Gold World News Flash |
- Limits to Employment Participation, and Societal Change
- Prepare For Dollar Collapse With 33% Allocation To Gold - Rickards
- DHS Is Preparing For The Next Disaster Which Will Cover Up The Economic Collapse
- The Secret That Has U.S. & Western Leaders Truly Terrified
- Gold Price Marks Crash Anniversary by Rising to April '13 Low as US Tech Slump Spreads
- Gold Price Marks Crash Anniversary by Rising to April '13 Low as US Tech Slump Spreads
- Great Depression II
- Weekly News Wrap-Up U.S. & Russia at Odds over Ukraine, GOP wants IRS Chief Prosecuted, Sebelius, Out over Obama Care
- The Truth About the Nevada Rancher’s Standoff
- Koos Jansen: New physical gold exchange in Singapore
- HFT in Comex gold is like the old London Gold Pool, Kaye tells KWN
- Prepare For Dollar Collapse With 10% To 33% Allocation To Gold – Rickards
- Alasdair Macleod: Gold and bail-ins
- Large Decline Of Shanghai & Comex Silver Stocks
- China Gold Imports Through Hong Kong
- U.S. Gold Gone & What 52 Years In This Business Taught Me
- The Truth About the Nevada Rancher's Standoff
- Chris Martenson and Alasdair Macleod discuss China's corner on gold
- Shocking Charts Show Silver Set For A Staggering $70 Surge
- Pat Heller: U.S. has rigged precious metals markets for 80 years
- The Gold Price Gained $14.6 or 1.1 Percent Today to Close Comex at $1,320.10
- The Gold Price Gained $14.6 or 1.1 Percent Today to Close Comex at $1,320.10
- Another smashing of gold unlikely because it would unleash demand, Kaye says
- Gold Price Holding Up Well But Next Catalyst Unclear
- Shocking Gold Bull Ahead
- Shocking Gold Bull Ahead
- Gold Daily and Silver Weekly Charts - Gold Continues Higher
- Gold Daily and Silver Weekly Charts - Gold Continues Higher
- Gold Delivery Strains Reappear & What Might Destroy COMEX
- Trade of the decade
- Gold and Silver Speculation
- Critical Metric Is Now Over 1,000 Times Higher Than Normal!
- Chinese Checkers with Gold Prices
- Gold Traders Resolve Tested
- Crude to the Rescue: How $100 Oil Helps the Market
- All the Gold in China
- THE ROTHSCHILD IMF BANKSTER FIAT DEATH MACHINE - Michael Noonan
- Gold Price Slips from 2-Week High on US Jobs Data, Rising Comex Warehouse Stocks "Suggest China Slowdown"
- Precious Metals Market Report with Franklin Sanders
- Mainstream Gold and Silver Analysis Out of Touch, Out of Context and Off the Mark
- Gold Supply & Demand: Shocking Numbers
- Gold Supply & Demand: Shocking Numbers
- Financial War: Chances & Impact
- Financial War: Chances & Impact
- Interest Rate Hikes on the Horizon? Not Likely
- Puerto Rico's Tax Benefits—More than 'The Better Florida'
| Limits to Employment Participation, and Societal Change Posted: 11 Apr 2014 07:44 AM PDT Raymond Matison writes: Ever since the calamitous financial meltdown in 2008, economists, market analysts, and media pundits persistently have envisioned an economic recovery, with an attendant increase in employment. However, critics maintain that such a recovery has never really occurred – prompting the pundit response that ours is a jobless recovery. Recently, President Obama promoted raising the minimum wage, and increasing payment for overtime work, as a means to help provide a higher wage for workers. This effort is good politics, but is not really a sound bureaucratic practice. The direction and future of unemployment is easy to see, as is the future employment participation rate, and the resulting direction of national income. Globally embedded, strategic economic trends are more powerful than presidential edict and the Federal Reserve Bank, and so economics will trump central planning. This article discusses a possible outcome of these trends. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Prepare For Dollar Collapse With 33% Allocation To Gold - Rickards Posted: 11 Apr 2014 07:15 AM PDT Today's AM fix was USD 1,317.25, EUR 948.62 & GBP 785.71 per ounce. Yesterday's AM fix was USD 1,321.50, EUR 953.19 & GBP 787.73 per ounce.
Spot gold was steady at $1,322.10 an ounce by 1137 GMT, after three straight days of gains. The precious metal is up 1.4% for the week, having hit a high of $1,324.40 on Thursday - its highest since March 24.
These anomalies would appear to more than coincidental. They may be due to traders painting the tape or manipulation through HFT and computer trading. Goldman Sachs have been very vocal in their bearishness on gold at quarter ends. It is worth considering whether there is an attempt to "jaw bone" gold prices lower.
DEFLATION AND THE RISK OF COLLAPSE "The system is now larger than 2008 — make the system bigger and you're going to have a bigger collapse … we are further down the timeline," Rickards warns. "Are you going to believe me or the IMF? I have a little better track record."
"The world wants to deflate but central banks and governments cannot have deflation – it increases the Debt-to-GDP ratio, destroys tax collection, creates bad debts and hurts the banks." "So central banks will do anything to avoid deflation. The way they do this is to print money. But if you print too much money then you'll collapse confidence in the U.S. dollar." "The U.S. dollar is ultimately backed by confidence, as also said by Paul Volcker." "The FED is insolvent on a mark to market basis. I came to this conclusion himself, but insiders have also told me this privately … they won't say it publicly." "Money is a perpetual non-interest-bearing note issued by an insolvent central bank. DEPRESSION Rickards questions the consensus mantra of recovery and asserts that "we are in a depression and we have been in one since 2007." He admits that "if the FED had not done everything they've done, then things would have been much worse than they were in 2010. No question about that — unemployment would have been higher and growth would have been lower. "But we should have been much stronger today. We should be having 7% growth now. We can't have 7% for a long time, but we can for a short time while people come back into the workforce. Instead we're Japan — we've got 1.9% growth as far as the eye can see. DHS Is Preparing For The Next Disaster Which Will Cover Up The Economic Collapse Posted: 11 Apr 2014 07:10 AM PDT | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Secret That Has U.S. & Western Leaders Truly Terrified Posted: 11 Apr 2014 07:00 AM PDT from KingWorldNews:
Kaye: "I think that's the likely outcome, whether it's on purpose or not. I have to assume the end game that's being played out is bigger than the COMEX. In other words what is at stake here, and the agenda itself, has to be viewed as bigger than the COMEX and the COMEX's position in trading and controlling the price of precious metals…. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold Price Marks Crash Anniversary by Rising to April '13 Low as US Tech Slump Spreads Posted: 11 Apr 2014 06:41 AM PDT GOLD PRICES slipped again from near 3-week highs above $1324 per ounce in London trade Friday lunchtime, as world stock markets fell after yesterday's slump in US tech stocks. Dropping $6 per ounce after spiking from $1314 as the US Dollar rose on the currency market, gold prices were heading for their 12th weekly gain in 15 so far in 2014. Twelve months ago tomorrow, the gold began a 15% crash which took it through what analysts called strong support at $1535, bottoming on Monday 15 April at $1322. "The gold price is continuing to find support from the unexpectedly dovish Fed minutes from mid-week," says Germany's Commerzbank, citing earlier Dollar weakness. Sterling and Euro gold prices rose Friday, but held flat from last week's finish vs. the Dollar price's 1.2% gain. "Precious metals prices have proven resilient," says London market-maker Deutsche Bank, again pointing to Dollar weakness and Wednesday's release of US Federal Reserve meeting notes. The Fed "indicated unease with overly hawkish interpretations" of last month's statements on raising rates in 2015, says Deutsche, warning that a Dollar rally is likely this quarter. "Without the dovish [Fed] minutes," says Swiss bullion bank UBS, "we expect that gold would have traded lower. But gold has been wrong-footing many this week." The Chinese Yuan meantime fell to a 1-week low today, while the Shanghai stock market bucked the global trend to end 3.7% higher from last Friday. Tracking US biotech stocks drop, however, "the average fall for Asian internet stocks in the past month has now topped 20%," reports the Financial Times. Despite the falling Yuan, the Shanghai gold price – typically at a premium to world benchmarks – reduced its discount to $2.50 per ounce below London quotes by the close of Chinese trade. The Shanghai Gold Exchange said Friday it will launch "a rudimentary version" of the gold lending contracts used in London, heart of the world's physical gold market. Gold borrowing costs rose again in London again Friday, as lower GOFO rates reduced the incentive offered to would-be borrowers, who must pay storage and lose cash interest for the period of a gold loan. Two-month GOFO today went negative for the first time since late February, meaning that lenders are asking for payment on top of the interest they earn during a gold-cash swap. One-month GOFO has now been negative, albeit at 0.05% annualized at the most, for 38 of 72 gold trading days in London so far in 2014. That suggests what analysts have called some "tightness" in London's wholesale market, contrasted with the plentiful supply in Shanghai suggested by its discount to world prices. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold Price Marks Crash Anniversary by Rising to April '13 Low as US Tech Slump Spreads Posted: 11 Apr 2014 06:41 AM PDT GOLD PRICES slipped again from near 3-week highs above $1324 per ounce in London trade Friday lunchtime, as world stock markets fell after yesterday's slump in US tech stocks. Dropping $6 per ounce after spiking from $1314 as the US Dollar rose on the currency market, gold prices were heading for their 12th weekly gain in 15 so far in 2014. Twelve months ago tomorrow, the gold began a 15% crash which took it through what analysts called strong support at $1535, bottoming on Monday 15 April at $1322. "The gold price is continuing to find support from the unexpectedly dovish Fed minutes from mid-week," says Germany's Commerzbank, citing earlier Dollar weakness. Sterling and Euro gold prices rose Friday, but held flat from last week's finish vs. the Dollar price's 1.2% gain. "Precious metals prices have proven resilient," says London market-maker Deutsche Bank, again pointing to Dollar weakness and Wednesday's release of US Federal Reserve meeting notes. The Fed "indicated unease with overly hawkish interpretations" of last month's statements on raising rates in 2015, says Deutsche, warning that a Dollar rally is likely this quarter. "Without the dovish [Fed] minutes," says Swiss bullion bank UBS, "we expect that gold would have traded lower. But gold has been wrong-footing many this week." The Chinese Yuan meantime fell to a 1-week low today, while the Shanghai stock market bucked the global trend to end 3.7% higher from last Friday. Tracking US biotech stocks drop, however, "the average fall for Asian internet stocks in the past month has now topped 20%," reports the Financial Times. Despite the falling Yuan, the Shanghai gold price – typically at a premium to world benchmarks – reduced its discount to $2.50 per ounce below London quotes by the close of Chinese trade. The Shanghai Gold Exchange said Friday it will launch "a rudimentary version" of the gold lending contracts used in London, heart of the world's physical gold market. Gold borrowing costs rose again in London again Friday, as lower GOFO rates reduced the incentive offered to would-be borrowers, who must pay storage and lose cash interest for the period of a gold loan. Two-month GOFO today went negative for the first time since late February, meaning that lenders are asking for payment on top of the interest they earn during a gold-cash swap. One-month GOFO has now been negative, albeit at 0.05% annualized at the most, for 38 of 72 gold trading days in London so far in 2014. That suggests what analysts have called some "tightness" in London's wholesale market, contrasted with the plentiful supply in Shanghai suggested by its discount to world prices. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 11 Apr 2014 06:20 AM PDT from Ameria Again:
As we have described in past articles, Washington D.C. has been operating organized crime for 152 years. A counterfeiting operation always ends when it is exposed; yet this one was exposed over 20 years ago, and still continues. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 11 Apr 2014 06:00 AM PDT from USA Watchdog: This headline is only half right–"Putin turns up the heat in Ukraine." It should read, Obama and Putin turn up the heat. I think this is the big story, and it is being underreported. It has both financial and real war implications. Let's start with what Russia is doing. It is now going to issue a new bond based in the yuan. Are you getting that? This is yet another move away from using the U.S. dollar to settle international trade. Russia is also hiking the price of natural gas to Ukraine by at least 50% in May. The Russian's are going to want the cash for natural gas up front. Russia is warning of the dire debt crisis in Ukraine and how this could threaten Russian natural gas deliveries to the EU. I said it's game on for financial war, and this is proof. Meanwhile, the U.S. is threatening more sanctions on Russia over the growing Ukraine crisis. On top of that, it is being reported by the AP, NATO's top commander says he could start deploying U.S. troops in Eastern Europe to counter Russian military pressure put on Ukraine. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Truth About the Nevada Rancher’s Standoff Posted: 11 Apr 2014 05:30 AM PDT from Stefan Molyneux: Nevada Rancher Cliven Bundy is locked in a standoff with the federal Bureau of Land Management over illegal cattle grazing, endangered tortoises and property rights. It gets even better… The fight involves a 600,000-acre area under BLM control called Gold Butte, near the Utah border. The is the habitat of the protected desert tortoise, and the land has been off-limits for cattle since 1998. Five years before that, when grazing was legal, Bundy stopped paying federal fees for the right. Bundy stopped paying grazing fees in 1993. He said he didn’t have to because his Mormon ancestors worked the land since the 1880s, giving him rights to the land. “We own this land,” he said, not the feds. He said he is willing to pay grazing fees but only to Clark County, not BLM. Years ago, I used to have 52 neighboring ranchers,” he said. “I’m the last man standing. How come? Because BLM regulated these people off the land and out of business.” Nevada, where various federal agencies manage or control more than 80 percent of the land, is among several Western states where ranchers have challenged federal land ownership. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Koos Jansen: New physical gold exchange in Singapore Posted: 11 Apr 2014 05:26 AM PDT 8:26a ET Friday, April 11, 2014 Dear Friend of GATA and Gold: Gold researcher and GATA consultant Koos Jansen today reports on a new physical gold exchange starting in Singapore: http://www.ingoldwetrust.ch/new-physical-gold-exchange-singapore CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Jim Sinclair to hold gold market seminar in Toronto on April 26 Mining entrepreneur and gold advocate Jim Sinclair's next gold market seminar will be held from 1 to 5 p.m. Saturday, April 26, at the Pearson Hotel & Conference Centre at Toronto's Pearson International Airport, 240 Belfield Road, Toronto. For details on tickets, please visit Sinclair's Internet site, JSMineSet.com, here: http://www.jsmineset.com/2014/04/01/toronto-qa-session-announced/ Join GATA here: Porter Stansberry Natural Resources Conference Committee for Monetary Research and Education http://www.cmre.org/news/spring-meeting-2014/ Canadian Investor Conference 2014 http://cambridgehouse.com/event/25/canadian-investor-conference-2014-inc... * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| HFT in Comex gold is like the old London Gold Pool, Kaye tells KWN Posted: 11 Apr 2014 05:13 AM PDT 8:10a ET Friday, April 11, 2014 Dear Friend of GATA and Gold: Hong Kong fund manager William Kaye tells King World News that high-frequency trading in gold on the New York Commodities Exchange is a variant of the London Gold Pool of the 1960s, another mechanism of gold price suppression. Kaye concurs with your secretary/treasurer that "controlling gold is the primary mechanism of controlling the world." An excerpt from the interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/4/11_Th... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Buy metals at GoldMoney and enjoy international storage GoldMoney was established in 2001 by James and Geoff Turk and is safeguarding more than $1.7 billion in metals and currencies. Buy gold, silver, platinum, and palladium from GoldMoney over the Internet and store them in vaults in Canada, Hong Kong, Singapore, Switzerland, and the United Kingdom, taking advantage of GoldMoney's low storage rates, among the most competitive in the industry. GoldMoney also offers delivery of 100-gram and 1-kilogram gold bars and 1-kilogram silver bars. To learn more, please visit: http://www.goldmoney.com/?gmrefcode=gata Join GATA here: Porter Stansberry Natural Resources Conference Committee for Monetary Research and Education http://www.cmre.org/news/spring-meeting-2014/ Canadian Investor Conference 2014 http://cambridgehouse.com/event/25/canadian-investor-conference-2014-inc... * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Silver mining stock report for 2014 comes with 1-ounce silver round Future Money Trends is offering a special 18-page silver mining stock report about how to profit with the monetary and industrial metal in 2014, and it comes with a free 1-ounce silver round. Proceeds from the report's sales are shared with the Gold Anti-Trust Action Committee to support its efforts to expose manipulation in the monetary metals markets. To learn about this report, please visit: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Prepare For Dollar Collapse With 10% To 33% Allocation To Gold – Rickards Posted: 11 Apr 2014 05:07 AM PDT from Gold Core:
"Are you going to believe me or the IMF? I have a little better track record." "The ultimate thesis is that deflation is the biggest problem in the world." "The world wants to deflate but central banks and governments cannot have deflation – it increases the debt-to-GDP ratio, destroys tax collection, creates bad debts and hurts the banks." | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Alasdair Macleod: Gold and bail-ins Posted: 11 Apr 2014 05:05 AM PDT 8a ET Friday, April 11, 2014 Dear Friend of GATA and Gold: Even allocated gold probably isn't safe in an insolvent bank being restructured under government supervision, GoldMoney research director Alasdair Macleod writes today, especially since Western central banks may no longer have the gold they long have used to rescue bullion banks in trouble. Macleod's commentary is headlined "Gold and Bail-Ins" and it's posted at GoldMoney's Internet site here: http://www.goldmoney.com/research/analysis/gold-and-bail-ins?gmrefcode=g... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Safe and Private Allocated Bullion Storage In Singapore Given the increasing risks in financial markets, it is more important than ever to own physical bullion coins and bars and to store them in the safest vaults in the world in the safest jurisdictions in the world. Gold advocates Jim Sinclair and Marc Faber have recommended Singapore. Now, with GoldCore, you can own coins and bars in fully insured, segregated, and allocated accounts in Singapore with the ability to take delivery. Learn more by downloading GoldCore's Essential Guide To Storing Gold In Singapore: http://info.goldcore.com/essential-guide-to-storing-gold-in-singapore And for more information call Daniel or Sharon at +44 203 0869200 in the United Kingdom or at +1-302-635-1160 in the United States. Or email them at info@goldcore.com. Join GATA here: Porter Stansberry Natural Resources Conference Committee for Monetary Research and Education http://www.cmre.org/news/spring-meeting-2014/ Canadian Investor Conference 2014 http://cambridgehouse.com/event/25/canadian-investor-conference-2014-inc... * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Buy precious metals free of value-added tax throughout Europe Europe Silver Bullion is a fast-growing dealer sourcing its products from renowned mints, refiners, and distributors. Because of a legal loophole that will close soon, you can acquire the world's most popular bullion coins free of value-added tax throughout the European Union. You can collect your order in person at our headquarters in Tallinn, Estonia, or have it delivered in any of the 28 EU countries. Europe Silver Bullion is owned and operated by North American and European experts in selling, storing, and transporting precious metals. We have an extensive product inventory of silver, gold, platinum, and palladium, and our network spans the world. Visit us at www.europesilverbullion.com. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Large Decline Of Shanghai & Comex Silver Stocks Posted: 11 Apr 2014 05:00 AM PDT from SRS Rocco:
In the chart below, we can see that total silver inventories at the Comex grew from 160 million ounces in September of 2013, to 183.3 million ounces on March 11th. This was a 23 million oz build in seven months. In just one month after the Comex inventories peaked (March 11th), 6.1 million oz of silver were withdrawn. This is the largest one month decline in over a year. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| China Gold Imports Through Hong Kong Posted: 11 Apr 2014 12:28 AM PDT Le Cafe Américain | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. Gold Gone & What 52 Years In This Business Taught Me Posted: 10 Apr 2014 09:01 PM PDT  Today a legendary value investor spoke with King World News about what he has learned over 52 years in this business, and the tragedy of the massive gold hoard leaving the United States. Below is what the legendary investor, Jean-Marie Eveillard, who oversees more than $65 billion, had to say in this fascinating interview.This posting includes an audio/video/photo media file: Download Now | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Truth About the Nevada Rancher's Standoff Posted: 10 Apr 2014 06:54 PM PDT Nevada Rancher Cliven Bundy is locked in a standoff with the federal Bureau of Land Management over illegal cattle grazing, endangered tortoises and property rights. It gets even better...The fight involves a 600,000-acre area under BLM control called Gold Butte, near the Utah border. The is 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! ]]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Chris Martenson and Alasdair Macleod discuss China's corner on gold Posted: 10 Apr 2014 06:50 PM PDT 9:50p Thursday, April 10, 2014 Dear Friend of GATA and Gold: Market analyst Chris Martenson and GoldMoney's Alasdair Macleod discuss China's increasing control of the gold market, anti-gold propaganda in the Western financial news media, the likelihood that Western governments will comandeer the gold of private investors, and other provocative topics in an interview posted this week in audio and text versions at Martenson's Internet site, Peak Prosperity, here: http://www.peakprosperity.com/insider/85192/chinas-demand-gold-has-trapp... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Safe and Private Allocated Bullion Storage In Singapore Given the increasing risks in financial markets, it is more important than ever to own physical bullion coins and bars and to store them in the safest vaults in the world in the safest jurisdictions in the world. Gold advocates Jim Sinclair and Marc Faber have recommended Singapore. Now, with GoldCore, you can own coins and bars in fully insured, segregated, and allocated accounts in Singapore with the ability to take delivery. Learn more by downloading GoldCore's Essential Guide To Storing Gold In Singapore: http://info.goldcore.com/essential-guide-to-storing-gold-in-singapore And for more information call Daniel or Sharon at +44 203 0869200 in the United Kingdom or at +1-302-635-1160 in the United States. Or email them at info@goldcore.com. Join GATA here: Porter Stansberry Natural Resources Conference Committee for Monetary Research and Education http://www.cmre.org/news/spring-meeting-2014/ Canadian Investor Conference 2014 http://cambridgehouse.com/event/25/canadian-investor-conference-2014-inc... * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Buy precious metals free of value-added tax throughout Europe Europe Silver Bullion is a fast-growing dealer sourcing its products from renowned mints, refiners, and distributors. Because of a legal loophole that will close soon, you can acquire the world's most popular bullion coins free of value-added tax throughout the European Union. You can collect your order in person at our headquarters in Tallinn, Estonia, or have it delivered in any of the 28 EU countries. Europe Silver Bullion is owned and operated by North American and European experts in selling, storing, and transporting precious metals. We have an extensive product inventory of silver, gold, platinum, and palladium, and our network spans the world. Visit us at www.europesilverbullion.com. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Shocking Charts Show Silver Set For A Staggering $70 Surge Posted: 10 Apr 2014 06:24 PM PDT Today KWN is putting out a special piece which has some absolutely outstanding silver charts that were sent to us by David P. out of Europe. These are charts that the big bullion banks follow closely in the gold and silver markets, as well as big money and savvy professionals. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pat Heller: U.S. has rigged precious metals markets for 80 years Posted: 10 Apr 2014 06:19 PM PDT 9:20p ET Thursday, April 10, 2014 Dear Friend of GATA and Gold: Writing for Coin Week, Patrick Heller of Liberty Coin Service in Lansing, Michigan, provides a brief history of the U.S. government's mechanisms of surreptitious market intervention and headlines his commentary, "The U.S. Government Has Rigged Precious Metals Markets For 80 Years": http://www.coinweek.com/bullion-report/rigged-precious-metals-markets/ CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Silver mining stock report for 2014 comes with 1-ounce silver round Future Money Trends is offering a special 18-page silver mining stock report about how to profit with the monetary and industrial metal in 2014, and it comes with a free 1-ounce silver round. Proceeds from the report's sales are shared with the Gold Anti-Trust Action Committee to support its efforts to expose manipulation in the monetary metals markets. To learn about this report, please visit: Join GATA here: Porter Stansberry Natural Resources Conference Committee for Monetary Research and Education http://www.cmre.org/news/spring-meeting-2014/ Canadian Investor Conference 2014 http://cambridgehouse.com/event/25/canadian-investor-conference-2014-inc... * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Buy metals at GoldMoney and enjoy international storage GoldMoney was established in 2001 by James and Geoff Turk and is safeguarding more than $1.7 billion in metals and currencies. Buy gold, silver, platinum, and palladium from GoldMoney over the Internet and store them in vaults in Canada, Hong Kong, Singapore, Switzerland, and the United Kingdom, taking advantage of GoldMoney's low storage rates, among the most competitive in the industry. GoldMoney also offers delivery of 100-gram and 1-kilogram gold bars and 1-kilogram silver bars. To learn more, please visit: http://www.goldmoney.com/?gmrefcode=gata | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Gold Price Gained $14.6 or 1.1 Percent Today to Close Comex at $1,320.10 Posted: 10 Apr 2014 03:24 PM PDT
The GOLD PRICE gained $14.6 or 1.1% today to close Comex at $1,320.10. Silver jumped 1.6% or 32.3 cents to 2007.8 cents. Ratio dropped to 65.749 The GOLD PRICE is behaving as it should, climbing today through the next resistance level, about $1,318. The SILVER PRICE, frankly, stank. It rose to 2040c (above the magic 2015c) and poked its head through the downtrend line, then fell back to close below the 20 DMA (2015c). What giveth? MACD just shouted "BUY!" for both today. Proving once again there the world holds even BIGGER fools than a nacheral born durned fool from Tennessee, the Greek government's bond auction today raised about $4 billion, $500 more than the original target, and bids for $23.6 billion were received. I reckon they sold it at the 5.3% they wanted to pay, but didn't see that reported. Buying these bonds nearly equals, but is not nearly as good as, loaning a clubhouse full of drunks money to buy cases of whiskey. Blood flowed on Wall Street today, spurting in bright red arterial bursts. Russell 2000 plunged 2.78%, Nasdaq tumbled 3.1%, Nasdaq-100 sank 3.13%, Dow dropped 1.62% and S&P500 lost 2.1%. Dow closed at 16,170.22, 266.96 points lighter than yesterday and turning decisively down. Not up, down. S&P500 lost 39.1, a massive 2.1%. This is moving past puking in the wastebasket and on to contemplating diving out a window. Dow closed a gnat's whisker above the 50 DMA (16,168.79) and not far from the long term uptrend line it threw over in November. S&P500 closed below its 50 DMA (1,843.34). This could easily reach 1,800. Dow measured in precious metals today resumed its downward plunge. Closing at 12.25 oz (G$253.23 gold dollars), the Dow in Gold capsized beneath its 20 and 50 DMAs (12.43 and 12.32 oz), locking in its downtrend. Ending at 804.85 oz (S$1,040.21 silver dollars), the Dow in Silver tripped its 20 DMA (811.21 oz). Both have signaled SELL in their MACDs. The US dollar index has gushed over the cliff with a five (5) day cascade. Closed today down another 0.14% to 79.47. A close below 79 sends it much lower. Dollar's weakness most likely comes from the market's apprehension interest rates will stay low. Euro has shot back nearly to its last peak ($1.3958), and today closed up another 0.25% at $1.3888. Shows you don't have to be healthy at all to be rented if you're the only horse in the livery stable able to stand. Yen continues to gain, up another 0.45% today to 98.52 c/Y100, but needs to gain a tadge more to break out upside Aurum et argentum 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 $14.6 or 1.1 Percent Today to Close Comex at $1,320.10 Posted: 10 Apr 2014 03:24 PM PDT
The GOLD PRICE gained $14.6 or 1.1% today to close Comex at $1,320.10. Silver jumped 1.6% or 32.3 cents to 2007.8 cents. Ratio dropped to 65.749 The GOLD PRICE is behaving as it should, climbing today through the next resistance level, about $1,318. The SILVER PRICE, frankly, stank. It rose to 2040c (above the magic 2015c) and poked its head through the downtrend line, then fell back to close below the 20 DMA (2015c). What giveth? MACD just shouted "BUY!" for both today. Proving once again there the world holds even BIGGER fools than a nacheral born durned fool from Tennessee, the Greek government's bond auction today raised about $4 billion, $500 more than the original target, and bids for $23.6 billion were received. I reckon they sold it at the 5.3% they wanted to pay, but didn't see that reported. Buying these bonds nearly equals, but is not nearly as good as, loaning a clubhouse full of drunks money to buy cases of whiskey. Blood flowed on Wall Street today, spurting in bright red arterial bursts. Russell 2000 plunged 2.78%, Nasdaq tumbled 3.1%, Nasdaq-100 sank 3.13%, Dow dropped 1.62% and S&P500 lost 2.1%. Dow closed at 16,170.22, 266.96 points lighter than yesterday and turning decisively down. Not up, down. S&P500 lost 39.1, a massive 2.1%. This is moving past puking in the wastebasket and on to contemplating diving out a window. Dow closed a gnat's whisker above the 50 DMA (16,168.79) and not far from the long term uptrend line it threw over in November. S&P500 closed below its 50 DMA (1,843.34). This could easily reach 1,800. Dow measured in precious metals today resumed its downward plunge. Closing at 12.25 oz (G$253.23 gold dollars), the Dow in Gold capsized beneath its 20 and 50 DMAs (12.43 and 12.32 oz), locking in its downtrend. Ending at 804.85 oz (S$1,040.21 silver dollars), the Dow in Silver tripped its 20 DMA (811.21 oz). Both have signaled SELL in their MACDs. The US dollar index has gushed over the cliff with a five (5) day cascade. Closed today down another 0.14% to 79.47. A close below 79 sends it much lower. Dollar's weakness most likely comes from the market's apprehension interest rates will stay low. Euro has shot back nearly to its last peak ($1.3958), and today closed up another 0.25% at $1.3888. Shows you don't have to be healthy at all to be rented if you're the only horse in the livery stable able to stand. Yen continues to gain, up another 0.45% today to 98.52 c/Y100, but needs to gain a tadge more to break out upside Aurum et argentum 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. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Another smashing of gold unlikely because it would unleash demand, Kaye says Posted: 10 Apr 2014 02:43 PM PDT 5:42p ET Thursday, April 10, 2014 Dear Friend of GATA and Gold: Hong Kong-based fund manager William Kaye today tells King World News that more smashing of the gold price seems unlikely because it would unleash unquenchable demand for real metal that isn't available: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/4/10_Go... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Jim Sinclair to hold gold market seminar in Toronto on April 26 Mining entrepreneur and gold advocate Jim Sinclair's next gold market seminar will be held from 1 to 5 p.m. Saturday, April 26, at the Pearson Hotel & Conference Centre at Toronto's Pearson International Airport, 240 Belfield Road, Toronto. For details on tickets, please visit Sinclair's Internet site, JSMineSet.com, here: http://www.jsmineset.com/2014/04/01/toronto-qa-session-announced/ Join GATA here: Porter Stansberry Natural Resources Conference Committee for Monetary Research and Education http://www.cmre.org/news/spring-meeting-2014/ Canadian Investor Conference 2014 http://cambridgehouse.com/event/25/canadian-investor-conference-2014-inc... * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold Price Holding Up Well But Next Catalyst Unclear Posted: 10 Apr 2014 01:51 PM PDT Gold has shown strength in today’s trading session. Last week, the yellow metal was trading near $1280, a huge support zone and key inflection point which has held very well. Now, it seems that $1300 is holding as well, a sign of strength, at least short term. Dan Norcini discusses the technical picture in more detail. He explains the current state of the gold price based on the charts and his expectations going forward. Yesterday’s FOMC minutes continue to put pressure on the US Dollar, but even more importantly, acted to depress US interest rates. That is the key driver for gold in my view at this time. Gold seems to struggle when interest rates here in the US rise as investors see little threat of inflation and seek out assets that will throw off some sort of yield rather than the yellow metal which only provides gains if it continues to rise in price. In a benign inflation environment, many do not believe gold will continue to rise. From a chart perspective, gold continues to remain within the broad trading range outlined for some time now. It will need a catalyst of some sort to kick it higher or send it lower. What that might be remains unclear to me. The chart shows that gold has run into some selling near the resistance level noted near the $1320 region. Above that, resistance is layered in approximately $20 increments, first near $1340 and then again near $1360. Downside support comes in near and just above $1300 followed by our old friend near $1280.
On the ADX, which indicates a trendless market, the bulls have regained the short term advantage. Stochastics are rising as price moves up in the range showing the near term friendly picture. How this market handles this $1320 level today and tomorrow, will be a key as to how to approach it. The trading range is pretty broad (up near $1400 on the top and $1280 on the bottom). I cannot see what would cause this market to break out of its current range at this time. The Dollar would either have to drop off sharply breaking down below 79 on the USDX or interest rates would have to plummet sharply here in the US, along with perhaps a larger selloff in the broader equity markets to take it up out of the top end of the range. On the downside, we would need to see a sharp rally higher in the US Dollar and a surge in interest rates above the 3% level in the Ten Year to take it down below $1280 in my view. Take a look at Eurogold. Notice how it too is essentially rangebound. The ADX reveals the lack of a clearly defined trend. The top of the range is up near the 1000 euro region; the bottom down near 880 – 860. If gold could clear the 1000 euro level, we might finally have something to write about. If the ECB were to actually proceed with their chatter about their own version of QE and forcing banks to pay interest on reserves held there at the ECB, then we might finally see the Euro weaken sharply enough to send gold higher and through that 1000 level.
Apparently Europe is having the same problems over there as we are over here – a lack of inflation and in their case, an excessively strong currency, which no one over there wants. The gold mining shares are providing little if any support to gold judging from their mediocre performance today. One gets the impression that they do not know whether to follow the broader market lower or the metal higher. Either way, it is not exactly a ringing endorsement of further strong gains in the actual metal. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 10 Apr 2014 01:22 PM PDT That's what this "big picture" gold bull says... JAY TAYLOR began publishing North American Gold Mining Stocks in 1981, and launched his current weekly, J.Taylor's Gold, Energy & Tech Stocks, in 1997. Also now hosting a radio program, "Turning Hard Times into Good Times", Jay Taylor understands why investors in gold and gold equities are consumed with caution after 2013. But as he explains in this interview with The Gold Report, Jay Taylor still believes in the big picture – the big, bull-market picture which yet leaves junior gold mining stocks with cash and good projects trading at tiny fractions of their worth right now... The Gold Report: Janet Yellen's about-face on quantitative easing makes two panicked pullbacks so far by the Federal Reserve from the end of QE. Is it fair to say we now have QE forever? Jay Taylor: I don't know about forever because nothing lasts forever. Your premise is largely correct, however, because the discontinuation of quantitative easing would be so painful it's a pretty good assumption that it will continue for a long time to come. It will probably end only when the system breaks down, which is inevitable because it is becoming increasingly insolvent. TGR: We've been hearing for three years about the end of QE and the zero interest-rate policy. It has been argued that this is unlikely for several reasons. QE is the only thing responsible for whatever recovery we've had since 2008, and if ZIRP ended, the US government couldn't pay the interest on its debt, and trillions of Dollars in derivatives would go south. Jay Taylor: That's exactly right. Not to mention that the private sector too is dependent on the narcotic of easy money. As I say, QE and ZIRP won't end until the system breaks down and forces the creation of a different monetary regime. What we call "the economy" is really more of a casino. The money that is created isn't getting into the real economy. The Wall Street guys with the PhDs in mathematics have built pick-pocketing machines that misallocate capital into their wallets, into endlessly bigger government and further military action on the part of the United States. It's going to end very badly. All we can do is try to prepare as best we can to protect ourselves and our families. TGR: How does the system break down? Jay Taylor: We saw the first hint of that with the Lehman Brothers bankruptcy in 2008. Generally, the banking system goes first. They can pretend that they've fixed it, but I see that Citicorp just failed its stress test. After the banking system fails, the commercial system fails because you can't stock the shelves in stores. Then you can't pay the fire and police departments. Then you have chaos. TGR: You've agreed with Jim Rickards that attempts by the US to "get tough" with Russia will fail. Can you explain why? Jay Taylor: Russia has its own interests to protect, but so does Europe. I'm not so sure that the Europeans will necessarily side with the United States. There could be a real crack in the NATO alliance. The Germans need natural gas, and the Russians have it. I see that the French helping Russia increase its gas and oil production through fracking. Many German companies are very much involved in Russia, as well. TGR: You've talked about the petroDollar being replaced by "petrogold". Jay Taylor: An enormous amount of gold is flowing into China. And China has established a second gold exchange that will allow non-Chinese to buy and sell it. Not paper gold, which is fantasy gold, but real, physical gold. The gold price is being manipulated by the futures markets, by the very people we were just talking about, the bankers, the bullion guys, the people that really can't afford to lose the Dollar confidence game. The Chinese want no part of this. They have enough Dollars and don't want more. Moreover, they don't want to finance America's military-industrial offensive, which is paid for by Dollar manipulation. TGR: How would petrogold work in practice? Jay Taylor: Russia would provide China with much of its energy needs and would be paid in renminbi. The Russians would then take their renminbi to the Chinese exchange and get gold for it, if they so desire. I think the infrastructure is being set up, both with petroleum exchanges and gold exchanges, in Russia and China and other countries in Asia. We would have a much more balanced world right now if Nixon hadn't taken us off the gold standard. That allowed the elite and the military-industrial complex to pull the whole of the world into the American orbit and saddle them with American debt and American power. Now there's blowback against American power, the currency wars and the US Dollar as reserve currency. Russia and China and other countries are saying, "enough already." TGR: Gold and gold equities had an excellent winter, but spring has not at all been kind to them. Why? Jay Taylor: I think what we've seen recently is just part of the natural ebb and flow. This is probably the last good buying opportunity for many junior mining stocks. I am more excited now than I have been at any time since 1981 when I first started writing my newsletter. I think we're going to see a bull market that's going to shock even the most ardent gold investment bugs. TGR: Final thoughts? Jay Taylor: Investors are still shell-shocked. And the mainstream is convinced that gold isn't going anywhere because they've been sold on the idea that the PhD standard is much better than the gold standard. And if you believe that, why would you buy gold stocks? I'd say that 99% of American investors aren't in the least bit interested. Canadians are a little different because mining is a big Canadian industry. But I think we're on the verge of a secular bull market for the ages, something greater than I've seen in my lifetime. TGR: Jay, thank you for your time and your insights. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 10 Apr 2014 01:22 PM PDT That's what this "big picture" gold bull says... JAY TAYLOR began publishing North American Gold Mining Stocks in 1981, and launched his current weekly, J.Taylor's Gold, Energy & Tech Stocks, in 1997. Also now hosting a radio program, "Turning Hard Times into Good Times", Jay Taylor understands why investors in gold and gold equities are consumed with caution after 2013. But as he explains in this interview with The Gold Report, Jay Taylor still believes in the big picture – the big, bull-market picture which yet leaves junior gold mining stocks with cash and good projects trading at tiny fractions of their worth right now... The Gold Report: Janet Yellen's about-face on quantitative easing makes two panicked pullbacks so far by the Federal Reserve from the end of QE. Is it fair to say we now have QE forever? Jay Taylor: I don't know about forever because nothing lasts forever. Your premise is largely correct, however, because the discontinuation of quantitative easing would be so painful it's a pretty good assumption that it will continue for a long time to come. It will probably end only when the system breaks down, which is inevitable because it is becoming increasingly insolvent. TGR: We've been hearing for three years about the end of QE and the zero interest-rate policy. It has been argued that this is unlikely for several reasons. QE is the only thing responsible for whatever recovery we've had since 2008, and if ZIRP ended, the US government couldn't pay the interest on its debt, and trillions of Dollars in derivatives would go south. Jay Taylor: That's exactly right. Not to mention that the private sector too is dependent on the narcotic of easy money. As I say, QE and ZIRP won't end until the system breaks down and forces the creation of a different monetary regime. What we call "the economy" is really more of a casino. The money that is created isn't getting into the real economy. The Wall Street guys with the PhDs in mathematics have built pick-pocketing machines that misallocate capital into their wallets, into endlessly bigger government and further military action on the part of the United States. It's going to end very badly. All we can do is try to prepare as best we can to protect ourselves and our families. TGR: How does the system break down? Jay Taylor: We saw the first hint of that with the Lehman Brothers bankruptcy in 2008. Generally, the banking system goes first. They can pretend that they've fixed it, but I see that Citicorp just failed its stress test. After the banking system fails, the commercial system fails because you can't stock the shelves in stores. Then you can't pay the fire and police departments. Then you have chaos. TGR: You've agreed with Jim Rickards that attempts by the US to "get tough" with Russia will fail. Can you explain why? Jay Taylor: Russia has its own interests to protect, but so does Europe. I'm not so sure that the Europeans will necessarily side with the United States. There could be a real crack in the NATO alliance. The Germans need natural gas, and the Russians have it. I see that the French helping Russia increase its gas and oil production through fracking. Many German companies are very much involved in Russia, as well. TGR: You've talked about the petroDollar being replaced by "petrogold". Jay Taylor: An enormous amount of gold is flowing into China. And China has established a second gold exchange that will allow non-Chinese to buy and sell it. Not paper gold, which is fantasy gold, but real, physical gold. The gold price is being manipulated by the futures markets, by the very people we were just talking about, the bankers, the bullion guys, the people that really can't afford to lose the Dollar confidence game. The Chinese want no part of this. They have enough Dollars and don't want more. Moreover, they don't want to finance America's military-industrial offensive, which is paid for by Dollar manipulation. TGR: How would petrogold work in practice? Jay Taylor: Russia would provide China with much of its energy needs and would be paid in renminbi. The Russians would then take their renminbi to the Chinese exchange and get gold for it, if they so desire. I think the infrastructure is being set up, both with petroleum exchanges and gold exchanges, in Russia and China and other countries in Asia. We would have a much more balanced world right now if Nixon hadn't taken us off the gold standard. That allowed the elite and the military-industrial complex to pull the whole of the world into the American orbit and saddle them with American debt and American power. Now there's blowback against American power, the currency wars and the US Dollar as reserve currency. Russia and China and other countries are saying, "enough already." TGR: Gold and gold equities had an excellent winter, but spring has not at all been kind to them. Why? Jay Taylor: I think what we've seen recently is just part of the natural ebb and flow. This is probably the last good buying opportunity for many junior mining stocks. I am more excited now than I have been at any time since 1981 when I first started writing my newsletter. I think we're going to see a bull market that's going to shock even the most ardent gold investment bugs. TGR: Final thoughts? Jay Taylor: Investors are still shell-shocked. And the mainstream is convinced that gold isn't going anywhere because they've been sold on the idea that the PhD standard is much better than the gold standard. And if you believe that, why would you buy gold stocks? I'd say that 99% of American investors aren't in the least bit interested. Canadians are a little different because mining is a big Canadian industry. But I think we're on the verge of a secular bull market for the ages, something greater than I've seen in my lifetime. TGR: Jay, thank you for your time and your insights. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold Daily and Silver Weekly Charts - Gold Continues Higher Posted: 10 Apr 2014 01:20 PM PDT | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold Daily and Silver Weekly Charts - Gold Continues Higher Posted: 10 Apr 2014 01:20 PM PDT | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold Delivery Strains Reappear & What Might Destroy COMEX Posted: 10 Apr 2014 10:22 AM PDT  Today an outspoken hedge fund manager out of Hong Kong spoke with King World News about delivery strains in the gold market reappearing and what might destroy the COMEX. William Kaye, who 25 years ago worked for Goldman Sachs in mergers and acquisitions, also discussed the major problems the entities managing the gold market are now facing. Below is what Kaye had to say in this timely interview.This posting includes an audio/video/photo media file: Download Now | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 10 Apr 2014 09:08 AM PDT Trade of the decade
The US in now slowly entering its hyperinflationary phase. Food prices are already up 19% in the first three months of 2014. On an annualised … Read the rest | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 10 Apr 2014 08:41 AM PDT Monetary Metals | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Critical Metric Is Now Over 1,000 Times Higher Than Normal! Posted: 10 Apr 2014 08:34 AM PDT  Today one of the legends in the business writes that an all-important metric is now over 1,000 times higher than normal. 50-year veteran Art Cashin, who is Director of Floor Operations at UBS ($650 billion under management), warned about this development: "the mind boggles -- at least mine does." Cashin also discussed everything from Napoleon to gold, and included a guest commentary covering the dramatic increase in the all-important metric. This posting includes an audio/video/photo media file: Download Now | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Chinese Checkers with Gold Prices Posted: 10 Apr 2014 08:18 AM PDT For decades many of us in the hard money world have speculated that cloak and dagger activity by large financial interests has played a large role in determining performance in the gold market. The focus of this alleged manipulation is believed to be in the London market, and has been widely referred to as "The London Fix." However those who have blown the whistle have been dismissed as alarmists, gold bugs, conspiracy theorists or worse. But recent revelations should bring us closer to the truth. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 10 Apr 2014 08:11 AM PDT Just when you thought it was safe to go back into the market the gold price and junior resource stocks drop and nervous traders declare the sky is falling yet again. I’m not thrilled by the market action of the past two or three weeks but I also don’t think the basic narrative has changed. The gold price has corrected but I don’t think its rolled over unless it gets quite a bit lower. Likewise, the correction in the Venture Index is not large compared to some of its larger brethren and well within the bounds of what one would see as part of a larger bullish advance. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Crude to the Rescue: How $100 Oil Helps the Market Posted: 10 Apr 2014 07:53 AM PDT While fears of a market meltdown ripple across Wall Street, commodities continue to outperform. In the commodities world, most folks are focused on the big weather plays that continue to rip higher. Coffee, corn and orange juice are all working well this year. But what about oil? Crude crossed into triple digits again this week. This morning, a barrel of black gold trades for about $103. And that's good news for the markets… "We can look at crude oil as a market barometer," explains our own Matt Insley. "The point is simple: If people and foreign governments alike can afford $100-plus oil, the global market is not in dire straits. On the other hand, if the crude market starts to fall, it represents a leading indicator that the economy isn't spinning the cash it needs to survive." Here's a look at the 10-year price of West Texas Intermediate (WTI) crude oil:
"As you can see from this long-term chart, prices for crude oil have seen a lot of support since the 2009 market fallout. You can also see that we're smack-dab in the middle of crude's long-term trading channel," Matt explains. "In that sense — and the sense that we're still looking at $103 oil at last check — the global market still has plenty of wind in its sails… "Closer to home, there's even more reason to like an uptrending oil chart. You see, now that the U.S. is producing more crude oil by the day, the country's trade balance is moving in our favor," Matt says. "Along with that, more crude and natural gas production is providing real-world benefits to U.S. manufacturers." While we're keeping an eye out for a market correction, if crude continues to hold $100 and move higher, Matt sees no reason to fear a major market pullback here… Regards, Greg Guenthner P.S. Do you know what the best part about $100 oil is? It’s the fact that the U.S. is producing a massive amount of crude these days. There’s a huge story brewing here. Sign up for the Rude Awakening for FREE today to learn how you can play this powerful trend… | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 10 Apr 2014 07:02 AM PDT This chart depicting the dramatic rise in China gold demand from Sharelynx appears to be making the rounds this morning and it really is stunning. Note that the 2013 demand total of nearly 1,600 tonnes shown below is considerably higher than the World Gold Council figure, but also considerably lower than some of the more [...] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| THE ROTHSCHILD IMF BANKSTER FIAT DEATH MACHINE - Michael Noonan Posted: 10 Apr 2014 06:57 AM PDT A 2014 precious metals discussion with researcher Michael Noonan from Edge Trader Plus. Michael reminds us the Gold and Silver ARE MONEY. He also reminds us that all the gold in Fort Knox is gone, and the elite's don't want to call attention to what's NOT there. The elite - the ROTHSCHILDS and... [[ This is a content summary only. Visit http://www.GoldSilverNewsBlog.com or http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 10 Apr 2014 05:58 AM PDT GOLD PRICE gains of 1.6% for this week so far were trimmed lunchtime Thursday in London, with spot quotes dropping $5 per ounce after better-than-forecast US jobs data. Retreating from $1324, the gold price had also touched 2-week highs for Euro and Sterling investors, after the Bank of England kept UK interest rates unchanged at 0.5% for the 60th month running. Initial claims for US jobless benefits fell last week to 300,000 vs. analyst forecasts of 320,000, the Department of Labor said. US import prices meantime rose faster-than-expected last month, separate data showed, cutting the 1-year drop to minus 0.6%. China's domestic gold price earlier closed at its highest level since March 24 in Yuan terms on the Shanghai Gold Exchange. But in Dollar terms, the gold bullion price in China – now the world's No.1 consumer market – returned Thursday to a discount to the global benchmark of London settlement, trading $3.50 per ounce below spot. Shanghai gold typically trades at a premium to the London price, but has now closed at a discount on all but 3 trading days in the last 7 weeks, by far the longest stretch in at least years. "We should not lose sight of what has been a strong Chinese market so far this year," said London-based consultancy Metals Focus in its latest weekly report Tuesday, "still on course to post its second highest level for gold demand on record." But noting a 2-week rise of 15 tonnes in Comex warehouse stockpiles in the United States, "The US [gold industry] has become increasingly reliant on shipments to China," the report adds, "reflect[ing] field research that suggests flows into the country slowed considerably last month." Comex warehouse gold stockpiles track prices higher and lower in the main, showing a strong correlation of 89% over the last 18 years according to Bullionvault analysis of weekly data. Total Comex warehouse gold stockpiles edged back Wednesday from the largest level since June 2013 at 245 tonnes. "There is certainly no physical tightness in gold," Reuters quotes Bill O'Neill at LOGIC Advisors in New Jersey. "Why would you scramble for any physical gold stocks when the market appears to be going nowhere at this point?" Growing availability of gold in Comex warehouses "represents the end of the drawdown in stocks seen last year," says the newswire, "when gold's record two-day drop in prices unleashed years of pent-up buying by Asian investors who spotted a bargain for coins and small bars." New data released overnight showed China returning to a trade surplus in March, even though total trade fell sharply. Exports fell 6.6% by value as imports fell 11.3%. Bullion held to back shares in the giant SPDR Gold Trust (NYSE:GLD) meantime ended Wednesday unchanged having edged back to 806 tonnes Tuesday, the lowest level in a month. The world's largest exchange-traded trust fund at its peaks in 2011 and 2012, the GLD began 2013 with a near-record 1,350 tonnes, dropping nearly 60% by value as the gold price fell 30%. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Precious Metals Market Report with Franklin Sanders Posted: 10 Apr 2014 05:00 AM PDT | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mainstream Gold and Silver Analysis Out of Touch, Out of Context and Off the Mark Posted: 10 Apr 2014 03:09 AM PDT On average, every quarter we are exposed to yet another price guidance by a mainstream analyst. Such analysts usually reside within a large investment bank. These calls become focal points for a sector and often seem to carry with them some form of self fulfilling prophecy. What makes them qualified? | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold Supply & Demand: Shocking Numbers Posted: 10 Apr 2014 02:56 AM PDT One calculation puts China's 2013 demand nearly equal to global gold-mine output entirely... GOLD DEMAND went up from 3,200 tonnes in 2003 to 4,400 tonnes in 2013, writes Chris Martenson at Peak Prosperity, citing World Gold Council data. That's even with a massive 800 tonnes being disgorged from the GLD tracking fund over 2013 (purple circle, below):  Note the dotted red line in this chart: it shows the current level of mine production. World demand has been higher than mine production for a number of years. Where has the additional supply come from to meet demand? We'll get to that soon, but the quick answer is: it had to come from somewhere, and that place was 'the West.' A really big story in play here is the truly historic and massive flows of gold from the West to the East, with China being the largest driver of those gold flows. Alasdair McLeod of GoldMoney.com has assembled the public figures on China's cumulative gold demand which, notably, do not include whatever the People's Bank of China may have bought. Those are presumably additive to these figures unless we are to believe that the PBoC now purchases its gold over the counter and in full view (which they almost certainly do not). Using publicly available statistics only, it's possible to calculate that in 2013 China alone accounted for more than 2,600 tonnes of demand, or more than 60% of total demand or, as we'll soon see, almost all of the world's total gold mine production: Of course the big risk in all that Chinese demand for gold is that China may stop buying that much gold in the future for a variety of reasons. One could be that the Chinese bubble economy finally bursts and people there no longer feel wealthy and so they stop buying gold. Another could be that the Chinese government reverses course and makes future gold purchases illegal for some reason. Perhaps they are experiencing too much capital flight, or they want to limit imports of what they consider non-essential items. Who knows? I do know that Chinese demand has been simply incredible and, keeping all things equal, I expect that to continue, if not increase. India, long a steady and traditional buyer of gold, saw so much buying activity as a consequence of the lower gold prices that the government had to impose controls on the amount of gold imported into the country, even banning imports for a while:  Another factor driving demand has been the reemergence of central banks as net acquirers of gold. This is actually a pretty big deal. Over the past few decades, central banks have been actively reducing their gold holdings, preferring paper assets over the 'barbarous relic.' Famously, Canada and Switzerland vastly reduced their official gold holdings during this period (to effectively zero in the case of Canada), a decision that many citizens of those countries have openly and actively questioned. The UK-based World Gold Council is the primary firm that aggregates and reports on gold supply-and-demand statistics. Here's their most recent data on official (i.e., central bank) gold holdings:  Note that the 2009 data is lowered by slightly more than 450 tonnes in this chart to remove the one-time announcement by China that it had secretly acquired 454 tonnes over the prior six years, so this data may differ from other representations you might see. I thought it best to remove that blip from the data. Also, the data for 2012 and 2013 must also be lacking official China data because the last time they announced an increase in their official gold holdings was in 2009. In just 2013 alone, the gap between China's apparent and reported gold consumption was over 500 tonnes and the Chinese central bank, for a variety of reasons, is the most likely candidate to have absorbed such a quantity. If true, then China alone increased its official reserves by more than the rest of the world combined in 2013. The World Gold Council puts out what is considered by many to be the definitive source of gold statistics, which are the source data for the above chart. I do not consider the WGC to be definitive since their statistics do not comport well with other well reported data, but let's first take a look at what the WGC had to say about gold demand in 2013:  The big story there, obviously is that investment demand absolutely cratered even as jewelry and coins and bars rose to new heights. And nearly all of that investment drop was driven by flows out of the GLD investment vehicle. That is, gold was chased out of the weak hands of mainly western investors and into the strong hands of Asian buyers who wanted physical bullion and jewelry. This huge drop in total demand, led by plummeting investment demand, fits quite well with the 15% price drop recorded in 2013. So the WGC tells a nice coherent story so far. But the problem with this tidy story is that it simply does not fit with the above data about China's voracious appetite for gold, let along India's steady demand and rising demand in Europe, the Middle East, Turkey, Vietnam or Russia. The summary of the fundamental analysis of gold demand is:
Now about that supply... Not surprisingly, the high prices for gold and silver in 2010 and 2011 stimulated quite a bit of exploration and new mine production. Conversely, the bear market from 2012 to 2014 has done the opposite. However, the odd part of the story for those with a pure economic view is that with more than a decade of steadily rising prices, there has been relatively little incremental new mine production. For those of us with an understanding of depletion it's not surprising at all. In 2011 the analytical firm Standard Chartered calculated a rather subdued 3.6% rate of gold production growth over the next five years based on lowered ore grades and very high cash operating costs:
Since then, the trends for lower ore grade and higher costs have only gotten worse. But the huge drop in the price of gold in 2011 and 2012 was the final nail in the coffin and resulted in the slashing of CAPEX investment by gold mining companies. Of course, none of this is actually surprising to anyone who understands where we are in the depletion cycle, but it's probably quite a shock to many an economist. The quoted report goes on to calculate that existing projects just coming on-line need an average gold price of $1400 to justify the capital costs, while green field, or brand-new, projects require a gold price of $2000 an ounce. This enormous increase in required gold prices to justify the investment is precisely the same dynamic that we are seeing with every other depleting resource: energy costs run smack-dab into declining ore yields to produce an exponential increase in operating costs. And it's not as simple as the fuel that goes into the Caterpillar D-9s; it's the embodied energy in the steel and all the other energy-intensive mining components all along the entire supply chain. Just as is the case with oil shales that always seem to need an oil price $10 higher than the current price to break even, the law of receding horizons (where rising input costs constantly place a resource just out of economic reach) will prevent many an interesting, but dilute, gold ore body from being developed. Given declining net energy, that's that same as "forever" as far as I'm concerned. Just like any resource, before you can produce it you have to find it. Therefore the relationship between gold discoveries and future output is a simple one; the more you have discovered in the past, the more you can expect to produce in the future, all things being equal. This next chart should tell you everything you need to know about where we are in the depletion cycle for gold, as even with the steadily rising prices between 1999 and 2011 (going from $300 and ounce to $1900), gold discoveries plummeted in 1999 and remained on the floor thereafter:  Here we see that the 1990 saw quite a number of large discoveries that are currently in production but which were not matched in later years. Since it takes roughly ten years to bring a mine into full production following discovery, it's fair to say that we are currently enjoying production from the discoveries of the 1990's. Future gold production will largely be shaped by the discoveries made since then. In other words: expect less gold production in the future. Meanwhile, there will be more money, more credit, and more people (especially in the East) competing for that diminished supply of gold going forward. Let's take another angle on gold supply, but which circles back and supports the above chart showing fewer and smaller discoveries in recent years. The United States Geological Survey, or USGS, keeps a mountain of data on literally every important mined substance. I think it's staffed by credible people, doing good work, and I've yet to detect political influence in their reported statistics. At any rate, the latest assessment on gold reveals that their best guess for world supply is that something on the order of 52,000 tonnes of reserves are left. Which means that, at the 2012 mining rate of 2,700 tonnes, there are 19 years of reserves left:  This doesn't mean that in 19 years there will be no more new gold to be had, as reserves are always a function of price; but it gives us a sense of what's out there right now at current prices. As much as I like the folks at the USGS, however, I will point out one glaring discrepancy in their data as a means of exposing why I think these reserves, like those for many other critical things like oil, are probably overstated. And that story begins with South Africa (highlighted in the table above with the blue dotted line.) There you'll note that, at 6,000 tonnes, South Africa has the second largest stated country reserves. However, according to official South African data, they claim to have an astonishing 36,000 tonnes of reserves. Which is right? Neither as it turns out. First, the true story of South African gold production is completely obvious from the production data. It's a story of being well and truly past the peak of production:  And not just a little bit past peak, but 44 years past; down a bit more than 80% from the peak in 1970. The above chart is simply not even slightly in alignment with the claims of the South African government to have 36,000 tonnes of reserves. But pity the poor South African government which knows that gold exports represent fully one third of all their exports. Of course they will want to claim massive reserves that will support many future years of robust exports. Instead, the South African production data can be modeled by the same methods as any other depleting resource and one such analysis has been done and arrived at the conclusion that there are around 2,900 tonnes left to be mined in South Africa.  The analysis is quite sound; and the authors went on to point out that the social, economic, energy, and environmental costs of extracting those last 2,900 tonnes are quite probably higher than the current market value of those same tonnes. If they are extracted, South Africa will be net poorer for those efforts. This is the same losing proposition as if it took more than one barrel of oil to get a barrel of oil out of the ground – the activity is a loss and should not be undertaken. For lots of political and economic reasons, however, gold mining will continue in South Africa. But, realistically, someone in government there should be thinking this through quite carefully. The larger story wrapped into the South African example is this: perhaps there are 19 years of global gold reserves left (at current rates of production), but I doubt it. Instead, the story of future gold production will be one of declining production at ever higher extraction costs – exacerbated by the 80,000,000 new people who swell the planet's population every twelve months, the hundreds of millions of people in the East who enter the ranks of the middle class annually, and trillions of new monetary claims that are forced into the system each year. And this brings me to my final point of this part of the public part of this report. Scarcity. If we cast our minds forward ten years and think about a world with oil costing 2x to maybe 4x more than today, we have to ask ourselves some important questions: How many of our currently-operating gold and silver mines, or the base metal mines from which gold and silver are by-products, will still be in operation then? How many will simply shut down because their energy costs will have exceeded their marginal economic benefits? After just 100 years of modern, machine-powered mining, all of the great ore bodies are gone, most of the good ones are already in operation, and only the poorest ones are left. By the time you are reading stories like this next one from the Wall Street Journal, you should be thinking, Why are we going to all that trouble unless that's the best option left?
The above article is just a different version of the story that led to the Deepwater Horizon incident. Greater risks and engineering challenges are being met by hardworking people going to ever greater lengths to overcome the lack of high quality reserves to go after. By the time efforts this exceptional are being expended to scrape a little deeper, after ever smaller and more dilute deposits, it tells the alert observer everything they need to know about where we are in the depletion cycle, which is, we are closer to the end than the beginning. Perhaps there are a few decades left, but we're not far off from the day where it will take far more energy to get new metals out of the ground compared to scavenging those already above ground in refined form. At that point we won't be getting any more of them out of the ground, and we'll have to figure out how to divvy up the ones we have on the surface. This is such a new concept for humanity – the idea of actual physical limits – that only very few have incorporated this thinking into their actions. Most still trade and invest as is the future will always be larger and more plentiful, but the data no longer supports that view. We are at a point in history where we can easily look forward and make the case for declining per-capita production of numerous important elements just on the basis of constantly falling ore grades. Gold and silver fit into that category rather handily. Depletion of reserves is a very real dynamic. It is not one that future generations will have to worry about; it is one with which people alive today will have to come to terms. The issue of Peak Cheap Oil only exacerbates the reserve depletion dynamic by adding steadily rising energy input costs to mix. Should oil get to the point of actual scarcity, where we have to ration by something other than price, then we must ask where operating marginal mines slot onto the priority list. Not very highly, would be my guess. For all the reasons above, it's only prudent to consider gold an essential element of a sound investment portfolio.
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| Financial War: Chances & Impact Posted: 10 Apr 2014 02:40 AM PDT Russia, the EU and US are facing off over Ukraine. Financial war may follow... As the UKRAINE CRISIS unfolded, threats of financial war came from Russia and to a lesser extent from the EU and the US, writes Julian Phillips at The Goldforecaster. These threats were not carried out beyond a few sanctions targeting key personnel in Russia. They were shrugged off and the crisis appears to have dropped to a series of posturing by both sides. A sigh of relief crossed the developed world and investment life went back to normal. In the past we have had similar events that were defused in a similar way. But history teaches us that that the world can suppurate easily and quickly in tense situation like this. The First World War started because of one shot from a pistol. The Second World War were preceded by trumpeting of 'peace in our time' as mistaken politicians thought they had made peace with Germany. For today's investors, these are signals that should be taken seriously if your portfolio is not to be taken by surprise. After all, when such situations are ignited, events move too fast to prevent an assault on investments. Most of us tend to feel that if we can't actually see the storm clouds and hear the thunder then the storm isn't coming. It's a certain lemming-like quality where if we see the man in front of us moving forward then we do too. In this case an investor shouldn't do this he should take preventative action even when he doesn't see the storm. To start with, we should ask if both sides are capable of carrying out the threats. The overall threat of financial war was accompanied by invidious pressure on global investors to reduce their sizeable holdings in Russia. For more than a decade Russia has sought more trade and investment with and into Russia. Trillions of Dollars have flowed into companies controlled by the state. If these were to exit, the economy would be severely damaged. Over the last four years, western investors have sunk $325 billion into stocks and bonds issued by Russian companies and the country's government, according to the research firm Thomson Reuters. Of that, $235 billion has been directed toward corporate borrowings by the likes of Gazprom and state-owned banks like Sberbank. Demand has been so strong that Pimco, the world's largest bond manager, introduced a socially responsible emerging market bond fund in 2010. According to its prospectus, the fund looks to invest in companies that are reducing governance risks. It also reserves the right to steer clear of the bonds of countries that are listed at the bottom of the World Bank's corruption indicator or are subject to sanctions by the United Nations. Now that Russia looks like one of these, can we expect some heavy handed action to disinvest? As of the end of 2013, Russian corporate and government bonds accounted for 31% of the fund's $292 million in assets, nearly three times the weight in its benchmark, a J.P.Morgan emerging-market bond index. Pimco has declined to comment. Gazprom, the Russian energy giant supplies so much gas to Europe it has to be a possible target of the EU or a weapon in Russia's hands. It has the American mutual fund giants Pimco and BlackRock among its largest investors and creditors. While the last year has seen the fortunes of the company alongside its share price sag, an attempt to sell the entire US share ownership of theirs would hurt the company and the Russian stock exchange, very badly. Will the US & the EU be allowed to strangle inflows of capital or remove it from Russia without resistance? In the event of the start of a financial war, we believe that Russia would not allow that capital to exit and would take measure to insulate themselves against capital flows from the country. This implies that exchange controls would be imposed to encourage inflows and prevent outflows. With China as an alternative investor and on neither sides of the potential conflict, they would likely come in to pick up the pieces cheaply. This is the most potentially visible of the weapons that would be used. The weapons to be used would extend from the financial to the economic. For instance, Russian companies selling to Europe and the US would switch to buyers in China, the largest consumer of nickel. This was the opinion of eight out of 12 nickel producers, traders and analysts in the Asia-Pacific region. Punitive measures would increase global prices at least in the short-term. This is one aspect of the confrontation. A second is the sale of gas by Russia to Europe. Europe is heavily dependent on Russian gas and would be badly hurt in the event of either higher prices or a cutback in supplies. In such a war, the weapons such as these extend across a wide spectrum. For sure the investment climate in both Europe and Russia would deteriorate drastically. The biggest danger would be the attitude in such a confrontation because this justifies punitive actions that hurt the wielder of such weapons as much as it does the victim. What do we mean? In the German finance minister's words, "The objective is to uphold international law. It is of secondary importance whether there is an economic or financial cost." This is a typical posture that precedes war-like situations. Investors, after the event, would see the heightened risk and either withhold funds, or demand significant premiums on good investments. Sovereign risks on the EU and Russia would elevate borrowing costs and slow the flow of funds where they continue to exist. It is likely that additional collateral would be required that is outside the pledges of either side. These would be extreme times and so require commensurately non-national assets like gold to be used. We would see gold/currency swaps routed through the BIS to facilitate the continuation of the monetary system as we know it now. Gold would move to a pivotal position internationally in such an event. Nations would scramble to get it, to be able to get international liquidity. Where would they get it from? The EU agreed on a framework for its first sanctions on Russia since the Cold War. This places the EU in step with the USA. The determination we are seeing from the EU is more than expected and sets the tone for more action and retaliation. The big question is just how far will the two sides go? Certainly the Dollar and the Euro are threatened as are all their 'dependent' currencies'. The damage that Russia could do to Europe is far more direct because they are neighbours. All global financial markets will feel at least a ripple from the Tsunami that will happen, once matters go too far. The least vulnerable and the bloc most likely to gain whatever advantages may come amongst the rubble of the financial system would go to China. Senior Putin adviser Glazyev said last week that if the United States were to impose sanctions on Russia over Ukraine, Moscow might be forced to drop the Dollar as a reserve currency and refuse to pay off loans to US banks. While his remarks were later refuted by Russia, the possibility of such action remains. What harm would such moves do? Glazyev also said that Russia could reduce to zero its economic dependency on the United States if Washington agreed sanctions against Moscow over Ukraine, warning that the American financial system faced a "crash" if this happened. He said that if Washington froze the accounts of Russian businesses and individuals, Moscow will recommend to all holders of US treasuries to sell their US government debt. Do his remarks have credibility? Apparently, Glazyev is often used by the authorities to stake out a hard line stance. He does not make policy but has the ear of Putin and would be aligned with the more hawkish elements in the Russian government and military. He further threatened that Russia could stop using Dollars for international transactions and create its own payment system. Russian firms and banks would also not return loans from American financial institutions. "An attempt to announce sanctions would end in a crash for the financial system of the United States, which would cause the end of the domination of the United States in the global financial system," Glasyev added. His comments were likely sanctioned by the Kremlin and by Putin himself. They would appear to be a warning to the US regarding isolating Russia politically and imposing economic sanctions. So far they have not been carried out. But are your investments vulnerable? In the state the global financial system is in at the moment such threats followed by any sort of action will produce ripple effects that in themselves will produce turbulence and collateral damage in global financial markets that go far beyond the borders of Europe and the US. The hegemony of the Dollar will be threatened if not mortally wounded, for sure. Simply the loss of stability in financial markets will rupture many markets. Russia would turn once again to China after trying to sell the Dollar. Again, such actions would be cutting of its nose to spite its face. But that's what war is. The Dollar is so entrenched as the globe's reserve currency, that even a small action against it would cause disproportionate damage to its exchange rate. A strong seller of the Dollar would hurt it badly. If that seller were known to be a central bank, then the damage would be considerably heavier. The consequences of even starting down this road are so dramatic that we deem the likelihood of a financial war as most unlikely. The Crimea and the Ukraine were part of the USSR. Hence we do not believe that either the US or the EU will stake so much for so little potential gain. The results would be too horrible to contemplate. But having said that, prudent investors, as we warned at the beginning of the article, won't wait for these events to happen. They will not only be protecting themselves from the consequences, they would be positioning themselves to benefit from them. And they would do this now, well ahead of such possibilities, or go the way of lemmings. With gold the clear benefactor in such situations we expect that if markets perceived the bigger danger to be imminent the gold price would surge. That such rhetoric is already taking place between diplomats is a salutary reminder that gold will rise in extreme times like these, and that to buy gold ahead of armed conflict is the wise course. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest Rate Hikes on the Horizon? Not Likely Posted: 10 Apr 2014 12:45 AM PDT Recent weeks were not bad for those gold investors’ hearts filled with golden hopes. The price of gold depends on many factors, but past patterns can give us important hints and suggest which of them are to be carefully studied and properly comprehended. If history were to teach us anything about gold’s past market values it would most primarily be the following: watch out for the feds! Wise observation of government policies is the main driving force for what is happening in the gold market (surely along with supply factors in the longer run). As we discussed a month ago, this is the main reason for the observed correlation between the gold price and the interest rates. Not because interest rates per se are always casually linked to the gold price. But because interest rates are a reflection of current government policies. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Puerto Rico's Tax Benefits—More than 'The Better Florida' Posted: 10 Apr 2014 12:40 AM PDT Puerto Rico promises to now do for Americans what Singapore and Hong Kong have done for bankers and businessmen from London. In this interview with The Gold Report, three experts with in-depth knowledge of the pros and cons of living and investing in Puerto Rico share what it is like on the ground for investors.InternationalMan.com Senior Editor Nick Giambruno and Casey Research Chief Technology Investor and Puerto Rico resident Alex Daley join Sterne Agee's Managing Director of Equity Research Todd Hagerman in clearing up some of the confusion about this "misunderstood" island and why the tax benefits for Americans make it "The Better Florida." |
Eric King: "Bill, you brought up a scenario where the gold market would see the one of the largest short squeezes of any market in history. You also said there would be a force majeure of the COMEX and the entire paper market. Here's my question to you: Because the Western central planners know they need to revalue gold to at least $7,000 in the future, are they are going to break the COMEX at some point on purpose? As you and I both know, this would have the intentional effect of exploding the price of gold higher."
Over a dozen bankers commit suicide…billions of rounds of ammunition are ordered by federal agencies…thousands of armored SWAT vehicles are being delivered to American cities…a U.S. Army manual describes internment camps for American citizens…Germany demands its 374 tons of gold stored in the FED depository (but so far only gets less than 10% of it). What is going on?
DEFLATION AND THE RISK OF COLLAPSE
Something interesting took place at the Comex and Shanghai silver warehouses over the past month. Silver stocks at both these warehouses peaked at about the same time, March 10th. However, for the past month, a substantial amount of silver was removed from both warehouses.
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