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- [KR668] Keiser Report: Punk Rock Gobbing from Central Bank
- Chris Powell: Gold to Be Revaluated Upwards Substantially Overnight
- Leading Indicators for Golds Turnaround
- Monex Precious Metals Review :Gold rises to $1249, Silver to $17.79
- China Gold Production Seen Falling, Prompting More Imports
- Doug Noland: The Downside of "Do Whatever it Takes"
- Europe will reconcile with Russia, and soon. It can’t afford not to
- LBMA gets 8 proposals to replace century-old gold fixing
- LBMA names Morgan Stanley as gold/silver market maker
- “Save Our Swiss Gold ” - Game Changer For Gold?
- Jim Rickards Interviewed for Anglo Far-East's Physical Gold Fund
- China gold production seen falling, prompting more imports
- The sky is falling! Should you buy gold and silver?
- Harvey Organ’s Weekend Gold & Silver Update: Cartel Scraping the Bottom of the Barrel
- Real Silver Highs
- Who Wants to be a Trillionaire?
- Chris Powell: Gold to Be Revaluated Upwards Substantially Overnight
- A Day for Composure
- Rick Rule: Are the Worst of Times Yet to Come?
- Leading indicators for gold’s turnaround
- Metals market update for Oct. 17
- Porter Stansberry: You can learn everything you need to know about investing for FREE. Here's how...
- Steve Sjuggerud: It’s official… The U.S. dollar has topped
| [KR668] Keiser Report: Punk Rock Gobbing from Central Bank Posted: 18 Oct 2014 08:03 AM PDT We discuss Johnny Rotten calling Russell Brand a ‘bum hole’ and offer the Keiser Report show as a platform for a debate between the two. Max notes that quantitative easing is the central bank equivalent of punk rock gobbing. We highlight several of the many market distortions similar to the insanity leading up to the 1929 market crash – including $140,000 AUD cats. In the second half, Max continues with his interview of Professor Antal Fekete of FeketeResearch.com about how the 1921 bond market collapse led the US Federal Reserve & Treasury conspiring to illegally introduce open market operation, leading to a situation in which profits in the bond market are risk free while profits in the commodity market are NOT risk free. |
| Chris Powell: Gold to Be Revaluated Upwards Substantially Overnight Posted: 18 Oct 2014 07:28 AM PDT Podcast: Play in new window | Download
Click here for the SD Weekly Metals & Markets With Special Guest Chris Powell: |
| Leading Indicators for Golds Turnaround Posted: 18 Oct 2014 05:30 AM PDT The Daily Gold |
| Monex Precious Metals Review :Gold rises to $1249, Silver to $17.79 Posted: 18 Oct 2014 03:10 AM PDT Monex spot gold prices opened the week at $1,227 . . . traded as high as $1,249 on Wednesday and as low as $1,227 on Monday . . . and the Monex AM settlement price on Friday was $1,239, up $12 for the week. |
| China Gold Production Seen Falling, Prompting More Imports Posted: 18 Oct 2014 02:59 AM PDT "Sooner or later the forces of nature---and the markets---will not be denied" ¤ Yesterday In Gold & SilverThere wasn't a lot of price action in gold yesterday. What action there was occurred between the noon silver fix in London---and the Comex close in New York. The high and low tick are barely worth the effort of looking up---and the CME Group recorded them as $1,242.10 and $1,232.00 in the December contract. Gold finished the Friday session at $1,238.20 spot, down 70 cents from Thursday's close. Net volume was very much on the lighter side at only 109,000 contracts. The price chart in silver looked very similar to the gold chart---and silver traded in a two bit range for the entire day. The high and low in silver were recorded as $17.44 and $17.22 in the December contract. Silver closed in New York yesterday at $17.27 spot, down 9.5 cents from Thursday's close. Net volume was pretty light at only 25,000 contracts. Platinum rallied right from the moment that the markets opened in New York on Thursday evening, but that ended/got capped just after 10 a.m. Hong Kong time. It got sold down a bit going into the Zurich open---and then didn't do much for the remainder of the day. Platinum closed up 12 bucks. Palladium also rallied in the early going---and then developed a negative bias around noon Hong Kong time---and slid a hair until about 10:15 a.m. in Zurich. Then it rallied anew until noon Europe time---and then traded pretty flat for the remainder of the Friday session, closing up 13 dollars. The dollar index closed late Thursday afternoon in New York at 84.96---and then chopped around before sliding to its 84.77 low at precisely 8 a.m. in New York. The subsequent rally topped out at 85.23 around 11:25 a.m. EDT---and it didn't do a lot for the rest of the day. The index finished back above the 85.00 mark at 85.20. The gold stocks spent all of two minutes in the black at the open of trading at 9:30 a.m. EDT yesterday---and it was all down hill from there, as the HUI closed virtually on its low tick of the day, down 3.47%. This sell-off was out of all proportion to the tiny loss in the metal itself. And as bad as the gold shares performed, the silver equities got shelled, as Nick Laird's Intraday Silver Sentiment Index closed down an eye-watering 4.62%. There was no reason for this magnitude of sell-off either. The CME Daily Delivery Report showed that 230 gold and 72 silver contracts were posted for delivery within the Comex-approved depositories on Tuesday. In gold, it was the strangest thing, as Barclays was the only short/issuer with 230 contract out of its in-house [proprietary] trading account. They were also the biggest long/stopper with 228 contracts in their client account. One has to wonder what that was all about. In silver, the two short/issuers were Jefferies and ABN Amro with 52 and 20 contracts apiece. There were four different long/stoppers, but Jefferies stopped 26 of them. The link to yesterday's Issuers and Stoppers Report is here. The CME Preliminary Report for the Friday trading session showed that gold's open interest in October declined by 129 contracts, and is now down to 837 contracts. Silver's October open interest was unchanged at 174 contracts. From these numbers, one must subtract the deliveries mentioned in the previous paragraph. There were no reported changes in GLD yesterday---and as of 7:44 p.m. EDT yesterday evening, there were no reported changes in SLV. But when I was editing at 5:02 a.m. EDT this morning, I see that the folks over at the iShares.com Internet site showed a withdrawal from SLV of 1,150,380 troy ounces. There was another sales report from the U.S. Mint. They sold 6,000 ounces of gold eagles---2,000 one-ounce 24K gold buffaloes---and 50,000 silver eagles. Month-to-date the mint has sold 42,500 troy ounces of gold eagles---17,000 one-ounce 24K gold buffaloes---3,100,000 silver eagles---and 400 platinum eagles. Based on these sales, the silver/gold sales ratio stands at 52 to 1. There was a small amount of gold shipped out of the Comex-approved depositories on Friday, as 2,411 troy ounces were withdrawn from Scotiabank's depository. Of course, things were a lot different in silver. Nothing was reported received, but a huge 1,716,910 troy ounces were shipped out the door---and the link to that action is here. The Commitment of Traders Report, for positions held at the close of Comex trading on Tuesday, October 14, was pretty much what I was expecting to see in both silver and gold. In silver, the Commercial net short position was virtually unchanged, as it only declined by 20 contracts, which isn't even a rounding error. The Commercial net short position still sits at 16,260 contracts, or 81.3 million ounces. But under the hood in the Disaggregated COT Report, things were a little different, but in a good way. The Managed Money in the technical fund category sold another 572 long contracts and went short an additional 1,226 contracts. That, I believe is a new record short position in the Managed Money category, so the rubber band is stretched about as tight as it can get in silver. Ted Butler said it appeared that JPMorgan covered another 500 contracts of their short-side corner in the Comex silver market, which is another new low since they inherited that gargantuan short position from Bear Stearns back in 2008. They now hold 10,000 contracts net short, or 50 million ounces, which is a sizeable chunk of the total Commercial net short position which, from two paragraphs ago, worked out to 81.3 million troy ounces. In gold, the Commercial net short position increased by a rather chunky 15,416 contracts, or 1.54 million ounces of paper gold---and that's all because of the rally in gold during the reporting week. The Commercial net short position in gold is now up to 7.88 million troy ounces. The traders in the Managed Money category accounted for most of the buying as they went net long to the tune of 12,333 contracts. Ted said that JPMorgan sold another 3,000 contracts of their long-side corner in the Comex gold market---and their long position is now down to 18,000 contracts, or 1.8 million ounces. And because of last week's rally in gold, Ted's concern now is that gold has become vulnerable to a sell-off, as the Commercials may attempt to engineer a decent price decline in order to force these newly minted long contract holders into puking up all these long contracts they just bought. As it stands three days after Tuesday's cut-off, the traders in the Managed Money category are pretty much maximum short in all of the 'Big 6' commodities now, except for gold. 'Da boyz' may certainly be tempted to make it six out of six. We'll see. Since this is my Saturday column, I get to unload my in-box---and I have quite a few for you today that I've been saving from earlier in the week. ¤ Critical Reads Mike Maloney: Massive Market Divergence in 3 ChartsIn his latest video update, Mike Maloney shows one of the most concerning data points for today's stock markets: decreasing volume. This is happening even while markets are levitated by Federal Reserve stimulus and negative interest rates. After showing the volume action of the DOW, Maloney adds his thoughts: "This is not a healthy market. This means that less and less of the real investors are in there, and more and more of this is black box trading. The problem with that is that when the markets change every black box is going to be selling at once, so what is being set up here is probably the biggest market crash in history." This 4:19 minute video clip by Mike was posted on the hiddensecretsofmoney.com Internet site on Tuesday---and I've been just too busy to get to it. It's definitely worth watching---and there's a transcript [with charts] as well.  Doug Noland: The Downside of "Do Whatever it Takes"Considering the global backdrop, I actually see a curious lack of extreme views (at least from the bear side). Instead, we’re at the stage of the cycle where even “bearish” pundits go out of their way to distance themselves from “the world is ending” prognosis. I guess I would be considered an extremist, though I don’t see the world ending anytime soon. But this week did offer further evidence that history’s greatest financial Bubble is at significant risk. Friday’s rally did a lot to paper over what was a disturbing week for global markets. The mini-melt-up successfully took a great deal of value out of index and stock put options that expired Friday. Those wanting market protection will now have to pay up for expensive puts that expire in November, December or later. But don’t let the S&P 500’s modest 1.0% decline fool you. It was an extraordinary week. Japan’s Nikkei index was hammered for 5.0%, increasing 2014 losses to 10.8%. Japanese two-year yields traded to a record low 0.005%. After beginning the week at 6.60%, Greek 10-year bond yields traded to 9% on Thursday (before closing the week at 8.07%). Wild instability returned to European debt (and equities) markets. Portugal’s 10-year yields were up 75 basis points by Thursday, before a rally cut the week’s increase to 35 bps. Germany’s DAX equities index dropped 2.87% on Wednesday then rallied 3.12% on Friday. Italian stocks sank 4.44% and then rallied 3.42%. If only Bubbles lasted forever. And, unfortunately, the longer they persist and the bigger they inflate, the more problematic the unavoidable collapse. This important reality is ignored at everyone’s peril. Determination to avoid collapse only ensures greater and more precarious Bubble distortions and maladjustment. “World Braces as Deflation Tremors Hit Eurozone Bond Markets,” read another U.K. Telegraph headline. And Bullard and the global central bank community fret a “collapse in inflation expectations.” It is important to recognize that disinflation and collapsing “inflation expectations” are symptomatic of a bursting global financial Bubble. They provide early evidence of what will be a spectacular failure in experimental “activist” central banking. Doug doesn't miss a thing in this week's edition of his Credit Bubble Bulletin, posted at the prudentbear.com Internet site yesterday evening. It certainly falls into the absolute must read category.  Jim Rickards on Fox Business NewsThe first part of this interview runs for 3:33 minute---and is linked here. The second part of the video interview runs for 1:24 minutes---and it's linked here. You've heard some of this before, but some of it has been modified---and there's new material as well. I thank reader Harold Jacobsen for sending it our way.  Friday Humor: Forget QE4, Presenting QE5Forget helicopters---here's the future of central-planning. Don't leave The Eccles Building without one. I thank Joe Nordgaard for sending this Zero Hedge funny, which he sent our way in the wee hours of this morning.  Sprott Money Weekly Wrap UpListen to Eric Sprott Share his Views on Ebola, the Economic Slump Around the World and the Disingenuousness in the Precious Metals Markets. Jeff Rutherford interviews Eric for 15:17 minutes---and the audio commentary was posted on the sprottmoney.com Internet site yesterday. It's a must listen, especially the first part where discusses the current Ebola situation.  The CIA owns everyone of any significance in the major media."As a former member of the major media prior to its concentration in few hands by the Clinton regime, I have reported on many occasions that the Western media is a Ministry of Propaganda for Washington. In the article below one of the propagandists confesses. -Paul Craig Roberts Published on Russia Insider News “The CIA owns everyone of any significance in the major media.” — former CIA Director William Colby Our Exclusive Interview with German Editor Turned CIA Whistleblower Fascinating details emerge. Leading U.S.-funded think-tanks and German secret service are accessories. Attempted suppression by legal threats. Blackout in German media. Repenting for collaborating with various agencies and organisations to manipulate the news, Ulkotte laments, “I’m ashamed I was part of it. Unfortunately I cannot reverse this.” This absolute must read commentary showed up on the Paul Craig Roberts website on Thursday sometime---and my thanks go out to Roy Stephens for his first contribution of the day. James Perloff: A Century of Mainstream Media LiesNewspapers were the first vehicle that mainstream media (MSM) used to manipulate Americans into war. The Spanish-American War (1898) was fought over Cuba, which had been a colony of Spain since 1511. By the 19th century, Cuba had become the world’s wealthiest colony and largest sugar producer, and its assets were coveted by the Illuminist cabal, which also wanted Spain neutered as a world power. National City Bank, then America’s preeminent bank, controlled the McKinley White House, loaned the government $200 million to fight the war, and took control of Cuba’s sugar industry afterwards (see Ferdinand Lundberg’s classic 1937 book, America’s Sixty Families). To get young men to fight and die in Cuba for the banksters, it was necessary to persuade Americans – for the first time – that the U.S. military’s duty was not only self-defense, but “righting wrongs” overseas. It was before and during this war that the media honed a skill that would prove perennially useful: manufacturing fake atrocity stories. The “Yellow Press,” as it was then appropriately called, was spearheaded by William Randolph Hearst’s New York Journal and Joseph Pulitzer’s New York World. Together they fabricated outlandish atrocity tales about Cuba, such as Spaniards roasting Catholic priests. On October 6, 1896, Hearst’s Journal carried this headline: “CUBANS FED TO SHARKS. Cries Heard at Night – They are Taken Outside the Harbor, and the Silent Ferryman Comes Back Alone.” Pulitzer’s World raved: “RAIDED A HOSPITAL– More than Forty Sick and Wounded Cubans Butchered.” But no hospital even existed in the region the World described. Hearst’s reporters rarely ventured outside Havana’s bars. Some never even traveled beyond Florida, where they forwarded tales spun by Cuban émigrés. And some stories Hearst invented himself in New York. I've read James Perloff's classic tome "The Shadows of Power: The Council on Foreign Relations and the American Decline." It's right up there with G. Edward Griffin's "The Creature From Jekyll Island: A Second Look at the Federal Reserve"---and if you haven't read these two books, it's not too late to correct that oversight. And, like the Paul Craig Roberts piece posted above, this falls into the absolute must read category as well. I thank South African reader B.V. for sending it our way last Sunday, but for content reasons, it had to wait for today.  Kudos to Herr Weidmann For Uttering Three Truths in One SpeechOnce in a blue moon officials commit truth in public, but the intrepid leader of Germany’s central bank has delivered a speech which let’s loose of three of them in a single go. Speaking at a conference in Riga, Latvia, Jens Weidmann put the kibosh on QE, low-flation and central bank interference in pricing of risky assets. These days the Keynesian chorus in favor of policy activism is so boisterous that a succinct statement to the contrary rarely gets through—-especially at Rupert Murdoch’s Wall Street yarn factory. But here’s what penetrated even Brian Blackstone’s filters: “The biggest bottleneck for growth in the euro area is not monetary policy, nor is it the lack of fiscal stimulus: it is the structural barriers that impede competition, innovation and productivity,” he said. This commentary appeared on David Stockman's website on Wednesday---and I thank Mark Hancock for sharing it with us. |
| Doug Noland: The Downside of "Do Whatever it Takes" Posted: 18 Oct 2014 02:59 AM PDT Doug Noland: The Downside of "Do Whatever it Takes" Considering the global backdrop, I actually see a curious lack of extreme views (at least from the bear side). Instead, we’re at the stage of the cycle where even “bearish” pundits go out of their way to distance themselves from “the world is ending” prognosis. I guess I would be considered an extremist, though I don’t see the world ending anytime soon. But this week did offer further evidence that history’s greatest financial Bubble is at significant risk. Friday’s rally did a lot to paper over what was a disturbing week for global markets. The mini-melt-up successfully took a great deal of value out of index and stock put options that expired Friday. Those wanting market protection will now have to pay up for expensive puts that expire in November, December or later. But don’t let the S&P 500’s modest 1.0% decline fool you. It was an extraordinary week. Japan’s Nikkei index was hammered for 5.0%, increasing 2014 losses to 10.8%. Japanese two-year yields traded to a record low 0.005%. After beginning the week at 6.60%, Greek 10-year bond yields traded to 9% on Thursday (before closing the week at 8.07%). Wild instability returned to European debt (and equities) markets. Portugal’s 10-year yields were up 75 basis points by Thursday, before a rally cut the week’s increase to 35 bps. Germany’s DAX equities index dropped 2.87% on Wednesday then rallied 3.12% on Friday. Italian stocks sank 4.44% and then rallied 3.42%. If only Bubbles lasted forever. And, unfortunately, the longer they persist and the bigger they inflate, the more problematic the unavoidable collapse. This important reality is ignored at everyone’s peril. Determination to avoid collapse only ensures greater and more precarious Bubble distortions and maladjustment. “World Braces as Deflation Tremors Hit Eurozone Bond Markets,” read another U.K. Telegraph headline. And Bullard and the global central bank community fret a “collapse in inflation expectations.” It is important to recognize that disinflation and collapsing “inflation expectations” are symptomatic of a bursting global financial Bubble. They provide early evidence of what will be a spectacular failure in experimental “activist” central banking. Doug doesn't miss a thing in this week's edition of his Credit Bubble Bulletin, posted at the prudentbear.com Internet site yesterday evening. It certainly falls into the absolute must read category. |
| Europe will reconcile with Russia, and soon. It can’t afford not to Posted: 18 Oct 2014 02:59 AM PDT Europe will reconcile with Russia, and soon. It can't afford not to After months of escalating tensions over Ukraine and talk of a new cold war, Russia and the West could soon reach a surprising rapprochement. The eurozone economy is suffering badly and sanctions against Russia are partly to blame. Winter is also upon us, and that reminds every-one Vladimir Putin still holds the cards when it comes to supplying gas. The clincher, though, is that Ukraine is heading towards financial meltdown. Unless an extremely large bailout is delivered soon, there will be a default, sending shock waves through the global economy. That’s a risk nobody wants to take — least of all Washington, London or Berlin. Sanctions against Russia were always going to hit western Europe hard. The eurozone did 12 times as much trade with Russia as the United States did last year — that’s one reason Washington’s attitude towards corralling Russia’s economy has been somewhat more gung-ho. This article appeared on the spectator.co.uk Internet site on Friday---and it's another contribution from reader B.V. |
| LBMA gets 8 proposals to replace century-old gold fixing Posted: 18 Oct 2014 02:59 AM PDT  LBMA gets 8 proposals to replace century-old gold fixing Intercontinental Exchange Inc., the London Metal Exchange, and CME Group Inc. and Thomson Reuters Corp. are among firms shortlisted to develop and run a replacement for the century-old London gold fixing benchmark. Autilla Ltd. (Sapient) and EBS are also on the short list, the London Bullion Market Association said in a statement today. Ten companies submitted eight proposals, some of them joint. The LBMA, which said last week firms will present at a seminar on Oct. 24, expects a market consensus to emerge next month and the chosen method adopted by year-end or early 2015. The 'fix' will still be in no matter who runs it---and it certainly won't be any more transparent than it already is. This Bloomberg story, filed from London, appeared on their website at 10:13 a.m. Denver time yesterday morning---and I found it embedded in a GATA release. |
| LBMA names Morgan Stanley as gold/silver market maker Posted: 18 Oct 2014 02:59 AM PDT  LBMA names Morgan Stanley as gold/silver market maker The London Bullion Market Association (LBMA) said on Thursday it appointed Morgan Stanley as a market maker, underscoring the ambitions of some banks to expand into precious metals trading while others exit due to stringent regulations. LBMA said it named Morgan Stanley & Co International Plc, a unit of U.S. investment bank Morgan Stanley, as a spot and options market-making member effective Thursday. Currently, LBMA has 13 market makers which serve in either one, two or all three of the spot, options and forwards markets. They make markets by quoting two-way prices in both gold and silver products to other market makers. Just three weeks ago, LBMA named Citigroup as a spot market-making member. It's a very safe bet that Morgan Stanley and Citigroup are two of the big gold and silver shorts on the Comex---and handily fall into the 'Big 4' or 'Big 8' Commercial trader category. They've always been there, but not as market makers. I found this Reuters story, which was filed from New York yesterday, on the mineweb.com Internet site in the wee hours of this morning. |
| “Save Our Swiss Gold ” - Game Changer For Gold? Posted: 18 Oct 2014 02:59 AM PDT  "Save Our Swiss Gold " - Game Changer For Gold? We believe that the “Save Our Swiss Gold” campaign has the potential to be a game changer in the gold market - both in terms of the ramifications for the current global monetary system and in terms of higher gold prices. There has been a lack of coverage of this important story and there is therefore a lack of awareness about the possible implications for the gold market. Thus, in the weeks prior to the referendum on November 30th, we are going to analyse the referendum, the important context to the referendum and the ramifications of a yes or a no vote. - Mark O’Byrne, Head of Research, GoldCore Here's another longish commentary on what the ramifications of a 'yes' vote in Switzerland will have on the gold market. It's certainly worth reading if you have the time---and it was posted on the goldcore.com Internet site yesterday. I thank reader M.A. for sending it along. |
| Jim Rickards Interviewed for Anglo Far-East's Physical Gold Fund Posted: 18 Oct 2014 02:59 AM PDT Jim Rickards Interviewed for Anglo Far-East's Physical Gold Fund This 40:15 minute interview conducted by John Ward appeared on the physicalgoldfund.com Internet site---and I thank Harold Jacobsen for sharing it with us. But if you go through the list of topics being discussed, you'll see a lot of familiar themes, which I'm sure he's updated based on current events. I haven't listened to it yet, but it will be on my "to do" list for today or tomorrow. |
| China gold production seen falling, prompting more imports Posted: 18 Oct 2014 02:59 AM PDT  China gold production seen falling, prompting more imports Growth in gold mine output from number one producer China is set to slow significantly in coming years in the face of declining ore grades and waning profitability, analysts Business Monitor International said on Friday. Lower mine production will pave the way for rising imports to meet persistent strength in demand from Chinese consumers, BMI analyst Xinying Chia said, while domestic mining companies will also look overseas to boost production. In an interview with the Reuters Global Gold Forum, Hong Kong-based Chia said Chinese mine output growth was expected to slide to 0.9 percent in 2018, from around 6 percent this year. "Many domestic miners are grappling with the problems of depleting reserves, falling ore grades and rising cash costs," Chia said. This Reuters article, filed from London, appeared on their Internet site at 8:28 a.m. EDT on Friday---and it's another article I found posted on the gata.org Internet site. |
| The sky is falling! Should you buy gold and silver? Posted: 18 Oct 2014 02:59 AM PDT The sky is falling! Should you buy gold and silver? Fear is stalking the global stock markets. Stock indices have been falling back sharply seeing a move to what might be seemed safer assets like bonds and gold. The falls have been precipitated by some poor economic data suggesting that most major economies are not out of the recessionary mire yet and, in the U.S. in particular, the realisation that the Fed is getting down to near eliminating its latest Quantitative Easing programme in total, although there may be some succour in that it tends to be putting back the day that it may allow interest rates to rise. And what happens in the U.S. markets tends to have a strong follow-through impact on markets in other parts of the world. A number of pundits have been predicting a stock market crash for some time now. The investing public though, just as it has in the past ahead of previous stock price crashes, has ignored this, seeing the market as an ever-increasing money-making mechanism. Thus the world’s major stock indices have been on a tear moving higher and higher without there being anything serious in the way of increasing corporate profits to support this. Suddenly it could all come crashing down – that’s what has happened in the past. While the Dow, S&P, TSX, FTSE, DAX etc. are not yet in free fall they are beginning to look like they could be heading that way. So, should one buy gold as the safe haven it has proven to be in the past. Inflation – which is generally assumed to be gold-positive – just has not happened despite the vast amounts of liquidity the U.S. Fed and other central banks have pumped into the markets. Indeed much of the talk now is about the increasing possibility of deflation. What most don’t realise is that gold performs just as well, if not better, in a deflationary environment vis-a-vis the stock markets than it does in an inflationary scenario. This commentary by Lawrence Williams showed up on the mineweb.com Internet site on Friday---and my thanks go out to Manitoba reader U.M. for her final offering in today's column. |
| Harvey Organ’s Weekend Gold & Silver Update: Cartel Scraping the Bottom of the Barrel Posted: 17 Oct 2014 09:50 PM PDT Today’s big news came from China where weekly demand (gold withdrawals) came in at 68.4 tonnes. On a 7 day week this works out to 9.77 tonnes per day The world ex China and ex Russia (the keep all gold produced) produces 6.02 tonnes per day (2200 tonnes per year). Hot on the heels of […] The post Harvey Organ’s Weekend Gold & Silver Update: Cartel Scraping the Bottom of the Barrel appeared first on Silver Doctors. |
| Posted: 17 Oct 2014 07:00 PM PDT Zealllc |
| Who Wants to be a Trillionaire? Posted: 17 Oct 2014 06:48 PM PDT Who wants to be a Trillionaire? By The WealthCycles Staff
In Zimbabwe in 2009, you could have a 100 trillion dollar bill in your pocket and still not be able to afford lunch. In fact, if you had such a bill, there was a good chance you had lost both your wealth and your savings in one of the biggest hyperinflations in human history.
It took bricks of currency to pay for lunch. The fact that this all took place so recently should be a lesson that the continuous printing of money remains a bad idea. In this short account, we'll explore what caused such a catastrophic event, how it destroyed the lives of millions of people, and what it means for us today beyond just being able to buy some real "monopoly" money for a few bucks on eBay. First, some background. |
| Chris Powell: Gold to Be Revaluated Upwards Substantially Overnight Posted: 17 Oct 2014 03:00 PM PDT GATA’s Chris Powell joins us this week for a power packed show discussing: Powell’s view on the endgame- Central banks will revaluate gold upwards substantially overnight, after which the gold suppression will start again from a much higher level Massive Chinese gold accumulation: China doesn’t want a free market, they want control of the gold market! If […] The post Chris Powell: Gold to Be Revaluated Upwards Substantially Overnight appeared first on Silver Doctors. This posting includes an audio/video/photo media file: Download Now |
| Posted: 17 Oct 2014 01:33 PM PDT With the kind of week we have just been through, it is certainly a relief to see a bit of "calm" coming back into the markets to close out this wild week. Drawing too many conclusions from the price action is probably not too wise given the fact that there were huge money flows flipping into and out of various sectors as traders were trying to avoid not only getting steamrolled, but in many cases, apparently from what I have seen in the price action of some areas, desperately trying to minimize what no doubt were some enormous losses. At least the Complacency Index, as I prefer to call the VIX, nudged down somewhat from what was a 22 month high!  The Gold Volatility Index also moved lower today. It hit its highest level this year but compared to the VIX, still looks rather tame by comparison.  The Dollar, in spite of all the wild swings, violent price action and outright chaos that seemed to mark the currency markets this week essentially ended the week going no where! It remains in a consolidation mode working between 87 on the topside and 85 on the bottom. The market has certainly relieved its overbought status on the technical indicators so this range trade is actually a pretty good thing as far as I am concerned.  I am noting that the grains all moved lower today. There was some chatter making the rounds earlier this week that one of the reasons for the sharp moves higher in the beans and to some extent the wheat and corn, was the result of hedge funds moving money out of stocks and into agricultural commodities. I am not sure I buy that explanation as I see no reason from a macro level for big funds to be committing to the grains especially when the Dollar has been firm. There was the usual chatter about harvest delays, dryness in some key Brazilian growing areas during the current planting season down there, as well as some decent export business but as the FOMC notes revealed this week, a harvest is on the way that is going to tax the ability of the US to move it and store it. As of now I see nothing that would convince me that a harvest low is in especially with a lot more of this year's crop yet to go under the combines. I am looking for some hedge pressure to begin surfacing next week as the weather across the Midwest looks very conducive to some substantial harvest progress being made. The tightness in last year's bean carryover has contributed to some strength in the meal as processors scramble for supplies but with some big harvest progress coming our way, that supply tightness that currently exists is not going to last too much longer. Feeder cattle hit limit down today. Let's see they were LIMIT DOWN on both Tuesday and Wednesday this week - then they hit limit down Thursday morning only to reverse and CLOSE LIMIT UP ( that is an intraday price swing of some $3,000 per single contract). Today they went back down the LIMIT once more. And people wonder why my hair is all turning gray!! like I have said many times, - those gold perma bulls who are always screaming about gold manipulation when it experiences a huge move lower have NEVER TRADED anything else remotely resembling a commodity. Just look at these goofy cattle this week not to mention the hogs, which were obliterated. I will get some more up later on today on the Commitments of Trader reports and see if there is anything noteworthy in there. Sadly that report is essentially dated by the time we get it since it does not cover Wednesday through Friday of the current week. With a week like the one that we have just witnessed, there is no telling what has happened to the various positions of a huge number of traders out there. Copper managed to claw its way back over the $3.00 level. There is one helluva battle shaping up near that zone. It dipped down to $2.95 today but some good buying was seen. As the equities began coming back, so did copper. Silver was not helped by copper's mild strength today as it succumbed to the selling seen in nearby gold. Silver is currently stuck under a resistance level coming in near $17.50. One last thing - the S&P 500 just barely touched ( depending on which chart one uses ) hitting the 10% CORRECTION LEVEL before bouncing right off of it and moving higher once more. The index ended down only around 13 points on the week after all its wild gyrations. That is a pretty impressive feat the bulls pulled off! It does however need to climb back ABOVE the 1900 level, which was the support zone that was holding it aloft. If the bulls can manage to close out next week's trading above that level, they will have managed some kind of feat! If they do not, 1800 is going to be tested once more.  |
| Rick Rule: Are the Worst of Times Yet to Come? Posted: 17 Oct 2014 01:00 PM PDT Now is the time to re-examine our premises on gold. Are the worst of times yet to come? Submitted by Hennry Bonner, Sprott’s Thoughts: I plan on using this recording a few years from now as marketing material," said Rick, speaking to current clients and friends of Sprott Global Resource Investments Ltd., the firm he founded in 1994. […] The post Rick Rule: Are the Worst of Times Yet to Come? appeared first on Silver Doctors. |
| Leading indicators for gold’s turnaround Posted: 17 Oct 2014 12:43 PM PDT It's safe for the time being but we believe gold will ultimately break back below $1,200 and below $1,100 before the end of the already long in the tooth bear market. |
| Metals market update for Oct. 17 Posted: 17 Oct 2014 12:33 PM PDT Gold climbed $1.70 or 0.14% to $1,239.50 per ounce and silver slipped $0.05 or 0.29% to $17.38 per ounce Oct. 16. |
| Porter Stansberry: You can learn everything you need to know about investing for FREE. Here's how... Posted: 17 Oct 2014 09:00 AM PDT From Porter Stansberry in The S&A Digest: In today’s Friday Digest, I want to talk about the drawbridge that’s destroying America. Yes, that’s right. The drawbridge. Just give me a minute to show you what I’m talking about… First, a few facts. The real (adjusted for inflation) median household income in the U.S. has declined over the last decade or so, from $57,000 to just under $52,000. That represents about a 9% decline in the standard of living for the average American household. Nearly the entire decline in real incomes has occurred since 2008, which returns the average American household back to its standard of living in the mid-1990s – before the entire Internet revolution. For most people in America, income is in a serious decline. That has never happened before over a decade-long period in the United States. What’s worse is that prior to this decline, real incomes had been stagnant for a long time. Median household income hasn’t materially increased since 1973, when real average household income was $48,557. And even this is misleading… In the early 1970s, there weren’t as many families with two wage-earners as there are now. For the last 40 years or so, families have made up for America’s stagnant standard of living by sending the wife to work outside the home and then, later, by running up huge debts and speculating in real estate. These aren’t solutions to the problem. And now, the problem is getting much, much worse. The underlying economic cause of this problem is easy to see and easy to understand. Wages are no longer connected to gains in productivity. As you can see from the following chart, since 1948, productivity has grown 254%, but hourly wages have only grown 113%. The disconnect begins in 1971… the same year President Nixon untethered the U.S. dollar from gold.
Lest you think this economic history is in some way unduly influenced by my libertarian political orientation, this chart appeared in Paul Krugman’s New York Times column on July 18, 2012. Krugman, as you may know, is among the most liberal economists published anywhere in the world today. Now… about that drawbridge. The chart above – which shows the sudden and lasting disconnect between increases to productivity and wages – is the explanation for Americans’ stagnant incomes over the last 40 years. Something has substantially changed in the way our economy works. Working harder or – working smarter – isn’t benefiting employees anymore. And now, these stagnant incomes have begun to decline significantly. On the other hand, Americans who own assets and businesses – whether they’re small entrepreneurs like landlords, technology titans who created Internet businesses, or private-equity investors (like Warren Buffett) – have seen their wealth soar over the last 40 years. This is the drawbridge I’m talking about – the bridge in America that exists between the very wealthy and the very poor. That bridge began to open 40 years ago… the chasm underneath it has grown deeper and deeper every year… and right now, as I’m writing these words to you… the gates are coming down and the bridge is beginning to move faster. You have to decide what side of the bridge you’re going to be on. You have to move quickly… because getting across that bridge will soon be impossible. Historically, the key to advancement in America was education. But the cost of a high-quality college education in America has risen 12 times over the past 30 years. Today, Harvard costs $50,000 a year in tuition. Very few people from the wrong side of the drawbridge can afford these costs. Likewise, the real costs of everything associated with the “normal” middle class in America are fast becoming out of reach. The costs of quality housing, health care, and education are now far beyond the reach of most Americans. The drawbridge is opening… wider and wider. There are two core reasons this has happened in our country. Both are easy to understand. One was a critical mistake of the rich and the powerful. The other has been a critical mistake of those claiming to represent the poor. First and foremost, the central reason that wages have become disconnected from productivity gains is because our currency – which was tied to gold, a resource of limited elasticity – was unlinked to any natural commodity. The result has been unlimited credit for our banking system and our government. The bailouts of 2008 and 2009 were financed (like earlier bailouts in 1974, 1981, 1990, and 1998) by a massive expansion of the money supply. The way to understand this is simple. Today in America, the risks of capitalism and bankruptcy have been socialized. Even though he owned several of the country’s biggest banks, Warren Buffett didn’t go broke in 2008. He didn’t go broke because the Fed printed $4 trillion and bailed out the banking system. Meanwhile, the rewards of capitalism are still reserved for those who own and control the assets of our economy. Who pays? Wage earners and savers, who depend on the value of the dollar. Who profits? Leveraged capitalists and the owners of great assets. If the dollar was still tied to gold, the government and the Federal Reserve would not have the power to create unlimited amounts of new reserves. To garner capital to bail out a failing bank, the government would have to actually attract additional capital by offering a high interest rate. Historically, that’s exactly what happened during market corrections. These high rates would reward savers and wage earners, while punishing capitalists and leveraged owners of assets. The balance was maintained between those who earned and saved and those who borrowed and speculated. Today, there is no balance whatsoever. Earning and saving now means being on the wrong side of the drawbridge. Author Ayn Rand famously said of the poor, “They have always been with us, don’t be one of them.” By that, she meant that there is no real solution to poverty, because most people end up poor because of their poor choices. That may no longer be true in America today, which is a sobering thought. America has become a country of soaring income inequality. For decades, America was not only the richest nation, but also the most middle-class – sitting right in the middle of the world’s nations in terms of income inequality. That’s no longer true. Over the last 40 years, income inequality has soared. We now trail Brazil (land of a million slums) and Mexico (land of narcotics) as the G20 nations with the widest amount of income inequality. The drawbridge is going higher and higher… That has led to an entire industry that exists to exploit the poor. Consider the recent union-backed move to raise the minimum wage. I could explain, using a million examples, why minimum-wage laws are terrible for poor people. That isn’t in doubt. When wages rise above the marginal value of labor, there is no longer a reason for employment. Thus, minimum-wage laws destroy jobs. Why, then, are the politicians so determined to raise minimum-wage laws? Consider the new law in Los Angeles, where city council passed a $15.37 minimum-wage law for large hotels. (There goes room service…) However, the law contains a provision that allows unions to waive the requirement in collective bargaining. The law is actually a cudgel designed to benefit unions. If you’re a hotel, you have a choice: pay an uneconomic wage… raise your prices to compensate and watch as all of your business goes elsewhere… or partner with the union to force your employees into a collective bargaining agreement that will see them earn less and force them to pay union dues. Guess where those union dues go? Directly to Democrat politicians. This is just one example out of thousands that show how promises to help America’s middle class and poor end up simply empowering the political class. Folks who think Obama was going to give them free health care should see what actually happens when they try to call a doctor. Meanwhile, have you seen the huge rise in managed care stocks? Have you seen the drug company stocks? One more example… Obama says he will help you pay for college. A law passed last year that allows students to avoid paying back their student loans or strictly limiting the payments to only 10% of their discretionary income. There are now 1.9 million Americans enrolled in the program, sheltering $101 billion in loans. Surely this is the way over the drawbridge, right? It’s a way for student loans – even people with hundreds of thousands of dollars in debt – to be financed by “poor” students. Maybe. But the loans are only forgiven if the students work for 10 years in government or for a nonprofit – like a “community organizer,” perhaps. Imagine your career potential if you spent the years between 25 and 35 working in government or politics. Who does this really empower, the students or the politicians? There’s a drawbridge opening in America. It’s a bridge that’s being forced open by economic policies that favor the rich and the powerful rather than the wage earners and savers. And on the side of the poor, there are a bunch of people who claim to help… but who really just exploit. What should you do? Follow Ayn Rand’s advice and don’t be one of them. Don’t get into debt. Don’t believe that spending $100,000 on college will save you. Don’t believe that working for the government is the answer. Realize that in America today, you’re not going to become wealthy being a wage earner. You must – must – find a way to acquire assets. That’s the only way across the bridge. You can do so by starting a business of your own. You can do so by getting into a job (like sales) where your earnings can vastly exceed the average earner. And you can do so by learning to invest wisely. Saving by itself is no longer enough. That’s where we can help… We’ve now posted more than 100 different – and completely free – articles about investing on our website. Spend some time at our investor education center. The secret to wealth in America is sitting right there… Start with our “11 Steps” manifesto… These are the ideas we wish we had learned before we invested a single dollar. Step 3, for example, teaches you the No. 1 factor in your investment success. If you don’t understand this idea, you’re almost sure to destroy your chances of financing your retirement with your savings. Step 5 shows you what you’re actually buying when you purchase shares of a stock. This will forever change the way you view your investments. Step 8 is often the hardest for new investors to practice. But it’s one of the most powerful tools at your disposal. Read through the “11 Steps” right here. Once you’ve gone through all 11 steps, spend time this weekend reading through the “Secrets of Financial Insiders” section of the education center. There are 15 essays… They’ll take about five minutes each to read. In less than two hours, you’ll understand more about how the market works than any of your friends, family, or neighbors. In particular, don’t miss editor in chief Brian Hunt’s essay on why your broker knowingly gets you into losing trades… Extreme Value editor Dan Ferris’ essay on why you, as an individual shareholder, just aren’t that important… and my essay detailing the only chance you have at becoming a successful investor. Once you have that as your foundation, you can explore the rest of what the education center has to offer, including… A Private Letter from Warren Buffett There’s No Secret to Investment Success… Except This One The 5 Magic Words Every Trader Says Over and Over, All the Time Never Retire One last thing… If you would like to glean insight from some of the brightest political and financial minds in the world, I strongly encourage you to join us online tomorrow, October 18. You’ll hear from former Congressman and leading libertarian Dr. Ron Paul. Currency expert Jim Rickards will also tell you what the government is doing to destroy the U.S. dollar – and accelerate this widening income disparity. You’ll also hear from Agora founder Bill Bonner, me, and a host of other bright minds. Crux note: To reserve your space, click here now. PLEASE NOTE: This is your last chance to register. This must-see event takes place tomorrow, October 18. |
| Steve Sjuggerud: It’s official… The U.S. dollar has topped Posted: 17 Oct 2014 05:00 AM PDT From Dr. Steve Sjuggerud, editor, True Wealth: Earlier this week, risky assets tanked… and “safe haven” assets soared… But one traditional safe-haven asset didn’t follow the script – the U.S. dollar. As investors fled Italian bonds, Greek bonds, and Japanese stocks, they poured money into U.S. government bonds as a safe-haven play. A huge amount of dollars was needed yesterday to buy all those bonds. In a single day, the interest rate on 10-year government bonds fell from about 2.2% down below 2.0% (before settling at 2.1%). That might not sound like much, but it is a massive move. So you would think the U.S. dollar would have gone up. It didn’t. What that tells me is that everyone who wants to own a U.S. dollar already owns it… This fits with the numbers from my friend Jason Goepfert of www.SentimenTrader.com. Jason’s sentiment data shows that the U.S. dollar is more loved than it ever has been. It can’t go higher, because there’s nobody out there left to fall in love with it. So it can only go down. After doing nothing for a while, the U.S. dollar started taking off in July. And it’s been a one-way ride to the start of October… Take a look:
That smooth one-way ride created the dollar love-fest. It lulled traders to sleep. It was practically Groundhog Day, as currency traders woke up each morning to the same thing – a higher dollar. Those days are now over. The U.S. dollar just peaked. Trade accordingly… Good investing, Steve Crux note: The market’s recent dips have investors scared… and they’ve pushed many different asset prices to extremes. But Steve says this is exactly what he wants to see… In his latest True Wealth newsletter – out today – he uncovers all kinds of bargains in stocks… real estate… and commodities… including a new and better way to own gold stocks. To be one of the first to get Steve’s new recommendations, click here now. |
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