Gold World News Flash |
- Rob Kirby: The Derivative Market Will Collapse Soon
- Will central banks need to buy Gold back from the Market?
- Stunning Information About German Public Gold Demand
- 27 Huge Red Flags For The U.S. Economy
- 10 Outrageous Crimes The Banksters Hope You Forget
- All-important ETPs stop selling gold as World Gold Council reports lower Q1 demand in China and India
- Julian Phillips surmises that nearly all Western central bank gold is leased and gone
- Putin Has Crimea, But Reaping Its Energy Riches May Prove Difficult
- The Gold Price Lost $6.50 Closing at $1,288
- The Gold Price Lost $6.50 Closing at $1,288
- As Russia Dumps A Record Amount Of US Treasurys, Here Is What It Is Buying
- Who Is The New Secret Buyer Of U.S. Debt?
- Gold Investors: Waiting Is The Hardest Part
- Russia-China Energy Deal Puts the US Dollar on Deathwatch
- 20 Years of Inflation in Debt and Prices
- Zero Hedge: India's return to gold market may trigger a blizzard of BIS paper
- Gold Daily and Silver Weekly Charts - Lions and Tigers and Pigs, Oh My
- Gold Daily and Silver Weekly Charts - Lions and Tigers and Pigs, Oh My
- Ex-White House Official On China/Russia Alliance & Gold
- Fractional-Reserve Banking: From Goldsmiths To Hedge Funds To…Chaos
- Historic Agreement Signals Massive Shift In The World
- Dollar Collapse Starts in Late 2014-Charles Nenner
- ALERT -- Russia And China Strategically Position Themselves Against The Dollar
- Death of Petro Dollar -- What the China-Russia Gas Deal Means
- Will Central Banks Need to Buy Gold Back from The Market?
- Gold Prices Slip as India's New BJP Government "Gets Set to Ease" Import Duty & 80:20 Rule
- So how goes the war on gold?
- Targeting 16:1 on the Gold/Silver Ratio
- Targeting 16:1 on the Gold/Silver Ratio
- Too Many Stockmarket Bears
- Too Many Stockmarket Bears
- Pierre Lassonde: Mining Cycles Are Good for Royalty Companies and Investors
- Gold Standard Ventures Consolidates Southern Carlin Trend District
- Pierre Lassonde: Mining Cycles Are Good for Royalty Companies and Investors
- Gold Standard Ventures Consolidates Southern Carlin Trend District
- Pierre Lassonde: Mining Cycles Are Good for Royalty Companies and Investors
- Gold Standard Ventures Consolidates Southern Carlin Trend District
- Don’t Be a Slave!
| Rob Kirby: The Derivative Market Will Collapse Soon Posted: 21 May 2014 10:00 PM PDT from WallStForMainSt: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Will central banks need to buy Gold back from the Market? Posted: 21 May 2014 09:20 PM PDT by Julian D. W. Phillips, Gold Seek:
There is a belief that central bank gold in the custody of the world's leading central banks such as the Fed, the Bank of England and the Banque de France has been leased out to the market. Central Banks have confirmed this, but it remains a source of contention. Even where the gold of the world's central banks are held in the world's leading central banks in a custodial arrangement this is so and it is reasonable to assume that this could not be done without the gold's owner's permission. This is what we do know; In the first "Washington Agreement" and repeated in subsequent Central Bank Gold Agreements [from 1999 to now and onto September 26th 2014], a principle laid down in these agreements was; | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stunning Information About German Public Gold Demand Posted: 21 May 2014 09:02 PM PDT  Today King World News is pleased to report on what is happening with gold demand in Germany. The piece below is from Jürgen Fröhlich, Chief-Editor of goldreporter.de. Jürgen shares some stunning information about what is taking place in Germany with regards to the buying and selling of physical gold.This posting includes an audio/video/photo media file: Download Now | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 27 Huge Red Flags For The U.S. Economy Posted: 21 May 2014 08:20 PM PDT Submitted by Michael Snyder of The Economic Collapse blog, If you believe that the U.S. economy is heading in the right direction, you really need to read this article. As we look toward the second half of 2014, there are economic red flags all over the place. Industrial production is down. Home sales are way down. Retail stores are closing at the fastest pace since the collapse of Lehman Brothers. U.S. household debt is up substantially, and in 20 percent of all U.S. families everyone is unemployed. In so many ways, what we are witnessing right now is so similar to what we experienced during the build up to the last great financial crisis. We are making so many of the very same mistakes that we made the last time, and yet our "leaders" seem completely oblivious to what is happening. But the warning signs are very clear. All you have to do is open your eyes and look at them. The following are 27 huge red flags for the U.S. economy... #1 Despite endless assurances from the Obama administration that we are in an "economic recovery", the number one concern for U.S. voters is "Unemployment/Jobs" according to a recent Gallup survey. #2 Historically, sales for construction equipment manufacturer Caterpillar have been a pretty good indicator of where the global economy is heading next. Unfortunately, sales were down 13 percent last month and have now experienced year over year declines for 17 months in a row. #3 During the first quarter of 2014, profits at office supply giant Staples fell by 43.5 percent. #4 Foot traffic at Wal-Mart stores fell by 1.4 percent during the first quarter of 2014. Analysts seem puzzled as to why Wal-Mart is "underperforming". Perhaps it is because the U.S. middle class is being steadily destroyed and U.S. consumers are tapped out at this point. #5 It is being projected that Sears will soon close hundreds more stores and will eventually go out of business altogether...
The "retail apocalypse" just continues to roll on, but the mainstream media is treating this like it is not really a big deal. #6 The labor force participation rate for Americans from the age of 25 to the age of 29 has fallen to an all-time record low. #7 According to official government numbers, everyone is unemployed in 20 percent of all American families. #8 As families struggle to pay their bills, many of them are increasingly turning to debt in order to make ends meet. Earlier this month we learned that total U.S. household debt has increased for three quarters in a row. And as I noted in one recent article, total consumer credit in the United States has increased by 22 percent over the past three years, and 56 percent of all Americans have "subprime credit" at this point. #9 Interest rates on student loans are scheduled to increase substantially on July 1st...
This is going to put even more pressure on the growing student loan debt bubble. #10 U.S. industrial production fell by 0.6 percent in April. This should not be happening if the economy truly was "recovering". #11 Manufacturing job openings in the United States have declined for four months in a row. #12 Existing home sales have fallen for seven of the last eight months and seem to be repeating a pattern that we witnessed back in 2007 prior to the last financial crash. #13 In the real estate bubble market of Phoenix, sales in April were down 12 percent year over year, and active inventory was up 49 percent year over year. In other words, there are tons of homes on the market, but sales are going down. #14 The homeownership rate in the United States has dropped to the lowest level in 19 years. #15 Trading revenue at big banks all over the western world is way down...
#16 Jan Loeys, JPMorgan's head of global asset allocation, is warning that the Federal Reserve is creating a huge financial bubble which could "push us into a credit crisis"...
#17 Peter Boockvar, the chief market analyst at the Lindsey Group, is warning that the U.S. stock market could experience a 20 percent decline once quantitative easing completely ends. #18 A lot of other big names are telling CNBC that they expect a significant stock market "correction" very soon as well...
#19 The number of Americans enrolled in the Social Security disability program exceeds the entire population of the nation of Greece and has just hit another brand new record high. #20 Poverty continues to grow all over the country, and right now there are 49 million Americans that are dealing with food insecurity. #21 According to Pew Charitable Trusts, tax revenue in 26 U.S. states is still lower than it was back in 2008 even though tax rates have gone up in many areas since then. #22 Barack Obama is doing his best to keep his promise to destroy the U.S. coal industry...
#23 Climatologists are now saying that the state of Texas is going through the worst period of drought that it has experienced in 500 years. #24 It is being reported that "dozens of Texas communities" are less than 90 days away from being completely out of water. #25 It is being projected that the drought in California will cost the agricultural industry 1.7 billion dollars and that approximately 14,500 agricultural workers will lose their jobs. #26 Due in part to the drought, the price of meat rose at the fastest pace in more than 10 years last month. #27 According to recent surveys, only about a quarter of all Americans believe that the country is heading in the right direction. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 10 Outrageous Crimes The Banksters Hope You Forget Posted: 21 May 2014 07:20 PM PDT by Mick Meaney, Rebellious Investigative News & Film:
Iran Contra In the Iran Contra scandal, the Bank of Credit and Commerce International revealed how it aided the CIA and other intelligence agencies in laundering billions of dollars in financial fraud, illegal drugs deals, and other crimes. "Allocated" Gold Scam In August 2005 Morgan Stanley were forced to settle a class-action law suit for duping their clients. The bank sold precious metal under false pretences, claiming that it was bought and stored by the company when in fact the bank went ahead and invested in lesser value stocks and securities. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 21 May 2014 06:40 PM PDT by Peter Cooper, ArabianMoney:
China bought 18 per cent less gold, with gold bar and coin purchases tumbling 55 per cent while Indian consumption was down 26 per cent. The sudden price rise in January probably put off opportunistic buyers who had swooped on bargain prices in the sell-off by the ETPs last year. Indian demand fell due to higher taxes on gold but total UAE demand was up 16 per cent mainly because of buying by Indians for personal export. Profit taking The WGC commented: 'A degree of profit-taking also contributed to the year-on-year decline. The opportunistic buying that accounted for a portion of last year's surge resulted in some of these relatively tactical buyers closing out of their positions as the price rose over the course of the quarter.' | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Julian Phillips surmises that nearly all Western central bank gold is leased and gone Posted: 21 May 2014 04:53 PM PDT 7:50p ET Wednesday, March 21, 2014 Dear Friend of GATA and Gold: Gold Forecaster editor Julian Phillips earns his tin-foil hat with his new commentary, "Will Central Banks Need to Buy Gold Back from the Market?," in which he surmises that nearly all Western central bank gold has been leased and is not readily recoverable. Phillips' commentary is posted at GoldSeek here -- http://news.goldseek.com/GoldForecaster/1400702400.php -- and at 24hGold here: http://www.24hgold.com/english/news-gold-silver-will-central-banks-need-... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Silver mining stock report comes with 1-ounce silver round Future Money Trends is offering a special 18-page silver mining stock report about how to profit with the monetary and industrial metal in 2014, and it comes with a free 1-ounce silver round. Proceeds from the report's sales are shared with the Gold Anti-Trust Action Committee to support its efforts to expose manipulation in the monetary metals markets. To learn about this report, please visit: Join GATA here: Committee for Monetary Research and Education http://www.cmre.org/news/spring-meeting-2014/ Porter Stansberry Natural Resources Conference Canadian Investor Conference 2014 http://cambridgehouse.com/event/25/canadian-investor-conference-2014-inc... New Orleans Investment Conference https://jeffersoncompanies.com/new-orleans-investment-conference/home * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Buy metals at GoldMoney and enjoy international storage GoldMoney was established in 2001 by James and Geoff Turk and is safeguarding more than $1.7 billion in metals and currencies. Buy gold, silver, platinum, and palladium from GoldMoney over the Internet and store them in vaults in Canada, Hong Kong, Singapore, Switzerland, and the United Kingdom, taking advantage of GoldMoney's low storage rates, among the most competitive in the industry. GoldMoney also offers delivery of 100-gram and 1-kilogram gold bars and 1-kilogram silver bars. To learn more, please visit: http://www.goldmoney.com/?gmrefcode=gata | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Putin Has Crimea, But Reaping Its Energy Riches May Prove Difficult Posted: 21 May 2014 04:50 PM PDT
Donetsk's huge shale fields... And as other regions in east and south Ukraine follow in the Donetsk' footsteps, assuring Russia a land connection to Crimea and cutting off Kiev from the Donbas industrial zones and the Slavyansk shale gas, Putin wins again.
And, as NY Times notes, Crimea's offshore resources are a dramatic bonus...
Submitted by Nick Cunningham via OilPrice.com, Russia’s seizure of Crimea has led to speculation that a major motivating factor was to acquire potentially vast energy resources in the Black and Azov Seas. I wrote back in March on the eve of the Crimean vote to secede from Ukraine about reports that Russia was eyeing the oil and gas reserves off the coast of Crimea. But taking control of territory rich in oil and gas is different from being able to successfully pull those energy resources from the ground. The New York Times published an article on May 17 that suggested that Russian President Vladimir Putin quietly achieved a massive windfall – acquiring “rights to underwater resources potentially worth trillions of dollars.” The Black and Azov Seas could certainly hold a huge bounty, potentially up to almost 10 billion barrels of oil and 3.8 trillion cubic feet of natural gas. The most promising field is the Skifska field just southwest of the Crimean coastline. Early estimates suggest that Skifska holds 200 to 250 billion cubic meters of natural gas. However, just because Russia now controls this territory does not mean they will be able to take advantage of it, at least not anytime soon. Although there are rough estimates of significant reserves of oil and gas, the area is still relatively unexplored. Ukraine had trouble attracting any bidders for two of its four blocks off the coast of Crimea, despite heavy salesmanship by the government in Kiev. Also, Russian energy companies still do not have a thorough understanding of the geology in Crimean waters. LUKoil, one of Russia’s largest oil companies, was outbid in an auction for the Skifska field by an international consortium led by ExxonMobil. The consortium had been in talks with the Ukrainian government under Viktor Yanukovych over a deal for the Skifska field right up until the annexation of Crimea. The oil companies had plans to spend $735 million to drill two wells. The deal was never finalized and ExxonMobil and its partners obviously shelved those plans when things took a turn for the worse a few months ago. Presumably, with Russia now moving in, Russian companies will have to redo some of the preliminary exploratory work that the private consortium had already done. But, more importantly, offshore oil drilling is highly technical, and requires enormous upfront capital. Russia has often teamed up with international oil companies – like ExxonMobil, BP and Royal Dutch Shell -- to tackle some of the extraordinarily difficult-to-reach oil fields, as Russia’s companies can’t always do it on their own. That’s why Russia has sought partners for offshore oil drilling in the Arctic, constructing LNG terminals in Sakhalin, and for tight oil drilling in Western Siberia. But in Crimea – which much of the world does not recognize as Russian territory – finding international partners, should Russia need them, will be extremely difficult to do. For example, on April 30, Shell’s Chief Financial Officer Simon Henry ruled out new Russian ventures for the foreseeable future. “I don't think we'll be jumping into new investments (in Russia) anytime soon,” he said. With Crimea in international legal limbo, other companies won’t invest, either. Even if Russia can go it alone in the Black Sea – and since the waters are shallower and less remote than some of its other major new projects, they probably will try to – it will take years before any oil and gas will come online. In the meantime, Russia is paying the price for its international isolation. The economy will probably enter recession in the second quarter, according to Russia’s economy minister. Capital flight from Russia reached $63.7 billion in the first three months of this year, exceeding last year’s total. The ruble is also down 6 percent against the dollar so far this year, pushing up inflation, which hit an annual rate of 7.2 percent. Moreover, in the long-term, Russia may have severely damaged its reputation as a place for doing business. That will hurt the economy for years to come and is much harder to rectify than playing with interest rates or money supply, which can be used for short-term fixes. The darkening economic climate is inflicting real costs on Russia, and that flies in the face of headlines describing Russia’s takeover of Crimea’s oil and gas reserves as a major strategic triumph. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Gold Price Lost $6.50 Closing at $1,288 Posted: 21 May 2014 04:17 PM PDT
After a hard day the GOLD PRICE closed $1,288, $6.50 lower. Silver lost six cents to 1930.7c. The days range was only about $14, from $1,296.3 to $1,282.90. Yes, yes, gold fell but not outside its even-sided triangle, and not below its uptrend line. Yet 'tis sorry form to stay below your 200 DMA ($1,299.21) and 20 DMA ($1,295.40), and leads onlookers to conclude you are weak and spineless. Other onlookers might say, though, "Lo! It broke not beneath the bloviating blatherstorm from the FOMC! Is that not a sign of strength?" Other onlookers say naught, having dozed off waiting for something to happen. Nor did silver change greatly today. Yea, it fell to its uptrend line. So? So nothing meaningful has yet taken place. The SILVER PRICE breaking below 1925c (the present uptrend line) or gold below roughly $1,278, lower boundary line of its triangle, would constitute a breakdown. Up above, the GOLD PRICE closing over $1,316 or silver over 2005c (the last high) would mark an upside breakout. Meantime, all else merely spins wheels and digs in the mud. Meanwhile, we wait. Do y'all remember how, before you learned the rules, you watched your parents play cards and couldn't figure out what was happening? That's how I feel a lot of the time watching markets react to Federal Open Market Committee (FOMC) minutes. They don't even say as much as an Alan Greenspan speech, they mumble on about the same things, but whatever they say stocks rise. I ain't too bright, but I'm beginning to doubt this game makes sense. Whole point is to keep markets forever on tenterhooks. I miss the adults. The US dollar index sure liked whatever the FOMC said. After making a double bottom with Monday's 79.90-ish low early in the day, about 5:00 a.m. New York time it began to climb, hitting at one point 80.37. Now on the chart that's a big range, and it jumped clean up to the downtrend line, but at the end of the day it nor more than a little mouse-burp because the dollar index only gained 3 basis points to close at 80.12. But that's kind of a key reversal, a break into new low territory with a higher close, except the cheesy low was at 79.94, same place as Monday's. So we're left with the same mulish dollar, balking. Won't rise, won't fall. MACD however, is positive, and today's fall and recovery probably cleaned out a bunch of shorts, making higher prices possible. Euro sank another 0.11% to $1.3685. Mercy, if you owned euros your teeth would be aching sure enough. Hath fallen nearly to its 200 DMA ($1.3624). Destined for low places, soon. Yen today hit is 200 DMA (99.09) and crumpled. Fell 0.09% to close at 98.63 cents/Y100. That is only the first try, though, and the yen ought to return and breach that barrier. After losing 137.55 today the Dow gained 158.75 (0.97%) today and closed at 16,533.06. In other words, it bounced off its 50 DMA (16,407) and up to recent resistance. Closed also barely above its 20 DMA (16,523.32). This gets it NEAR to accomplishing something meaningful, but "near to" only scores when you're playing with hand grenades. S&P500 won back 15.2 points (0.81%) and closed at 1,888.03. 'Tis above the 20 DMA (1,880) but otherwise only at the threshold of recent resistance. Must climb through that that to count. A workman should never blame his tools. That's the incompetent's way out, yet these charts have been bouncing back and forth like a tennis ball, forever drawing near some resolution without ever in fact resolving, and I'm stumped. Dow in gold crossed back above its 20 DMA (12.76 oz or G$263.77 gold dollars) and still has not cleanly broken down from its rising flat-topped triangle formation. It ushered out today up 1.46% to 12.84 oz (G$265.43 gold dollars). Dow in silver has walked through its uptrend lines twice, but today also rose over its 20 DMA (849.92 oz or S$1,098.89 silver dollars) to stop at 854.95 oz (S$1,105.39). My wife Susan had her pacemaker re-programmed last week and together with some medication seems greatly improved. At least that's what I deduce from waking up early this morning to find my bed empty and Susan downstairs trying to fix an outside screen door. This is more like her. Thank you for your prayers, and please don't stop just yet. Aurum et argentum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger The-MoneyChanger.com © 2014, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold or 18 ounces of silver. or 18 ounces of silver. US $ and US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down. WARNING AND DISCLAIMER. Be advised and warned: Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures. NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps. NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced. NOR do I recommend buying gold and silver on margin or with debt. What DO I recommend? Physical gold and silver coins and bars in your own hands. One final warning: NEVER insert a 747 Jumbo Jet up your nose. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Gold Price Lost $6.50 Closing at $1,288 Posted: 21 May 2014 04:17 PM PDT
After a hard day the GOLD PRICE closed $1,288, $6.50 lower. Silver lost six cents to 1930.7c. The days range was only about $14, from $1,296.3 to $1,282.90. Yes, yes, gold fell but not outside its even-sided triangle, and not below its uptrend line. Yet 'tis sorry form to stay below your 200 DMA ($1,299.21) and 20 DMA ($1,295.40), and leads onlookers to conclude you are weak and spineless. Other onlookers might say, though, "Lo! It broke not beneath the bloviating blatherstorm from the FOMC! Is that not a sign of strength?" Other onlookers say naught, having dozed off waiting for something to happen. Nor did silver change greatly today. Yea, it fell to its uptrend line. So? So nothing meaningful has yet taken place. The SILVER PRICE breaking below 1925c (the present uptrend line) or gold below roughly $1,278, lower boundary line of its triangle, would constitute a breakdown. Up above, the GOLD PRICE closing over $1,316 or silver over 2005c (the last high) would mark an upside breakout. Meantime, all else merely spins wheels and digs in the mud. Meanwhile, we wait. Do y'all remember how, before you learned the rules, you watched your parents play cards and couldn't figure out what was happening? That's how I feel a lot of the time watching markets react to Federal Open Market Committee (FOMC) minutes. They don't even say as much as an Alan Greenspan speech, they mumble on about the same things, but whatever they say stocks rise. I ain't too bright, but I'm beginning to doubt this game makes sense. Whole point is to keep markets forever on tenterhooks. I miss the adults. The US dollar index sure liked whatever the FOMC said. After making a double bottom with Monday's 79.90-ish low early in the day, about 5:00 a.m. New York time it began to climb, hitting at one point 80.37. Now on the chart that's a big range, and it jumped clean up to the downtrend line, but at the end of the day it nor more than a little mouse-burp because the dollar index only gained 3 basis points to close at 80.12. But that's kind of a key reversal, a break into new low territory with a higher close, except the cheesy low was at 79.94, same place as Monday's. So we're left with the same mulish dollar, balking. Won't rise, won't fall. MACD however, is positive, and today's fall and recovery probably cleaned out a bunch of shorts, making higher prices possible. Euro sank another 0.11% to $1.3685. Mercy, if you owned euros your teeth would be aching sure enough. Hath fallen nearly to its 200 DMA ($1.3624). Destined for low places, soon. Yen today hit is 200 DMA (99.09) and crumpled. Fell 0.09% to close at 98.63 cents/Y100. That is only the first try, though, and the yen ought to return and breach that barrier. After losing 137.55 today the Dow gained 158.75 (0.97%) today and closed at 16,533.06. In other words, it bounced off its 50 DMA (16,407) and up to recent resistance. Closed also barely above its 20 DMA (16,523.32). This gets it NEAR to accomplishing something meaningful, but "near to" only scores when you're playing with hand grenades. S&P500 won back 15.2 points (0.81%) and closed at 1,888.03. 'Tis above the 20 DMA (1,880) but otherwise only at the threshold of recent resistance. Must climb through that that to count. A workman should never blame his tools. That's the incompetent's way out, yet these charts have been bouncing back and forth like a tennis ball, forever drawing near some resolution without ever in fact resolving, and I'm stumped. Dow in gold crossed back above its 20 DMA (12.76 oz or G$263.77 gold dollars) and still has not cleanly broken down from its rising flat-topped triangle formation. It ushered out today up 1.46% to 12.84 oz (G$265.43 gold dollars). Dow in silver has walked through its uptrend lines twice, but today also rose over its 20 DMA (849.92 oz or S$1,098.89 silver dollars) to stop at 854.95 oz (S$1,105.39). My wife Susan had her pacemaker re-programmed last week and together with some medication seems greatly improved. At least that's what I deduce from waking up early this morning to find my bed empty and Susan downstairs trying to fix an outside screen door. This is more like her. Thank you for your prayers, and please don't stop just yet. Aurum et argentum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger The-MoneyChanger.com © 2014, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold or 18 ounces of silver. or 18 ounces of silver. US $ and US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down. WARNING AND DISCLAIMER. Be advised and warned: Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures. NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps. NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced. NOR do I recommend buying gold and silver on margin or with debt. What DO I recommend? Physical gold and silver coins and bars in your own hands. One final warning: NEVER insert a 747 Jumbo Jet up your nose. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| As Russia Dumps A Record Amount Of US Treasurys, Here Is What It Is Buying Posted: 21 May 2014 03:55 PM PDT Last week we commented that based on TIC data, while "Belgium's" unprecedented Treasury buying spree continues, one country has been dumping US bonds at an unprecedented rate, and in March alone Russia sold a record $26 billion, or 20% of its holdings.
So as Russia is selling record amount of US paper, what is it buying? For the answer we go to Goldcore which tells us that... Russia Buys 900,000 Ounces Of Gold Worth $1.17 Billion In April The Russian central bank has again increased its gold reserves by another 900,000 ounces worth $1.17 billion in April. Russia's gold reserves rose to 34.4 million troy ounces in April, from 33.5 million troy ounces in March, the Russian central bank announced on its website yesterday. The value of its gold holdings rose to $44.30 billion as of May 1, compared with $43.36 billion a month earlier, it added. The following is a summary from Bloomberg of the April data template on international reserves and foreign currency liquidity from the Central Bank of Russia in Moscow:
Russia's gold & foreign exchange reserves remained virtually unchanged at USD 471.1billion in the week ending May 9. Russia's reserves have fallen since the crisis began but remain very sizeable. The reserves include monetary gold, special drawing rights, reserve position at the IMF and foreign exchange. The 900,000 ounce purchase is a lot of physical gold in ounce or tonnage terms but as a percentage of Russian foreign exchange reserves it is a very small 0.24%. Gold as a percentage of the overall Russian reserves is now nearly 10%. This remains well below the average gold holding as a percentage of foreign exchange reserves of major central banks such as the Bundesbank, Bank of France and the Federal Reserve which is over 65%. The Russian central bank has been gradually increasing the Russian reserves since 2006 (see chart above). On average they have been accumulating 0.5 million troy ounces every month. Therefore, the near 1 million ounce purchase in April is a definite increase in demand. This was to be expected given the very pronounced geopolitical tension with the U.S. and west over Ukraine. Indeed the TIC data shows that Russia has been aggressively divesting themselves of U.S. Treasuries. Russian holdings of U.S. Treasuries fell very sharp, by nearly $50 billion, between October and March 2014 or nearly a third of Russia's total holdings. Over half of the plunge came in March, when $26 billion was liquidated as western sanctions were imposed. TIC Data for April won't be available until June and will make for very interesting reading. Especially given the mysterious huge U.S. Treasury buying that is being done by little Belgium. This has analysts scratching their heads and has aroused suspicions that the Fed and or the ECB may be behind the huge Belgian purchases.
Russian Gold Reserves in Million Fine Troy Ounces - 1995-2014 - Monthly Chart (Bloomberg) Russia has already made their intentions regarding gold very clear. Numerous high ranking officials have affirmed how they view gold as an important monetary asset and Putin himself has had many publicised photos in which he very enthusiastically holds large gold bars. On May 25th 2012, the deputy chairman of Russia's central bank, Sergey Shvetsov, said that the Bank of Russia plans to keep buying gold in order to diversify their foreign exchange reserves. "Last year we bought about 100 tonnes. This year it will be less but still a considerable figure," Shvetsov told Reuters at the time. The World Gold Council reported yesterday that central bank purchases were 70% above their 5-year quarterly average, led by Iraq and Russia. The Eurozone actually became a net buyer thanks to Latvia joining the single currency union, adding its gold to the Eurozone reserves as part of the Euro treaty. Russia may be planning to give the ruble some form of gold backing in order to protect the ruble from devaluations and protect Russia from an international monetary crisis and the soon to return currency wars. Russian central bank demand and indeed global central banks demand is set to continue as macroeconomic, monetary and geopolitical uncertainty is unlikely to abate any time soon. Indeed, it may escalate substantially in the coming months as we move into the next phase of the global debt crisis. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Who Is The New Secret Buyer Of U.S. Debt? Posted: 21 May 2014 03:50 PM PDT Submitted by Brandon Smith of Alt-Market blog, On the surface, the economic atmosphere of the U.S. has appeared rather calm and uneventful. Stocks are up, employment isn’t great but jobs aren’t collapsing into the void (at least not openly), and the U.S. dollar seems to be going strong. Peel away the thin veneer, however, and a different financial horror show is revealed. U.S. stocks have enjoyed unprecedented crash protection due to a steady infusion of fiat money from the Federal Reserve known as quantitative easing. With the advent of the “taper”, QE is now swiftly coming to a close (as is evident in the overall reduction in treasury market purchases), and is slated to end by this fall, if not sooner. Employment has been boosted only in statistical presentation, and not in reality. The Labor Department’s creative accounting of job numbers omits numerous factors, the most important being the issue of long term unemployed. Millions of people who have been jobless for so long they no longer qualify for benefits are being removed from the rolls. This quiet catastrophe has the side bonus of making it appear as though unemployment is going down. U.S. Treasury bonds, and by extension the dollar, have also stayed afloat due to the river of stimulus being introduced by the Federal Reserve. That same river, through QE, is now drying up. In my article The Final Swindle Of Private American Wealth Has Begun, I outline the data which leads me to believe that the Fed taper is a deliberate action in preparation for an impending market collapse. The effectiveness of QE stimulus has a shelf-life, and that shelf life has come to an end. With debt monetization no longer a useful tool in propping up the ailing U.S. economy, central bankers are publicly stepping back. Why? If a collapse occurs while stimulus is in full swing, the Fed immediately takes full blame for the calamity, while being forced to admit that central banking as a concept serves absolutely no meaningful purpose. My research over many years has led me to conclude that a collapse of the American system is not only expected by international financiers, but is in fact being engineered by them. The Fed is an entity created by globalists for globalists. These people have no loyalties to any one country or culture. Their only loyalties are to themselves and their private organizations. While many people assume that the stimulus measures of the Fed are driven by a desire to save our economy and currency, I see instead a concerted program of destabilization which is meant to bring about the eventual demise of our nation’s fiscal infrastructure. What some might call “kicking the can down the road,” I call deliberately stretching the country thin over time, so that any indirect crisis can be used as a trigger event to bring the ceiling crashing down. In the past several months, the Fed taper of QE and subsequently U.S. bond buying has coincided with steep declines in purchases by China, a dump of one-fifth of holdings by Russia, and an overall decline in new purchases of U.S. dollars for FOREX reserves. With the Ukraine crisis now escalating to fever pitch, BRIC nations are openly discussing the probability of “de-dollarization” in international summits, and the ultimate dumping of the dollar as the world reserve currency. The U.S. is in desperate need of a benefactor to purchase its ever rising debt and keep the system running. Strangely, a buyer with apparently bottomless pockets has arrived to pick up the slack that the Fed and the BRICS are leaving behind. But, who is this buyer? At first glance, it appears to be the tiny nation of Belgium. While foreign investment in the U.S. has sharply declined since March, Belgium has quickly become the third largest buyer of Treasury bonds, just behind China and Japan, purchasing more than $200 billion in securities in the past five months, adding to a total stash of around $340 billion. This development is rather bewildering, primarily because Belgium’s GDP as of 2012 was a miniscule $483 billion, meaning, Belgium has spent nearly the entirety of its yearly GDP on our debt. Clearly, this is impossible, and someone, somewhere, is using Belgium as a proxy in order to prop up the U.S. But who? Recently, a company based in Belgium called Euroclear has come forward claiming to be the culprit behind the massive purchases of American debt. Euroclear, though, is not a direct buyer. Instead, the bank is a facilitator, using what it calls a “collateral highway” to allow central banks and international banks to move vast amounts of securities around the world faster than ever before. Euroclear claims to be an administrator for more than $24 trillion in worldwide assets and transactions, but these transactions are not initiated by the company itself. Euroclear is a middleman used by our secret buyer to quickly move U.S. Treasuries into various accounts without ever being identified. So the question remains, who is the true buyer? My investigation into Euroclear found some interesting facts. Euroclear has financial relationships with more than 90 percent of the world’s central banks and was once partly owned and run by 120 of the largest financial institutions back when it was called the “Euroclear System”. The organization was consolidated and operated by none other than JP Morgan Bank in 1972. In 2000, Euroclear was officially incorporated and became its own entity. However, one must remember, once a JP Morgan bank, always a JP Morgan bank. Another interesting fact – Euroclear also has a strong relationship with the Russian government and is a primary broker for Russian debt to foreign investors. This once again proves my ongoing point that Russia is tied to the global banking cabal as much as the United States. The East vs. West paradigm is a sham of the highest order. Euroclear’s ties to the banking elite are obvious; however, we are still no closer to discovering the specific groups or institution responsible for buying up U.S. debt. I think that the use of Euroclear and Belgium may be a key in understanding this mystery. Belgium is the political center of the EU, with more politicians, diplomats and lobbyists than Washington D.C. It is also, despite its size and economic weakness, a member of an exclusive economic club called the “Group Of Ten” (G10). The G10 nations have all agreed to participate in a “General Arrangement to Borrow” (GAB) launched in 1962 by the International Monetary Fund (IMF). The GAB is designed as an ever cycling fund which members pay into. In times of emergency, members can ask the IMF’s permission for a release of funds. If the IMF agrees, it then injects capital through Treasury purchases and SDR allocations. Essentially, the IMF takes our money, then gives it back to us in times of desperation (with strings attached). A similar program called 'New Arrangements To Borrow' (NAB) involves 38 member countries. This fund was boosted to approximately 370 billion SDR (or $575 billion dollars U.S.) as the derivatives crisis struck markets in 2008-2009. Without a full and independent audit of the IMF, however, it is impossible to know the exact funds it has at its disposal, or how many SDR's it has created. It should be noted the Bank of International Settlements is also an overseer of the G10. If you want to learn more about the darker nature of globalist groups like the IMF and the BIS, read my articles, Russia Is Dominated By Global Banks, Too, and False East/West Paradigm Hides The Rise Of Global Currency. The following article from Harpers titled “Ruling The World Of Money,” was published in 1983 and boasts about the secrecy and “ingenuity” of the Bank Of International Settlements, an unaccountable body of financiers that dominates the very course of economic life around the world. It is my belief that Belgium, as a member of the G10 and the GAB/NAB agreements, is being used as a proxy by the BIS and the IMF to purchase U.S. debt, but at a high price. I believe that the banking elite are hiding behind their middleman, Euroclear, because they do not want their purchases of Treasuries revealed too soon. I believe that the IMF in particular is accumulating U.S. debt to be used later as leverage to absorb the dollar and finalize the rise of their SDR currency basket as the world reserve standard. Imagine what would happen if all foreign creditors abandoned U.S. debt purchases because the dollar was no longer seen as viable as a world reserve currency. Imagine that the Fed's efforts to stimulate through fiat printing became useless in propping up Treasuries, serving only to devalue the domestic buying power of our currency. Imagine that the IMF swoops in as the lender of last resort; the only entity willing to service our debt and keep the system running. Imagine what kind of concessions America would have to make to a global loan shark like the IMF. Keep in mind, the plan to replace the dollar is not mere "theory". In fact, IMF head Christine Lagarde has openly called for a "global financial system" to take over in the place of the current dollar based system. The Bretton Woods System, established in 1944, was used by the United Nations and participating governments to form international rules of economic conduct, including fixed rates for currencies and establishing the dollar as the monetary backbone. The IMF was created during this shift towards globalization as the BIS slithered into the background after its business dealings with the Nazis were exposed. It was the G10, backed by the IMF, that then signed the Smithsonian Agreement in 1971 which ended the Bretton Woods system of fixed currencies, as well as any remnants of the gold standard. This led to the floated currency system we have today, as well as the slow poison of monetary inflation which has now destroyed more than 98 percent of the dollar’s purchasing power. I believe the next and final step in the banker program is to reestablish a new Bretton Woods style system in the wake of an engineered catastrophe. That is to say, we are about to go full circle. Perhaps Ukraine will be the cover event, or tensions in the South China Sea. Just as Bretton Woods was unveiled during World War II, Bretton Woods redux may be unveiled during World War III. In either case, the false East/West paradigm is the most useful ploy the elites have to bring about a controlled decline of the dollar. The new system will reintroduce the concept of fixed currencies, but this time, all currencies will be fixed or “pegged” to the value of the SDR global basket. The IMF holds a global SDR summit every five years, and the next meeting is set for the beginning of 2015. If the Chinese yuan is brought into the SDR basket next year, if the BRICS enter into a conjured economic war with the West, and if the dollar is toppled as the world reserve, there will be nothing left in terms of fiscal structure in the way of a global currency system. If the public does not remove the globalist edifice by force, the IMF and the BIS will then achieve their dream – the complete dissolution of economic sovereignty, and the acceptance by the masses of global financial governance. The elites don’t want to hide behind the curtain anymore. They want recognition. They want to be worshiped. And, it all begins with the secret buyout of America, the implosion of our debt markets, and the annihilation of our way of life. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold Investors: Waiting Is The Hardest Part Posted: 21 May 2014 02:59 PM PDT This is an excerpt from this week's premium update from the The Financial Tap, which is dedicated to helping people learn to grow into successful investors by providing cycle research on multiple markets delivered twice weekly. Now offering monthly & quarterly subscriptions with 30 day refund. Promo code ZEN saves 10%. The waiting game for the declining portion of this Daily Cycle has certainly been frustrating. Generally, by this point, the severe decline towards the next scheduled DCL\ICL would have been well and truly in progress. Along with the powerful rally out of any ICL, the drop and collapse in the latter portion of an Investor Cycle are the two most dependable events within any Cycle. Instead, what we have now is an asset that has stubbornly resisted the pull of a looming Cycle Low. Since topping on just Day 7 (as expected Left Translated), we've seen a 10 day sideways chop, instead of the typical relentless Cycle Low selling. And there have been opportunities for a sell-off too, as the majority of those sessions involved early morning declines that were successfully offset with a rush of buying support. The upshot of this indecisive action is that the Bollinger Bands have now contracted to levels that are rarely seen. And whenever similar conditions have existed in the past, we find that the eventual breakout (in either direction), always ends up being powerful and explosive. Although gold's ability to withstand the pull of the Cycle Low (too date) is bullish, it is very rare to see powerful (Bollinger Band) moves resolve themselves in any direction other than where the path of least resistance is found. And that means that the expectation of a fall to a Cycle Low is still valid, but now the tight Bollinger Bands are indicating that goal will be achieved much quicker than previously thought.  GOLD PRICE DAILY CHART Generally by this point, at least ever since gold peaked in 2011, the miners would comfortably be leading gold lower by this point. That's because gold has been locked in a bear market and the miners are overly sensitive and leveraged to gold's movements. So when the expectation (bear market) is for lower gold prices, it's the miners that are typically sold in advance of this decline. So it's impressive and comforting to see the miners holding up so well here. When I look at the precious metals bullish percent chart, I notice that 30% of miners are still showing bullish P&F charts. This too is revealing, because it's typically only during a bull market that we see such a decent level of miners maintaining a bullish chart. During the last gold ICL, the miners made deeper lows, while gold did not. I believe this is because the miners were anticipating a continuation (bear market) of the series of failed gold Cycles. But now, with gold having formed a double bottom the last time, I believe this "relative strength" is an indication that the miners expect an end to gold's bear market. In that case, we should now see the miners hold above the prior ICL lows set back in December. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Russia-China Energy Deal Puts the US Dollar on Deathwatch Posted: 21 May 2014 02:52 PM PDT “The deal that wasn’t”… suddenly is. That’s about all we know for certain in the aftermath of the first meeting between Russian president Vladimir Putin and Chinese president Xi Jinping on Chinese soil.
As we’ve mentioned for the past week, the two planned to sign a deal to export Russian natural gas to China. But yesterday, it appeared the final negotiations were falling apart. “That was a shock,” said a post at Foreign Policy’s site last night, “a blow to Putin’s objectives and a reminder of how much China has the upper hand when it comes to gas deals with Europe’s biggest gas supplier.” You could practically hear the Beltway class, ever hostile to Putin, clinking their martini glasses in celebration. Supposedly, the two sides couldn’t come together on a price. Russia wanted the price it charges European customers — about $12 per million BTUs. China wanted to pay what it pays to its Central Asian suppliers — roughly $10 per million BTUs. (The U.S. price is about $4.50, thanks to our shale bounty.) But as dawn broke on the U.S. East Coast, word came from Shanghai the deal was done — price not disclosed, although the total value of the deal is $400 billion over 30 years. Also not disclosed is whether the trade will be conducted in dollars — the world’s reserve currency — or in rubles and yuan. U.S. [crude] production is now moving at its fastest clip since 1986. But in the meantime, the negotiators in Shanghai also came to terms on boosting their nondollar trade in other goods. Or as a joint statement said: “The sides intend to take new steps to increase the level and expansion of spheres of Russian-Chinese practical cooperation, in particular to establish close cooperation in the financial sphere, including an increase in direct payments in the Russian and Chinese national currencies in trade, investments and loan services.” Russia’s “de-dollarization” plan we mentioned last week is proceeding apace. Crude prices are pushing $104 this morning, the highest level in a month. The Energy Department’s weekly crude inventory report showed a big drop in recent days. But U.S. production is now moving at its fastest clip since 1986. For the record: Nearly 10 million homeowners remain underwater on their mortgages — owing more than the underlying property is worth. That’s 18.8% of all U.S. homes carrying a mortgage during the first quarter, according to Zillow. The only saving grace is the figure a year ago was 25.4%. Maybe the commodity boom really is over now. The seven-year history of this daily e-letter is in part an ongoing chronicle of bizarre thefts of valuable commodities — fryer grease from restaurants, hay bales from parched Texas fields, lead from the roofs of Anglican churches, copper tubing from a TV transmitter (35,000 volts of electricity? No problem), etc. But there’s been a drought of such stories for more than six months now. The best we’ve found of late is an item from Seattle, where the desired commodity was… porcelain. Police say it goes like this: A couple walks into a Subway for sandwiches. They place their order, and the man heads to the restroom. He takes so long his wife knocks on the door and finally leaves without him. “When the man eventually emerged from the bathroom,” according to a Reuters account, “he hurriedly exited the store in possession of a large plastic garbage bag, police said.” Then an employee discovered the toilet tank was missing. Estimated value: $550. The thief remains on the lam. But whenever he needs to be on the throne, he’s all set… Regards, Dave Gonigam Ed. Note: This is just a small snippet of what Dave is writing about in The 5 Min. Forecast – a free service provided to paid subscribers of Agora Financial publications. Inside every issue, Dave details a variety of market and economic news, including several reports that show you exactly how to profit in these uncertain times. In today’s issue alone, readers were shown a exclusive reports on how whiskey might cure cancer, how to profit from the Pentagon’s secret “Black Budget” and how a “magic calendar” could show you over $390,000 every 12 months. And that’s just in one issue! Don’t miss Dave’s next letter. Click here for more info on how you can sign up. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 20 Years of Inflation in Debt and Prices Posted: 21 May 2014 02:34 PM PDT We know:
DATA: I took monthly closing prices for crude oil, gold, soybeans, silver, and the S&P 500 index and averaged them to create annual prices. The following graph shows 20 years of those prices, all indexed back to 1994 = 1.0. They increased by about a factor of 4 with crude oil prices increasing the most over this 20 year period.  average gold prices on 20 years The next graph shows US national debt, crude oil, gold, and the S&P 500 index. National debt is a good proxy for the supply of currency and credit, and as debt inevitably increases, so do prices.  average price of gold, crude oil, S&P 500 and national debt over 20 years Conclusion: Expect more debt and higher prices for stocks, energy, gold and silver. Expect more volatility as prices adjust for the latest shock, insolvency, war, and announcement from the Federal Reserve or supposedly important politician. The powers-that-be know the game is "Inflate or Die" and while they might not be all-powerful, a century of increasing prices indicates they will probably get what they want. From Bill Bonner:
It will not be a smooth ride. Accidents happen. Protect the purchasing power of a portion of your assets and savings by converting to real money – gold and silver.
GE Christenson | The Deviant Investor | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Zero Hedge: India's return to gold market may trigger a blizzard of BIS paper Posted: 21 May 2014 01:14 PM PDT From ZeroHedge.com ... So will India finally allow its population again to purchase gold without limit as it appears set on doing? And how will the price of gold react when the formerly largest buyer of gold is back on the bid and scrambles to make up for one year of lost activity? We should know shortly, but one thing is certain: In the absence of private-sector manipulation now that even the gold-fixing cartel is imploding, the central bank manipulators, especially those at the Bank for International Settlement, will have to work overtime in selling paper gold to compensate for what may well be a tsunami of pent-up physical purchases out of the country with the 1.2 billion population. ... For the full commentary: http://www.zerohedge.com/news/2014-05-21/flooded-gold-smuggling-indias-n... ADVERTISEMENT Buy precious metals free of value-added tax throughout Europe Europe Silver Bullion is a fast-growing dealer sourcing its products from renowned mints, refiners, and distributors. Because of a legal loophole that will close soon, you can acquire the world's most popular bullion coins free of value-added tax throughout the European Union. You can collect your order in person at our headquarters in Tallinn, Estonia, or have it delivered in any of the 28 EU countries. Europe Silver Bullion is owned and operated by North American and European experts in selling, storing, and transporting precious metals. We have an extensive product inventory of silver, gold, platinum, and palladium, and our network spans the world. Visit us at www.europesilverbullion.com. Join GATA here: Committee for Monetary Research and Education http://www.cmre.org/news/spring-meeting-2014/ Porter Stansberry Natural Resources Conference Canadian Investor Conference 2014 http://cambridgehouse.com/event/25/canadian-investor-conference-2014-inc... New Orleans Investment Conference https://jeffersoncompanies.com/new-orleans-investment-conference/home * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Safe and Private Allocated Bullion Storage In Singapore Given the increasing risks in financial markets, it is more important than ever to own physical bullion coins and bars and to store them in the safest vaults in the world in the safest jurisdictions in the world. Gold advocates Jim Sinclair and Marc Faber have recommended Singapore. Now, with GoldCore, you can own coins and bars in fully insured, segregated, and allocated accounts in Singapore with the ability to take delivery. Learn more by downloading GoldCore's Essential Guide To Storing Gold In Singapore: http://info.goldcore.com/essential-guide-to-storing-gold-in-singapore And for more information call Daniel or Sharon at +44 203 0869200 in the United Kingdom or at +1-302-635-1160 in the United States. Or email them at info@goldcore.com. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold Daily and Silver Weekly Charts - Lions and Tigers and Pigs, Oh My Posted: 21 May 2014 01:10 PM PDT | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold Daily and Silver Weekly Charts - Lions and Tigers and Pigs, Oh My Posted: 21 May 2014 01:10 PM PDT | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ex-White House Official On China/Russia Alliance & Gold Posted: 21 May 2014 12:58 PM PDT  Today King World News interviewed the former White House official who was Special Assistant to the President of the United States for Economic Policy and a former member of the U.S. President's Working Group on Financial Markets, also known as the Plunge Protection Team, or PPT. While in the White House, Dr. Philippa Malmgren served as financial market advisor in the White House and functioned as the direct liaison between the White House and the Federal Reserve. Dr. Malmgren formerly headed the Global Asset Management business for Bankers Trust in Asia, out of Hong Kong, and was also Chief Currency Strategist for Bankers Trust Company, and former Head of Global Investment Strategy at UBS. Dr. Malmgren was also a senior consultant to Deutsche Bank, and currently advises the largest sovereign wealth funds, hedge funds, and pension funds in the world. This posting includes an audio/video/photo media file: Download Now | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fractional-Reserve Banking: From Goldsmiths To Hedge Funds To…Chaos Posted: 21 May 2014 10:39 AM PDT From Chapter 15 of The Money Bubble, by James Turk and John Rubino: Banking didn't start out as a reckless, parasitical plaything of a moneyed and politically-connected aristocracy. In the beginning, in fact, bankers weren't even bankers. They were jewelers and goldsmiths who had to maintain their inventory with vaults, guards etc., and offered storage services to others with valuables to protect. So the original banks were, in effect, very safe warehouses. Eventually some goldsmiths noticed that the paper receipts they gave to their customers to evidence the valuables left in storage began to circulate as currency alongside their countries' coins. A shopkeeper accepting these receipts in payment knew that he could go to the goldsmith to redeem them for gold and silver, and also recognized that a paper receipt was more convenient to use as currency than were pieces of metal. Gradually these receipts became a widely-accepted form of payment, circulating among buyers to sellers and saved like other forms of wealth. The goldsmiths then noticed something else about their new paper-money invention: Only a tiny fraction of their clients asked for the return of their valuables in any given period, which led to a bright – but legally and morally-dubious – idea. Why not start issuing receipts in excess of the gold and silver on hand? The goldsmiths could spend this currency themselves or lend it to others – thus inventing the business/consumer loan. Henceforth the total gold and silver in the vault (the goldsmith's reserves) would equal only a fraction of the receipts circulating as currency. "Fractional reserve banking" was thus born of deception if not outright fraud, because for the receipts to retain their value the goldsmiths had to pretend that those paper claims to gold and silver were backed by an equal amount of metal and were therefore of equivalent value. They were not, of course, because a tangible asset is more valuable than a promise to pay a tangible asset, particularly when the latter outnumbers the former. The goldsmiths, having evolved into more-or-less recognizable bankers, then realized that more deposits equaled more profits. So they began paying people for deposits of gold and silver rather than charging for their storage, thus inventing the interest-bearing account. The resulting system had some inherent dangers, most obviously that it tempted bankers to lend out ever-greater multiples of deposits, increasing the odds that they would be unable to meet withdrawal requests and collapse. This happened frequently early-on, eventually leading governments to regulate the amount that a given bank could lend against its capital. For a sense of how this works, imagine a bank with $100 in capital that is required to hold a reserve equal to 20 percent of its loans outstanding – which based on experience is usually more than enough to satisfy a typical day's withdrawal requests. In our example, the bank can lend 4/5ths of its depositors' money, or $80, while 1/5th, or $20, remains in reserve. Now here's where it gets interesting: When our hypothetical bank makes a loan, the recipient deposits the proceeds in another bank, which can lend out 4/5ths of that deposit. The recipients of those loans make deposits in other banks, and so on, until a huge multiple of the original deposit base has been turned into circulating currency. The result is an "elastic" money supply. When borrowers are optimistic and want to increase their borrowing, banks in a fractional reserve system can in the aggregate offer them immense amounts of new credit. So the money supply, instead of being determined by the amount of gold, silver or other bank capital in the system, can expand dramatically to accommodate an energetic society's demands. But it can also contract dramatically. If an economy that has greatly increased its money supply through bank lending suddenly takes a downturn or is unnerved by an unexpected crisis, borrowers will pay off their loans or default on them and banks won't replace them, while depositors seek the return of their cash. These actions cause the money supply to collapse, potentially all the way back to the level of base money in the system. The result of this fluctuation in the supply of circulating currency is a recurring series of booms and busts that wipe out businesses, individuals, and banks and frequently send the general economy into recession or depression. Fractional reserve banking was, in fact, a major cause of the Great Depression. To condense a long, complex story into a single paragraph, the extra currency that was printed by the belligerents during World War I (which ended in 1918) was recycled through the fractional reserve banking system and massively amplified via the process we've just described. This tsunami of new credit caused the Roaring Twenties boom in asset prices – especially global equities – that popped in 1929, destroying the pseudo-wealth created in the previous decade. The collateral supposedly guaranteeing bank loans evaporated and sentiment turned negative, sending the fractional reserve credit machinery into reverse and collapsing both the banking system and the real economy. Today’s situation is much, much worse. To see how, click here:
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| Historic Agreement Signals Massive Shift In The World Posted: 21 May 2014 09:53 AM PDT  On the heels of China and Russia signing a historic $400 billion agreement, today an acclaimed money manager spoke with King World News about how this agreement signals a massive shift in the world. Interestingly, Leeb also predicted gold would trade ten times the price we see it quoted at today.This posting includes an audio/video/photo media file: Download Now | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Dollar Collapse Starts in Late 2014-Charles Nenner Posted: 21 May 2014 09:08 AM PDT By Greg Hunter's USAWatchdog.com Dear CIGAs, Renowned financial analyst Charles Nenner has been studying cycles to predict all major markets for the past three decades. Does all the global manipulation in the markets make a difference to the timing of the cycles? Nenner says, "It doesn't . . . all these things have nothing to... Read more » The post Dollar Collapse Starts in Late 2014-Charles Nenner appeared first on Jim Sinclair's Mineset. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| ALERT -- Russia And China Strategically Position Themselves Against The Dollar Posted: 21 May 2014 08:30 AM PDT Italian bad loans surge to all time highs. Europeans who hold full time work are poor and cannot make ends meet. The retail industry in the US is in full decline. The weather is not a factor in retail sales. Common core is collected massive amount of data from students and being sold to... [[ This is a content summary only. Visit http://www.GoldSilverNewsBlog.com or http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Death of Petro Dollar -- What the China-Russia Gas Deal Means Posted: 21 May 2014 08:03 AM PDT Beijing and Moscow signed a contract to supply China with hundreds of billions of dollars worth of Russian natural gas after a decade of difficult talks. Andrew Peaple explains what this means for the European energy market and the crisis in Ukraine. Photo: Getty [[ This is a content summary only. Visit http://www.GoldSilverNewsBlog.com or http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Will Central Banks Need to Buy Gold Back from The Market? Posted: 21 May 2014 07:15 AM PDT Gold Leasing - to what extent There is a belief that central bank gold in the custody of the world's leading central banks such as the Fed, the Bank of England and the Banque de France has been leased out to the market. Central Banks have confirmed this, but it remains a source of contention. Even where the gold of the world's central banks are held in the world's leading central banks in a custodial arrangement this is so and it is reasonable to assume that this could not be done without the gold's owner's permission. This is what we do know; | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold Prices Slip as India's New BJP Government "Gets Set to Ease" Import Duty & 80:20 Rule Posted: 21 May 2014 05:51 AM PDT GOLD PRICES slipped below a tight trading range lunchtime Wednesday in London, even as news broke that the new government of India – formerly the world's No.1 consumer market – is looking to ease gold import restrictions. Imposed last summer to cut India's current account deficit and boost the Rupee from record lows, the gold bullion rules have become a major political issue in India, but weren't mentioned in either the ruling Congress or newly-elected BJP's manifestos. "[Prime-minister elect Narendra] Modi has committed to us that he'll come out with a solution," Reuters quotes Kumar Jain of the Mumbai Jewellers Association. The BJP leader spoke against the gold import curbs several times during India's election campaign, and Modi received the backing of jewelry industry leaders back in September. "We expect some good news to come in July," says Jain, "either by lowering of [10%] import duty or easing of 80/20 rule." As the India rumors were published however, gold prices slipped out of a tight $4 per ounce range, dropping towards Tuesday's 1-week lows at $1289. On top of 10% import duty, gold prices in India have risen up to $170 per ounce above the global benchmark of London settlement, retreating to $100 recently as expectations of Modi's landslide victory dimmed local demand in anticipation of easier rules. Last summer's 80:20 rule from the independent Reserve Bank of India effectively closed imports to India – which has no domestic mine output, and which saw record inflows after the Spring 2013 gold price crash – by forcing 20% of new shipments to be re-exported before the other 80% can be released from Customs. Officials from the Reserve Bank of India met Monday with major gold-importing banks, Reuters' sources say. Other officials quoted anonymously by the news-wire say reducing gold smuggling caused by the import curbs is now a priority. "The recent consolidation [in gold prices] appears set to continue," says technical chart analysis from London market-maker Scotia Mocatta's New York team, "despite a persistent recurrence of intraday breaks below the 100-day Moving Average." Gold prices have now averaged $1291 per ounce at the last 100 London PM Fixes, the global benchmark. "We await a breakout," says Scotia. "Gold has extended its fall this week towards trendline support," says fellow London market-maker Credit Suisse in its technical price analysis, "now showing at $1283. What Credit Suisse calls "buying interest" from major consumer centers such as India "has shown ahead of [that price] and seen a small bounce." A change to India's anti-gold policies "is inevitable" said Albert Cheng, head of the Far East region for market-development organization the World Gold Council, on Tuesday, "because Modi seems to be pro-gold. "It's just a matter of when he is going to do it." | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 21 May 2014 04:00 AM PDT Michael J. Kosares | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Targeting 16:1 on the Gold/Silver Ratio Posted: 21 May 2014 02:09 AM PDT The market is valuing miners as if gold will stay at $1200-1300 forever... CHARLES OLIVER joined Sprott Asset Management in 2008. Lead portfolio manager of the Sprott Gold and Precious Minerals Fund, his previous team at AGF Management Limited was awarded the Canadian Investment Awards Best Precious Metals Fund in 2004, 2006 and 2007. Oliver's own accolades also include Lipper Awards' best five-year return in the Precious Metals category, and the Lipper Award for best one-year return in the Precious Metals category 2010. Charles Oliver, lead portfolio manager with the Sprott Gold and Precious Minerals Fund, Now he believes all that separates precious metals investors from big gains is time. Here he tells The Gold Report why he favors silver in particular... The Gold Report: "Sell in May and go away" is a common investing axiom but does it have any validity? Charles Oliver: I recently went through some research on seasonality in the gold price. March has been negative in the gold space in six of the last eight years, April has proven negative four out of the last eight years, and May and June have both been negative five of the last eight years. However, we see a fairly dramatic turnaround in July where six of the last eight years have been positive. In August, another six of the previous eight years have been positive; September has been positive five of the last eight years. The "sell in May" adage could actually represent a great buying opportunity on the pullback. TGR: What are some investment themes you expect to dominate through the rest of the year? Charles Oliver: It really comes down to printing money. The US has reduced its money printing but it is still aggressively printing. Now we're hearing about the Europeans potentially getting into quantitative easing. The debasement of currencies is an ongoing theme. The other key theme is the demand for physical gold. China has become the world's largest gold buyer, consuming about 40% of the world's mine production. India, which historically had been the world's largest gold consumer, has established some tariffs on gold imports, so there's been some pullback there. It's noteworthy that over the last couple of decades the European central banks have been collectively selling gold. That stopped a couple of years ago. Some numbers from the Swiss Customs Authority show that Germany, France, Singapore, Thailand, even the United Kingdom, are fairly significant gold buyers. These are very positive events. TGR: What about geopolitical events? Do you expect those to dramatically influence gold prices? Charles Oliver: Historically, wars and the risk of wars have been quite positive for the gold price yet recent events in the Ukraine haven't seen gold do anything. In fact, it's trading near the bottom end of its recent range. But should things escalate, I feel strongly that it will have a positive impact. I certainly hope that it doesn't come to that but the risk seems significant. TGR: What is the investor pulse in the precious metals space? Charles Oliver: A year ago investors were selling a little, as they had been for some time. The selling had mostly stopped by the end of the 2013 and the people who didn't have long-term conviction had left. In early 2014 I was a bit surprised to see US value investors streaming in because we had been through a period of net redemptions. When the Americans come into the market they can have quite a dramatic impact on prices. I'll call it sporadic because it has not been a consistent stream. TGR: What happened to those bids? Charles Oliver: Generally speaking, American investors, portfolio managers and pension funds were saying at the end of 2013, "We've had some good returns in the general market but the market is looking somewhat expensive." They were looking for areas where there was good value. The gold price had been hammered over the last couple of years so they were starting to move some of their allocations into that space. We've also seen some private equity buying assets and taking them private. And some Asian interests are dipping their toes in the water. People are starting to wake up and show some interest but they are still waiting for some sort of trigger in order to say that this is the time to jump in. TGR: Any idea what that could be? Charles Oliver: I've spent a lot of time thinking about that question. I liken the 1974 to 1976 period to today. In 1974, the oil price was going up after the oil embargo and inflation was going up, too. It was peculiar because the gold price went from about $200 to $100 per ounce over the next couple of years. Then in 1976 gold suddenly went from $100 per ounce to about $800 per ounce. I have spent a lot of time trying to determine the trigger for that event. Sometimes it is just time. When I look back at 2013, I see a lot of positive fundamentals – strong Chinese demand, huge amounts of money printing – yet the gold price went down. Sometimes it's just the way the markets time themselves. TGR: Do investors need to revise their price expectations for precious metals equities? There is zero froth in this market. Charles Oliver: I think that's a good way of putting it. I'm continually trying to figure out where the market may go. Not too long ago I said that by the end of this decade gold should be approaching something like $5,000 per ounce, which would have a huge impact upon the markets and stock valuations. The market is valuing equities as if gold is going to stay at $1200-1300 per ounce forever. I believe that the market will be proven wrong over time. TGR: Gold is trading at roughly 67 times silver. Does that make silver your preference? Charles Oliver: Yes. It was Eric Sprott who came up with the thesis and I fully embrace it. For over 1,000 years, the silver-gold price relationship was close to 16:1, so that implies that if gold is $1600 per ounce, the silver price would be $100 per ounce. The last time that happened was 1980 when the gold price was roughly $800 per ounce and the silver price was around $50 per ounce. Over the next couple of years, I expect to see that 67:1 ratio migrate toward 16:1. TGR: Yet the trend is moving in the opposite direction. Charles Oliver: In the short term sometimes these things happen. About 25% of the weighting in the Sprott Gold and Precious Minerals Fund (TSX:SPR300) is in silver equities, which is probably among the highest in the peer group for precious metals funds. TGR: What's your investment thesis for silver versus gold? Charles Oliver: About two-thirds of mined silver is used in industry, whereas gold has virtually no industrial usage. Gold is considered a reserve currency whereas silver is not. About 150 years ago many countries had silver reserves backing their currencies. Today they don't but China has trillions of US dollars that it is converting into hard assets. The Chinese are buying a lot of gold but if they ever decide to be a silver buyer we would see a huge shift in the price of silver. Look at every mined commodity out there today – copper, nickel, zinc, iron ore – China accounts for 40-50% of global consumption. TGR: Is it all about margin for precious metals equities? Charles Oliver: A lot of these companies are producing gold at $1000 per ounce or silver at $18 per ounce. Should silver go up to $30, that $2 per ounce margin suddenly becomes $12 per ounce – a sixfold increase. Shifts in commodity prices could have huge impacts on the profitability of these companies. TGR: In March you said that gold would reach $5,000 per ounce within a few years. That seems optimistic. Charles Oliver: It's based on the historical relationship between the Dow Jones Industrial Average and the gold price. Over the last 100 years there have been three times when it has cost 1 to 2 ounces gold to buy the Dow. The last time was 1980 when the gold price was $800 per ounce and the Dow was 800. People roll their eyes when you forecast big numbers. In 2004 or 2005, I said gold would reach $1000 per ounce. When it reached $1000 per ounce, I moved to $2000 per ounce and we almost got there. With the willingness of the market to continue to print money, I believe that we are going to get that 2 or 3 to 1 relationship with the Dow. With the Dow at 16,000, I think $5,000 per ounce is achievable. It's not really that the gold price is increasing, it's that paper currencies are depreciating in value. TGR: Thank you for your time and commentary, Charles. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Targeting 16:1 on the Gold/Silver Ratio Posted: 21 May 2014 02:09 AM PDT The market is valuing miners as if gold will stay at $1200-1300 forever... CHARLES OLIVER joined Sprott Asset Management in 2008. Lead portfolio manager of the Sprott Gold and Precious Minerals Fund, his previous team at AGF Management Limited was awarded the Canadian Investment Awards Best Precious Metals Fund in 2004, 2006 and 2007. Oliver's own accolades also include Lipper Awards' best five-year return in the Precious Metals category, and the Lipper Award for best one-year return in the Precious Metals category 2010. Charles Oliver, lead portfolio manager with the Sprott Gold and Precious Minerals Fund, Now he believes all that separates precious metals investors from big gains is time. Here he tells The Gold Report why he favors silver in particular... The Gold Report: "Sell in May and go away" is a common investing axiom but does it have any validity? Charles Oliver: I recently went through some research on seasonality in the gold price. March has been negative in the gold space in six of the last eight years, April has proven negative four out of the last eight years, and May and June have both been negative five of the last eight years. However, we see a fairly dramatic turnaround in July where six of the last eight years have been positive. In August, another six of the previous eight years have been positive; September has been positive five of the last eight years. The "sell in May" adage could actually represent a great buying opportunity on the pullback. TGR: What are some investment themes you expect to dominate through the rest of the year? Charles Oliver: It really comes down to printing money. The US has reduced its money printing but it is still aggressively printing. Now we're hearing about the Europeans potentially getting into quantitative easing. The debasement of currencies is an ongoing theme. The other key theme is the demand for physical gold. China has become the world's largest gold buyer, consuming about 40% of the world's mine production. India, which historically had been the world's largest gold consumer, has established some tariffs on gold imports, so there's been some pullback there. It's noteworthy that over the last couple of decades the European central banks have been collectively selling gold. That stopped a couple of years ago. Some numbers from the Swiss Customs Authority show that Germany, France, Singapore, Thailand, even the United Kingdom, are fairly significant gold buyers. These are very positive events. TGR: What about geopolitical events? Do you expect those to dramatically influence gold prices? Charles Oliver: Historically, wars and the risk of wars have been quite positive for the gold price yet recent events in the Ukraine haven't seen gold do anything. In fact, it's trading near the bottom end of its recent range. But should things escalate, I feel strongly that it will have a positive impact. I certainly hope that it doesn't come to that but the risk seems significant. TGR: What is the investor pulse in the precious metals space? Charles Oliver: A year ago investors were selling a little, as they had been for some time. The selling had mostly stopped by the end of the 2013 and the people who didn't have long-term conviction had left. In early 2014 I was a bit surprised to see US value investors streaming in because we had been through a period of net redemptions. When the Americans come into the market they can have quite a dramatic impact on prices. I'll call it sporadic because it has not been a consistent stream. TGR: What happened to those bids? Charles Oliver: Generally speaking, American investors, portfolio managers and pension funds were saying at the end of 2013, "We've had some good returns in the general market but the market is looking somewhat expensive." They were looking for areas where there was good value. The gold price had been hammered over the last couple of years so they were starting to move some of their allocations into that space. We've also seen some private equity buying assets and taking them private. And some Asian interests are dipping their toes in the water. People are starting to wake up and show some interest but they are still waiting for some sort of trigger in order to say that this is the time to jump in. TGR: Any idea what that could be? Charles Oliver: I've spent a lot of time thinking about that question. I liken the 1974 to 1976 period to today. In 1974, the oil price was going up after the oil embargo and inflation was going up, too. It was peculiar because the gold price went from about $200 to $100 per ounce over the next couple of years. Then in 1976 gold suddenly went from $100 per ounce to about $800 per ounce. I have spent a lot of time trying to determine the trigger for that event. Sometimes it is just time. When I look back at 2013, I see a lot of positive fundamentals – strong Chinese demand, huge amounts of money printing – yet the gold price went down. Sometimes it's just the way the markets time themselves. TGR: Do investors need to revise their price expectations for precious metals equities? There is zero froth in this market. Charles Oliver: I think that's a good way of putting it. I'm continually trying to figure out where the market may go. Not too long ago I said that by the end of this decade gold should be approaching something like $5,000 per ounce, which would have a huge impact upon the markets and stock valuations. The market is valuing equities as if gold is going to stay at $1200-1300 per ounce forever. I believe that the market will be proven wrong over time. TGR: Gold is trading at roughly 67 times silver. Does that make silver your preference? Charles Oliver: Yes. It was Eric Sprott who came up with the thesis and I fully embrace it. For over 1,000 years, the silver-gold price relationship was close to 16:1, so that implies that if gold is $1600 per ounce, the silver price would be $100 per ounce. The last time that happened was 1980 when the gold price was roughly $800 per ounce and the silver price was around $50 per ounce. Over the next couple of years, I expect to see that 67:1 ratio migrate toward 16:1. TGR: Yet the trend is moving in the opposite direction. Charles Oliver: In the short term sometimes these things happen. About 25% of the weighting in the Sprott Gold and Precious Minerals Fund (TSX:SPR300) is in silver equities, which is probably among the highest in the peer group for precious metals funds. TGR: What's your investment thesis for silver versus gold? Charles Oliver: About two-thirds of mined silver is used in industry, whereas gold has virtually no industrial usage. Gold is considered a reserve currency whereas silver is not. About 150 years ago many countries had silver reserves backing their currencies. Today they don't but China has trillions of US dollars that it is converting into hard assets. The Chinese are buying a lot of gold but if they ever decide to be a silver buyer we would see a huge shift in the price of silver. Look at every mined commodity out there today – copper, nickel, zinc, iron ore – China accounts for 40-50% of global consumption. TGR: Is it all about margin for precious metals equities? Charles Oliver: A lot of these companies are producing gold at $1000 per ounce or silver at $18 per ounce. Should silver go up to $30, that $2 per ounce margin suddenly becomes $12 per ounce – a sixfold increase. Shifts in commodity prices could have huge impacts on the profitability of these companies. TGR: In March you said that gold would reach $5,000 per ounce within a few years. That seems optimistic. Charles Oliver: It's based on the historical relationship between the Dow Jones Industrial Average and the gold price. Over the last 100 years there have been three times when it has cost 1 to 2 ounces gold to buy the Dow. The last time was 1980 when the gold price was $800 per ounce and the Dow was 800. People roll their eyes when you forecast big numbers. In 2004 or 2005, I said gold would reach $1000 per ounce. When it reached $1000 per ounce, I moved to $2000 per ounce and we almost got there. With the willingness of the market to continue to print money, I believe that we are going to get that 2 or 3 to 1 relationship with the Dow. With the Dow at 16,000, I think $5,000 per ounce is achievable. It's not really that the gold price is increasing, it's that paper currencies are depreciating in value. TGR: Thank you for your time and commentary, Charles. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 21 May 2014 01:37 AM PDT The media is so ready for a crash or correction, stocks might have to keep on rising instead... WE ALREADY talked about what is negative for the US stock market, writes Gary Tanashian in his Notes from the Rabbit Hole. Besides noting a young uptrend in long-term Treasury bonds vs. the S&P500, here is the 2011-2014 market leading BKX-SPX in breakdown mode.  Throw in a bearish divergence in the Equity Put/Call ratio, an elevated Gold-Silver ratio right at resistance and Junk bond vs. Treasury/Investment Grade and the signs of a bearish market are not only there, they have manifested in some pretty good downside in the growth and momentum areas. But aside from the Dow Industrials and Transports already noted, there are other things that bears should pay attention to, starting as we often do with the Semiconductor index. The monthly chart shows the absolutely cut and dry situation in the SOX. It broke out to 10 year highs as it led the February market rebound and remains there today.  The daily chart dials in the view. Sox will eventually either break up and out above the red line or it will fail the big picture breakout line (support) at 560.  This is just an epic juncture in the SOX and potentially the market, since the Semi's were NFTRH's 'canary' to a coming and not so surprising bull phase back in early 2013. The SOX, as long as it remains above 560, is a concern to bears to go along with the Dow and Tranny. Here are some others.
Have we had a market blow off yet? It has not looked that way to me. The bull can peter out and roll over or it can end in a burst of greed and speculation, compliments of a job well done by the Fed. Neither gold nor USD have begun to reclaim the risk 'OFF' bid yet. Further, Treasury bonds, the TIP-TLT ratio, gold and especially silver have not yet sniffed out an inflation problem, giving the Fed in essence a license to do whatever the hell it wants (in staving off deflation AKA a convenient Straw Man to justify policy?). What it appears to want is continued appreciation of the 'right' assets, notably the stock market, which Yellen herself admitted is helping fuel a 'wealth effect' for the populace. To summarize, we have been tending a bear case during a mostly bearish 2014 for most of the market right along with much of the mainstream media. That alone makes me uncomfortable if I am a bear. This is not about John Hussman's data points after all, it is about the Fed. One day Hussman will come front and center. Our data points have not all come in yet to state that today is that day. Until the Gold-Silver ratio breaks above resistance, until the SOX breaks down from support and until the Dow and SPX finally join the bearish activity, the prospect of a bullish continuation (hello Jeremy Grantham) does indeed remain open. Case in point, in the time it took to write this post MarketWatch put this up on page 1. Clicking the graphic will yield the article...  I just report 'em as I see 'em, and as of 06:51 US Eastern Time on May 20, the SOX is still in breakout territory and the market has not yet decided on the near-term direction. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 21 May 2014 01:37 AM PDT The media is so ready for a crash or correction, stocks might have to keep on rising instead... WE ALREADY talked about what is negative for the US stock market, writes Gary Tanashian in his Notes from the Rabbit Hole. Besides noting a young uptrend in long-term Treasury bonds vs. the S&P500, here is the 2011-2014 market leading BKX-SPX in breakdown mode. Throw in a bearish divergence in the Equity Put/Call ratio, an elevated Gold-Silver ratio right at resistance and Junk bond vs. Treasury/Investment Grade and the signs of a bearish market are not only there, they have manifested in some pretty good downside in the growth and momentum areas. But aside from the Dow Industrials and Transports already noted, there are other things that bears should pay attention to, starting as we often do with the Semiconductor index. The monthly chart shows the absolutely cut and dry situation in the SOX. It broke out to 10 year highs as it led the February market rebound and remains there today. The daily chart dials in the view. Sox will eventually either break up and out above the red line or it will fail the big picture breakout line (support) at 560. This is just an epic juncture in the SOX and potentially the market, since the Semi's were NFTRH's 'canary' to a coming and not so surprising bull phase back in early 2013. The SOX, as long as it remains above 560, is a concern to bears to go along with the Dow and Tranny. Here are some others.
Have we had a market blow off yet? It has not looked that way to me. The bull can peter out and roll over or it can end in a burst of greed and speculation, compliments of a job well done by the Fed. Neither gold nor USD have begun to reclaim the risk 'OFF' bid yet. Further, Treasury bonds, the TIP-TLT ratio, gold and especially silver have not yet sniffed out an inflation problem, giving the Fed in essence a license to do whatever the hell it wants (in staving off deflation AKA a convenient Straw Man to justify policy?). What it appears to want is continued appreciation of the 'right' assets, notably the stock market, which Yellen herself admitted is helping fuel a 'wealth effect' for the populace. To summarize, we have been tending a bear case during a mostly bearish 2014 for most of the market right along with much of the mainstream media. That alone makes me uncomfortable if I am a bear. This is not about John Hussman's data points after all, it is about the Fed. One day Hussman will come front and center. Our data points have not all come in yet to state that today is that day. Until the Gold-Silver ratio breaks above resistance, until the SOX breaks down from support and until the Dow and SPX finally join the bearish activity, the prospect of a bullish continuation (hello Jeremy Grantham) does indeed remain open. Case in point, in the time it took to write this post MarketWatch put this up on page 1. Clicking the graphic will yield the article... I just report 'em as I see 'em, and as of 06:51 US Eastern Time on May 20, the SOX is still in breakout territory and the market has not yet decided on the near-term direction. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pierre Lassonde: Mining Cycles Are Good for Royalty Companies and Investors Posted: 21 May 2014 01:00 AM PDT Pierre Lassonde revolutionized investing with the creation of the first gold royalty company. Three decades later, he is as confident in this model as ever, especially considering the difficulties of the majors in discovering large, high-grade reserves. In this interview with The Gold Report, this director and former chairman of the World Gold Council discusses the significance of the shift in gold ownership from West to East, the problem of mining scale and the results of the industry's failure to develop new prospecting technology. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold Standard Ventures Consolidates Southern Carlin Trend District Posted: 21 May 2014 01:00 AM PDT All serious gold investors know the Carlin Trend of Nevada is one of the most prolific gold producing regions of the world. Is it possible that there is an undiscovered district, not just a deposit, within that region that was missed by the majors? Jon Awde, CEO of Gold Standard Ventures, discusses how spectacular drill results have guided Gold Standard Ventures to focus on creating the southernmost mining district of the Carlin trend—the Railroad/Pinion District. At more than 40 square miles, the district is large enough to potentially sustain a mid-sized producer. In this interview with The Gold Report, Awde describes the unique challenges of proving up a series of deposits that are in the shadow of the majors and for the first time all combined under one company in a single mining district. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pierre Lassonde: Mining Cycles Are Good for Royalty Companies and Investors Posted: 21 May 2014 01:00 AM PDT Pierre Lassonde revolutionized investing with the creation of the first gold royalty company. Three decades later, he is as confident in this model as ever, especially considering the difficulties of the majors in discovering large, high-grade reserves. In this interview with The Gold Report, this director and former chairman of the World Gold Council discusses the significance of the shift in gold ownership from West to East, the problem of mining scale and the results of the industry's failure to develop new prospecting technology. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold Standard Ventures Consolidates Southern Carlin Trend District Posted: 21 May 2014 01:00 AM PDT All serious gold investors know the Carlin Trend of Nevada is one of the most prolific gold producing regions of the world. Is it possible that there is an undiscovered district, not just a deposit, within that region that was missed by the majors? Jon Awde, CEO of Gold Standard Ventures, discusses how spectacular drill results have guided Gold Standard Ventures to focus on creating the southernmost mining district of the Carlin trend—the Railroad/Pinion District. At more than 40 square miles, the district is large enough to potentially sustain a mid-sized producer. In this interview with The Gold Report, Awde describes the unique challenges of proving up a series of deposits that are in the shadow of the majors and for the first time all combined under one company in a single mining district. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pierre Lassonde: Mining Cycles Are Good for Royalty Companies and Investors Posted: 21 May 2014 01:00 AM PDT Pierre Lassonde revolutionized investing with the creation of the first gold royalty company. Three decades later, he is as confident in this model as ever, especially considering the difficulties of... Visit the aureport.com for more information and for a free newsletter | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold Standard Ventures Consolidates Southern Carlin Trend District Posted: 21 May 2014 01:00 AM PDT All serious gold investors know the Carlin Trend of Nevada is one of the most prolific gold producing regions of the world. Is it possible that there is an undiscovered district, not just a deposit,... Visit the aureport.com for more information and for a free newsletter | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 20 May 2014 11:33 PM PDT Today I’m happy to welcome back one of our most popular contributors: James Altucher. James is currently a hedge fund manager, but that doesn’t begin to explain his fascinating and varied career. A serial entrepreneur, James shunned the corporate ladder from an early age, opting instead to create something of his own. And boy, did he. James founded, built, and sold a web design company in the late 1990s for $10 million. He also founded and built stockpickr.com—and sold it, too, for another $10 million. Below, James shares why his decision to stop working for others and start working for himself was the most liberating choice he’s ever made. As you’ll read, financial riches are just one of many rewards for venturing outside of the employment comfort zone. Or, as James likes to call it, “your self-imposed jail cell.” Enjoy. Dan Steinhart P.S. For portfolio balancing purposes, a Casey Research editor needs to sell shares of Balmoral Resources. There’s no change in the recommendation for this stock, but our rules mandate that we notify subscribers so that they can sell, if desired, before the staff member may do so. |
Gold Leasing – to what extent
It's long been established that the financial system is infiltrated and controlled by criminals, however recent scandals and the economic crash of 2008 has diverted attention away from other misdeeds which should not be ignored. This report hopes to serve as a reminder that widespread corruption within the banking industry is nothing new, in fact you could say it was built that way. So here we're going to look at just a handful of crimes that the banksters hope you forget:
The first quarter for gold was a mirror image of a year ago with almost no selling by the exchange traded products and falling demand in China and India, according to the World Gold Council.
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