, even though Ukraine would suffer financially. The West is trying to prevent Russia from having easy access to its gas pipelines sending energy west to Europe. The US recently released some of its oil reserves onto the market, causing a sharp drop in oil prices. Ostensibly, the action was to test supply channels, etc, but in reality, the elites are doing what they can to prevent Russia from reaching the $110 per barrel it needs to maintain its economy. This is aggressive oil warfare, and it is surely doomed to fail, just like every other clumsy Western attempt to try an maintain its flagging supremacy. The amount of Treasury bonds Russia holds, and China has an even greater amount, can be used to cause more dramatic harm to the US than the US could ever hope to damage Russian influence. Case in point is the chart from the Federal Reserve that shows how foreign-held bonds are being "cashed in." There was an increase to $104.5 billion in Treasury sales from foreign sources, [wonder who could be selling?], when the average weekly weekly sales are $46.6 billion. Someone is sending a very strong message to the US that undermines the fiat "dollar." In the larger scheme of things, this is a real shot across the bow, and more of this kind of action will be taking place in the future.
An interesting question is, who did the buying? The Fed, of course, even though it may try to divert the purchases elsewhere, like it did in Belgium, recently. There is also the more likely circumstance that the Fed took in the bonds, [it had to], but kept them off the books. The bonds do not have to be paid until maturity, so the Fed postpones having to put up any more digital fiat,and as to interest, it does not have to pay any to itself. This is how the "vaunted" Fed operates, more like taking pages from Zimbabwe's play book…print, print, print. Obama, the Fed, and the elites need a way to cover their paper asses being pressed to the mat. What gets lost in all of this is gold. Gold and its control is the undercurrent behind everything that goes on. Control has been, and continues to be lost by the Western central bankers. What few people know, and what even fewer people are capable of grasping, is the extent to which the elites control every aspect of life in the Western world. Certainly they control all of the money. They also control world drug trade. [Ever wonder why the US is really in Afghanistan?] They control all corporations. They own every stock traded on the NYSE. Every aspect of the media, print, television, radio is under their control. The medical profession and pharmaceutical industry, education, travel, all forms of government, all controlled. One thing that has not changed is the Golden Rule. He who holds the gold rules. The transition of physical gold from West to East is disrupting the elites domination of the entire financial world. The East has been saying, "Enough is enough." What no one knows is how this will all unfold. One thing is certain: America has become a Third World country, liberty lost, economy failing, joblessness growing, homelessness growing, children as bad off, some worse than in recognized Third World countries, increasing dependence of the population on federal assistance, a growing police state, the NSA destroying all privacy, maybe even the internet. Life is about to get much worse in the United States. We have been advocating the purchase of physical gold and silver, at any price, for well over a year. Smart people have been doing exactly that. Those less certain have been concerned about the lower prices for their holdings of gold and silver, which totally misses the point. If your house drops in value, are you going to sell it? Stay focused and remain committed to the ongoing accumulation of the physical PMs. Stay on the side of history with a proven record of wealth preservation through the ownership of gold and silver. Changes are coming, and the momentum will grow to the point of being irreversibly up in the direction of gold and silver. In the process, there will be destruction of all paper assets and increased panicky government controls to steal whatever it can from people. FDR did it in 1933 when the elites had him trick the public into turning in their gold, even though no one was lawfully obligated to do so. Never lose sight of the fact that there is a huge difference between your country and the government that runs it. Governments that run countries ruin them, and the corporate federal government does not have the people's best interest in mind, at all. Back to gold and silver. Those who own physical gold and silver are doing the right thing and positioning themselves to at least have more choices as the corrupt federal government continues along its path of financial destruction. Just keep buying, when and as one can, and never let go of them from a lack of confidence. There may be opportunities developing in the futures markets for gold and silver, at least for as long as the exchanges remain viable, and that, too, will change. A key to watch more closely is the fiat "dollar." It seems to be weakening, and that is the unyielding intent from China, Russia, parts of the Middle East, remaining BRICS nations, and eventually even turncoat partners like Great Britain and Germany. The latter two are not going to allow themselves to be sucked into the fiat paper vortex in which the US is inexorably heading. The last two swing high rallies failed to reach a 50% retracement, a general sign of weakness. Price is near important support. The more times support is retested, the more likely it will eventually break. The daily shows that possibility somewhat more. It should be added, that even if 79 – 79.50 breaks, there is still important potential support at 78.
The current developing market activity is different from when price was at this level in late October 2013. The ranges at the low were smaller, and the ensuing rally was strong and fast. Currently, the ranges are larger, the closes generally weaker. Breaking the 79 area should propel gold to higher price levels, possibly challenging the 1450 area.
Something has been going on with gold as it refuses to break even for a "normal" type of correction lasting 1 to 4 days. Given how gold has previously been "beaten" down, almost with impunity, it was hard to trust the rallies, especially as price approached what looked like potential levels of resistance Bearish spacing still looms, but as gold continues to build a base, it is just a matter of time before it disappears.
What looked like potentially strong resistance at the 1360 area turned out to be a mirage as price sliced right through. Friday's mid-range close is also a function of the lower price "fix" close, as gold had been trading a few dollars higher. In futures, fixes are everywhere. A correction in up trends is normal, usually lasting 1 to 4 days. A logical support for any correction would be the 1355 – 1360 level.
Relative to gold, silver was operating in a different realm. Its development has always been more compact than gold since the highs. While silver did not participate in any strong rally over the last few weeks, it is still developing in a positive way.
There is the possibility that silver may not retest 20.50, again, but wherever the next reaction takes it, if it develops in a way that shows buying potential, it may be well worth taking a long position in futures.
|
| Gold And Silver - Start Watching Fed's Fiat 'Dollar' More Closely For Clues Posted: 15 Mar 2014 04:31 AM PDT Saturday The Ides of March 2014 For the past several weeks, our commentaries have dwelled on factors unrelated to what so many other writers have focused, primarily demand from a variety of sources, shrinking supply of physical at COMEX and LBMA, lots of charts and graphs to make interesting presentations, but none of those factors have been instrumental in moving gold and silver to higher levels. Our take has been the suppression of gold and silver has come from the elites running the central banks, and by extension, all Western governments. |
| Gold for Investors In Need of Financial Safety Posted: 15 Mar 2014 04:20 AM PDT Gold is a safe haven The emerging market turmoil in January got the safe haven ball rolling. The slowing U.S. economy then added another boost, especially with Yellen keeping the same policies as Bernanke. And now geopolitical concerns, like the crisis in Ukraine, are giving gold yet another safe haven push upward. |
| Can Gold and Interest Rates Move Higher at the Same Time? Posted: 15 Mar 2014 12:00 AM PDT SunshineProfits |
| Sprott - The Single Greatest Danger Facing The World Today Posted: 14 Mar 2014 09:01 PM PDT  At the end of a week which saw stocks struggle and silver and silver surge, today billionaire Eric Sprott spoke with King World News about the single greatest danger facing the world today. Below is what the Canadian billionaire, who is also Chairman of Sprott Asset Management, had to say in Part III of a remarkable series of interviews that has now been released.This posting includes an audio/video/photo media file: Download Now |
| A 'golden cross' likely for gold next week, Sprott tells KWN Posted: 14 Mar 2014 06:25 PM PDT 9:26p ET Friday, March 14, 2014 Dear Friend of GATA and Gold: Continuing his interview today with King World News, Sprott Asset Management CEO Eric Sprott says gold is likely to score a "golden cross" next week -- http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/3/14_Er... -- even as the chances of another banking collapse are increasing: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/3/15_Sp... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Safe and Private Allocated Bullion Storage In Singapore Given the increasing risks in financial markets, it is more important than ever to own physical bullion coins and bars and to store them in the safest vaults in the world in the safest jurisdictions in the world. Gold advocates Jim Sinclair and Marc Faber have recommended Singapore. Now, with GoldCore, you can own coins and bars in fully insured, segregated, and allocated accounts in Singapore with the ability to take delivery. Learn more by downloading GoldCore's Essential Guide To Storing Gold In Singapore: http://info.goldcore.com/essential-guide-to-storing-gold-in-singapore And for more information call Daniel or Sharon at +44 203 0869200 in the United Kingdom or at +1 302 635 1160 in the United States. Or email them at info@goldcore.com. Join GATA here: Mines and Money Hong Kong http://www.minesandmoney.com/hongkong/ Porter Stansberry Natural Resources Conference Canadian Investor Conference 2014 http://cambridgehouse.com/event/25/canadian-investor-conference-2014-inc... * * * 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: |
| The Gold Price is in the Middle of a Rally, Up $40.90 this Week Posted: 14 Mar 2014 06:15 PM PDT Gold Price Close Today : 1,379.00 Gold Price Close 7-Mar-14 : 1,338.10 Change : 40.90 or 3.1% Silver Price Close Today : 2138.4 Silver Price Close 7-Mar-14 : 2089.7 Change : 48.70 or 2.3% Gold Silver Ratio Today : 64.487 Gold Silver Ratio 7-Mar-14 : 64.033 Change : 0.454 or 0.7% Silver Gold Ratio : 0.01551 Silver Gold Ratio 7-Mar-14 : 0.01562 Change : -0.00011 or -0.7% Dow in Gold Dollars : $ 240.83 Dow in Gold Dollars 7-Mar-14 : $ 254.17 Change : -13.34 or -5.2% Dow in Gold Ounces : 11.650 Dow in Gold Ounces 7-Mar-14 : 12.296 Change : -0.65 or -5.2% Dow in Silver Ounces : 751.29 Dow in Silver Ounces 7-Mar-14 : 787.32 Change : -36.03 or -4.6% Dow Industrial : 16,065.67 Dow Industrial 7-Mar-14 : 16,452.72 Change : -387.05 or -2.4% S&P 500 : 1,841.13 S&P 500 7-Mar-14 : 1,878.04 Change : -36.91 or -2.0% US Dollar Index : 79.440 US Dollar Index 7-Mar-14 : 79.730 Change : -0.29 or -0.4% Platinum Price Close Today : 1,469.00 Platinum Price Close 7-Mar-14 : 1,483.00 Change : -14.00 or -0.9% Palladium Price Close Today : 773.00 Palladium Price Close 7-Mar-14 : 781.60 Change : -8.60 or -1.1% Exactly one month after the silver and GOLD PRICE surge on 14 February, they are repeating their act. Stocks, on the other hand, have lost 287.37 or 2.4% in a five day losing streak. US dollar index looks puking sick, and platinum and palladium are breathing hard to keep up. The GOLD PRICE scooped up another $6.80 (0.5%) today to pierce $1,375 and close at $1,379.00. Silver joined in, grabbing 21.5 (1%) cents to rise to 2138.4. The SILVER PRICE was pushed to a 2114c low but gapped up about 5:30 a.m. EST. It stopped a leap from 2120 at 2180, but backed off that and traded between 2130c and 2150c most of the day. Silver has formed what is probably a bullish flag (down-pointing flag) and today broke above the top of that range, but at the close was only about 8 cents above it. At day's end silver stopped at 2146c. Climbed today above the 20 DMA. The gold silver ratio at 64.487 STRONGLY witnesses that silver is verging on playing catch up with gold, and running past it. First, however, silver must close above 2160 and then above 2218c, the February high. Gold is a little overbought, but bull markets can stay overbought a long time. Since today it punched through its top Bollinger Band (a measure of range), we might see gold take a rest for the first couple of days next week. Of course, anything can happen over a weekend. Last week gold closed above the downtrend line from its August 2011 high and above its 50 week moving average. This week's trading all took place above that downtrend line. On the monthly chart gold remains below its 20 and 50 month moving averages, but has broken out through the downtrend line there, too, and posted three rising months. On a weekly chart silver has spent five weeks above the post-April 2011 downtrend line and this week closed barely below its 50 week MA (2150). It has spent four weeks trying to fight through that moving average. Silver's monthly chart reveals a breakout similar to gold's above the downtrend line, but only two months. We're in the middle of a rally. Buy -- more silver than gold. If you have gold to swap for silver, do it fast. Whoops! The Fed has sprung a money leak!. It holds US government securities in custody for foreign central banks, and for the week ending 12 March those fell $104 billion to $2.86 trillion. Speculation is that the Russians pulled theirs out ahead of the US government possibly locking them up. Now that little smidgen of treasuries withdrawn doesn't amount to anything, but its about three times the last biggest drop ever. And if more central banks took a notion to take delivery, or, worse yet, simply to sell, why there would be big trouble in Fed-ville. Stocks had a consistent week: consistently lower. Dow yesterday dropped a thumping 231.19, today another 43.22 (0.27%) to end the week at 16,065.67. S&P500 lost 5.21 (0.28%) and ended the day at 1,841.13. Y'all know that moving averages are momentum milestones. A market above its moving averages has upward inertia, a market below downward. When a market falls below its short term moving average (say, 20 day), it's warning of a downturn. When it falls below the 50 DMA, it picks up steam, etc. In the last two days the Dow dropped through both its 20 (16,241) and 50 (16,148) DMAs. S&P500 fell through its 20 (1,854) but not yet the 50 DMA (1,821). More interesting still, the S&P500 has fallen through a long term uptrend line it had "thrown over" or broken out above. Now its punching back below. Same holds for an old upper boundary of the Dow's range. It threw over that line in November, traded up until end-December, cascaded down through that support in January all the way to its 200 DMA, then rallied back over the line. Today it sits just above it. Add a downward or sell cross in the MACD indicator, and, well, stocks look a mite peaked. It appears that the Dow's refusal to confirm new highs in the S&P500 and other indices in this last rally was telegraphing underlying weakness. However, it's like a dead rattlesnake. Don't count it out until somebody cuts off its head. Stocks will likely still back to a new high before May. I'm strapping on a muzzle so I don't crow too much over the Dow in Gold and Dow in Silver. They fell from end-December until end-February, then managed a little counter-trend rally -- really a sort of counter-trend burp. Now they have earnestly resumed their fall as metals outperform stocks, and they point toward much more outperformance the further they fall. They gave a couple of sell signals this week. DiG closed today at 11.65 oz (G$240.83 gold dollars), well below the 200 DMA at 12.02 oz (G$248.48) Yo! What of the DiS? Silver has lagged gold so the DiS hasn't performed quite as spectacularly, but respectably still. Tumbled today 1.38% (10.47 oz) to 750.28 (S$970.11), a gnat's eyebrow from the 200 DMA (748.51 oz). Bearings check: Dow in Gold topped (stocks peaked in August 1999) at 44.767 oz (G$925.42) and Silver in June 2001 at 2,573 oz. In 2013 both broke above their long term downtrend lines in a correction, and now they are headed to break below those lines. From peak to the first trough in this bear market for stocks against metal, stocks lost about 85% of their value. They'll lose another 85% before the bear market for stocks ends. Rough guess, mind you. US dollar index fell again today, 17 basis points (0.2%) to 79.44. The November low, lowest price in a year, was 79.06. If there dollar breaches that support, no safety net appears before, oh, 78. However, the dollar has spent most of 2014 tracing out a falling wedge, which usually but not always ends by reversing upward. However, if it lurches yesterday's low, about 79.28, it might just keep on lurching downward. Since Europe has a lot more to lose by a war in Ukraine than the US, the euro ought to be dropping like a careless tourist off a cruise ship, but it's not. Yesterday it dropped 0.27% after hitting a new high for the move, then closed lower. Today it rose 0.27% and closed higher, gainsaying any key reversal downward. Seemingly intends to rise, but why remains a mystery. Again today the yen picked up the safe haven bid and rose 0.49% to 98.73 cents/Y100. 'Twas at this same level as March began but slid, so if it can close higher then it is rallying and not merely trifling with us. On 14 March 1900 congress passed the Gold Standard Act, allegedly to put the United States on a gold standard, really to try to make the banks' demonetization of silver permanent and demoralize bimetallists. The bill made the gold dollar of the standard of 1834 the "standard unit of value" to which the secretary of the treasury was supposed to maintain all other forms of money at parity The act is another irrefutable argument against government issuing any money at all, since the whole history of government issued money is a parade of corruption, stupidity, confiscation, and market suppression. A government monopoly on money issue, along with legal tender laws, is the tyrant's indispensable tools to rob the people. Y'all enjoy your weekend. Argentum et aurum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger The-MoneyChanger.com © 2014, 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 is in the Middle of a Rally, Up $40.90 this Week Posted: 14 Mar 2014 06:15 PM PDT Gold Price Close Today : 1,379.00 Gold Price Close 7-Mar-14 : 1,338.10 Change : 40.90 or 3.1% Silver Price Close Today : 2138.4 Silver Price Close 7-Mar-14 : 2089.7 Change : 48.70 or 2.3% Gold Silver Ratio Today : 64.487 Gold Silver Ratio 7-Mar-14 : 64.033 Change : 0.454 or 0.7% Silver Gold Ratio : 0.01551 Silver Gold Ratio 7-Mar-14 : 0.01562 Change : -0.00011 or -0.7% Dow in Gold Dollars : $ 240.83 Dow in Gold Dollars 7-Mar-14 : $ 254.17 Change : -13.34 or -5.2% Dow in Gold Ounces : 11.650 Dow in Gold Ounces 7-Mar-14 : 12.296 Change : -0.65 or -5.2% Dow in Silver Ounces : 751.29 Dow in Silver Ounces 7-Mar-14 : 787.32 Change : -36.03 or -4.6% Dow Industrial : 16,065.67 Dow Industrial 7-Mar-14 : 16,452.72 Change : -387.05 or -2.4% S&P 500 : 1,841.13 S&P 500 7-Mar-14 : 1,878.04 Change : -36.91 or -2.0% US Dollar Index : 79.440 US Dollar Index 7-Mar-14 : 79.730 Change : -0.29 or -0.4% Platinum Price Close Today : 1,469.00 Platinum Price Close 7-Mar-14 : 1,483.00 Change : -14.00 or -0.9% Palladium Price Close Today : 773.00 Palladium Price Close 7-Mar-14 : 781.60 Change : -8.60 or -1.1% Exactly one month after the silver and GOLD PRICE surge on 14 February, they are repeating their act. Stocks, on the other hand, have lost 287.37 or 2.4% in a five day losing streak. US dollar index looks puking sick, and platinum and palladium are breathing hard to keep up. The GOLD PRICE scooped up another $6.80 (0.5%) today to pierce $1,375 and close at $1,379.00. Silver joined in, grabbing 21.5 (1%) cents to rise to 2138.4. The SILVER PRICE was pushed to a 2114c low but gapped up about 5:30 a.m. EST. It stopped a leap from 2120 at 2180, but backed off that and traded between 2130c and 2150c most of the day. Silver has formed what is probably a bullish flag (down-pointing flag) and today broke above the top of that range, but at the close was only about 8 cents above it. At day's end silver stopped at 2146c. Climbed today above the 20 DMA. The gold silver ratio at 64.487 STRONGLY witnesses that silver is verging on playing catch up with gold, and running past it. First, however, silver must close above 2160 and then above 2218c, the February high. Gold is a little overbought, but bull markets can stay overbought a long time. Since today it punched through its top Bollinger Band (a measure of range), we might see gold take a rest for the first couple of days next week. Of course, anything can happen over a weekend. Last week gold closed above the downtrend line from its August 2011 high and above its 50 week moving average. This week's trading all took place above that downtrend line. On the monthly chart gold remains below its 20 and 50 month moving averages, but has broken out through the downtrend line there, too, and posted three rising months. On a weekly chart silver has spent five weeks above the post-April 2011 downtrend line and this week closed barely below its 50 week MA (2150). It has spent four weeks trying to fight through that moving average. Silver's monthly chart reveals a breakout similar to gold's above the downtrend line, but only two months. We're in the middle of a rally. Buy -- more silver than gold. If you have gold to swap for silver, do it fast. Whoops! The Fed has sprung a money leak!. It holds US government securities in custody for foreign central banks, and for the week ending 12 March those fell $104 billion to $2.86 trillion. Speculation is that the Russians pulled theirs out ahead of the US government possibly locking them up. Now that little smidgen of treasuries withdrawn doesn't amount to anything, but its about three times the last biggest drop ever. And if more central banks took a notion to take delivery, or, worse yet, simply to sell, why there would be big trouble in Fed-ville. Stocks had a consistent week: consistently lower. Dow yesterday dropped a thumping 231.19, today another 43.22 (0.27%) to end the week at 16,065.67. S&P500 lost 5.21 (0.28%) and ended the day at 1,841.13. Y'all know that moving averages are momentum milestones. A market above its moving averages has upward inertia, a market below downward. When a market falls below its short term moving average (say, 20 day), it's warning of a downturn. When it falls below the 50 DMA, it picks up steam, etc. In the last two days the Dow dropped through both its 20 (16,241) and 50 (16,148) DMAs. S&P500 fell through its 20 (1,854) but not yet the 50 DMA (1,821). More interesting still, the S&P500 has fallen through a long term uptrend line it had "thrown over" or broken out above. Now its punching back below. Same holds for an old upper boundary of the Dow's range. It threw over that line in November, traded up until end-December, cascaded down through that support in January all the way to its 200 DMA, then rallied back over the line. Today it sits just above it. Add a downward or sell cross in the MACD indicator, and, well, stocks look a mite peaked. It appears that the Dow's refusal to confirm new highs in the S&P500 and other indices in this last rally was telegraphing underlying weakness. However, it's like a dead rattlesnake. Don't count it out until somebody cuts off its head. Stocks will likely still back to a new high before May. I'm strapping on a muzzle so I don't crow too much over the Dow in Gold and Dow in Silver. They fell from end-December until end-February, then managed a little counter-trend rally -- really a sort of counter-trend burp. Now they have earnestly resumed their fall as metals outperform stocks, and they point toward much more outperformance the further they fall. They gave a couple of sell signals this week. DiG closed today at 11.65 oz (G$240.83 gold dollars), well below the 200 DMA at 12.02 oz (G$248.48) Yo! What of the DiS? Silver has lagged gold so the DiS hasn't performed quite as spectacularly, but respectably still. Tumbled today 1.38% (10.47 oz) to 750.28 (S$970.11), a gnat's eyebrow from the 200 DMA (748.51 oz). Bearings check: Dow in Gold topped (stocks peaked in August 1999) at 44.767 oz (G$925.42) and Silver in June 2001 at 2,573 oz. In 2013 both broke above their long term downtrend lines in a correction, and now they are headed to break below those lines. From peak to the first trough in this bear market for stocks against metal, stocks lost about 85% of their value. They'll lose another 85% before the bear market for stocks ends. Rough guess, mind you. US dollar index fell again today, 17 basis points (0.2%) to 79.44. The November low, lowest price in a year, was 79.06. If there dollar breaches that support, no safety net appears before, oh, 78. However, the dollar has spent most of 2014 tracing out a falling wedge, which usually but not always ends by reversing upward. However, if it lurches yesterday's low, about 79.28, it might just keep on lurching downward. Since Europe has a lot more to lose by a war in Ukraine than the US, the euro ought to be dropping like a careless tourist off a cruise ship, but it's not. Yesterday it dropped 0.27% after hitting a new high for the move, then closed lower. Today it rose 0.27% and closed higher, gainsaying any key reversal downward. Seemingly intends to rise, but why remains a mystery. Again today the yen picked up the safe haven bid and rose 0.49% to 98.73 cents/Y100. 'Twas at this same level as March began but slid, so if it can close higher then it is rallying and not merely trifling with us. On 14 March 1900 congress passed the Gold Standard Act, allegedly to put the United States on a gold standard, really to try to make the banks' demonetization of silver permanent and demoralize bimetallists. The bill made the gold dollar of the standard of 1834 the "standard unit of value" to which the secretary of the treasury was supposed to maintain all other forms of money at parity The act is another irrefutable argument against government issuing any money at all, since the whole history of government issued money is a parade of corruption, stupidity, confiscation, and market suppression. A government monopoly on money issue, along with legal tender laws, is the tyrant's indispensable tools to rob the people. Y'all enjoy your weekend. Argentum et aurum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger The-MoneyChanger.com © 2014, 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. |
| Hugo Salinas Price: We cannot get away from gold or silver Posted: 14 Mar 2014 05:55 PM PDT 8:55p ET Friday, March 14, 2014 Dear Friend of GATA and Gold: Hugo Salinas Price, president of the Mexican Civic Association for Silver, writes this week that all government currencies are descended from gold and silver and that these histories convey much legitimacy, even as governments are squandering it. His commentary is headlined "We Cannot Get Away from Gold or Silver" and it's posted at the association's Internet site, Plata.com, here: http://www.plata.com.mx/Mplata/articulos/articlesFilt.asp?fiidarticulo=2... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Safe and Private Allocated Bullion Storage In Singapore Given the increasing risks in financial markets, it is more important than ever to own physical bullion coins and bars and to store them in the safest vaults in the world in the safest jurisdictions in the world. Gold advocates Jim Sinclair and Marc Faber have recommended Singapore. Now, with GoldCore, you can own coins and bars in fully insured, segregated, and allocated accounts in Singapore with the ability to take delivery. Learn more by downloading GoldCore's Essential Guide To Storing Gold In Singapore: http://info.goldcore.com/essential-guide-to-storing-gold-in-singapore And for more information call Daniel or Sharon at +44 203 0869200 in the United Kingdom or at +1 302 635 1160 in the United States. Or email them at info@goldcore.com. Join GATA here: Mines and Money Hong Kong http://www.minesandmoney.com/hongkong/ Porter Stansberry Natural Resources Conference Canadian Investor Conference 2014 http://cambridgehouse.com/event/25/canadian-investor-conference-2014-inc... * * * 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: |
| Alasdair Macleod: The bursting of China's credit bubble Posted: 14 Mar 2014 05:49 PM PDT 8:51p ET Friday, March 14, 2014 Dear Friend of GATA and Gold: China remains the big gold story, GoldMoney research director Alasdair Macleod writes today, not just because Chinese people recognize gold as the best money but also because the credit and currency collapse under way in China will drive wealth out of uneconomic assets and into the monetary metal. Macleod's commentary is headlined "The Bursting of China's Credit Bubble" and it's posted at GoldMoney's Internet site here: http://www.goldmoney.com/research/analysis/the-bursting-of-chinas-credit... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT How to profit with silver -- Future Money Trends is offering a special 16-page silver report with profiles of nine companies and technical analysis of their stock performance. Six of the companies have market capitalizations of less than $800 million and one company has a market cap of only $30 million. The most exciting of these companies will begin production in a few weeks and has a market cap of just $150 million. Half of all proceeds from the sale of this report will be donated to the Gold Anti-Trust Action Committee to support its efforts exposing manipulation and fraud in the gold and silver markets. To learn about this report, please visit: http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp... Join GATA here: Mines and Money Hong Kong http://www.minesandmoney.com/hongkong/ Porter Stansberry Natural Resources Conference Canadian Investor Conference 2014 http://cambridgehouse.com/event/25/canadian-investor-conference-2014-inc... * * * 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 |
| Is Endeavour Silver Corp Well Positioned for 2014? Posted: 14 Mar 2014 05:26 PM PDT
Apart from other silver miners, Endeavour Silver (NYSE: EXK ) does not plan to grow its production in 2014. The company estimates that it will produce 6.5 million-6.9 million ounces of silver this year, while it produced 6.8 million ounces of silver in 2013. As silver prices remain depressed, production growth could have been a source of additional cash flow for Endeavour Silver. Is the company's strategy viable? |
| Ambrose Evans-Pritchard: Fire sale of US Treasuries warns of acute stress across the world Posted: 14 Mar 2014 04:31 PM PDT By Ambrose Evans-Pritchard http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100026831/fi... Somebody is a selling a fistful of US Treasuries. It could be Russia, China, Turkey, South Africa, or Indonesia, or all frantically selling bonds at the same time for different reasons. We don't yet know. All we know is that the US Federal Reserve's custody holdings on behalf of foreign central banks plunged by $106 billion in the week ending March 12, the biggest one-week drop on record. Russia's central bank is undoubtedly liquidating reserves at a breakneck pace to prevent a collapse of the rouble, as foreign companies scramble to get all their spare cash out of Russian accounts before the G7 guillotine comes down on the Putin clan next week. It is certainly trying to remove its assets beyond the jurisdiction of the US authorities -- though that will not be easy. The Securities and Exchange Commission takes no prisoners. In the end, the world is more frightened of US regulators than it is of Putin's tanks or his polonium. Soft power can trump hard power. ... Dispatch continues below ... ADVERTISEMENT How to profit with silver -- Future Money Trends is offering a special 16-page silver report with profiles of nine companies and technical analysis of their stock performance. Six of the companies have market capitalizations of less than $800 million and one company has a market cap of only $30 million. The most exciting of these companies will begin production in a few weeks and has a market cap of just $150 million. Half of all proceeds from the sale of this report will be donated to the Gold Anti-Trust Action Committee to support its efforts exposing manipulation and fraud in the gold and silver markets. To learn about this report, please visit: http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp... One investor told me that clients in Russia are literally loading up cars with computers, machinery, and anything that will fit, and rushing them out of the country for fear that assets will nationalised. Whatever happens, nobody will forget this in a hurry. Yet the latest financial ructions go beyond Russia; they reek of stress in the international system. "Countries are intervening all over the place to defend their currencies, (which means they are tightening). Their central banks built up huge war chests of reserves for a rainy day, and now it is raining," said David Bloom, currency chief at HSBC. Indeed it is. The international order is unravelling. Russia is of course smashing the post-Cold War order by seizing Ukraine and blowing up the global architecture of nuclear non-proliferation. Let us not forget that Ukraine agreed to give up its nuclear weapons -- the world's third biggest arsenal at the time -- in exchange for a guarantee by the great powers in 1994 that its territorial integrity would be upheld. Russia was one of the signatories. China is laying claim to large parts of the East China and South China Seas, and has established an air-identification control zone over the Japanese-controlled Senkaku islands. China and Japan are one blow -- or misjudgment -- away from outright military conflict. The battle on the Pacific Rim is ultimately even more dangerous than the West's clash with Russia over Ukraine. Whether or not the wheels really are falling off the Chinese economy remains to be seen, but the discussion has crept into the market. You can smell the beginnings of fear. "The global situation is extremely serious," Lars Christensen from Danske Bank. "Russia is committing economic suicide, there is a massive corruption scandal in Turkey, and capital outflows from China threaten to have huge ramifications." "If the US dollar were to strengthen drastically at this point, we would go straight into a global recession." That is indeed the risk. Let us hope the Fed can pull its head out of its closed-economy macro model for once and take a look at the world before it tightens again next week. Tread very carefully, Madame Chairman. Join GATA here: Mines and Money Hong Kong http://www.minesandmoney.com/hongkong/ Porter Stansberry Natural Resources Conference Canadian Investor Conference 2014 http://cambridgehouse.com/event/25/canadian-investor-conference-2014-inc... * * * 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 |
| Was that Russia transferring dollar holdings offshore? Posted: 14 Mar 2014 04:16 PM PDT By: Patti Domm http://www.cnbc.com/id/101495837 The Fed's custody holdings report is usually a sleeper, but this week there was a whopping withdrawal by some central bank. And while there's no evidence, speculation is that it was Russia. Foreign central banks' holdings of U.S. marketable securities fell in the week that ended Wednesday by a record $106.1 billion, and that was mostly Treasurys. The holdings of U.S. securities held by the Fed for other central banks fell to $3.21 billion, the lowest level since December 2012. While traders say they suspect it was Russia, they don't know for sure, and it has not shown up on Russia's balance sheet. ... Dispatch continues below ... ADVERTISEMENT Safe and Private Allocated Bullion Storage In Singapore Given the increasing risks in financial markets, it is more important than ever to own physical bullion coins and bars and to store them in the safest vaults in the world in the safest jurisdictions in the world. Gold advocates Jim Sinclair and Marc Faber have recommended Singapore. Now, with GoldCore, you can own coins and bars in fully insured, segregated, and allocated accounts in Singapore with the ability to take delivery. Learn more by downloading GoldCore's Essential Guide To Storing Gold In Singapore: http://info.goldcore.com/essential-guide-to-storing-gold-in-singapore And for more information call Daniel or Sharon at +44 203 0869200 in the United Kingdom or at +1 302 635 1160 in the United States. Or email them at info@goldcore.com. However, Marc Chandler, chief Treasury strategist at Brown Brothers Harriman, said everything points to Russia, starting with the timing of Sunday's Crimean referendum and the potential for Western sanctions. He said rather than selling the Treasurys, Russia simply transferred them out of the U.S. "Everything (Russian President Vladimir) Putin is doing is being extra cautious about retaliation, like bringing troops right to the Ukraine border," said Chandler. "The other reason I say it's most likely Russia is you look at the countries that have the largest reserves. It doesn't feel like it's China because China has enough on its plate." Chandler said about half of Russia's foreign currency reserves are held in dollar-denominated instruments, and this would be about 80 percent of those dollar holdings. At the end of 2013, Russia had $138 billion in Treasury securities. "It could be somebody else, but it does seem circumstantial just on the timing alone," said Chandler. He also said there are precedents for this type of behavior by Russia. He pointed to the birth of the Eurodollar market—dollars outside the U.S. In 1956, when the Soviet Union invaded Hungary, it feared the U.S. would retaliate with financial muscle, and Russia-based Narodny Bank shifted dollars from the U.S. and deposited them in its London branch, he noted. Join GATA here: Mines and Money Hong Kong http://www.minesandmoney.com/hongkong/ Porter Stansberry Natural Resources Conference Canadian Investor Conference 2014 http://cambridgehouse.com/event/25/canadian-investor-conference-2014-inc... * * * 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: |
| Koos Jansen: Abandoning gold standard enriched financial class Posted: 14 Mar 2014 03:56 PM PDT 6:55p ET Friday, March 14, 2014 Dear Friend of GATA and Gold: Gold researcher and GATA consultant Koos Jansen reports today that Chinese gold demand for the first 10 weeks of the year has reached 454 tonnes, which would put it on a pace to claim most of the world's annual gold production. Jansen observes that abandonment of the gold standard resulted in a vast transfer of wealth from the working class to the financial class, but then wasn't that the objective? Jansen's commentary is posted at his Internet site, In Gold We Trust, here: http://www.ingoldwetrust.ch/week-10-sge-withdrawals-36-mt-454-mt-ytd CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Safe and Private Allocated Bullion Storage In Singapore Given the increasing risks in financial markets, it is more important than ever to own physical bullion coins and bars and to store them in the safest vaults in the world in the safest jurisdictions in the world. Gold advocates Jim Sinclair and Marc Faber have recommended Singapore. Now, with GoldCore, you can own coins and bars in fully insured, segregated, and allocated accounts in Singapore with the ability to take delivery. Learn more by downloading GoldCore's Essential Guide To Storing Gold In Singapore: http://info.goldcore.com/essential-guide-to-storing-gold-in-singapore And for more information call Daniel or Sharon at +44 203 0869200 in the United Kingdom or at +1 302 635 1160 in the United States. Or email them at info@goldcore.com. Join GATA here: Mines and Money Hong Kong http://www.minesandmoney.com/hongkong/ Porter Stansberry Natural Resources Conference Canadian Investor Conference 2014 http://cambridgehouse.com/event/25/canadian-investor-conference-2014-inc... * * * 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: |
| Delusions About the Origin of an Economic Recovery Posted: 14 Mar 2014 02:55 PM PDT As the dust settles in the iron ore and copper markets let's take a step back and assess the damage. Both metals are heavily involved in China's credit bubble. That is, traders, speculators and whoever else wanted in on the action would effectively 'monetize' their copper/iron ore holdings and then speculate with the proceeds. In the past few weeks, it's become clear that the Chinese authorities wanted to put an end to this destabilising speculation. They kicked things off by engineering a sell-off in the yuan against the dollar. That's because a favourite trade amongst the speculators was to make a derivatives based, leveraged bet on the yuan continuing to appreciate against the greenback. It was easy money. The world has gone seriously insane thinking the current 'recovery' is anything more than another attempt at debt fuelled growth. Until the authorities put a stop to it, that is. Their actions spooked the market a little and inflicted some losses. Next up came the country's first corporate bond default, which was another warning to speculators. On top of that, the recently released government report to the Chinese parliament made numerous mentions of curbing excess capacity in the steel sector. This was a warning shot to the iron ore stockpilers. Combined, these events seemed to dawn on everybody around the same time, which is why you've seen big price falls in both copper and iron ore over the past week. Liquidations tend to be short and sharp, so for the moment you can probably expect a bit of calm in these markets. But the question now becomes, what is the underlying demand for these metals? The answer is, less than it used to be. After five years of unprecedented credit growth, we can safely say that past performance is no guide to the future. With the market being in a bullish mood, no doubt it will brush aside these China worries and put it down to a few speculators being taught a lesson. As in: speculation over, mess cleaned up, let's carry on. In our view, this is the start of the unwinding of the massive China credit bubble. The authorities will heroically try to contain it, and they might have early success. But once the snowball starts gathering momentum it will become increasingly difficult to stop. It's not just China with a credit/debt bubble problem though. The world has gone seriously insane thinking the current 'recovery' is anything more than another attempt at debt fuelled growth. According to a recent report by the Bank for International Settlements (BIS), from mid-2007 to mid-2013, global debt levels have soared 40% to $100 trillion. That's an increase of $30 trillion, much of which is government debt. So let's get this straight. After enduring the worst financial and economic conditions since the Great Depression because of a bursting private debt bubble, we've gone and increased our borrowings by 40% to try to engineer a recovery. Are we serious? This massive injection of 'money' (because government debt is effectively spent into the global economy as it's created) hasn't even led to above trend economic growth. But it has caused a few rolling crises and increasing social tensions. Well done! But it gets even better. The BIS report also points out that the value of global equities declined by $3.86 trillion to $53.8 trillion over the same time frame. Equity represents unencumbered wealth, whereas debt is just an obligation to someone else. The fact that equity has gone backwards since mid-2007 gives you some indication about the success of this 'recovery'. We're not creating wealth, we're just creating transitory debt-fuelled gains. With equity falling and debt exploding higher, the global economy is now even more highly leveraged than before. In fact, according to the numbers from the BIS, the world's 'gearing' levels have gone from 121% in mid-2007 to 185% by mid-2013. No wonder equity prices are doing so well following the wipeout from the last debt bubble fiasco. They're benefiting from a massive increase in leverage. If you're confused by this, consider that 'equity' is the base that leverage works its magic on. So if you buy a $500,000 dollar house with a 10% deposit, you have 'equity' in the house of $50,000. You are leveraged 10-1. If house prices rise by 5%, your equity jumps $25,000, or 50%. That's leverage at work. It also goes the other way. A 5% fall would wipe 50% of your equity value. In other words, a small amount of growth can translate into good equity gains in a highly leveraged economy. That's exactly what's happening now. Phenomenal government debt growth is fuelling economic growth which is leveraging gains to global stock markets. It all feels pretty good, doesn't it? But don't think about it too much, you might get a little nervous. How long can it last? As long as we have faith in government paper, it can continue. But if governments go on spending like they have been, that confidence will slowly diminish. That's why they're making noises about restraining spending and bringing interest rates back to 'normal'. But this can't happen without growth slowing back down to unacceptable levels. Slower to stagnant growth in a highly leveraged economy will start to impact equity values in a negative manner. An outright recession would have a devastating effect on equity value, which is why the economy's 'managers' will do everything to avoid it. In short, we're at the end of the current debt-dependent system's timeline. Unbelievably, we've managed to stretch it out for another five years by cashing in on the credibility of governments around the world and spending their future incomes. As far as we can tell, they don't have much credibility left. In the next few years that will become painfully apparent. Ructions in China's credit markets might be the catalyst for the next debt crisis. Because if China slows, the US in particular will have to fill the void. Which means more debt based spending. That might just be the straw that breaks the camel's back. Regards Greg Canavan Ed. Note: As long as the promise of economic growth spurs the expansion of debt and credit, you can bet that the world’s governments (specifically the US) will never slow down the printing presses. The question is, how do you insulate your wealth from a sudden collapse of financial system based solely on “funny money”? That’s where readers of The Daily Reckoning have a leg-up. Every day, they’re given unique opportunities to safeguard and grow their wealth, no matter what the idiots in Washington do. Sign up for The Daily Reckoning, for FREE, right here to see what you’re missing. |
| James McShirley: The curious case of the PM fix vs. the AM fix Posted: 14 Mar 2014 01:44 PM PDT 4:47p ET Friday, March 14, 2014 Dear Friend of GATA and Gold: Market analyst and GATA consultant James McShirley today notes the long anomalous behavior of the London gold fixing, where for years the afternoon fix was almost always lower than the morning fix, changing only on the eve of investigations of gold market rigging. McShirley writes that his research was inspired by that of GATA consultant Dimitri Speck, author of the gold price suppression expose "The Gold Cartel" -- http://us.macmillan.com/thegoldcartel/DimitriSpeck -- and the late GATA board member Adrian Douglas, whose study of the London fix four years ago concluded that the fix was the reincarnation of the official gold price suppression mechanism of the 1960s, the London Gold Pool: McShirley writes: "The argument that gold isn't manipulated because if it were traders would step in and arbitrage the London fixes is easily refuted. In a nut, they do." His analysis is headlined "The Curious Case of the PM Fix vs. the AM Fix" and it's posted at GoldSeek here: http://news.goldseek.com/GoldSeek/1394826567.php CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT How to profit with silver -- Future Money Trends is offering a special 16-page silver report with profiles of nine companies and technical analysis of their stock performance. Six of the companies have market capitalizations of less than $800 million and one company has a market cap of only $30 million. The most exciting of these companies will begin production in a few weeks and has a market cap of just $150 million. Half of all proceeds from the sale of this report will be donated to the Gold Anti-Trust Action Committee to support its efforts exposing manipulation and fraud in the gold and silver markets. To learn about this report, please visit: http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp... Join GATA here: Mines and Money Hong Kong http://www.minesandmoney.com/hongkong/ Porter Stansberry Natural Resources Conference Canadian Investor Conference 2014 http://cambridgehouse.com/event/25/canadian-investor-conference-2014-inc... * * * 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 |
| Sprott may join manipulation suit; von G says asset gains in dollars are illusory Posted: 14 Mar 2014 01:33 PM PDT 4:30p ET Friday, March 14, 2014 Dear Friend of GATA and Gold: Sprott Asset Management CEO Eric Sprott today tells King World News that the increasingly public complaints about gold market manipulation have begun to liberate the gold price and he is considering becoming part of a class-action lawsuit against the banks that have been accused of manipulation: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/3/14_Bi... And Swiss gold fund manager Egon von Greyerz tells King World News that price appreciation in assets demoninated in U.S. dollars are completely illusory, since the dollar long has been declining in value. The world is going to strip the dollar of its role as the world reserve currency, von Greyerz says. His comments are posted at King World News here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/3/14_Th... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT How to profit with silver -- Future Money Trends is offering a special 16-page silver report with profiles of nine companies and technical analysis of their stock performance. Six of the companies have market capitalizations of less than $800 million and one company has a market cap of only $30 million. The most exciting of these companies will begin production in a few weeks and has a market cap of just $150 million. Half of all proceeds from the sale of this report will be donated to the Gold Anti-Trust Action Committee to support its efforts exposing manipulation and fraud in the gold and silver markets. To learn about this report, please visit: http://www.futuremoneytrends.com/index.php?option=com_content&id=376&tmp... Join GATA here: Mines and Money Hong Kong http://www.minesandmoney.com/hongkong/ Porter Stansberry Natural Resources Conference Canadian Investor Conference 2014 http://cambridgehouse.com/event/25/canadian-investor-conference-2014-inc... * * * 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 |
| Gold Daily and Silver Weekly Charts - Gold Continues Higher as Miners Outperform Posted: 14 Mar 2014 01:27 PM PDT |
The Broighter Gold Hoard Discovery
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