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Why Gold Is Undervalued – And poised to re-price upwards from here
Gold Rebounds but Gold Miners Struggle
More Foreign Policy Incompetence – U.S. Humanitarian Aid is Going Directly to ISIS
Why Did the IRS Just Threaten Me With Imprisonment?
Events Impacting The Gold And Silver Price In The Week Of October 27th
Gold Investors Weekly Review – October 24th
Jim Rickards: A Dystopian View of the Year 2024
Metals & Markets- Silver Miner Fights Back, Takes on the Bankster Cartel!
Jim Willie: Shanghai Shock to Shatter the Gold Market!
“War on Terror” Targets Unlicensed Underwear – Department of Homeland Security Raids Maker of World Series Panties
The GIAMATT Crowd and Perpetual Motion
This is the simple, easy way to protect your family from financial disaster

Why Gold Is Undervalued – And poised to re-price upwards from here

Posted: 26 Oct 2014 12:03 PM PDT

Gold has been in a bear market for three years. Technical analysts are asking themselves whether they should call an end to this slump on the basis of the “triple-bottom” recently made at $1180/oz, or if they should be wary of a coming downside break beneath that level. The purpose of this article is to look at the drivers of the gold price and explain why today’s market value is badly reflective of gold’s true worth.

Read the full article here

Gold Rebounds but Gold Miners Struggle

Posted: 26 Oct 2014 11:18 AM PDT

The Daily Gold

More Foreign Policy Incompetence – U.S. Humanitarian Aid is Going Directly to ISIS

Posted: 26 Oct 2014 11:00 AM PDT

It's hard to know whether the U.S. government is intentionally helping ISIS, or if it is just that incompetent. Either conclusion is terrifying. But don't worry, ebola is under control, the economy is just fine and the NSA isn't spying on you. Move along slaves. Submitted by Michael Krieger, Liberty Blitzkrieg: "The convoys have to […]

The post More Foreign Policy Incompetence – U.S. Humanitarian Aid is Going Directly to ISIS appeared first on Silver Doctors.

Why Did the IRS Just Threaten Me With Imprisonment?

Posted: 26 Oct 2014 08:30 AM PDT

Why exactly did the IRS just threaten me with imprisonment??? We have reached peak government. Like any bubble, this one is about to burst. Submitted by Simon Black, Sovereign Man: I walked in the door this morning to my apartment in Santiago, happy to be back in Chile after a week away. (One of the things […]

The post Why Did the IRS Just Threaten Me With Imprisonment? appeared first on Silver Doctors.

Events Impacting The Gold And Silver Price In The Week Of October 27th

Posted: 26 Oct 2014 01:10 AM PDT

In this article, we summarize the key events of the running week that could have an impact on the price of gold and silver price because of trading in COMEX futures.

Over the last week, between October 20th and 25th, both gold and silver remained somehow stable. There was no specific event driven price change.

Gold and silver are still moving at a key juncture. Silver has broken long time support and seems to be moving to the resistance line (see more in Michael Noonan’s latest chart analysis). Gold, on the other hand, is still above critical support but is not yet moving any sign of significant demand. Gold bulls should be able not to let prices go lower from here, at least not on a sustained basis, to avoid a break through critical support. One negative for the precious metals complex is that gold stocks have been sold off heavily during the week. As miners are mostly leading the metals, this is not a sign of health in the sector. On the other hand, gold is increasingly behaving as a safe haven in a world which is becoming more and more uncertain.

For the week commencing October 27th, there are some key economic data coming mainly from the U.S. and European Union. There are no formal Central Bank statements expected. Mainly the data on Thursday and Friday have the potential to cause some moves in the markets and metals, although our expectation is that such moves will not be aggressive.

Below is a more detailed calendar of key economic data in key markets. They are not necessarily driving gold and silver prices, but could cause price volatility:

gold price drivers week 27 october 2014 price

Note: The primary focus of our website is to report on the different aspects of the gold market: fundamentals, economic and monetary analysis, basic technical analysis. Our view on the real price setting in the gold and silver market differs from the mainstream view. Price changes happen to coincide with events or announcements; mainstream media are used to report a relationship between both. However, we believe that the real price setting for the time being is taking place in the COMEX futures market. Market expert Ted Butler does an outstanding job analyzing the weekly evolution in the COMEX market and how it affects price setting.

Gold Investors Weekly Review – October 24th

Posted: 26 Oct 2014 12:48 AM 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 $1,230.39 down $7.93 per ounce (-0.64%). Gold stocks, as measured by the NYSE Arca Gold Miners Index, fell 1.31%. The U.S. Trade-Weighted Dollar Index rebounded 0.71% for the week.

Gold Market Strengths

The primary driver for the recent positive sentiment on gold is higher expected demand, particularly from China and India. Gold imports into India last month rose by roughly four times to 95 metric tons compared to 15 to 20 tons in September of last year. Festival season in India, as well as the deregulation of the Chinese gold market, has given a substantial boost to global gold demand.

Gold analysts and traders are bullish on gold for the fourth-straight week, the longest streak since February. Bloomberg survey results for next week showed 11 out of 21 traders holding a bullish outlook for gold.

Fear and uncertainty in the global economy is stimulating gold demand as well. This month the International Monetary Fund (IMF) downgraded its outlook for global growth, increasing the attractiveness of gold as a safe haven. Furthermore, the more dovish mentality from the Federal Reserve has been a big tailwind for gold, which has been depressed by expectations of rate increases.

Gold Market Weaknesses

SPDR Gold Trust holdings were reduced to their lowest level in a year on Monday. This decline in gold assets is concerning given that gold prices have recently rebounded.

JP Morgan reduced its gold price forecast for 2015 and 2016 this week. The bank sees gold prices declining to $1,220 per ounce and $1,200 per ounce in 2015 and 2016, respectively.

Gold Market Opportunities

The first opinion poll pertaining to the Swiss gold referendum revealed stronger support for the policy than against. The referendum would require the Swiss National Bank to hold at least 20 percent of its reserves in gold. As it currently stands, the Swiss National bank has only 7 percent of its reserves in gold. The cost to reach the 20 percent mark would amount to roughly $70 billion of additional gold purchases.

Gold Market Threats

Paul Tudor Jones, a world renowned macro trader, said that commodities as a whole will be ugly until at least 2020. Jones argues that having reached the peak a few years ago, commodities still have a long way to go before the bottom is reached.

Severe droughts in the western United States may weigh heavily on mining companies operating in the region. In 2013, mining companies around the world spent $12 billion on water infrastructure, a 275 percent increase from 2009. The extra costs incurred by maintaining water quality and quantity are problematic for the industry.

Jim Rickards: A Dystopian View of the Year 2024

Posted: 25 Oct 2014 09:00 PM PDT

Jim Rickards has written an article titled “In the Year 2024“. Jim introduces the article by calling it a “fictional dysptopia in the spirit of Brave New World or 1984″. I suspect some readers will react quite strongly to this article since it describes a somewhat bleak future where government has trampled on individual freedom. […]

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Metals & Markets- Silver Miner Fights Back, Takes on the Bankster Cartel!

Posted: 25 Oct 2014 08:30 PM PDT

In this week’s Metals & Markets, The Doc & Eric Dubin break down the week’s action discussing: First Majestic Silver takes on the cartel- holds back 35% of Q3 silver production- CEO Keith Neumeyer issues call for silver miners to form their own cartel to put an end once and for all to paper manipulation Russian/ […]

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This posting includes an audio/video/photo media file: Download Now

Jim Willie: Shanghai Shock to Shatter the Gold Market!

Posted: 25 Oct 2014 07:39 PM PDT

The pattern of central bank covering the debt is clear. The lesson is that central banks can apply paper patches to the failed banks, and buy more time, then repeat the process on the next failed bank event. No limit to their bank patches seems to be in force. The banker cabal can continue […]

The post Jim Willie: Shanghai Shock to Shatter the Gold Market! appeared first on Silver Doctors.

“War on Terror” Targets Unlicensed Underwear – Department of Homeland Security Raids Maker of World Series Panties

Posted: 25 Oct 2014 02:00 PM PDT

The Department of Homeland Security, a worthless bloated bureaucracy with a $39 billion budget, has been spending its time and money raiding a creator of unlicensed World Series panties. I wish this was a joke. Oh and it's not just this one-off panty raid either. This is actually the sort of stuff the U.S. gestapo DHS is prioritizing: […]

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The GIAMATT Crowd and Perpetual Motion

Posted: 25 Oct 2014 12:25 PM PDT

For hundreds of years, dreamers, theorists and inventors, along with a huge assortment of quacks, hucksters and con men, have sought to either create or to peddle to the unsuspecting, a machine that when once set in motion, would continue moving without the application of any outside energy to feed it. Of course science has long ago disproved that this is possible because of what are widely acknowledged and irrefutable laws that govern our universe - namely the first and second laws of thermodynamics.

This is not a site dedicated to the exposition of those laws nor is this post directed at refuting the theory of perpetual motion.

What it is directed at this time around is yet one more novel theory concocted by the GIAMATT crowd. For newer readers this is the short-hand abbreviation I have assigned to the "Gold is Always Manipulated All The Time" crowd.

That perpetual motion has been disproved has not stopped some from promoting it in order to create an income. Same goes for some in the GIAMATT group - that their wild and logic-twisting theories have been disproven time and time again, does not stop them from coming up with yet another and another and another. One must hand it to them - they seem to never grow weary, shame-faced or at a loss in their ingenuity at devising one more scheme to justify substantially higher gold prices.

I have chronicled some of these in the past three years and have written many refutations in an attempt to provide some balance that has hopefully spared some of their victims from losing a substantial portion of their hard-earned wealth.

Please see this previous post for a laundry list and note that this is not all of the theories that I have seen over this time period but only the more prominent ones.

http://traderdannorcini.blogspot.com/2014/10/gold-mining-stocks-continue-to-sink.html

I would like to focus in on the latest. I am forced to admit this is one that stretches the ability of those whose minds work in a logical manner to conceive of anyone falling for such a twisted example of convoluted and contradictory assertions.

I referenced this the other day in that post linked above but here it is in a nutshell.

The big gold ETF, GLD, is being drained of its gold inventory in order to meet insatiable demand coming out of the East and that this is BULLISH for the metal.

Let's start with a brief history of GLD, ACCORDING to some of the very same people promoting this latest theory.

Remember, in their mind, it is a contest between the PAPER gold markets here in the WEST and the REAL ( their word) gold market, which is in the far East.

Their claim is that were it not for manipulation of the gold price here in the West, that gold would be substantially higher because the true price would be set in the East by the physical market there. According to their new priests and prophets which lead this gold cult, once all of the gold is finished being drained from GLD, it will liberate the metal from the constraints being placed upon it in the West and the price will soar. Therefore, according to this view, FALLING GOLD INVENTORIES in GLD is ultimately WILDLY BULLISH!

( Please note that every single one of these theories is ALWAYS wildly bullish and PROOF POSITIVE that sharply higher gold prices are imminent).

Let's proceed to dismantle this latest theory by taking a trip back in time. When GLD was first introduced, a large number, if not an outright majority of those in the gold bug community swore up and down that its introduction was further evidence that the powers that be in the West were intent on siphoning true demand for gold AWAY from the physical gold market ( remember - in their mind that is the real gold market ) by creating another PAPER vehicle, just like the Comex. This paper vehicle would divert millions, tens of millions and hundreds of millions of dollars into an entity which could be manipulated by the "evil bullion bankers" and thus serve as a sort of Trojan Horse ( remember that phrase because it was extremely popular back then- Trojan Horse).

The big case against it however was its auditing process and specifically the point that the custodian for GLD was none other than HSBC, one of the noted "conspirators" in rigging the gold and silver prices (their claim - NOT mine). In other words, it was a case of the Fox guarding the chicken coop as far as they were concerned.

Additionally, they railed against the Authorized Participants of GLD - Bear, Stearns, Lehman, Citigroup, Merrill Lynch, Goldman Sachs, JP Morgan, UBS and Morgan Stanley as being unfit to be associated with anything the least bit related to gold, since they could not be trusted ( again - THEIR claim; NOT mine).

I distinctly recall the mockery and vociferous criticism raised by many of the ringleaders in the GIATMATT crowd when referencing the reported holdings of gold in the ETF. They screamed again and again that the auditing process was "a joke", and could not be trusted as they sarcastically put the following words in the mouths of those who managed the ETF:

" JUST TRUST US, the GOLD is THERE".

Do some of you remember this as well?

They cited the fact that the Trustee had no right to visit the premises of any subcustodian for the purposes of examining the Trust's gold as evidence that NO ONE COULD BELIEVE the REPORTED GOLD HOLDINGS in the ETF.

In other words, the GIAMATT crowd was reeking with disdain for any numbers coming out of GLD as unfit to be trusted.

Thus, they LOUDLY claimed that the gold was not there at all and that which was there was rehypothecated, subject to COUNTER-PARTY risk. This counter-party risk was something that they made a big deal about at that time.

Remember that other wild and popular claim that many of the gold bars were fake, being filled with tungsten?

All of their claims AGAINST GLD were to specifically DISCREDIT it as a viable gold investment vehicle that no one who really wanted to own gold should have anything to do with.

Here is the point - many of the same people who were mocking GLD back then and pooh-poohing the gold numbers it was reporting as its holdings, are NOW NEW BELIEVERS, NEW CONVERTS and have SUDDENLY had a REBIRTH of FAITH in the numbers coming out of GLD each day.

Now, some few years later, all of that Gold, Yes, the Gold that was NOT THERE in the ETF ( just trust us, the gold is there they said mockingly), the Gold that was rehypothecated, the Gold that had huge counter-party risk, and the Gold that was not really gold, but rather tungsten-filled bars is all being "RAIDED" and heading to the EAST to supply the insatiable demand from that corner of the globe.

I am not sure what world that many of my readers live in but in the world in which I live, this is what is referred to as hypocrisy. It is also one of the most egregious examples of illogic, inconsistently and blatant disregard for sound reason that I have ever seen in the arena of financial matters.

I guess these people who promote this sort of idiocy think we all have very short memories.

Then again, I suppose we should expect this sort of perverse reasoning when it comes to the gold cult. After all, this is just a sort of mirror image of the same "logic" that asserts that when gold experiences a sharp selloff at the Comex it is proof of "price suppression by the gold cartel banks". However when it experiences a sharp, blow your socks off sort of rally, that is normal, just, and righteous price action. Thus when it comes to the reported holdings of GLD, when they are rising, it is evidence that the numbers are bogus and should not be believed but when they are falling, it is incontrovertible evidence that the East is draining the ETF of all our gold.

Reductio ad absurdum perhaps???

To those readers who are actually serious-minded and are who are attempting to make fact-based investments or trades, rising GLD reported holdings are bullish for the gold price. Falling GLD reported holdings are bearish for the gold price. It really is that simple.

Don't fall for yet another hoax coming out of the GIAMATT cult. They see what they WANT TO SEE and not what is supported by the obvious facts. That is called "Observer-Expectancy Effect".

In closing here are two charts that illustrate perfectly what I stated in this last paragraph.

Here is the chart of GLD showing the rise and the fall in reported holdings.

And here is the gold chart:

Notice how closely the price of gold corresponds to the rise and fall of the reported holdings in GLD. Please note that I am NOT saying that there is a perfect correspondence in the daily price movement of gold in response to the reported holdings. What I am saying is that the general trend in the price of gold very closely mirrors what is happening in GLD holdings. When holdings rise, so too does the gold price. When holdings fall, so too does the gold price.

Keep that in mind when you come across yet another theory coming out of the GIAMATT crowd.

This is the simple, easy way to protect your family from financial disaster

Posted: 24 Oct 2014 09:54 AM PDT

From Brian Hunt in The S&A Digest:

You wake up in the morning, turn on the news, and get a sick feeling in your stomach.

The stock market is crashing again. Another big Wall Street bank has failed. Your 401(k) has lost another 25%. It’s bleeding value every week.

Your dream of early retirement is history. You’ve lost so much money in stocks that even a “regular” retirement is in jeopardy. If you live a long life, there’s no way you’ll have enough money.

This is the financial disaster scenario that terrifies a lot of investors. It’s what kept people up at night during the 2008 credit crisis.

Could it happen again?

Could another crisis cause the value of the U.S. dollar to collapse?

Could the stock market suffer another epic decline?

Many people say the answer to these questions is “yes.”

Fortunately, I don’t need to know the answer to these questions… and neither do you.

The good news is that it’s very easy to buy insurance against financial disasters like these. I personally own this insurance. Many of the smartest, wealthiest people I know own it, too. It could mean the difference between a comfortable, early retirement… or just barely getting by.

First, it’s important to agree on what “insurance” is. In my book, buying insurance comes down to spending a little bit of money to hedge yourself against a disaster.

Throughout our lives, we spend a little bit of money on insurance and hope we never have to use it. For example, home insurance costs a small fraction of your home’s value. Buy it and hope you never have to use it. Same goes for car insurance. It costs a fraction of your car’s value, so you buy it and hope you never have to use it.

It’s the same with investment insurance. You can buy “investment insurance” and hope to never have to use it.

There are hundreds of wealth and investment insurance policies out there. They involve intricate details, lots of forms to sign, and payment of big fees to advisors and salesmen (which are often the same thing).

I’d rather keep things simple and keep money in my pocket instead of a salesman’s pocket.

Here’s how you can do it… Put a small portion of your wealth in gold bullion.

That’s it.

That’s all it takes to insure yourself against a financial disaster.

No complicated insurance products. No big fees to pay. Just pay a small commission to a gold seller, store the gold in a safe place, and you’re done.

Here’s why this “insurance” is important…

Some popular market gurus are predicting a global depression, a collapse in the dollar, and a huge increase in the price of gold. The chances of them being right are relatively slim. People have been predicting the “next depression” for 30 years. The world just has a way of not ending.

However, the “doom and gloom” gurus bring up some good points. They aren’t crazy. There are some big risks to our financial system. The U.S. government is spending way too much money on wars, Obamacare, welfare, and other programs. Europe and China’s economies could decline and trigger a global recession. These are all real risks to your retirement account.

I’m no doom and gloomer. I think the economy will deal with these risks and keep growing. Again, the world just has a way of not ending like so many people believe it will. That’s why I want to own stocks, bonds, and real estate. These assets will do well if the crap doesn’t hit the fan.

However, I also want insurance in case I’m wrong and the potential disaster that some are predicting takes place. People would likely flock to gold in a global financial disaster… and cause its price to soar.

That’s why it makes sense to buy gold as a form of insurance.

The good news is that you don’t have to buy a huge amount of gold to have a good insurance policy. You can place just 5% of your portfolio into gold.

Let’s say you have a $100,000 portfolio with 95% of it blue-chip stocks and income-paying bonds. You place the remaining 5% of your portfolio into gold. This gives you $95,000 in stocks and bonds and $5,000 in gold.

If the predicted financial disaster doesn’t strike, your stocks and bonds will increase in value. Your gold will probably hold steady in price or decline a little. Since the bulk of your portfolio is in stocks and bonds, you’ll do just fine.

But what if the financial disaster strikes? I’ve heard some top financial analysts say gold could climb to $7,000 an ounce in the financial-disaster scenario.

Let’s say a financial disaster sends the value of your stocks and bonds down 50%. That would be a massive decline. Throughout history, only the worst, most severe bear markets sent stocks down this much.

This epic financial disaster would cut your $95,000 stock and bond position by 50%, leaving you with $47,500. But let’s say this disaster also causes gold to rise to $7,000 an ounce. Right now, gold is $1,230 per ounce. A rise to $7,000 would produce a more-than-fivefold increase in the value of your gold. It would cause the value of your $5,000 gold stake to rise to about $28,455.

Post-financial disaster, you’re left with $75,955 ($47,500 from stocks and bonds + $28,455 from gold). The disaster still hits you, but not nearly as hard. Your insurance played a big role in limiting the damage.

But what if you think the chances of financial disaster are higher than “unlikely”? What if you’re more worried than the average Joe?

If you are, simply increase the “insurance” portion of your portfolio. Instead of a 5% position in gold, you could increase it to 20%.

If the previously mentioned financial disaster were to strike your $100,000 portfolio weighted 80% in stocks/bonds and 20% in gold, the math works out like this:

The 50% decline in your $80,000 stocks/bond position leaves you with $40,000. Gold’s increase to $7,000 an ounce makes your $20,000 gold position increase to $113,821.

Your large gold insurance position actually produces a net gain in this scenario. You’re left with $153,821… an increase of more than 50%.

As you can see, the larger your gold-insurance policy, the better you do in the financial-disaster scenario. But if the financial disaster doesn’t strike, you won’t benefit as much because you hold less money in stocks and bonds, which do well if the economy carries on. And keep in mind… it would take a serious financial disaster to send stocks down by 50% and gold to $7,000.

Depending on what you think the chances of financial disaster are, you can adjust your gold-insurance policy. It all depends on your goals and beliefs.

Think the chances of disaster are slim? Consider a gold-insurance policy equivalent to 1%-5% of your portfolio. Think the chances of disaster are high? Consider a gold-insurance policy equivalent to 20% of your portfolio.

Are the “gloom and doom” gurus right? Is the financial disaster around the corner? I don’t know the answer. Nobody does. But if you buy some “investment insurance” in the form of gold, you don’t need to know the answer. It’s simple. It’s easy. It’s low cost.

You buy gold and hope to never have to use it. You’ll do fine if things carry on. You’ll do fine if the crap hits the fan.

And the peace of mind you get from owning gold “insurance” is worth even more than the money it could save you.

At Stansberry Research, we’ve found many Americans are woefully underprepared for financial and personal disasters. Most people don’t realize that they are taking extraordinary risks with their finances, health, and homes.

What if there’s another large-scale terrorism attack on U.S. soil… or a major flu pandemic… or an economic crisis that disrupts the entire fabric of our society? Who do you think your family is counting on in the event of a crisis?

Whether you know it or not… whether they’ve told you this or not… your family is counting on you. Do you have a plan in case the power goes out for a week or more… or if you don’t have access to running water for two weeks?

Do you know what to do if the banks close for an extended period of time… or if it’s not safe to go outside because of some type of health epidemic?

If you don’t have a good plan for these scenarios, I have something special for you to pay attention to today.

You see, our own Dr. David “Doc” Eifrig has put together a fascinating presentation on something he calls the “Doctor’s Protocol.” It’s a simple four-step plan that will ensure you are ready for just about any type of crisis.

I strongly, strongly encourage you to take a look at Doc’s work. It’s a real eye-opener.

It will help you look at the world in a different way. It will give you more confidence on a day-to-day basis and will help you sleep better at night. It will make you a much more valuable member of your community… and it could literally save your life. You can access Doc’s informative presentation, free of charge, right here.