Gold World News Flash

Richard Russell - Damn The U.S. Lies, Bullshit & Propaganda
Ukraine Standoff Dangerous for Fragile Global Economy – Positive for Gold
China Credit Markets Tumble Most In 3 Months As Default Spooks Lenders, Deals Pulled
Tulving Closes after Complaints of Delays
After 20 years, gold salvage operations to resume at wreck of SS Central America
ECONOMIC COLLAPSE 2014 -- FED Repeats, It Would Take A Major Economic Disruption To Curb The Taper
RT's 'Boom/Bust' interviews GoldMoney's James Turk
FINANCIAL COLLAPSE 2014 -- Jim Rickards on dollar debasement & Peter Joseph explains the Zeitgeist Movement
If only the Bank of England could get interested in beer price suppression
New CFTC chief supports commodity speculation limits
London gold fix could use some transparency, Scotia CEO says
In Venezuela, This Is How You Convert $1 Into $175,000
Chinese: Filthy Rich
The Gold Price Gained $11.50 Making a New High for the Move at $1,351.70
The Gold Price Gained $11.50 Making a New High for the Move at $1,351.70
Why Increased Western Gold Demand Could Lead To A Gold Supply Shortage
4 Tips To Avoid Gold Scams
The Collapse of America's Health Care Industry -- Mark Thornton
Gold Daily and Silver Weekly Charts - Non-Farm Payrolls Tomorrow
Gold Daily and Silver Weekly Charts - Non-Farm Payrolls Tomorrow
The Economist finally has to note complaints of gold price rigging
If you're sore about the London gold fixing, contact Berger & Montague
Russia said to seek repeal of U.S. veto at IMF
Look For Staggering $570 Surge In Gold & 44% Spike In Silver
This Is Going To Be A Huge Surprise For Investors In 2014
Ukraine as the U.S. Dollar Waterloo - Immediate Petro-Dollar Risk
UK QE and 0.5% Interest Rates, 5 Years On
UK QE and 0.5% Interest Rates, 5 Years On
UK QE and 0.5% Interest Rates, 5 Years On
Renewed Indian Demand Driving Gold Prices Higher?
Time to Change UK Monetary Policy
Time to Change UK Monetary Policy
Gold to Rise on Indian Import Easing?
Gold to Rise on Indian Import Easing?
Is renewed Indian demand driving gold prices higher?
Demand to rise but rallies capped by gold’s flow to price-sensitive East
Trader files lawsuit against London gold fix banks
Scotiabank CEO says ‘dated’ gold fix should be reviewed
Gold may rise toward $2,000 in two years – Barrick CEO
Randgold receives approaches for Senegal gold project
India current-account gap narrows to 4-year low on gold tax
The Truth About The Conflict Over Ukraine
The Truth About The Conflict Over Ukraine
Gold Price "Will Probably Test $1400" as Crimea Moves to Quit Ukraine, US Fed Sees "Many, Many Years" of Ultra-Low Rates
ECONOMIC COLLAPSE 2014 -- The End of Austerity?
Renewed Indian Demand Driving Gold Prices Higher?
U.S. Dollar's Long Term Decline
Gold Price, Global Politics & Ukraine: Expert Roundtable
Gold Price, Global Politics & Ukraine: Expert Roundtable
US deep storage gold - weights

Richard Russell - Damn The U.S. Lies, Bullshit & Propaganda

Posted: 06 Mar 2014 08:13 PM PST

With continued chaos and uncertainty in global markets, today KWN is publishing an incredibly powerful piece that was written by a 60-year market veteran. The Godfather of newsletter writers, Richard Russell, is now becoming more vocal about the the United States government lying to its people. He also discussed major moves by the Chinese, why the stock market will crash, and what is happening with gold, and particularly silver.

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

Ukraine Standoff Dangerous for Fragile Global Economy – Positive for Gold

Posted: 06 Mar 2014 08:00 PM PST

by Lawrence Williams, MineWeb.com

Well Russia may not be going to invade Ukraine militarily, but may end up annexing Crimea by default despite the protests of a kicking and screaming West, not to mention the Ukraine transitional government. If this then leads to U.S. and EU economic and political sanctions being implemented against Russia then one doubts either side will come out without taking serious financial casualties. Russia would be bound to retaliate, or President Putin would lose domestic respect – which is something he would be unlikely to contemplate – and given the still-fragile state of the global economy this has enormous dangers for both sides. The Russian economy is very weak too and the ruble is diving while a default by Russia on its Western debt, which has already been threatened, could further destabilise the whole Western banking system with bank collapses and the start of a new downwards spiral. In short, the 'peaceful' solution could be almost as bad as that if there were to be a shooting war. It looks to be a lose-lose situation and the current standoff may be turning out to be a massive political poker game, with some very high stakes to play for and which neither side can afford to lose.

Read More @ MineWeb.com

China Credit Markets Tumble Most In 3 Months As Default Spooks Lenders, Deals Pulled

Posted: 06 Mar 2014 07:53 PM PST

UPDATE: It's happened - China has suffered its first domestic corporate bond default as Chaori fails to meet interest payments on schedule and rather more surprisingly failed to receive a last-minute mysterious or otherwise bailout...

*CITIC BANK WON'T HELP CHAORI MAKE INTEREST PAYMENT: 21ST HERALD
*SHANGHAI CHAORI DEFAULTS ON BOND INTEREST PAYMENTS, WSJ SAYS

But hey don't sweat it, Moody's think it's great news...

*MOODY'S: DEFAULT BY CHAORI SOLAR WOULD ADVANCE CHINA'S BOND MKT

Maybe tell the issuers that couldn't get their deals off today!!!

Of course what they mean is - maybe the market will finally start pricing in some real risk...

"Over the past few years, municipal governments and banks in China have stepped in to help distressed companies meet their bond payment obligations. These bailouts have led some investors to overlook the fundamental credit risks in bonds," says Ivan Chung, a Moody's Vice President and Senior Credit Officer.

...

"A default would likely make investors recalibrate their risk-return consideration for onshore bonds. Credit risk would play a more important role in pricing, thereby making the bond market more efficient in the allocation of capital," adds Chung.

Chinese stocks are not happy

Wondering who's next? We explained here...

and there are a lot to come...

As Bank of America reports in an analysis by David Cui, the Trust defaults are about to get hot and heavy. To wit:

We believe that during April to July the market may see many trust products threatening to default, especially those related to coal mines. By our estimate, the first real default most likely could happen in May with a Sichuan lead/zinc trust product worth Rmb140mn. This is because the product is relatively small (so the government may use it as a test case), the underlying asset is not attractive (so little chance of 3rd parties taking it over) and we also have heard very little on parties involved trying to work things out. Whether this will trigger an avalanche of future trust defaults remains to be seen and this presents a key risk to the market in our opinion.

Ever since the specter of the first real domestic default on a Chinese corporate bond hovered over the markets, the Chinese credit markets have been leaking lower. The last 3 days have seen the biggest drop in Chinese credit markets in almost 4 months. That situation, wistfully occurring half way around the world while US equity markets press on to ever more exuberant (and ignorant) heights, meant at least 3 other Chinese firms pulled their bond issues today and, as Reuters reports, has "triggered widespread upheaval in the bond market." Banks are awash with liquidity (as indicated by low repo rates) but clearly unwilling to lend and external investors are now running scared.

The Chinese corporate bond market has suffered considerably in the last few days...

Even as repo rates have dropped (and CNY has strengthened) - repo rates at multi-month lows, CNY strengthening and stocks weak...

and SHIBOR at multi-month lows (suggesting plenty of liqudity at the banks but as we see below, a clear unwillingness to lend)...

And that has led to pulled issues...

Via Reuters,

The threat of China's first domestic bond default has prompted Suining Chuanzhong Economic Technology Development to delay a one billion yuan ($164 million) debt issue and two other companies have halted deals blaming market volatility.

...

The run-up in corporate debt since 2008, and overcapacity in sectors such as steel, coal and solar energy, have threatened the solvency of many borrowers.

Chuanzhong said late on Wednesday that the news that Chaori Solar was set to miss a coupon payment on Friday "triggered severe upheaval in the bond market", so it had delayed its bond deal.

Taizhou Kouan Shipbuilding postponed a 300 million yuan issue of short-term commercial paper, while Xining Special Steel cancelled a 470 million yuan offering of medium-term notes, the companies said.

The deals are relatively small, but the delays underline the risk that an unprecedented default will make it harder for other companies to access capital.

...

Yields on corporate and enterprise bonds pushed higher after Chaori Solar's announcement. Five-year AA rated notes rose 8 basis points to 7.77 percent, the biggest increase since November 15, ChinaBond data showed.

...

This situation is being exacerbated as the lending is being cut to the indistries with the most slack - with the result (as we warned about in the past) that commodity-based collateral for all the shadow loans is getting hammered (through no real demand) and crushing the credit system (through haircuts and forced deleveraging as collateral values collapse)...

This is very negative for the Chinese economy which now more than ever is reliant on credit as its growth-driver... and the China credit-crisis indicator remains flashing red (2Y Swap - 2Y Bond spread)...

Charts: Bloomberg

Tulving Closes after Complaints of Delays

Posted: 06 Mar 2014 07:27 PM PST

by Lily Leung, Orange County Register:

An Orange County coin dealer who has been accused by frustrated customers nationwide of delaying numerous gold- and silver-coin shipments has closed shop, according to a posting on the company’s Costa Mesa office window.

"The Tulving Company has closed. More information the week of March 10th," reads the sign, which was seen Thursday at the firm’s headquarters.

It appears a flood of complaints against The Tulving Company and owner Hannes Tulving Jr. led to a state investigation.

Read More @ ocregister.com

After 20 years, gold salvage operations to resume at wreck of SS Central America

Posted: 06 Mar 2014 06:27 PM PST

Gold to Be Lifted from Wreck

From the Maritime Executive magazine
Fort Lauderdale, Florida
Thursday, March 6, 2014

Odyssey Marine Exploration has been awarded the exclusive contract to conduct an archaeological excavation and recover the remaining valuable cargo from the SS Central America shipwreck, located approximately 160 miles off the coast of South Carolina. The ship, which was immortalized in the best-selling book "Ship of Gold in the Deep Blue Sea," sank in 1857 with one of the largest documented cargoes of gold ever lost at sea.

Odyssey was selected for the project by Ira Owen Kane, the court-appointed receiver who represents Recovery Limited Partnership and Columbus Exploration. Kane is charged by the court with overseeing the recovery project and has the benefit of a permanent injunction and exclusive salvage rights over the SS Central America shipwreck granted by the U.S. District Court for the Eastern Division of Virginia. ...

... For the full story:

http://www.maritime-executive.com/article/Gold-to-be-Lifted-from-Wreck--...

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Jim Sinclair plans seminars in Los Angeles and San Diego

Gold advocate Jim Sinclair's next market analysis seminars will be held in Los Angeles from 11 a.m. to 2 p.m. on Saturday, March 8, and in San Diego from 2 to 6 p.m. the following day, Sunday, March 9. Details, including registration information, are posted at Sinclair's Internet site, JSMinset.com, here:

http://www.jsmineset.com/qa-session-tickets/

Join GATA here:

Mines and Money Hong Kong
Hong Kong Convention and Exhibition Centre
Monday-Friday, March 24-28, 2014
Hong Kong Special Administrative Region, China

http://www.minesandmoney.com/hongkong/

Canadian Investor Conference 2014
Vancouver Convention Centre West
1055 Canada Place, Vancouver, British Columbia
Sunday and Monday, June 1 and 2, 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:

http://gata.org/tshirts

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:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16

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.

ECONOMIC COLLAPSE 2014 -- FED Repeats, It Would Take A Major Economic Disruption To Curb The Taper

Posted: 06 Mar 2014 06:25 PM PST

US productivity slows down, factory order have fallen, more retail stores are closing and major layoffs expected in NY. The FED reports the economy is recovering, houses are up, retail is up, unemployment down. The FED is repeating its remarks that it will take a major economic disruption to...

[[ 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! ]]

RT's 'Boom/Bust' interviews GoldMoney's James Turk

Posted: 06 Mar 2014 06:06 PM PST

9:06p ET Thursday, March 6, 2014

Dear Friend of GATA and Gold:

GoldMoney founder and GATA consultant James Turk was interviewed at length yesterday by Erin Ade on Russia Today's "Boom/Bust" program, discussing gold's enduring function as money, the best money insofar as other forms are actually credit with counterparty risk. Central bank suppression of gold prices is mentioned as well. The program has been posted at You Tube and Turk's segment begins at the six-minute mark here:

http://www.youtube.com/watch?v=AMPlBNLCRD0&list=PL6RjmF16oYrLQJeVwzR8lOR...

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

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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
Hong Kong Convention and Exhibition Centre
Monday-Friday, March 24-28, 2014
Hong Kong Special Administrative Region, China

http://www.minesandmoney.com/hongkong/

Canadian Investor Conference 2014
Vancouver Convention Centre West
1055 Canada Place, Vancouver, British Columbia
Sunday and Monday, June 1 and 2, 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:

http://gata.org/tshirts

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:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16

ADVERTISEMENT

Jim Sinclair plans seminars in Los Angeles and San Diego

Gold advocate Jim Sinclair's next market analysis seminars will be held in Los Angeles from 11 a.m. to 2 p.m. on Saturday, March 8, and in San Diego from 2 to 6 p.m. the following day, Sunday, March 9. Details, including registration information, are posted at Sinclair's Internet site, JSMinset.com, here:

http://www.jsmineset.com/qa-session-tickets/

FINANCIAL COLLAPSE 2014 -- Jim Rickards on dollar debasement & Peter Joseph explains the Zeitgeist Movement

Posted: 06 Mar 2014 05:30 PM PST

Zeitgeist. Another godless plan to control the masses. TPTB sensed that the sheeple are turned off by -isms so they give it a name called Zeitgeist. How convenient a master spin doctor of the film genre is the founder and chief propagandist. I'd bet Peter Joseph is Jesuit trained through to the...

[[ 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! ]]

If only the Bank of England could get interested in beer price suppression

Posted: 06 Mar 2014 05:07 PM PST

Beer Bubble: How Price of a Pint Has Risen Twenty-Fold

By Dan Hyde
The Telegraph, London
Thursday, March 6, 2014

http://www.telegraph.co.uk/finance/economics/10682032/Beer-bubble-how-pr...

If the cost of a house seems to have gone through the metaphorical roof over the past 40 years, it is not the only commodity to have been fizzing. The price of beer has risen even more dramatically.

A pint of lager has gone up 20-fold, or by 1,948 per cent, since 1973. The average detached house, by comparison, went from £16,980 to £305,391, a relatively modest 1,699 per cent rise.

Economists warned on Thursday that a growing portion of take-home pay is being devoured by basic spending in shops, pubs, and at the petrol pump and the situation is worsening as a result of slow wage growth in the wake of the financial crisis.

... Dispatch continues below ...

"There is no doubt that the value of money has fallen dramatically since 1973," he said. "It is likely to be reduced significantly further over the next 40 years even if inflation is kept firmly under control."

The research, using data provided by the Office for National Statistics, found that draught lager had risen from 14p a pint in 1973 to L2.87 last year. Petrol prices were 17 times as high, with the price of a litre of diesel growing to around L1.41, from 8p in 1973.

An average detached house now costs 18 times as much as it did in the same year. By comparison, the average weekly wage has risen a a little under fifteen-fold in four decades, from L42 to L620.

On a more positive note, the cost of most foods, including milk, apples, bread, butter, and carrots, has risen more slowly than the average wage.

Even so, the value of the pound has shrunk overall so much that L9.48 in 1973 would have the same spending power as L100 today. In other words, the value of L1 has fallen by 91 percent.

Looking ahead, Lloyds suggested that anyone shopping in 2053 will need to spend L311 to buy goods that would cost L100 today.

It based its estimates on an annual rise of 2.8 percent in the retail prices index. This is consistent with the government's target for inflation.

By decade, retail prices grew most rapidly between 1973 and 1983, at an annual average rate of 13.6 percent. The lowest inflation was between 1993 and 2003, Lloyds said, at 2.6 percent annually. In the decade to 2013, annual inflation averaged 3.3 percent.

* * *

Join GATA here:

Mines and Money Hong Kong
Hong Kong Convention and Exhibition Centre
Hong Kong Special Administrative Region, China
Monday-Friday, March 24-28, 2014

http://www.minesandmoney.com/hongkong/

Canadian Investor Conference 2014
Vancouver Convention Centre West
1055 Canada Place, Vancouver, British Columbia
Sunday and Monday, June 1 and 2, 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:

http://gata.org/tshirts

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:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16

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How to profit with silver --
and which stocks to buy now

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...

New CFTC chief supports commodity speculation limits

Posted: 06 Mar 2014 04:53 PM PST

Massad Pledges Support for Commodity Speculation Limits

By Silla Brush
Bloomberg News
Thursday, March 6, 2014

WASHINGTON -- Timothy Massad, the Treasury Department official named to head the U.S. Commodity Futures Trading Commission, said he would work to approve speculation limits in oil, natural gas, and other commodities that have been resisted by banks and parts of the energy industry.

Massad and commission nominees Sharon Y. Bowen and J. Christopher Giancarlo told Senate Agriculture Committee lawmakers at a confirmation hearing today that they would look to review data and public comments on a current CFTC proposal to set limits on how large a position a trader can have in commodity markets.

"It is very important that we work to finalize that rule," Massad, 57, said at the hearing in Washington. "They are a very important tool in the toolkit, and Congress obviously has directed us to take action in this regard. I will make that a priority." ...

... For the full story:

http://www.bloomberg.com/news/2014-03-06/massad-joins-cftc-nominees-faci...

ADVERTISEMENT

How to profit with silver --
and which stocks to buy now

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
Hong Kong Convention and Exhibition Centre
Monday-Friday, March 24-28, 2014
Hong Kong Special Administrative Region, China

http://www.minesandmoney.com/hongkong/

Canadian Investor Conference 2014
Vancouver Convention Centre West
1055 Canada Place, Vancouver, British Columbia
Sunday and Monday, June 1 and 2, 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:

http://gata.org/tshirts

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:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16

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

London gold fix could use some transparency, Scotia CEO says

Posted: 06 Mar 2014 04:48 PM PST

Scotiabank CEO Porter Says 'Dated' Gold Fix Needs Review

By Sarah Jacob
Bloomberg News
Thursday, March 6, 2014

http://www.bloomberg.com/news/2014-03-05/scotiabank-ceo-porter-says-date...

NEW YORK -- Bank of Nova Scotia Chief Executive Officer Brian Porter said the process for setting gold prices, known as the London gold fix, is outdated and should be reviewed.

"The fix is dated. It has been around for a long time," Porter said today in an interview on Bloomberg Television. "It should be reviewed and any degree of transparency we could bring to that would be healthy."

Bank of Nova Scotia, based in Toronto, is one of five banks overseeing the London gold fix, the century-old benchmark used throughout the $20 trillion market for the metal.

Kevin Maher, a New Yorker who said he buys and sells gold futures and options, sued the banks, which also include Barclays Plc, Deutsche Bank AG, HSBC Holdings Plc and Societe Generale SA, claiming they colluded to manipulate it.

In Venezuela, This Is How You Convert $1 Into $175,000

Posted: 06 Mar 2014 04:31 PM PST

Submitted by Francisco Toro via the Caracas Chronicles blog,

Say you come into Venezuela with just $1 and an eye for business. Just how much money can you turn that bill into using tried-and-true, being-used-right-now scams? With a bit of gumption the answer to that is…$175K or so. Really. Here’s how.

First, take your crisp new dollar bill to a black market currency dealer and buy yourself Bs.85.

Did you make sure to get travel insurance before you trip?

Good.

Now go to a doctor and buy yourself Bs.85 worth of medical attention. Any pretext will do. Don’t forget to get a receipt, though: your insurance company back home will reimburse your 85 bolivar claim at the official rate, giving you back $1 for every 6 bolivars and 30 cents you spent.

So after one doctor’s visit, your $1 has already turned into $13.50. Not too bad.

But we’re just getting going here. Needless to say your next step is to take your $13.50 right back to the currency tout and buy yourself 1,150 bolivars.

Next, take your 1,150 bolivars to any reputable Caracas jeweller. There, you can get about 5.7 grams of 18-karat gold for that. As it turns out, back stateside those 5.7 grams of gold are worth $182.29.

Your Caracas black market dollar dealer will be expecting your call by now: the $182.29 you netted for the gold buys you 15,495 bolivars.

This is fun, isn’t it?

But maybe you’re getting a bit impatient at this point. Sure, a 18,290% profit with no risk and for doing no real work isn’t too bad, but let’s say you want to make some real money.

For that, you need to go to a market with genuinely grotesque price differential. And in a petrostate like Venezuela, that can only mean one thing: gasoline.

At Venezuela’s ludicrous price of 0.097 bolivars per liter, the 15,495 bolivars currently burning a hole in your pocket can buy 159,742 liters of unleaded gas. That’s 42,200 gallons or so.

The next step is to load your gas into a tanker truck and drive it out to Colombia, where each and every one of your 42,200 gallons will sell for US$4.14.

By the time it’s all said and done, that clean, crisp $1 bill you came into Venezuela with has turned into US$174,905.

That’s a seventeen million percent profit margin for doing basically nothing.

This isn’t just some thought exercise, it’s the central reality of the Venezuelan economy today.

The catch, of course, is that the viability of each of these scams depends first and foremost on having official protection from some regime-connected power broker. You can’t smuggle gasoline out of the country without a National Guard officer (or 10) taking a cut. You can’t load much gold into a northbound plane without paying off an airport guard. Any attempt to buy a substantial number of official rate dollars is going to depend on some regime official – probably wearing olive green -giving his go-ahead.

As the protests mount on the streets, it’s important not to lose sight of this: it’s these rackets those guys are protecting.

And their willingness to use violence to protect them is roughly proportional to the profit margins involved.

Chinese: Filthy Rich

Posted: 06 Mar 2014 03:36 PM PST

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Are they Tuhao or just Dama?

The first is the Chinese word for filthy, stinking rich, the uncouth bling-blingy rich of the People's Republic. The second is the name given to middle-aged women dripping in gold. I imagine that two middle-aged women with the yellow bars would lead to a much deserved 'dispute' (yes repeating the ideogram for 'woman' actually means there's 'trouble', telling you a whole lot about what the Chinese actually think about women insociety).

It doesn't quite go with the image of the country that we might have once had. But, things change, even the Chinese have the right to hang up their d?ulì conical hats and don something a bit more ostentatious. Showy, brassy, flash, call it what you will; although you might ask why it's at all necessary for the filthy nouveau riche to go overboard and paint the inside of their houses with gaudy colors and make it look like they have no taste at all. They may have the money, but they don't necessarily have the taste to go with it. Money buys just more money; it doesn't buy you a savvy bit of know-how in the décor stakes. Although, you should be able to pay for someone that does have the knowledge to get you to that.

Whatever they do with their money, the Chinese nouveau riche are working their way up the Forbes rich list.

• China saw a 25% increase in the 2014 Forbes list with 1**52 billionaires**.
• There were only 122 in 2013. Poor things!
• According to Forbes, the list had nearly zero people from China just two decades ago. Although, it's debatable whether they were actually there or not. The party must have had a few even back then hidden away somewhere.
• Admittedly, the Chinese economy might be slowing down, but it's still doing a lot better than the rest of us, whether we like that or not.
• Growth for 2013 stood at 7.7%.

It is interesting to note that statistics are always revealing of who actually does them. The Hurun Global Rich List states that there are 358 billionaires in China. Someone must be getting it wrong somewhere along the line. There are 457 ethnic Chinese that are resident outside of the PRC. But, it's noteworthy that Hurun is sponsored by the Chinese luxury property sector and in particular Star River Property. The data seems just about as reliable as anything that gets published by the Chinese state, these days.

According to Forbes, the richest person in China is now Wang Jianlin, coming in only at 64th place in the ranking, with a net worth standing at $15.1 billion. That is worth a lot more in Purchasing Power Parity there in the People's Republic of China than the rest of us combined ever get hold of in the west.

• Jianlin owns 85 shopping plazas across the country and 51 five-star hotels as well as dozens of department stores.

The second richest person in China is the $13.4 billion Ma Huatent, CEO of Tencent Holdings. The youngest billionaire that has just entered the rankings is 24-year-old Perenna Kei from Hong Kong.

But, before the USA starts worrying that the Chinese are overtaking them, it's not going to happen just yet. There are 492 of them in the US today and they can either thank their lucky stars, or the hordes of workers that drudge into the offices and the factories every day or the fact that the financial market has been jacked up so much with bubble-inducing drugs that they have added more money to their coffers.

Europe came in a close second (as usual?) with 468 billionaires in 2014.

The world's richest in ascending order from tenth to first place are:

• Jim Walton $34.7B USA
• Christie Walton $36.7B USA
• Sheldon Adelson $38B USA
• David Koch $40B USA
• Charles Koch $40B USA
• Larry Ellison $48B USA
• Warren Buffet $58.2B USA
• Amancio Ortega $64B Spain
• Carlos Slim Helu $72B Mexico
• Bill Gates $76B USA

Just a thought? I wonder how many of them actually pay tax? Or if they manage to get around all of that by some wicked web that has been woven. One thing tells me that if they are officially worth that much, then one they might not have that in the bank at their disposal. Secondly, they might well have double that amount. People never declare what they have or own down to the last dime, do they? The 11th person on that rich list is Liliane Bettencourt, heiress of L'Oreal. Back in 2011 she got around paying more than 4% in tax on her wealth. She now has $34.5 billion somewhere (officially), although she has got herself embroiled in a scandal with ex-President Nicolas Sarkozy about illegally financing his election campaign and in return (so the rumor goes) getting out of paying any tax altogether.

Is that the way the Chinese billionaires will be going? If they really want to be like the West, they'll have to go down that road, if they haven't done so already.

Originally posted: Chinese: Filthy Rich

The Gold Price Gained $11.50 Making a New High for the Move at $1,351.70

Posted: 06 Mar 2014 03:26 PM PST

Gold Price Close Today : 1351.70
Change : 11.50 or 0.86%

Silver Price Close Today : 21.542
Change : 0.303 or 1.43%

Gold Silver Ratio Today : 62.747
Change : -0.354 or -0.56%

Silver Gold Ratio Today : 0.01594
Change : 0.000089 or 0.56%

Platinum Price Close Today : 1486.20
Change : 10.20 or 0.69%

Palladium Price Close Today : 780.95
Change : 8.30 or 1.07%

S&P 500 : 1,877.03
Change : 3.22 or 0.17%

Dow In GOLD$ : $205.26
Change : $ (0.81) or -0.39%

Dow in GOLD oz : 9.930
Change : -0.039 or -0.39%

Dow in SILVER oz : 623.06
Change : -5.98 or -0.95%

Dow Industrial : 13,421.89
Change : 61.71 or 0.46%

US Dollar Index : 80.140
Change : -0.030 or -0.04%

The GOLD PRICE mounted $11.50 (0.9%) today to close at a new high for the move, $1,351.70. The gain we attributed to the Ukraine war scare has not evaporated. Silver trotted right alongside and outpaced the gold price, jumping 30.3% (1.4%) to 2154.2c.

Only think that makes my heart race the least little bit about the GOLD PRICE is that the high at $1,352.50 did not quite meet Monday's $1,355. Still, the close was higher. It's also trading in the high half of the Bollinger Bands, but not as smack-up against the top line as it was all through February. And for all the pause at the old $1,360 resistance, the move off the December low does not look complete.

I need not figure this out, as the market will tell us tomorrow by falling sharply away from $1,350 or punching right through it. In that case, you ought to buy it.

The SILVER PRICE better performance today took the gold/silver ratio back below 63:1 for the first time in four days, to 62.747. This is also faint, but hopeful.

Silver has now twice hit the 200 day moving averages (2101c) twice bounced off, and now soared away. It needs only to close above 2218c (the recent high) to launch another rally leg. That, too, would be a spot to buy.

Today's mystery to ponder is the market proverb, "Bull markets always climb a wall of worry."

I thought the US dollar index had plumb fallen off the cliff when I saw it closed down 45 basis points (0.56%) to 79.68. Then I peered at the chart a little closer, drew another line, and durned if it hadn't traced out a falling wedge, which generally (but NOT always) resolves with an upside breakout, i.e., the opposite of the way it points (ditto a rising wedge).

Well, that better be the answer, because at 79.68 the dollar index is at its December low (79.50) and closing in on its low since October (79.06). Behold, the limb of decision. Either the dollar index bounces up from here, or the limb breaks and it hits the ground many points below.

The euro played mirror image of the US dollar index today, rising 0.9% to $1.3860.

I have the same aversion to the euro that I do to cheap shyster lawyers with greasy hair and a smooth line of patter. Doesn't matter how smooth you talk, beneath that pinstriped vest beats no heart and he is way too clever for his own good or mine. Euro is a gallon jug of trinitrotoluene being transported over a bombing range held to the back of a four-wheeler by old rubber bands. One day it'll blow everything to kingdom come. But for today, my, my, it is all shine. It popped way up to the old overhead uptrend boundary and closed up there. If indeed it passes roughly 1.3875, it would run to $1.4000.

But there in that chart appeareth the inverse of the dollar index' falling wedge, namely, a rising wedge. I confess, the euro did break through the top of that wedge today, but that may amount to no more than a fake-out, a false break out that quickly reverses. Euro rose today on news from the European Central Bank commissar's meeting that they would keep their interest rate at 0.25%, and that everythin' in Euroland is jes' hunky-dory peachy, economy-wise. I reckon we'll see.

Yen gave up the ghost today and gapped down 0.74% to 97.03 cents/y100. This takes it below its 20 day moving average and to its 50 DMA, and pierces the lower boundary of its short-lived trading range. Part of this plunge was no doubt occasioned by the euro's quick rise, so let's see if it holds below 97.5 tomorrow.

Stocks behaved oddly today. Always makes me a bit leery when a market jumps way up but give up most of the day's gains by the close. Lack of commitment there. S&P500 made a new all time high close at 1,877.03, up 3.22 (0.17%). It's on its way, it seemeth, to validating a breakout over an earlier high (exceeding 1,888). High today was 1,881.94.

Dow still lags the other indices. Rose 61.71 (0.38%) to 16,421.89. Reason I keep harping on the Dow not confirming the other indices is I remember 2000 so well. Dow topped in January, others didn't top till March, but it blew the warning all that time. Dow showed similar behavior in January this year when for several days before the big drop it refused to confirm new highs in other indices.

Dow in Gold kept on dropping today, down 0.74% to 12.15 oz (G$251.16 gold dollars). Momentum is down, and 200 DMA stands nearby at 11.99 oz.

Dow in silver crossed again below its 20 DMA (763.21 oz) today, falling 1.39% to 761.19 oz. Come to think of it, we may have seen the upper limit of the upward correction two days ago.

On to our meditation, "Bull markets always climb a wall of worry." Plainly spoken, "As bull markets climb, there are always hundreds of reasons that argue they should rise further." However, in a bull (rising) market, all questions eventually resolve at higher prices, so the bull climbs that wall of worry.

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 Gained $11.50 Making a New High for the Move at $1,351.70

Posted: 06 Mar 2014 03:26 PM PST

Why Increased Western Gold Demand Could Lead To A Gold Supply Shortage

Posted: 06 Mar 2014 02:58 PM PST

Gold’s big news story of 2013 was undoubtedly the price drop, followed by the huge gold ETF outflows.

It seems that the tide is turning now, both for the gold price and the ETF gold holdings. There is a good reason to believe that the new appetite for gold ETF’s is fundamentally much more important than a rising gold price. This article makes the case for that.

After the steep gold price drop in April 2013, we discussed the mass exodus of gold holdings in the GLD ETF (see this article):

GLD holdings in the first week of January 2013: 43,149,400.96 ounces [1342,96 tonnes]
GLD holdings today: 33,386,040.80 ounces [1038,42 tonnes]

In addition, we wrote in the same article: “The difference of 10 million ounces of physical gold represents 302 tonnes. To put that figure into perspective, it is 30 times larger than the gold holdings of Cyprus; it would be the 18^th largest gold holding in the world, comparable with the ones of Saudi Arabia and the UK.”

Fast forward to 2014, where do we stand with the gold holdings in the GLD ETF? According to this Mineweb article, the GLD ETF gold holdings were 793.16 tonnes on Jan 31st 2014 and they increased to 803.7 tonnes on Feb 27^th 2014. The author adds to it: “Between the beginning of January 2013 and the beginning of February 2014, this single ETF had shed a massive 557 tonnes of gold as investors deserted it in droves, supposedly in favour of the seemingly ever rising general equity markets.”

The blue line on the following chart represents the GLD gold holdings (chart courtesy Sharelynx, the most comprehensive gold chart center on the internet).

Why is the break of this downtrend so important? The key lies in this question we asked in the same article we wrote a year ago:

The point is not the sale of the gold … The key question is who has been buying these gigantic amounts of physical gold? The gold is not being consumed, so it is in some hands right now. Which ones? We asked the question a couple of weeks ago, but it seems no clear answer exists at this point.

We have the answer to that question meantime.

The mainstream media has focused wrongly on the gold outflows. That made up for interesting headlines, but it was not the most relevant part of the story. The most crucial point was related to the buying. It is clear, meantime, that the physical gold has been flowing to Asia (primarily China) through Switzerland (where refiners have been working overtime since May 2013, melting down the large wholesale bars into smaller pieces for smaller investors and retailers in China).

All this implies that the gold that exited the ETF’s is in strong hands now. It is as sure as a fact that those gold owners will keep their metal in the years to come.

From where will the gold ETF source their gold once the ETF demand turns higher again? It is clear that a supply shortage is a very likely outcome of renewed interest in gold ETF’s. We know that newly mined gold is very limited compared to the existing above the ground gold, so it cannot meet Chinese and Western demand. In fact, above the ground gold IS the supply. So what happens if the appetite for gold in Asia remains strong, if those existing gold owners do not supply their gold to the market, and Western demand increases again? A likely outcome is that a supply shortage develops on top of an increasing demand, reinforcing the uptrend.

Do you hold your gold?

4 Tips To Avoid Gold Scams

Posted: 06 Mar 2014 02:43 PM PST

What is the worst thing that can happen to a gold investor? Consider the following situation. An investor decides to make a gold investment, after having overcome hundreds of counterarguments from mainstream media and economists, ranging from gold being a “barbarous relic” to gold will sell off again because of the economic recovery. The investor, having chosen for gold because of its fundamental values as a financial and monetary asset, then analyzes the many gold investments that exist on the market. He choses one of them and feels safe … until he discovers the investment being a gold scam.

It is critical not fall in one of the gold investment traps. Peter Schiff, founder of Euro Pacific Precious Metals, has released a free anti gold scam report: Classic Gold Scams and How to Avoid Getting Ripped Off. He observes that the majority of investors are playing the US markets and shunning gold, just like they did in 2007 and 2008, right before the financial collapse. For gold investors who are serious about investing safely, we has updated and re-released the Classic Gold Scams report. In it, he provides four tips.

Tip 1: Watch out for the “Bait-and-Switch” tactic

The majority of precious metals scams revolve around a core tactic: the bait-and-switch.

First, the company lures you in with the promise of a good deal on a product you’re genuinely interested in buying. Once they have you on the line, a fast-talking broker will try to convince you that a different product is a better match for your needs. This new product into which they’ve “switched” you is almost always a rip-off.

In the precious metals world, this usually involves an over-priced numismatic or “collectible” coin. The salesman will explain that the unique qualities of this coin make it even more valuable than its metal content. “Why just buy gold, when you could buy a piece of history?” Or so the argument goes.

The entire bait-and-switch technique is designed to confuse you. The dealer preys on your insecurities by making you feel like you don’t have enough knowledge to make a choice for yourself.

Tip 2: Gold is gold, keep it simple

Gold scammers don’t want you to know this simple truth: gold is gold is gold.

The majority of savvy investors are buying gold and silver as a hedge against inflation and the collapse of the US dollar. It doesn’t matter what form our gold takes, as long as it is pure, easily recognized, and authentic.

Sure, there may be rare, historic coins for which well-educated collectors will pay good money. But you need a firm understanding of these coins’ unique traits to correctly assess their value. Without this understanding, it is virtually impossible to select the proper coins to add to your collection or get a fair price when it is time to sell. For most of us, such coins are way beyond our expertise and carry far too much risk.

All we need to protect our wealth is pure gold bullion. Fortunately, the market for bullion is very simple and easy to understand. A complete list of common gold products is included in the Classic Gold Scams report.

That’s the only secret to beating the bait-and-switch scammers: know exactly which product you’re interested in buying ahead of time – and stick to your guns.

Tip 3: Do not believe the price protection racket

In this scam, the dealer guarantees that if the price of gold falls within a certain timeframe, the investor can buy at the lower price. Usually the price protection lasts for about a week after placing your order.

On the surface, price protection sounds great. Who wouldn’t want to be able to avoid short-term market fluctuations when buying precious metals?

Of course, there’s a catch. These price protection programs rarely apply to the common bullion coins that carry the lowest premiums. Invariably, these schemes are only applied to overpriced numismatics or collectors’ edition coins. That’s the only way dealers can afford to offer such a sweet deal. The margins are already huge on collectors’ coins, so allowing buyers to adjust their purchase price has a negligible effect on the dealer’s bottom line.

What’s more, the price protection program often includes an additional fee on top of the purchase price. This builds in an additional cushion to make sure the dealer always comes out ahead.

At the end of the day, price protection is just a scare tactic aimed at investors too concerned with short-term volatility. This fear actually reveals that they’re buying gold for all the wrong reasons.

Tip 4: Buy gold because it is gold

The right reason for most investors to buy gold is as a long-term hedge against inflation and financial instability.

Gold is humanity’s oldest form of money and wealth preservation. A hundred years ago, a gold coin could buy you a custom tailored suit. The same is true today. The purchasing power of gold remains relatively constant over the long-term.

On the other hand, fiat money has historically always failed. The US dollar has not been backed by gold since 1971, which means it has lasted more than four decades as a purely fiat currency. The history of great empires suggests that its time is almost up.

Each of the Federal Reserve’s announcements of another program of money-printing brings that crash – which I have termed the “Real Crash” – closer to fruition.

Remember, if the US economy were really recovering, the Fed’s manipulative policies would not be necessary. Also, gold wouldn’t be seeing the dramatic recovery it has thus far enjoyed in 2014. It’s up 13% since its December lows!

It is recommended to read the recently updated Classic Gold Scams report, edited by Peter Schiff. It avoids to learn the gold scam lessons the hard way, or to let fear of the unknown keep you from safeguarding your family’s savings for future generations.

If you would like more information about Euro Pacific Precious Metals, click here. For the fastest service, call 1-888-GOLD-160.

The Collapse of America's Health Care Industry -- Mark Thornton

Posted: 06 Mar 2014 02:11 PM PST

The Mises View: "The Collapse of America's Health Care Industry" | Mark Thornton Mark Thornton explains why Obamacare is simply one more step along the road to health care serfdom. Thornton is a Senior Fellow at the Mises Institute. For more information, visit the Mises Institute online at...

[[ 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 Daily and Silver Weekly Charts - Non-Farm Payrolls Tomorrow

Posted: 06 Mar 2014 01:29 PM PST

Gold Daily and Silver Weekly Charts - Non-Farm Payrolls Tomorrow

Posted: 06 Mar 2014 01:29 PM PST

The Economist finally has to note complaints of gold price rigging

Posted: 06 Mar 2014 01:09 PM PST

When a GATA delegation visited an editor for The Economist at his office in London in May 2009 to give him the gold price suppression story and the associated documentation, he couldn't get rid of us fast enough.

* * *

In a Fix, Mr. Bond

From The Economist, London
Saturday, March 8, 2014

http://www.economist.com/news/finance-and-economics/21598676-new-concern...

Commodity prices are not just for buyers and sellers of the physical stuff. They are also the basis of derivative markets -- futures contracts, options, and combinations of these and other financial instruments -- which can be far larger. A twitch in the "benchmark" price can mean big shifts in the value of derivatives, and profits for the prescient.

People unhappy with the way the world gold market works suspect that more than prescience may be involved. In a class-action lawsuit filed this week, Kevin Maher, a New York-based investor in the gold and derivative markets, is suing the five banks which set the benchmark -- Deutsche, Barclays, Nova Scotia, Societe Generale and HSBC -- for collusion. Those banks that have commented say they will defend the suit vigorously.

... Dispatch continues below ...

The couple have previously highlighted problems in other benchmarks, such as LIBOR (the London interbank offered rate). Ms Abrantes-Metz says it is "troubling" that a "small group of people" with "complete lack of oversight" set prices in which they have multiple other interests. The anomalous spikes were not noticeable in the period 2001-03, she notes, but became apparent only after 2004, when the gold-derivatives market expanded sharply.

Some participants are getting jittery. Deutsche Bank is withdrawing from the gold- (and silver-) fixing processes, putting its seat up for sale. The German financial regulator, BaFin, has interviewed members of the bank's staff as part of a probe into potential market-rigging of both prices.

Other financial supervisors around the world are investigating a range of commodity and interest-rate benchmarks.

A hangover from an earlier, clubbier age (the London fix started in 1919), they were designed as a way of producing clear prices in illiquid markets. But to a suspicious modern eye, they look archaic and dodgy.

People who are involved in the gold market defend it robustly. Ross Norman, the chief executive of Sharps Pixley, a bullion broker, says that the methodology of the fix is "open, efficient, and transparent" and known to regulators. He agrees that more visibility might help, but decries suggestions that the market could be rigged. Any systematic anomaly, he says, "would be grasped by dozens of institutions, who would make money on the arbitrage."

* * *

Join GATA here:

Mines and Money Hong Kong
Hong Kong Convention and Exhibition Centre
Monday-Friday, March 24-28, 2014
Hong Kong Special Administrative Region, China

http://www.minesandmoney.com/hongkong/

Canadian Investor Conference 2014
Vancouver Convention Centre West
1055 Canada Place, Vancouver, British Columbia
Sunday and Monday, June 1 and 2, 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:

http://gata.org/tshirts

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:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16

ADVERTISEMENT

Jim Sinclair plans seminars in Los Angeles and San Diego

Gold advocate Jim Sinclair's next market analysis seminars will be held in Los Angeles from 11 a.m. to 2 p.m. on Saturday, March 8, and in San Diego from 2 to 6 p.m. the following day, Sunday, March 9. Details, including registration information, are posted at Sinclair's Internet site, JSMinset.com, here:

http://www.jsmineset.com/qa-session-tickets/

If you're sore about the London gold fixing, contact Berger & Montague

Posted: 06 Mar 2014 12:41 PM PST

3:38p ET Thursday, March 6, 2014

Dear Friend of GATA and Gold:

GATA's sometime lawyers, Berger & Montague in Philadelphia, a leading national antitrust law firm, are among those investigating complaints about the daily London gold price fixing, whose suppression of the gold price was documented by GATA's late board member Adrian Douglas in 2010:

http://www.gata.org/node/8919

In recent weeks the daily London gold fixing has been impugned by two studies --

http://www.gata.org/node/13700

http://www.gata.org/node/13681

-- and one federal antitrust lawsuit already has been filed against the five participating banks:

http://www.gata.org/node/13723

If such a lawsuit ever got into what is called the discovery phase, the records of the banks might become subject to a court's review and eventually public, exposing the banks' transactions with the Western central banks that long have been underwriting the gold price suppression scheme.

Of course GATA supports such exposure and encourages gold traders and gold mining companies who feel harmed by gold price suppression generally and the London gold fix particularly to contact Berger & Montague's lead lawyer, GATA's friend Merrill Davidoff, to learn more about the firm's investigation. Presumably that investigation could lead to another federal anti-trust lawsuit for which plaintiffs would be needed.

Contact information about Berger & Montague can be found at its Internet site here:

http://www.bergermontague.com/

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

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Buy metals at GoldMoney and enjoy international storage

GoldMoney was established in 2001 by James and Geoff Turk and is safeguarding more than $1.7 billion in metals and currencies. Buy gold, silver, platinum, and palladium from GoldMoney over the Internet and store them in vaults in Canada, Hong Kong, Singapore, Switzerland, and the United Kingdom, taking advantage of GoldMoney's low storage rates, among the most competitive in the industry. GoldMoney also offers delivery of 100-gram and 1-kilogram gold bars and 1-kilogram silver bars. To learn more, please visit:

http://www.goldmoney.com/?gmrefcode=gata

Join GATA here:

Mines and Money Hong Kong
Hong Kong Convention and Exhibition Centre
Hong Kong Special Administrative Region, China
Monday-Friday, March 24-28, 2014

http://www.minesandmoney.com/hongkong/

Canadian Investor Conference 2014
Vancouver Convention Centre West
1055 Canada Place, Vancouver, British Columbia
Sunday and Monday, June 1 and 2, 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:

http://gata.org/tshirts

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:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16

ADVERTISEMENT

How to profit with silver --
and which stocks to buy now

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...

Russia said to seek repeal of U.S. veto at IMF

Posted: 06 Mar 2014 12:13 PM PST

Russia Wants IMF to Move Ahead on Reforms Without U.S., Sources Say

By Anna Yukhananov and Lidia Kelly
Reuters
Thursday, March 6, 2014

Russian officials are pushing for the International Monetary Fund to move ahead with planned reforms without the United States, which could mean the loss of the U.S. veto over major decisions at the global lender, sources said.

Russian Finance Minister Anton Siluanov brought up the idea at a meeting of top finance officials from the Group of 20 nations in Sydney late last month, two G20 sources told Reuters this week. ...

... For the full story:

http://www.reuters.com/article/2014/03/06/us-imf-reforms-idUSBREA251IN20...

Look For Staggering $570 Surge In Gold & 44% Spike In Silver

Posted: 06 Mar 2014 11:22 AM PST

On the heels of another surge in gold and silver, today top Citi analyst Tom Fitzpatrick sent King World News two incredibly important charts which show that gold may now be poised for a staggering $570 surge and also a 44% spike in silver. Below are the key gold and silver charts that all KWN readers around the world need to see.

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

This Is Going To Be A Huge Surprise For Investors In 2014

Posted: 06 Mar 2014 09:56 AM PST

Today a man who has lived in 18 countries around the world spoke with KWN about what is going to be a huge surprise for investors in 2014. He also gave some stock picks for KWN readers. Keith Barron, who consults with major companies around the world and is responsible for one of the largest gold discoveries in the last quarter century, also talked about what to expect in the gold and silver markets.

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

Ukraine as the U.S. Dollar Waterloo - Immediate Petro-Dollar Risk

Posted: 06 Mar 2014 09:51 AM PST

The desperation of the Anglo-American leadership, guided by the steady corrupt banker hands, has never been more acutely high, nor obvious in full view. The entire Ukraine situation is a travesty. It includes Langley agents killing police and street demonstrators from rooftops, the confirmation coming from the Estonian Embassy (translation of scripts). It includes thefts of official Ukrainian Govt funds, again sent to the Swiss hill sanctuary. It includes sanctions delivered by a US Paper Tiger, sure to cause horrific backlash. It involves the last gasp attempt to obstruct the Gazprom energy pipelines, which will inevitably corner the European market in monopoly. It involves subterfuge with the NATO card (aka Narcotics And Treachery Outlaws) with missiles placed on the Russian borders. Look for NATO members to find a back door to exit the spurious treaty. It involves playing with nitro-glycerine in the Petro-Dollar room. It involves putting tremendous risk for much more clear isolation of the United States. The more the USGovt pushes, the more the US will be isolated. Remember that Nazis steal from their enemy states, de-fraud from their allied states, and force themselves into an isolated state. In Ukraine, the United States has over-played its weak hand. Already, a secret document was leaked in London that the UKGovt would not support the US-led sanctions against Russia.

UK QE and 0.5% Interest Rates, 5 Years On

Posted: 06 Mar 2014 09:42 AM PST

UK interest rates have never been lower. But they have been stuck low for longer. Much longer...

FIVE YEARS ago, writes Adrian Ash at BullionVault, "It is fair to say nobody predicted this record low [in UK interes rates] would last as long as it has," reckons the Economic Research Council.

Not so. History said otherwise and very loudly. We coughed it too...

As you can see on that chart, the last 5 years paid the lowest rate since the Bank of England was founded in 1694. The previous floor was 2%. But this hasn't been the longest stretch of inactivity. That came in the 18th century, when the Court left Bank Rate at 5% for 100 years.

Bondholders ruled the country, after all. Being paid in gold, cash needed a decent rate of interest to deter savers from swapping it for bullion, too.

More pertinent, the Great Depression of the 1930s saw the Old Lady throw Bank Rate into the bin for 20 years. Boxing policy into that corner...way down at 2%...meant impotence was the only choice until sharply rising inflation forced the Bank from its stupor.

But too little, too late. The collapse of Sterling and the 1970s' wipeout were already baked into the crust.

What the Bank didn't do during the 18th century, the Great Depression, nor the 1970s was print enough money to buy one-third of all UK government bonds in issue. And seeing how the Bank of England has now imagined £375bn of QE cash into reality since 2009, what's most remarkable about the last 5 years is that gold and silver did so much better before money-printing and near-zero rates began.

Two thoughts...

First, precious metals offer savers and investors financial insurance. Waiting until your house has been flooded makes buying cover expensive, if not impossible. Prudence acts early. Gold and silver remain the best performing assets over the last decade by a country mile over.

(Note that back in 2004 the Bank of England had just slashed rates to 3.5%...a half-century low...to stem the DotCom Crash in the stock market. Cheap money didn't begin in 2009.)

Second, QE hasn't been inflationary. Not yet. But currently stuck at Threadneedle Street as banking reserves, those frozen billions will melt back into the economy, either written off as "debt relief" to the Treasury...or forced into reality at maturity.

Savers and investors wanting to insure against that flood of financial meltwater might want to get in a few sandbags early. Avoid the rush.

UK QE and 0.5% Interest Rates, 5 Years On

Posted: 06 Mar 2014 09:42 AM PST

UK interest rates have never been lower. But they have been stuck low for longer. Much longer...

FIVE YEARS ago, writes Adrian Ash at BullionVault, "It is fair to say nobody predicted this record low [in UK interes rates] would last as long as it has," reckons the Economic Research Council.

Not so. History said otherwise and very loudly. We coughed it too...

Bondholders ruled the country, after all. Being paid in gold, cash needed a decent rate of interest to deter savers from swapping it for bullion, too.

But too little, too late. The collapse of Sterling and the 1970s' wipeout were already baked into the crust.

Two thoughts...

(Note that back in 2004 the Bank of England had just slashed rates to 3.5%...a half-century low...to stem the DotCom Crash in the stock market. Cheap money didn't begin in 2009.)

Savers and investors wanting to insure against that flood of financial meltwater might want to get in a few sandbags early. Avoid the rush.

UK QE and 0.5% Interest Rates, 5 Years On

Posted: 06 Mar 2014 09:42 AM PST

UK interest rates have never been lower. But they have been stuck low for longer. Much longer...

FIVE YEARS ago, writes Adrian Ash at BullionVault, "It is fair to say nobody predicted this record low [in UK interes rates] would last as long as it has," reckons the Economic Research Council.

Not so. History said otherwise and very loudly. We coughed it too...

Bondholders ruled the country, after all. Being paid in gold, cash needed a decent rate of interest to deter savers from swapping it for bullion, too.

But too little, too late. The collapse of Sterling and the 1970s' wipeout were already baked into the crust.

Two thoughts...

(Note that back in 2004 the Bank of England had just slashed rates to 3.5%...a half-century low...to stem the DotCom Crash in the stock market. Cheap money didn't begin in 2009.)

Savers and investors wanting to insure against that flood of financial meltwater might want to get in a few sandbags early. Avoid the rush.

Renewed Indian Demand Driving Gold Prices Higher?

Posted: 06 Mar 2014 09:31 AM PST

Gold Forecaster

Time to Change UK Monetary Policy

Posted: 06 Mar 2014 09:23 AM PST

Economic growth might be the "new normal". Zero interest rates aren't...

THIS WEEK marks the fifth anniversary of the decision of the Bank of England Monetary Policy Committee (MPC) to cut the official Bank Rate to 0.5% and to launch Quantitative Easing (QE) writes former Bank of England policy-maker Andrew Sentance, in this article based on a speech to the Institute of Economic Affairs State of the Economy Conference late last month.

These decisions were taken in the depths of the financial crisis, and they were absolutely the right thing to do at the time. I was a member of the MPC in March 2009, and along with the other eight members of the Committee fully supported the decision to cut interest rates to the lowest level in recorded history and to inject £200bn of money into the economy during 2009 by buying government bonds.

At that time, the expectation of the financial markets – and I'm sure this was the view of most members of the MPC too – was that interest rates would rise once the recovery was underway in 2010 and beyond.

The reality of course has turned out to be very different – as the chart clearly shows.

Instead of raising interest rates during 2010 and 2011, the MPC embarked on two further rounds of QE. It is not clear that this did very much for the recovery, though. UK economic growth in 2011 and 2012 was held back by high inflation and the Euro crisis.

QE could do little to address these problems – and the negative impact of QE on the value of the Pound probably aggravated the squeeze on real incomes from high inflation. But we are coming out of this soft patch of growth in the UK and other Western economies. And so the question is once more on the agenda – when, how far and how fast will interest rates rise.

The answer coming from Mark Carney and the MPC appears to be "not any time soon".

However, the MPC's policy of trying to hold down borrowing costs in the face of an improving economy carries the risk that the adjustment of rates, when it comes, has to be sharper and more abrupt. That would deliver the shock to the economy which we should all be trying to avoid. We saw the consequences of this in the US in the mid-2000s, when the Fed held interest rates at 1% for too long and then pushed them up quickly to over 5% between late 2004 and early 2006. That policy change was one of the triggers for the global financial crisis, so the risk I am warning about is not trivial.

There are five main arguments being used in speeches and statements to support the current MPC policy. Growth is still fragile, weak or unbalanced; there is plenty of spare capacity; inflation is low; an appreciation of the Pound would be damaging; and households cannot sustain an interest rate rise because of high debts.

In each case, however, the evidence does not really support the MPC position – particularly when we take into account the exceptionally low level of interest rates we are starting from – lower even than in the Great Depression of the 1930s. The monetary policy settings required to address the very extreme financial conditions of 2009 are becoming less and less appropriate as the recovery progresses, particularly with economic growth picking up over the past 6-9 months.

When we consider growth in the UK economy and across the western world after the economic crisis, it is very important to recognise that we are in a "new normal" growth world where we should not expect to return to the heady rates seen before the crisis. In the quarter century before the financial crisis, the UK economy grew on average by 3.3%. The average growth rate over this recovery so far – if we exclude the depressing impact of North Sea oil – has been about half this rate (1.6%). Even compared to a long-term average growth rate for the UK economy (between 2.25% and 2.50%), this is disappointing.

As I argue in my book – Rediscovering growth: After the crisis – the reasons for this sluggish growth are largely structural. Three tailwinds which supported Western growth from the 1980s to the mid-2000s are no longer with us – easy money, cheap imports, and confidence in policy-makers' ability to stabilise economies.

Western economies are going through a slow process of adjustment to find new sources of growth in this post-crisis world. The US, UK and northern and eastern Europe look much better placed to make this adjustment than the struggling economies of southern Europe and France. So in the medium-term it is reasonable to expect growth to gradually pick-up here in the UK. But it may not be until later in the decade that we feel the full benefits.

Relative to this subdued growth trend of 1.5-2%, the recent pick-up in UK economic growth is quite impressive. GDP is up 2.7% on a year ago, which is strong growth by the standards of the post-crisis "New Normal". The UK growth picture looks even better in employment terms. Since the end of 2009, the private sector has created 1.7 million extra jobs, including self employment and part-time workers. That is an impressive achievement by any standards, and does provide a counter to the prevailing view that this is the worst recession since the 1930s. The UK's employment record in the recent recession and current recovery is much better than the experience following the early- 1980s and early-1990s recessions – as the chart shows.

I do not have much sympathy with the notion that that current growth is unsustainable or unbalanced, either because the economy has not rebalanced enough towards manufacturing or because investment growth is weak. We have heard these arguments before at the early stages of previous recoveries.

Investment takes time to pick up and the UK is a highly services-oriented economy. Indeed, exports of services from the UK are the highest proportion of GDP of any G7 economy – 12% compared with around 6% in the major continental European economies and 4% in the US. It is not the job of policy-makers to prescribe where growth will come from. It is their job to create the underlying conditions which make it possible – including sustainable fiscal and monetary policies and appropriate supply-side reforms. Also, some of the hand-wringing about the sustainability of the recovery is coming from people who did not recognise the unsustainability of growth before the crisis. We need to accept that it is businesses and the supply-side fundamentals of the economy which will determine the nature of the recovery, not the views of policy-makers.

In assessing the sustainability of growth, I would put much more weight on what businesses themselves have been saying. Business surveys have become increasingly positive over the past year and the most recent surveys from the CBI and other business organisations have generally been encouraging about future growth prospects. That underpins the optimism of forecasters that 2014 will be the strongest year of recovery so far in the UK, with most forecasters expecting GDP to rise on average by 2.5-3% this year.

Another area where survey evidence provides a helpful guide is in assessing the margin of spare capacity. The Bank of England's Agents' survey tracks capacity constraints in manufacturing and services and the latest results are shown in the chart. Contrary to the MPC view that there is a sufficient margin of spare capacity, the Agents' reports show that for the first time since early 2008, capacity constraints are above normal in both manufacturing and services. The MPC points to the amount of spare capacity which is available in the labour market. But this is rapidly being taken up as unemployment falls and skill shortages increase.

According to the MPC analysis, there is around 1-1.5% of GDP in spare capacity available in the economy – which seems to me a pretty slim margin given the difficulties of measuring spare capacity, and the errors in previous estimates. With the economy growing strongly and spare capacity being quickly eroded, the obvious response should be to gradually tighten monetary policy. However, an additional argument is now being advanced against this obvious course of action. Inflation is back on target – so we don't need to worry. Never mind the fact that inflation has spent most of the last decade above target, and that the Bank's forecasting record for inflation beyond the next 6 months has been pretty appalling.

I am more optimistic now that inflation can stay around the target, though there are still risks from a renewed surge in energy and commodity prices and/or from wage inflation. However, I do not see a more encouraging inflation outlook as a reason for keeping to emergency interest rate levels set during the financial crisis. If we wait until there is a "clear and present" danger from inflation, we will then need to raise interest rates sharply from current levels – which is exactly what we should be trying to avoid! I also think that deflationary fears are greatly exaggerated;

The latest evidence on growth, capacity and inflation do not – in my view – support the current MPC position of keeping interest rates on hold. The fourth issue which seems to concern MPC members in terms of raising interest rates is the potential impact on the value of the Pound.

Though Sterling has recovered a little in recent months, it still looks significantly undervalued. The average level of Sterling against our trading partners since 2009 has been about 22% below its average in the 30 years 1977-2006. The UK economy pays its way in the world with exports of high value-added manufactures and services, most of which are not very price sensitive. All we get from a weak pound is an additional squeeze on consumers from high import prices.

As I said three years ago, in my "Selling England by the Pound" speech, embracing a weak Pound remains one of the biggest policy mistakes that the MPC has made since the financial crisis. The prospect of a further appreciation in Sterling should be welcomed – not resisted – by the MPC, as long as it does not go too far, too fast. Concerns about the strength of the Pound are not good reasons for resisting an interest rate rise when the economy is growing well and capacity pressures are increasing. Indeed, the MPC are at risk of repeating the mistake which Nigel Lawson made in the late 1980s, which ultimately led to a very sharp hike in interest rates as the economy overheated.

Finally, what about household debt? It is sometimes argued that a rise in mortgage costs will push many households over the edge into arrears, creating many distressed borrowers and a collapse in consumer spending.

I don't buy this argument. Or I only buy it to the extent that there could be a big upward shock to interest rates – which is exactly what I am trying to avoid. The chart (right) shows two measures of the financial exposure of the UK household sector: financial liabilities (ie borrowing) and the net financial position of UK households. There is a gradual process of deleveraging, partly reflecting restricted availability of mortgage finance, so the liabilities line is gradually falling.

That is what we would expect and it may take some time for UK households to fully adjust to the post-crisis world. But if we keep interest rates at 0.5% until this adjustment is complete, there will then need to be a rapid rise in borrowing costs further down the track. Much better to signal and implement a gradual rise so that households can plan and adjust to change over a period of time.

The other line on the chart is the net financial position of the UK household sector, including assets as well as liabilities. The first point to note is that this is strongly positive – about 2.8 times disposable income. If housing wealth were added in it would be about 7 times household disposable income. The UK household sector has very considerable reserves of financial and non-financial wealth, even if it is not distributed as equally as we would like. Second, the net financial position of the UK household sector is as strong as it has been at any time since the late 1980s with the exception of the dotcom bubble in the late 1990s and at the peak of the pre-crisis boom in 2006/7.

By delaying interest rate rises, or giving false comfort that they will remain artificially low, the MPC risks aggravating problems of household indebtedness, not least because house prices are likely to continue to rise. The financial position of the UK household sector is not a valid reasons for delaying interest rate rises.

It will be clear from the arguments I have made that I do not agree with the current policy of the MPC, or its approach to forward guidance. There is a role for forward guidance in setting out a path for gradually raising interest rates. This is the policy that the MPC should have embarked upon lastg summer. They have wasted six months. And the longer they wait and delay, the greater is the risk that when interest rates do rise, it will be a sharp increase that disrupts, rather than supports the recovery which is now becoming well-established.

Time to Change UK Monetary Policy

Posted: 06 Mar 2014 09:23 AM PST

Economic growth might be the "new normal". Zero interest rates aren't...

The reality of course has turned out to be very different – as the chart clearly shows.

The answer coming from Mark Carney and the MPC appears to be "not any time soon".

Gold to Rise on Indian Import Easing?

Posted: 06 Mar 2014 09:04 AM PST

Smuggling means the CAD isn't really dropping. But if restrictions are eased...?

SINCE last August, writes Julian Phillips of the GoldForecaster, the government of India, the world's largest gold consumer nation, placed a stranglehold on gold imports into the country.

The Indian government requires that 20% of all gold imported be re-exported as jewellery. This forced the amount of gold imported to drop to less than one-third of former levels until October of last year.

The amount imported has since risen to 38 tonnes a month and has held at that level. But the amount of gold that was expected to be imported for the year was north of 1,200 tonnes. India only achieved an imported total of 825 tonnes, around 400 tonnes less than expected.

If the Indian government eases these restrictions in the end-March budget seven days ahead of the elections (and we expect they will), will it cause a jump in demand from the London market, where India sources its gold from? If so, would that be sufficient to send the gold price soaring?

It may appear so, until we peer under the obvious at the basics.

The reason the government gave for the gold import curbs was that it had to curb its Current Account Deficit (CAD), the gap between the flow of money into and out of India. Since the gold bullion import curbs, this deficit has 'officially' fallen back substantially. To ease restrictions at the end of March would gain votes for the government, so it has every incentive to do so.

However, a simple easing-up on restrictions will not be sufficient to increase demand. The reason is the very high duties the government started to raise from the start of 2013. At a total of 15%, the duties on gold provide every incentive to smugglers to bring gold in illegally. It's guesstimated that 250 tonnes of gold are entering the country illegally and likely more. We guess this figure by the perceived shortages in the internal gold market there. At 250 tonnes of smuggling, there would be a shortfall on total imported volumes of gold on last year's expected 1,200 tonnes of 150 tonnes.

If the government dropped duties to 5% or less, the incentives to bring in gold illegally would fall dramatically. Would this stop smuggling? No, because the shortage of gold would persist. What it would do is to add a 'shortage' premium to the gold price over and above legally imported gold's prices that would ensure continued smuggling.

One advantage to the government in allowing the current restrictions to persist is that the costs of smuggled gold are not added to 'official' figures when calculating the Current Account Deficit, giving the impression that it is dropping, when the reality is that it is not.

But the second reality is that the restrictions are not keeping much more than 10% of demand for imported gold back. In itself this is a defeat for government. Hence, there is little point in maintaining restrictions on gold imports.

Their political unpopularity must be weighed against the extra revenue the government is drawing in on the legally imported gold. With election beginning on April 7th we expect to see restrictions convincingly lifted so as to gain the most votes.

How much volume of gold would then be imported and its impact on gold prices? What will that do to the volume of gold imports? We believe it would add a real total of between 150 tonnes and 200 tonnes of demand to the London market. Is this enough to boost prices? Ordinarily you would think not, but bear in mind the growing levels of total Asian demand and you see that the demand / supply levels are leaving the market tightly balanced.

Rather like a see-saw tipping over, even an extra 200 tonnes would add an extra 4 tonnes a week to current demand where global supply is around 84 tonnes a week. So in itself, it would not have a dramatic impact, but in a balanced market, it would have a disproportionate impact, particularly when Indian and Chinese demand is growing constantly.

If allowed to import all the gold wanted by Indian investors we may see 1,300 tonnes or more of demand from Indian investors in 2014. As it is we need extra supplies to cope with the rising demand, but they're not coming at current price levels. Bear in mind that the 1,300 tonnes of extra supply from the US last year appears to have dried up in 2014. It is against this background that we conclude that yes, gold prices would be pushed higher by an easing of duties and restrictions on Indian gold imports, disproportionately more than the actual increase in the tonnage then imported!

Gold to Rise on Indian Import Easing?

Posted: 06 Mar 2014 09:04 AM PST

Smuggling means the CAD isn't really dropping. But if restrictions are eased...?

SINCE last August, writes Julian Phillips of the GoldForecaster, the government of India, the world's largest gold consumer nation, placed a stranglehold on gold imports into the country.

It may appear so, until we peer under the obvious at the basics.

Is renewed Indian demand driving gold prices higher?

Posted: 06 Mar 2014 08:52 AM PST

Julian Phillips thinks gold prices will be pushed higher by an easing of duties and restrictions on Indian gold imports.

Demand to rise but rallies capped by gold’s flow to price-sensitive East

Posted: 06 Mar 2014 08:52 AM PST

According to analysts, the change in emphasis in the gold market to buyers in the East is likely to make prices more reactive to sharp rallies.

Trader files lawsuit against London gold fix banks

Posted: 06 Mar 2014 08:52 AM PST

New York resident Kevin Maher has filed a lawsuit against the five banks involved in setting the London gold fix, according to a filing in US District Court in Manhattan.

Scotiabank CEO says ‘dated’ gold fix should be reviewed

Posted: 06 Mar 2014 08:52 AM PST

CEO Brian Porter says the process for setting gold prices, known as the London gold fix, is outdated and should be reviewed.

Gold may rise toward $2,000 in two years – Barrick CEO

Posted: 06 Mar 2014 08:52 AM PST

Jamie Sokalsky thinks gold prices may retest previous highs and rise toward $2,000 an ounce within two or three years.

Randgold receives approaches for Senegal gold project

Posted: 06 Mar 2014 08:52 AM PST

The Massawa project doesn't currently meet Randgold's requirements for development, CEO Mark Bristow said in a presentation in Toronto on Wednesday.

India current-account gap narrows to 4-year low on gold tax

Posted: 06 Mar 2014 08:52 AM PST

The deficit was $4.2 billion in October through December, compared with $5.2 billion for the prior quarter, says the Reserve Bank of India.

The Truth About The Conflict Over Ukraine

Posted: 06 Mar 2014 08:19 AM PST

[Secretary of State, John ] Kerry, wallowing in his arrogance, hubris, and evil, has issued direct threats to Russia. The Russian foreign minister has dismissed Kerry's threats as "unacceptable." The stage is set for war. - Paul Craig Roberts

Before I elaborate on the above a quote with a few salient passages from PCR's brilliant analysis and commentary on the situation in Ukraine, I want to clarify for anyone reading this that the U.S. has funded and militarily supported a political regime in western Ukraine that has ingrained political and military roots with Hitler's Nazi Party. This is an undisputable fact. If you decide to fall for the Orwellian rhetoric flooding all of the U.S. news outlet, you are doing so out of complete ignorance of the facts.

Kerry has no answer to the question: "Since when does the United States government genuinely subscribe and defend the concept of sovereignty and territorial integrity?"

In working with Dr. Roberts on several collaborative articles about the U.S. Government's long term and massive intervention in the gold market, I have come to appreciate the deep insight and understanding he has for what is really happening behind "the curtain" in DC. His ability to communicate and elucidate this reality is nothing short of brilliant.

Washington wants missile bases in Ukraine in order to degrade Russia's nuclear deterrent, thus reducing Russia's ability to resist US hegemony. Only three countries stand in the way of Washington's hegemony over the world, Russia, China, and Iran.

His latest article on the truth about what is happening in Ukraine and why the U.S. has fomented political and civil chaos over there is a must-read for anyone who seeks the truth.

Everyone needs to understand that Washington is lying about Ukraine just as Washington lied about Saddam Hussein and weapons of mass destruction in Iraq, just as Washington lied about Iranian nukes, just as Washington lied about Syrian president Assad using chemical weapons, just as Washington lied about Afghanistan, Libya, NSA spying, torture. What hasn't Washington lied about?

I encourage everyone to read Dr. Roberts' full article here: Washington's Hubris

If you are confused about the facts, please educate yourself with this article from geopolitical and economic analyst, William Engdahal: The [U.S.] Rape of Ukraine

Keep in mind that throughout history, the most definitive sign that a great Empire is in the latter stages of collapse is wantonly corrupted and reckless imperialism - of which we've seen many examples since Bush and Obama took office.

The Truth About The Conflict Over Ukraine

Posted: 06 Mar 2014 08:19 AM PST

[Secretary of State, John ] Kerry, wallowing in his arrogance, hubris, and evil, has issued direct threats to Russia. The Russian foreign minister has dismissed Kerry's threats as "unacceptable." The stage is set for war. - Paul Craig Roberts

Kerry has no answer to the question: "Since when does the United States government genuinely subscribe and defend the concept of sovereignty and territorial integrity?"

Washington wants missile bases in Ukraine in order to degrade Russia's nuclear deterrent, thus reducing Russia's ability to resist US hegemony. Only three countries stand in the way of Washington's hegemony over the world, Russia, China, and Iran.

His latest article on the truth about what is happening in Ukraine and why the U.S. has fomented political and civil chaos over there is a must-read for anyone who seeks the truth.

Everyone needs to understand that Washington is lying about Ukraine just as Washington lied about Saddam Hussein and weapons of mass destruction in Iraq, just as Washington lied about Iranian nukes, just as Washington lied about Syrian president Assad using chemical weapons, just as Washington lied about Afghanistan, Libya, NSA spying, torture. What hasn't Washington lied about?

Gold Price "Will Probably Test $1400" as Crimea Moves to Quit Ukraine, US Fed Sees "Many, Many Years" of Ultra-Low Rates

Posted: 06 Mar 2014 06:13 AM PST

GOLD PRICE trading in London kept bullion prices in a 2-day range between $1330 and $1340 per ounce Thursday morning, while Ukraine's Crimea crisis continued to dominate headlines ahead of tomorrow's much-awaited US jobs data.

Trading some 1.5% below Monday's new 4-month high, the gold price fell for Euro investors, dipping beneath €970 as the single currency rose after ECB chief Mario Draghi reaffirmed a commitment to ultra-low rates.

Members of parliament in the Crimea today voted to put joining Russia to a referendum on March 16th – a move that Reuters called a "dramatic escalation".

Hürriyet Daily News says the Turkish authorities "have given permission to a US Navy warship to pass through the Bosphorus within the next two days."

militarized.

Although the situation is likely to cool short term, "Don't be surprised to wake up one morning to hear that there is shooting going on," said Bill O'Neill of Logic Advisors yesterday, taking part in Bullionvault's live Ukraine & Gold Price Panel yesterday.

The gold price "will probably see a test of $1400 over the next 3-4 months," O'Neill believes.

Agreeing on that near-term test, "Support for gold at $1280 will hold," added 30-year commodities trader and author Andy Hecht.

Over in Shanghai meantime, China gold prices today went to a premium for the first time this week to the world's benchmark of London settlement.

Rising to $1.40 per ounce, premiums for spot bullion on the Shanghai Gold Exchange peaked at $50 last summer. They were last negative for almost a week in February 2012.

"Feedback from the ground suggests that underlying [Asian] physical demand is currently soft," says a note from Swiss investment and bullion bank UBS.

But "long-term demand support from Asian nominal income growth," counters a new note from Asian brokerage Nomura, "[plus] an evolving post-QE macroeconomic environment and lower disinvestment potential move our gold equilibrium model."

Raising its forecast for gold prices to average $1335 this year, Nomura also hikes its silver price forecast, up by 32% to $21.52.

Silver was trading today at $21.20 per ounce, just shy of last week's finish.

"Last year's shift in the gold market was rapid and the price response substantial," Nomura explains, with a reduction in the US central bank's monthly QE money creation scheme flagged from spring 2013.

With US interest rates now held at zero since end-2008, Federal Reserve member and so-called "dove" John Williams of the San Fran Fed told CNBC yesterday that "it'll be many, many years" before the US returns to pre-crisis GDP growth.

"I'm very worried," added Charles Plosser of the Philadelphia Fed this morning, "about the unintended consequences of all this [QE and now tapering] action. Because we've never been here before."

The Bank of England today voted to keep its key interest rate at a record low of 0.5% for the 60th month running – the longest "no change" decision since the UK's central bank "threw interest rates in the bin" from 1932 to 1954, in the words of monetary historian Glyn Davies.

Eurozone policy-makers also voted today to keep their rates unchanged at the record low of 0.25% reached last October.

ECONOMIC COLLAPSE 2014 -- The End of Austerity?

Posted: 06 Mar 2014 06:00 AM PST

Guest host Mike Papantonio is in for Thom Hartmann tonight and discusses Obama's new budget with Campaign for America's Future Richard Eskow, income inequality with Economist Richard Wolff and voting rights with Attorney David Haynes. In tonight's "Daily Take" Thom discusses how the multiplier...

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Renewed Indian Demand Driving Gold Prices Higher?

Posted: 06 Mar 2014 05:04 AM PST

Current Situation Since last August, the Indian government placed a stranglehold on gold imports into the country by requiring that 20% of all gold imported be exported as jewellery. This forced the amount of gold imported to drop to 30% of former levels until October of last year. Then the amount imported rose to 38 tonnes a month and has been at that level since then. The amount of gold that was expected to be imported for the year was north of 1,200 tonnes. It only achieved an imported total of 825 tonnes, around 400 tonnes less than expected.

U.S. Dollar's Long Term Decline

Posted: 06 Mar 2014 03:58 AM PST

The cleanest of the dirty shirts doesn’t necessarily preserve your purchasing power. Sure, the U.S. dollar has beaten the Russian Ruble and some others of late, but when it comes to real competition, the U.S. dollar has taken a back seat. The U.S. dollar’s long-term decline may be firmly in place and investors may want to buckle up to get ready for the ride.

Gold Price, Global Politics & Ukraine: Expert Roundtable

Posted: 06 Mar 2014 03:29 AM PST

Andrew Hecht and Dennis Gartman join expert panel debating Russia/Ukraine crisis and gold prices...

GOLD PRICES rise on war and geopolitical threats. Or so runs a common idea now Russia is threatening Ukraine, writes Miguel Perez-Santalla, vice president of BullionVault, the world's largest physical metals exchange for private investors online.

Current events in the Crimea make this gold price assumption an urgent topic for savers and investors. Which is why I just hosted this roundtable of market experts to discuss global politics and how it impacts commodities markets.

Speaking to four leading experts on gold prices, commodities markets, economics and politicals, I gathered their latest insights on the Ukraine-Russia events, precious metals outlook, and investment perspectives.

Listen To Business Internet Radio Stations with New York Markets Live on BlogTalkRadio

Bill O'Neill of Logic Advisors has visited Ukraine twice in the past 18 months. Bill believes the situation will quiet down in the short-term. "But don't be surprised to wake up one morning to hear that there is shooting going on..."

Commodities trader and author Andy Hecht agrees. "It's not the end, it's the beginning," he told my gold price panel, pointing out that crude oil has backed off in the past couple of days, although palladium is still up strongly. Because "Russia produces 80% of the world's palladium."

Author of daily trading advisory Dennis Gartman said events in Ukraine sparked an instantaneous flow of money into gold. Grain and crude oil also saw price spikes, on the belief that supplies would be cut off from the Ukraine – the world's third-largest exporter of corn and fifth-largest exporter of wheat.

"Interestingly, the Yen got stronger. People may have believed that the Yen was a safe harbor, which I don't understand," said Gartman, currently long of the gold price in Yen terms as he expects the currency to underperform.

Gold politics and investment expert George Milling-Stanley meantime noted that either "gold has had a really bad time, because it's dropped more than 30% from an all-time high. Or you can say that gold is actually performing quite well because it's building a base that's 5-times the level of where it was just a decade ago."

Listen to the full hour-long show here at Bullion Vault's New York Markets Live special on Ukraine and commodities.

Gold Price, Global Politics & Ukraine: Expert Roundtable

Posted: 06 Mar 2014 03:29 AM PST

Andrew Hecht and Dennis Gartman join expert panel debating Russia/Ukraine crisis and gold prices...

Listen To Business Internet Radio Stations with New York Markets Live on BlogTalkRadio

"Interestingly, the Yen got stronger. People may have believed that the Yen was a safe harbor, which I don't understand," said Gartman, currently long of the gold price in Yen terms as he expects the currency to underperform.

Listen to the full hour-long show here at Bullion Vault's New York Markets Live special on Ukraine and commodities.

US deep storage gold - weights

Posted: 06 Mar 2014 02:54 AM PST

Perth Mint

Save Your ASSets First

Friday, March 7, 2014

Gold World News Flash

Gold World News Flash

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