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Wednesday, September 24, 2014

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India's Changing Gold Culture

Posted: 24 Sep 2014 12:24 PM PDT

India has been the world's No.1 gold buyer for thousands of years. But traditions are changing...
 
TODAY marks the last day of Shradh, writes Adrian Ash at BullionVault, the period of "closed observance" on Hindu calendars when it's deemed "inauspicious" to start new ventures or make new investments.
 
The end of Shradh has a political angle. Also known as Pitru Paksha, the early autumn shutdown has been used to delay nominations for upcoming elections, reports The Times of India.
 
Fighting such "superstitions" can be dangerous. Rationalist campaigner Narendra Dabholkar was murdered in summer 2013 when pushing anti-superstition laws. This summer's delay to India's electoral process has angered many who want to reduce what they see as the stifling (and corrupting) effect of India's deep culture of religious observance.
 
Gold looms large in that culture of course (and also in India's huge bribery and corruption culture). The peak demand season in the world's heaviest consumer market starts now, running on until Diwali at the end of October. But long term, many analysts think the wider availability of luxury goods in India will dent India's gold demand, overcoming superstition where rationalism cannot. Many financial services providers think the same of their products...from bank savings to stock-market funds.
 
India's younger citizens are indeed breaking with tradition over gold, suggests this story on Mineweb. But not how Western observers might expect. Instead, some younger people have broken Shradh to buy gold at the recent low prices.
 
Forecasts of Asian households "substituting" out of gold into hi-tech consumer goods and packaged financial services are as old as the global bull market in gold, if not older. But they've proven very wrong to date. The only thing to dim India's appetite for gold has in fact been government anti-import rules...imposed because 2013's demand was so huge in response to the price slump.
 
India's gold industry is finding ways around that...literally smuggling gold in "through the backdoor" (ahem) as one expert analyst joked to me last week. News today also says the old VAT round-tripping scam...where the same metal is imported and then re-exported in a loop to earn sales tax rebates illegally...has found a new use, helping get around India's strict and stifling 80:20 rule.
 
Ancient Rome's Pliny the Elder started the trend of European commentators calling India the "sink of the world for bullion" more than 2,000 years ago. Can that culture, and the flow of metal West to East it has demanded for so long, ever be changed by flat-screen TVs or iPhones?
 
Keep a close eye on how India's demand...and the floor it's clearly helped put beneath gold prices to date...develops as Diwali investing, gift-giving and temple offering draws near in 2014.

US Dollar Breaks Through Overhead Resistance; Euro Sinks

Posted: 24 Sep 2014 12:15 PM PDT

King Dollar is back! If I am reading this chart correctly, it looks as if the Dollar is on track for to manage SIX CONSECUTIVE HIGHLY WEEKLY CLOSES. That is the first time that will have happened in more than 4 years!

The greenback has finally managed to push past a key technical chart resistance level near 85 basis the USDX.

While the trading week is not yet ended, if the Dollar can stay above this level noted on the chart to finish it out, I frankly do not see much in the way of further overhead resistance until one nears 86.50 - 87.00. If it does indeed go there, I do not think gold will be able to stay above $1200 as there should be a continuation of the general macro trade jettisoning most commodities should that occur.


The flip side to this is the abysmal showing of the Euro which continues to plummet. Simply put, the Eurozone economic growth has stalled out and its central bank is no where near talking about raising interest rates. That leaves the Dollar with its distinct interest rate advantage, the key factor that has been driving the currency markets for the last 4-5 months.


In looking at its chart, there is a bit of support just below the session low of today. Further down is a zone near 1.2665 - 1.2650. I do not see much in the way of support of any significance if the latter level were to give way. In other words, it is entirely possible that the Euro may see the 1.2000 level. You might recall that during the European sovereign debt crisis, the Euro was plumbing those depths. For TA purposes, that is a double bottom on the intermediate chart. Heaven help that currency if it were to lose that level for any reason!

With the Dollar as strong as it is, one can expect to see gold moving lower, and that is precisely what it is doing.

Here is the recent chart:


Price is attempting to stabilize near current levels; however, the key will be this week's low near the $1208 level. If the bulls can prevent the bears from taking price below that level, they have a change at stemming the bleeding and moving the market into a sideways pattern, halting the downtrend that has been in place. If not ( and especially if the Dollar continues to move higher), $1200 is going to be tested and will probably not hold. We'll just have to wait and see.

Shifting to the grains for a bit - that Corn/Wheat Spread, the one that has been keeping the big specs on the long ( and wrong) side of the corn market, once again failed near the 140 level. That just seems a bridge too far at this point. Corn managed to eke out some gains today as the forecast maps showed a rather large rain event scheduled to hit the corn belt near midweek of next week. That immediately set the bulls yapping about damaged crops, disease, delays in the harvest and the beginning of the Apocalypse. I read where one bullish analyst swore that he saw a Black Horse Rider going through the corn fields of Illinois with a big scale in his hands crying: " a quart of wheat for a denarius, and three quarts of barley for a denarius, and do not harm the oil and the wine".

We'll keep an eye on things but for now it looks to me more like a case where some shorts decided to book some profits on the forecasted rains to wait for a bounce higher to sell it again.


Also, there has been some chatter about increased export demand for US wheat, now that prices have fallen to near 5 year lows. I am interested in seeing if such develops for any reason. There are a significant amount of hedge funds and other large specs who are Long corn, and Short wheat, and if this spread reverses violently, we are going to see some interesting price action in the corn in particular.

I think the strong dollar is going to put a cap on any potential wheat rallies but that assumes that other key growing areas around the globe remain free of weather-related threats. Currently there is a large glut of wheat around but the one thing about that market is that other growing regions have to be monitored.

Wheat started the day on a strong note but lost about half its gains going in to the close. Still, it managed to maintain its footing and for a market that has been beaten with an ugly stick like it has, maybe there is something to it. Again, it is too soon to tell.


I am beginning to wonder if the cattle market is ever going to break down. It bends but does not break. Given the strength in the Dollar and the general trend towards selling commodities, and given especially the continued high price of beef which is even more expensive on the global export markets due to the strong dollar, I wonder how much longer the longs are going to keep coming in and supporting this market. Cattle are perhaps one of the few commodity markets that the longs have been able to make some money in and they seem determined to not throw in the towel, yet.

At this point I am still standing by my view that beef prices are going to be coming down by the 4th quarter and certainly by Q1 2015, but the bulls are flexing some very impressive muscles at the moment. Feeders especially are continuing to defy gravity. I frankly do not know how in the world those guys are going to be able to make the least bit of money buying feeders at these prices to sell next year.

That's it for now - the S&P 500 is on a tear once again and is back above 1990 as I type these comments. The same guys who are apparently buying equities must be the ones buying in the cattle markets because the price action is quite similar - the market will bend but then snap right back.

More later...hopefully....

September 29, 2014: This could be the most important day for gold in years

Posted: 24 Sep 2014 11:09 AM PDT

For years, we’ve heard claims the price of gold is being manipulated. Five days from now, we could find out…

The Wall Street Journal reports the Shanghai Gold Exchange will open to international trading on September 29, in the city’s new free-trade zone. The exchange will allow foreign investors to trade gold − including physical gold − denominated in China’s currency, the yuan, for the first time.

China’s goal is to gain more influence over global gold markets that have traditionally been controlled by the West. As the world’s largest gold producer and consumer, this move isn’t surprising… but some suggest it could finally set the gold price “free” from manipulation.

Writing for LewRockwell.com, author Bill Sardi says this means “there will be a marketplace where gold cannot be easily manipulated by gold futures and options (paper gold) compared to physical gold… We are going to find out the real value of gold in an open market. The same goes for silver.”

We here at The Crux can’t say for certain whether or not this is true. We have no crystal ball. But expanding the global market for gold can only be a good thing for price transparency… And if you’ve been waiting for a good reason to pick up a little more gold, this could be it.

Meet the Silver Users

Posted: 24 Sep 2014 11:00 AM PDT

Meet the Silver Users.  The silver users still maintain their ghost of an influence. Through rogue investment banks, they wield power over the price of silver. They’ve created an accident waiting to happen. An accident very much tied in to financial system. Submitted by Dr. Jeffrey Lewis, Silver Coin Investor:  One of the more persistent […]

The post Meet the Silver Users appeared first on Silver Doctors.

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Macro backdrop and flows not so hot for gold

Posted: 24 Sep 2014 10:44 AM PDT

After falling to a recent trough of $1,208.20 intraday in Asia on Monday, the U.S. Comex gold futures climbed to $1,221 on Tuesday as air strikes began in Syria.

Silver Eagles & the SLV: The Chart Every Silver Investor Should See

Posted: 24 Sep 2014 09:30 AM PDT

There is a chart that every silver investor needs to see.  Especially now, as the Fed and Central Banks continue to manipulate the precious metals lower while propping up the broader stock and bond markets.  Even though precious metals sentiment is at record lows, this normally represents a turning point in the gold and silver […]

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Venezuelan gold back in spotlight

Posted: 24 Sep 2014 09:29 AM PDT

Venezuela's gold reserves are back in focus after a Bank of America economist was given a tour of the central bank's underground gold vault in Caracas and allowed to view the bank's considerable gold holdings.

SILVER Breakdown Hints At USD Turning Point

Posted: 24 Sep 2014 09:25 AM PDT

investing

Bill Bonner: This is the "military" secret to getting rich

Posted: 24 Sep 2014 09:21 AM PDT

From Bill Bonner, Chairman, Bonner & Partners:

[Today], let’s begin a short series on “How to Get Rich.”

First, you have to learn to love being poor.

You may think I’m joking. I’m not. I’m just exaggerating a little. The point is you can’t be afraid of poverty. Because if you are going to get rich, you’re going to have to take chances.

You may start a business, for example. Or make an investment. Typically, you make money by going “all in” on an investment or business.

It’s similar to a military campaign. When you go on the attack, you concentrate your forces – your time and your assets – on a narrow front, where you have an advantage over your opponent.

Making money is competitive, too. You give yourself an edge by concentrating your forces on a limited front where you might make a breakthrough.

Later on – to protect what you have earned – you’ll take the opposite approach. You’ll disperse and diversify your assets.

The risk in concentrating your attack on a limited front is that it may not work out. You may lose the battle.

Then, you’re in a helluva mess.

Financially, if your concentrated efforts don’t work out, you could find yourself very, very poor. You may work for years on a startup, for example, only to have it go bust.

Or you may put all your money into an investment that you are sure will pay off – eventually. And then it never does!

If that is a risk you can’t stomach, you’re not likely to get rich. You’re better off sticking with the tried and true: a good job, a good career, a decent income.

Get a good education. Say the right things. Try not to stand out in any way. Be a good parent, a good citizen, a good person.

Live a good life… and enjoy it.

Taking Your Chances

Getting rich requires a more original approach. You have to take chances. And you can’t be afraid of how it might turn out.

I was fortunate. I didn’t have any money when I was young. And I found that I enjoyed poverty. In fact, when I finally came into some money later in life, I almost regretted it. Some of my biggest pleasures and greatest sources of satisfaction were lost to me… as I’ll explain.

But first, let’s talk about poverty…

What’s really so bad about it?

It is certainly true that the “best things in life are free” – to a point.

There are three things in life that really matter: what you do… where you do it… and whom you do it with. Money is involved in these things, but not necessarily in the way you think.

When you are rich you can do a lot of things that look like fun. But from my experience… and the experience of the other rich people I know… these things are often not so much fun after all.

One friend made a fortune in automobiles. He figured out how to sell them. Then when he had perfected his business model, he took it on the road. He created mega dealerships all over the country. Then – still in his 50s – he sold out. He had a fortune.

But what to do?

“I took up big game hunting,” he told me. “I went on trips all over the world. Mongolia. Africa. South America. I went places where tourists never go. And I killed so many animals I had to buy a warehouse to store the trophies.

“But you know what? It was all BS. Trying to fill the time. Trying to pretend that it is important whether you kill the animal or not. It was exciting and fun for a while, but I got sick of it. I wanted to get back into the auto business. That’s what I really liked doing. That’s where the real adventure is.”

Building a fortune is more fun than having one…

Regards,

Bill

Crux note: Bill’s wealth-building advice is unconventional… but it’s undeniably powerful. In fact, it’s not only allowed him to build a near billion-dollar fortune… it’s responsible for turning over 50 of his employees into millionaires as well. Click here to see how you can start using Bill’s wisdom for yourself today.

Metals market update for September 24

Posted: 24 Sep 2014 09:14 AM PDT

Gold climbed $7.60 or 0.63% to $1,222.90 per ounce and silver fell $0.01 or 0.06% to $17.80 per ounce yesterday.

It's surprisingly simple to teach your children to be millionaires

Posted: 24 Sep 2014 08:47 AM PDT

By Porter Stansberry, founder, Stansberry Research:

Our education system is designed to produce employees… not leaders, not entrepreneurs… and certainly not millionaires.

Most people believe what they do about money, commerce, income, saving, etc. because that’s what they’ve been taught. As a result, they ignore their own experiences… sometimes for many years. That’s a shame.

My advice for 20-year-olds is simple: live beneath your means, stay out of debt, and work on increasing your income. This is far more important than trying to achieve any particular investment result.

If you borrow $100,000 to go to college, it is very, very unlikely you will be able to earn enough income and save enough money to repay the loan and end up with a million-dollar net worth by the time you are 40. But very few people can avoid the siren song of debt. That’s why I always encourage people to look at the total costs of things – interest included – before they buy. (That’s especially true of college. Don’t forget the opportunity cost.)

Almost all college graduates will find their degree isn’t worth much and it’s certainly not worth what they paid for it.

According to the Library of Economics and Liberty, on average, folks who go to college (but don’t finish) make $743 per week (around $38,000 per year). Folks who finish earn $1,043 per week (around $54,000 per year). Thus… even if you assign all of the difference in income to the degree (instead of to the differences in IQ and other abilities)… a college degree adds up to a whopping income difference of just over $1,000 per month. In other words, a college degree is probably worth about what I pay my yard man each year.

So… what will I tell my children about becoming independently wealthy by the time they’re 40?

I will tell them that there are many more important things in life – like learning for the sake of broadening your mind, traveling, making friends, falling in love, and having children. You don’t need to be rich to live a good, full life. But if they seem to be more interested in money than anything else, I will tell them to do two things…

First, I will tell them to work – hard, and for as long as possible. Second, I will tell them to save and save and save…

Consider this. Let’s say you begin working hard at age 15. That’s when I got my first hard, regular job. I was the kennel boy at the local vet. I got up before school and hosed out dog crap every morning from 5 a.m. to 7 a.m. I repeated the routine every evening. I also mowed lawns and did other odd jobs as often as I could get them.

Let’s say you started working like this when you were 15. When you start out, you’re making almost nothing – $9.50 an hour. Assuming you’re able to work 40-hour weeks, you’ll make $380 per week. Assuming you work 50 weeks a year, your gross take-home pay will be a paltry $19,000 a year. But that’s OK… you’re living at home. You can easily save half your gross pay. What about taxes? Well, like Obama says, you didn’t build that. You gotta pay your taxes too, kid.

In our example, the kid would turn 16 years old with $9,500 in the bank. True, that’s a hardworking kid. But I’ve seen it done. It’s not impossible. Now, let’s assume he piles the money into a diversified portfolio of short-term, investment-grade corporate bonds. Nothing fancy. He earns 5% a year after taxes. Let’s also assume our kid is a hustler. By looking for and taking better jobs and earning bonuses, he’s able to grow his income by 10% a year. That’s not very hard for good workers – especially when they’re starting out at $9.50 per hour.

If our kid keeps this up through when most of his peers have finished college, he’ll have saved $157,000 by the time he turns 25.

This approach doesn’t require any special skills or degrees. It doesn’t require any kind of miracle – other than hard work, discipline, and perseverance. Yes, those traits are very unusual, but they can all be learned. They don’t require a gifted IQ.

He simply has to do a good job. He has to learn skills that are valuable to businesses and other people. He has to be utterly reliable.

By the way, the young people I meet today often have a very unfortunate characteristic: They tie their feelings about their self-worth to their spending, instead of to their net worth (their saving). They’ve badly confused the near-term experiences of living rich with the long-term goals of being rich.

I can only chuckle at this sentiment. What breeds success is smarts, dedication, and a sustained effort to improve. I’ve never seen a man earn a raise or a commission because he was living better. I’ve seen lots of people forgo enjoying themselves today to be better-prepared for work tomorrow.

At some point… maybe 15 years after he starts working, our kid will need to start a side business to continue growing his income every year. That will require a bit more work. But it’s not impossible. That’s when his gross pay finally breaks well past average for a valuable employee (over $70,000 per year). But keep in mind… there’s no windfall payday for our kid. He just keeps plodding along… earning a little bit more every year and faithfully saving like a squirrel in October.

Just doing this… starting at just over minimum wage, working hard, saving, and growing income at a reasonable pace… will make you rich. By the time our boy is 40, he’ll have a nest egg worth $976,000. He’ll have an income over $187,000 per year. He will be rich by any standard.

What variables really matter? Well, if you assume annual investment returns at 15% instead of 5%, his nest egg only goes up to $1 million at 40 – about $25,000 more net worth. Investment results make almost no difference to wealth building. (They make a huge difference to folks who are already wealthy.) What about saving? What if you drop our kid’s savings rate back to a normal 15%? Even with a 15% annual investment return, the size of the nest egg collapses to only around $318,000.

Saving is the single biggest variable.

What about working? What if you assume our guy likes to take a lot of time off. Say he only works 40 weeks a year instead of 50. He goes to Europe or goes surfing… what happens then? Nest egg drops another $100,000 down to $254,000. In other words… even if our guy does well in his career… and does great with his investments… but he only saves like most people do… and he only works as hard as most people do… he’ll end up like most people: without a pot to piss in.

On the other hand, if he can learn to save like most people never will and work harder than just about anyone else… he’s almost certain to be very, very rich by the time he’s 40.

PayPal Gets Serious About Bitcoin – Is the Price About to Move?

Posted: 24 Sep 2014 08:30 AM PDT

Although PayPal has been publicly flirting with Bitcoin for some time, today's announcement marks the company's "first formal offering to the Bitcoin community," according to Coindesk: Today we are announcing PayPal's next step in helping merchants accept Bitcoin payments. PayPal has entered into agreements with leading Bitcoin payment processors BitPay, Coinbase and GoCoin. Starting today, these agreements let PayPal digital goods merchants […]

The post PayPal Gets Serious About Bitcoin – Is the Price About to Move? appeared first on Silver Doctors.

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Gold And Silver Voodoo Analysis

Posted: 24 Sep 2014 08:00 AM PDT

gold-eagle

Ultra-Wealthy Rush To Buy Gold Bars

Posted: 24 Sep 2014 07:30 AM PDT

Did you know that the number of gold bars being purchased by ultra-wealthy individuals has increased by 243 percent so far this year?  The super-rich are looking to protect their wealth through buying record numbers of “Italian job” style gold bars, according to bullion experts. The number of 12.5kg gold bars being bought by wealthy […]

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Gold smuggling in India exceeds 50 tons in 10 days

Posted: 24 Sep 2014 06:51 AM PDT

The smuggling of gold into India has spiked during recent days, mainly due to increased demand for the precious metal ahead of festivities.

Singapore offers gold-dispensing ATMs

Posted: 24 Sep 2014 06:40 AM PDT

Singapore has launched two Automated Teller Machines (ATMs) that dispense gold, making it the fourth country in the world to do so.

Macquarie lowers platinum price forecast, nudges gold higher

Posted: 24 Sep 2014 06:32 AM PDT

But a recent platinum sell-off is overdone, Macquarie analysts say.

Tocqueville’s John Hathaway Asks: Do You Know Where Your Gold Is?

Posted: 24 Sep 2014 06:00 AM PDT

In this 20 page MUST READ report, Tocqueville’s John Hathaway breaks down why The Fed denied Germany’s gold repatriation request, the disappearing COMEX gold (with registered inventories currently at their lowest total since 1998), synthetic vs physical gold (rehypothecation vs the real thing), dark pools of London, gold as a source of bullion bank funding, […]

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Jim Willie: The Crash Heard Round the World- Saudis to Reject USD for Oil Payments

Posted: 24 Sep 2014 06:00 AM PDT

Putin kicked out the Rothschild bankers from his country.  Putin interrupted the USGovt heroin trade supply routes out of Afghanistan. Like Abraham Lincoln 150 years ago, the elite banker chambers wish to remove Putin and to suppress Russia, but the sprawling nation has joined at the hip with China.  Thus Russia cannot be isolated any more […]

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Gold's fall to pump up Indian demand - bullion traders

Posted: 24 Sep 2014 05:25 AM PDT

Some expect demand to grow significantly in the coming months with prices of gold - low - luring consumers in India to buy jewellery.

Venezuela’s Gold Appears To Be Still In Venezuela But For How Long?

Posted: 24 Sep 2014 05:21 AM PDT

▶ Where is Venezuela’s 366 tonnes of gold? ▶ Does Venezuela still control and own unencumbered it's own gold reserves?

▶ Is any of the country’s gold encumbered, loaned or leased to Goldman Sachs or other banks? 

See ‘How to Buy Gold and When to Sell’ Webinar Here


Celebrations as Venezuela's gold is repatriated to Caracas in 2011

▶ Where is Venezuela’s 366 tonnes of gold?
▶ Does Venezuela still control and own unencumbered it's own gold reserves?


Former President Hugo Chavez and a London Good Delivery Gold Bar (400 oz)

▶ Bank of America economist on visit to Venezuelan central bank last week was allowed to view the bank’s gold vault and the gold repatriated by President Hugo Chavez

▶ Is any of the country’s gold encumbered, loaned or leased to Goldman Sachs or other banks?
▶ Is there a possibility of this given the Venezuelan economy’s weak position?

▶ An arbitration court of the World Bank ruled that Venezuela needs to immediately repay $740 million to US mining company ‘Gold Reserve’.

▶ Repayment is connected to Venezuela having terminated Gold Reserve’s gold and copper mining project in 2009 as part of Chavez’s nationalisation of energy and mining projects

▶ This ruling could set a precedent for other companies to seek compensation from Venezuelan government during a time in which Venezuelan economy is weak and heavily indebted
▶Venezuela’s international credit ratings will now be in an even worse state, as will its international bond servicing situation

▶Chinese have also lent to Venezuela in return for ongoing deliveries of oil. Could Venezuela now need to mobilise more of its gold again to help finance its debts? Will China seek to use its considerable financial and economic power to build a stronger economic and political relationship with Venezuela?

▶ The confiscation also highlights the risks to precious metals mining companies operating in politically unstable countries and the stock specific risk of investing in mining shares

Venezuela’s gold reserves are back in focus after Francisco Rodríguez, a Bank of America economist, revealed in a client note yesterday that while on a visit to the Central Bank of Venezuela last week, his party was given a tour of the central bank’s underground gold vault in Caracas and allowed to view the bank’s considerable gold holdings.

This includes the sizeable quantities of Venezuela’s gold reserves that were very publically repatriated back to Caracas by President Chavez in 2011 and 2012.


Former President Hugo Chavez and a London Good Delivery Gold Bar (400 oz)

Rodríguez covers the economies of Venezuela, Columbia and Peru on behalf of Bank of America Merrill Lynch (BAML), and is a native of Venezuela, having also previously been head of Venezuela’s Congressional Budget Office.
Rodríguez was in Caracas last week for meetings with government and central bank officials including Nelson Merentes, the president of the country’s central bank, the Banco Central de Venezuela (BCV).

According to the latest figures published by the World Gold Council (WGC), Venezuela holds 367.6 tonnes of gold in its reserves, representing 70.6% of its official reserves of foreign exchange and gold.

At current market prices, the official gold holdings are worth nearly $14.5 billion. Venezuela is one of the few large holders of gold whose gold holdings represent such a high percentage of total foreign exchange and gold reserves, the other countries being the US, Germany, Italy, France and Portugal.

Unlike the US, Germany and Italy, and possibly Portugal, Venezuela actually has the majority of its gold in its own vaults and not stored abroad. As to whether any of Venezuela’s gold reserves are leased, loaned, collateralised or otherwise encumbered is another question.

In August 2011, the Venezuelan government surprised the gold market when it announced that it would seek to repatriate, at short notice, 160 tonnes of its foreign held gold reserves back to Venezuela for safekeeping. The government also revealed at that time where its gold was located and in what form it was held.

Celebrations as Venezuela's gold is repatriated to Caracas in 2011

Of the 366 tonnes held at that time, 154 tonnes was already stored in Venezuela, 99 tonnes were in custody at the Bank of England, 12 tonnes in custody with the Bank of International Settlements, and 17 tonnes in custody with JP Morgan. Another 82 tonnes of gold was held in term deposits with a group of bullion banks consisting of HSBC, Barclays, Standard Chartered, the Bank of Nova Scotia and BNP Paribas.

Gold on term deposit earns interest for the central bank but the bullion banks that either accepted the original deposit or took over an existing term deposit would likely have sold or lent the gold in the market. Yet, they would be  obliged to return the same amount of gold when the Venezuelans requested that it be repatriated.

The Venezuelan significant repatriation request, in the summer of 2011 may have been a contributing factor to gold’s strong price appreciation at that time, as market participants were forced to find 160 tonnes of physical gold bullion at short notice.
The 160 tonnes of gold was transported back to Caracas with much fanfare in a series of flights from late 2011 to early 2012, with the last flight carrying 14 tonnes of gold from Paris. The fact that this gold was sourced in Paris suggests the possibility that it was sourced from the Banque de France, meaning that the Banque de France may also have been involved in helping to secure the necessary physical to transfer to Venezuela.

Wherever the repatriated  gold came from, it is now residing in a vault in Caracas.
Before the 2011/2012 repatriation, Venezuela held 211 tonnes of its gold reserves abroad. After bringing back 160 tonnes, this still leaves 51 tonnes outside the country. This remaining foreign stored gold is, according to Bank of America's Francisco Rodríguez now held at the Bank of England.

Rodríguez also revealed that the gold held in Banco Central de Venezuela vault is in approximately 5 smallish compartments, and that in his view, all the gold that would be expected to be in the vault is in fact in the vault.
This would be about 316 tonnes of gold, which is just over 25,000 good delivery gold bars. With 5 compartments, that would be about 5,000 bars per compartment.

In November 2013, Bloomberg revealed that both Goldman Sachs and Bank of America had proposed loan deals to Venezuela. Bank of America’s proposal was said to involve the bank acting as an intermediary to facilitate up to $3 billion in payments for Venezuelan companies seeking US dollars.

Goldman Sach’s proposal was said by Bloomberg to involve a loan or swap of $1.68 billion in US dollars but collateralised by $1.85 billion of the Venezuelan central bank's gold. That would have been about 47 tonnes of gold at the time.

Banco Central de Venezuela denied that it was considering the Goldman Sachs deal, but its unclear if this swap was ever implemented.
If it was, then part of the Banco Central de Venezuela’s gold is currently spoken for. This would more likely be gold stored at the Bank of England than in Caracas.

With the Venezuelan economy remaining weak and Venezuelan bonds dropping sharply in value, it may be just a matter of time before Venezuela needs to use some of its gold for borrowing purposes.

Last week, S&P cut Venezuela's credit rating from B – to CCC+. S&P said that they "assign CCC+ ratings in instances where we assess that issuers face at least a one-in-two likelihood of default over the next two years."
Hedge funds are said to have started looking at Venezuela's debt with a view to possible default.

On Monday in other gold developments in Venezuela, the International Centre for Settlement of Investment Disputes (ICSID), an arbitration court of the World Bank for investment disputes, ruled that Venezuela needs to immediately repay $740 million to a US mining company called ‘Gold Reserve’. This repayment is connected to Venezuela having terminated Gold Reserve’s Las Brisas gold concession project in 2009 as part of the then President Hugo Chavez’s nationalisation of Venezuelan energy and mining projects.

This ICSID ruling could now set a precedent for other companies to seek compensation from the Venezuelan government during a time in which Venezuelan economy remains weak and heavily indebted. The ruling and earlier confiscation also highlights the stock specific risk inherent in precious metals mining stocks and the risks that these companies face when operating in politically unstable countries.

As the Venezuelan currency and bond market lurches into another possible crisis, it looks like the large international investment banks are waiting to provide increased financing or restructuring while the hedge funds look to profit on the sovereign debt.

The Chinese also supply financing to Venezuela on the understanding of getting continuous oil deliveries in return. Just last weekend the Joint Chinese – Venezuela Fund got an inflow of $2 billion from China to help with Venezuelan infrastructure and housing spending.

With China on one side and US banks on the other, it will be interesting to see who ends up financing the lions share of any needed Venezuelan sovereign financing packages.
Venezuela's gold reserves may then come into play in some way or another.

MARKET UPDATE
Today's AM fix was USD 1,224.00, EUR 952.87 and GBP 746.11 per ounce.
Yesterday's AM fix was USD 1,225.00, EUR 951.01 and GBP 748.09 per ounce.

Gold climbed $7.60 or 0.63% to $1,222.90 per ounce and silver fell $0.01 or 0.06% to $17.80 per ounce yesterday.


Gold in USD – 5 Years (Thomson Reuters)

Singapore gold fell 0.1% to $1,221.04 an ounce. Gold bullion had climbed 1.5% yesterday, but trimmed gains to finish near 0.7%.  Surprisingly, even the heightened geopolitical risk did not spur safe haven demand for the yellow metal.

Gold sentiment was weak yesterday despite price gains overnight. The largest Gold ETF, SPDR Gold Trust, saw a dip in its holdings Tuesday (1.2 tonnes to 773.45 tonnes), its lowest since 2008.

A strong dollar has been a contributing factor to gold’s lack lustre demand, coupled with strong U.S. economic data such as manufacturing activity at a 4 1/2 month high has increased speculation for an earlier than expected rate hike.

The U.S. Federal Reserve's next policy meeting is October 28 & 29th.

by Ronan Manly , Edited by Mark O'Byrne

See ‘How to Buy Gold and When to Sell’ Webinar Here

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Venezuelas Gold Appears To Be Still In Venezuela But For How Long?

Posted: 24 Sep 2014 05:02 AM PDT

gold.ie

This chart says one essential commodity is officially "dirt cheap"

Posted: 24 Sep 2014 05:00 AM PDT

From Bloomberg:

An ounce of gold is worth the most bushels of corn in at least four decades, signaling the grain is "dirt cheap," according to AgriVisor LLC.

The CHART OF THE DAY shows one ounce of gold buys more than 370 bushels of corn, the most since the data for U.S. trading begins in 1975. December futures for the grain have tumbled 28 percent this year as global farmers are set to produce a second straight record harvest. Bullion is up 1.6 percent in 2014.

"Understanding the relative values can help one determine in which sectors investment money might be channeled," said Dale Durchholz, the senior market analyst for Bloomington, Illinois-based AgriVisor. "Corn is a better value than gold."

The grain's price declines can help spur more demand from makers of ethanol and livestock producers, Durchholz said. Global consumption is already forecast at an all-time high of 970.7 million metric tons by the U.S. government.

"Trader attitudes are universally pessimistic," Durchholz said in a telephone interview. "While it's difficult to make a fundamental case for a rally with record supply on the horizon, this is not the time to be getting short corn."

On the Chicago Board of Trade, December corn futures fell 1.4 percent yesterday to $3.255 a bushel, after touching $3.2475, the lowest since June 2010. Gold futures December delivery rose 0.3 percent to $1,222 an ounce on the Comex in New York.

Gold: Support at 1220/1208.36, resistance at 1234.80/1241.60

Posted: 24 Sep 2014 04:10 AM PDT

fxstreet

Ichimoku Cloud Analysis: GBP/USD, Gold

Posted: 24 Sep 2014 04:10 AM PDT

fxstreet

Gold Vulnerable To Renewed USD Momentum

Posted: 24 Sep 2014 03:30 AM PDT

dailyfx

MONEY WEEK : How low can gold and silver go?

Posted: 24 Sep 2014 03:25 AM PDT

moneyweek

Can gold and silver really fail when stocks and bonds fall?

Posted: 24 Sep 2014 01:17 AM PDT

If the Fed holds its course this autumn then a day of reckoning is coming both for stocks and bonds. For stocks basically the money will run out, the QE lifeline is cut. For bonds higher interest rates are toxic

In such circumstances can the precious metals really fail to rally as safe haven options? This is not 2008-9 when interest rates fell through the floor and boosted bonds to the immediate detriment of gold and silver.

Toxic interest rates

What is left for investors when their known universe of stocks, bonds and let us not forget real estate take a pasting? It’s always been the same in any money bubble in history: gold and silver are the only winners as the money that the central banks can not print.

The giant, debt-fuelled investment bubble pumped up since the global financial crisis by the central banks is like any other bubble in history. It will have to be purged from the system.

The foolish thing to imagine is that the central bankers will be in charge during this unwinding process. They can try to help banks here and there but the lesson of history is that when the markets take over then the central bankers are exposed as manipulative charlatans with no real power.

It is not really going to be any different this time is it? The problem for the naysayers is that central banks always look more and more omnipotent until they suddenly are not. The consensus is utterly convinced these guys can walk on water until they fall in and drown.

Good timing

Gold and silver holders have the right asset at the right time eventually. Holding US treasuries or stocks that are both in huge valuation bubbles right now will be seen to be sheer lunacy with the benefit of hindsight.

Never before will so much be lost by so many in this correction. Holding the antithesis of these assets makes excellence good sense and indeed many rich investors around the world are stocking up on precious metals, not least of whom are the central banks who of course know exactly what is coming.

Remember too that the US dollar will quickly reverse when its bond market crashes.

GOLD - Triggers Recovery, Eyes Further Upside

Posted: 24 Sep 2014 01:15 AM PDT

oilngold

Notes On Carnage In Gold And Silver

Posted: 24 Sep 2014 01:15 AM PDT

investing

Gold: The Bewitching Hour Of A Triple Bottom Nears

Posted: 24 Sep 2014 01:05 AM PDT

investing

Gold finds lower highs

Posted: 24 Sep 2014 01:00 AM PDT

fxstreet

Gold Recovery May Be Ahead, US Dollar Vulnerable to Pullback

Posted: 24 Sep 2014 12:55 AM PDT

dailyfx

CHARTS : Silver continues to lose its shine

Posted: 24 Sep 2014 12:45 AM PDT

fxstreet

Gold to Silver Ratio Jumps the Creek of Resistance

Posted: 24 Sep 2014 12:35 AM PDT

investing

Euro heading down to $1.18 next year warns BNP Paribas

Posted: 24 Sep 2014 12:13 AM PDT

Has the euro just bottomed out or is it on the way to the bottom? Phyllis Papadavid, senior global-currency strategist at BNP Paribas SA, says she expects the euro to fall to $1.25 by the end of this year and to $1.18 by the end of 2015.

She also discusses the pound and New Zealand dollar with Anna Edwards and Mark Barton on Bloomberg Television’s ‘Countdown’…

Gold Price Suppression Covered Fully by GATA’s Chris Powell on ‘The Larry Parks Show’

Posted: 23 Sep 2014 11:15 PM PDT

"JPMorgan et al capped---and then beat the rallies down"

¤ Yesterday In Gold & Silver

After rallying a few dollar in early Far East trading on their Tuesday morning, the gold price didn't do much until about 9:20 a.m. BST in London.  The two-step price rally got capped at, or just after, the noon London silver fix---and by the 8:20 a.m. Comex open in New York, almost all the gains had vanished.  The gold price traded flat from there into the 5:15 p.m. EDT close of electronic trading.

The low and high ticks were reported by the CME Group as $1,214.70 and $1,237.00 in the December contract.

Gold finished the Tuesday session at $1,222.90 spot, up $8.10 from Monday's close, but would have obviously closed materially higher if allowed to do so.  Net volume was 140,000 contracts, with a big chunk of that used by JPMorgan et al to put out the rally fire in morning trading in London.

Brad Robertson sent along the 5-minute gold chart for the appropriate period---and you can see where all the volume occurred.  Note the big volume spike at the noon silver fix in London at 5:00 a.m. MDT on this chart.  That's the moment that last big spike in the gold price occurred.  The sell-off began shortly after that.  Don't forget to add two hours for EDT, as the time on this chart is MDT.  The 'click to enlarge' feature really helps here.

The silver price spiked as well shortly after 9 a.m. in London---and the price got hammered flat just as it caught sight of the $18 spot price---and it was obvious that there was a "Do Not Pass $17.95 Spot" line in the sand after that, when you check the Kitco chart below.

The low and highs were reported as $17.61 and $17.99 in the December contract.

Silver finished the Tuesday trading session at $17.78 spot, up the magnificent sum of 5 cents the ounce.  Net volume was 44,500 contracts, with half of that coming before the Comex open, as da boyz were obviously at battle station in this metal as well.

Platinum's rally began right at the 10 a.m. open in Zurich---and met the sellers of last resort around 9:20 a.m. London time.  Like gold, platinum also had a secondary rally that got capped shortly after the noon London silver fix---and it was all down hill from there.  Da boyz turned a big gain into a 3 dollar gain.

Palladium followed a similar pattern, although it managed to shake off the selling in the New York session---and actually rallied a bit until shortly after 11 a.m. in New York.  Then it traded ruler flat into the 5:15 p.m. close of electronic trading.  Palladium closed up 12 bucks but, like all the other precious metals yesterday, would have closed at an eye-watering price if da boyz had just put their collective hands in their pockets.  But, dear reader, that's precisely why they're there.

The dollar index closed late on Monday afternoon in New York at 84.70---and didn't do much until shortly after 2:30 p.m. Hong Kong time.  At that point it began to drift lower---and that decline really picked up steam starting at precisely 9 a.m. BST in London.  The low tick of 84.37 came minutes before 8:00 a.m. EDT.  From there it rallied back to 84.75 before trading more or less sideways into the close.  The index finished the trading day at 84.70---unchanged on the day.

There certainly was correlation between the dollar index and the precious metal price at the first part of the index move, but it was obvious that JPMorgan et al had to work hard to make the precious metal prices fit the dollar index action.   And in my opinion, they were less than successful.

The gold equities gapped up a bit over 2 percent at the open, sold off a bit into the 11 p.m. EDT London close---and then rallied until 3 p.m. before they got sold down a bit into the close.  The HUI finished up 2.02%.

The silver equities also jumped up at the open---and they followed a very similar path to the gold stocks, as Nick Laird's Intraday Silver Sentiment Index closed up 2.26%.

The CME Daily Delivery Report showed that 1 lonely gold contract and 31 silver contracts were posted for delivery within the Comex-approved depositories on Thursday.  There was nothing exciting to look at is as far as issuers and stoppers went, so I shan't link the webpage today.

The CME Preliminary Report for the Tuesday trading session showed that there are 14 gold and 113 silver contracts still open in the September contract---minus the contracts posted in the previous paragraph.

Another day---and another withdrawal from GLD.  This time it was 38,465 troy ounces.  And as of 9:56 p.m. yesterday evening, there were no reported changes in SLV.

Another day---and another decent sales report from the U.S. Mint.  They sold 2,800 troy ounces of gold eagles---500 one-ounce 24K gold buffaloes---345,000 silver eagles---and another 100 platinum eagles.

Mint sales for September are substantially ahead of August sales already---and I have a story about that courtesy of Mark O'Byrne over at goldcore.com in the Critical Reads section further down.

It was a pretty big day in both gold and silver over at the Comex-approved warehouses on Monday.  In gold, there was only 1,125 troy ounces reported received, but a chunky 164,093 troy ounces was shipped out.  Of that amount, 160,750 troy ounces came out of JPMorgan's vault.  I've seen that number before, so I decided to divide it by 32.15 troy ounces---and came out with precisely 5,000 kilobars of gold.  The link to that activity is here.

In silver there was a very chunky 1,204,226 troy ounces reported received---all into the CNT Depository---and only 1,000 ounces were shipped out.  The link to that action is here.

I have a reasonable number of stories, but the most import one is the last one.  So if you have limited time, just read the headlines of the other stories as you work your way down to the last offering of the day.  Its title is today's column headline.

¤ Critical Reads

Mortgage Originations Down By 60-70%…..But Everything Is OK!

Mortgage originations for the first quarter of this year fell off a cliff.  JPMorgan reported a decline of 71 percent, as I recall, and I think Citibank reported a drop of 66 percent.  Now, the second quarter’s bloodletting has come in and the numbers are about the same… down more than 60 percent year-over-year, if memory serves and it often does.

I’m not bothering to look any of these numbers up and doing this by memory because the details don’t matter… my point will be the same regardless of a few percentage points in one direction or another on any given statistic.  I’m close enough in all cases, anyway.

Forbes reported that the first quarter of 2014, “saw the lowest mortgage origination volumes since Q3 1997.”  And the headline, “MBA Lowers Mortgage Originations Forecast, came with a story explaining that “the updated refinance total is around 60 percent lower than 2013 refinance originations.”

Even credit unions went straight into the tank this year, originating an annualized $42.6 billion in real estate loans in the first quarter, down from $102.9 billion in the first quarter of 2013, according to an Nation Credit Union Association (NCUA) press release.

This longish, but very interesting guest commentary appeared on David Stockman's website yesterday---and I thank Roy Stephens for today's first news item.

Shrinking Bond Desks Taken by Journeymen as Masters Fade

It was the profession that inspired Sherman McCoy in the novel “The Bonfire of the Vanities.” In the 1980s, the excitement in the trading room, with hundreds of people talking on the phone, was palpable, like a sporting event, said Kerry Stein, head of credit trading at Lloyds Securities Inc.

Those days are gone.

“It’s surprising how quiet a place could be compared to what I had known,” said Stein, who began trading bonds in 1985 at Drexel Burnham Lambert Inc., the house of Michael Milken, who was nicknamed the junk-bond king.

As trading in dollar-denominated bonds declined 22 percent in the past five years to an average daily $809 billion, so have the jobs, leaving even some of the most senior traders and salesmen moving from firm to firm. Dozens of journeymen are populating an industry that used to attract the young in throngs, lured by money and prestige, according to Michael Maloney, president of fixed-income recruiting firm Michael P. Maloney Inc.

This news item appeared on the Bloomberg Internet site at 7:52 a.m. Denver time on Tuesday morning---and I thank West Virginia reader Elliot Simon for sending it our way.

Record-breaking year for contemporary art

The contemporary art market, buoyed by high demand and massive growth in China, smashed through the $2-billion mark for the first time in a record-breaking 2013/14, according to new figures released on Tuesday.

In the year from July 2013, sales of contemporary art at public auctions reached $2.046 billion dollars, up 40 percent on the previous year, according to Artprice, a Paris-based organisation which keeps the world's biggest database on the contemporary art market.

This growth, despite a gloomy global economic climate, came as China pushed past America to top the world market by raking in 40 percent of auction earnings.

"As many pieces are being sold in China as in the United States, United Kingdom and France together," said Artprice in its annual report.

This interesting AFP article, filed from Paris, appeared on the news.yahoo.com Internet site early yesterday afternoon EDT---and it's courtesy of reader M.A.

Renowned Market Historian: BABA Marks The Top

Wouldn’t it be ironic if this great bull market ended last Friday, on the occasion of Alibaba’s record-setting IPO, the largest in history?

More than a few of the investment advisers I monitor are entertaining that possibility, especially in light of Monday’s triple-digit loss in the Dow and the NASDAQ's decline of more than 1%. Alibaba dropped over 4% on its second day of trading.

Those advisers point out that history’s most significant market tops have often been accompanied by high-profile events that prompt the average investor to overcome any residue of skepticism they may be harboring.

Nevertheless, there have been a number of disturbing developments in recent months that distinguish today’s market from those that prevailed at other points in this bull market. And, according to at least one market historian, these developments suggest that a market top of no small significance is imminent.

This commentary by Mark Hulbert appeared on the David Stockman website yesterday sometime---and it's the second offering of the day from Roy Stephens.

Time to worry? Russell 2000 hits 'death cross'

The Russell 2000 has been diverging from the broader market over the last several weeks, and now technicians point out it has flashed a bearish signal. For the first time in more than two years, the small-cap index has hit a so-called death cross.

A death cross occurs when a nearer-term 50-day moving average falls below a longer-term, 200-day moving average. Technicians argue that a death cross can be a bearish sign.

While traders have already been quite bearish on the Russell 2000 so far this quarter, no other major U.S. index is near its death cross.

More evidence of the recent weakness in small-cap stocks: the Russell 2000 is currently about 7 percent below its all-time high set at the start of the quarter on July 1, while both the Dow and S&P 500 are just off their own record levels hit last week.

This CNBC story showed up on their website at 1:23 p.m. EDT on Monday afternoon and it's the first of two articles I found in yesterday's edition of the King Report.

Rockefellers to sell oil assets as part of $50B global warming fight

The Rockefellers, who made their vast fortune on oil, will on Monday join and other philanthropies and high-wealth individuals in a pledge to sell and get out of a total of $50 billion US worth of fossil fuel assets.

The Global Divest-Invest coalition will announce Monday that the Rockefeller family and others have joined the global movement to divest fossil fuel investments, a day before 120 heads of state address the United Nations to discuss what efforts their countries are making to address a marked long-term increase in greenhouse gas emissions.

Since the movement began in 2011, some 650 individuals and 180 institutions which together own $50 billion in assets have pledged to divest from fossil fuels over five years using a variety of approaches.

I don't know why this is such a big story, as someone else will be happy to buy these assets---and the pollution these companies produce will still be there.  But if you're a desperate environmentalist, any port in a storm, I suppose.  This article was posted on the very left-leaning cbc.ca Internet site on Monday---and it's courtesy of reader Brad Robertson.

In two charts: Mario Draghi's plan to save the eurozone isn't working

After a new monetary stimulus package failed to drum up appetite from the euro area's biggest banks, two gauges of confidence in the eurozone recovery have fallen.

Banks shunned the European Central Bank's (ECB) most recent measure, which attracted just attracted just €82.6bn (£65.2bn) of interest from banks this September.

Designed to revive inflation in the eurozone, the demand was much lower than the €150bn (£120bn) expected by analysts.

The poor performance has been reflected in measures of confidence, as analysts worry that the eurozone could drift closer towards outright deflation.

This article showed up on the telegraph.co.uk Internet site at 3:57 p.m. BST in London on Monday---and it's the second commentary of the day from yesterday's edition of the King Report.

Merkel Hopes to Settle Gas Dispute Between Russia and Ukraine

With a major trade meeting between Russia and Ukraine approaching, German Chancellor Angela Merkel has advocated Tuesday for a long-term solution to the gas dispute between the two countries on Tuesday, AP reports.

Merkel said said that although there have been some “small successes” to calm the Ukraine crisis, a long-term working solution has yet to be found. The dispute over payments for past deliveries and future gas prices is one of the major issues which must be resolved “as quickly as possible”, Merkel told on Tuesday.

The German Chancellor’s statement comes concurrently with E.U. Energy Commissioner Guenther Oettinger who warned Russia not to use gas as a weapon against Ukraine, AFP said.

This brief article appeared on the RIA Novosti Internet site at 7:30 p.m. Moscow time on their Tuesday evening, which was 1:30 p.m. in New York.  I thank South African reader B.V. for sharing it with us.

Putin leaves Germany's factories in a worse state than anyone imagined

Key gauges of Germany manufacturing slumped in September, falling to a 15-month low as ongoing tensions over Ukraine weighed on the sector.

Markit’s purchasing managers’ index (PMI) for the sector dropped to 50.3, from 51.4 a month earlier. The reading is barely above 50, implying that the sector is expanding, but slowly.

No analyst polled by Reuters expected a number this bad.

The most pessimistic expert forecast that the PMI figure would fall to 51, while the average analyst believed Germany’s PMI would drop to 51.2.

Germany’s factories are particularly exposed to any conflict between Russia and its neighbours, as well as the tit-for-tat sanctions exchanged between Russia and the E.U.

This article, which is certainly worth reading, appeared on the The Telegraph's website at 9:24 a.m. BST on their Tuesday morning---and I thank Roy Stephens for sending it our way.

Furious Obama Says Calls to Putin Going Straight to Voice Mail

In what he called “a provocative and defiant act,” President Obama charged on Tuesday that Russian President Vladimir Putin has started letting his calls go directly to voice mail.

Speaking at the White House before this week’s NATO summit, a visibly furious Obama said that Putin’s new practice of letting his calls go straight to voice mail “hampers our ability to discuss the future of Ukraine and other important issues going forward.”

Having left dozens of voice mails for the Russian President, Obama said that he tried to reach him via e-mail on Monday night but received an out-of-office auto repl

Shrinking Bond Desks Taken by Journeymen as Masters Fade

Posted: 23 Sep 2014 11:15 PM PDT

Shrinking Bond Desks Taken by Journeymen as Masters Fade

It was the profession that inspired Sherman McCoy in the novel “The Bonfire of the Vanities.” In the 1980s, the excitement in the trading room, with hundreds of people talking on the phone, was palpable, like a sporting event, said Kerry Stein, head of credit trading at Lloyds Securities Inc.

Those days are gone.

“It’s surprising how quiet a place could be compared to what I had known,” said Stein, who began trading bonds in 1985 at Drexel Burnham Lambert Inc., the house of Michael Milken, who was nicknamed the junk-bond king.

As trading in dollar-denominated bonds declined 22 percent in the past five years to an average daily $809 billion, so have the jobs, leaving even some of the most senior traders and salesmen moving from firm to firm. Dozens of journeymen are populating an industry that used to attract the young in throngs, lured by money and prestige, according to Michael Maloney, president of fixed-income recruiting firm Michael P. Maloney Inc.

This news item appeared on the Bloomberg Internet site at 7:52 a.m. Denver time on Tuesday morning---and I thank West Virginia reader Elliot Simon for sending it our way.

Three King World News Blogs

Posted: 23 Sep 2014 11:15 PM PDT

Three King World News Blogs

1. William Kaye [#1]: "Sovereign Buy Orders in Gold, But Watch Silver For Price Gains"  2. Stephen Leeb: "China, Russia, Germany, India---and a Road Map to $10,000 Gold"  3. William Kaye [#2]: "Gold, Silver, Hindenburg Omens & A Full-Blown Collapse"

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

Mark O'Byrne: Gold, Silver Bullion Coin Sales Robust Despite Sell Off

Posted: 23 Sep 2014 11:15 PM PDT

Mark O'Byrne: Gold, Silver Bullion Coin Sales Robust Despite Sell Off

Despite the recent bout of price weakness, gold American eagle coin sales from the U.S. Mint have picked up significantly from last month.

The latest bullion coin sales figures from the U.S. Mint show a tentative pickup and robust retail bullion demand, with September sales stronger for both the  American Eagle and American Buffalo gold coins as well as for the American Eagle silver 1 oz coins.

Month-to-date for September, gold Eagle sales across all coin sizes have already reached 43,200 oz compared to total gold Eagle sales of 25,000 oz in August. This is also well ahead of September 2013, when total gold Eagle sales for the month only touched 13,000 oz.

Gold American Buffalo 1 oz sales so far this month have reached 10,500 oz, up from 8,000 oz in August, and 5,500 oz in July. With a strong first quarter, year-to-date American Buffalo sales are now running at a cumulative 135,500 oz for 2014.

Here's the commentary by Mark that I mentioned at the top of this column.  He's done an excellent job of reporting on this, so why should I re-invent the wheel by trying to put this in my words.  It was posted on the goldcore.com Internet site yesterday---and I thank him on your behalf.

Venezuela opens gold vault to impromptu inspection -- So how about it, central banks?

Posted: 23 Sep 2014 11:15 PM PDT

Venezuela opens gold vault to impromptu inspection -- So how about it, central banks?

Francisco Rodriguez, an economist with Bank of America Corp., was at a routine meeting with Venezuelan central bank officials last week when he sprung an unusual question on them: Can you show me your gold?

He'd been itching to take a peek for years and now was the time to ask. With the government's bonds sinking toward prices that indicate investors are bracing for the possibility of default, the country's $15 billion of gold bars are crucial to ensuring debt payments are met. His first impression once inside the vaults? Those bars don't take up a lot of room.

"You picture that amount of money requiring a lot of space when, in reality, it all fits in five small cells that were not even full to the top," Rodriguez, a Venezuela native who covers Andean economies for Bank of America Corp. in New York, said in a telephone interview yesterday. He said he started counting frantically in his head, summing up figures scrawled out on signs near each pile of the metal. By his quick math, the gold was all there.

This Bloomberg item, filed from Mexico City, showed up on their Internet site at 6:00 p.m. MDT yesterday evening---and was something I found at the gata.org Internet site.

Gold Reserve says awarded $740.3 million in Venezuela Brisas arbitration

Posted: 23 Sep 2014 11:15 PM PDT

Gold Reserve says awarded $740.3 million in Venezuela Brisas arbitration

The International Centre for Settlement of Investment Disputes (ICSID) determined Venezuela must pay U.S.-based miner Gold Reserve $740.3 million for terminating its Las Brisas gold concession, the company said on Monday.

Socialist-run Venezuela in 2009 formally ended the concession in one of Latin America's largest gold deposits as part of a strategy to increase state control of key economic sectors.

Gold Reserve then sought $2.1 billion in damages at the World Bank's ICSID for what it deemed an expropriation.

"While the company is pleased with the award, it is less than the value of the Brisas project at today's gold and copper prices and Venezuela will substantially benefit from the development of the mine," the company said in a statement on its website.

This gold-related news item, filed from Caracas, put in an appearance on the Reuters website at 9:20 p.m. EDT on Monday evening---and I found it embedded in another GATA release from yesterday.

China will take control of gold pricing, Sprott's Charles Oliver says

Posted: 23 Sep 2014 11:15 PM PDT

China will take control of gold pricing, Sprott's Charles Oliver says

Sprott Asset Management gold portfolio manager Charles Oliver tells the Sprott Money News' Jeff Rutherford that China is well on its way to taking control of the monetary metal's price-determination mechanisms and building its gold reserves to a much higher level.

The interview is 8:54 minutes long---and was posted on the sprottmoney.com Internet site on Monday.  I thank Chris Powell for wordsmithing the above paragraph of introduction.

Gold price suppression covered fully by GATA's Chris Powell on 'The Larry Parks Show'

Posted: 23 Sep 2014 11:15 PM PDT

Gold price suppression covered fully by GATA's Chris Powell on 'The Larry Parks Show'

Thanks to the interviewer's knowledge of the issue and willingness to spend time on it, your secretary/treasurer got to cover many aspects of the Western gold price suppression scheme last week on "The Larry Parks Show," broadcast on the Manhattan Neighborhood Network in New York. Parks was so adept because he is executive director of the Foundation for the Advancement of Monetary Education.

Among the aspects discussed were the U.S. government's having authorized itself to rig all markets secretly, the U.S. government documents recently disclosed showing that central banks are trading secretly in all major U.S. futures markets, the other documents GATA has compiled proving the gold price suppression scheme, why the gold mining industry refuses to do anything about it, why the scheme will keep succeeding until gold investors shun "paper gold," and the treason of the central bankers in developing countries.

I posted this video interview in yesterday's column as well, but never had the chance to watch it before I did.  Well, yesterday afternoon I viewed it from start to finish---and Chris is at the very top of his game here.  If you want to understand the "why" of the precious metal price management scheme [along with the price management scheme in copper and crude oil] this interview explains it in all its horrid details.

Chris uses the word "treason" to describe the action of central banks in the suppression gold/commodity prices---and that's precisely what it is.

If you didn't have the opportunity to watch this yesterday---then drop everything and watch it now.  And if you did take the time to view it, it's certainly worth a second look.  Without doubt it's the most important commentary that I've posted in this column for a very long time---and it's an absolute must watch.  As I also said yesterday, it deserves wide distribution---and now that I've actually watched it, that's what this interview deserves, so please pass it around.  Thanks.

It was posted on the gata.org Internet site at 10:39 p.m. EDT Sunday evening.

Oil, gold and silver prices up after US airstrikes on Syria, stocks fall

Posted: 23 Sep 2014 10:57 PM PDT

After US airstrikes against ISIS militants in Syria took place, oil, gold and silver prices moved higher. Kent Moors, oil and energy editor at Money Map Press, says the uncertainty factor is back.

Perhaps this is a sign of things to come this autumn with safe haven assets back in the running. US stocks closed down for a second day yesterday…


Video click here!

Caught on Camera – This is What Happens When You Try to Exercise Your Constitutional Rights in Illinois

Posted: 23 Sep 2014 08:00 PM PDT

What follows is the most powerful recorded police checkpoint scene we have witnessed… Submitted by Michael Krieger, Liberty Blitzkrieg:  What follows is the most powerful recorded police checkpoint scene I have witnessed since posting: Extremely Powerful Video – Happy 4th of July from a Police State Checkpoint, last summer.  While the former incident happened in Tennessee, the following […]

The post Caught on Camera – This is What Happens When You Try to Exercise Your Constitutional Rights in Illinois appeared first on Silver Doctors.

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  3. The Militarization of Police Continues…Machine Guns, Grenade Launchers, Silencers & More

The Bullion Banks are Literally Arming Stackers with Greater Firepower

Posted: 23 Sep 2014 06:00 PM PDT

The Banks are Literally Arming us with Greater Firepower Remember all the way back in April 2011, when price action was getting really fun, and stackers were feeling all-powerful?   Silver was literally moving up $1 a day, for crying out loud!  For weeks!  JP Morgan was running for the hills, we were literally unbeatable, right? […]

The post The Bullion Banks are Literally Arming Stackers with Greater Firepower appeared first on Silver Doctors.

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  3. Breaking Bad With Big Bank CEOs: How Bad Bank CEOs Use the Bystander Effect to Dupe Good People Into Working For Them

PM Fund Manager: When Manipulation Ends, Gold Will Snap Higher Than Anyone Can Imagine

Posted: 23 Sep 2014 05:00 PM PDT

I honestly do not know the extent to which the western Sicilian Mafia-like elitists can continue their manipulation of the gold and silver markets using unbacked paper gold/silver.  No one really knows. I do truly believe that the action we're seeing now reflects extreme desperation by the Fed/DC to keep a lid on the price […]

The post PM Fund Manager: When Manipulation Ends, Gold Will Snap Higher Than Anyone Can Imagine appeared first on Silver Doctors.

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Sept 24, 1869 : How Jim Fisk and Jay Gould profited handsomely from a massive short squeeze in Gold

Posted: 23 Sep 2014 04:00 PM PDT

fgmr

$17 Handle Silver: The End is Not Yet in Sight

Posted: 23 Sep 2014 03:45 PM PDT

A look at the charts tells us in no uncertain terms that the end is not yet in sight.  Here is our read of what the market is saying, and has been saying for some time:   2015 Silver Perth Kookaburras 25th Anniversary Limited Edition! Submitted by ETP:  Forget all the news, all the fundamentals, all […]

The post $17 Handle Silver: The End is Not Yet in Sight appeared first on Silver Doctors.

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