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Tuesday, April 8, 2014

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Disaster the end with central bank QE policies - Levenstein

Posted: 08 Apr 2014 07:02 PM PDT

Hedge yourself against geopolitical tensions and expansionary monetary policies of central banks with gold, argues David Levenstein.

Misconception grows over gold demand and Shanghai discount - Phillips

Posted: 08 Apr 2014 02:41 PM PDT

In his latest update, Julian Phillips delves into the meaning of the Shanghai gold discount and argues another metric shows real demand these days.

Gold price rockets back over $1,300

Posted: 08 Apr 2014 02:14 PM PDT

Analysts and traders weren't over-exuberant about gold's striking move this morning - pointing to consolidation, stop orders but also Ukraine.

First Majestic Silver Corp achieves new quarterly record in Silver production

Posted: 08 Apr 2014 12:23 PM PDT

Total silver production for the quarter consisted of 2,895,497 ounces of silver, representing an increase of 19% compared to the same quarter in 2013.

Bear Creek Provides Update on Exploration Programs

Posted: 08 Apr 2014 12:03 PM PDT

Vancouver, B.C. – Bear Creek Mining (TSX Venture: BCM) (“Bear Creek” or the “Company”) is pleased to provide updates on its exploration programs in Peru. The Company maintains a cost effective generative exploration program alongside its primary focus of advancing the development of the Corani and Santa Ana silver deposits. The three projects described in this update range from an advanced Phase III drilling program at the La Yegua copper prospect to promising new results from our Maria Jose gold project.

Andrew Swarthout, President and CEO of Bear Creek, states “Bear Creek has a strong discovery history leading to value creation for shareholders and is fortunate to have the funding, experience and expertise to continue to explore for new discoveries during a time of great opportunity in the industry when exploration costs have come down and competition for good prospects has lessened substantially.”

Maria Jose Prospect - Maria Jose is located in the Department of Ancash, 140 kms NNW of Lima. The project is comprised of Cretaceous to Paleocene intrusives of the Coastal Batholith hosting a system of east-west to northeast trending, 45° to steeply north dipping, mesothermal quartz veins and shear zones containing high-grade gold grade – silver values. At surface, the five main east-west veins can be traced for a cumulative strike length of approximately 3 kilometers; however, shallow cover is prevalent in the district and the possibility of much longer strike lengths are being investigated by shallow trenching and sampling. The observed veins range in thickness from 0.20 meters to 4.5 meters with average true widths of approximately 1 meter.

Highlights of Maria Jose include:

  • Vein intersections reach up to 4.5 meters with an average grade of 27.2 g/t gold;
  • Systematic channel sampling performed on the Mari vein exposed 158 meters of strike with an average grade of 19 g/t gold over a true average width of 0.84 meters. The channel samples establish vertical continuity of gold mineralization over at least 220 meters; and
  • Total veins length is approximately 3 km and extend under thin post-mineral cover.

Initial mapping and channel sampling (16 samples) of several veins yielded values ranging from 2.2 g/t to 233 g/t gold in the east-west trending vein system and from 4 g/t to 22 g/t gold in the northeast system over widths from 0.2 meters to 0.4 meters (see news release dated March 18, 2013). The full widths are being exposed and channel sampled in the ongoing field program.

Based upon preliminary field work to date, the mesothermal veins are consistently gold bearing and are indicated to have vertical continuity for at least 300 meters as evidenced by prospect pits and scattered outcrops separated by thin soil cover.

The field program commenced in second quarter of 2013 and included mapping and trenching in preparation for Phase I drilling and an underground exploration tunnel (50 m) anticipated to commence in mid-2014 pending the outcome of environmental permits. The goal of this program is to demonstrate the economic potential through drilling and underground exploration targeting the veins for grade continuity laterally and at depths up to 300 meters.

Under the option agreement with a private Peruvian third party, Bear Creek Mining may acquire 100% of Maria Jose (3,500 hectares) by making escalating payments totaling US$4 million over 4 years. The initial option payment of US$372,000 was paid on February 27, 2013 and the second payment of US$310,000 is due 18 months after; however, the second payment is contingent upon receiving necessary community agreements and permit approvals. Therefore, the Company has sufficient time to complete additional field work and initial drill testing to define the potential in advance of larger, balloon payments. An additional payment of US$2.6 million must be made if the deposit contains greater than 1 million ounces gold in resources as defined by a NI 43-101 technical report. There are no royalty provisions under the agreement.

La Yegua copper-gold-molybdenum project - The La Yegua copper-gold-molybdenum prospect is located in central Peru approximately 20 kilometers northeast of the Los Chancas copper-gold-molybdenum deposit in a prolific porphyry copper belt also containing the Las Bambas, Huaquira, Constancia, Tintaya and Antapaccay deposits.

In October 2010, Bear Creek entered into a joint venture agreement with Japan Oil, Gas and Metals National Corporation (“JOGMEC”) to advance the La Yegua Project to phase II drilling. The agreement provides for JOGMEC to earn a 51% interest through investing US$3 million over a three year period. JOGMEC has met its earn-in expenditures for acquisition of a 51% interest in the project. The Company will evaluate the current results in order to determine if Bear Creek will contribute its share of exploration expenditures in order to maintain its 49% interest. Alternatively, the Company can elect to dilute its interest until reaching 10%, at which time the Company’s interest will revert to a 1.0% NSR.

Phase II drill holes totaling 759 meters (three holes) were drilled at La Yegua from September 2011 through December 2011, where intercepts of up to 0.2% to 0.3% copper were encountered over intervals of up to 20 meters. The joint venture also completed additional geophysics in early 2011 that identified two high-chargeability anomalies defined by Induced Polarization/Resistivity (“IP”) surveys.

Phase III drilling commenced on May 22, 2013, and included 1,183 meters of drilling in three holes. This program tested part of the aforementioned two geophysical anomalies contacts, and returned values up to 0.3% copper over 150 meters. Recently, in February 2014, the Joint Venture finished a drilling campaign comprised of an additional three holes. The final drill hole intersected the best drill interval at the project (260 meters with 0.29% Cu and 45 ppm Mo) on the borders of a strong geophysical IP anomaly which remains untested and extends for 1.4 km x 600 m. Geological studies both inside and outside the main target / IP area will continue in order to identify additional possible drilling targets. Drilling will likely be reinitiated during 2014 depending upon obtaining required environmental permits.

Sumi copper-gold project - The Company acquired a 100% interest in the Sumi copper-gold prospect by staking in 2011. Sumi is comprised of 1,200 hectares located in the gold-silver tertiary-age epithermal belt in central Peru. The prospect exhibits alteration and mineralization typical of a volcanic-sediment hosted, high and low-sulfidation precious metals system with a copper-gold porphyry potential source. To date, 111 surface rock chip samples have been collected at Sumi. Assay results for the 111 samples have returned precious metal values including 15.65 g/t gold and 156 g/t silver in a vein-breccia structure over widths of 0.3 to 2.0 meters and 12.1 g/t gold and 102 g/t silver over 2 meter widths in a silicified volcano-sedimentary rock. Based upon favorable surface mapping and geochemical sampling, a phase I drilling program was performed in the fourth quarter of 2012 consisting of five diamond drill holes totaling 1,105.3 meters (see the Company’s news release dated March 13, 2013). Highlights of the results are:

  • Drill hole SU-5 returns 17 meters averaging 3.6 g/t Au and 3.2 g/t Ag from 50.65 to 68 meters depth;
  • Drill hole SU-2 returns 50 meters averaging 0.98 g/t Au and 5.1 g/t Ag from 124 to 174 meters depth;
  • Drill hole SU-1 returns 10 meters averaging 4.4 g/t Au from 69.9 to 80 meters depth; and
  • Three cyanide extraction bottle roll tests on drill core ground to 85% passing minus 200 mesh averaged 86.6% gold recovery; two tests on higher sulfide content samples yielded less than 40% recoveries.

In March 2014, Bear Creek entered into a joint venture agreement with Japan Oil, Gas and Metals National Corporation (“JOGMEC”) to advance phase II drilling to test additional blind vein-breccia targets plus a possible buried Cu porphyry source underlying the large epithermal mineralization footprint exposed at the surface. The agreement provides for JOGMEC to earn a 51% interest through investing US$2.5 million over a three year period. After March 2017, Bear Creek can elect to maintain its 49% interest or to dilute until reaching 10%, at which time the Company’s interest will revert to a 1.0% NSR.

Carito Gold prospect - In March 2014, Bear Creek completed a drilling campaign at its Carito gold project (6 holes / 1,428 m total). Drilling encountered low gold grades in several meters but due to surface enrichment and the low gold values encountered, Bear Creek has elected to not spend any additional money on the project and will seek a joint venture partner or terminate its option agreement.

Consistent with the Company’s aggressive generative exploration philosophy, several additional prospects in the portfolio are being evaluated for future drilling or acquisition.

View La Yegua Drill Results in PDF Format

Neither the TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in the policies of the TSX Ventrue Exchange) accepts responsibility for the adequacy or accuracy of this release.

- End -

Andrew Swarthout – CEO, or Lisa May – Investor Relations
Phone: 604-685-6269 Direct: 604-628-1111
E-mail: info@bearcreekmining.com
For further information, please visit the Company’s website (www.bearcreekmining.com)

The post Bear Creek Provides Update on Exploration Programs appeared first on The Daily Gold.

Vacation Home Sales Soaring While First Home Sales Collapse into Abyss

Posted: 08 Apr 2014 11:15 AM PDT

Vacation Home Sales Soaring While First Home Sales Collapse into Abyss

In a further demonstration of the socially destructive and ever widening gap between the haves and have nots, we see that the affluent are buying second homes at an ever increasing clip (up 30% last year), while first home buyers recede into the abyss as private equity and Chinese buyers make purchasing a home unaffordable for the average American. Specifically, [...]

The post Vacation Home Sales Soaring While First Home Sales Collapse into Abyss appeared first on Silver Doctors.

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10 Questions About Gold Investing In 2014

Posted: 08 Apr 2014 10:56 AM PDT

In this article, author Gary Christenson provides answers on ten very common questions about investing in precious metals (gold in particular) in 2014. With the gold price 40% off its peak, 2.5 years in a declining pattern on the chart, there are a lot of questions about the true value of gold investing. The answers, though, could be surprisingly simple, at least for those who are willing to see in an unbiased way.

"Gold has been going down since August of 2011.  It is clearly in a bear market, so why tell me it will go up?"

Yes, gold has fallen about 40% from its high but why assume that means it will continue falling?  It looks to me like a 40% correction in a long term bull market.

"I bought gold near the high in 2011 and I'm tired of waiting for it to go up!  I should have bought the S&P instead and I'd be far better off.”

As of today, you are correct.  Timing is important!  Buying near the top in any market usually means losses or long waits.  But the relevant question is not what you should have done back then, but what will you do now?  Wait, throw in the towel, buy high and sell low, or what?  Financial TV will encourage you to buy stocks, as they always do.  Maybe you should, but I encourage you to give our bankers and governments time to create another crisis which will almost certainly increase the price of gold more than the S&P.

"I see nothing but trouble in the financial and political world.  I see potential war in the Middle-East, in the Ukraine, in the South China Sea, and maybe elsewhere.  I see morons in high places doing silly things.  I see bankers printing their currencies to excess, as in uncharted territory excess, and I can't see how this will end well for anyone, even the upper 1% of the political and financial elite.  I want to buy gold and hunker down but I also know that gold prices are manipulated, controlled, and capped, so why should I buy gold?"

I think it is important to remember that the powers-that-be (PTB) have been mismanaging the world for a long time, we are still here, the sun still shines, and gold has retained its value for several millennia.  If the manipulation were overwhelmingly powerful, why is gold selling for about $1,300 instead of $300 like it was 12 years ago?  The answer is, in my opinion, that the PTB know the dollar is going down and gold is going up, probably a long way up, but the PTB want to manage the dollar's devaluation, not let the devaluation get out of hand, and they need to keep the game of financial musical chairs playing while they "get theirs."  Buy gold and ignore the daily, weekly, and monthly shenanigans in the markets.

"If gold were in a bull market, it would be going up but gold is clearly going down, so why do you think gold is in a bull market?"

I probably can't convince you, but these are the facts as I see them.

1) Gold was selling for about $42 in 1971 when the national debt was about $398 Billion, not the $17.5 Trillion ($17,500 Billion) it is now.  Gasoline was selling for about $0.36 per gallon and most prices for food, energy, housing, and automobiles were similarly inexpensive compared to today.  That looks like a long term bull market in quantity of debt, and a bull market in the prices for food, energy, and gold.  It looks like a bear market in the value of the dollar and most other paper currencies.  Be happy you don't have your life savings in Argentinian Pesos.

2) All markets correct.  The NASDAQ 100 dropped from about 1,480 in July of 1998 to about 1,060 in three months.  However, by early 2000 it had surged to over 4,800.  Crude oil prices, T-Bonds, the S&P, and most markets rally, fall, and rally again.  Gold will rally and then correct again, and again.

3) Gold in 1980 was in a bubble as was the NASDAQ in 2000.  The charts, ratios, and timing for gold currently look like a correction, not the aftermath of a bubble.

4) The Federal Reserve and most central banks are monetizing debt, or as it is often called, "printing money."  Do you think they are doing this because our economies, which are drowning in debt, are healthy?  Do you think this won't result in some nasty inflation?  When people realize that central banks and governments are NOT supporting their currencies, they will buy even more gold and hard assets as they see their savings being trashed by the "printing" and the inevitable inflation.

5) Do you think printing many $Trillions to support failing banks and bad derivatives is a signal that "all is well," or a sign of desperation?  Central banker desperation supports gold prices.

"Why are you always harping on gold?  I shorted the NASDAQ in early 2000, covered a few points off the bottom, sold my house at the peak in 2006, and bought stocks in early 2009.  I'm probably far better off than you broken-record gold bugs.  Get a life and find a new topic to rant about."

Good for you!  Very few people were that successful and timed the markets that well.  Regardless, gold is undervalued now, unlike in August of 2011, and is a good buy in my opinion.  Maybe you can do better in selected bio-tech stocks, but gold has no counter-party risk, a long history as real money, and is insurance against failing monetary systems and political uncertainty.  Will bio-tech stocks protect you from banker fraud, bail-ins, currency devaluations and inflation?

You doom and gloom types have been wrong for years.  The S&P is at an all-time high, gold is off 40%, silver is down nearly 60%, and the Fed will support the stock market with a Greenspan/Bernanke/Yellen "put."  Why are you still talking about gold and silver when stocks are clearly the place to be?"

You might be correct, but what I see is a QE supported stock market that is over-bought on a daily, weekly and monthly basis and ripe for a correction.  Maybe it will and maybe it won't.  I also see gold off nearly 40% and silver off nearly 60% from their highs and ready to rally.  I see irresponsible political, economic, and monetary policies creating more debt, "printing money," increasing deficits and "kicking the can" into a very dicey future that might include a derivative crash, depression or world war.  Do you trust world leaders to play nice and do what is good for their people, or to do what is good for the upper 0.1% that run the show?  Righto!  That's why the stock market might go up a little more but gold and silver will double or triple in several years.

"I think silver is a better value than gold.  I think gold is going up and silver is going up even more.  I'm selling my gold and buying silver.  What do you think of that plan?"

I think, as of today, silver will appreciate much more than gold and so you are probably correct.  But things change and I like the safety and security of gold also.  Balance is good.

"China is buying all the gold they can find and the western central banks and governments are selling.  Is this wise for the western world?"

It is certainly wise for China.  In my opinion it might be sensible in the short term if you are a western central banker or a European or American government leader afraid of a currency crash.  It is certainly not a good idea for the western world in the long term.  Selling western gold seems like eating our seed corn.  We might not starve today, but our future will become increasingly bleak.  Good luck to the western world!  We will need it and more.

"I'm putting my trust in God and my money in 3 month Treasuries.  I think you should also.  Go ahead, admit it, you are a bit jealous."

I'll pass on the Treasuries.  I'm not jealous.  I put my faith and trust in God and Gold.  It works for many people.

"I think aliens are to blame for all the ills in the world today.  What do you think?"

I think not.

 

For more academic and enlightening analysis, you might find value in:

Nick Giambruno           "Timing the Collapse"

Alasdair Macleod:        "Renewed estimates of Chinese gold demand"

Bill Bonner:                   "Civilization Will Not Survive"

 

 

GE Christenson

The Deviant Investor

Silver Price Forecast 2014: Monetary Collapse and Silver’s Not So Orderly Rise

Posted: 08 Apr 2014 10:39 AM PDT

Silver Price Forecast 2014: Monetary Collapse and Silver’s Not So Orderly Rise We are about to see the end of our current international monetary system. Based on much of the evidence that I have written about previously, this appears to be a certainty. The systematic build-up of this current monetary order went together with the […]

Stay Hedged with Precious Metals against Geopolitical Tensions and Monetary Policies

Posted: 08 Apr 2014 10:35 AM PDT

It has been slightly more than two weeks since the price of gold soared to over $1380 an ounce on due to tensions between the US, Europe and Russia over Crimea. As to be expected the event did not escalate into a major global war and so much of the safe haven buying has dissipated for now. But, the problems in the Ukraine, both financial and social are far from resolved.

On Monday, gold saw some new safe-haven as concerns that tensions in Ukraine may escalate after Ukraine sent additional police forces into its eastern regions to quell pro-Russian protesters who seized government buildings in Donetsk, Luhansk and Kharkiv this week.

The Ukrainian government sent security forces to Kharkiv to clear the country's second-biggest city of separatists as Russia traded accusations with the U.S. and warned that its neighbour's crackdown risks sparking civil war.

The pro-Russian protesters demanded a referendum on seceding from Ukraine, state-run Rossiya 24 television reported. The mayor of Kharkiv confirmed reports that several dozen other demonstrators seized the regional television transmission mast and demanded that more Russian channels be broadcast, according to Interfax.

The regional government building in Kharkiv was freed of separatists today, with 70 people detained, according to Avakov. The country's National Guard and irregular forces of Pravyi Sektor, an umbrella organization that unites nationalist groups, were gathering in southern and eastern Ukraine, the Russian Foreign Ministry said.

Last week, gold traders were focused mainly of the latest non-farm payroll report from the US as well as the actions of the European Central Bank (ECB).

On Friday, gold prices rebounded after the release of the latest US non-farm payroll report, and after a string of lower prices seen in previous sessions.

According to the U.S. Labour Department, 192,000 new jobs were created in March after a gain of 197,000 in February. The unemployment rate was unchanged at 6.7%. Economists polled by Reuters had expected employment to increase 200,000 last month and the unemployment rate to dip to 6.6 percent.

In the last few sessions the price of the yellow metal found some solid support at around the $1280 an ounce level even as traders on Comex tried to push prices lower. In the wake of the report the price of spot gold rallied strongly and moved upwards by $15.50 an ounce to close out the week at $1302.30 an ounce.

Gold traders mulling the latest data released by the US Labour Department believe that the weaker-than-expected job numbers may force the Federal Open Market Committee to curtail tapering of quantitative easing.

On Monday, Federal Reserve chief Janet Yellen, in her first public address since becoming Fed chair two months ago, said that she was totally committed to the U.S. central bank’s easy-money policies.

Since the 2008 financial collapse, the Fed has effectively printed more than $3 trillion. It has kept interest rates near zero for more than five years, and this month said it will keep them there for a considerable time even after it ends its bond-buying program, which is to be wound down later this year.

In her speech to some 1,100 people at a downtown convention centre, Yellen said the “recovery still feels like a recession to many Americans, and it also looks that way in some economic statistics.”

She said “considerable” slack still exists in the job market and said further monetary stimulus could be effective.

“I think this extraordinary commitment is still needed and will be for some time, and I believe that view is widely shared by my fellow policymakers,” Yellen said.

Meanwhile, even if the Fed continues tapering its bond-buying stimulus program, other central banks around the world are pumping out cheap money. Japan is going to continue with its unprecedented monetary stimulus programme and now that the European Central Bank is under new deflationary pressures, it is likely to continue its monetary stimulus.

Inflation in the Eurozone hit its lowest level since November 2009 in March raising expectations the European Central Bank will take radical action to stop the threat of deflation in the currency bloc.  Inflation has been in the ECB’s 'danger zone" of below 1% for six consecutive months.

Prices have been falling at a pace of 6.5% in Greece, 5.6% in Italy, 4.7% in Portugal, 3% in Slovenia and nearly 2% in Holland since September, based on annualised estimates of Eurostat monthly data. The rise of the euro against the dollar, yen, Yuan and the currencies of Brazil,  Turkey and developing Asia, account for some of this imported deflation.

Last week the European Central Bank (ECB) decided to keep the key interest rate at its record low of 0.25%, but Draghi signalled that it may be further lowered if inflation does not increase over the next months.

At a press conference last Thursday, (ECB) chief, Mario Draghi said that over the next months the central bank will consider various options of ‘quantitative easing’ to counter a very low inflation rate

Quantitative easing, popularly known as money printing, is the purchase of financial assets from banks to increase the amount of money in circulation when there is a risk of deflation.

Draghi said there is still no risk of deflation, but stressed that the ECB was willing to act to counter low inflation, too, not just deflation.

He also refused to give details of how the quantitative easing would work, saying just that “the ECB will work on different options, to see which would be the most efficient”.

Meanwhile, the Bank of Japan (BoJ) maintained record easing, as an April sales-tax hike threatens to trigger the deepest one-quarter contraction since the March 2011 earthquake.

The BOJ kept a pledge to expand the monetary base at a pace of 60 trillion to 70 trillion yen ($677 billion) per year.

"We will adjust policy without hesitation if achieving 2% inflation becomes problematic or if smooth progress isn't made toward the goal," Kuroda told reporters after the decision.

Kuroda said he saw no need to change policy now, saying a positive economic cycle is continuing and growth will exceed potential even though it will rise and fall due to the tax increase. Downside risks in the global economy have been falling since last year, he said.

Prime Minister Shinzo Abe is raising the sales levy to 8% in April from 5%, as he tries to rein in a debt load that the International Monetary Fund projects will be equal to 242% of the economy by the end of the year.

Governor Haruhiko Kuroda is predicted to face the biggest obstacle yet to his bid to generate 2% inflation as the first sales levy increase in 17 years squeezes households and businesses.

The economy is forecast to shrink 3.9% in the three months from April, according to a Bloomberg poll of economists, ending a projected six straight quarters of growth.

According to Bloomberg Japan's biggest bullion retailer, Tanaka Kikinzoku has reported a fivefold increase in gold demand, in the first 27 days of March. Bloomberg reports, 'sales for the quarter through March 27 were 249% higher than the same in three months in 2013.' Not only has the impending tax rise spurred sales, but so has the decline in the gold price.

On Monday, the executive chairman of the Dubai Multi Commodities Centre, Ahmed bin Sulayem, speaking at the opening of the annua Dubai Precious Metals Conference, said that Dubai has become the biggest transit city for gold in the world last year with around 40% of the global physical gold trade passing through the city at 2,250 tons.

'The Ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum set us a target of 50 per cent when the DMCC started in 2002 and we are still a little short,' he said. 'Gold worth a total of $75 billion was moved through Dubai in 2013.'

As the central banks of the world in particular the US, Japan and Europe, continue with their expansionary monetary policies, the race to the bottom in fiat currencies is not yet over.

As the US Federal Reserve continues to prop up insolvent banks and buy US Treasuries, over time, they will not be able to end these ever-expanding programs. In Europe, the equivalent is the sovereign debt now found on the European Central Bank (ECB) balance sheet.  And, if we include Japans ultra-aggressive policy of doubling the monetary base in just two years, I believe that this unprecedented monetary experiment will end in disaster.

I have long advocated that individuals should own physical bullion as a protection against the monetary recklessness of these bankers. This creation of money out of thin air and the application of more liquidity than the productive economy actually needs has caused the purchasing power of these fiat currencies to evaporate. Stay hedged with precious metals.

Gold chart

gold price 7 april 2014 investing

Gold prices have broken back above the $1300/oz. level and the 200 day MA. Prices look set to trade with an upward bias in the short-term.

ADRs A Better Hedge Than Gold?

Posted: 08 Apr 2014 10:25 AM PDT

Buying Gold as Insurance?

Insurance against what? Insurance against a market sell off? Insurance against inflation or the end of the world? If you are holding 10% of your portfolio in Gold or the (GLD) as insurance, you really ought to have an answer to these questions. In decades past Gold was seen as a safe haven. A store of wealth that is unaffected in times of recession, currency devaluation or some other mythical nightmare scenario. I no longer believe this tried and true philosophy is entirely accurate. I also believe that the idea of taking a loss as insurance is also folly.

So why is the philosophy no longer accurate? I believe that the nature of gold itself has changed. It is still a base metal and a member of the periodic table; that is not what I mean. I guess I meant that its value to us has

SRSRocco Reveals The Grand Deception In the Precious Metals Industry

Posted: 08 Apr 2014 10:00 AM PDT

SRSRocco Reveals The Grand Deception In the Precious Metals Industry

Many precious metals investors are being deceived and they don't even know it. There is so much fraud, manipulation and deceit taking place in the economic and financial markets, its amazing the system hasn't collapsed already. However, there is another big problem taking place in the precious metal industry that has frustrated me to no [...]

The post SRSRocco Reveals The Grand Deception In the Precious Metals Industry appeared first on Silver Doctors.

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Today's Bizarro Land Markets

Posted: 08 Apr 2014 09:45 AM PDT

I wanted to take a bit of time and give you an example of what we commodity traders are now having to deal with as a result of the unprecedented ( and getting worse by the day ) volatility in our modern commodity markets. When hedge fund computers are doing the buying and selling instead of thinking human beings who actually take some time to analyze a trade before placing it, this is what we get.

Here are two of the headlines from the Dow Jones Wire Feed on the same day ( today ).

Get ready - here is the first:
Tue Apr 08 09:18:55 2014 EDT 
Here is the second:

Tue Apr 08 11:24:29 2014 EDT
The first story came down around 9:18 EDT. The second one at 11:24 EDT, about two hours later. As you can see, the first one attributes the fall in corn prices to warmer, drier weather. The second one attributes the rise to weather delaying field work.

Down, then up. Tomorrow? Maybe up and then down. When some readers take me to task for pointing out the fallacies in the GIAMATT Crowd, this is what I am referring to. Computers are running our markets of today - not discretionary human beings. The result is maddening, more often than not, completely unpredictable swings in price that can have little, if any, connection with underlying fundamental realities. The reason they do not is because at one time fundamentalists dominated our markets. Not any more! We have been completely taken over by the systems trader. These guys would not know a butt cut from a hog from a belly cut and they do not care. All they care about is motion - if it moves they chase it.

The end result of all of this computerized idiocy is extreme volatility and both big spikes higher in price as well as sharp drops lower in price. It all depends on what the computers are doing at any given time and what those mindless black boxes happen to be looking at for that particular moment.

Quite frankly, a "long-term" trade has now morphed into a 60 minute time interval. Once upon a time, "long term" meant something significantly different.

This is the reason I tell traders to be careful about reading too much into the day to day gyrations in the markets anymore and not to load the boat as far too many in the gold community are prone to do after reading some bullish prediction after a day or two of upward price movement in the gold market.

If one cannot even get the same headline within two hours time, how in the world do some of these self-appointed and egotistical "experts" predict that the gold price "must go to this price" (apparently because they have commanded it to do so). The FORCE must be strong with them. It could be that but I would wager it is more a case of hubris and clever marketing to peddle their worthless newsletters that take advantage of unsuspecting novices who find themselves completely mystified by the baffling swings in price in far too many of our markets.

Human beings love clarity and seek certainty. That makes them easy dupes/victims to those who seem to possess it. All I can say is that it takes a conscienceless Cretan to bilk sincere but gullible investors out of their hard-earned money as they promise absolute certainty in an environment in which such is not possible, nor shall it ever be.

Alasdair Macleod’s Renewed Estimates of Chinese Gold Demand

Posted: 08 Apr 2014 08:30 AM PDT

Alasdair Macleod's Renewed Estimates of Chinese Gold Demand

I have been revisiting estimates of the quantities of gold being absorbed by China, and yet again I have had to revise them upwards. Analysis of the detail discovered in historic information in the context of China’s gold strategy has allowed me for the first time to make reasonable estimates of vaulted gold, comprised of [...]

The post Alasdair Macleod’s Renewed Estimates of Chinese Gold Demand appeared first on Silver Doctors.

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  2. Alasdair Macleod Dissects China's gold demand
  3. Gold & Silver extend their rallies amid escalating Chinese demand for gold

Supercar-maker Tesla just reported great news... and millions of investors could lose their shirts

Posted: 08 Apr 2014 08:00 AM PDT

One of the biggest mistakes investors make is buying the news. They read The Wall Street Journal and get excited about a new widget. They start plowing money in… then Wall Street pulls the rug out.

If only they knew they were being bamboozled.

Smart investors buy the rumor and sell the news. Porter Stansberry knows this, and his latest investment is a great example.

When a car company made headlines investing billions in a battery factory he knew it was hitting a high... right when the average Joe was going all in.

In this clip, Porter discusses this move, and how to use the media to your advantage.

 

Share

 

Crux note: To get Porter's best advice for FREE, subscribe to Stansberry Radio. To find out more, click here.

 

More from Porter:

Porter Stansberry: A shocking secret about Warren Buffett and the End of America

Porter Stansberry: Do this one thing and it's nearly impossible to lose money in stocks

Porter Stansberry: What you should know about Bitcoin and gold

Final Bubble Phase for the Stock Market: Final Capitulation for Gold

Posted: 08 Apr 2014 07:31 AM PDT

Gold Scents

Russia warns Ukraine: Civil war is coming

Posted: 08 Apr 2014 07:26 AM PDT

From Bloomberg:

Ukrainian authorities sent security forces to Kharkiv to clear the country's second-biggest city of separatists as Russia traded accusations with the U.S. and warned that its neighbor's crackdown risks sparking civil war.

An "anti-terrorist operation" is under way in Kharkiv, 40 kilometers (25 miles) from the Russian border, with the subway closed and the downtown area sealed off, Interior Minister Arsen Avakov said today. Russia's Foreign Ministry said 150 specialists from a U.S. private security company, Greystone, are involved in putting down protests. Ukraine countered that most of those behind the unrest are Russian and denied U.S. advisers are involved.

"We call for the immediate halt of all military preparations, which risk sparking a civil war," the ministry in Moscow said in a statement on its website.

Russia and the U.S. are on a collision course after tensions flared in Ukraine over the weekend and diplomatic efforts to resolve the crisis faltered. The U.S. threw its weight yesterday behind the contention of Ukrainian officials that some pro-Russian separatists who seized administration buildings in the cities of Luhansk and Donetsk were paid provocateurs brought in from outside.

Russians Deported

"We do have proof and we've already deported a number of Russians who've been in eastern Ukraine provoking the situation and violating Ukrainian laws," Ukrainian Foreign Minister Andriy Deshchytsia said in a Bloomberg Television interview. "The Ukrainian government has enough power and authority to control the situation."

Deshchytsia said any suggestion Greystone is playing a role in the crackdown is "just Russian propaganda." Greystone didn't immediately respond to an e-mailed request for comment.

The unrest has prompted investors to sell Russian and Ukrainian assets. The Finance Ministry in Moscow canceled tomorrow's ruble-bond auction after yields jumped the most in three weeks yesterday. The benchmark Micex share index was little changed, though it has slid 6.6 percent since President Vladimir Putin's intervention in Crimea on March 1.

Ukrainian sovereign notes maturing June 4 fell to 96.62 cents on the dollar, the lowest since March 24. The hryvnia dropped 0.7 percent to 11.7850 per dollar.

Russian companies should consider delisting their shares from foreign stock exchanges and switching trading to Moscow amid the standoff, First Deputy Prime Minister Igor Shuvalov told reporters after a government meeting near Moscow. "This is a question of economic security," he said.

'Russian Strategy'

Current events bear "the hallmarks of a Russian strategy to destabilize Ukraine," U.K. Foreign Secretary William Hague told Parliament in London. "It would be consistent with Russia's strategy and behavior over recent weeks to try to damage the credibility" of elections scheduled for May as well as "to make it more difficult for Ukraine to operate as a democratic state."

The pro-Russian protesters demanded a referendum on seceding from Ukraine, state-run Rossiya 24 television reported. The mayor of Kharkiv confirmed reports that several dozen other demonstrators seized a TV transmitter and demanded more Russian channels be broadcast, according to the Interfax news service.

The regional government building in Kharkiv was freed of separatists today, with 70 people detained, according to Avakov. None of them are Russian citizens, he said. Eight people asked for medical assistance after clashes last night, the city administration said on its website.

Crimea Precedent

The demonstrations have resembled the actions of pro-Russian protesters who seized Crimea's assembly and paved the way for Russia to annex the peninsula last month. Putin says he has the right to defend Russian speakers in Ukraine from "fascists" after the ouster of President Viktor Yanukovych.

Russian speakers account for 44.3 percent in the Kharkiv region, 74.9 percent in the Donetsk region, and 68.8 percent in the Luhansk region, 2001 census data show.

U.S. and European officials are increasingly concerned that yesterday's disturbances, along with Russian economic and military pressure, signal the next phase of Putin's effort to make Ukraine a loose federation allied with Russia.

'Serious Escalation'

Any further Russian move into Ukraine "would be an historic mistake" and "a serious escalation," North Atlantic Treaty Organization Secretary General Anders Fogh Rasmussen said in Paris. "It's obvious that the evolving security situation in Ukraine makes it necessary to review our defense plans."

Russia has as many as 40,000 soldiers stationed along the frontier, according to the U.S. and NATO. Putin says they are conducting military exercises and will withdraw afterward.

Ukraine's national guard and irregular forces of Pravyi Sektor, which unites nationalist groups, are gathering in southern and eastern Ukraine, the Russian Foreign Ministry said.

An outright invasion of eastern Ukraine is unlikely in the run-up to the May presidential election, said Chris Weafer, a partner at Moscow-based Macro Advisory.

"Recent events look like a Cold War-type set-up filled with agents provocateurs," Weafer said by phone from London. "It seems like Russia's just needling Ukraine to see what they can get away with."

Lavrov, Kerry

U.S. Secretary of State John Kerry spoke to Russian Foreign Minister Sergei Lavrov yesterday to arrange talks among officials from Ukraine, the U.S., the EU, and Russia within 10 days to head off any escalation.

"The agenda and the precise timing of this meeting are currently being worked on," EU foreign-affairs spokeswoman Maja Kocijancic told reporters in Brussels today.

Russia is ready to examine a "multilateral format" for talks, Lavrov said in Moscow. The new Ukrainian government hasn't yet sent "any positive signals" to the southeast, he told reporters.

The U.S. and the EU imposed sanctions on Russian officials and associates of Putin in response to the annexation of Crimea. President Barack Obama has said the U.S. will target Russian industries, including energy and finance, if Russia moves deeper into Ukraine.

Ukrainian Prime Minister Arseniy Yatsenyuk said in televised remarks yesterday that Russia is trying to split his nation and turn part into "a territory of slavery under a Russian dictatorship." The Kharkiv protests were inspired and funded by Yanukovych and Putin, Avakov told reporters in Kiev today.

White House press secretary Jay Carney said yesterday there's "strong evidence" that demonstrators included paid outsiders. "That at least suggests that outside forces, not local forces, were participating in the effort to create these provocations," he said.

 

More on Russia and Ukraine:

Ukraine BOMBSHELL: Leaked conversation could set off a full-blown war

War! In Russia, it has already been declared...

MUST-SEE: The Crux sends "one of our own" into the heart of the Ukrainian crisis. This is what he's seeing now.

Boosting forex reserves: Pakistan refuses to sell $2.7b worth of gold says IMF

Posted: 08 Apr 2014 07:24 AM PDT

Pakistan has refused to sell gold worth $2.7 billion, citing national security reasons, as the International Monetary Fund (IMF) pushes Islamabad to convert the precious metal into cash to build foreign currency reserves, revealed the global lender's report on Friday...

Read

India Imports a Massive 462 Tons of Silver in January!

Posted: 08 Apr 2014 07:00 AM PDT

India Imports a Massive 462 Tons of Silver in January!

The DGCIS, India's customs department, has just released the trade numbers for January 2014. As we predicted, another result from the Indian restrictions in gold trade (besides a soaring Indian black market for gold) is that many Indians flocked to silver. 2013 Indian net silver imports broke all records at 6016 metric tonnes. The Indian [...]

The post India Imports a Massive 462 Tons of Silver in January! appeared first on Silver Doctors.

Check out these similar articles:
  1. Chinese Gold Imports Surpass 1,000 Tons for 2013!
  2. India Silver and Gold Imports Increase by 500% in May MoM
  3. India Imported 6125 Tonnes Of Silver In 2013, Up a Mind-Blowing 6560% YOY!

James Turk interview: Record-Breaking Gold Backwardation Shocking Banks & Shorts

Posted: 08 Apr 2014 07:00 AM PDT

Goldmoney

PUTIN SENDS THE WEST A GOLDEN MESSAGE: CENTRAL BANK OF RUSSIA CHANGES LOGO TO GOLDEN RUBLE

Posted: 08 Apr 2014 06:45 AM PDT

According to reports from Russian media, Putin appears to have sent the west a golden message in the aftermath of JPMorgan unilaterally deciding to block an official Russian wire transfer, as the Central Bank of Russia has introduced a new logo, which just happens to be a gold ruble.

Officials stated on the new logo: Golden Badge of the Russian national currency, officially adopted by the Central Bank of Russia, will symbolize a sign of stability and security of the ruble gold reserves of the country.

Click here for more on Putin’s Golden Message to the West:

Can't keep gold down

Posted: 08 Apr 2014 06:31 AM PDT

Gold bullion rose to a session high on safe haven demand due to renewed geopolitical tensions in Ukraine.

This is one of the biggest trends in the world. It's not too late to get in now.

Posted: 08 Apr 2014 06:00 AM PDT

From Frank Curzio, editor, Small Stock Specialist:

It's not too late to get into one of the biggest growth trends in the world.

In June 2012, I told you several of the top-selling drugs in America were about to go on sale because their patents were expiring.

A patent grants a company the right to exclude competitors from selling their product for 20 years. Once a patent expires, it opens up the door to new competition.

In other words, pharmaceutical giants like Merck, Pfizer, and GlaxoSmithKline were about to lose "exclusivity" on some of their top-selling drugs.

I said one industry that would be a huge beneficiary was generics.

Since my essay, many generic-drug companies are up big. But there are more gains to come...

----------Recommended Links----------

Have you heard of the ALPHA anomaly?

Porter calls it "The Single Greatest Investing Secret." But surprisingly, most finance professors will tell you this anomaly simply should not exist. Click here to watch Porter prove them wrong.

 

​ Ferris: "The best resource play I've EVER seen"

This company turned a $650,000 investment into $210 million (plus royalties). Now it's about to close a much bigger deal, increasing its revenue 10x. Read Dan Ferris' free analysis by clicking here.

---------------------------------------------

In June, I told you that once brand-name drugs come off patent, generics companies are allowed – by law – to make nearly identical products. Since these blockbuster drugs have already been developed and marketed over their 20-year history, generics companies don't have to incur research and development costs.

Lower costs allow generics companies to charge 60% less for brand-name drugs. This results in an immediate boost to these companies' revenues – and share prices.

In my essay, I recommended you buy generic-drug companies like Teva Pharmaceuticals (TEVA), Mylan (MYL), and Watson Pharmaceuticals (now called Actavis (ACT) after a merger in late 2012).

As you can see in the chart below, the average gain for these stocks since my essay is more than 120%. That's much higher than the S&P 500 Index, which gained 39% over the same time frame.

Despite these gains, you have not missed the boat on this trade.

According to health care consulting firm EvaluatePharma, $100 billion in drug sales will be in jeopardy by patent expirations in 2014 and 2015. This includes popular drugs like acid-reflux pill Nexium (made by AstraZeneca), cholesterol-lowering drug Vytorin (made by Merck), and anti-inflammatory Celebrex (made by Pfizer).

And $290 billion of sales are at risk from patent expirations through 2018. To put that in perspective, Big Pharma giants Merck, Pfizer, and GlaxoSmithKline only generated $138 billion in sales over the past 12 months.

If you own these giants, don't worry, they're still generating tons of cash flow. Plus, they are investing in new biotech drugs, buying back their stock, and raising their dividends.

But as you can see, the real growth in the pharma sector over the next few years will be in generic-drug companies. They can create nearly identical drugs to take the place of blockbuster drugs. And there are billions of dollars in revenue that could flow into these companies.

Turning to the fundamentals, Teva Pharmaceuticals, Mylan, and Actavis all trade at a discount to the S&P 500. That's insane given that generics companies will easily grow their earnings more than three times faster than the average company in the large-cap index.

My advice is to buy these names today. The sector is still dirt-cheap and earnings will soar over the next two years. That makes generics a no-brainer to outperform the market over the next 24 months.

 

More from Frank Curzio:

Frank Curzio: Stocks are headed even higher from here

Frank Curzio: These super-rare stocks can help you create a million-dollar portfolio

Small-cap expert: The market is making a major shift right now. This is what you need to know

UK Accounting “Radical Overhaul” Turns UK Into Nation Of Savers … Instantly

Posted: 08 Apr 2014 05:00 AM PDT

gold.ie

If you want to get rich, ditch your portfolio and start working on this immediately...

Posted: 08 Apr 2014 04:00 AM PDT

From Mark Ford, founder, The Palm Beach Letter:

On Monday morning, you get a message indicating there is a new balance in your PayPal account. You check and see that while you were at the beach over the weekend, more than $6,500 was deposited into your account.

On Tuesday, you receive a check from a client: $4,000, which is what he sends every month.

On Wednesday, you receive a statement from your brokerage account. It shows that you made an extra $475 the day before.

On Thursday, your spouse comes home with the cash she's collected from the little vending business you started together last year. She plops down $1,400 on the table.

Then on Friday, your property manager e-mails you to let you know that he collected last month's rents, and he's depositing $11,500 into your account.

"Not a bad week," you think, sitting by the side of your pool.

Of the many ways to build wealth, entrepreneurial equity (i.e., direct ownership of a start-up business) offers the greatest potential. This is how the richest of the rich – from Andrew Carnegie to Bill Gates – acquired their vast fortunes.

But today, I want to talk about the second-best way to create wealth – a way that in some ways is easier and more practical. It is also the primary way I developed my wealth.

I am talking about the strategy of developing multiple streams of income.

As I said, this isn't the way to create billions. Andrew Carnegie or Bill Gates made their vast fortunes by focusing on a single business.

If they were coaching, they might tell you that you would get richer by focusing on a single wealth-creating opportunity, as they did. And they would be right – if you were as smart and fortunate as they were.

But most readers aren't in a position to create billion-dollar businesses. They are too old, too committed, too busy, and/or too poor. At least, that's how they may feel.

And in any case, I can't tell you how to do that. I can tell you only what I know how to do. And I got rich by developing multiple streams of income.

If you are not ready to become the next Bill Gates, this essay is for you.

How I Got Rich

I never had any ambitions of becoming an entrepreneur. In fact, I never had any interest in business. The financial path I ended up on in life was more the result of temperament and accident than it was of design.

I have, as you may know, been involved with dozens of entrepreneurial businesses, but the wealth I acquired never came from selling any of these businesses. It came from the income these businesses generated and how I put that income to use.

I've been developing extra income flows for more than 25 years. I've tried dozens of things. More than half of them didn't pan out. But my method was always to start very small and test the waters quickly.

If it looked promising, I pushed the throttle. If it started badly, I pulled out quickly.

I recommend that you do the same thing. Find an opportunity that intrigues you. Give it a quick but smart try. If it works, run with it. If it doesn't, shut it down quickly and move on to income opportunity No. 2.

Using this strategy, I have developed the following fully functioning, nearly automatic cash streams today:

  1. My rental real estate portfolio.
  2. My international real estate portfolio.
  3. My income from dividend stocks.
  4. My income from bonds.
  5. My income from options.
  6. My income from my consulting work.
  7. My income from owning more than six profitable companies.

And this doesn't count my hard assets – the real estate, the art, the gold coins, etc. – that I have stashed away. They're something that grows "automatically," too, once you begin.

Last year, my total income from these automatic cash streams exceeded $6 million. I earned that without ever having to go into the office, without ever answering to a boss, and without ever doing anything I didn't want to do.

When I began – when I made up my mind to become wealthy – my yearly income was $35,000. I doubled it the first year. And then it climbed exponentially afterward.

The Advantage of Multiple Income Streams

It is, of course, much easier to end up with a multimillion-dollar income if you start in your early 30s, as I did. But even if you are older and have fewer than 10 years to generate the income you want, you can do it. But you must get started now.

We know from surveys that many Palm Beach Letter subscribers are not yet wealthy – or as wealthy as they'd like to be. The financial crisis in 2008 and 2009 devastated many of them.

Some are starting from scratch. Others have to delay their retirement plans 10-15 years.

They all want to know what to do to assure that they can retire comfortably without worry. The single best answer I can give them: Generate extra streams of income.

"Your problem isn't that you are getting only 0.5% on your bank account, 3.5% on your bonds, and 8% from your stocks. The problem is that you don't have enough cash!"

Stop and ask yourself if that is true for you.

What will change your financial life in a dramatic way? Getting an extra few percentage points on your current investments or bringing in thousands of extra dollars in cash every month?

I've said this many times in past essays, but it bears repeating now: You cannot reach financial independence through stock investing and options alone. You need to increase your income through different avenues and opportunities.

Crux note: If you want to generate a second or third stream of income you need a program. Mark and his team at The Palm Beach Letter have developed a system to generate extra income – without every quitting your day job. It's called the Wealth Builders Club… and by investing a small amount of time you –just like Mark - could build a million-dollar income stream. Learn more here.

 

More from Mark Ford:

There are many ways to build wealth. This one may surprise you.

If you had dinner with a multimillionaire, what advice would they give you?

Share this with anyone who thinks they're too broke or too old to save their financial future.

April Australian gold stock update

Posted: 08 Apr 2014 03:37 AM PDT

The gold bull is just taking a giant breather during a very long bull market. Here's where we go from here.

Precious metal prices jump on renewed tensions in Ukraine as US dollar and stocks fall back

Posted: 08 Apr 2014 02:55 AM PDT

Precious metal prices jumped by more than one per cent today after the Kremlin issued a warning to Ukraine after the seizure of government buildings in Donetsk, Luhansk and Kharkiv by pro-Russian protestors, the US dollar fell and stock futures trended lower.

The US has accused Russia of instigating the raids, amid increasing concern that Russian President Vladimir Putin plans to make Ukraine a loose federation or extend Russian territory further following the annexation of the Crimea. The US has said there is evidence that some protesters may be paid provocateurs, while the Russian side says 150 US mercenaries are being employed by the Ukraine.

Crimea Part II?

This sudden renewed geopolitical tension caught markets on the hop this morning. The Ukraine had dropped off TV screens and there is surprise and consternation that it is back so quickly. The paranoid fear a wider Russian plot to annex more territory despite the assurances of Russian president Vladimir Putin in his prepared statement on the future of the Crimea. But similar staged actions by Russian-backed paramilitaries preceded the annexation of Crimea last month.

Gold also gained from the weakening US dollar after the sell-off in US stocks resumed last night. There is mounting concern that the Fed’s tightening of monetary policy and QE wind down might be under threat if shares continue to fall. That would also mean an end to the threat of rising interest rates to gold and silver prices.

Precious metals tend to suffer in higher real interest rate environments as they do not pay a dividend and so become more expensive to hold. If the Fed’s unwinding of QE were to come unstuck then the highs of last year’s gold and silver prices could be quickly revisited.

Silver Institute releases The Element of Change video with Spanish subtitles

Posted: 08 Apr 2014 02:48 AM PDT

The video also depicts the wide variety of ways in which silver has become a significant component of so many of the consumer products we rely upon today, including silver̢۪s role in health and medicine as well as its importance as a trusted investment.

Lawrence Williams: Gold Manipulation—ex U.S. Treasury Top Gun Tells Us How and Why

Posted: 08 Apr 2014 02:38 AM PDT

"No one is going to lift a finger to stop them, or utter a word in protest"

¤ Yesterday In Gold & Silver

The gold price did little of anything up until noon Hong Kong time---and after that it quietly sold off to just under the $1,300 mark.  The two attempts to break back above that price got sold down almost immediately---and after the second sell-off that came just after the London close, gold traded flat for the remainder of the New York session.

The high and down price ticks aren't worth the trouble of looking up.

Gold closed the Monday session at $1,296.90 spot, down $5.40 from Friday's close.  Volume, net of April and May, was extremely light at 88,000 contracts.

Silver got sold off about 15 cents within the first 15 minutes of trading at the Sunday night open in New York.  The subsequent 'rally' latest until 10 a.m. Hong Kong time---and then it got sold down [unsteadily] to it's low of the day which came at the noon silver fix in London.  The subsequent rally got capped the moment that it hit the $20 spot price mark---shortly after the London close as well---and that was it for the day.

The high and low tick were reported by the CME Group as $20.015 and $19.775 in the May contract.

Silver finished the day at $19.865 spot, down 9 cents from Friday's close.  Net volume was fumes and vapours at 15,500 contracts.

Like gold and silver, platinum and palladium were under selling pressure for virtually the entire day, with most of the selling pressure really getting started around noon Hong Kong time.  Then platinum got hit for $20---and palladium got smoked for over 3% starting shortly after the London close---about the same time as gold and silver got sold down.  After the spikes down in their respective prices, they didn't recover much.

The dollar index closed on Friday at 80.43.  It traded pretty flat until around 12:30 p.m Hong Kong time---and then began to head south, hitting its 80.20 low just before 12 o'clock noon in New York.  After that it traded almost ruler flat into the close, finishing the Monday session at 80.22---down 21 basis points on the day.

The interesting thing to note is that virtually all of the major price declines in all four precious metals occurred between noon in Hong Kong and noon in New York yesterday.  It's a pretty safe call to say that there was absolutely no correlation between the dollar index and precious metal prices yesterday.

With the gold price, along with the general equity markets, both in the red yesterday, it was a bit of a surprise to see the gold stocks in the green.  Of course, once the gold price got smacked back below the $1,300 spot price mark after the London close, down went the gold stocks as well.  But, despite that, they continued to rally after that---and closed virtually unchanged---down 0.07%.

The silver shares followed a similar price/chart pattern, but Nick Laird's Intraday Silver Sentiment Index closed down a somewhat more substantial 1.18%.

The CME's Daily Delivery Report showed that 8 gold and 3 silver contracts were posted for delivery within the Comex-approved depositories tomorrow.  The Issuers and Stoppers Report isn't worth linking.

I note that there are about 1,300 gold contracts still open in the April delivery month, along with a tiny handful of silver contracts.

There were no reported changes in GLD yesterday---and as of 10:36 p.m. yesterday evening, there were no reported changes in SLV, either.

There was a decent sales report from the U.S. Mint yesterday.  They sold 1,500 troy ounces of gold eagles---3,000 one-ounce 24K gold buffaloes---and 659,500 silver eagles.

Over at the Comex-approved depositories on Friday, they reported receiving 37,779 troy ounces of gold, most of which went into the depositories over at HSBC USA.  Only 291 troy ounces were reported shipped out.  The link to that activity is here.

In silver, there was 498,354 troy ounces reported received---and all of it disappeared into the Delaware depository.  39,020 troy ounces shipped out.  The link to that action is here.

I have a decent number of stories for you today---and I'll leave the final edit up to you.

¤ Critical Reads

U.S. Consumer Borrowing up $16.5 Billion in February

Consumers increased their borrowing in February on autos and student loans by the largest amount in a year. But for a second straight month, they cut back on their credit card use.

Consumer borrowing climbed $16.5 billion in February, up from a $13.5 billion gain in January, the Federal Reserve reported Monday.

The category that includes credit cards fell $2.4 billion after a $241 million drop in January. But this decline was offset by an $18.9 billion increase in borrowing in the category that covers autos and student loans, the biggest one-month gain since February 2013.

The overall increase in consumer debt pushed total borrowing to a record $3.13 trillion.

This short AP story was picked up by the abcnews.go.com Internet site yesterday---and I thank West Virginia reader Elliot Simon for today's first story.

Citigroup to Pay $1.13B to Settle Investor Claims

Citigroup has agreed to pay $1.13 billion to settle claims by investors seeking that the lender buy back billions in residential mortgage-backed securities.

The New York-based investment bank said Monday that the pact it reached with 18 institutional investors calls for Citigroup to make a binding offer to the trustees of 68 Citi-sponsored trusts that bundled some $59.4 billion in home loans into securities from 2005 to 2008.

The settlement offer, which must be approved by the trustees and the court, would release Citi from having to buy back mortgages sold to the trusts.

But the lender would remain vulnerable to other types of investor claims, including misrepresentations in the offering documents associated with the securities. It could also face potential actions by regulators.

This is barely a licensing fee, dear reader.  This is another AP story posted at the abcnews.go.com Internet site yesterday---and it's the second offering in a row from Elliot Simon.

Fed gives banks extra time for compliance with Volcker Rule

The Federal Reserve granted a fresh concession to banks that are subject to the Volcker rule on Monday, giving them two more years to offload their holdings in collateralised loan obligations to comply with the measure.

The Volcker rule, aimed at banning proprietary trading, would have forced banks to divest their CLO investments, resulting in billions of dollars in losses.

This is the second extension that the banks have received---and it probably won't be the last---as the CLOs/CDOs are worthless.  At the moment they are "marked to fantasy"---but "mark to market" would sink the "too big to fail" banks immediately.  The above two paragraphs are all there is to this story that's posted in the clear.  The balance is contained on the Financial Times website.  I found this bit in a GATA release last evening.

Sprott's Thoughts: Some Kind of Financial Calamity is Inevitable: Jim Rickards

This very longish interview with Jim was conducted by Teko Da Silva over at Sprott Asset Management the other day.  Teko was mentioned by name in Jim's book, so I think Jim had more to say to him than most of the people who interviewed him.  Jim has been going out of his way during the last ten days to deny that the U.S. government had any involvement with 9/11---but he sort of got caught with his pants down on this subject in his interview with Max Keiser last week.

U.S. blasts Europe's plan for anti-snooping network as 'unfair advantage'

US officials on Friday slammed plans to construct an EU-centric communication system, designed to prevent emails and phone calls from being swept up by the NSA, warning that such a move is a violation of trade laws.

Calling Europe’s proposal to build its own integrated communication system “draconian,” the office of the US Trade Representative (USTR) said American tech companies, which are worth an estimated $8 trillion per year, would take a financial hit if Brussels gives the initiative the green light.

"Recent proposals from countries within the European Union to create a Europe-only electronic network (dubbed a 'Schengen cloud' by advocates) or to create national-only electronic networks could potentially lead to effective exclusion or discrimination against foreign service suppliers that are directly offering network services, or dependent on them," the USTR said in its annual report.

You couldn't make this stuff up.  This Russia Today story showed up on their website late on Friday morning Moscow time---and it's courtesy of South African reader B.V.  It's worth skimming.

Germany opens NSA spy probe amid calls to deliver Snowden to testify

Parliamentary hearings into the scandal involving NSA spying on Germany have started. Some members of the investigative committee have suggested bringing in the document leaker Edward Snowden himself to testify. Some expect this to anger Washington.

The Bundestag presented the evidence on Thursday, as German public anger over America’s blatant violations of German sovereignty vents steam. But some are already speculating what the result of the hearings will mean in practical terms, for German-US relations. And what political fallout will ensue by inviting Snowden to Berlin?

Fresh revelations regarding the NSA’s activities in Germany continue to pour in amid outcries from the German people. Der Spiegel magazine has published further Snowden leaks recently, among them the revelation that the Americans compiled a comprehensive dossier on Merkel, which included over 300 intelligence reports. Apparently, the NSA database contains information obtained during surveillance of over a hundred world leaders.

What’s more, the magazine detailed how British secret services also played a part in all this, by hacking into German internet companies.

This is another story from the Russia Today website during the lunch hour in Moscow on Friday---and it's the second contribution in a row from reader B.V.

Metadata monitoring more intrusive than eavesdropping - Snowden and Greenwald

Whistleblower Edward Snowden and journalist Glenn Greenwald joined forces via video link at an Amnesty International event in the US to speak to a packed hotel ballroom about the dangers of government metadata collection.

Both Snowden and Greenwald stated that governmental collection of metadata – that is, monitoring timings of calls, to whom calls were made, and how long they lasted – is much more intrusive than listening in on calls directly.

“Metadata is what allows an actual enumerated understanding, a precise record of all the private activities in all of our lives. It shows our associations, our political affiliations and our actual activities,” Snowden told the 1,000-strong crowd in Chicago.

Both Snowden and Greenwald received rounds of applause for their appearances, while Snowden’s ‘appearance’ prompted a standing ovation.

This is the third Russia Today commentary in a row from South African reader B.V.---and this one was posted on their website minutes before midnight on Sunday evening Moscow time.

'U.S. annexed the whole world through global spying' – Assange

The media has been overwhelmed by talk of Crimea joining Russia, but all are ignoring the fact that the 'Five Eyes' intelligence alliance, principally the US, has annexed the whole world through their spying, said WikiLeaks founder Julian Assange.

Speaking at the WHD.global conference on Wednesday, Assange – who has been living under asylum in Ecuador's embassy in London since 2012 – pointed out that there is a need for independent internet infrastructure for countries to maintain sovereignty to resist US control over the majority of communications. The annual conference is dedicated to global surveillance and privacy matters.

“To a degree this is a matter of national sovereignty. The news is all flush with talk about how Russia has annexed the Crimea, but the reality is, the Five Eyes intelligence alliance, principally the United States, have annexed the whole world as a result of annexing the computer systems and communications technology that is used to run the modern world,” Assange said.

This is another Russia Today story---and the fourth in a row from South African reader B.V.  This one was posted on their Internet site in the wee hours of Monday morning Moscow time.

McDonald's quits Crimea as fears of trade clash grow

McDonald's announced on Friday it had closed its restaurants in Crimea, prompting fears of a backlash as a prominent Moscow politician called for all the U.S. fast food chain's outlets in Russia to be shut.

Crimea's annexation by Russia, which Ukraine and the West do not acknowledge, has worried companies with assets in the Black Sea peninsula as it is unclear how the change may impact their business.

While McDonald's did not mention the political situation in its statement, its decision to leave the region is likely to be seen as emblematic of the rift in Western-Russian relations, now at their lowest ebb since the end of the Cold War.

"Due to operational reasons beyond our control, McDonald's has taken the decision to temporarily close our three restaurants in Simferopol, Sevastopol and Yalta," a spokeswoman said.

This Reuters story, filed from Kiev, appeared on their website on Friday afternoon EDT---and I thank Casey Research's own Nick Giambruno for sending it our way.

Crimea 2.0: Donetsk Activists Declare Kiev Independence, Request "Temporary Peacekeeping" Support From Putin

Less than a month after the Crimean referendum which pulled the region away from Ukraine and ceded it to Russia, another east Ukraine regional city, Donetsk, has just declared its independence from Kiev following the previously reported mini coup yesterday in which pro-Russia activists seized the government building in the city, as well as the other two regional capitals. Specifically, as RT reports, today at 12:20 local time, a session of the people's Council of Donbass (Donetsk region) took place in the main hall of the Regional Council and without the police (whose allegiance to Kiev also appears to be non-existent) intervening, unanimously voted on a declaration to form a new independent state: the People’s Republic of Donetsk.

Sure enough, promptly thereafter the Council of the new republic issued an address to Russian President Vladimir Putin, asking for deployment of a temporary peacekeeping force to the region. Just like Crimea.

And so another city pulls away from Ukraine and gives Russia the go ahead to create a toehold in East Ukraine, just according to Putin's plan.

I doubt very much that this will amount to much, but it's symptomatic of all the problems that overhang the Ukraine now that the Crimea has returned to Mother Russia from whence it came.  This Zero Hedge piece was posted on their Internet site early yesterday morning EDT---and it's a piece that Casey Research's own Bud Conrad passed around yesterday.

Searching for Deterrence: Ukraine Crisis Exposes Gaps Between Berlin and NATO

Once the Cold War ended, Western militaries reduced their focus on military deterrence in Europe. As a consequence, the Ukraine crisis has caught NATO flat-footed as it rushes to find an adequate response to Russia. Germany has been reluctant to go along.

Prior to the fall of communism and the disintegration of the Warsaw Pact, deterrence was based on the destructive potential of atomic weapons, hundreds of thousands of soldiers posted in Europe, heavy weaponry and tanks. The West German army alone had some 495,000 troops, 4,100 Leopard battle tanks and 600 warplanes. The soldiers were the core of an Allied defensive force defending the border between the two power blocks -- a frontier that ran right through Germany.

The alliance's cooperation with Russia -- which took years to build up -- has been on ice since last week. And Moscow is no longer seen as a partner, but as an adversary.

Already, preparations have begun for the next NATO summit of alliance heads of state and government in September. Thus far, there is only one item on the agenda: a new strategy for NATO. Berlin is skeptical. And concerned.

This article appeared on the German website spiegel.de<

U.S. warns China over currency depreciation

Posted: 08 Apr 2014 02:38 AM PDT

U.S. warns China over currency depreciation

The United States warned Beijing on Monday that the recent depreciation of the Chinese currency could raise "serious concerns" if it signaled a policy shift away from allowing market-determined exchange rates.
 

Washington has been pressing China for years to allow its currency to trade at stronger values. A weak yuan makes Chinese exports cheaper for U.S. consumers at the expense of U.S. producers. A weaker yuan also makes Chinese consumers less able to buy foreign goods.

Last month, U.S. Treasury Secretary Jack Lew welcomed a decision by China to allow its currency to vary more against the dollar in daily trading.

Monday's comments by a senior official from the Treasury Department suggested the United States was not completely sold on China's intention to reduce authorities' interventions in exchange markets.

This Reuters article, filed from Washington, was posted on the finance.yahoo.com Internet site late last night EDT---and it's another offering from Elliot Simon.

 

Nine King World News Blogs/Audio Interviews

Posted: 08 Apr 2014 02:38 AM PDT

Nine King World News Blogs/Audio Interviews

1. James Turk: "Record-Breaking Gold Backwardation, Shocking Banks...and Shorts"  2.  John Embry: "This is Horrifying For the West and Will Bring the U.S. to its Knees"  3. Michael Pento: "Coming Mega-Chaos to Dwarf the Terror of 2008 Collapse"  4. Egon von Greyerz: "Terrifying Worldwide Meltdown to Devastate the Entire Globe"  5. David P.: "Despite Pullback, Gold May Be Set For Remarkable 177% Surge "  6. Robert Fitzwilson: "Totally Corrupt West---and a Possible Kill Shot on the Dollar"  7.  Richard Russell: "Silver---and the Nastiest Stock Market in History"  8. The first audio interview is with Dr. Marc Faber---and the second audio interview is with Egon von Greyerz

[Please direct any questions or comments about what is said in these interviews by either Eric King or his guests, to them, and not to me. Thank you. - Ed]

Hedge Funds Get Gold Timing Wrong on Rebound: Commodities

Posted: 08 Apr 2014 02:38 AM PDT

Hedge Funds Get Gold Timing Wrong on Rebound: Commodities

Hedge funds and other speculators misjudged gold prices for a second time in three weeks.

Just after the investors sold bullion holdings for a second consecutive week, a disappointing U.S. jobs report sparked the biggest rally in prices since mid-March. Their funds fared better in the five preceding weeks, correctly adjusting wagers 80 percent of the time.

Investors who were anticipating gold’s 2014 rebound would fizzle had reason to be confident at the start of last week. As U.S. equities surged to a record, bullion slid to a seven-week low on April 1 as fewer traders saw the appeal of the haven asset. Three days later, the payrolls data drove shares lower and bullion prices 1.5 percent higher to $1,303.50 an ounce, the biggest gain since March 12.

This Bloomberg story, filed from Chicago, was posted on their website early yesterday afternoon Denver time---and as Elliot Simon said in his comments in his covering e-mail: "No they don't.  They're being played like a fiddle by JPM."  Elliot understands the situation perfectly---as do you, dear reader.  It's worth skimming.

Tocqueville's Hathaway says London probe could scare off investors

Posted: 08 Apr 2014 02:38 AM PDT

Tocqueville's Hathaway says London probe could scare off investors

Investigations into the London gold fix could scare institutional investors away from the metal, according the head of one of the world's largest investors in gold and precious metals mining shares.

"We as money managers in the space have been hurt more not by the price action but by the feeling among investors that [London pricing] is just too weird, too inexplicable," said John Hathaway, who oversees $2 billion in gold investments for Tocqueville Asset Management.

“Prices have to go up and down but if it’s a rigged game, then you’re not going to get big pension funds etc. getting involved. They’ll say, ‘Boy this thing is too spooky for us to invest in,’” Mr. Hathaway told The Wall Street Journal at the Dubai Precious Metals Conference, one of the world’s largest gatherings of gold investors.

John doesn't come out and say that the precious metal markets are rigged, but he does say that "many people" believe they are---and he would be one of them---and that was his way saying it without uttering the words himself.  This article showed up on the blogs.wsj.com Internet site during the New York lunch hour yesterday---and I found it embedded in a GATA release.  It's not overly long---and it's worth your time.

'$75 billion gold traded through Dubai in 2013'

Posted: 08 Apr 2014 02:38 AM PDT

'$75 billion gold traded through Dubai in 2013'

The Dubai Precious Metals Conference 2014 (‘DPMC 2014’), hosted by DMCC, in association with Foretell and title sponsor Standard Bank, was officially opened in the presence of Maryam Buti Al Suwaidi, Deputy CEO, Securities & Commodities Authority, with DMCC Executive Chairman, Ahmed Bin Sulayem announcing that $75 billion of gold was traded through Dubai in 2013, further cementing the Emirate’s global position as the global bullion hub.

During his keynote address, Ahmed Bin Sulayem, Executive Chairman, DMCC, said: “Dubai has quickly emerged as the leading global hub for the precious metals trade. As a result of DMCC’s continuous efforts to realise the vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, the Emirate has risen as the destination for global precious metals trading. In 2013 almost 40 per cent of the world’s physical gold trade came through Dubai and the value of total gold traded through Dubai grew to $75 billion, compared to $6 billion in 2003.

“Dubai also saw an annual trade volume increase of 73 per cent accounting for 2,250 tonnes of gold. This market has proven to be resilient under all conditions; even on a year where total global demand fell by 15 per cent, Dubai gained from near-record consumption demand growth. These figures represent a significant shift in the balance of global demand flows with Dubai positioned as one of the global market leaders."

This news item showed up on the emirates247.com Internet site on Sunday---and my thanks go out to Casey Research's own Jeff Clark for digging this story up on our behalf.
 

March gold imports jump to 10-month high in India

Posted: 08 Apr 2014 02:38 AM PDT

March gold imports jump to 10-month high in India

India’s gold imports in March rose to nearly 50 tonnes, the highest since the Reserve Bank of India’s import curbs came into force in May last year, according an estimate by the the All India Gems and Jewellery Trade Federation, an organisation that caters to more than 300,000 jewellers. Last month, Indian imported around 25 tonnes of gold, despite the curbs on the precious metal.

With India's central bank allowing more private banks to bring in the metal, importers had rushed in with their orders, he added. Moreover, with prices moderating in the local market, amidst expectations that the curbs might be lifted any time soon, traders said gold imports could stay high for some more time.

Finance minister P Chidambaram has indicated that the government could further ease restrictions on gold imports, and that the relaxations made a few days ago when more banks were allowed to import gold, was the first in a series of measures unrolled by the government to relax curbs.

This article, filed from Mumbai, was posted on the mineweb.com Internet site yesterday sometime.

Koos Jansen: January India Silver Import 462 Metric Tonnes

Posted: 08 Apr 2014 02:38 AM PDT

Koos Jansen: January India Silver Import 462 Metric Tonnes

Gold researcher and GATA consultant Koos Jansen today takes a close look at gold and silver demand in India, where silver demand has been breaking records because of the government's tighter restrictions on gold imports.

This commentary, along with a slew of excellent charts, was posted on the ingoldwetrust.ch Internet site yesterday---and is definitely worth reading.
 

Gold Bullion Stored In Singapore Is Safest - Marc Faber

Posted: 08 Apr 2014 02:38 AM PDT

Gold Bullion Stored In Singapore Is Safest - Marc Faber

This 36:38 minute audio interview with the good doctor was conducted by Mark O'Byrne from the goldcore.com Internet site.  The audio quality isn't that great, because it sounds like it was done on Skype.  I haven't had the time to listen to it yet, so I'm not sure if it's worth your while or not.

It was posted on youtube.com last Friday---and I thank reader Ken Hurt for sharing it with us.
 

Lawrence Williams: Gold manipulation---ex U.S. Treasury top gun tells us how and why

Posted: 08 Apr 2014 02:38 AM PDT

Lawrence Williams: Gold manipulation---ex U.S. Treasury top gun tells us how and why

In an era when the general consensus is that ALL markets are manipulated in some way or another – and usually by the financial elite who have the monetary and political backing to be able to do so with virtual impunity – it seems unlikely that gold should be immune, despite denials by some who should perhaps know better, or maybe have their own agenda in muddying the waters. Indeed this kind of manipulation does not only apply to markets, with government issued statistics massaged, and goalposts moved, to present them in the best possible light. This era of state and financial misrepresentations, once the preserve of totalitarian states and their elites, but now seemingly prevalent across all political and financial spectra, may convince some (perhaps the majority) of the people most of the time that everything in the world is coming up roses. But it is an inherently dishonest concept imposed on the general populace by the global elite and in truth there seems to be little one can do to prevent it. Even honest politicians (if that is not a contradiction of terms) eventually get sucked in and have to make major compromises if they want to try and put their own agendas across. 

But back to gold. Former Reagan era ex U.S. Treasury Assistant Secretary, Paul Craig Roberts, has just published an interesting article on his website which not only states categorically that the gold price is indeed manipulated by the U.S. Fed and its bullion banking allies, but how the price control is achieved, together with illustrative charts. Now Roberts may have his own agenda to push, but as a former U.S. Treasury insider – even if of a different era - he should indeed know what he is talking about and his words should be taken seriously by gold bull and bear alike as his views are relevant to those in all gold-related camps. To read his article - The Federal Reserve has no integrity - click here.

There's nothing really new in the Roberts/Kranzler piece, as this scenario has been discussed at length by Ted Butler and myself---along with others---for months [if not years] now, so I suppose it's only because of who is saying it that makes it worth posting---and commenting on.  But it still falls into the must read category---and Lawrie's comments, along with the embedded Roberts/Kranzler essay, showed up on the mineweb.com Internet site yesterday.

Emerging middle classes in Asia to drive Dubai Gold trade volumes higher in 2014

Posted: 08 Apr 2014 02:21 AM PDT

Dubai's gold trade volumes should continue to grow so long as the emerging middle classes in Asia continue to grow and prosper, as per latest forecast by John Hathaway, US-based analyst and portfolio manager for Tocqueville Asset Management.

Gold: Back Above 1,300 But Downside Bias Remains

Posted: 08 Apr 2014 02:20 AM PDT

investing

Monetary Insurance: Protect With Physical Silver Against The Financial Winter

Posted: 08 Apr 2014 01:53 AM PDT

As part of our research to unveil the best tactics and strategies to protect against the upcoming tsunami in monetary and financial markets, we have reached out to Charles Savoie, author and researcher, with a tremendous knowledge of precious metals history. Our question was how individuals and small investors can best protect during the hard times that are coming, which will most likely be characterized as turmoil and collapses (of all sorts of assets, including currencies, around the world).

Charles Savoie wrote a very useful document for our readers. It is entitled “The Best Monetary Insurance”, counts 38 pages, and is a mix of practical tips embedded in an historical context. The key message of Mr. Savoie is to hold enough silver in physical form, ideally a mix of formats, but for sure silver dimes. 

In this article, we highlight the most actionable tips and tactics. The full document is embedded at the bottom, it can also be downloaded.

Visit Mr. Savoie his two websites: www.nosilvernationalization.org and www.silverstealers.net. He offers all this information as a free service to the public.

Silver has historically played an important role. It has been money, but, more than anything else, a metal of the elites. Consider this:

U.S. Congress knew silver to be more valuable in regard to gold than the present bullion banking fiends.  And Congress knew it nine generations ago!  For details, see Senate document number 67 of the first session of the 73rd Congress, "Elementary Facts Bearing On The Silver Question" by Joel F. Vaile" (50 page document, 1896).  Today the reality ratio of silver to gold may have fallen to 9, due to depletion of minable silver (The U.S. Geological Survey concurs) and even more so, the evanescence of above surface inventories.  Ratios of silver to gold such as the approximate 64 to 1 of late March 2014 are illusory.  But the real impact is that silver is a better buy than gold.

The best monetary insurance you can have is 90% silver dimes 1964 and earlier.  Many gold bugs readily admit silver to be more depressed than gold. Ted Butler stated long ago that not even gold has a users association.  The fact of the existence of this group is another of many proofs that synthetic money creators hate and fear silver even more than their loathing for gold.  The Silver Users Association started out as the Silver Users Emergency Committee in World War II and in 1947 was renamed the Silver Users Association.  Directors of SUA companies, especially the biggest silver users, are also since that time, directors of megabanks.  90% U.S. coins, historic money, facilitated many billions of transactions during their long history spanning many generations.  Inasmuch as silver is so depressed relative to gold, personally, I advocate owning little or no gold; unless the investor cannot acquire silver.  This is not disdain for gold, but more so, advocacy for acquiring the interest with higher potential.  Silver can be swapped for gold at a later time if the ratio tilts to overvalue silver versus gold.  Why buy 1 ounce of gold today versus 60+ silver ounces, when you may be able later on to swap those 60 + silver ounces for over 5 gold ounces?

A silver dime at the mints started out with a content of .0723 oz silver (4 digits is enough!)  Due to average circulated wear, the business typically uses the figure of .0715 ounce contained silver.  You will be able to tell the difference from a dime with no wear and a dime with light wear and more so, a heavily worn dime.  I feel that very worn dimes are better melted, except for collectors seeking an inexpensive "cull" or "filler" coin for a key date and mint mark.  When you buy dimes, you're unlikely to get any with 89.24% silver, which were minted from 1796 to 1837.  The clear advantage of Mercury dimes over Roosevelt is guaranteed identification of purity with no check of the date nor glance at the rim to look for telltale copper insides.  Silver coins have a surprisingly large variation in surface tone, and you can't always rely on telling the surface tone of a cupronickel (sandwich dime, 1965 and later) from a silver dime.  Of course, proof silver dimes (1992-2009) can be found in dates beyond the fabled 1964 date.  These are good buys generally only if you chance to come by some in a batch of mixed date dimes, in which case, they won't be proof anymore, but will very likely stand way out due to newness and absence of wear.

I am not saying buy silver dimes, and no other silver.  I have all types except the 1,000 ounce ingots, which you can anticipate having to have assayed if you have these and decide to sell.  Unless you're a larger investor and have intentions of using metal to buy land, stick with smaller units.  Having smaller units wouldn't preclude their use in buying land; smaller units are more "maneuverable" as to utility in purchases.

If dimes aren't available, try for quarters.  It mostly comes down to two considerations.  One, the 90% coins haven't been minted now for an entire half century—they get scarcer by the day, as some of these are always being smelted into bullion with silver scrap at refineries, and being melted in jewelers crucibles with some three-niner, in a proportion to yield .925 Sterling jewelry and Two, the silver dime is the most divisible, or the most fractionated, form of silver.  You can go buy a 100 ounce silver bar.  However, you can instead go for the same amount of silver, approximately, in 90% dimes.  This equates to almost exactly 1,400 dimes (28 rolls of 50 coins) at the .0715 figure.  In most cases, dealers have allowed me to cherry pick the dimes I wanted and the methodology I used was as follows.

Tip: Avoid damaged coins

Never buy coins with damage such as hole drilled, bent, clipped, etched (vandalized) or shaved rims.  There's the inevitable coin with red nail polish, best avoided.  While date and mint mark checking is usually only practical in over the counter situations, and is unlikely to turn up anything of outstanding scarcity, it could help you in terms of being able to assemble some starter sets for sale to numismatic collectors.  So while you aren't paying numismatic prices, you will be getting some numismatic values, as long as people want to collect coin series as a hobby or business.  It pays to print out a list of these mint issues and be familiar with them

Tip: Avoid high premiums

You can buy .999 silver as half, quarter, and tenth of an ounce rounds.  There is nothing wrong with these items.  However, know two things—the collectible value will remain less, and when you buy 90% coin, you aren't paying for any manufacturing or minting premium.  You will pay such premiums with the smaller three-niners.  Seven dimes in nearly all cases can be considered a touch more than a half ounce of silver; and 14 dimes a full ounce.  In terms of how much silver is out there as separate items each weighing less than one ounce, definitely at this time, there is more 90% coin than these newer bullion items.

If your silver consists entirely of three and four-niner bullion—stop!  Buy some dimes, or trade bullion for some dimes.  These 90% coins—in all denominations—are increasingly hard to source.  More investors have caught on that whereas these coins are a half century and older, and the supply is constantly shrinking; bullion silver will be produced as long as mining and scrap can supply silver.  The 90% silver, though not industrially pure as is, is nonetheless the scarcer form of silver.  If buying on E-Bay, do avoid dealers with less than very high positive feedback.  Be fairly quiet about your holdings—no boasting to anyone.  Keep these precious items in several scattered, and unpredictable—locations.  If a thief finds one cache, hopefully the others will be missed.

Tip: Where and how to store your bullion

If you don't have a vault or safe, and plan to obtain one, you may consider paying cash, for clear reasons you can imagine yourself.  If it needs to be delivered and installed, arrange to have someone photograph the delivery personnel and the vehicle, from several views.  When my vaults were delivered to an off-site location I have, I remarked as they were finishing, "Now if I only had something worthwhile to store in them;" I then indicated I expected to inherit an antique gun collection in several years.  It never hurts to be careful.  Read "The Art Of War" by Sun-Tzu.  Many major military blunders, costing so many lives.  As always, check ratings first, and buy from the source with the best ratings.

There's always the steel vault and loaded gun approach—which are quite reasonable.  I advise going on EBay and buying some cheap synthetic rubies.  Then, you make up a phony gemological appraisal showing a stone is worth lots of money.  Next, you place these in a jewelry box (unlocked) on top of a dresser.  A thief would think he's got a real haul, and maybe decide to stop searching.  I suggest printing out articles making fun of silver as investment, and leaving these where you think it might mislead someone.  If you use a keypad operated vault, consider acquiring a battery recharger and the http://www.ebay.com/bhp/solar in case the power grid fails and the stores close.  If you find your battery operated keypad fails due to battery exhaustion, this device will solve the problem of accessing your money metal.  Be sure you're using compatible batteries in the first place; they must be a size that matches the recharger, and must be rechargeable batteries.  Keep backup batteries in a climate controlled environment where they'll last longer.  Cover any vault/safe with a tarp or other use of drapery, such as a decorative item—even a Mexican style multicolored serape   http://www.ebay.com/bhp/mex or even plain canvas.  Whenever possible, place any type of objects of low value on top, around and in front of the safe.

Tip: Check what you are buying

Never buy a bag, half bag, quarter bag or tenth of an ounce bag in a shop without first having it opened up and spread out, unless you have a long trust relationship with the dealer.  Paper rolls, more than plastic tube rolls, should be checked.  You aren't accusing the dealer of dishonesty, you are verifying contents, because errors can happen on anyone's part.  Eventually, due to real variations in silver weight in bags, these will have to be sold by actual weight rather than by face value times a factor!  Check ratings of Internet sellers before buying.  Many unfortunates out there are stressed out due to the Tulving fiasco.  I consider the 40% Kennedy halves (1965-1970) a poor choice as long as 90% is available.  The war nickel series, 1942-1945, contains even less silver, at 35% but is a better buy, weight for weight, if similar rates for contained silver are offered.  Those nickels are more historic.

In closing, Charles Savoie says: “The suppression of the silver price is the most nagging and pestilential problem in world monetary history.”

European Union’s double standards

Posted: 08 Apr 2014 01:20 AM PDT

Not long ago, the Ukraine was on the brink of a new economic meltdown. Its debt was roughly €140 billion or approximately 80% of its nominal Gross Domestic Product...

Read

MKS sees Gold prices to rise further in this week

Posted: 08 Apr 2014 01:01 AM PDT

With gold prices rising above the 200-day moving average of $1,298, as of Friday, and above the psychologically important $1,300 level, the yellow metal could see further gains this week, said MKS.

Philip Pilkington: What Constitutes a Money Crank?

Posted: 08 Apr 2014 12:49 AM PDT

By Philip Pilkington, a writer and research assistant at Kingston University in London. You can follow him on Twitter @pilkingtonphil. Originally published at Fixing the Economists

money-crank-illuminati

I've been asking myself that question rather a lot in the past two weeks. This is because I have had two separate commissions for pieces of writing that require me jump down the rabbit hole into the land of the money cranks. One piece is for a magazine and is about gold bugs and their ilk. The other is for an encyclopedia and deals with the Real Bills Doctrine.

To be frank, the Real Bills stuff is actually in some ways worse than the gold bug stuff. Whereas the gold bug stuff is pretty straight-forward and basically in line with the quantity theory, the Real Bills stuff is all over the place. The basic "insight" is simple — that is, money-loans backed by assets that yield real income will not cause inflation — but the various and almost never-ending articulations and re-articulations become ever more murky and confused the digger you deep.

So, what then constitutes a money crank? Well, first of all let's run through a few names and try to decide if they are money cranks. I will be doing this more so from intuition at this stage rather than by appeal to argument. I will try to build an argument around the intuitive examples I give thereafter.

Was Irving Fisher, founder of the famous Quantity Equation, a money crank? I don't think so. Was John Maynard Keynes in his Treatise on Money a money crank? Again, I think not. Were Milton Friedman and Anna Schwarz money cranks when they wrote their A Monetary History of the United States, 1867–1960? I would answer in the negative. What about Nicholas Kaldor in The New Monetarism and Joan Robinson in The Rate of Interest and Other Essays? Again, no. The MMT economists? I think not. Finally, what about David Graeber in his book Debt: The First 5,000 Years? Nope, I really don't think so.

As the reader can appreciate that list contains a number of people with different opinions and different backgrounds. Most are trained economists, for example, but Graeber is an anthropologist and largely an autodidact on monetary theory. It also contains some people that I strongly disagree with on monetary matters, like Friedman and Schwarz. I wanted to include all of these to show that the criteria for what constitutes a money crank should have nothing to do with (a) academic background or (b) whether I disagree with the theories or not.

Now, let's list some people who I do consider money cranks. Murray Rothbard is, I believe, a money crank. But he is of a more softcore variety. On the left is Silvio Gesell, albeit he is of a more softcore variety. Antal Fekete is what I would consider a hardcore money crank. What about media figures like Peter Schiff and Marc Faber? I don't believe that these two constitute money cranks. Rather I think that they draw upon the stories spun by money cranks to sell their respective products — whether that be themselves as media figures or financial positions managed by their companies. They are better seen as 'pop money cranks' who spread the heavily condensed Gospel to the masses in the form of soundbites.

So, what are the commonalities that go to make a person a money crank? If I must summarise I think it would be as follows: in order for someone to be a money crank they must meet one of two criteria. One such criterion is that their analysis of money must be tied up with strongly normative views of how the money system should function. Now, obviously most monetary theorists will have some normative views about how the system should operate, but I think that we can draw a distinction between, say, the view of Friedman that central banks should stick to monetary targets and, say, the views of Rothbard.

We can get a clearer idea of the divergence by quoting from both writers. The chapter headings of Rothbard's work What Has the Government Done to Our Money? are instructive in this regard (as is the title of the work itself). These include:

Government Meddling With Money

and,

The Monetary Breakdown of the West

The content is quite in keeping with the titles too. In the subsection entitled Government and Money Rothbard writes,

Furthermore, government meddling with money has not only brought untold tyranny into the world; it has also brought chaos and not order. It has fragmented the peaceful, productive world market and shattered it into a thousand pieces, with trade and investment hobbled and hampered by myriad restrictions, controls, artificial rates, currency breakdowns, etc. It has helped bring about wars by transforming a world of peaceful intercourse into a jungle of warring currency blocs.

Now compare this to some of Friedman's writings on the desirability of his monetary policy rules. The following is from his paper The Role of Monetary Policy,

By setting itself a steady course and keeping to it, the monetary authority could make a major contribution to promoting economic stability. By making that course one of steady but moderate growth in the quantity of money, it would make a major contribution to avoidance of either inflation or deflation of prices. Other forces would still affect the economy, require change and adjustment, and disturb the even tenor of our ways. But steady monetary growth would provide a monetary climate favorable to the effective operation of those basic forces of enterprise, ingenuity, invention, hard work, and thrift that are the true springs of economic growth. That is the most that we can ask from monetary policy at our present stage of knowledge. But that much and it is a great deal-is clearly within our reach. (p17)

Note carefully the difference in tone. Rothbard gives off an impression that this is all quite personal. Someone has, in a very real sense, done him an injustice… personally. Terms like "meddling" and "tyranny" are thrown around to show that all the ills of the world are tied up with the money system. This highlights something of interest. Whereas in, say, Marx we find a similarly agitated tone, we do not find this tied to something occurring in the money system. That is why Rothbard is a money crank and Marx is not. Marx's ire is primarily political, Rothbard's is primarily tied to the money system — for Rothbard politics and the money system cannot be separated.

For Friedman, however, there is no indication that the money system gets him hot and bothered. For him it is just a means to an end. He has set goals in mind for society — goals that are largely in keeping with the economic consensus — and the money system is merely a means to bring about these goals. Whereas one can imagine Rothbard foaming at the mouth and genuinely affronted by a Federal Reserve open market purchase, one cannot imagine the same to be true for Friedman.

This criterion may be outlined as such: a money crank is a person who views the money system from a position in which they have substantial emotional investment.

Rothbard, however, is tame in comparison to a writer like Fekete. In his poorly written work The Gold Standard Manifesto: "Dismal Monetary Science" he writes,

Governments and academia have utterly failed in discharging their sacred duty to provide a serene environment for the search for and dissemination of truth regarding economics in general and monetary science in particular. This failure has to do, first and foremost, with the incestuous financing of research ever since the Federal Reserve System was launched in the United States in 1913… Under the gold standard government bonds were the instrument to which widows and orphans could safely entrust their savings. Under the regime of irredeemable currency they are the instrument whereby special interest fleeces the rest of society.

Or again,

Unknown to the public, at the end of the day the shill is obliged to hand over her gains to the casino owner, alias the United States Treasury. There is nothing open about what is euphemistically called 'open market operations'. It is a conspiratorial operation. It has come about through unlawful delegation of power without imposing countervailing responsibilities. It was never authorized by the Federal Reserve Act of 1913. It defies the principle of checks and balances. It is immoral. It is a formula to corrupt and ultimately to destroy the Republic.

Such passages are pretty off-the-wall. The money system is portrayed as a vast conspiracy set up to defraud widows and orphans. Here we see that Fekete is far more hardcore than Rothbard. Whereas both agree that the government "meddles" with money and this is undesirable and leads to some sort of personal injury, Fekete goes one step further and portrays the system as an organised conspiracy set up against the vulnerable. Let us now turn to the second criterion that a person can meet to be considered a money crank.

This criterion is often, but not always, tied to the first. It is: the idea that all of society's ills can be solved merely by reorganising the money system. Often the proposed changes must be extremely complex and little thought is typically given as to how really existing social institutions — which arose less by design than by necessity — will integrate the proposed changes. This, I think, is why Gesell falls into the category of money crank.

I cannot quote it at length here but the interested reader should have a look at the section of his work The Natural Economic Order entitled Description of Free Money. There you can see a highly complex exposition of how the money system should be changed to liberate mankind. The problem with such expositions are twofold. First, as already mentioned, it is well-nigh impossible to redesign institutions that have arisen organically — the money system is one of such systems. Second, the idea that the Grand Plan would work out just as it did on the back of the author's envelope is deranged. No one seriously interested in economic policy could rationally believe such a thing. Plans only work when they are highly simplified — and even then they will have enormous unforeseen consequences.

So, let's state this criterion in no uncertain terms: a person who believe that all, or the vast majority of, social ills are caused by the current money system and thus can be solved by implementing an imaginary money system that they have designed can be safely considered a money crank.

Anyway, I doubt that the above is completely comprehensive. But I think it lays down a few general observations that might help in distinguishing between monetary theorists and money cranks. Of course, as with most of these things there may be some that fall outside of the criteria here laid down who are nevertheless money cranks. In that regard, the reader can only but trust their own judgment.

Finally, I would say that we should not think that money cranks have nothing to offer. I am sure that right-wingers can find suggestive insights in Fekete's work and I think that the left can find a few in Gesell's work (in the General Theory Keynes certainly thought so). This is because of these writers almost monomaniacal focus on the money system. Most monetary theorists, as I have said, view the money system as a means to an end and thus they do not obsess over it any more than they need to. Money cranks do, however, and that can often lead them to generate minor insights that conventional money theorists miss. But a crank is still a crank. And that should be at the forefront of peoples' mind when approaching the works of any money crank. Because it is far easier to fall down the rabbit hole than it is to crawl back out.

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