Gold World News Flash |
- Why Gold? 85% of Pension Funds Will Go Bust in 30 Years
- Crisis, Gold & An Incredible Opportunity No One Is Looking At
- Gold, Silver And The Mining Sector: Prepare For A Severe Fall
- Bid For Gold In The Long Weekend, Limit Downside In Market
- One Of The Greatest Opportunities In More Than A Decade
- Clif High Wujo, Silver Options, Fall of Anglo-American Empire, Markets Crash 21st & 29th -- 16-Apr-2014
- The Richest Man In Asia Is Selling Everything In China
- The Gold Price Closed Higher at $1,303.10
- The Gold Price Closed Higher at $1,303.10
- Federal Reserve Asks "Where Are The Jobs"
- Crisis, Gold & An Incredible Opportunity No One Is Looking At
- High Frequency Trading: An Aid to Economic Collapse
- How a Central Bank Really Shapes the Economy
- U.S. recruits satellites to compensate for Fed's 'tapering,' Roberts tells KWN
- Gold Daily and Silver Weekly Charts - Hubris Incorporated
- Gold Daily and Silver Weekly Charts - Hubris Incorporated
- Williams - Remarkable Roadmap From $5,000 To $20,000 Gold
- Why The Bankers Destroyed Czarist Russia
- Phantom Gold Inventories: Has The Comex Already Defaulted?
- Gold Prices 2014: Do What Goldman Does, Not What It Says
- Me Again
- Reuters Omits Grey Areas on Gold in China
- Margins, Multiples, and the Iron Law of Valuation
- Gold Futures Halted Again On Latest Furious Slamdown
- Gold Trading Tight Around $1300 After China Extends "Surprising" Stop-Loss Drop, London Borrowing Costs Reach 8-Month High
- Gold Doomed or Resting? Gold vs. Major Currencies; Goldman Sachs and Morgan Stanley Reiterate Sell S
- Silver and Gold Miners Still Disappoint
- Collapse (Full Movie) -- Michael Ruppert
- Salman Partners' Raymond Goldie: Copper Is Pathological and Suffers from SAD, but It Has Value
- Salman Partners' Raymond Goldie: Copper Is Pathological and Suffers from SAD, but It Has Value
- Salman Partners' Raymond Goldie: Copper Is Pathological and Suffers from SAD, but It Has Value
| Why Gold? 85% of Pension Funds Will Go Bust in 30 Years Posted: 17 Apr 2014 01:00 AM PDT Le Cafe Américain | ||||||||||||||||||||
| Crisis, Gold & An Incredible Opportunity No One Is Looking At Posted: 17 Apr 2014 12:30 AM PDT from KingWorldNews:
I would point out that what that means is that a whole class of creditors and debtors in China believes that gold is good security. There are a lot of other assets that they could have used for 'good' security such as U.S. Treasuries. One suspects that China has enough U.S. Treasuries already and that an alternate asset class is what is required to effect the financial transaction. | ||||||||||||||||||||
| Gold, Silver And The Mining Sector: Prepare For A Severe Fall Posted: 16 Apr 2014 11:10 PM PDT This is a distressing time for gold and silver bulls like me who are constantly on the lookout for a turnaround in the precious metals sector. I'm confident that it will come but not just yet, as a final capitulation has not taken place. On 18th November we wrote the following: This sector is to some extent in the hands of Janet Yellen and The Federal Reserve. If the economy takes a turn for the worse and she behaves as dovishly as she is portrayed then we could see an increase in QE. However, if the employment figures continue to show slow but steady progress, then there will be no increase in QE and then the outlook for these metals will look less attractive. Should tapering be introduced the US dollar will appreciate and gold, having an inverse relationship with the dollar will suffer. The Fed appear to be satisfied that the economy is making steady, if slow progress and is on the road to recovery, hence the introduction of tapering. This programme of reducing QE possibly to zero looks set to continue and be completed towards the end of this year, barring any sudden reversal in the employment/inflation data for the US. The perma-bulls among us are confident that the lows formed in June 2013 for gold prices represent the bottom for gold and their enthusiasm for higher prices is indeed infectious. However, we view this stance with some trepidation as we are still of the opinion that this gold bull market remains in a bear phase for now. The bears won't always have the upper hand, but until this bear phase exhausts itself completely there is little chance of a sustainable rally in this tiny sector. To maximise our profits we need to time our entry and exit points to the best of our ability. We all know that finding the exact bottom or top of a market is almost impossible to do, but this does not preclude us from trying to get as close as possible to these major directional changes, in this case from the bear phase to the resumption of the bull market. As we write Gold is trading around $120/oz above the June lows, silver is about $1.50/oz above its low point and the mining sector as evidenced by the Gold Bugs Index, the HUI, is sitting about 20 points higher. This is not the picture of a runaway success story, on the contrary it depicts a sector struggling to gain any traction and lacking in conviction. Retail investors and fund managers a-like need to have a clear view of the big picture before committing hard earned cash to any investment opportunity, failure to do so will render success as elusive as the Scarlet Pimpernel. Gold and Silver The sparkling days when gold hit $1900/oz are now a distant memory as gold has fallen back, rallied and fallen back again. A number of head fakes and false dawns have placed gold prices in the precarious position of approaching the summer doldrums in a state of weakness. Gold is unloved and to some extent forgotten as its current bear phase has dominated for close on 3 years now, driving the weaker hands out of the market and putting a dent in the portfolios of those brave enough to stick it out. Silver prices have enjoyed a brief flirtation with the $22.00/oz level but failed to hold onto those gains. It is now trading at $19.58/oz which puts it back to where it was in December 2013, in a sideways trading channel. The HUI The performance of the precious metals mining sector is predicated on the performance of the underlying asset, along with the ability to produce the metal at a price lower than the selling price. Mining costs have accelerated over recent years with some costs now standing at $1200/oz, which has to be achieved before we can talk about profits. However, when these costs have been covered every dollar earned above these levels goes straight to the bottom line. This then becomes an exciting time to be invested in the mining sector as stocks can rise, in percentage terms, 2 and 3 times more than the metal itself. Taking a quick look at a chart of the HUI we can see just what a difficult time the miners are experiencing. A re-test of the June lows looks to be on the cards and should that support level fail to hold then we could see a re-test of the old '150' level which was formed in 2008.
A certain amount of euphoria was generated in the first quarter of 2014 when the miners came out all guns blazing. This rally was short lived and as of today the overall gain for this year is about 10%. When we take into consideration that these stocks had their values halved in 2013, then we can see that this move upwards is hardly a cause for celebration. Conclusion Among the many factors that we can point to as being influential for precious metals the following are just a few;
As logical and sensible as these arguments are the fact remains that gold and silver are not heading to the moon just yet. There could be one or a combination of reasons for this lack of progress, but the two that get our attention are the lack of a final capitulation in gold and silver prices and the reduction of QE via the Fed's tapering programme. Gold's progress was characterized by a sudden steepening of the curve leading to a final blow off when the price had gotten ahead of itself. We now need to see a similar occurrence take place during a sell off. However, this sell off, as torrid as it has been lacks that final spike down which occurs when even the most ardent bulls have had a guts full and finally throw the towel in. Gold and silver's inability to sustain a decent rally suggests that it could re-visit and test its old June lows. Should this support fail to hold we could then experience a rather disorderly sell off taking gold back to the $1000/oz level. The 'sell in May and go away' strategy may be adopted in the coming weeks which may add additional selling pressure to the mining stocks. Also take note of the Federal Reserve Meeting planned for April 29/30th for any changes to monetary policy regarding tapering/QE/Rate changes, etc. Finally we need to see more in the way of all around strength in this sector before we can implement an aggressive acquisitions strategy, and so we have the lion’s share of our portfolio in cash. Got a comment, fire it in, the more opinions that we have, the more we share, the more enlightened we become and hopefully our 'well informed' trades will generate some decent profits. From the small team here we wish you and yours a very Happy Easter.
Bob Kirtley | bob@gold-prices.biz | www.gold-prices.biz | ||||||||||||||||||||
| Bid For Gold In The Long Weekend, Limit Downside In Market Posted: 16 Apr 2014 10:00 PM PDT from KitcoNews: | ||||||||||||||||||||
| One Of The Greatest Opportunities In More Than A Decade Posted: 16 Apr 2014 09:01 PM PDT  Today KWN is putting out a special piece which has some absolutely outstanding 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. David lays out the roadmap for one of the greatest opportunities in more than a decade for investors in the gold and silver space.This posting includes an audio/video/photo media file: Download Now | ||||||||||||||||||||
| Posted: 16 Apr 2014 07:11 PM PDT 16-Apr-2014 Clif High Wujo, Silver Options, Fall of Anglo-American Empire, Markets Crash 21st & 29th Recording Date (start): 16-Apr-2014, 12:32 PM Pacific Coast of North America TimeRelease Date: 16-Apr-2014Runtime: 00h 33m 45.9s (2025.9s)Topics Discussed:Death of Anglo-American EmpireGold... [[ This is a content summary only. Visit http://www.GoldSilverNewsBlog.com or http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  | ||||||||||||||||||||
| The Richest Man In Asia Is Selling Everything In China Posted: 16 Apr 2014 07:00 PM PDT Submitted by Simon Black of Sovereign Man blog, Here’s a guy you want to bet on– Li Ka-Shing. Li is reportedly the richest person in Asia with a net worth well in excess of $30 billion, much of which he made being a shrewd property investor. Li Ka-Shing was investing in mainland China back in the early 90s, way back before it became the trendy thing to do. Now, Li wants out of China. All of it. Since August of last year, he’s dumped billions of dollars worth of his Chinese holdings. The latest is the $928 million sale of the Pacific Place shopping center in Beijing– this deal was inked just days ago. Once the deal concludes, Li will no longer have any major property investments in mainland China. This isn’t a person who became wealthy by being flippant and scared. So what does he see that nobody else seems to be paying much attention to? Simple. China’s credit crunch. After years of unprecedented monetary expansion that has put the economy in a precarious state, the Chinese government has been desperately trying to reign in credit growth. The shadow banking system alone is now worth 84% of GDP according to an estimate by JP Morgan. The IMF pegs total private credit at 230% of GDP, jumping by 100% in the last few years. Historically, growth rates of these proportions have nearly always been followed by severe financial crises. And Chinese leaders are doing their best to engineer a ‘soft landing’. If they’re successful, the world will only see major drops in global growth, stocks, property, and commodity prices. If they fail, the spillover could become pandemic. This isn’t important just for Asian property tycoons like Li Ka-Shing. Even if you don’t know Guangzhou from Hangzhou from Quanzhou, there are implications for the entire world. Here in Chile is a great example. Chile is among the top copper producers worldwide, China among its top consumers. With a major slowdown in China, however, copper prices have dropped considerably. Consequently, the Chilean economy has slowed. The peso is down nearly 10% against the US dollar in recent months, and the central bank is slashing rates trying to prop up growth. There are similar situations playing out across the globe. Not to mention, China could put the entire global financial system on its back just by dumping a portion of its Treasuries in order to defend the yuan. Now, you’d think that a major credit crunch with far-reaching consequences in the world’s second largest economy, its largest manufacturer, and its largest holder of US dollar reserves, would be constant front-page news. But it’s not. Most traditional investors are unaware that what’s happening in China will likely have far greater implications to their investment portfolios than the policies of Janet Yellen and Barack Obama combined. At least for now. And folks who don’t see this coming and keep buying at the all-time high may see their portfolios turned upside down. Quickly. At the same time, some investors who are conservative and cashed up may realize a real ‘blood in the streets’ moment. Again, using Chile as an example, I’m starting to see over-leveraged property owners coming to the market in droves ready to make a deal. This is great news because my shareholders and I are able to buy far more property with US dollars than we could even just six months ago. I expect this trend to hold given that China is just at the beginning of its process. It’s said that the Chinese word for “crisis” is a combination of “danger” and “opportunity”. This isn’t entirely accurate. ‘Weiji’ can have several meanings, but is probably best translated as ‘dangerous’ and ‘crucial point’. We may certainly be at that crucial point, and now might be a good time to take another look at your finances and consider selling before a major crash. The richest man in Asia certainly thinks so. | ||||||||||||||||||||
| The Gold Price Closed Higher at $1,303.10 Posted: 16 Apr 2014 05:21 PM PDT
Franklin wont be publishing commentary over Easter, he will return Tuesday. Y'all have a blessed Easter celebration! 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 Closed Higher at $1,303.10 Posted: 16 Apr 2014 05:21 PM PDT
Franklin wont be publishing commentary over Easter, he will return Tuesday. Y'all have a blessed Easter celebration! 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. | ||||||||||||||||||||
| Federal Reserve Asks "Where Are The Jobs" Posted: 16 Apr 2014 04:17 PM PDT Five years into the "recovery" and The Atlanta Fed thinks it's time to figure out where jobs come from (spoiler alert: there is no job tree). The Atlanta Fed has investigated trends in a variety of firm types to better understand why labor market progress continued to be slower than hoped for in 2013... the findings - when it comes to job creation, there is no simple solution. But Ben and Janet said?...
Who or What Creates the Jobs? A striking feature of the Great Recession was not so much the rise in the number of firms cutting their payrolls—that always happens in recessions. What was unprecedented was the dramatic collapse in the number of firms that expanded. Early in the recovery, firms continued to have the lowest rate of job creation on record, and fewer new firms were created in 2009 and 2010 than in any other time in the previous 30 years. Although the unemployment rate fell faster than expected in the latter part of 2013—roughly four-and-a-half years into the recovery—hiring rates at firms were still relatively subdued. The Atlanta Fed has investigated trends in a variety of firm types to better understand why labor market progress continued to be slower than hoped for in 2013. Researchers started by looking at small firms, since their economic struggles are often singled out as a major reason why the U.S. jobs engine has faltered. These researchers found that all businesses were hit hard by the recession. They looked at firms across a variety of dimensions—age, size, industry, and location—to determine where the jobs are.
Small firms versus large firms Most businesses are small. Almost 96 percent (or 4.7 million) of firms had payrolls with fewer than 50 people in 2011 (the latest census data available). These firms accounted for 28 percent of all payroll jobs. They also create many new jobs—about 40 percent of new jobs each year, on average. However, the rate of gross job gains fell sharply for small firms during the recession and recovery, in part because fewer new firms were created but also because small firms sharply curtailed hiring as heightened uncertainty and a weak economy made them more hesitant to expand. Large firms are also an important source of new jobs. The largest 1 percent of firms account for about as many new jobs each year as do all the firms with fewer than 50 employees. But large firms have also been creating jobs at an unusually slow pace. New firms versus young firms Start-ups gained a lot of attention in the aftermath of the recession, in part because of the dramatic decline in new business formation. These new firms are also important because they create an outsized share of new jobs. In 2011, 8 percent of firms were new—most of them were very small—and they contributed about 16 percent (or 2.5 million) of new jobs that year. But having a continual flow of new firms each year is important because the jobs that start-ups create can be fleeting. Indeed, more than half of young firms typically fail within their first five years of operation. Gazelles versus gorillas Although many firms fail in their early years, a small fraction of young firms grow very rapidly. These so-called gazelle businesses are also a significant source of job creation. A recent Atlanta Fed study looked at the properties of fast-growing Georgia firms during the 2000s and found that about half of the firms that had a high rate of employment growth were young. However, more jobs were generated by older, generally larger, fast-growing firms, sometimes called gorillas. On a national level, high-growth firms have declined as a share of all firms, from 3 percent in the late 1990s to 1.5 percent in 2011. During the same time, these fast-growing firms added fewer jobs, falling from 45 percent of jobs created at expanding firms to 34 percent. While data on these and other characteristics provide a window into the types of firms that typically create jobs, they also underscore the fact that when it comes to job creation, there is no simple solution. +++++++ One can't help but read this and consider the underlying pressure this implies to maintain the large companies at the expense of the small ones? | ||||||||||||||||||||
| Crisis, Gold & An Incredible Opportunity No One Is Looking At Posted: 16 Apr 2014 03:58 PM PDT  Today one of the wealthiest people in the financial world spoke with King World News about the ongoing crisis, gold, and a an incredible new opportunity that no one is looking at. This is an important interview with Rick Rule, who is business partners with billionaire Eric Sprott, where he discusses exactly what this new opportunity is and how he is going to take advantage of it. Readers will never guess the investment Rule shares with KWN. This posting includes an audio/video/photo media file: Download Now | ||||||||||||||||||||
| High Frequency Trading: An Aid to Economic Collapse Posted: 16 Apr 2014 03:03 PM PDT The list of markets where big players are cheating the rest of us (and each other) keeps growing. First there was the Libor interest rate, then foreign exchange, then gold. And now comes high-frequency trading (HFT), where Wall Street banks use supercomputers to monitor incoming stock market orders, analyze their likely impact on prices, and place orders ahead of those trades to capture a bit of the price impact. In an HFT-dominated market, individual investors get fractionally-less-favorable prices, which they seldom notice, while in the aggregate billions of dollars are siphoned each year from retail investors, pension funds and even some hedge funds to big Wall Street banks. Since this practice adds absolutely nothing to the efficiency of the equity markets, and since "front running" is clearly illegal, HFT is a crime without offsetting social benefits. But Wall Street gets away with it — and will continue to get away with it — because the major banks and exchanges make a lot of money from it and donate sufficiently to both major parties to buy a degree of immunity. Because HFT is the topic of Michael Lewis' best-selling book Flash Boys, and Lewis is showing up on mainstream outlets like CNN and Good Morning America where he explains the con in layman's terms, the powers that be now feel compelled to appear to investigate it. Like the ongoing probes of Libor, foreign exchange and gold, the result will be more show than substance. A few fines will be paid and possibly a few mid-level quants will be sacrificed, while Wall Street's bonus pool stays deep and wide. So HFT's exposure, rather than being that big a deal in and of itself, should be seen as part of a pattern of systematic corruption, yet another brick in the wall that separates the financial/political/con artist class from the vast bulk of people who are being harvested. But the fact that this scandal is being explained on mainstream outlets by a best-selling author means that it is reaching a much broader audience. Lewis isn't preaching to the choir; he's bringing the idea that the financial system is a rigged casino to people who hadn't previously given it much thought. In so doing, he's accelerating the shrinkage of the trust horizon. This last term comes from Nicole Foss at Automatic Earth and refers to the process by which people gradually realize that their country's big systems — the government, banks, national currency, etc. — have been captured/corrupted by people who now run those systems for their rather than the public's benefit. Seeing this, individuals stop trusting those big systems and shift their attention and resources to people and institutions that they can see and judge face-to-face. They start buying local food rather than national brands, home school their kids, stop identifying with the two major political parties, put their money in local rather than money center banks, and buy hard assets like precious metals and farmland rather than financial assets like stocks and bonds. When a critical mass of people start behaving this way the big systems are starved for capital and begin to fail. Banks go bust, governments run out of money, the currency collapses, etc. That day appears to be coming, and HFT may have given the trend a little added momentum. Regards, John Rubino Ed. Note: Agora Financial’s resident value investor, Chris Mayer, recently gave his own assessment of High Frequency Trading while attending the 2014 Value Investing Congress, in Las Vegas — an event where Michael Lewis himself gave a well-received presentation. And in the April 15th issue of The Daily Reckoning, readers were given a unique chance to read Chris’s detailed report before almost anyone else – as well as several chances to discover unprecedented profit opportunities. Don’t wait for any more great opportunities like this to pass you by. Sign up for the FREE Daily Reckoning email edition, right here to learn more. This article was originally featured here at Dollarcollapse.com | ||||||||||||||||||||
| How a Central Bank Really Shapes the Economy Posted: 16 Apr 2014 02:22 PM PDT Among the many evils flowing from the serial bubble machine ensconced in the Eccles Building is the stupendous boom and bust cycles that it unleashes among so-called "risk assets". This is not the free market at work in the slightest. Under a regime of honest interest rates and two-way price discovery (that is, absent the central bank put) there never would have been the legion of dotcom billionaires of the first Greenspan Bubble, nor the multi-billionaires who won the Big Short prize when the Fed's housing bubble collapsed in 2007-2008. And the tens of millions of retail investors who got lured into these get rich manias would not have parted with nearly so much of their accumulated savings, either. When the central banks turn the money markets and the capital markets into carry-trade driven casinos in this manner, the result is inherently a massive, dead-weight loss to economic output and national wealth. That's because capital and other economic resources are drastically misallocated to pointless secondary market speculation and pure economic waste. For example, there are now upwards of a trillion dollars of assets managed by so-called "funds-of-funds". The latter skim off several percentage points of profit on top of the 20% that the underlying hedge funds extract on their winnings in the central bank casino. Yet they provide no free market based economic value added whatsoever — except to deliver to their wealthy clients the equivalent of race track tips regarding which hedge funds are likely to win, place or show during the coming weeks or quarters. Mr. Levin's astonishing win did not result from inventing something unique…like Bill Gate's desktop software. And so, living high on the hog from these unearned rents, the operators and owners of funds-of-funds—pure artifacts of financialization— consume the services of swank resorts, office chefs and chartered Gulf Streams that would not be demanded on the free market. There could never be enough profit in honest two-way markets in "risk assets" to absorb the cantilevered fee layering that exists in the Wall Street casino today. By contrast, in a real free market the principal features of the Fed's serial bubble machine would be precluded in the first place. The gambling windfalls which result from short-run speculation in risk assets funded primarily with ZERO-COGS—cheap, short- term repo and wholesale funding — would not exist because there would be no pegged money markets offering the economic absurdity of free money for seven years running. Likewise, the abject plundering of the slow-footed home-gamers who get lured into these speculative ramps would also not exist because chronic "pump and dump" schemes could not survive in honest two-way markets. Yet absent the inherent checks and balances of the free market these central bank enabled casinos do not simply boom-and-bust randomly—they do so chronically and predictably. With the ever increasing confidence levels developed over the bubble cycles since the early 1990s, an entrenched class of permanent, professional speculators has learned to front-run the maneuvers of our monetary politburo almost perfectly. Accordingly, they do not hesitate to ride the bubble on the way up until they see the lights go off in the Eccles Building, nor plunge back into the post-crash carnage at cents on the dollar when the Fed re-opens the sluice gates, as it did in the winter of 2008-2009. So what has emerged is a permanent moveable feast of speculation where the same so-called "risk assets" are strip-mined over and over as these massive and artificial central bank financial bubbles wax, wane and wax again. Exhibit number one at the moment might be the $119 million annual paycheck that 30-year old Jimmy Levin earned recently trading "structured credit" at Ochs-Ziff Capital Management. During the year in question his winnings apparently exceeded by 25% the combined $94 million that was hauled down by the CEOs of the largest 6 banks in the US—that is to say, the well-coddled crony capitalists who run JPM, BAC, GS, MS, C and WFC. But when you strip away the euphemisms, it becomes clear that young Mr. Levin's astonishing win did not result from inventing something unique, useful and permanent like Bill Gate's desktop software. No, the entire windfall resulted from the utterly transient trading fact of being audacious and lucky enough to be standing around in the vicinity of a Fed enabled "third dip" on toxic sub-prime securities. During 2012 Levin's 14-person team of speculators apparently made a $2.0 billion profit on a short-term bet on about $7.5 billion of busted loans and bonds— mainly the smoking remnants of subprime CDOs and private labor MBS. As head of the trading group, Levin's share was apparently the aforesaid $119 million, and this swell outcome was truly a gigs-to-riches story. It seems that only a few years back Jimmy had excelled at teaching the son of the joint's founder, Daniel Och's, how to water-ski at summer camp. Levin then got himself a "computer science" degree at Harvard, an intern job at stepping-stone firm and eventually a gig at Ochs-Ziff Capital Management— where soon the sub-prime triple-dip presented itself. And then, lickety-split, Levin landed among the top 0.0001% of wealth holders in what is surely no longer Horatio Alger's America. Here's the point. In an honest free market there would not be a Ochs-Ziff Capital Management with $40 billion of casino chips. There would not be tens of billions of busted financial assets laying around the streets of Wall Street for Fed front-runners to scoop up when the timing was propitious. Likewise, in an honest two-way market, no one in their right mind would bet $7.5 billion on financial drek using high leverage and minimal hedges. And no 30-year old would be given leave to close his eyes and bet the ranch, as apparently Levin did, based on merely the "housing recovery" word clouds being emitted by the monetary politburo and its echo-boxes in the financial press. In short, free market capitalism is not about something for nothing. Once upon a time no honest capitalist tycoon would… demand that taxpayers fund his polo ponies… The central bank casino that gave rise to the Levin fortune has also rendered an even more noxious offspring: namely, a culture of entitlement among the casino gamblers that fuels insensible crony capitalist plunder throughout the land. So today comes forward one Vincent Viola, founder of the HFT firm, Virtue Financial, demanding a $100 million ransom from the hapless taxpayers of Florida — a burned-over economic province that might as well be labeled ground zero of the Fed's serial bubble machine. It seems that only a few months ago, Viola purchased the Florida Panthers hockey team for $750 million — notwithstanding the fact that it appears to be losing about $25 million annually. Needless to say, during the 5-years he was building Virtue Financial, Mr. "Viola" — who is blessed with the happenstance of a truly resonant family name – did not have much experience losing money. According to his IPO filings, Virtue Financial was profitable on 1,277 days out of 1,278 days it has operated in its current firm. That's a win rate of 0.9992175. Only in Bubbles Ben's casino! The point is simple. Once upon a time no honest capitalist tycoon would have had the gall to demand that taxpayers fund his polo ponies and players. So add the noxious culture of entitlement and political corruption to the list of ills that our monetary central planners have created. People like Vincent Viola should make true believers in liberty and free enterprise downright ill! The worst thing is that the Vince Viola story is just par for the course. Try this nightmare of plunder that came out of the crony capitalist bailout of GM: the fast money boys reaped billions from the busted securities of a bankrupt auto supplier based on outright blackmail of the White House. From The Great Deformation: The Corruption of Capitalism In America, pp 662-665:
Regards, David Stockman Ed. Note: When you peel back the curtain on the current system of crony capitalism, it becomes abundantly clear what corrupt and insane system it really is. It’s a system that rewards insiders and punishes the vast majority of investors without good political connections. And it doesn’t show any sign of stopping. But there is a way around it. A way for average investors to stay one step ahead of the insiders, and turn the whole damn system on its head. Sign up for the FREE Daily Reckoning email edition, right here, to learn more. For more great essays and insight, please visit David Stockman's Contra Corner. | ||||||||||||||||||||
| U.S. recruits satellites to compensate for Fed's 'tapering,' Roberts tells KWN Posted: 16 Apr 2014 01:40 PM PDT 4:40p ET Wednesday, April 16, 2014 Dear Friend of GATA and Gold: Interviewed by King World News, former Assistant U.S. Treasury Secretary Paul Craig Roberts speculates that the U.S. government has recruited its satellite countries, like Belgium, to compensate for the "tapering" being done with purchases of U.S. Treasuries by the Federal Reserve: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/4/16_Pa... Also at KWN, Singapore-based gold fund manager Grant Williams endorses the work of fund managers and economists Paul Brodsky and Lee Quaintance -- http://www.gata.org/node/11373 -- that argues for an official revaluation of gold to a much higher level: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/4/16_Wi... And financial letter writer Gerald Celente tells KWN that Goldman Sachs is spewing disinformation to keep the Wall Street Ponzi scheme going: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/4/16_Ce... 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... New Orleans Investment Conference https://jeffersoncompanies.com/new-orleans-investment-conference/home * * * 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 Daily and Silver Weekly Charts - Hubris Incorporated Posted: 16 Apr 2014 01:28 PM PDT | ||||||||||||||||||||
| Gold Daily and Silver Weekly Charts - Hubris Incorporated Posted: 16 Apr 2014 01:28 PM PDT | ||||||||||||||||||||
| Williams - Remarkable Roadmap From $5,000 To $20,000 Gold Posted: 16 Apr 2014 12:06 PM PDT  Today one of the most highly respected fund managers in Singapore spoke with King World News about the roadmap to $5,000, $10,000, $15,000, and even $20,000 gold. Grant Williams, who is portfolio manager of the Vulpes Precious Metals Fund, also spoke about exactly what will cause this historic rise in the gold price, as well as what it will mean for the global financial system.This posting includes an audio/video/photo media file: Download Now | ||||||||||||||||||||
| Why The Bankers Destroyed Czarist Russia Posted: 16 Apr 2014 11:15 AM PDT The fall of Csar/ Russia was a symbolic collapse because many other Nations have fallen at the same era and gone to fake orchestrated wars. It was also the fall of Ameica and the rise of Federal Reserve and Wall Street. Still the same group of elite rich who orchestrated the falls trying to repeat... [[ 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! ]]  | ||||||||||||||||||||
| Phantom Gold Inventories: Has The Comex Already Defaulted? Posted: 16 Apr 2014 10:08 AM PDT In the spring of last year, and on the heels of the Cyprus "bail in"; informed investors know there was a global stampede into physical bullion – and out of the banksters' fraudulent paper-called-gold "products". In reporting on those events, regular readers saw the following headline: Paper-Gold Holders Flee To Real Metal The evidence seemed conclusive. The Cyprus Steal triggered the realization among the Smart Money that no paper asset in the Western world was safe, any longer. That realization instigated the stampede out of the banksters' paper-called-gold. Total holdings of the largest of the paper-called-gold fraud funds (the SPDR Gold Trust, or "GLD") ultimately fell by approximately 40%. However, as investors were liquidating 10's of millions of ounces of what the bankers call "gold"; the Comex's gold inventories didn't rise by 10's of millions of ounces. In fact those inventories didn't rise at all – they collapsed. This seemed to indicate that investors were redeeming their GLD paper, and extracting real, physical gold to replace it. Recent evidence, however, suggests an entirely different interpretation of the precisely synchronized collapse in holdings of the banksters' paper-called-gold and "official" Comex inventories. But before readers can grasp the significance of this new information, it's necessary to first visit the silver market – and revisit an old-but-familiar form of inventory fraud which has been covered extensively in previous commentaries. Long-time readers of my commentaries are familiar with the charts below:
What we notice first is the dramatic, and unprecedented collapse of (Western) silver inventories. In a mere 15-year span (1990 – 2005); we see inventories plummet by more than 90%, from approximately 2.2 billion ounces to (roughly) a mere 200,000. | ||||||||||||||||||||
| Gold Prices 2014: Do What Goldman Does, Not What It Says Posted: 16 Apr 2014 10:01 AM PDT David Zeiler writes: Goldman Sachs (NYSE: GS) must really want to buy more gold; this week it repeated yet again its forecast for gold prices in 2014 to drop to $1,050 an ounce. That might sound contradictory at first, but not when it comes to Goldman. Jeffrey Currie, the investment bank's head of commodities research, has repeated his $1,050 target several times since last October, when he declared gold a "slam-dunk sell" along with other precious metals. | ||||||||||||||||||||
| Posted: 16 Apr 2014 09:59 AM PDT The subject of yesterday’s World Gold Council report on gold demand in China and the misleading take on that subject at Reuters was the primary topic of discussion yesterday when I chatted with Cory Fleck and Al Korelin over at the Korelin Economics Report. The World Gold Council report can be found here, the Reuters story [...] This posting includes an audio/video/photo media file: Download Now | ||||||||||||||||||||
| Reuters Omits Grey Areas on Gold in China Posted: 16 Apr 2014 08:00 AM PDT More evidence that the mainstream financial media often gets it wrong when reporting on precious metals in general and gold in particular when it comes to reporting on anything other than its price comes via this story at Reuters on Tuesday. It seized on a few comments at the tail end of a World [...] | ||||||||||||||||||||
| Margins, Multiples, and the Iron Law of Valuation Posted: 16 Apr 2014 07:19 AM PDT Garbage In, Garbage Out. This well-worn phrase describes how feeding flawed data into a computer guarantees that it will spit out flawed results. It applies equally to human endeavors: if you attempt to answer a question using bad data, your answer will be wrong, no matter how rigorous your analysis. That’s why the ability to separate important information from garbage is one of the most useful skills an investor can possess. With statistics like these constantly bombarding us… “Short Facebook—its price-to-book ratio is 10.8!” “Load up on Exxon shares—its price/earnings ratio is just 13.3!” “Don’t even think about buying Blackberry—its short interest is over 20.4%!” … we need to know which ones to pay attention to, and which ones to ignore. Today’s guest author, fund manager, and frequent contributor to this missive, John Hussman, is the king of making such distinctions. He often scolds pundits in his weekly market comment series for citing statistics that make for good sound bites, but don’t correlate at all to what they’re trying to prove. In what follows, John reveals a few lesser-known valuation metrics that actually do have proven track records for predicting where the stock market is going. Read on to learn about them, and what they say about how the stock market will perform over the next several years. Dan Steinhart Margins, Multiples, and the Iron Law of ValuationJohn Hussman, President, Hussman Investment Trust The equity market remains valued at nearly double its historical norms on reliable measures of valuation (though numerous unreliable alternatives can be sought if one seeks comfort rather than reliability). The same measures that indicated that the S&P 500 was priced in 2009 to achieve 10-14% annual total returns over the next decade presently indicate estimated 10-year nominal total returns of only about 2.7% annually. That’s up from about 2.3% annually last week, which is about the impact that a 4% market decline would be expected to have on 10-year expected returns. I should note that sentiment remains wildly bullish (55% bulls to 19% bears, record margin debt, heavy IPO issuance, record “covenant lite” debt issuance), and fear as measured by option volatilities is still quite contained, but “tail risk” as measured by option skew remains elevated. In all, the recent pullback is nowhere near the scale that should be considered material. What’s material is the extent of present market overvaluation, and the continuing breakdown in market internals we’re observing. Remember—most market tops are not a moment but a process. Plunges and spikes of several percent in either direction are typically forgettable and irrelevant in the context of the fluctuations that occur over the complete cycle. The Iron Law of Valuation is that every security is a claim on an expected stream of future cash flows, and given that expected stream of future cash flows, the current price of the security moves opposite to the expected future return on that security. Particularly at market peaks, investors seem to believe that regardless of the extent of the preceding advance, future returns remain entirely unaffected. The repeated eagerness of investors to extrapolate returns and ignore the Iron Law of Valuation has been the source of the deepest losses in history. A corollary to the Iron Law of Valuation is that one can only reliably use a “price/X” multiple to value stocks if “X” is a sufficient statistic for the very long-term stream of cash flows that stocks are likely to deliver into the hands of investors for decades to come. Not just next year, not just 10 years from now, but as long as the security is likely to exist. Now, X doesn’t have to be equal to those long-term cash flows—only proportional to them over time (every constant-growth rate valuation model relies on that quality). A good way to test a valuation measure is to check whether variations in the price/X multiple are closely related to actual subsequent returns in the security over a horizon of 7-10 years. This is very easy to do for bonds, especially those that are default-free. Given the stream of cash flows that the bond will deliver over time, the future return can be calculated by observing the current price (the only variation from actual returns being the interest rate on reinvested coupon payments). Conversely, the current price can be explicitly calculated for every given yield-to-maturity. Because the stream of payments is fixed, par value (or any other arbitrary constant for that matter) is a sufficient statistic for that stream of cash flows. One can closely approximate future returns knowing nothing more than the following “valuation ratio”: price/100. The chart below illustrates this point. [Geek’s Note: the estimate above technically uses logarithms (as doubling the bond price and a halving it are “symmetrical” events). Doing so allows other relevant features of the bond such as the maturity and the coupon rate to be largely captured as a linear relationship between log(price/100) and yield-to-maturity]. Put simply, every security is a claim on some future expected stream of cash flows. For any given set of expected future cash flows, a higher price implies a lower future investment return, and vice versa. Given the price, one can estimate the expected future return that is consistent with that price. Given an expected future return, one can calculate the price that is consistent with that return. A valuation “multiple” like Price/X can be used as a shorthand for more careful and tedious valuation work, but only if X is a sufficient statistic for the long-term stream of future cash flows. Margins and Multiplesrepresentative measures of future cash flows when investors consider questions about valuation. It’s striking how eager Wall Street analysts become—particularly in already elevated markets—to use current earnings as a sufficient statistic for long-term cash flows. They fall all over themselves to ignore the level of profit margins (which have always reverted in a cyclical fashion over the course of every economic cycle, including the two cycles in the past decade). They fall all over themselves to focus on price/earnings multiples alone, without considering whether those earnings are representative. Yet they seem completely surprised when the market cycle is completed by a bear market that wipes out more than half of the preceding bull market gain (which is the standard, run-of-the-mill outcome). The latest iteration of this effort is the argument that stock market returns are not closely correlated with profit margins, so concerns about margins can be safely ignored. As it happens, it’s true that margins aren’t closely correlated with market returns. But to use this as an argument to ignore profit margins is to demonstrate that one has not thought clearly about the problem of valuation. To see this, suppose that someone tells you that the length of a rectangle is only weakly correlated with the area of a rectangle. A moment’s thought should prompt you to respond, “Of course not—you have to know the height as well.” The fact is that length is not a good sufficient statistic, nor is height, but the product of the two is identical to the area in every case. Similarly, suppose someone tells you that the size of a tire is only weakly correlated with the number of molecules of air inside. A moment’s thought should make it clear that this statement is correct, but incomplete. Once you know both the size of the tire and the pressure, you know that the amount of air inside is proportional to the product of the two (Boyle’s Law, and yes, we need to assume constant temperature and an ideal gas). The same principle holds remarkably well for equities. What matters is both the multiple and the margin. Wall Street—You want the truth? You can’t handle the truth! The truth is that in the valuation of broad equity market indices, and in the estimation of probable future returns from those indices, revenues are a better sufficient statistic than year-to-year earnings (whether trailing, forward, or cyclically adjusted). Don’t misunderstand—what ultimately drives the value of stocks is the stream of cash that is actually delivered into the hands of investors over time, and that requires earnings. It’s just that profit margins are so variable over the economic cycle, and so mean-reverting over time, that year-to-year earnings, however defined, are flawed sufficient statistics of the long-term stream of cash flows that determine the value of the stock market at the index level. As an example of the interesting combinations that capture this truth, it can be shown that the 10-year total return of the S&P 500 can be reliably estimated by the log-values of two variables: the S&P 500 price/book ratio and the equity turnover ratio (revenue/book value). Why should these unpopular measures be reliable? Simple. Those two variables—together—capture the valuation metric that’s actually relevant: price/revenue. If you hate math, just glide over any equation you see in what follows—it’s helpful to show how things are derived, but it’s not required to understand the key points. price/revenue = (price/book)/(revenue/book) Taking logarithms and rearranging a bit: log(price/revenue) = log(price/book) + log(book/revenue) If price/revenue is the relevant explanatory variable, we should find that in an unconstrained regression of S&P 500 returns on log(price/book) and log(book/revenue), the two explanatory variables will be assigned nearly the same regression coefficients, indicating that they can be joined without a loss of information. That, in fact, is exactly what we observe. Similarly, when we look at trailing 12-month (TTM) earnings, the TTM profit margin and P/E ratio of the S&P 500 are all over the map. When profit margins contract, P/E ratios often soar. When profit margins widen, P/E ratios are suppressed. All of this introduces a terrible amount of useless noise in these indicators. As a result, TTM margins and P/E ratios are notoriously unreliable individually in explaining subsequent market returns. But use them together, and the estimated S&P 500 return has a 90% correlation with actual 10-year returns. Moreover, the two variables—again—come in with nearly identical regression coefficients. Why? Because they can be joined without a loss of information; that is, the individual components contain no additional predictive information on their own. Just like the area of a rectangle and Boyle’s Law: price/revenue = (earnings/revenue)*(price/earnings) Again, taking logarithms: log(price/revenue) = log(profit margin) + log(P/E ratio) The chart below shows this general result across a variety of fundamentals. In each case, the fitted regression values have a greater than 90% correlation with actual subsequent 10-year S&P 500 total returns. Let’s be clear here—I’m not a great fan of this sort of regression, strongly preferring models that have structure and explicit calculations (see, for example, the models presented in It Is Informed Optimism to Wait for the Rain). The point is that one can’t cry that “profit margins aren’t correlated with subsequent returns” without thinking about the nature of the problem being addressed. The question is whether P/E multiples, or the Shiller cyclically adjusted P/E, or the forward operating P/E, or price/book value, or market capitalization/corporate earnings, or a host of other possibilities can be used as sufficient statistics for stock market valuation. The answer is no. What we find is that both margins and multiples matter, and they matter with nearly the same regression coefficients—all of which imply that revenue is a better sufficient statistic of the long-term stream of future index-level cash flows than a host of widely followed measures. Emphatically, one should not use unadjusted valuation multiples without examining the relationship between the underlying fundamental and revenues. That is why we care so much about record profit margins here. Note that in each of these regressions, the coefficients could place a low weight on profit margins and other measures that are connected with revenues, if doing so would improve the fit. They could place significantly different coefficients on margins and multiples, if doing so would improve the fit. They just don’t, and like the area of a rectangle and Boyle’s Law, this tells you that it is the product of the two measures that drives the relationship with subsequent market returns. [Geek’s Note: Gross value added (essentially revenue of US corporations including domestic and foreign operations) is estimated as domestic financial and nonfinancial gross value added, plus foreign gross value added of US corporations inferred by imputing a 10% profit margin to the difference between total US corporate profits after tax and purely domestic profits. Varying the assumed foreign profit margin has very little impact on the overall results, but this exercise addresses the primary distinction (h/t Jesse Livermore) between normalizing CPATAX by GDP versus normalizing by estimated corporate revenues.] To illustrate these relationships visually, the 3-D scatterplot below shows the TTM profit margin of the S&P 500 along one bottom axis, the TTM price/earnings ratio on the other bottom axis, and the actual subsequent 10-year annual total return of the S&P 500 on the vertical axis. This tornado of points is not distributed all over the map. Instead, you’ll notice that the worst market returns are associated with points having two simultaneous features: not only above-average profit margins, but elevated price/earnings multiples as well. This combination is wicked, because it means that investors are paying a premium price per dollar of earnings, where the earnings themselves are cyclically-elevated and unrepresentative of long-term cash flows. This is the situation we observe at present. It bears repeating that the S&P 500 price/revenue multiple, the ratio of market capitalization to GDP, and margin-adjusted forward P/E and cyclically adjusted P/E ratios remain more than double their pre-bubble historical norms. [Geek’s Note: On a 3-D chart where the Z variable is determined by the sum or product of X and Y, a quick way to visually identify the relationship is to view the scatter from either {min(X},max(Y)} or {max(X),min(Y)} as above]. The upshot is that regardless of the metrics used, S&P 500 nominal total returns in the coming decade are likely to be in the very low single digits—from current levels. But remember the Iron Law of Valuation—for a given stream of long-term expected cash flows, as valuations retreat, prospective returns increase. This should be a cause for optimism about future investment opportunities. Unfortunately, not present ones. | ||||||||||||||||||||
| Gold Futures Halted Again On Latest Furious Slamdown Posted: 16 Apr 2014 06:16 AM PDT Gold Stock Bull | ||||||||||||||||||||
| Posted: 16 Apr 2014 06:10 AM PDT GOLD TRADING in London's wholesale market was muted on Wednesday morning, failing to break more than 0.5% either side of $1300 per ounce while equities rose worldwide despite fresh military confrontations in eastern Ukraine. Silver prices spiked to $19.80 per ounce but held nearly 2% down for the week so far, doubling the drop in gold. Gold trading "had a very ugly day Tuesday," says a technical note from Canadian ScotiaBank's bullion division Scotia Mocatta. "We have been stopped out of our bullish view, and have shifted to neutral." "Surprising as it was," says US brokerage INTL FCStone of Tuesday's near-$40 plunge, "the sell-off in gold was likely attributable to heavy stop-loss liquidation," with "hectic" gold trading as the price fell through its 200-day moving average at $1300. Falling some $15 per ounce "just in the span of a minute," says the note, gold's trading action was "indicative of stops being set off." Playing catch-up with Tuesday's drop in New York futures, Shanghai prices today extended that fall to end the day equal to $1299 per ounce – a discount of $3.50 to London quotes this morning. Gold trading was brisk however, with the Shanghai Gold Exchange seeing the strongest volume in its most active "spot" contract for almost 3 weeks. Although China's retail sales grew sharply overall in March, rising 12.2% by value from the same month last year, sales of gold, silver and jewelry fell 6.1% new data showed today. Forecasting a "year of consolidation" for China's gold demand in 2014 after the huge consumer response to 2013's gold price crash, a new report from market-development organization the World Gold Council said Tuesday that "Physical gold demand is likely to further growth over the medium term" as China's middle class swells from 300 to 500 million people by 2020. Over-stocking by Chinese wholesalers is capping new demand, reckons Societe Generale analyst Robin Bhar, who tells Kitco News that "There is less metal being drawn out of US Comex warehouses and being exported to Asia, which had been particularly strong in 2013." But with gold stockpiles in US Comex warehouses growing to new 10-month highs however, the cost of short-term gold loans in London rose Wednesday to new 8-month highs, suggesting tighter supply in the world's main wholesale market. One-month GOFO rates – an incentive offered to would-be gold borrowers, who must pay storage and lose cash interest during the term of a loan – today went to minus 0.11% annualized. That means London bullion lenders are asking the highest payment since mid-August, as the surge in 2013 Asian demand pulled gold out of UK storage. | ||||||||||||||||||||
| Gold Doomed or Resting? Gold vs. Major Currencies; Goldman Sachs and Morgan Stanley Reiterate Sell S Posted: 16 Apr 2014 06:01 AM PDT Global Economic Analysis | ||||||||||||||||||||
| Silver and Gold Miners Still Disappoint Posted: 16 Apr 2014 05:36 AM PDT Briefly: In our opinion speculative short positions (full) in gold, silver, and mining stocks are justified from the risk/reward perspective. Yesterday, we emphasized that the situation in the mining stock sector was bearish. We wrote the following: One could argue that the general stock market also declined and it was this factor that caused the decline in miners. Yes, stocks declined overall, but if the mining stocks and precious metals sector in general wasn’t weak and about to decline anyway, miners would have not responded as decisively as they did. Miners underperformed gold once again on Friday and the short positions that we opened last week are already profitable. | ||||||||||||||||||||
| Collapse (Full Movie) -- Michael Ruppert Posted: 16 Apr 2014 02:39 AM PDT Collapse, directed by Chris Smith, is an American documentary film exploring the theories, writings and life story of controversial author Michael Ruppert. IN MEMORIAM MICHAEL C. RUPPERT, February 3, 1951–April 13, 2014. Sunday night following Mike's Lifeboat Hour radio show, he was found dead... [[ 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! ]]  | ||||||||||||||||||||
| Salman Partners' Raymond Goldie: Copper Is Pathological and Suffers from SAD, but It Has Value Posted: 16 Apr 2014 01:00 AM PDT Dr. Copper may be in a supercycle, but there are serious problems. In this interview with The Gold Report, Salman Partners' Vice President of Commodity Economics Raymond Goldie explains why even though the base metal acts pathologically and has a bad case of seasonal affective disorder, these six equities are priced below their intrinsic value. | ||||||||||||||||||||
| Salman Partners' Raymond Goldie: Copper Is Pathological and Suffers from SAD, but It Has Value Posted: 16 Apr 2014 01:00 AM PDT Dr. Copper may be in a supercycle, but there are serious problems. In this interview with The Gold Report, Salman Partners' Vice President of Commodity Economics Raymond Goldie explains why even though the base metal acts pathologically and has a bad case of seasonal affective disorder, these six equities are priced below their intrinsic value. | ||||||||||||||||||||
| Salman Partners' Raymond Goldie: Copper Is Pathological and Suffers from SAD, but It Has Value Posted: 16 Apr 2014 01:00 AM PDT Dr. Copper may be in a supercycle, but there are serious problems. In this interview with The Gold Report, Salman Partners' Vice President of Commodity Economics Raymond Goldie explains why even... Visit the aureport.com for more information and for a free newsletter |
Today's news and yesterday's news, with gold declining, is very interesting. The most important reason put out by the bullion banks and the mainstream media had to do with the study released by the World Gold Council that suggested that not all of the gold that's been imported into China has been used for central bank reserves or has gone into retail safekeeping.
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