Gold World News Flash |
- Gold Daily and Silver Weekly Charts – Madness, Ending Badly
- Gold Bounces as Ukraine Crisis Escalates
- GOLD IS GONE: Cornered by CHINA | Murphy & MacLeod
- Economic Collapse 2014 -- Current Economic Collapse News Brief
- The Volatility of War, the Promise of Gold
- Zulauf, Ing, and Rule interviewed at King World News
- Lawrence Williams: Two-Faced Goldman Appears to Hedge Bets on Gold Stocks and Bullion
- In The News Today
- Someone Is Betting That The Chinese Currency Collapses By The End Of 2014?
- Brand New “Smart Money” Now Betting On Gold & Silver Sector
- Are You An Elitist? Class Warfare And The New Nobility
- Which Drivers Made Of China The World’s Largest Gold Market?
- Gold Investors Weekly Review – April 25th
- Prospects For Gold And Silver Prices From A Russian Point Of View
- Gold price rigging allows continuation of flawed policies
- Global Financial War & Gold Headed To New All-Time Highs
- Jim’s Mailbox
- STOCKS BUBBLE PHASE: GOLD CAPITULATION FOLLOW UP
- Safe Deposit Boxes Are Not Safe for Silver & Gold Buyers
- TF Metal Report: Whistling past the graveyard
| Gold Daily and Silver Weekly Charts – Madness, Ending Badly Posted: 27 Apr 2014 12:00 AM PDT from Jesse's Café Américain:
In February 1720 an edict was published, which, instead of restoring the credit of the paper, as was intended, destroyed it irrecoverably, and drove the country to the very brink of revolution…" Charles MacKay, Extraordinary Popular Delusions and The Madness of Crowds Self-awareness, empathy, and foresight are not, unfortunately, high in the ordered skill set of narcissists. If Europe had any decency, leadership, and moral courage they would take the US financial system’s car keys, sit them down in the kitchen, pour black coffee down their throats until they sober up, and then arrange for an extended intervention. |
| Gold Bounces as Ukraine Crisis Escalates Posted: 26 Apr 2014 11:38 PM PDT Gold Stock Bull |
| GOLD IS GONE: Cornered by CHINA | Murphy & MacLeod Posted: 26 Apr 2014 10:00 PM PDT from FinanceAndLiberty.com: |
| Economic Collapse 2014 -- Current Economic Collapse News Brief Posted: 26 Apr 2014 08:13 PM PDT In this news brief we will discuss the latest news on the economic collapse. We look to see if things are really that different. The central bank will not stop at just confiscating your wealth they will want your life. They want to enslave the people. Corporations grabbing the internet by... [[ 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 Volatility of War, the Promise of Gold Posted: 26 Apr 2014 08:00 PM PDT by Anthony Wile, The Daily Bell:
The escalation in rhetoric came as “pro-Russian forces detained a team of military observers with the Organization for Security and Cooperation in Europe.” While all this sounds ominous, I have trouble believing this confrontation is going to end in Armageddon. More on that in a minute. There’s really no side to root for here. Russians are running Crimea and the West is apparently helping to run the rest. |
| Zulauf, Ing, and Rule interviewed at King World News Posted: 26 Apr 2014 07:59 PM PDT 10:55p ET Saturday, April 26, 2014 Dear Friend of GATA and Gold: At King World News, fund manager Felix Zulauf says currency devaluations will lead to capital controls internationally: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/4/25_Zu... Market analyst John Ing notes the acquisition of Osisko Mining by Yamana Gold and Agnico-Eagle Mines and the potential merger of Barrick Gold and Newmont Mining and says the big buyers of gold lately are starting to include mining companies themselves: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/4/26_Gl... And Sprott Asset Management's Rick Rule says the most likely outcomes for the world economy in the next few years are hugely bullish for high-quality resource stocks: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/4/26_Br... 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... 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: 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: |
| Lawrence Williams: Two-Faced Goldman Appears to Hedge Bets on Gold Stocks and Bullion Posted: 26 Apr 2014 07:30 PM PDT by Ed Steer, Casey Research:
The CME Group recorded the low and high ticks as $1,290.40 and $1,304.80 in the June contract. The gold price closed in New York at $1,303.80 spot, up $9.90 from Thursday’s close. Volume, net of April and May, was reasonably light at only 113,000 contracts. |
| Posted: 26 Apr 2014 04:12 PM PDT Jim Sinclair’s Commentary Goldman puts out buy recommendations on major gold producers. Ukraine govt asks public to donate soap, linen for special 'anti-separatist' units Published time: April 26, 2014 06:46 Edited time: April 26, 2014 07:38 The cash-stripped Ukrainian Interior Ministry is asking the public for donations to equip the newly formed special forces. It... Read more » The post In The News Today appeared first on Jim Sinclair's Mineset. |
| Someone Is Betting That The Chinese Currency Collapses By The End Of 2014? Posted: 26 Apr 2014 03:37 PM PDT Last week, USDCNY began to accelerate lower and break across the "real pain" threshold that we have been discussing for many of the world's so-called "hedgers" who have been riding the one-way strengthening trend of the CNY for years and piled in with leveraged trades on what had been a one-way bet. The collapse this week, to levels not seen since pre-BoJ QQE and pre-Fed QE3 appeared to trigger an avalanche of unwinds or hedges of the exposures we have been worrying about. As the chart below shows, billions of dollars of upside calls on USDCNY were purchased on Friday with serious size out to 6.65 strikes (levels not seen since 2009) by the end of 2014.
The losses are mounting, as we explained in great detail here... Simply put, if the CNY keeps going (whether by PBOC hand or a break of the virtuous cycle above), then things get ugly fast... How Much Is at Stake?
And clearly the hedging of those losses is underway en masse... (the size of the circles is the notinal being hedged - we have highlighted a few for context) as it is clear, hedgers are concerned that CNY would weaken to 6.65 or beyond by the end of the year
(h/t @moved_average )
The escalation of the unwind in recent days suggests the vicious circle is beginning.
Finally, putting aside speculative trader P&L losses, many of which are said to be of Japanese origin and thus will hardly enjoy much or any PBOC sympathies, here is CLSA's Russel Napier on what the long-tern fate of the Renminbi will be:
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| Brand New “Smart Money” Now Betting On Gold & Silver Sector Posted: 26 Apr 2014 02:42 PM PDT  Today one of the wealthiest people in the financial world spoke with King World News about brand new "smart money" that is just now entering and betting big on the gold and silver sector. This is an important interview with Rick Rule, who is business partners with billionaire Eric Sprott, where he discusses this incredibly important development. Below is what Rule had to say in this fascinating interview. This posting includes an audio/video/photo media file: Download Now |
| Are You An Elitist? Class Warfare And The New Nobility Posted: 26 Apr 2014 12:33 PM PDT Submitted by Charles Hugh-Smith of OfTwoMinds blog, Class warfare reflects a dysfunctional divide-and-conquer society. One of the easiest ways to put someone on the defensive in America is to accuse him/her of being an elitist. The power of this accusation derives from a complex mix of dynamics. At least one goes all the way back to the founding principles of the nation: a profound and abiding distrust of monarchy and landed nobility, and a well-grounded fear that democracy could be subverted and a new form of feudal monarchy returned to power. It is increasingly clear that a new form of feudalism has indeed subverted democracy, and that the New Feudalism is powered by concentrations of private wealth and centralized state control: what I call the New Nobility. Recall my Feudalism Corollary #1:
This is why politicians bred in the hothouses of elite universities must perform "I'm one of you" rituals such as publicly enjoying low-brow snack food and attending mid-brow music performances. That such transparent immunizations against charges of elitism still work is testament to the credulity of a media-soaked populace. There is an uglier aspect to the accusatory power of charges of elitism: as the sense that hard work and integrity are no longer guarantees of upward mobility in America, a corrosive class envy is coming to a boil. This is the subtext of the emergent topic of the day, wealth and income inequality. Since the vast majority of us cannot lash out in any satisfying way at the top .01% who own most of the wealth and control the political machinery--in other words, the New Nobility--we seek some other accessible target. Expressing anger at the representatives of authority--police, Homeland Security, etc.--is a risky proposition, as being beaten and hauled off to jail or being shot are distinct possibilities. Beyond the overwhelming use of raw force, authorities maintain an arsenal of soft weapons such as false public accusations, vague legal charges that keep morphing as the accused demolishes each specific charge, IRS audits, and so on. This rage at the dominance of essentially feudal elites and their armies of underlings willing to enforce their rule is increasingly being directed at the elected toadies and lackeys. In response, craven politicos are restricting their exposure to angry serfs. That leaves the top 10% as the only accessible target for class envy and the generalized rage of a peasantry that cannot identify the causes of their servitude.This is misdirection, of course; the top 10% of professionals and technocrats have benefited within the New Feudalism, but they are functionaries, not the New Nobility. It's clear that the top 10%--the class of technocrats, professionals, entrepreneurs and creatives--has managed to increase their wealth despite the dominance of the top .01%, whose wealth and power has pulled away from the top 10% and even the top 1%.
The Richest Rich Are in a Class by Themselves: top .01% and top .1% The top 5% has done marginally better than the top 10%, and the top 20% have done better than the bottom 80%:
A household income of around $150,000 a year qualifies as a top 10% income: Because the super-wealthy are in the top 5% and top 1%, the average incomes of these groups are heavily skewed by the enormous incomes of the top 01%. As a result, it would be more accurate to remove the top .1% from the top 10%, top 5% and top 1%, but I haven't found any statistical charts that reflect this. For their part, the top 10%/5% are feeling unfairly targeted by this class envy, as they pay the vast majority of income taxes: CBO:Top 40% Paid 106.2% of Income Taxes; Bottom 40% Paid -9.1% Rather than being "the enemy," the top 10% feels they're the good guys, the ones providing jobs and paying most of the taxes that support the bottom 40%. While the bottom 90% focuses on their own set of resentments, the top 10% have their own resentments: the public services they pay for are often marginal or poor quality. This reality is fueling a movement of wealthier communities to incorporate into new cities that are operated for the benefit of their residents: services are run more like businesses than spoils systems (the default model of large urban cities), taxes are kept low and feedback from taxpayers keeps service quality high. I have covered the various class fault lines emerging in America many times: The Three-and-a-Half Class Society (October 22, 2012) The New Feudalism a partnership of the Tyranny of the Majority, entrenched incumbents and the top .1% Elites. If the political Status Quo alienates the majority by making them pay more taxes, they risk losing power in the next election. If they alienate the top .1% who fund their multi-million-dollar campaigns, then they will also lose power. So they heap the tax burden on what remains of the middle class. There is a social dimension to this emerging class warfare, a topic I discuss in Bifurcation Nation (June 24, 2013). The top 20% is characterized not just by wealth but by a set of cultural behaviors, values and norms that are increasingly divergent from the norms and behaviors of the bottom 80%. The haves are married, have college degrees, rarely have military service, attend religious services, and have little contact with those outside their own upper-middle class. The have-nots are divorced/single parents, less educated, more likely to have served in the military, less likely to attend church, and earn much less than the haves. I myself am routinely accused of being elitist, on the grounds that few can afford the meals I present here. I have repeatedly proven this assertion to be absolutely false, as home-cooked meals are cheaper than fast-food "value meals" or packaged convenience food. America's Excuse Book: Take Your Choice, Victim or Heartless Hypocrite (December 2, 2013) These accusations are especially irksome because I have been low-income for most of my adult life and have carried far too much lumber on far too many jobsites to tolerate any accusations of elitism. I suspect many others routinely accused of elitism feel the same way. The urge to accuse everyone with something better than you have of being part of an exploitive elite reflects not just generalized rage but the victory of victimhood. Sadly, one of the few ways for the marginalized in our society and economy to "get ahead" is to make claims of victimhood to secure disability, social services, etc. The core of victimhood is "it's not my fault." The system rewards victimhood, so it's no surprise that has become a dominant social norm. And where does this set of norms lead us? To a dysfunctional divide-and-conquer society in which the top 10% paying most of the taxes is increasingly resentful of the .1% New Nobility above them and the masses below that look at the 10% as the only accessible target of their generalized anger at the injustice of their servitude and powerlessness. The top .1% New Nobility, which of course includes all the craven politicos in thrall to the super-wealthy, have the means to sequester themselves away in gated estates and private jets. No wonder the top 10% is actively pursuing whatever means are available to avoid the resentments of those below. Meanwhile, those running the mainstream media and the machinery of governance have to generate targets for the generalized rage other than the actual sources of dysfunction: the centralized state itself and the private concentrations of capital that partner with the state's elites in the New Nobility. Want to give an enduringly practical graduation gift? Then give my new book Get a Job, Build a Real Career and Defy a Bewildering Economy, a mere $9.95 for the Kindle ebook edition and $17.76 for the print edition. |
| Which Drivers Made Of China The World’s Largest Gold Market? Posted: 26 Apr 2014 12:31 PM PDT China has become the world’s largest gold market recently. India, who used to have the largest gold market, was burned by its own government imposing more than 20 restrictions in a matter of 2 years. China's private-sector demand for gold in 2013 reached a record level of 1,132 tonnes. The World Gold Council (WGC) predicts gold demand growing 20 percent by 2017. China is becoming an economic powerhouse, a real magnet of wealth. No wonder that gold is flowing to China, as gold flows to the places where wealth is created.
In this article, Frank Holmes from USFunds.com explains the drivers behind the Chinese gold market, and how China established to become the world’s largest gold market. In sum, he says that consumer demand has exploded because the purchasing power of the middle class has increased, that industrial demand has gone up as well, while the central bank has exchanged much of its dollar into gold. From USFunds.com: Driver 1: Jewelry is still the top demand driver The WGC report also reaffirms the ongoing power of the Love Trade. The Love Trade, one of the two main drivers of gold along with the Fear Trade, relates to the cultural affinity for the precious metal particularly in Asia, India and the Middle East. Consumers continue to purchase gold jewelry and coins year-after-year, and demand rises in synch with gift giving for religious holidays and celebrations. As you can see in the chart below, since 2004 the volume of gold jewelry consumed in China has tripled. What's more, China surpassed India as the world's largest consumer and manufacturer of jewelry in 2013. According to a recent Reuters' article, gold jewelry sales in India slowed by 10 percent since import restrictions were imposed on the country last year – a likely factor placing China in the top spot.  China Jewelry consumption from 2004 till 2014 Driver 2: A new middle class has more money to spend The WGC points out in its recent report that only in the last several years has China seen an emerging middle class supported by higher incomes. Until around 2006 for example, Shenzhen, where 70 percent of the country's jewelry is fabricated, only had 330,000 residents. This means that 30 years ago, China's jewelry market and consumer demand for gold, was minimal at best. Over the last 10 years however, a new middle class has emerged and consumers have been enjoying their new wealth. As GDP began to rise, people started buying more gold jewelry and coins. In addition to increased spending on these items, the investment demand for the yellow metal progressed as the population sought a hedge against inflation. Driver 3: Industrial demand is increasingly important Though not nearly as strong as the gold jewelry demand in China, the country's rise in GDP has also increased industrial demand for gold. The WGC says that electronics are the dominant source of this industrial demand. Gold is used in cellphones, computers, circuit boards and recently the automobile industry has seen an increased demand for the metal. Gold may seem like an expensive option to choose from to build cellphone parts or airbag connectors in vehicles, but as the report states, "Although manufacturers are always trying to reduce the cost of components and substitute gold with lower cost alternatives, this cannot be done where optimum performance and, especially, safety concerns are to the fore." In our slideshow, The Many Uses of Gold, we explain other ways gold is used; not only for industrial needs, but for medical and technological advances as well. Driver 4: China is diversifying away from the U.S. dollar When it comes to foreign exchange reserves, China's totalled $3.8 trillion U.S. dollars in 2013, a sharp increase from the mid-90s as you can see in the chart below. There are several challenges facing the Asian nation's monetary system too; the multi-currency system which includes the renminbi, yuan and the dollar is no easy task to manage. But how are China's foreign exchange reserves and monetary troubles a driver for gold demand?  China: gold reserves vs foreign exchanges reserves from 1994 till 2014 For starters, according to the WGC, the majority of growth in China's reserves (implied specifically by the country's current account surplus) has been in U.S. dollars. China used the dollar to buy American debt securities, but upon the global financial crisis and the start of quantitative easing (QE), China has been pulling away from exposure to the dollar. In a recent article from Casey Research, Chief Economist Bud Conrad even comments on the decline of the dollar's reserve status in foreign countries such as China. He says, "In 2000, the dollar accounted for 55 percent of all foreign exchange reserves. In 14 short years, that number has dropped to 33 percent. By 2020, I project, it will drop to 20 percent. At that point, other large economies of the world won't need dollars nearly as much for international trade." I believe that government policy is a precursor to change, so as fiscal and geopolitical challenges rise between the two countries, it's no wonder China wants to back away from the dollar and thus, diversify to gold. Gold is a hard asset, making it a prime currency choice for China. In regards to gold, the WGC report even states that, "It cannot be created out of thin air at the whim of central banks. Nor can it be manipulated for the benefit of its issuer." So what is China up to now? So perhaps the People's Bank of China is amping up its gold reserves to diversify away from the U.S., but one question remains. Exactly how much gold does China have? No matter the exact amount of gold that China has, this country is a good example that the demand drivers for gold remained the same. People around the world react with concern over government policies that can devalue currencies, thus making gold attractive. Similarly, as economies flourish and people have money, they will spend it on gold. The Love Trade will also continue; consumers will purchase gold as gifts as long as cultural celebrations and religious traditions carry on. It's important to follow the money, or in this case the gold, to see how people around the world react to this rare commodity. Looking forward, stay curious as an investor and you'll see if China can keep the key to the gold market. |
| Gold Investors Weekly Review – April 25th Posted: 26 Apr 2014 11:57 AM PDT In his weekly market review, Frank Holmes of the USFunds.com nicely summarizes for gold investors this week's strengths, weaknesses, opportunities and threats in the gold market. Gold closed the week at $1,302.54, up $7.01 per ounce (0.54%). The NYSE Arca Gold Miners Index rose 3.26% on the week. This was the gold investors review of past week. Gold Market StrengthsSigns that inflation has likely bottomed are now showing up everywhere and should stoke inflation expectations in support of gold. The Federal Reserve's M2 money supply growth is running at an annualized rate of 8 percent, a multiple of gold's long-term supply growth of around 2 percent, annually. Similarly, U.S. bank loans have accelerated to levels not seen since 2007, with commercial and industrial loans rising at a 16.1 percent rate over the past 18 weeks. Similarly, average hourly earnings for American workers now run consistently above a 2 percent annual growth rate.  US Money Supply M2 in 2014 Gold rebounded towards the end of the week to $1,302.54 per ounce, as conflicts in Ukraine continue and traders bet that prices will rise amid quickening inflation. Gold sales in Japan more than doubled in the first quarter, ahead of the consumption tax hike that is expected to fuel inflation. Platinum also posted strong performance this week as companies and labor unions in South Africa failed to reach a deal that would end a 13-week-long strike. Gold Market WeaknessesTurkey and Russia both cut gold holdings in March after increases during the previous month, according to data from the International Monetary Fund (IMF). Bullion holdings by central banks are closely watched since the group became net buyers in 2010, after two decades as net sellers. This selling highlights gold's role as a backstop in times of crisis, with Russia likely swapping gold for foreign currency amid the threat of western sanctions. Gold ETF investors have been sellers in April, as monthly outflows reach 516,000 ounces. Outflow days have outnumbered inflow days by a 2:1 ratio. According to UBS, this trading action contrasts with buying during February and March of 261,000 and 463,000 ounces, respectively. On the positive side, April selling is just shy of the inflows recorded in the prior two months, leading UBS analysts to believe the bulk of the selling is now done. Gold Market OpportunitiesRBC analysts upgraded Agnico Eagle to "outperform" following the pullback from the combined bid offer for Osisko. The analysts argue that in addition to the overall transaction being accretive to Agnico, the company deserves a premium over its peers. They note its strong 13-percent annual growth profile, its highly diversified and high-quality asset portfolio, along with its ability to generate substantial free cash flow at current prices. On a related note, Solitario Exploration and Royalty engaged SRK to complete a Technical Resource Report on its Bongara Zinc project in Peru. The Bongara deposit is undergoing an advanced technical evaluation by Votorantim, the Brazilian conglomerate, which will carry Solitario to production upon a positive Feasibility Study. A study of gold forward rates and the investment cycle, signals that gold is at a major multi-year low, according to Ian Williams, CEO of Charteris Treasury Portfolio Managers. Williams asserts that inventories are falling rapidly at a time when replacement cost is $1,500 an ounce. In such an environment, it is clearly not possible for gold to trade below replacement cost for very long. Not surprisingly, the U.K.'s Financial Conduct Authority is considering adding bullion to its list of eligible investments for investors saving up for retirement. This move could give a boost to institutional and retail gold demand. Gold Market ThreatsGold fell to a 10-week low before recovering mid-week, as markets were concerned that a weaker Chinese yuan may force supply out of China. The weakness in the Asian currency mounted concerns that investors would be forced to unwind the 1,000 tonnes of the metal allegedly pledged as collateral for loans. However, the assumption that 1,000 tonnes are at risk of liquidation is likely overstated. A large portion likely ended up in the vaults of the central bank, with many more tonnes locked in commercial bank's balance sheets under consumer gold-accumulation plans. China added Beijing as its third mainland gold import point, in a move that would help keep purchases secret if China (the world's top buyer) opted to boost its official reserves. China does not release its gold trade data, leaving Hong Kong's net export data to Shenzhen as the only reliable indicator of Chinese gold imports. The new import channel will aid China in increasing its gold purchases in a discreet manner, but may also relieve some of the pressure seen in Hong Kong as it funneled gold to satisfy China's strong consumer demand. |
| Prospects For Gold And Silver Prices From A Russian Point Of View Posted: 26 Apr 2014 11:49 AM PDT One of the biggest problems for the West, the US in particular, is its increasingly parochial perspective from the narrowest of lenses, fully colored by the elite's use of its main propaganda machine, the Maintstream Media. It will not work for people to expect more from their government, rather, people have to demand and expect more from themselves, for in the end, people will discover all they really had to rely upon was themselves and failed to do so. All of the information one needs to make more enlightened decisions is out there. One has to change their broken habits of spoon-fed expectations from local news and take a more active role in seeking the truth. In a nation that relies upon a police state, increased militarization, and NSA [STASI] spying on its docile population, one cannot expect to hear truth, only lies, and the Obama administration is certainly delivering them. Ask yourself, what is your impression of Russia, of Putin? Then, consider the following information about both. Never in the history of the world have [mostly] Western central bankers issued anything but worthless paper currency, backed by nothing, controlled by unelected bureaucrats, and none beholding to nor responsible for citizens of a nation, your neighbors and everyone you may know. This is the world in which most of you live without challenging it. Others, outside of the Western sphere of central banks, with a firm grip on their respective governments, refuse to remain a victim of the West's inflationary degradation via fiat currencies and the rot-from-within they generates. Who has been the champion prodder of the Ukrainian situation? The United States, led by its teleprompter-reading corporate president, Barack Obama. What has he done? Threatened economic sanctions, provided neo-Nazi thugs to continue to stir unrest, steal, or remove, if you prefer, all the Ukrainian gold in the middle of the night, and drain the country of billions of dollars, transferred to Swiss banks. Are any of these moves in the least bit constructive, let alone justifiable? Putin's response? Aggression to match aggression? No. Just patience, waiting as events that are doomed to fail play out. While Obama does what he can to stir up a hornets nest in an area of the world the US has no business in interfering, Putin is allowing Obama to take as much political rope as he needs to hang himself. In the meantime, Putin is busy putting together deals with other countries, and its natural gas deal with China in the works will be a game-changer for Russia. All of the deals made and those in process will bring income to Russia as a nation. What kind of income? More rubles, some yuan, maybe even some gold. Totally absent is the use of the dollar as the disappearing world reserve currency. Putin is taking his job of running a country seriously and responsibly. Putin spurns Western central banks and continues to strengthen the ruble. He makes deals with other natural resource-rich countries. Obama invades oil-rich countries. While Obama pushes for war on the other side of the world with Syria and Ukraine, Putin is busy making deals on the other side of his world with Obama's ignored neighbors, Mexico and Latin America. While Obama allows the Fed and Wall Street to continually suppress and disparage the gold market, Putin is building Russia's gold reserves. No fiat ruble over there. What has Obama done to help strengthen the US financially? Nil, and to the contrary, he has increased government spending, with no means of ever repaying it, and he has worsened the plight of millions and millions of Americans through his enrich-insurance- companies scheme at the expense of leaving people without affordable insurance coverage. Most Americans have never heard of Russia's Gazprom, yet it dwarfs Exxon and Mobil in size. In anticipation of Western sanctions, Gazprom secured natural gas deals with China. If Gazprom never sold another energy unit of natural gas to the West, its bottom line will continue thrive with its natural gas sold to the East. Further, Gazprom will now only sell their product using rubles, yuan, and gold, no petrodollars allowed. The Russian banking system has responded to the West's petty and of no-effect sanctions by raising a one-finger salute to the West. Russian banks have stopped using the dollar and have adapted total reliance upon its own ruble, intent on having the ruble become a part of any new global currency. US banks continue to entrap citizens with debt-forever fiat. Russia has the second largest gold reserve in the world. US is the highest debtor nation in the entire world. The US has always had a fondness for being number 1 in everything. The fact that Russia has rejected the dollar in every way, coupled with another fact that it will only transact its gas and oil trade in the ruble will have an impact on the US and the West more than any sanctions Obama can ever hope to [under]achieve. As a consequence of pushing Russia away from the [totally failed] Western banking system, the US stands to lose trillions of fiat $ in return. It is not just Russia. All of the other BRICS nations are following suit. The US and the central banking system is committing seppuku, [hari kari], financial [self-imposed] disembowelment. Still think of Russia as an "evil empire?" Here is a quote from one of Russia's members of Parliament on the US and its fiat: "The dollar is evil. It is a dirty green paper stained with blood of hundreds of thousands of civilian citizens of Japan, Serbia, Afghanistan, Iraq, Syria, Libya, Korea, and Vietnam. Our national industrial giants will not suffer any losses if they choose to make contracts in Rubles or other alternative currencies. Russia will benefit from that. We should act paradoxically when we deal with the West. We will sell Rubles to consumers of our oil & gas, and later we will exchange Rubles for Gold. If they do not like this, let them not do this and freeze to death. Before they adjust, and this will take them three of four years, we will collect tremendous quantities of Gold. Russian companies will at last become nationally oriented and stop crediting the economy of the United States that is openly hostile to Russia." Source: Izvestia newspaper What of he US ally Germany? Guess where Germany will turn when push comes to shove? East! It has vastly important financial ties with Russia. Germany's ties to the US? Mostly fiat and highly objectionable NSA tentacles covering the country. Israel. Surely the staunchest US ally? Well, it turns out that the US worsening of events in Ukraine are a threat to Israeli security. Israel has its own floating Tamar natural gas platform, and it has made a deal with Gazprom to export the liquified natural gas. How much of any of this has anyone read or heard about from government-controlled mainstream media? Not a peep, not a sentence. The elites want US citizens to remain dumbed down, and US citizens are complying in utter ignorance and steadfast refusal to consider any alternative news sources. Reliance upon the total control over the corporate and bankrupt federal government's newspeak is the elite's goal. At the outset, we said people need to expect more from themselves and take more responsibility for their own lives. Reliance upon any government is a trap from which there is no escape. We have not even covered all that can be covered re Russia and Putin, or Obama and the federal government, for that matter. We have not even touched China, India, the growing BRICS nations as a power unto themselves, totally outside of and separate from the self- toppling United Sates. The acronym BRICS brings to mind the story of the Three Little Pigs, making houses of straw and twigs that failed, [fiat], with the safest being the one built of brick. The BRICS are using a lot of gold in building their financial ties together. None of this addresses timing, but the message is clear: financial integrity and strength is relying upon gold, in some large degree, as a standard, at least indirectly. The message should be the same for us all who endeavor to withstand the inevitable fall-out from fiat currencies destroying the Western financial system. The East, parts of the Middle East, and even Central and South American countries are accumulating gold. There is no concern about gold going lower or even not going higher, for now. The end-game is not the short-term price, it is for where gold will seek its natural price level once freed from Western central bankers and to not be caught holding nothing but value-lost paper. On a side note, the elites are not stupid. It is likely that they may even be orchestrating the demise of the Federal Reserve Note "dollar." The direction may have been intended to replace the "dollar" with another fiat issue, like an SDR, [Special Drawing Rights], to be issued by an all-controlling, non-elected or representative government, like the BIS, [Bank for International Settlements], or some similar elite organization. What was not anticipated, during all the decades of planning, was the rise of the East and the use of gold as a measure of currency control. Last week could have been an important anchor for a turning point in gold and silver. The comments on the weekly chart cover a lot of ground. What can be added are the observations labeled 4 and 5. Both are directed at the level of volume. The area marked 4 shows increased volume as price rallied. On the current correction, volume has dropped off. This tells us that the selling pressure is not there, as it used to be. The gold price is also respecting, albeit loosely, the half-way correction area between the recent swing low and swing high. In somewhat of a down market condition, that is a good showing. Gold's failure to decline to the lower channel line is an indication of strength.
The daily gold chart is confirming observation made on the weekly, but with more detail. What was not covered in the chart comments was the thin line at the half-way measure of the down sloping channel. Whenever price can hold the half-way point of anything, it is taken as a relative measure of strength
Silver is a test of one's patience. All purchases made at current, even slightly higher, prices will be viewed as gifts and wise moves sometime in the future, be it later this year or into 2015/2016. When silver finally does rally away from its [very constructive] support zone, purchases made at any higher price in the past few years will look like bargains. The way the charts are setting up, even purchases in the paper futures market now have a diminished downside. What cannot be known is when a move to the upside will make any such buys worthwhile from a profit perspective.
That high volume spike should loom as important, moving forward. As with gold, it may be an anchor for establishing the low point for silver, too. Similar to gold, silver has kept just above the half-way area in its down channel. In this last correction, silver did not even come close to reaching the lower channel live, as it did in late March. Last week's close has it bumping up against the upper channel line very soon after the last challenge just two weeks ago. This is a positive development within a negative down trend. On an ending note, last week, mention was made of Gann and the Cardinal Grand Cross, an astrological significant time frame. It all ends with a solar eclipse on the 29th. [See Gann, Cardinal Grand Cross, A Mousetrap And Wrong Expectations, if you did not read it.] It is just interesting to see how both gold and silver can be potentially bottoming at the same time. From our unwavering point of view, price and volume remain the most reliable guides and source of market information.
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| Gold price rigging allows continuation of flawed policies Posted: 26 Apr 2014 11:14 AM PDT “The Matterhorn Interview – April 2014: Bill Kaye”Video interview: They speak about the motive, the means and the opportunities to suppress the gold price. Kaye |
| Global Financial War & Gold Headed To New All-Time Highs Posted: 26 Apr 2014 10:59 AM PDT  Today Canadian legend John Ing told King World News that we are witnessing a global financial war and gold is headed to new all-time highs. Ing, who has been in the business for 43 years, also discussed a major catalyst that no one is focusing on right now. Below is what Ing had to say.This posting includes an audio/video/photo media file: Download Now |
| Posted: 26 Apr 2014 10:17 AM PDT Dear CIGAs, The rules of gold storage: When considering the selection of a bullion storage provider the following items should be considered: · Avoid pooled, paper and digital gold and silver, opting only for fully allocated and segregated storage of physical metal. · You should ensure that the integrity of your bullion is secure by... Read more » The post Jim’s Mailbox appeared first on Jim Sinclair's Mineset. |
| STOCKS BUBBLE PHASE: GOLD CAPITULATION FOLLOW UP Posted: 26 Apr 2014 09:39 AM PDT At the beginning of the month I theorized that stocks were about to enter a final bubble phase, and that during that process gold should deliver a capitulation phase to end the three year bear market. This is a follow-up to see how things are playing out now that we have another months worth of price action behind us. For stocks it still remains to be seen whether or not they have one more surge higher into a final top. If one just looks at the NASDAQ it would appear that stocks have begun moving down into a bear market. However as I pointed out in my previous article it's not unusual to have one, and sometimes two very severe corrections before a final leg up in a ending bubble phase. As I pointed out in my previous article the NASDAQ had two back-to-back 10% corrections before a final 34% surge into that 2000 top.  So we have to ask ourselves, is the NASDAQ rolling over into a new bear market or is this just a final correction before one more surge higher? From a long-term perspective this looks like just a normal pullback to the 200 a moving average after a particularly powerful move over the last year.  I think at this point one still has to give the benefit of the doubt to the bulls. The fact that the advance decline line is still making new highs suggests that this is probably a consolidation in preparation for a break above that 1900 resistance zone.  That being said we now have the potential for the banks to start diverging from the general stock market. As I've noted in the past it's not unusual for the banking index to diverge for several months as stocks put in their final top. So if we see the S&P breakout to new highs over the next month or two but the banks continue to lag this would be a strong indication that a final bull market top is forming.  As most of you know my thesis for this year was that stocks would put in a final bull market top sometime this year, probably in the first half of the year, and that during this process liquidity/inflation would begin to leak out of the stock market and move into the commodity markets. We saw that process began in January as the CRB index delivered a strong initial surge and broke through its three-year downtrend line. After this initial surge is complete commodities should move down into a major yearly cycle correction in early summer followed by a much stronger move in the second half of the year. I think that midyear correction has probably begun. As oil is the most important global commodity it tends to drive the general commodity index. So when oil begins to move down into that yearly cycle correction the rest of the commodity complex should eventually follow as they top out one by one and follow oil lower. On Friday oil broke below its major intermediate uptrend line from the January bottom. This trend line break should signal that oil has begun moving down into its yearly cycle low. The CRB should soon follow oil lower, and I doubt that it will move above that 2012 high before rolling over into that intermediate degree midyear correction.  How does this pertain to gold? To begin with I think the capitulation phase that I theorized in my previous report is probably now off of the table. For that scenario to come to fruition the previous daily cycle needed to drop to the sub $1200 level before bottoming. It looks like gold probably put in that daily cycle low on Thursday at $1268. So does this mean that gold has bottomed and the next bull leg is ready to begin? While it's possible, I tend to think gold probably still has one more mild leg down before the larger intermediate cycle forms a more lasting bottom. Generally speaking the intermediate cycle in gold usually runs between 20 and 25 weeks. A bottom on Thursday would only be week 16. Also most intermediate cycles have at least four, and sometimes five daily cycles nested within them. As you can see in the chart below the current intermediate cycle only has three daily cycles so far. Unless gold can do something to confirm a short intermediate cycle I think we have to assume gold still has one more daily cycle down before this intermediate decline is complete.  Now that the capitulation phase is probably off the table I think the most likely target for a final intermediate bottom would be in the $1260-$1240 range somewhere around the end of May or beginning of June. If however gold were to rally very quickly back above the $1331 level by the end of next week then we could entertain the idea of a short intermediate cycle and a final end to gold's three-year bear market. This scenario would probably require that the stock market has put in a final bull market top, and as I noted at the beginning of this article, I'm not convinced that has happened just yet. I tend to think the moves in stocks and gold recently have been greatly influenced by the tensions in Ukraine. If conditions improve I would expect stocks to resume their trend higher and gold to continue down into a normal duration intermediate bottom in late May or early June.  Over the next 1-2 months commodities should move down into that midyear correction in preparation for a very powerful move up during the second half of the year. Gold should follow the rest of the CRB index down into that yearly cycle low, but I will keep an eye on it over the next week or two as the situation in Eastern Europe may push gold into a divergent path from the rest of the commodity complex.       |
| Safe Deposit Boxes Are Not Safe for Silver & Gold Buyers Posted: 26 Apr 2014 09:14 AM PDT James Anderson writes: Many silver and gold buyers forget one of the main reasons to buy physical silver and gold bullion today is due to the world's current fragile financial system. Some even make the mistake of buying physical bullion and then storing it in a Safe Deposit Box at their local bank. |
| TF Metal Report: Whistling past the graveyard Posted: 26 Apr 2014 07:53 AM PDT 10:52a ET Saturday, April 26, 2014 Dear Friend of GATA and Gold: The TF Metals Report's Turd Ferguson writes today that no matter how many economic penalties are hurled at Russia by the United States and Western Europe, Russia retains the biggest weapon of all: the power to crash the international reserve currency. Ferguson's commentary is headlined "Whistling Past the Graveyard" and it's posted at the TF Metals Report here: http://www.tfmetalsreport.com/blog/5690/whistling-past-graveyard CHRIS POWELL, Secretary/Treasurer 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. 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: 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. |
“Men, it has been well said, think in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, and one by one…
AP is reporting that Ukraine fears Russian invasion. The fears were apparently expressed by Ukraine’s deputy foreign minister. “We have the information we are in danger,” Danylo Lubkivsky told reporters at the United Nations, according to AP.
It was a very uneventful day for the gold price in Far East trading on their Friday, but the price began to develop a positive bias right from the London open—and that continued right up until 10:30 a.m. EDT in New York. After that, it didn’t do much. However, it did manage to close about the $1,300 spot price mark—and I’m happy about that, as “da boyz” could have just as easily sold in down below that mark before they headed out the door for the weekend.
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