Gold World News Flash

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• SILVER SQUELCHERS & And Their Interesting Associates [PART 3]
• Why The Chinese Admire "Putin The Great"
• During An Ebola Pandemic All Of Your Rights Would Essentially Be Meaningless
• The Gold Price Went Over the Cliff $22.00 to End at $1,192.20
• Former Fed aide Huszar, trends forecaster Celente speak at KWN
• "Off The Grid" Indicators Suggest US Economy Anything But On Solid Ground
• New silver fix mechanism won't change much, Speck tells Kitco News
• Metals vastly oversold from naked shorting, Sprott contends
• Putin Rules Out Capital Controls As Ruble Hits Record Lows, "Curbs Risk" By Shifting To Non-Dollar Settlements
• Global Economic COLLAPSE Has Begun!
• Man Who Executed QE1 For Fed Says Own Gold, Fiat Will Burn
• Gold Daily and Silver Weekly Charts
• Celente - The US Gold Hoard, China, Greenspan & Fiat Money
• Who Needs Alan Greenspan When You've Got Gold?
• Gold and Silver Still In Major Uptrend On Long Term Charts
• “Money Bubble” Predictions Coming True, Part 1: Stock Market Volatility Surges
• Gerald Celente - The Gold Market is a Ponzi Scheme
• Nevada’s Newest Gold Miner
• Worried About Today’s Gold & Silver Smash - Just Read This
• In The News Today
• GATA Chairman Murphy interviewed at Toronto conference
• Gold price suppression covered by Roberts in Sprott Money News interview
• TF Metals Report: Deflation pervades markets until Fed renews QE
• Koos Jansen: 39 tonnes of gold left New York Fed in July and August
• Gold & Silver Shorts, Failing Economies and The Quarter-End
• Gold Price Q4 Outlook as Global Bond Market On Edge Of “Cliff”
• Gold Price Loses $1200 Mark as US Jobs Data Say Fed is "Ahead with Results, Behind on Rates"
• Gold Coin Demand Up, Silver Relatively Better
• Another Sign Of Gold Moving Back Into The Financial System
• The Velocity of Money Myth…
• Gold, Comfort, Karma, and Money Velocity
• If Only Mr.Market Were Alive
• Silver "a Screaming Buy", Crude Oil "Going to $60"
• HUI Gold Stocks Analysis
• Investors, Pay Attention: Causes and Implications of U.S. Dollar Strength
• Look Out Below for Gold
• Weekday Wrap-Up: Gold, Cashless Societies, Bubbles, and Bull Markets

SILVER SQUELCHERS & And Their Interesting Associates [PART 3] Posted: 03 Oct 2014 09:43 PM PDT by Charles Savoie, via SRS Rocco Report: We all know that the end of COMEX price rat-holing of gold and especially silver has a more limited life now than ever before. Have you wondered what will be the response of the President and Treasury Secretary might be? In the last century we've seen the price of silver set by Presidential executive order 6814, with the Silver Purchase Act of summer 1934 as the excuse—we've seen battles in Congress over setting the price of silver at various rates making mining shareholders starvation victims—64.64 cents per ounce—71.11 cents per ounce—90.5 to 91 cents per ounce—the "monetary" price of $1.2929 per ounce defended—finally, silver coins ended and silver certs cancelled—and again, a Federal price cap of $1.61 per ounce in the Nixon (Pilgrims Society) administration. The best reason these conspirators could trot out for seizing (nationalizing) silver a second time is "the military has to have silver, we're at war with Syria, Iraq, Iran, Ukraine, Russia" (et al). Newscasters won't have ANYTHING to say about the former 165 million ounce strategic silver stockpile being drained primarily for price suppression. It was not established to go for anything but defense! SILVER SQUELCHERS & And Their Interesting Associates [PART 3] by Charles Savoie, In this episode we'll have a look at another group of 15 members of The Pilgrims Society from the 1924 roster as we progress across this groups concealed history towards the present. Naturally these same 15 men also appeared in rosters before and afterwards, but they'll serve as a representation of the 1924 list. These are the worthy gentlemen who have been opposing free markets and using government power to bankrupt their competitors. As you read this series on the Silver Squelchers, bear in mind this organization is still on the scene, and remains the last major globalist group in the world still refusing to post rosters visibly in the public domain. Why do they refuse release of rosters? The most defensible postulate is—they are the management of the other globalist groups—this single organization is the wellspring of the problems of warfare, monetary subversion, export of manufacturing jobs, pharmaceutical attacks on the public, genetically modified foods, loss of privacy and civil liberties, loss of parental control over children, refusal to seal the Southern border with Mexico, and much more. This organization reminds me of Mel Gibson's "Braveheart" movie in two ways. First, it's sponsored by the British Royal family ("Crown") and second, in that 1995 movie the King's tactics of forming alliances with leaders of powerful factions was well highlighted. This method is still at the "centre" (to use British spelling) of The Pilgrims Society today—it's an alliance of very influential people representing major dynastic families all working together for a common purpose—harming the world in many ways to their benefit. Acess the ENTIRE incredible 74 pages @ SRSroccoreport.com

Why The Chinese Admire "Putin The Great" Posted: 03 Oct 2014 06:41 PM PDT As The Wall Street Journal's Jeremy Page writes, In the recommended-reading section of Beijing's Wangfujing bookstore, staff members have no doubt which foreign leader customers are most interested in: President Vladimir Putin, or "Putin the Great" as some Chinese call him. Books on Mr. Putin have been flying off shelves since the crisis in Ukraine began, far outselling those on other world leaders, sales staff say. One book, "Putin Biography: He is Born for Russia," made the list of top 10 nonfiction best sellers at the Beijing News newspaper in September.   China's fascination with Mr. Putin is more than literary, marking a shift in the post-Cold War order and in Chinese politics. After decades of mutual suspicion—and one short border conflict—Beijing and Moscow are drawing closer as they simultaneously challenge the U.S.-led security architecture that has prevailed since the Soviet collapse, diplomats and analysts say.   The former rivals for leadership of the Communist world also increasingly share a brand of anti-Western nationalism that could color President Xi Jinping's view of the pro-democracy protests in Hong Kong. Beijing accuses Western governments of stirring unrest there, much as Mr. Putin blamed the West for the pro-democracy protests in Kiev that began late last year.   Russia has begun portraying the Hong Kong protests, too, as U.S.-inspired. Russian state-controlled television channels this week claimed that Hong Kong protest leaders had received American training. Support for Putin is extremely widespread in China... The Pew Research Center says China is one of the few countries where popular support for Russia has risen since Moscow's confrontation with the West over Ukraine—rising to 66% in July from 47% a year earlier.   A poll by In Touch Today, an online news service run by China's Tencent Holdings Ltd., put Mr. Putin's approval rating at 92% after Russia annexed Crimea in March. "Putin and Xi Jinping are quite similar," says Yu Bin, an expert on China-Russia relations at Wittenberg University in Ohio. The leaders are from the same generation—they are both 61—and both want to re-establish their countries as world powers and challenge Western dominance following periods of perceived national humiliation. "Putin's personality is impressive—as a man, as a leader. Chinese people find that attractive. He defends Russia's interests," says Zhao Huasheng, an expert on China-Russia relations at Shanghai's Fudan University. "Russia and China can learn a lot from each other."   It is partly realpolitik. Russia needs China's market and capital, especially as Western sanctions over Ukraine bite, the analysts say, while Beijing sees Moscow as a source of diplomatic support and vital energy resources.   The countries concluded a long-awaited deal in May for Russia to supply $400 billion of gas to China over 30 years. They have forged agreements to build a railway bridge over their common border and an ice-free port in Russia's far east. They have also unveiled plans to set up ground stations on each other's land for their satellite global-positioning navigation systems.   Also driving the realignment is rapport between Mr. Putin and Mr. Xi, whose leadership increasingly resembles his Russian counterpart's charismatic nationalist authoritarianism. Various Chinese authors have written extensive best-sellers on the Russian President: Liu Xiaohu, the 28-year-old author of another biography, "Putin's Iron Fist," which came out this year, says many young Chinese feel frustrated by what they see as their government's failure to respond to past foreign provocations, such as the U.S. bombing of the Chinese Embassy in Belgrade in 1999.   "It's not that Chinese people instinctively want or need a strong leader: It's that the country needs one at this period of time," he says.   Zheng Wenyang, the 30-year-old author of "He is Born for Russia," says the biography, which came out in 2012, has sold far more copies than his earlier works on Barack Obama, Margaret Thatcher and Nelson Mandela.   He says Mr. Putin's popularity, while inflated by glowing reports in Chinese state media, feeds off a deeply held conviction in Chinese society: "If a leader is weak and allows himself to be bullied, then people won't respect him."   Russia's pushback against Western-leaning governments in Georgia in 2008 and more recently Ukraine has been popular in China. Some say Beijing should draw lessons from those experiences as it jostles for control over waters in the East and South China seas with the U.S., Japan, Philippines and Vietnam.   "Putin is a bold and decisive leader of a great power, who's good at achieving victory in a dangerous situation," said Maj. Gen. Wang Haiyun, a former military attaché to Moscow, in an interview with the Chinese website of the Global Times newspaper.   "These features are worthy of our praise and learning. Russia has been a great world power for hundreds of years and a superpower in the bi-polar order: It's much more skilled than us at playing great power games." Finally, not everyone is excited about the newly found kinship between the two nations... Some Chinese experts argue that China risks damaging its relationships with the U.S. and the European Union, still its biggest trading partners. Moscow's and Beijing's interests aren't always aligned.   New tensions could arise over China's expanding influence in Central Asian lands that once were part of the Soviet Union, and over Russian arms sales to India and Vietnam, neighbors of China that have boundary disputes with it.   Still, some analysts say that by staying out of the way in Ukraine, Beijing has ensured that Moscow will remain neutral over China's flaring territorial disputes in Asia. And for the moment, both sides have an interest in playing up the merits of their governance models. Read More Here... *  *  * The bottom line - if you're going to be isolated from the world, you would do a lot worse than have China as your friend... and both Moscow and Washington know that only too well.

During An Ebola Pandemic All Of Your Rights Would Essentially Be Meaningless Posted: 03 Oct 2014 06:09 PM PDT Submitted by Michael Snyder of The Economic Collapse blog, If there is a major Ebola pandemic in America, all of the liberties and the freedoms that you currently enjoy would be gone.  If government officials believe that you have the virus, federal law allows them to round you up and detain you "for such time and in such manner as may be reasonably necessary."  In addition, the CDC already has the authority to quarantine healthy Americans if they reasonably believe that they may become sick.  During an outbreak, the government can force you to remain isolated in your own home, or the government may forcibly take you to a treatment facility, a tent city, a sports stadium, an old military base or a camp.  You would not have any choice in the matter.  And you would be forced to endure any medical procedure mandated by the government.  That includes shots, vaccines and the drawing of blood.  During such a scenario, you can scream about your "rights" all that you want, but it won't do any good. In case you are tempted to think that I am making this up, I want you to read what federal law actually says.  The following is 42 U.S.C. 264(d).  I have added bold for emphasis... (1) Regulations prescribed under this section may provide for the apprehension and examination of any individual reasonably believed to be infected with a communicable disease in a qualifying stage and (A) to be moving or about to move from a State to another State; or (B) to be a probable source of infection to individuals who, while infected with such disease in a qualifying stage, will be moving from a State to another State. Such regulations may provide that if upon examination any such individual is found to be infected, he may be detained for such time and in such manner as may be reasonably necessary. For purposes of this subsection, the term “State” includes, in addition to the several States, only the District of Columbia.   (2) For purposes of this subsection, the term “qualifying stage”, with respect to a communicable disease, means that such disease—   (A) is in a communicable stage; or   (B) is in a precommunicable stage, if the disease would be likely to cause a public health emergency if transmitted to other individuals. In addition, as I discussed above, the CDC already has the authority to isolate people that are not sick to see if they do become sick.  The following is what the CDC website says about this... Quarantine is used to separate and restrict the movement of well persons who may have been exposed to a communicable disease to see if they become ill. These people may have been exposed to a disease and do not know it, or they may have the disease but do not show symptoms. Quarantine can also help limit the spread of communicable disease. On a very basic level, we are already starting to see this happen in Texas.  Obviously Thomas Eric Duncan has already been "isolated", and now his family has been placed under mandatory quarantine and ordered not to leave their home for 21 days... Texas health officials have placed the Dallas family of a Liberian national infected with Ebola under quarantine and ordered them not to leave their home or have any contact with outsiders for 21 days without approval of the local or state health department.   The "control order" also requires the family of Thomas Eric Duncan to be available to provide blood samples and agree to any testing required by public health officials. Officials said Thursday that the four or five family members could face criminal charges for violating the order, which was delivered to them in writing Wednesday evening.   Police have been stationed at the apartment complex to ensure residents' safety, Dallas Mayor Mike Rawlings told a news briefing Thursday afternoon. If we could all just stay in our homes during a national Ebola emergency, that wouldn't be so bad. But if thousands (or even millions) of cases start popping up it simply will not be possible for law enforcement authorities to monitor so many homes. This is a point that Mike Adams of Natural News made exceptionally well... When just one family is suspected of carrying Ebola, they can be easily monitored in a "volunteer home isolation" scenario. But what happens when it's 100 families? 500? 1,000? At that point, there aren't enough state or federal workers to keep an eye on these people, and the quarantine effort will almost certainly shift to forced relocation into quarantine camps.   Those camps will, of course, be called something nice-sounding like "Community Health Centers." No one in government or media will call them camps, even though they are camps. The word "camp" brings up echoes of "concentration camps" and the government definitely wants to avoid that association.   If one particular town or city is hit especially hard with the virus, there is a likelihood of the entire town being quarantined. No one in, no one out. Everybody will be ordered to "shelter in place" in their own homes for at least 21 days while health workers wearing hazmat suits go door to door, identifying Ebola victims and "relocating" them to the "Community Health Centers." If that sounds like "martial law" to you, that is because it would essentially be martial law. For the moment, public health authorities are pledging that nothing like this will ever happen because they have everything completely under control. Others are not so sure. For example, on Thursday a doctor from Missouri named Gil Mobley checked in for a flight at Atlanta’s Hartsfield-Jackson International Airport dressed in a mask, goggles, gloves, boots and a protective white jumpsuit.  On the back of the jumpsuit, he had written the following words:  "CDC is lying!" Mobley believes that we are not being told the truth about the spread of Ebola.  And he is convinced that as Ebola continues to spread exponentially, that we will eventually "be importing clusters of Ebola on a daily basis"... “Once this disease consumes every third world country, as surely it will, because they lack the same basic infrastructure as Sierra Leone and Liberia, at that point, we will be importing clusters of Ebola on a daily basis,” Mobley predicted.   “That will overwhelm any advanced country’s ability to contain the clusters in isolation and quarantine. That spells bad news.”   Mobley, a Medical College of Georgia graduate who had an overnight layover after flying to Atlanta from Guatemala on Wednesday, said that he feels that the CDC is “asleep at the wheel” when it comes to screening passengers arriving in the United States from other countries.   “Yesterday, I came through international customs at the Atlanta airport,” the doctor told The Atlanta Journal-Constitution. “The only question they asked arriving passengers is if they had tobacco or alcohol.” Earlier on Thursday, there were reports of people being tested for Ebola in Hawaii, Kentucky and Utah.  None of those tests has produced a confirmed case of Ebola as I write this article. Many Americans are still treating this Ebola crisis as if it was just one big joke. But Ebola is no joking matter.  This is a very, very serious disease. Just consider the experience of one British health worker that witnessed a young brother and sister both die one day apart... 'The next morning I came in and saw him lying as I had left him, on the bed.   'He wasn't breathing. I remember going up to him and looking at his face, his lips were drawn back in a grimace, and his eyes were vacant, lying in a pool of his own diarrhea.   'I lifted his hand to try, just to confirm things and his whole body turned rigid and cold.   'I put him in a body bag as his sister looked on.   'She seemed more baffled than anything, not really understanding what was happening. I carried his corpse outside with the others.   'The little girl, she deteriorated the next day. Overnight, the following night she had intravenous fluids and the line came out and she bled.   'I came in the following morning and she was covered in blood. She still had a very puzzled expression on her face and she wasn't breathing.   'So I put her in a bag and left her next to her brother. She was a beautiful little girl.' Hopefully our medical authorities are correct and this virus will not spread easily in this country. But at this point even some of our top politicians are wondering if we are truly getting accurate information.  For example, check out what U.S. Senator Rand Paul had to say on the Laura Ingraham Show just recently... “I really think that it is being dominated by political correctness and I think because of political correctness we’re not really making sound, rational, scientific decisions on this.” Paul said referring to statements issued by the CDC last week that assured there was little risk of an outbreak occurring in the US.   “We should not underestimate the transmissibility of this,” said Paul, a doctor himself, adding that medical workers have been contracting the virus even though they are taking precautions and covering themselves with gowns and masks.   “My suspicion is that it’s a lot more transmissible than that if people who are taking every precaution are getting it. There are people getting it who simply helped people get in or out of a taxicab.” Paul said. Let's pray that this crisis fizzles out, because if it doesn't, we could truly be looking at the greatest health crisis that any of us have ever seen. And along with countless numbers of people getting sick and dying, we would also have to deal with government-imposed medical martial law. The stakes are extremely high, and so let us hope that this crisis does not escalate any further.

The Gold Price Went Over the Cliff $22.00 to End at $1,192.20 Posted: 03 Oct 2014 05:37 PM PDT 26-Sep-14 3-Oct-14 Change % Change Gold Price, $/oz. 1,214.10 1,192.20 -21.90 -1.8 Silver Price, $/oz. 17.477 16.78 0.697 -4.0 Gold/Silver Ratio 69.468 71.049 1.580 2.3 Silver/gold ratio 0.0144 0.0141 -0.0003 -2.2 Dow in Gold $ (DIG$) 291.38 294.93 3.56 1.2 Dow in gold ounces 14.10 14.27 0.17 1.2 Dow in Silver ounces 979.18 1,013.69 34.51 3.5 Dow Industrials 17,113.15 17,009.69 -103.46 -0.6 S&P500 1,982.85 1,967.90 -14.95 -0.8 US dollar index 85.75 86.81 1.06 1.2 Platinum Price 1,303.50 1,226.00 -77.50 -5.9 Palladium Price 783.55 753.70 -29.85 -3.8 3 Day Gold Price Chart 30 Day Gold Price Chart 5 Year Gold Price Chart 3 Day Silver Price Chart 30 Day Silver Price Chart 5 Year Silver Price Chart The GOLD PRICE went over the cliff $22.00 (1.81%) to end Comex at $1,192.20. Silver lost 22.1 cents (1.3%) and closed Comex at $16.78. Let's go for the big picture. Gold's weekly chart has oscillated over and under the downtrend line all year, and for the last three weeks has been under. Not enough steam yet to throw a leg over that line and leave it behind. On the gold price monthly chart it has closed right at the uptrend line from 2001. If it was ever fish or cut bait time, it's now. Depending on how you draw the downtrend line, silver is over or under. I have drawn it to the first two tops from the March 2011 peak, and in the last year silver has been ABOVE that line. This week it merely traded down to it, but closed above. The SILVER PRICE monthly log scale chart since 2001, it has traded all the way down to the uptrend line. Once again, folks, silver must fish or cut bait. Hard to overstate how important it is to hold this line. The GOLD PRICE five day chart shows a collapse today beginning just before 10:00 a.m. Once it broke through $1,205, it had to fall until it found support at $1,190. I probably don't need to point out to y'all that this is ten bucks above the June 2013 and December 2013 lows. Although silver has sunk through its lows made last year, the gold price has not. And it is not unusual for silver in a correction to show itself weaker than gold. Ordinary, in face. But also gold approaching the $1,180 support also carries the caution that the more times support is challenged, the more likely it is to give. Silver fell off about the same time the gold price did, breaking $17.00 and plunging to a $16.64 low. There's really not much else to say here. Either silver and gold prices hold here or drop much further. The world looks very odd this week, however, with both stocks and gold and silver and platinum and palladium sinking while the US dollar rises. I won't say it's as amazing as seeing an axe head float, but it's in the same county. I'm not at all joyful to see stocks cracking, because they will take the economy down with them. I wasn't kidding about Act II of the Great Recession opening. It did. This week. Only market that didn't tank this week was the scrofulous, pestilential, world parasite US dollar. Volatility (or Nice Government Men) cranked up to raise stocks on Friday to keep their true sickness hidden. Yen and Euro are boring holes in the bottom of the chart to crawl into. Gold and silver waterfalled this week, and platinum and palladium may get cheaper than dirt. US dollar index gained a rare 107 basis points (1.25%) to close at 86.81 today, shooting up on that goofy jobs report I mentioned above. Highest level in 4 years. These markets have been so crazy I'm about forecast-shy, but looking at the dollar course May thru today, the second upmove (of three) could have been completed today. Even if the dollar turns around, it may be too late for the yen and euro. Remember that the dollar is those currencies' reciprocal: dollar rises, yen and euro fall. Same is true but not as mechanically for gold and silver. If the dollar has completed a rally for a while, then it's correction could last the rest of the year EVEN IF it intends to rise to 92. Euro lost 1.22% to close $1.2515, a new low for the move. Since May the euro has lost 10.2%, and now stands at its lowest since September 2012. In the bigger picture it's easy to imagine that the dollar's rise was born in an agreement with the Europeans to let the euro fall and support their exports. That's the way Nice Government Men and Central Bank Felons think. Yen had rallied two days running -- hard to use that word "rally" with the yen -- but collapsed today, not quite to a new low. Lost 1.24% to 91.10 cents/Y100. I run out of hyperbole trying to describe how overbought the dollar is and how oversold the other two scrofulous fiat currencies are. Suffice it to say a dollar correction/euro and yen rally is coming soon. Stocks showed that "volatility of the topping" today again. Dow rose 208.64 (1.24%, coincidentally just like the dollar) to 17,009.69 while the S&P500 leapt 21.73 (1.12%) to 1,967.90. These are not good numbers, and October will likely yet treat stocks unkindly. On my weekly and my monthly charts the Dow has broken down from the uptrend in force since March 2009. Re-read that, it is accurate. Same holds true for the S&P500, but its monthly close today is plumb next to the line -- below, but right at. Whether September 19 market the ultimate high in a 300 year cycle remains to be seen. The speed and extent of this fall will tell us whether it is a correction or the end of the stock bull market. Dow in gold today made a new high for the move, 14.28 oz (G$295.19 gold dollars), which may (but does not yet certainly) blow my theory that stocks have turned over against gold. Dow in silver made a new high for the move, too, at 1009.78 oz (S$1,305.57 silver dollars). Y'all enjoy your weekend! 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.

Former Fed aide Huszar, trends forecaster Celente speak at KWN Posted: 03 Oct 2014 05:34 PM PDT 8:33p ET Friday, October 3, 2014 Dear Friend of GATA and Gold: Former Federal Reserve official Andrew Huszar tells King World News today that big trends in currencies are moving in gold's favor: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/10/3_Ma... And trends forecaster Gerald Celente concludes from former Fed Chairman Alan Greenspan's recent essay in Foreign Affairs magazine that Greenspan long has been aware of market rigging: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/10/3_Ce... CHRIS POWELL, Secretary/Treasurer Gold Anti-Trust Action Committee Inc. 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: http://fmturl.com/gata/ Join GATA here: New Orleans Investment Conference Hilton New Orleans Riverside Hotel New Orleans, Louisiana Wednesday-Saturday, October 22-25, 2014 https://jeffersoncompanies.com/landing/noic2014?IDPromotion=614011014520... Mines and Money London Business Design Centre London, England, U.K. Monday-Friday, December 1-5, 2014 http://www.minesandmoney.com/london/ * * * 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: http://gata.org/tshirts 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: http://www.gata.org To contribute to GATA, please visit: http://www.gata.org/node/16

"Off The Grid" Indicators Suggest US Economy Anything But On Solid Ground Posted: 03 Oct 2014 05:31 PM PDT Via ConvergEx's Nick Colas, Summary: Every quarter we take a break from all the standard economic indicators to look at a range of alternative data.  The purpose here is to pose the question: “Does the consensus view of the U.S. economy square with what real people do in their day to day lives?”  Consider one example: do consumers believe inflation is below 2% when the raw materials for a bacon cheeseburger are up 5.8% year-over-year?  Economists would say that’s apples and, well, burgers, but the question stands.  Or look at food stamp participation rates, which look to be on the rise again to the tune of 400,000 Americans in just the last four months.  Other news is better – used car pricing remains robust, people are quitting their jobs more often than being terminated, and pickup truck sales (mostly small business purchases) are still increasing.  Overall, though, the news from “Off the Grid” challenges the notion that the U.S. economy is on solid ground and accelerating.  Inching forward, yes…  But not much more. *  *  * It’s not too early to start thinking about Holiday presents for your loved ones, and I have a suggestion for you: a drone.  Unmanned aviation isn’t just for the mountains of Pakistan any more.  It is, in fact, a fast rising area of interest for American consumers. How do we know?  Because every quarter for the last few years we have been logging what Google autofills when you type “I want to buy” into their search box.  “House”, “ car” and “Stock” fill the medal-paying positions at the moment, as they tend to do every time we check.  But the new entry, in the #4 position, is “Drone”.  In past quarters we’ve seen items like “Gun”, “dog”, and “Facebook stock” in the mix, mirroring America’s interest in personal safety, animal companionship, and investments du jour.  Now, it is the ability to check out the rest of your neighborhood from the comfort of your patio chair. The reason this analysis has some merit stems from Google’s autofill algorithm, which constantly updates the most likely completion of often-searched-for phrases.  Some searches, such as “Chinese restaurant in” will likely autofill with the name of your town.  More generic ones, like “I want to buy/sell” are based on larger populations.  And speaking of the other side of the proverbial online search coin, Americans commonly search for “I want to sell...” a “car”, a “house” and a “kidney”. That last entry – the common (if illegal) thought to sell an important internal organ – is a good jumping off point for what we call our “Off the Grid” economic indicators.  These are a collection of reliable data, gathered by both private industry and the Federal government, that run parallel to the A-list data we all analyze regularly.  The point is not so much to develop an alternative paradigm of economic analysis as it is to poke and prod at the consensus we all embrace.  After all, can the U.S. economy be doing all that well if “Kidney” is a common autofill? Take for example the myriad of data available from the U.S. auto industry, one of the cornerstones of the American manufacturing economy.  Unlike the organ sellers of Google, the data from the nation’s car dealers is remarkably positive, and not just because auto sales have remained robust.  Consider the following (charts for all the data described included after the text): Used car pricing, according to auction company Manheim, remains robust.  Unlike in prior cycles, the median cost of a used car in August 2014 remains on par with that of several prior years.  Pricing have zigged and zagged a few percentage points, yes…  But potential new car buyers are getting just as much for their 3-5 year old cars are they were at any point in the last 4 years.  That’s good for trade-in values and new car sales.   Full sized pickup truck sales remain robust, up 9% year on year.  These products – Ford F-Series, Dodge Rams, Chevy Silverados and the like– are primarily the domain of small businesses that use them as work trucks.  Demand has been good for these products since 2010, and the most recent data shows continued sales momentum.  Total monthly unit sales aren’t back to where they were pre-Crisis, but at 170,000/month they are closer to those 200,000/month highs than the 80,000 lows of 2009.   Overall, dealer inventory in the U.S. is surprisingly good at 62 days supply.  Automakers made a considerable wager on the strength of the domestic demand this year and that bet has paid off pretty well.  As a result, inventories are just about where they should be – 60 days is optimal to give buyers adequate choice.  Be forewarned, however: inventories always rise between now and year end. Grain of salt time: most Americans cannot afford to buy new cars (or find better value in purchasing used), so that marketplace doesn’t really speak for the broader population.  How secure does the American consumer feel just now?  Look at these Off the Grid indicators and judge for yourself: Food stamp participation seems to be on the increase again.  Peak usage of this important social program hit 47.8 million people and 23.1 million households in late 2012/early 2013.  For reference, that is 15.2% of all Americans and 20.0% of all households.  After dropping to 46.1 million people in March 2014, the most recent data from June 2014 shows an increase to 46.5 million.  That’s 400,000 people added to the SNAP (Supplemental Nutrition Assistance Program) in just 4 months.   Gun sales are set to match their 2013 run rate of 21 million units this year.  Through 8 months, the FBI has run some 13.8 million instant background checks for gun stores with Federal Firearms Licenses as well as pistol permit renewals in select states.  That works out to about 21 million background checks by December 2014.  For reference, the pre-Financial Crisis counts were more like 8 million annually.  Considering that New York banned the sales of many popular semi-automatic rifles earlier this year, the overall background check count shows robust demand for firearms at a national level.   On a more positive note, people are quitting their jobs more often than they are terminated involuntarily.  The JOLTS (Job Openings and Labor Turnover Survey) shows that 55.2% of all separations were due to the employee quitting their position.  The accompanying graph shows that this statistic correlates well with consumer confidence and we’ve seen that economic indicator move higher in recent months.   Gallup’s survey of self-reported daily spending is at a post-Crisis high of $94/day in out of pocket cash outlays.  We’re not back to the +$110/day stats of early 2008, but well off the $63-65/day levels of 2009.   A gaggle of Google Trend analysis shows a similarly mixed picture about these points.  In case you don’t use it, this is a Google tool that allows you to see how many times users have entered a particular search term over the years.  Searches for “Food Stamps” are ticking higher after a decline earlier in the year.  “Buy a gun” searches are remarkably stable and remain at 2011- 2012 levels.  Searches for “Gold coins” are at new lows since the Financial Crisis. That last point on gold coins leads us to a range of indicators related to investing.  Just a few points here: Public interest in buying gold and silver coins seems to be in a bit of a slump relative to the fevered demand of 2010 – 2013.  The U.S. Mint publishes monthly sales statistics, and on a rolling 6 month basis (the numbers are very chunky) revenues from the sale of gold coins are half the year ago levels ($48.7 million/month versus $97.7 million).  Silver coin sales show the same trends: $56.6 million/month versus $80.5 million last year.   Investors are pulling money out of U.S. stock funds to the tune of $5-10 billion a month, choosing products that focus on bonds and/or fixed income products.     We’ll close out this note with our personal favorite “Off the Grid” indicator: the Bacon Cheeseburger Index.  In all truth, it is a diet-friendly construct insofar as it omits the bun.  If you do your own shopping you’ll know that a hamburger costs about $3.40 in raw materials.  In case you don’t do the shopping, that’s $2.00 for ground beef (80% lean), $0.25 for the cheese, and $1.25 or so for 3 slices of bacon.  If you really need the bun, throw on $0.45.  We go through this math because the raw materials for the classic American Bacon Cheeseburger are up 5.8% in the last year. We doubt our exemplar of inflationary pressures will ever make it into the Fed minutes, but perhaps it should.  So much of measuring inflation has to do with expectations of future price increases rather than what is happening in the moment.  As the U.S. central bank focuses on 2% inflation, everyone shopping for dinner sees far higher numbers.  Does that matter to economists that only focus on “Core” inflation?  No, but they should know that consumer expectations come from real world experiences.  And what’s more real than a bacon cheeseburger? In summary, this turn through our Off the Grid indicators show a U.S. economy that is still only gradually on the mend.  Consumers are no longer as afraid of systemic failure of the banking system, hence the decline in gold and silver coin demand.  They are confident enough to quit their jobs and invest in their small businesses.  They are buying cars and trucks.  At the same time, food insecurity is still an issue and food inflation is on the rise.  Demand for firearms remains extremely robust. Yes, we seem to come to a similar place as the “Standard” economic analysis might.  But it feels like we got here by drone, with a different perspective of the same picture.  At least we didn’t have to sell our kidney to see it.

New silver fix mechanism won't change much, Speck tells Kitco News Posted: 03 Oct 2014 05:07 PM PDT 8:05p ET Friday, October 3, 2014 Dear Friend of GATA and Gold: In an interview this week with Daniela Cambone of Kitco News, market researcher, author, and GATA consultant Dimitri Speck says the new price-setting mechanism for silver won't change much because the big manipulation of price is in the futures markets. Speck also describes the manipulation of platinum prices. The interview is 5 1/2 minutes long and can be watched at Kitco here: http://www.kitco.com/news/video/show/On-The-Spot/788/2014-10-01/First-Go... CHRIS POWELL, Secretary/Treasurer Gold Anti-Trust Action Committee Inc. ADVERTISEMENT Join the Sprott Precious Metals Roundtable on Tuesday, Oct. 7 Sprott Asset Management's Eric Sprott, Rick Rule, and John Embry will get together for an hour at 2 p.m. ET Tuesday, October 7, to discuss the prospects for the precious metals, and you can join them via the Internet. Just register here: https://event.on24.com/eventRegistration/EventLobbyServlet?target=reg20.... Join GATA here: New Orleans Investment Conference Hilton New Orleans Riverside Hotel New Orleans, Louisiana Wednesday-Saturday, October 22-25, 2014 https://jeffersoncompanies.com/landing/noic2014?IDPromotion=614011014520... Mines and Money London Business Design Centre London, England, U.K. Monday-Friday, December 1-5, 2014 http://www.minesandmoney.com/london/ * * * 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: http://gata.org/tshirts 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: http://www.gata.org To contribute to GATA, please visit: http://www.gata.org/node/16

Metals vastly oversold from naked shorting, Sprott contends Posted: 03 Oct 2014 04:47 PM PDT 7:50p ET Friday, October 3, 2014 Dear Friend of GATA and Gold: Sprott Asset Management CEO Eric Sprott tells Sprott Money News' Geoff Rutherford today that economic data remains miserable, that the Ebola outbreak is far more serious than generally understood, and that the monetary metals are vastly oversold from naked shorting. The interview is 12 minutes long and can be heard at the Sprott Money Internet site here: http://www.sprottmoney.com/sprott-money-weekly-wrap-up CHRIS POWELL, Secretary/Treasurer Gold Anti-Trust Action Committee Inc. ADVERTISEMENT Buy metals at GoldMoney and enjoy international storage GoldMoney was established in 2001 by James and Geoff Turk and is safeguarding more than $1.7 billion in metals and currencies. Buy gold, silver, platinum, and palladium from GoldMoney over the Internet and store them in vaults in Canada, Hong Kong, Singapore, Switzerland, and the United Kingdom, ­taking advantage of GoldMoney's low storage rates, among the most competitive in the industry. GoldMoney also offers delivery of 100-gram and 1-kilogram gold bars and 1-kilogram silver bars. To learn more, please visit: http://www.goldmoney.com/?gmrefcode=gata Join GATA here: New Orleans Investment Conference Hilton New Orleans Riverside Hotel New Orleans, Louisiana Wednesday-Saturday, October 22-25, 2014 https://jeffersoncompanies.com/landing/noic2014?IDPromotion=614011014520... Mines and Money London Business Design Centre London, England, U.K. Monday-Friday, December 1-5, 2014 http://www.minesandmoney.com/london/ * * * 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: http://gata.org/tshirts 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: http://www.gata.org To contribute to GATA, please visit: http://www.gata.org/node/16

Putin Rules Out Capital Controls As Ruble Hits Record Lows, "Curbs Risk" By Shifting To Non-Dollar Settlements Posted: 03 Oct 2014 03:05 PM PDT Despite ongoing outflows, Russian President Vladimir Putin confirmed earlier statements by the Central Bank ruling out any measures to stop the flow of money from his nation (following rumors that they were weighing capital controls sent the Ruble to fresh record lows against the USD). The central bank continues to make "small interventions" but the Ruble has pushed to new record lows this morning nevertheless, as Bloomberg reports, restating "the first principle is the lack of limits on capital movements." In order to "curb risks" from ongoing outflows, Putin said on Thursday that Russia wants to shift to national currencies in trade deals with China and other countries, implying a shift away from the U.S. dollar. That appears to be strengthened further this morning as Putin signs law ratifying a Eurasian economic union.   Following rumors of capital controls, Bloomberg reports Putin denying any such rumors... President Vladimir Putin joined the central bank in ruling out measures to hinder the accelerating flow of money from Russia after speculation that policy makers are weighing the possibility of capital controls sent the ruble to a record low.   "We don't plan to introduce currency restrictions or restrictions on the movement of capital," Putin said today at a Moscow investment forum organized by VTB Capital.   His comments echo central bank Chairman Elvira Nabiullina, who earlier told the same conference that speculation policy makers are considering limits on capital movements is "absolutely baseless." And amid ongoing weakness in the Ruble (new record lows)   The Central Bank is sticking by its principles... The central bank made "small" interventions yesterday, selling "slightly more than" $4 million, Nabiullina said. "The ruble is close to our upper boundary and we, subject to its moves, will act according to previously set rules."   Even as the ruble has weakened to a record, the bank has pushed forward with preparations to shift to a freely floating currency, in favor of using interest rates to manage inflation, which has remained above its target for two years.   Nabiullina said capital controls would undermine one of the country's main monetary-policy achievements.   "On what principles are we basing our policy? First is the lack of limits on capital movements," she said. "To reject that achievement, truly, may set us back many years." As Reuters adds, Putin is looking to further de-dollarize... Russian President Vladimir Putin said on Thursday that Russia wants to shift to national currencies in trade deals with China and other countries, implying a shift away from the U.S. dollar.   "In the future we aim actively to use national currencies in energy resources trade to settle... international trade accounts, with China and other counties," Putin told an investment conference. "In using national currencies, we see a serious mechanism for curbing risks." Which appears to be strengthened this morning... *PUTIN SIGNS LAW RATIFYING EURASIAN ECONOMIC UNION *  *  * De-dollarization continues...

Global Economic COLLAPSE Has Begun! Posted: 03 Oct 2014 01:28 PM PDT These Charts Confirm Global Economic COLLAPSE Has Begun! Madness prevails as countries find themselves in deeper debt, unable to dig themselves out of. The only solution provided by the central bankers is to print money and purchase the garbage debt and keep it on its balance sheets until the... [[ 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! ]]

Man Who Executed QE1 For Fed Says Own Gold, Fiat Will Burn Posted: 03 Oct 2014 01:26 PM PDT With the Dow punching back above 17,000, the US dollar surging and the gold market getting hit, today King World News spoke with the man the Fed called on to execute QE1 and who also set up the Fed's massive trading room, former Fed member and former Managing Director at Morgan Stanley, Andrew Huszar. What he had to say might surprise KWN readers around the world. He warned that investors must own gold because the reckless behavior of the Federal Reserve is going to lead to a serious crisis by creating a major selloff in the dollar and U.S. Treasuries. Below is what Huszard had to say in this remarkable interview. This posting includes an audio/video/photo media file: Download Now

Gold Daily and Silver Weekly Charts Posted: 03 Oct 2014 12:40 PM PDT

Celente - The US Gold Hoard, China, Greenspan & Fiat Money Posted: 03 Oct 2014 11:16 AM PDT As stocks rebound and the U.S. dollar continues to strengthen, today the top trends forecaster in the world gave a timely and fascinating interview to King World News about the U.S. gold hoard, China, Greenspan, and the astonishing situation taking place in the gold and currency markets. Below is what Gerald Celente, founder of Trends Research and the man considered to be the top trends forecaster in the world, had to say. This posting includes an audio/video/photo media file: Download Now

Who Needs Alan Greenspan When You've Got Gold? Posted: 03 Oct 2014 10:42 AM PDT China is buying gold, says the celebrity Maestro. Or rather, oh no it isn't...   ACCORDING to the internet, Alan Greenspan, former chairman of the Federal Reserve, thinks he know "why China is buying gold," writes Adrian Ash at BullionVault.    Cue lots of chatter and praise on the bug-o-sphere. The Maestro speaks! And he says China is buying gold!   For all I know, that's true. We're no more privy to Beijing's thinking than anyone else outside the politburo. But Greenspan didn't even know what his own central bank was doing to the US economy when he ran it. So what is clearly false is the idea that anyone should listen to anything Greenspan says about the People's Bank, or anything else, today.   In October 2008, as the credit bubble he'd done so much to inflate tried to go bang, Greenspan confessed that...maybe...he had been "wrong" on the economy.   Come 2013...eight years after he left the Fed, and 7 years after the US housing bubble began to burst...Greenspan admitted that he "never saw [the crash] coming".    But no problem. Greenspan's celebrity as an economic sage...the "ultimate insider" with foresight second only to God...has rolled on regardless. It started in 1950, according to his damning biographer, Fred Sheehan, when the young pretender affected to start smoking a pipe. Now in 2014, Greenspan will even star at this year's New Orleans Investment Conference. Yes, really. The die-hard event for die-hard gold bugs since 1974, it was virtually empty when I attended at the turn of the century. But back then, of course, the Maestro was in charge of the Fed.   And amid central-bank gold sales and tech stock bubbles worldwide, "who need[ed] gold when we've got Alan Greenspan?" as the New York Times put it so neatly.   Turns out we all did. Yet lots of gold bloggers suddenly think they need Greenspan too, thanks to his new piece of nonsense.   The man who brought you the lowest interest rates in history, the "Greenspan put" to support world equities, and the repeal of Washington's Glass-Steagal Act...letting investment and commercial banks play each other's markets, imperilling Joe Public's savings when the crash came...Greenspan has now penned what might pass for a "think piece" about China's gold reserves for Foreign Affairs magazine. But that would have taken some thought.   Instead, "If China were to convert a relatively modest part of its $4 trillion foreign exchange reserves into gold," says Greenspan...ever the two-handed economist..."the country's currency could take on unexpected strength in today's international financial system."   If? Could? Empty of meaning, that opening forces Foreign Affairs' editors to slap a no-nonsense strapline on Greenspan's short ramble: "Why China is buying gold." Which Greenspan doesn't say it is. Not that he says it isn't. Hey, this is the Maestro. You've got to read the runes, right...? "It would be a gamble of course," the grand old man goes on, "for China to use part of its reserves to buy enough gold bullion to displace the United States from its position as the world's largest holder of monetary gold. But the penalty for being wrong, in terms of lost interest and the cost of storage, would be modest." Nothing ventured and nothing gained by this Greenspan-ese. But again, it must surely mean something. And given the rapture of $5,000 gold which would-be analysts have forecast since the People's Bank last bothered to update the world on its gold holdings in 2009, "China wants to overtake US in gold reserves" is the summary headline slapped on one write-up of Greenspan's wittering today, linked and tweeted the world over...including here.   See how it works? Job done for the arch-celebrity. A few hundred words, not even guessing at what's going on, and Greenspan is front and center once more. Not least for his most pliant...and absurd...audience: Gold promoters warning you against the evils of Western central banking.   Greenspan long has form here, of course. Back in 1966...when he worried Ayn Rand as a "social climber" like a dog worries sheep...he famously wrote a paper about "Gold and Economic Freedom". US reserves were depleted, and the post-WWII Bretton Woods treaty was fit to collapse. News-worthy stuff then, the essay has proved invaluable for the Janus Greenspan ever since. Because on the one hand he gets to point it out every time he's door-stepped about the Dollar's rampant devaluation. But on the other, he also saddled up his one-trick pony for monetary policy, more than two decades before he got his hands on the levers and dials at the Eccles Building: "As the supply of money (of claims) increases relative to the supply of tangible assets in the economy, prices must eventually rise." Got it? Famously obtuse (because he wasn't in truth saying anything), the Maestro was never so clear...nor, we think, right. In the end, prices will rise thanks to the post-Alan insanity trailing in his wake at the Fed.   But even here, on the subject of prices, today's Greenspan is useless, claiming that "if" Beijing moved to buy gold, it would "certainly" boost gold prices "for the rest of the world...but only during the period of accumulation."   Gold, on the contrary, has sunk this week back towards 2013's crash lows. Ergo, if Greenspan's "thinking" can be trusted at all, Beijing ain't buying gold at all today.   And to think self-declared gold bugs are cheering! Still, I bet he could at least raise a mortgage. Not that he needs to. What a legacy to leave his disciples...

Gold and Silver Still In Major Uptrend On Long Term Charts Posted: 03 Oct 2014 10:20 AM PDT Over three years ago on April 28, 2011 at a time when investors were piling with two fists into gold and silver etf’s I wrote in this popular article published on Seeking Alpha, “The virtues of gold (NYSEARCA:GLD) and silver (NYSEARCA:SLV) are being addressed far and wide. My readers know the steady drumbeat of praise that is reaching a crescendo for the white metal scares the hell out of me.  A parabolic rise has formed in silver and gold… Please note that at these times of extreme optimism volatile pullbacks become more prevalent. Parabolic rises must be approached with caution.”  At that time all over the mainstream media huge gold predictions of $5000 were forecasted as Central Banks became net buyers of gold for the first time in many years. The Chinese and Russians were some of the largest acquirers of physical gold.  Also large hedge funds some managed by industry giants such as Paulson, Soros, Rogers and Einhorn began buying ETF’s and junior miners.  This led to a parabolic and overbought move in precious metals, which I cautioned my readers about in the referenced article above.  It should be noted a few days after this article was published silver topped at $50 and gold rolled over a few months later at $1900. Now silver is trading below $17 at prices not seen in years below its 2010 breakout price.  Silver does look like it is approaching a major support uptrend at the $15 level.  If $1180 does not hold, gold may test lower prices near $1050 as that is the approximate 50% retracement of the move from $300 in 2001 to $1900 in 2011. It is evident that both precious metals are in a long term secular uptrend, yet the mainstream is completely cold on gold and silver, the exact opposite of what was happening in 2011.  Now we hear the steady drumbeat of the shorts who say deflation is here to stay with low interest rates.  They say stick to financial assets like the dollar and large caps which brings music to my contrarian ears.  Low interest rates and low inflation do not last forever.  They fuel asset bubbles which burst. The best investments are found with real assets in neglected sectors such as the junior miners which are trading at historic discount valuations.  The junior mining sector has grown completely out of favor which gives me excitement in continuing my search for the best real assets in the world when there is not much competition. The junior gold mining sector is completely ignored by the retail public, which makes contrarian investors who accumulate real assets content as they can find the best deals at big discounts.  Now the same momentum funds that were piling into gold and silver in 2011, have been buying real estate, the dollar and S&P500 ignoring our sector. For the past three years the US economy has had low interest rates with supposedly low inflation.  How long can that last when governments all over the world are using the printing press like never seen before?  The financial markets are 100′s of trillions of monopoly money not backed by anything.  Remember all the gold ever mined is under $7 trillion.  The US government alone has a $17 trillion debt. I will continue to search all over the Earth for the best real assets to hedge against inflation and decline of paper currencies.  The worst way to hedge against inflation is by buying inflated assets.  Right now, the S&P500 and dollar are historically overpriced, while real mineral properties can be bought for virtually pennies of a penny on the dollar.  Despite record demand for gold and silver coin sales, the price continues to drop because of the strong dollar providing deeper value for acquirers of the most reliable form of money known to man. On another note, the dollar is very strong right now moving parabolically, but that could be a trap.  There are many potential black swans to change this trend of rate hikes.  Ebola, Jihad Terrorism, Ukraine, Iraq and now China crackdown on Hong Kong Protestors could spiral foreign exchange and commodity markets out of control.  Gold and silver is the best financial hedge against war, uncertainty and instability.  It may be time now if you are sitting in cash to diversify into physical gold and silver and the highest quality junior miners which have top properties, strong treasuries and experienced management teams. Check out these high quality situations making great progress and holding up during this liquidity crisis. 1)These two juniors with some of the best undeveloped US assets have tripled in 2014 despite one of the toughest markets in junior mining history.  They are two of the best performers in the resource sector in 2014. 2)This small junior miner is hitting great high grade gold results in Nevada and has attracted two major NYSE producers as significant shareholders.  This high quality discovery is far outpacing the market this year as it is up 160+% while the GDXJ is flat.  It was just announced that Hecla added to its position in the junior miner. 3)I expect the shares of this junior miner to lead when the sector turns as there are very few advanced high grade economic projects with a mill in a well known stable jurisdiction of Val d’Or, Quebec. Don't forget Osisko received top dollar from the majors Agnico and Yamana and that was much lower grade. I wouldn't be surprised after this mill acquisition if they are the next takeout target in Quebec as the major need high grade, low capex projects to replace higher cost marginal production. 4)This junior miner is possibly weeks away from receiving its final permit to begin mining operations in Colombia. This could be huge for the entire Colombian mining industry as it could be the first permitted modern gold mine.  They received the Mine Plan Approval and are just waiting for the last environmental license.  The feasibility study showed that at $1300 gold the internal rate of return is 52%. This mine may have one of the best economic profiles in the junior industry.   Once the permit question is resolved I expect a large mid-tier to buy it out.  Even a gold correction shouldn’t hurt this junior as there all in sustaining cash costs are low at $758 an ounce. Disclosure: I own all these companies and they are all website sponsors. ___________________________________________________________________________ Sign up for my free newsletter by clicking here…  Please see my disclaimer and full list of sponsor companies by clicking here… Accredited investors looking for relevant news click here… To send feedback or to contact me click here… Follow me on Twitter… Please forward this article to a friend or share the link on Facebook, Twitter or Linkedin.

“Money Bubble” Predictions Coming True, Part 1: Stock Market Volatility Surges Posted: 03 Oct 2014 10:04 AM PDT In The Money Bubble: What To Do Before It Pops, James Turk and I climb out on a lot of limbs with a series of extreme predictions. This series will track the ones that are (or seem to be) working out, beginning with increasingly wild swings in US equities: Chapter 26, page 294: For a sense of how an over-indebted financial system enters a catastrophic collapse, imagine a spinning top. For a while after being set in motion, the top stays in one place, spinning smoothly. But then a slight wobble creeps into its rotation, gradually becoming more pronounced until it turns violent. The unstable top then shoots off in a random direction to crash against whatever is nearby. That's how the financial markets will behave when the Money Bubble bursts. As this is written in late 2013, our imagined top is spinning smoothly again after a huge, near-catastrophic wobble in 2008. With US stock prices at record highs, interest rates still historically low and daily fluctuations in major markets reasonably muted, all looks well. But soon, probably in 2014 but almost certainly by 2015, the fluctuations will begin to increase until the system spins out of control. Now consider the US stock market over the past two weeks. The following table lists the daily fluctuations of the Dow Jones Industrial Average where in the space of ten trading days there have been seven triple-digit moves, for an average swing of 132 points. Mr. Market’s mood swings are getting more and more violent. More from The Money Bubble: A useful indicator of where the markets are in this process is the VIX index of volatility in the S&P 500 options market, which predicts month-ahead fluctuations in the stock market. Figure 26.3 shows how placid the US stock market, as depicted by its low volatility, was while the housing bubble was inflating in the mid-2000s. But notice what happened in 2007 and early 2008: First came some wobbles, as the early indications of a bursting housing bubble hit the markets. Then in 2008 the bubble burst and the banking system began to implode. The markets were terrified and capital was pouring in and out (mostly out) of stocks and pretty much every other financial asset class, causing wild fluctuations. The VIX soared from 20 to 80 in a matter of months. In late 2013 the top was once again spinning smoothly. But under the surface, all the imbalances that nearly destroyed the global financial system in 2008 were not only still resent, they were being amplified by governments around the world borrowing aggressively, printing, and intervening. By late 2013 the system was once again primed to start wobbling. Which means a spectacular trade is just waiting to be placed. So the follow-on prediction is that today’s volatility, like that of 2007, will be resolved to the downside via a market crash and possibly a full-blown financial crisis sometime in the coming year. Stay tuned.

Gerald Celente - The Gold Market is a Ponzi Scheme Posted: 03 Oct 2014 09:05 AM PDT Gerald Celente - The Real Money Show - September 27, 2014 . Gerald talks about the latest trends journal and the latest trends in gold and silver. [[ 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! ]]

Nevada’s Newest Gold Miner Posted: 03 Oct 2014 08:30 AM PDT Nevada is well known as the United States’ top gold-mining jurisdiction.  The numerous mines within its massive gold trends combined to produce a whopping 5.4m ounces in 2013, which accounted for 74% of total domestic output.  This output ranks Nevada as the world’s fourth-largest gold producer, behind only the countries of China, Australia, and Russia. With Nevada’s geopolitically-stable mild desert region pumping out more gold than global juggernauts South Africa, Peru, and Canada, it is naturally a top destination for mining companies looking to hit it big.  And emerging producer Midway Gold has hit the trifecta with a trio of advanced-stage projects poised to add to Nevada’s gold-mine tally.

Worried About Today’s Gold & Silver Smash - Just Read This Posted: 03 Oct 2014 08:28 AM PDT Today King World News is featuring a piece by a man whose recently released masterpiece has been praised around the world, and also recognized as some of the most unique work in the gold market. Below is the latest exclusive KWN piece by Ronald-Peter Stoferle of Incrementum AG out of Liechtenstein. This posting includes an audio/video/photo media file: Download Now

In The News Today Posted: 03 Oct 2014 08:23 AM PDT Gold Stocks: Time to Buy or Will They Get Worse? Thursday, October 2, 2014 Henry Bonner Gold has fallen from over $1,300 in mid-August to around $1,210 per ounce as of October 21, dragging many gold-related stocks down with them. Steve Todoruk joined Rick Rule at Sprott Global Resource Investments Ltd. in 2003. Should cautious... Read more » The post In The News Today appeared first on Jim Sinclair's Mineset.

GATA Chairman Murphy interviewed at Toronto conference Posted: 03 Oct 2014 07:59 AM PDT 10:45a ET Friday, October 3, 2014 Dear Friend of GATA and Gold: GATA Chairman Bill Murphy was interviewed by Vanessa Collette at the Canadian Investor Conference in Toronto two weeks ago, discussing manipulation of the gold and silver markets. The interview is 10 minutes long and can be watched at YouTube here: https://www.youtube.com/watch?v=Yw5Oi3FLqzk&list=UU9T_qxz0g7FKhj6sXz2LKy... CHRIS POWELL, Secretary/Treasurer Gold Anti-Trust Action Committee Inc. ADVERTISEMENT Anglo Far-East: Think Outside the Bank Anglo Far-East is a global market leader and innovator that for more than two decades has provided private purchase, vaulting, security logistics, transport, and liquidation of allocated gold and silver bullion outside of the banking system. AFE clients include individuals, family offices, and institutions like banks and regulated funds. Here's what one of our generationally wealthy clients has to say about AFE: http://www.afeallocatedcustody.com/research/teleconferences/download-inf... To get started, please visit: https://secure.anglofareast.com/ Anglo Far-East: Think Outside the Bank Join GATA here: New Orleans Investment Conference Hilton New Orleans Riverside Hotel New Orleans, Louisiana Wednesday-Saturday, October 22-25, 2014 https://jeffersoncompanies.com/landing/noic2014?IDPromotion=614011014520... Mines and Money London Business Design Centre London, England, U.K. Monday-Friday, December 1-5, 2014 http://www.minesandmoney.com/london/ * * * 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: http://gata.org/tshirts 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: http://www.gata.org To contribute to GATA, please visit: http://www.gata.org/node/16

Gold price suppression covered by Roberts in Sprott Money News interview Posted: 03 Oct 2014 07:44 AM PDT 10:43a ET Friday, October 3, 2014 Dear Friend of GATA and Gold: Gold price suppression by Western central banks figures heavily in an interview this week with former Assistant U.S. Treasury Secretary Paul Craig Roberts by Geoff Rutherford of Sprott Money News. Gold price suppression is undertaken through naked shorting of the metal by bullion banks upon the encouragement of the Federal Reserve, Roberts says. He adds that it probably will continue until "the Shanghai Gold Exchange in which no naked shorts are possible, produces different prices, different behavior, or until the West is so depleted of gold that the risk of selling all those naked shorts that can't be covered becomes too high." Video and a transcript of the interview are posted at the Sprott Money News Internet site here: http://www.sprottmoney.com/news/ask-the-expert-dr-paul-craig-roberts-sep... CHRIS POWELL, Secretary/Treasurer Gold Anti-Trust Action Committee Inc. 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: New Orleans Investment Conference Hilton New Orleans Riverside Hotel New Orleans, Louisiana Wednesday-Saturday, October 22-25, 2014 https://jeffersoncompanies.com/landing/noic2014?IDPromotion=614011014520... Mines and Money London Business Design Centre London, England, U.K. Monday-Friday, December 1-5, 2014 http://www.minesandmoney.com/london/ * * * 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: http://gata.org/tshirts 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: http://www.gata.org To contribute to GATA, please visit: http://www.gata.org/node/16

TF Metals Report: Deflation pervades markets until Fed renews QE Posted: 03 Oct 2014 07:35 AM PDT 10:35a ET Friday, October 3, 2014 Dear Friend of GATA and Gold: The TF Metals Report's Turd Ferguson today publishes price charts showing deflation everywhere, apparently in anticipation of the end of bond monetization in the United States. He predicts that everything will keep crashing until the Federal Reserve undertakes a new program of "quantitative easing." Ferguson's analysis is posted at the TF Metals Report here: http://www.tfmetalsreport.com/blog/6186/bakers-dozen-deflationary-bias-c... CHRIS POWELL, Secretary/Treasurer Gold Anti-Trust Action Committee Inc. ADVERTISEMENT Free Storage with BullionStar in Singapore Until 2016 BullionStar is a Singapore-registered company with a one-stop bullion shop, showroom, and vault at 45 New Bridge Road in Singapore. BullionStar's solution for storing bullion in Singapore is called My Vault Storage. With My Vault Storage you can store bullion in BullionStar's bullion vault, which is integrated with BullionStar's shop and showroom, making it a convenient one-stop-shop for precious metals in Singapore. Customers can buy, store, sell, or request physical withdrawal of their bullion through My Vault Storage® online around the clock. Storage is FREE until 2016 and will have the most competitive rates in the industry thereafter. For more information, please visit Bullion Star here: https://www.bullionstar.com/ Join GATA here: New Orleans Investment Conference Hilton New Orleans Riverside Hotel New Orleans, Louisiana Wednesday-Saturday, October 22-25, 2014 https://jeffersoncompanies.com/landing/noic2014?IDPromotion=614011014520... Mines and Money London Business Design Centre London, England, U.K. Monday-Friday, December 1-5, 2014 http://www.minesandmoney.com/london/ * * * 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: http://gata.org/tshirts 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: http://www.gata.org To contribute to GATA, please visit: http://www.gata.org/node/16

Koos Jansen: 39 tonnes of gold left New York Fed in July and August Posted: 03 Oct 2014 07:29 AM PDT 10:30a ET Friday, October 3, 2014 Dear Friend of GATA and gold: Gold researcher and GATA consultant Koos Jansen reports today that 24 tonnes of gold have been listed as withdrawn from the Federal Reserve Bank of New York in July and another 15 tonnes in August, presumably part of the German Bundesbank's repatriation program. Jansen's commentary is posted at Bullion Star here: https://www.bullionstar.com/article/new%20york%20fed%20gold%20stock%20tu... CHRIS POWELL, Secretary/Treasurer Gold Anti-Trust Action Committee Inc. ADVERTISEMENT Free Storage with BullionStar in Singapore Until 2016 BullionStar is a Singapore-registered company with a one-stop bullion shop, showroom, and vault at 45 New Bridge Road in Singapore. BullionStar's solution for storing bullion in Singapore is called My Vault Storage. With My Vault Storage you can store bullion in BullionStar's bullion vault, which is integrated with BullionStar's shop and showroom, making it a convenient one-stop-shop for precious metals in Singapore. Customers can buy, store, sell, or request physical withdrawal of their bullion through My Vault Storage® online around the clock. Storage is FREE until 2016 and will have the most competitive rates in the industry thereafter. For more information, please visit Bullion Star here: https://www.bullionstar.com/ Join GATA here: New Orleans Investment Conference Hilton New Orleans Riverside Hotel New Orleans, Louisiana Wednesday-Saturday, October 22-25, 2014 https://jeffersoncompanies.com/landing/noic2014?IDPromotion=614011014520... Mines and Money London Business Design Centre London, England, U.K. Monday-Friday, December 1-5, 2014 http://www.minesandmoney.com/london/ * * * 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: http://gata.org/tshirts 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: http://www.gata.org To contribute to GATA, please visit: http://www.gata.org/node/16

Gold & Silver Shorts, Failing Economies and The Quarter-End Posted: 03 Oct 2014 07:16 AM PDT Precious metals have faced adverse weather as evidence mounts that major economies may be sliding into recession. Yesterday the ECB finally responded to the deteriorating situation in the Eurozone by announcing a discretionary form of QE to last up to two years if necessary. The only clues are the ECB will buy in covered bonds and asset backed securities issued in euros in the Eurozone with an objective to increasing the ECB's balance sheet by about €1 trillion.

Gold Price Q4 Outlook as Global Bond Market On Edge Of “Cliff” Posted: 03 Oct 2014 07:07 AM PDT The current U.S. bond market faces a "liquidity cliff" and looks like an asset "bubble" that could burst when interest rates start to rise, according to the senior U.S. securities regulator. This is something we have been warning of in recent months.  The consequences of the bursting of the bond bubble would be rising interest rates, which would likely impact property and stock markets and benefit safe haven gold bullion.

Gold Price Loses $1200 Mark as US Jobs Data Say Fed is "Ahead with Results, Behind on Rates" Posted: 03 Oct 2014 06:44 AM PDT GOLD PRICES fell 0.8% in two minutes Friday lunchtime in London, dipping through $1200 per ounce – a new 2014 low – as new US jobs data beat analyst forecasts.   The US Dollar jumped on the currency market, knocking almost 1 cent off the Euro to reach new two-year highs.   Gold priced in US Dollars then slipped further to $1196 as silver hit new 5-year lows at $16.81.   Faced with today's strong NFP report, says Standard Bank's London team in a note, "we would have expected gold to move another $15 and silver another $1 lower.   "Surprised both are holding very well."   Reporting 248,000 net new jobs for September against consensus forecasts of 215,000, today's Non-Farm Payrolls data put the US unemployment rate for last month at 5.9%.   That's the lowest level since before Lehman Brothers collapsed in September 2008.   "Macroeconomic outcomes have exceeded expectations," said James Bullard, president of the St.Louis Fed – and a voting member next year and 2016 – in a presentation Thursday.   "Yet the Committee has not proceeded with liftoff...[leaving it] ahead with results, behind on rates."   Today's "strengthening payrolls," Bloomberg quotes a pension fund analyst in New York, "are going to add to the perception that the Fed is going to raise rates sooner...[a] negative for gold."   "The outlook for higher [US] rates," says Germany's Commerzbank in a note, "continues to suppress demand for gold as safe haven investment."   "Gold doesn't earn any yield or return," agrees SocGen's precious metals analyst Robin Bhar in London.   "Investors are becoming more disillusioned when it comes to gold."   Bullion held to back shares in the SPDR Gold Trust – the world's largest exchange-traded fund by value at its 2011 peaks – slipped again on Thursday to reach new 6-year lows at 767 tonnes, down over 45% from end-2012.   But looking at speculative bets against gold prices in US futures and options, "The market is very short and a bad number [would] see a sharp short covering rally," said a London brokerage ahead of the NFP report.   Heading for a 1.5% weekly loss in Dollar terms, gold by Friday afternoon stood only 0.3% lower in Euros and virtually unchanged against the British Pound or Swiss Franc.   Despite China's continuing Golden Weeks holidays, Asian traders saw "good buying" overnight according to one trader, as gold prices held above $1210.   The Shanghai Gold Exchange will re-open on Wednesday next week.   Pro-democracy campaigners in Hong Kong meantime threatened today to pull out of talks over with the city's CEO, C.Y.Leung, after fights broke out following 5 days of peaceful street protests.

Gold Coin Demand Up, Silver Relatively Better Posted: 03 Oct 2014 05:00 AM PDT As gold and silver prices are going down, demand for coins are going up. Shouldn’t things be the other way around? Perth Mint announced that gold coin demand has hit the highest point in the last 11 months. Bloomberg reports Gold Sales at Perth Mint Reach 11-Month High as Prices Retreat: Gold sales from Australia's Perth Mint, which refines all the bullion output in the world's second-biggest producer, climbed 89 percent in September to the highest level in almost a year as prices declined. Sales of gold coins and minted bars rose to 68,781 ounces from 36,369 ounces in August and the most since October 2013, according to data from the mint compiled by Bloomberg News. Sales were about 68,487 ounces in September 2013, data show. The same article points out that the U.S. Mint, the largest Mint in the world, sold 58,000 ounces of American Eagle gold coins in September from 25,000 ounces in August and 13,000 ounces a year earlier. When look at silver coins it becomes even more interesting. This chart comes from Sharelynx (the most extended resource for data related to the precious metals market). It shows how silver coin sales, expressed in dollar value (not in number of coins sold), is as high as gold coin sales. Why is this an interesting evolution? Because the price of silver has decreased faster than the one of gold, evidenced by the gold to silver ratio standing at 61 early this year and 71 today. The red line is clear: as of 2013, when the futures market has been pushing precious metals prices significantly down, the physical market has been reviving every time again. Although safe haven demand for gold coins has gone up, silver has done even better in relative terms given an increasing gold to silver price ratio.

Another Sign Of Gold Moving Back Into The Financial System Posted: 03 Oct 2014 03:00 AM PDT This article appeared on Sovereignman.com on October 2nd. We are reprinting this in its entirety because it is a must-read. In 1324, Mansa Musa, the tenth emperor of the Mali Empire, set off from Western Africa on his pilgrimage to Mecca.This was no Spartan journey. He was accompanied on his way by a procession of 60,000 men and 12,000 slaves, each of whom carried up to four pounds in gold bars. Musa is might just have been the richest person of all time, with an accumulated wealth estimated at $400 billion valued in today's increasingly worthless dollars. But it wasn't just kings and emperors who held gold. Gold has been the most widely-used medium of exchange in world history… across all points of the globe. Ibn Battuta was a 14th century traveler and explorer whose famous grand adventure spanned 75,000 miles over the course of 24 years, much like Marco Polo's. Everywhere he traveled– North Africa, Middle East, Central Asia, India, Southeast Asia, China – gold was either the dominant currency or an easily accepted medium of exchange.This barbarous relic has stood the test of time across cultures around the world for millennia as a form of wealth. Most people in the West have completely lost sight of this. They view the value of gold through the lens of paper currency, i.e. an ounce of gold is 'worth' 1,215 US dollars. This is a deeply flawed perspective. Looking at the gold price moving up and down in US dollars is something like sitting in a rowboat on choppy waters believing that it's the beach that's moving up and down. Einstein might say that it's all relative, but only one has any real stability. But perspectives can and do change. There once was a time when most people believed that the entire universe revolved around the Earth. This was flawed (and arrogant) view, and it was eventually corrected. Thinking that the global economy revolves around the US dollar is just as flawed and arrogant. And it will soon be discredited just the same. History tells us that dominant monetary systems invariably have an expiration date. From the Byzantine solidus to the British pound, this is especially true when a superpower enters into decline and plays destructive games with its currency. Today's system where an unelected central banking elite conjures trillions of dollars and euros out of thin air is no different. It has an expiration date too. Change is never easy. People don't like it, and will resist change even if their current situations are terrible. Inertia is the most powerful force in the universe after all. Desirable or not, it's happening. The US dollar's days are numbered. Now, gold, with its millennia-long history is making a comeback. We're not just talking about it as a store of wealth or a speculation, but as a regular form of currency. Moving us back in this direction, Singapore Exchange launched a new arrangement this week where institutional-sized gold contracts will settled not in cash, but in 1kg bars of gold. This means that each of these contracts is intended to deliver and store gold in Singapore on behalf of large financial institutions, central banks, and even governments. Sure, Singapore wants to advance itself as THE gold hub of Asia. We've been writing to our premium members about this for years. But more importantly, it's quite telling that major insiders within the financial system itself are pursuing this contract. They're effectively setting up a new system, in Asia, to afford governments and central bankers the opportunity to trade in their US dollars for something real. Just like yesterday's post about the renminbi / euro convertibility, this is truly a canary in the coalmine moment for the future of the US dollar… as well as gold's emerging role in the financial system of tomorrow.

The Velocity of Money Myth… Posted: 03 Oct 2014 02:44 AM PDT If there is one concept that illustrates the difference between a top-down macro-economic approach and the reality of everyday life it is the velocity of circulation of money. Compare the following statements: “The collapse in velocity is testament to the substantial misallocation of capital brought about by the easy money regimes of the past 20 years.” Broker’s research note issued September 2014; and

Gold, Comfort, Karma, and Money Velocity Posted: 03 Oct 2014 02:40 AM PDT I keep hearing... "You don't want a world where silver is $350 or gold is $10000". Maybe not. But the probability of that happening, with all the "known, knowns" of risk - make it crucial to own some amount just in case. Obviously, you know this as well as anyone. And no one wants chaos, suffering, and war. Just as no one wants a world of extreme, speculative excess that is so dangerous and extreme that very little remains of a real economy.

If Only Mr.Market Were Alive Posted: 03 Oct 2014 02:00 AM PDT Bond yields over 3% will cripple the economy. Below 2% means it's already happened...   The DOW fell 238 points Wednesday, and Treasury debt rallied, says Bill Bonner in his Diary of a Rogue Economist.   The yield on the 10-year T-note fell the most in nine months – to 2.4%.   News reports blamed "geopolitical challenges" in Hong Kong, the Middle East, Ukraine and elsewhere.   That may be part of it. But this is also October – the month QE is expected to end.   Between 2009 and 2014, the Fed bought $3.6 trillion of US government and mortgage-related notes and bonds. During that time $5 trillion has been added to the value of the US stock market. And the price of the average house has risen by $60,000.   This was achieved largely by holding Mr.Market's head underwater until he stopped squirming.   We don't know what the natural real interest rate should be. Only Mr.Market, if he were among the living, could tell us. But this week's action suggests it is lower than almost anyone thought.   Whatever the interest rate "should" be, if it isn't a very low number the economy will soon be in deep trouble. And if it is a very low number, the economy already is in deep trouble.   In other words, there is no yield above, say, 3% on the 10-year T-note that won't cripple the economy. And there is no yield below, say, 2% that doesn't mean it has already had both its legs broken.   Does that make sense, dear reader?   A naturally low interest rate signals that there are few willing borrowers – perhaps because the economy is creaking to a halt...or perhaps because foreigners are afraid to put their money anywhere else.   A naturally high interest rate signals that business is picking up. Borrowers need money to finance expansion. Interest rates might be expected to return to "normal".   What?   Today's debt-soaked institutions couldn't stand it. Businesses and government have added trillions of Dollars in debt since 2008.   Both are in worse shape to withstand a crisis...or even moderately higher interest rates...than they were then before.   Take the US federal government, for example...   People typically focus on the deficit as the measure of the feds' borrowing. Actually, it is many times that amount. Because the feds reduced their borrowing costs by shifting from long-term bonds to short-term notes and bills.   This means Washington has to roll over about $8 trillion in debt a year.   It also means that even a small increase in interest rates would be disastrous to US finances. From Michael Snyder, writing at The Economic Collapse blog: "The only way that this game can continue is if the US government can continue to borrow gigantic piles of money at ridiculously low interest rates.   "In the United States today, we have a heavily socialized system that hands out checks to nearly half the population. In fact, 49% of all Americans live in a home that gets direct monetary benefits from the federal government each month according to the US Census Bureau.   "And it is hard to believe, but Americans received more than $2 trillion in benefits from the federal government last year alone.   "At this point, the primary function of the federal government is taking money from some people and giving it to others. In fact, more than 70% of all federal spending goes to 'dependence-creating programs', and the government runs approximately 80 different 'means-tested welfare programs' right now.   "But the big problem is that the government is giving out far more money than it is taking in, so it has to borrow the difference. As long as we can continue to borrow at super low interest rates, the status quo can continue." The vanity of the Fed's interest policy is that it presumes a group of economists can do a better job of finding a suitable price for credit (money) than Mr.Market.   Fed economists must put something in their morning coffee. How else could they believe two contradictory things all day long without going insane?   First, they believe that only Mr.Market knows what things should cost. Second, they also believe they can get along without him.   The central tenet of the Efficient Market Hypothesis is that Mr.Market knows more than we do. If he sets a price, it may not be perfect, but there isn't a better one.   That is the doctrine that led Greenspan, Bernanke and Yellen to tell us that they wouldn't know a bubble if it exploded in their faces.   How could prices be "too high"?   It is logically impossible, if markets are "efficient" at setting prices.   Likewise, how could interest rates be "too low" – even if the Fed put them there?   Said efficient markets guru Eugene Fama in a 2010 interview: "I don't even know what a bubble means."   In theory, there is nothing to worry about no matter how "out of whack" things seem to get. No bubbles. No distortions. No problems. Every price is beautiful, in its own way.   But in practice, the Fed's naïve meddling causes big trouble...because the economy adapts to an unreal world.   Decisions are taken, and plans are made, based on distorted prices. Pretty soon, the economy as we have come to know it can't live without them. Snyder again: "Back in 1965, only one out of every 50 Americans was on Medicaid. Today, more than 70 million Americans are on Medicaid, and it is being projected that Obamacare will add 16 million more Americans to the Medicaid rolls.   "When Medicare was first established, we were told that it would cost about $12 billion a year by the time 1990 rolled around. Instead, the federal government ended up spending $110 billion on the program in 1990, and the federal government spent approximately $600 billion on the program in 2013.   "It is being projected that the number of Americans on Medicare will grow from 50.7 million in 2012 to 73.2 million in 2025.   "At this point, Medicare is facing unfunded liabilities of more than 38 trillion dollars over the next 75 years. That comes to approximately $328,404 for every single household in the United States.   "Right now, there are approximately 63 million Americans collecting Social Security benefits. By 2035, that number is projected to soar to an astounding 91 million.   "Overall, the Social Security system is facing a $134-trillion shortfall over the next 75 years. The US government is facing a total of $222 trillion in unfunded liabilities during the years ahead. Social Security and Medicare make up the bulk of that." Yes, dear reader, the longer you spend in the economists' magical theory world, the more threatening the real world becomes.

Silver "a Screaming Buy", Crude Oil "Going to $60" Posted: 03 Oct 2014 01:57 AM PDT The beautiful thing about pessimism towards junior precious metal miners...   KAL KOTECHA is editor and founder of the Junior Gold Report, a publication about small-cap mining stocks.   Kotecha has previously held leadership positions with many junior mining companies, and after completing a Master of Business Administration in finance in 2007, he is now working on his PhD in business marketing, and also teaches economics at the University of Waterloo.   Here Kal Kotecha tells The Gold Report's sister title, The Mining Report, that to obtain superior results, you cannot do what everyone else is doing. He maintains that much of the risk associated with junior resource equities has been beaten out by the herd mentality and that selectively buying what's left presents opportunity...   The Mining Report: You're the editor of Junior Gold Report, but you also follow similar-sized companies in the energy sector. Please give our readers an overview of the energy space.   Kal Kotecha: I've been involved in the space since 2002 and I've never witnessed anything like what is currently happening. In the energy sector, I see the price of uranium increasing, but to see price appreciation across energy stocks, the price of oil must remain near $100 per barrel. That benchmark could prove challenging, given the growing supply of shale oil in the US Texas produces as much oil as Iraq or about 3 million barrels of oil per day. Most of it comes from two sources: the Eagle Ford Shale in southwest Texas and the Permian Basin in west Texas. Chris Guith, senior vice-president of policy for the US Chamber of Commerce's Institute for 21st Century Energy, estimates that recoverable resources amount to 120 years of natural gas, 205 years of oil and 464 years of coal at current demand levels.   Fracking has lowered the price of natural gas by about 70% over the previous seven years or so. The price of oil, especially in the US, should decrease to $60-70 per barrel on average because of shale oil. US dependency on imported oil should lessen, too.   TMR: Is that a near- or medium-term forecast?   Kal Kotecha: That's a medium- to longer-term forecast. I don't believe in peak oil theory. The US' savior in the oil industry is going to be shale oil, and there is a lot of it. Ultimately, that's going enhance the US economy. Basically everything runs on oil. The US won't have to import as much oil from Saudi Arabia or even Canada.   TMR: What's your price forecast for natural gas?   Kal Kotecha: Natural should stay between $4-6 per thousand cubic feet (Mcf). It's more expensive in Europe, but in North America the floor should remain around $4/Mcf. I don't think it's going to go back up to $12 or down to $3.   TMR: You mentioned earlier that you expect uranium prices to rise.   Kal Kotecha: Uranium is an interesting space. As oil prices slowly decrease, the demand for uranium seems to increase. Geopolitical tensions, especially in Russia and Ukraine, could lead to much higher prices. Russia is a large uranium producer and Western nations might stop importing uranium from Russia if political fires burn much hotter.   As of last month, China had 21 nuclear power reactors operating on 8 sites and another 20 under construction. China's National Development and Reform Commission intends to raise the percentage of electricity produced by nuclear power to 6% by 2020 from the current 2% as part of an effort to reduce air pollution from coal-fired plants. Ultimately, uranium demand will triple inside six years.   In India, the government is expected to spend nearly $150 billion to develop nuclear power over the next 10-15 years. India now has nuclear energy agreements with about a dozen countries and imports primarily from France, Russia and Kazakhstan.   TMR: In a recent note on Junior Gold Report you wrote, "I smell smoke, but where's the fire?" in relation to the current sentiment in the junior precious metals market. What's your conclusion?   Kal Kotecha: The current pessimism surrounding the junior precious metal space has largely contributed to the fall in price of the commodities, but the beautiful thing about pessimism and hate towards a market sector is that there is plenty of room for error. Fantastic opportunities arise when great companies have been undervalued due to negative news that does not have a long-term impact on the company. So how do you determine which stocks, in a beaten up resource market, are great buys?   TMR: Do you have an answer?   Kal Kotecha: One must understand the essential principles of intrinsic value and the margin of safety. The principle of intrinsic value determines the worth of a stock through a combination of the price and the condition of the company. So no matter how great a company is, it may not always be a good investment. As Howard Marks wrote in The Most Important Thing: Uncommon Sense for the Thoughtful Investor, investment success doesn't come from buying good things, but rather from buying things well.   The principle of the margin of safety involves minimizing risk and then, therefore, minimizing the potential loss of one's money. Dealing with risk is a necessary part of investing, as stock price fluctuations occur and are often unpredictable. If the risk perceived by the herd – general investors who follow the majority – is less than the actual risk, then the returns will outweigh the risks. So when consensus thinks something is risky, the general unwillingness to buy it pushes the price down to where it is no longer risky at all, given it still has intrinsic value, because all optimism has been driven out of the price.   TMR: What are some metrics to help investors?   Kal Kotecha: A junior mining company's ability to produce resources at a cost below its market price is essential for its sustainability. Junior mining companies should be judged by their ownership of mines, the quality of these mines and how management has executed similar projects in the past. Determining whether this data has been incorporated into the stock price is essential when seeking undervalued companies. I think this is where a lot of resource investors get duped.   Do you smell the smoke? I suggest investigating the source. I'd say that the herd is done shouting fire, and smart investors are filling up their baskets with goodies. But don't forget to do your research, check the facts and invest in a contrarian fashion. To obtain superior results, you cannot do what everyone else is doing.   TMR: Many investors have heard the adage "buy when there's blood in the streets." When should investors reasonably expect to start making money again, given the current market conditions?   Kal Kotecha: That's a billion-Dollar question. A lot of colleagues have predicted prices that have not come true yet. The big upswing in gold in the late 1970s was followed by a collapse and we had to wait 20 years for another upswing. It's already been three years. I don't think we have to wait another 5 or 10 years, but there is going to be a time very soon where investors will be rewarded. I think when the upswing happens it's going to be very parabolic. I think it's going to take wings on its own. Patience will be rewarded.   TMR: What gold price are you using in your analysis?   Kal Kotecha: $1200 an ounce. Many factors go into determining the price of commodities, especially gold and silver. Some of these factors include price manipulation, which cannot be foreseen; geopolitical strife; and import quotas, which are happening in India. However, I remain very bullish on precious metals in the long-term.   The best buy right now is silver. Silver is a screaming steal at $18 per ounce. I first started buying silver at around $7 per ounce in 2003 and I sold quite a bit in the $48 range a few years ago. I'm starting to accumulate silver quite heavily again. The ratio of gold to silver prices is currently around 68:1. I see that going to 50:1. If there's another precious metals mania, perhaps 25:1. Silver demand is also very high. A record 6,000 tonnes silver was imported into India last year – roughly 20% of global production.   TMR: What's your advice for investors in the current junior resource market?   Kal Kotecha: I think a combination of five or six stocks in a portfolio with a mix of junior energy and mining equities is probably a good start. That's what I do. It's difficult for the average investor to follow more than five companies.    TMR: Thank you for your insights, Kal.

HUI Gold Stocks Analysis Posted: 02 Oct 2014 10:48 PM PDT In February of 2013 we noted the big fat HEAD on the HUI’s massive H&S pattern.  It was reviewed again in April of 2013 after it broke the neckline in a very bearish move.  Mr. Fat Head’s technical objective was and is 100. Why is this being revisited?  Because I have gotten a couple emails noting that it is showing up again out there amidst the very bearish backdrop.  If anything, if every gold bug on the planet is planning for 100, the ingredient is in place for this final indignity that they are so well prepared for, to maybe not happen.

Investors, Pay Attention: Causes and Implications of U.S. Dollar Strength Posted: 02 Oct 2014 05:00 PM PDT All of the money created by the world's central banks is looking for a home where it will earn a return — without being eroded by inflation. And right now, its best option is to buy assets denominated in U.S. Dollars.

Look Out Below for Gold Posted: 02 Oct 2014 05:00 PM PDT Gold experienced a spectacular bull market run from its low at $250 an ounce in 2001 to its peak above $1,900 an ounce in 2011. Its long bull market was largely supported by expectations that the Fed's easy money policies would create spiraling inflation...

Weekday Wrap-Up: Gold, Cashless Societies, Bubbles, and Bull Markets Posted: 02 Oct 2014 05:00 PM PDT We had an interesting line-up of guests and topics this week for our premium channel: Ross Hansen discussed gold and our slow move towards a cashless society, Urban Carmel talked about the tech bubble and not to expect such euphoria again, Marc Chandler talked about a multi-year bull market in the dollar, and, lastly, Dan Steffens addressed the energy markets.

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