Gold World News Flash |
- Pento – Expect 2008-Style Collapse But Gold Headed Higher
- Jim Grant: We’re In An Era Of "Central Bank Worship"
- War in Gold Accelerates As US Trading Partners Flee The Dollar
- War in Gold Accelerates As US Trading Partners Flee The Dollar
- Will Europe Be Lead the World Into Another Financial Crisis?
- Current Economic Collapse News
- Gold Investors Weekly Review – October 3rd
- Jim Sinclair: Spoofing play won't keep gold down for long
- Tocqueville's Hathaway: China has it right about gold and the dollar
- Chart Analysis – Gold And Silver Price Trending Lower Until Demand Returns
- Here We Go Again: Greece Will Be In Default Within 15 Months, S&P Warns
- Pento - Expect 2008-Style Collapse But Gold Headed Higher
- Gold In The News This Week
- Gold And Silver - Elites V Gold: Still No Contest
- AMERICA is on the BRINK of COLLAPSE WW3 -- Paul Craig Roberts
- Bitcoin vs Gold, Manufacturing and Seed Germination
- Scotiabank confirms Jansen: China gold demand far greater than World Gold Council says
- Gold Price Look Out Below
- Gold and Silver to Face More Body Blows
- “Money Bubble†Predictions Coming True - Stock Market Volatility Surges
- The Sound Money Business: Four Years Past and Future Forecast
| Pento – Expect 2008-Style Collapse But Gold Headed Higher Posted: 05 Oct 2014 12:30 AM PDT from KingWorldNews:
Under the stewardship of Shinzo Abe, Japan has become a global leader in debt, currency devaluation, and inflation. Unfortunately for the Japanese, Abenomics is also leading Japan into a hyperinflationary depression, as the first of his three arrows has shot right through the yen and put a gaping hole in the wallets of every Japanese citizen. The Bank of Japan has placed all its chips on the bet that inflation will cure all the nation's economic problems. Making deflation Public Enemy No. 1 is rather convenient when your country’s public debt to GDP is the highest in the world. To end deflation, the central bank has purchased 70 percent of all newly-issued Japanese Government Bonds. All this money printing is intended to get prices rising, and it has been very successful. Japan’s consumer prices rose 3.1 percent in August from a year earlier. Prices for fuel, light, and water rose 6.4 percent on the year. But as real wages continue to fall, the policy appears to aim to destroy the Japanese middle class. | ||||||
| Jim Grant: We’re In An Era Of "Central Bank Worship" Posted: 04 Oct 2014 10:25 PM PDT By Henry Bonner of Sprott Global Jim Grant: We're in an Era of 'Central Bank Worship' Jim Grant is the publisher and editor of Grant's Interest Rate Observer, a bi-monthly newsletter that he founded in 1983, around the time when bonds were considered some of the worst investments – when they yielded 13 to 15 percent. Rick Rule, Chairman of Sprott US Holdings Inc., often quotes Jim Grant's description of government bonds as 'return-free risk.' (Rick sees US Treasuries as the 'anti-gold'). Mr. Grant took my questions on interest rates and the bond market – including Bill Gross' recent departure from PIMCO – via phone from his Manhattan office. Mr. Grant, you argue that companies whose share prices are rising should be becoming more efficient – hence driving down the costs of consumer goods and services. The Fed is succeeding in keeping both stock market prices and consumer goods prices moving higher – which look like contradictory goals. Do you think this situation is sustainable going forward? Many years ago, falling prices were a sign of improved efficiency and expanding wealth, and of widening consumer choice. Thanks to the spread of electricity and other such wonders in the final quarter of the 19th century, prices dwindled year by year at a rate of 1.5% to 2% per year. People didn't call it deflation – they called it progress. Similarly, in the 1920's there were advances in production techniques. The prices didn't decline and didn't rise. They were stable. Looking back on the 20's from the vantage point of the 30's, many people wondered why prices had not fallen. They concluded that it was because the central banks were emitting too much credit, and that credit had served to inflate asset values. It had also pushed the world into a very imbalanced credit and monetary situation towards the close of the 20's. Fast forward many generations and here we are today with a world-wide labor market linked through digital technology. We are the beneficiaries of Moore's law. Nearly every day we see new, wonderful, labor-enhancing machinery coming into the workplace – including new software. And yet, prices don't fall. They tend to rise, albeit by 1% or 2% per year. Central banks seem to want more than that. You do wonder – I wonder – what would be wrong with what Wall Mart calls 'everyday low and lower prices.' People seem to rather relish that – certainly when shopping on the weekends. Central banks want no part of it. So, I see that as a contradiction. What central banking policy has done is to inflate consumer prices that, if the laws of supply and demand were properly functioning, would have tended to fall. At the same time, central bank policy has tended to inflate the prices of stocks, bonds, and income-producing real-estate. Why it is that these immense emissions of new credit by the central banks have not been inflationary? Well, it seems to me that they have been inflationary, because prices are rising not falling. Do you think that the situation will continue going forward – rising consumer prices along with rising stock prices? What I don't know about the future, we don't have the time to go into. I dare say that stock prices will not continue to rise uninterrupted at the same pace. That's not a very interesting prediction, but the stock market is certainly a cyclical thing. Stock prices will pull back in the fullness of time, whether it starts 5 minutes, 5 months, or 5 years from now. I think it's fair to observe that today's ultra-low interest rates flatter stock market valuations. Stock prices are partly valued based on a discounted flow of dividend income. To the extent that the discount rate you use to value that stream of dividend income, which depends on interest rates, is artificially low, stock prices are artificially high. I think that the burden of proof is on anyone who would assert that we are in a new age of persistently and steadily rising stock prices. On the subject of bond markets, you've said: "does it not seem incongruous to chase low-yielding fixed-income securities denominated in a currency that the central bank is vowing to inflate?" Why do you think that investors go into bonds despite the Fed's intention to devalue them over time? Well, I can't explain it. I can try to piece together what might be driving people to do that, but, to me, it's a mystery. One thing to bear in mind is that bond prices have been rising and yields have been falling since fall of 1981. That's a long time and there's something in financial markets that we might call 'muscle memory.' Long-running trends tend to gather force, just as a rock rolling down a hill tends to pick up speed. There's something about the persistence and age of this bull market that leads more people to think that it will continue. That said, fixed-income investors are intelligent and reasoning people. That can't be the entire explanation. I see that in Europe money market interest rates are trending below zero. You have to search long and hard over the globe to find government securities in developed countries yielding more than 2%. In Ireland, some short-term securities are yielding less than 0%. Why would people buy them? I simply don't know – I can't fathom it --, but they certainly are, hand over fist. You've also said that Treasury investors may 'repent at their leisure' for buying US Securities, and that corporate investors will one day wish they had not invested so heavily in corporate bonds. Do you see a bear market coming imminently for bonds? Yes – starting about 2002… Henry, now, that's meant to be a laugh line. I have wholly been way out of step with the bond market for a long time, and everything that I say with regards to the future of interest rates deserves to be written in something like invisible ink. You know, in a work entitled 'Security Analysis,' a work about value investing written by Benjamin Graham and David Dodd, this approximate phrase appears: "bond selection is a negative art." Well, what Graham and Dodd meant by that is that, because the buyer of a bond at par can do no better than getting his money back and earning some interest along the way, the prospect for gain is inherently limited. Risk ought to be at the front of the mind of the creditor. There are no 2 or 3-baggers in investment-grade bond investing. You have to be mindful of what can go wrong, and it seems that the world over, thanks to these policies by central banks, bond investors are not looking at risk, or feel they can't afford to look at risk. Rather, they are grasping at the few straws of yield that remain and I think that posterity will look back at this with wonder. "Think of it" – I'm now putting words in posterity's mouth. "Think of it, people were buying as if the supply were limited. They were buying government securities, which yielded practically nothing. They were buying bonds denominated in currencies that the central banks explicitly vowed to depreciate. Why did they do that?" So, I think posterity will ask that question. Certainly I am asking that question now, and I can't come up with a really persuasive answer. What would a bear market in bonds look like? Would it be accompanied by a bear market in the stocks? Well, we have a pretty good historical record of what a bear market in bonds would look like. We had one in modern history, from 1946 to 1981. We had 25 years' worth of persistently – if not steadily – rising interest rates, and falling bond prices. It began with only around a quarter of a percent on long-dates US Treasuries, and ended with about 15% on long-dated US Treasuries. That's one historical beacon. I think that the difference today might be that the movement up in yield, and down in price, might be more violent than it was during the first ten years of the bear market beginning in about 1946. Then, it took about ten years for yields to advance even 100 basis points, if I remember correctly. One difference today is the nature of the bond market. It is increasingly illiquid and it is a market in which investors – many investors – have the right to enter a sales ticket, and to expect their money within a day. So I'm not sure what a bear market would look like, but I think that it would be characterized at first by a lot of people rushing through a very narrow gate. I think problems with illiquidity would surface in the corporate debt markets. One of the unintended consequences of the financial reforms that followed the sorrows of 2007 to 2009 is that dealers who used to hold a lot of corporate debt in inventories no longer do so. If interest rates began to rise and people wanted out, I think that the corporate debt market would encounter a lot of 'air pockets' and a lot of very discontinuous action to the downside. Is it possible for the Fed to 'lose control' of the bond market and yields? Absolutely, it could. The Fed does not control events for the most part. Events certainly will end up controlling the Fed. To answer your question – yeah. I think the Fed can and will lose control of the bond market. So no matter how many bonds the Fed buys, it eventually won't be enough to keep yields low? Well, let's try to imagine a case where the Fed proposed to buy every single bond in existence. To do that, it would undertake to print more money than we – even us hardened veterans of the QE era – could imagine. If the Fed undertook to print the money necessary to buy all the bonds on offer, it would spook at least the more thoughtful investors, who would see that the Fed would certainly be undertaking a truly radical program of inflation. It seems like the Fed is doing almost exactly that today – and we're still waiting to see the adverse effects. Well, yes indeed. I think this is a time where people will look back on us and see it as a period of practically central bank worship. The central bankers – Draghi, Yellen, Bernanke – have become almost celebrities in America. People have invested unreasonable hopes in what these central banks can know, and what they can do. I think that, sooner or later, the investing public will become disillusioned of these ideas. What are 'safe haven assets' if you believe that a bear market in bonds is inevitable? Well, if we believe that financial markets are cyclical, then bear markets are inevitable -- just as bull markets are inevitable. I wish I could tell you when these will happen – I can't. I think that the nature of a safe haven will depend on the type of bear market and the reason for that bear market. You can imagine a bear market in bonds where the reason was an unscripted burst of prosperity. Let's say that the indestructible American economy, for whatever reason, got back its mojo, and the Fed seemed to be way behind the curve. Interest rates would go up for the wholesome reason that things were looking better. At that point, you could make a very good case for common stocks. If the bond market sold off because of a sudden and unscripted loss of confidence in the currency, that would be a different matter altogether. I think that 'safety' is not inherent to any asset – rather, 'safety' is a function in large part of valuation. Towards the tail end of the great bond bear market of 1946 to 1981, people were fed up with fixed-income securities. They only seemed to go down in price –investors were always disappointed. They slapped various labels of scorn on the entire asset class. That was when people first called them 'certificates of confiscation' – and that was when they yielded 13%, 14%, or 15%. They certainly were not certificates of confiscation as events revealed. Today, when bonds yield a great deal less than 13, 14, or 15%, most investors regard them as intrinsically safe assets. Well, they are not intrinsically safe. They are popular – that's a very different matter. At Grant's, we try to look for assets that are castoff, unpopular, out-of-favor, and value-laden. We have been looking at common stocks in, for example, Argentina and Russia. These are places that would appear to be inherently unsafe. We've of course been looking at gold and gold mining shares for a long time too. What gold, Argentina, and Russia have in common is that people are, by and large, going from them rather than towards them. If you asked the average person on the street whether securities relating to those three areas were safe or unsafe, I think that 99 out of 100 would say 'unsafe.' There is a great deal to be said for the ultimate safety that low valuations afford. That's how we approach the situation. A little bit less exotically, we've been looking at business development companies generating attractive cash flows in this time of 'yield famine.' 'Safety' is a tricky and paradoxical concept. The safe assets are often the ones that people regard as hopelessly risky. One more question – Bill Gross recently announced his departure from PIMCO. Is this a trivial event, or a sign of something more fundamental happening in the bond market? I don't know how to read it. Maybe after 40-odd years in the same place, Bill Gross deserved a change of scenery? I think he has enough money to retire – I dare say he could scrape by on a billion or so. He seems to want to continue to work – that's laudable. Insofar as his exit having a deeper meaning, it may be to underscore the new illiquidity of the bond market. On news of his exit, a lot of different classes of fixed-income securities sold off, and I wouldn't have expected Treasuries and mortgages to move the way they did. We at Grant's think that the illiquidity of fixed-income securities might be one of the important themes of the coming autumn for the bond market. By 'illiquidity,' you mean that investors are unable to buy and sell bonds easily? It's not difficult to buy them. So it's difficult to sell them. Correct. What you want is a 'greater optimist' and it's not clear that a 'greater optimist' will be available when you want to get out. | ||||||
| War in Gold Accelerates As US Trading Partners Flee The Dollar Posted: 04 Oct 2014 09:02 PM PDT  Today a legend who was recently asked by the Chinese government to give a speech to government officials in China told King World News that the war in the gold market is now accelerating as America's trading partners are fleeing the U.S. dollar. John Ing, who has been in the business for 43 years, also spoke about the currency wars which are breaking out that will only add fuel to the global fire.This posting includes an audio/video/photo media file: Download Now | ||||||
| War in Gold Accelerates As US Trading Partners Flee The Dollar Posted: 04 Oct 2014 09:00 PM PDT from KingWorldNews:
At the same time, the U.S. Dollar Index is trading well above 86 and that has been the major reason for the weakness in gold and the disappointment in gold mining shares. However, when you look at the strength in the U.S. dollar in technical terms, it is not only overbought, but technicians might note that it is way overextended as far as its relative strength and way above the Bollinger Band. If we look back at 2002, every time the U.S. dollar went above its Bollinger Band, and I believe that happened five times since then, it has quickly reversed itself and gone back to normal. | ||||||
| Will Europe Be Lead the World Into Another Financial Crisis? Posted: 04 Oct 2014 05:25 PM PDT he Markets Call “BS” on Draghi’s Promise
In 2012, ECB President Mario Draghi, pulled the EU back from the brink of collapse by promising to do “whatever it takes” in the summer of 2012.
Since making that promise, the two biggest problem countries for the EU, Spain and Italy, have both seen the yields on their bonds fall.
Draghi’s promise also lit a fire under EU stocks, with Spanish, Italian, and German markets roaring higher.
It is critical to note that Draghi accomplished this without actually doing anything. All he did was make a verbal commitment.
The only problem with this is that while sovereign bond yields have fallen and EU stocks have rallied, the EU economy has not recovered. GDP growth for the EU as a whole was a measly 0.2% in 2014… the same as fourth quarter 2013.
Indeed as the below chart indicates, the supposed “recovery” Draghi had hoped his promise would create has failed to manifest.
Draghi tried to gun the system by cutting interest rates to negative in June then launching an asset purchase program this month… but neither policy looks to be changing anything.
Italy is back in recession for the third time since 2008. Germany’s economy contracted in the second quarter of 2014 and will likely be in recession before the first quarter of 2015. France has registered zero growth for six months now.
And the markets smell “trouble.”
European financials have taken out the trendline that supported them since the 2012 bottom:
Europe’s crisis is not over, not by a long shot. Mario Draghi has thrown everything, including the kitchen sink, at the economy over there and has failed to create sustainable growth. It’s now just a matter of time before the next round of the Financial Crisis hits and the whole mess comes crashing down.
If you’ve yet to take action to prepare for the second round of the financial crisis, we offer a FREE investment report Financial Crisis "Round Two" Survival Guide that outlines easy, simple to follow strategies you can use to not only protect your portfolio from a market downturn, but actually produce profits.
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Best Regards
Graham Summers
Phoenix Capital Research
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| Current Economic Collapse News Posted: 04 Oct 2014 04:22 PM PDT In this news brief we will discuss the latest news on the economic collapse. We look to see if things are really that different. The central bank will not stop at just confiscating your wealth they will want your life. They want to enslave the people. [[ 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! ]]  | ||||||
| Gold Investors Weekly Review – October 3rd Posted: 04 Oct 2014 12:49 PM PDT In his weekly market review, Frank Holmes of the USFunds.com summarizes this week's strengths, weaknesses, opportunities and threats in the gold market for gold investors. Gold closed the week at $1,191.76 down $26.62 per ounce (-2.18%). Gold stocks, as measured by the NYSE Arca Gold Miners Index, fell 5.70%. The U.S. Trade-Weighted Dollar Index rose 1.19% for the week. Gold Market StrengthsGold coin sales out of the Perth Mint, Australia's largest gold refiner, rose to 68,781 ounces in September, the highest level since October of last year. The increase in buying comes primarily from Asian buyers, who account for 80 percent of Perth Mint's sales. This trend of increasing gold coin sales is playing out in the United States as well, where September sales roughly doubled to 58,000 ounces from August. Gold demand in China is still on the rise. In the past four weeks, withdrawals from the Shanghai Gold Exchange amounted to over 170 tonnes. The increasing purchases out of China and the rest of Asia underline the resilience of gold demand as prices have pulled back. Singapore Exchange Ltd. is set to start trading a kilobar gold contract this month. The exchange joins others in the region, such as the Shanghai Gold Exchange, which started bullion trading in the Shanghai free-trade zone last month. These two developments reveal the importance of the global gold market to Asia. Gold Market WeaknessesThis Wednesday, platinum prices reached a five-year low. The precious metal has been suffering along with its peers in the strong dollar environment. Back in late July and early August, platinum traded at roughly $1,500 per ounce. Currently prices are below $1,300 per ounce. Gold production by United States mines was down 10 percent year-over-year in June. The decline stems primarily from lower production from Barrick Gold's Cortez Mine and Newmont Mining's Nevada operations. In contrast, Russian gold production for eight months this year increased 19 percent year-over-year.
Gold Market OpportunitiesAlan Greenspan, former Chairman of the Federal Reserve, articulated in an article in Foreign Affairs that China would see unexpected strength in the international financial system if it were to convert some of its foreign exchange reserves into gold. Clearly, there is speculation as to the advantages China could have if it were to purchase and hold more gold. With one of China's primary goals being to increase international use of its currency, the yuan, it should accumulate more gold. This is the view taken by Song Xin, President of the China Gold Association, who believes China should accumulate 8,500 tonnes in reserves. This logic stems from the fact that, when each country's currency became internationalized, the United States and the United Kingdom held over 50 percent of their reserves in gold. If China seeks to do the same, gold demand and prices should see substantial gains.
Gold Market ThreatsThe dollar continues to climb higher and higher, weighing on all commodity prices including gold. However, according to UBS, the dollar's rally is due to deteriorating credit as opposed to strong growth in the United States. If true, this would mean more trouble for industrial metals, but gold should ultimately benefit from that outcome.
The United States employment data that was released this Friday showed the unemployment rate falling to 5.9 percent, the lowest level since the summer of 2008. While this may be viewed as a sign of a strengthening labor market, it ignores the fact that the labor participation rate has fallen much further. In September, the labor force participation rate fell to its lowest level in 36 years with more people leaving the workforce than jobs created. People not in the labor force rose to a record high of 92.6 million. Dedicated gold funds are not seeing significant new inflows of cash to add to their positions currently. Some have speculated that gold equities may fall lower if general investors choose to wait until after the Fed hikes interest rates to start purchasing gold stocks. | ||||||
| Jim Sinclair: Spoofing play won't keep gold down for long Posted: 04 Oct 2014 12:27 PM PDT 3:25p ET Saturday, October 4, 2014 Dear Friend of GATA and Gold: Gold mining entrepreneur and market analyst Jim Sinclair today calls the recent clubbing of the gold futures price "a highly organized spoofing play" that won't work for long. His commentary is headlined "Gold in the News This Week" and it's posted at JSMineset here: http://www.jsmineset.com/2014/10/04/gold-in-the-news-this-week/ CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Buy precious metals free of value-added tax throughout Europe Europe Silver Bullion is a fast-growing dealer sourcing its products from renowned mints, refiners, and distributors. Because of a legal loophole that will close soon, you can acquire the world's most popular bullion coins free of value-added tax throughout the European Union. You can collect your order in person at our headquarters in Tallinn, Estonia, or have it delivered in any of the 28 EU countries. Europe Silver Bullion is owned and operated by North American and European experts in selling, storing, and transporting precious metals. We have an extensive product inventory of silver, gold, platinum, and palladium, and our network spans the world. Visit us at www.europesilverbullion.com. Join GATA here: New Orleans Investment Conference https://jeffersoncompanies.com/landing/noic2014?IDPromotion=614011014520... Mines and Money London 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: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: | ||||||
| Tocqueville's Hathaway: China has it right about gold and the dollar Posted: 04 Oct 2014 12:17 PM PDT 3:18p ET Saturday, October 4, 2014 Dear Friend of GATA and Gold: Tocqueville Gold Fund manager John Hathaway's third-quarter letter to investors details how the fundamentals for a much stronger gold price remain in place, and he cites many of the developments to which GATA has called attention in recent weeks. Hathaway's letter concludes: "We take comfort that our positive view of the future dollar gold price is shared by those who understand the difference between synthetic and physical metal and who regard the real substance as a matter of strategic imperative, not as a plaything for macro traders. We believe that China's negative assessment of the future prospects for the U.S. dollar is correct and that our investment strategy of investing in the shares of value-creating gold miners offers sensible and dynamic exposure to the inevitable repricing of gold in U.S. dollars." Hathaway's letter is posted at GATA's Internet site here: http://gata.org/files/TocquevilleGoldStrategyLetterQ3-2014-3.doc CHRIS POWELL, Secretary/Treasurer 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: Join GATA here: New Orleans Investment Conference https://jeffersoncompanies.com/landing/noic2014?IDPromotion=614011014520... Mines and Money London 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: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit:
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| Chart Analysis – Gold And Silver Price Trending Lower Until Demand Returns Posted: 04 Oct 2014 11:49 AM PDT This is an excerpt from Michael Noonan’s latest gold and silver commentary, from which we extracted his excellent chart analysis. The author is using chart analysis (supply/demand analysis at critical price points), which is not the same as technical analysis (in which technical indicators are analyzed). The gold charts and the silver charts are analyzed on several timeframes, which makes the chart analysis more reliable. Each Quarter-ending, we review charts few ever look at, the annual and Quarterly charts. The longer the time frame, the more controlling and the greater effort it takes to effect a change. For all of 2014, so far, it can be readily seen that any rally attempts have been weak, making no upside retracement progress. How much lower could silver go, based on the annual? The low of the wide range rally of 2010, and that would be the $15 area. The breaking of support in September is a narrower range bar relative to a similar break of support in the 2nd Q, six bars from the right on the Qtrly chart. Irrespective of where price may find support, the developing market activity shows no sign of bottoming, and the trend will not change until a bottom forms. Time-wise, this does not argue for a near-term turn from down to at least sideways, before going higher. On the monthly, we give $14.65 as a Last Low Before High [LLBH], an area where price will sometimes return as a retest. That price is close enough to the $15 level from the annual, and one can see a low there on the Qtrly, as well, so it is a price to watch should silver continue lower.  The monthly chart for the silver price remains down. The crux for silver and gold is in the discussion on the weekly chart. Unless and until demand enters the picture, price will continue lower until it finds demand sufficient to effect a change. For right now, there is no demand apparent. It may develop next week, next month, next year, we do not know, but when demand does show up, it will make its presence known.  The weekly silver price chart has broken critical support and does not show signs of exhaustion. The daily says just how weak the silver market is. Whenever price goes under the lower support channel line, it is in oversold territory. Look for how long silver has remained oversold, evidencing no ability to rally, none. Here are a few signs to watch as a check on the character of this market. Resistance can now be expected at failed support, the 18.70 area, seen by the thin horizontal line. If the next reaction rally fails to reach that price, and forms a swing high under 18.70, it will leave behind another area of bearish spacing. Once again, reading the information in present tense, the market gives the most reliable indicators upon which one can rely.  The daily silver price chart shows an acceleration to the downside. As with silver, annual gold has not rallied very much in 2014. At the same time, the decline has been small, but in a down trend, supply has been proven. It is demand that must meet the burden of proof for change and demonstrate an ability to sustain rallies. The Qtrly chart could not be any clearer in begging for a lower low under the 1200 area of support. We saw that at the end of last week, after the Qtr ended, but there is no definitive level of support above 1,100. As shown on the monthly, 1,000 +/- is a logical area of support. Based on the inability of the market to show any kind of support, and knowing Anything Can Happen, that level must be viewed as a possibility, unless or until proven otherwise.  The monthly gold price chart looks like it is going to test $1,000 an ounce. What else can be said. This is like watching a car teetering on the edge of the cliff, waiting to see if/when it falls. The trend is down, and that is all ye need to know.  The weekly gold price chart is right at a critical support level which is not likely to hold. It is a known fact that we are not big on conventional TLs. Sometimes, they can be used to determine the angle of assent in an up market and descent in a down market. Whenever the angle steepens, it can be an alert for a possible end to that phase of trend. This is a daily chart, the lowest of the time frames considered here, so it is not controlling. It is just another factor to watch as the market develops. It seems all the news you read has not affected the down trend, at all, when expectations would dictate otherwise. It is the news no one sees that continues to weigh on the PMs, so a diligence in reading the charts remains the best handle, to date. Do not be long any futures is the clear message. Hold all physical purchases as price is nearer the lows than not, and it is strong hands that buy low, weak hands sell. Pick the kind of company you wish to follow.  The daily gold price chart shows an acceleration to the downside with no signs of selling exhaustion. | ||||||
| Here We Go Again: Greece Will Be In Default Within 15 Months, S&P Warns Posted: 04 Oct 2014 11:24 AM PDT Remember Greece: the country that in 2010 launched Europe's sovereign solvency crisis and the ECB's own helpless attempts at intervention, which later was "saved", only to default shortly thereafter (but without triggering CDS as that would end the Eurozone's amusing monetary experiment and collapse the Deutsche Bank $100 trillion house of derivative cards), which later was again "saved" when every single global central bank made sure Greek bonds became the only yield-generating securities in the world? Well, the country which at last count was doing ok, is about to not be ok. Because according to none other than S&P, at some point over the next 15 months, Greek debt is about to be in default when the country is no longer able to cover its financing needs. In other words, back to square one. As Bloomberg reports, citing Real News, S&P analyst Marie-France Raynaud said Greece can't cover its own financing needs. How is that possible? Isn't Europe so fixed, it no longer has anything to worry about except deflation, pardon, inflation? Guesst not. According to Bloomberg, S&P estimates Greek financing needs for the next 15 months to be at EU43 billion. This is a problem because even if Greece sells bonds this year and next, sales won't be enough to cover net financing needs. So maybe Greece will sell more bonds? Well, the problem with that is that the second the LIFO paradigm of bond investing no longer works, and the last guy in may be stuck holding the bag, nobody will want to buy 1 penny in debt issued by Greece. The specifics: S&P estimates Greece will draw EU5 billion from intl bond sales, EU20 billion from internal mkt, EU12 billion from official lenders inluding the IMF in next 15 mos. S&P also forecasts Greece will repay EU3 billion in bonds held by investors who refused to participate in 2012 debt writedown, and if it doesn't then Greece will following Argentina in being held in "contempt to court" fo cramming down foreign law covenants. Just kidding: that would mean the global legal system actually works instead of serves merely to make the rich richer. As for Greece, it appears that suddenly the idyllic image of its recovery is about to be torn to shreds and the Syntagma riotcam will have to come out of hibernation. Or maybe it won't. In a case of populist pandering that Obama himself would be proud, at the same time as the S&P report hit, the Greek premier Antonis Samaras said in a Kathimerini op-ed that if political stability isn't threatened, Greece won't need emergency loans in few months, and will achieve final settlement on public debt. He added that liquidity in Greece will be restored after ECB stress tests on country's lenders and that in stark contrast to what S&P just said, Greece doesn't need new bailout agreement, no new loans. Actually, it will. The backdoor left open by Samaras is that "achievements will be endangered in case of political instability, and if parliament has to elect president" adding tbat the "government will not allow those who want country to commit suicide to have it their way." In other words, Greece will default the second the people start protesting the crushing, and very simple math, and they decide they have had enough of the technocrat and appoint another president. Because, you see, it is not that Greece implemented zero reform, and rooted out the pervasive cooruption that saw billions in foreign "aid" end up in offshore bank accounts of the political oligarchy, or the simple math of sources and uses of funds: it is the danger of the Greek people returning to what they did best in those days of 2010 and 2011 when every other day saw a riot in the center of Athens, that will be the straw that finally breaks the camel's back. And thus we go back to square one, as we always said we would, when only timing was a matter of debate. Well, we now know the timing: T minus 15 months and counting to yet another Eurozone collapse. | ||||||
| Pento - Expect 2008-Style Collapse But Gold Headed Higher Posted: 04 Oct 2014 11:19 AM PDT  On the heels of another wild week of trading in global markets, today Michael Pento warned that global markets are now set for a 2008-style collapse. Pento also says that investors must own during the coming turmoil because it will act as the true safe haven it has been for thousands of years. This posting includes an audio/video/photo media file: Download Now | ||||||
| Posted: 04 Oct 2014 10:57 AM PDT My Dear Friends, Gold has had a historic amount of negative print and airtime this week. The Yamana and Armstrong comments seem timed perfectly to kick the legs out from under gold. The price of the US Dollar seems to have forgotten it was at .7900 only 11 weeks ago. The dollar has risen because... Read more » The post Gold In The News This Week appeared first on Jim Sinclair's Mineset. | ||||||
| Gold And Silver - Elites V Gold: Still No Contest Posted: 04 Oct 2014 09:41 AM PDT Without question, the least understood, least visible force that affects almost everyone's lives, certainly in the Western world, is that of the elites, the moneychangers, the relative handful that controls everything, from the BIS, IMF, and down to the central bankers. These individuals remain nameless and faceless, but their roots are founded by that widely known banking clan, the Rothschilds. There has been an increase in the vague awareness of the elites acknowledged as forces that control everything, but by and large, such people are pseudo-intellectually aware, a part of the "crowd" that professes to know more than the average individual [which is an easy accomplishment, anyway], but in effect it is a false sense of awareness because these individuals otherwise lead a similar life to the less informed. Both groups remain a part of the "system," maintaining bank accounts, use of credit cards, registered to vote, in fact registered to do everything to meet the requirements of the system that keeps everyone suppressed. | ||||||
| AMERICA is on the BRINK of COLLAPSE WW3 -- Paul Craig Roberts Posted: 04 Oct 2014 09:21 AM PDT US Russia Nuclear War, Gold and Dollar, Failing Economy and Debt-Economist Dr. Paul Craig Roberts thinks the economy is running on borrowed time. Dr. Roberts says, "Whatever blows, it has to be something the government can't rig. The only way it could stop means the government can no longer rig it.... [[ 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! ]]  | ||||||
| Bitcoin vs Gold, Manufacturing and Seed Germination Posted: 04 Oct 2014 09:00 AM PDT Put away money that you didn't spend and where do you put it?There are many risky places, but where is money safe?Keep it at home or in a bank?Where will it grow, fastest?Should we buy gold?When you start asking questions, there seem to be more questions than answers which are clear to allDefining... [[ 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! ]]  | ||||||
| Scotiabank confirms Jansen: China gold demand far greater than World Gold Council says Posted: 04 Oct 2014 06:52 AM PDT 9:53a ET Saturday, October 4, 2014 Dear Friend of GATA and gold: Gold researcher and GATA consultant Koos Jansen details today how a gold market analyst for Scotiabank has confirmed Jansen's interpretation of Chinese gold demand and the workings of the Shanghai Gold Exchange, concluding that Chinese demand is far greater than reported by the World Gold Council, and, crucially, that the People's Bank of China obtains its gold through other means, not through the exchange, signifying that Chinese demand is higher still. Jansen's commentary is headlined "Confirmation PBOC Doesn't Purchase Gold Through SGE" and it's posted at Bullion Star here: https://www.bullionstar.com/article/confirmation%20pboc%20doesnt%20purch... The Scotiabank report is here: http://gata.org/files/ScotiabankChinaGoldReport092914.pdf CHRIS POWELL, Secretary/Treasurer 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: Join GATA here: New Orleans Investment Conference https://jeffersoncompanies.com/landing/noic2014?IDPromotion=614011014520... Mines and Money London 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: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit:
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| Posted: 04 Oct 2014 04:37 AM 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, of which gold, the historical hedge against inflation, would be the big benefactor. However, spiraling inflation did not materialize. In fact, inflation remained quite benign, and in 2011 gold gave up on the idea. It rolled over into a 37% bear market decline to $1,200 an ounce. | ||||||
| Gold and Silver to Face More Body Blows Posted: 04 Oct 2014 04:32 AM PDT Gold has broken below $1200 this morning in what should begin the final breakdown. In weekly and monthly terms $1200 was the remaining support. Sure Gold could bounce from $1180 but todays breakdown is more significant. Both metals are now in breakdown mode while the mining stocks continue to slide. There is more downside ahead and bulls should continue to stand aside before a favorable buying opportunity emerges. | ||||||
| “Money Bubble†Predictions Coming True - Stock Market Volatility Surges Posted: 04 Oct 2014 03:56 AM PDT In The Money Bubble: What To Do Before It Pops, James Turk and I climb out on some long, skinny limbs with a series of extreme predictions. Now it’s time to start tracking 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. | ||||||
| The Sound Money Business: Four Years Past and Future Forecast Posted: 04 Oct 2014 03:13 AM PDT Yesterday, I launched a new website and announced the rebranding of my gold bullion dealer from Euro Pacific Precious Metals to SchiffGold. I started this company four years ago to provide a trustworthy option for my Euro Pacific Capital brokerage clients, but it has since grown to become a major US gold dealer in its own right. This landmark for my company comes in the midst of a historic time for the precious metals. The past four years have had highs and lows. We have been experiencing the inflation of remarkable new asset bubbles, and gold’s response has been mixed. But I have reason to believe that over the next four years, gold and silver investors will witness shocking macroeconomic events that put to rest any doubts about the importance of having sound money in every portfolio. |
Dollar's Ride is About to End
The U.S. jobs numbers hit the gold market and it has now broken $1,200 to the downside. It looks as if gold will retest that $1,180 level, which has been an all-important support point.
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