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• Why Gold and Silver Are the Good News Metals
• Low Inflation? The Price Of Ground Beef Has Risen 17 Percent Over The Past Year
• Robust Demand for Physical Gold Support Prices
• Why Interest Rates Will Keep Falling to Zero
• Gold 1239-1243 is Near Term Resistance
• Gold eyes FOMC meet, Silver supply to decline: ETFS
• Gold drifts lower as waiting game continues
• Dollar Decline Continues: China Begins Direct Convertibility to Asia’s #1 Financial Center
• South African gold miner eyes biogas to power underground trains
• Indian gold company director arrested for smuggling
• Top gold mining equities divide
• Very nearly a new gold mine to build
• Metals market update for October 28
• This could be the most incredible medical discovery of the century. And it’s happening right now.
• Another Pension Scandal – The Crony Love Affair Between North Carolina, Credit Suisse and Erskine Bowles
• India's silver imports skyrocket
• Bo Polny: The 252 Year Stock Market Blackjack 21 Recession/Depression CYCLE!
• Keep calm - peak gold here to stay
• New Data Shows it Will Take 398,879,561 Years to Pay Off the Debt
• We Don’t Have One Problem–We Have Three Interlocking Sets of Problems
• The future for gold is brightening
• Omniscient Federal Reserve Captures The Capital Market, For Now. Gold Beckons.
• Omniscient Federal Reserve Captures The Capital Market, For Now. Gold Beckons.
• FBI Raids Federal Contractor’s Home – Has the Government Identified the “Second Leaker”?
• Sibanye 2014 gold target could be difficult
• Stratex’s new Turkish gold mine nears start-up
• Swiss ‘Yes’ and ‘No’ Gold Initiative Campaigns Compete at Launches in Bern
• The not so great debate – Is gold manipulated or not?
• New London gold benchmark to go live early 2015
• Australian Scholar Says Futures Markets Suppress Commodity Prices, Keep Producing Nations Poor
• China launches direct trade between yuan, Singapore dollar, bypassing U.S. dollar
• Greenspan says he's not aware of gold price suppression through central bank leasing
• Gold price suppression documents cited in debate at New Orleans conference
• Bill Holter analyzes gold manipulation debate at New Orleans conference
• Grant Williams: This Little [Swiss] Piggy Bent the Market
• Swiss gold initiative advocates professionalize their campaign and need your help
• Swiss gold exports to India cross Rs 70,000 crore; banks turn wary after black money probe
• Black-gold rush? Not really
• As gold smuggling rises, India's tax office calls for lower import duty
• Australian scholar says futures markets suppress commodity prices, keep producing nations poor
• Giant gold nugget found in California finds secret buyer
• Does Gold Always Respond to Real Interest Rates?
• Emaar chairman welcomes ‘cooling’ Dubai real estate prices but still goes ahead with massive new project launch
• Managers Increasing Bets on Gold But Price Action Looks Bearish
• To Protect and Perve – California Cops Share Nude Photos Stolen from Citizens’ Cellphones
• Harvey Organ’s Gold & Silver Update: Options Expiration!
• A Tale of Two Cities
• Peak gold is here to stay
• A “panic sell-off” could be coming in gold and silver. Here’s what resource investors should know.

Why Gold and Silver Are the Good News Metals Posted: 28 Oct 2014 12:30 PM PDT Analysts and some precious metals' sellers tend to focus on the "insurance" aspect of owning precious metals. They point out that having some in your possession helps protect your wealth in case of inflation, political unrest, or for use as an "alternate currency" during a natural disaster, war, etc. Of course, these are all valid reasons for purchasing and holding "the precious metals four" – gold, silver, platinum, and palladium. But the benefits go far beyond the insurance and assurance aspects. It just makes all around good sense. For you see, each of these are in their own way, "good news" metals. As the developing world's wealth increases, hundreds of millions of people have more disposable income – money left over after covering life's basic expenses. For millennia, a significant portion has always been directed and will continue to find its way into precious metals' ownership. In Asia, Indians regard gold and silver as "bank accounts in your hand," dowries for exchange upon marriage, or the raw material for the creation of jewelry having lasting beauty. In China, where the savings rate can be as high as 40% of income, precious metals fulfill the timeless role of asset preservation. In North America, Eagle and Maple Leaf sales continue to set records. Through September of this year, roughly 26 million American Silver Eagles have been purchased – on track to set an annual record – the most since their introduction in 1986. When my daughter graduated from high school in 2000, my gift to her was a one-ounce gold Krugerrand – for which I paid $275. When America's first pure gold coin, the 24 carat American Buffalo was introduced in 2006, I bought one for $800 for each of my children. All of these coins are absolutely beautiful. They speak of our nation's past. They bring a smile to the face of someone who holds them in their palm. They are a store of (increasing) value. They are a "physical reality" by which only the person who owns them can lay claim. They are a direct and enduring link to 5,000 years of history. Industry Loves These Metals Too! Governments are mandating phasing out of incandescent bulbs for supposedly more efficient fluorescent lighting. But fluorescents turn on slowly, produce a different quality of light, and still contain mercury – a neurotoxin harmful to both people and the environment. At the same time, the Light-Emitting Diode (LED) is revolutionizing the lighting industry. It contains no mercury, generates little heat, lights instantly, and can last for 25 to 100 years! A 60 watt LED uses just 10 watts of power – 85% less than a traditional bulb. Continuing to decline in cost, they are replacing older methods in traffic intersection lights, residential and commercial lighting, flashlights, and headlamps. Small amounts of gold and silver compounds are used in the soldering process. This is critical in forming a chemical bond with the gallium on the wafer's surface of every LED, enabling the semiconductor to conduct electricity so it can function like an electronic device. Each year over half of silver's global production is earmarked for (mostly unrecoverable) use in hundreds, if not thousands of silver industrial applications which make our lives more productive, enjoyable, and safe. Add robust investment and jewelry demand, and you get a sense of where prices are headed over the next few years. This is good news! Many of the world's largest cities suffer from life-threatening levels of pollution generated by cars, trucks, and engines of all kinds. Catalytic converters use platinum and palladium to reduce these harmful emissions. But auto makers are now working to create emission-free vehicles. These fuel cell vehicles (FCVs) use platinum as a catalyst to split hydrogen fuel into ions and electrons – virtually eliminating carbon monoxide emission – replacing it with water vapor! It is reported that each FCV produced will require at least one ounce of platinum. With supplies of platinum and palladium moving into multiple-year deficit territory, it's not hard to see that their cost will rise as the forces of demand and supply collide. More good news. Across cultures and historic time periods, anywhere in the world, precious metals have always been instantly accepted as money – unlike the eventual fate of virtually every artificially-created paper currency that has ever been circulated. Yes, the "paper promises" in our wallet still buy us things, but consider this: In the United States since 1971, inflation has caused the dollar to lose 83% of its purchasing power – and that's using the federal government's own statistics that understate the real number. That means the greenback is barely worth 17 cents. Meanwhile, during that time, an ounce of gold or an ounce of silver has increased in value by well more than 1000%! (This new Money Metals infographic tells the story.) Frank Holmes has popularized the "2 doors" nature of gold's attraction for buyers. He calls them the "fear trade" and the "love trade" – both powerful motivators. Stu Thomson understands what the future portends for owners, telling us, "The fear trade got you into gold. The love trade will make you richer with it." Yes, buy and hold the 4 precious metals to help protect your family from unexpected financial dislocations and perhaps earn a substantial profit. But do it also because of their timeless beauty, their abundant utility in industry, the warm feeling you get holding them in your hand… and the love exchanged when you share them with others. For all of the above reasons, make sure you own one or more of these four increasingly precious metals. Don't consider their purchase to be an expense. You're simply exchanging a paper currency that continues to lose purchasing power, for real money which not only holds onto its value, but tends to increase over time. Now that proposition is good news in anyone's book! About: David Smith is Senior Analyst for www.TheMorganReport.com and is a regular contributor to www.MoneyMetals.com. For the last 15 years, he has investigated precious metals mines and exploration sites all over Argentina, Chile, Mexico, China, Canada, and the U.S. and shared his findings and investment wisdom with readers, radio listeners, and audiences at North American investment conferences.

Low Inflation? The Price Of Ground Beef Has Risen 17 Percent Over The Past Year Posted: 28 Oct 2014 12:00 PM PDT Thanks to the Federal Reserve, the middle class is slowly being suffocated by rising food prices. Perhaps you have also noticed that food prices have gotten pretty crazy lately.  In particular, meat prices have become absolutely obscene.  For example, the average price of ground beef has risen to a new record high of over $4.09 a […] The post Low Inflation? The Price Of Ground Beef Has Risen 17 Percent Over The Past Year appeared first on Silver Doctors. Check out these similar articles: 100 Reasons to Shut Down the Fed Forever! Fed Minutes: “BROAD SUPPORT FOR BERNANKE TAPERING” 83 Numbers From 2013 That Are Almost Too Crazy To Believe

Robust Demand for Physical Gold Support Prices Posted: 28 Oct 2014 11:22 AM PDT Gold prices climbed to their highest level since Sept. 10 last week, breaking above the $1,250 an ounce level. Gold’s outlook this week will depend largely on the Federal Reserve policy meeting, when the U.S. central bank is widely expected to end its bond-buying stimulus. The Fed’s two-day meeting, which begins today will also be watched for clues on whether any slowdown in Europe or elsewhere could affect the central bank’s monetary policy. On Monday, October 27, some of the biggest financial news of the year made huge waves all over Asia. Yet in the Western press, this hugely important event was barely even been mentioned. The Chinese government announced that the Renminbi or Yuan will become directly convertible with the Singapore dollar effective Tuesday, marking another step toward internationalizing the Chinese currency. The announcement by China Foreign Exchange Trading System (CFETS) extended the yuan’s list of direct onshore trade to more major currencies, including the U.S. dollar, the euro, British sterling, Japanese yen, Australian dollar, New Zealand dollar, Malaysian ringgit and Russian rouble. With direct trading of their currencies, China and Singapore will be less dependent on the U.S. dollar to settle bilateral trade and investment deals. Previously, the exchange rate between the two currencies was calculated based on the yuan-U.S. dollar central parity rate and the Singapore dollar-U.S. dollar rate. Now that the two currencies can be directly traded, the yuan-Singapore dollar rate will be set based on the average prices offered by market makers before the opening of the interbank foreign exchange market. The Chinese government is gradually relaxing its hold over the yuan and making it a global reserve currency. China is also under pressure to diversify its foreign exchange reserves, which stood at 3.89 trillion U.S. dollars at the end of June. According to the Society for Worldwide Interbank Financial Telecommunication (SWIFT), international bank payments denominated in yuan have nearly tripled in value in the past two years. Physical buying ahead of the Indian Diwali holiday helped push gold to its upper levels, along with some short-term technical-chart related buying, but gold's inability to build on those gains caused the market to retreat. Gold imports into India surged more than four-fold last month on expectations that declining prices would boost festival demand. Purchases have been estimated at about 95 metric tons compared with 15 tons to 20 tons in September last year, said Bachhraj Bamalwa, a director at the All India Gems & Jewellery Trade Federation. Buying and gifting of gold is considered auspicious and the most favorable time is the festival of Dhanteras, two days before Diwali which occurs on Oct. 23. Festivals run through November and the wedding season follows to early May. Sales of gold increased by around 20% this Dhanteras when compared with last year. In Ahmedabad, as many as 60 jewellers that belong to the Ahmedabad Jewellers’ Association launched the grand shopping festival “Swarna Utsav” with the primary objective of recouping the losses incurred by them in the past six months due to lack of business. In Ahmedabad the local jewellers expected the business to cross Rs 250-300 crore till Diwali (October 23). “During Dhanteras the sales of gold and silver has been significantly higher than last year. We expect sales to rise by 15-20% this year over last season,” said Shantibhai Patel of the Ahmedabad Jewellers’ Association. He said that this was due to lower price of the precious metals. “We expect sales of Rs 250-300 crore this Diwali season,” he added. Explaining the buying trend Patel said that people seemed to prefer coins, bars and lightweight jewellery this year for investment. “Compared to last year more people are going for gold coins and lightweight jewellery. This is also because the marriage season is a little late this year,” he said. In Rajkot people crowded local jewellery stores. The Rajkot Gold Dealers’ Association president Bhayabhai Sholiya said that in Rajkot city dealers expected to see an increase in sales of around 15%-20% compared to the previous Diwali season. Haresh Soni of the All India Gem and Jewellery Trade Federation also expects to see higher sales this season. Meanwhile, jewellery sales jumped by at least 30% this Dhanteras in the popular Zaveri Bazaar. According to MMTC-PAMP-the country's leading gold and silver refining and minting facility, its entire inventory of gold and silver coins minted for sale during Diwali has been sold out. The total sales of gold and silver coins increased by 40% over last year.  MMTC-PAMP is a joint venture between state-owned Metals and Minerals Trading Corporation of India (MMTC) and Switzerland-based world's leading bullion brand PAMP SA. It is the country's first and only LMBA accredited gold and silver refinery. “Diwali sales across the country were very good. It was about 20% higher compared with last year,” Bachhraj Bamalwa, director at the All India Gems and Jewellery Trade Federation, told Reuters. The trade body represents more than 300,000 jewellers. Diwali, known as the festival of lights, is a five-day celebration with fireworks, candles, sparklers, and other lighting displays by millions of Hindus, Sikhs and Jains across the world. The first day this year is October 23, and it usually falls between the last two weeks of October and the first two of November. During the five-day festival, people dress in their best new clothes, and of course, gold jewellery. Nearly 20% of annual jewellery sales are attributed to the holiday. “This year prices were low, sentiment was good and we have a stable government at the centre; all of these helped boost sales,” Bamalwa said, referring to this year’s election of Narendra Modi as the prime minister. Although the major gold buying festivals of the year are over, the wedding season is set to begin in the third week of November. Bamalwa said sales could continue to be strong due to the wedding season that will extend until early next year. “The gold demand this Diwali mirrors the general optimism that has set in the economy, reinforcing the traditional faith in gold for the average household saver and the increased economic relevance of this asset class due to various uncertainties on the horizon. Policy restrictions have had little impact on demand for gold, though sources of supply have increasingly shifted to unauthorised channels. It is time for a long term approach to gold in India. As a nation we need to focus on measures that will unlock the potentially transformative value of the gold stored in millions of private households in order to fund the nation’s growth.” Somasundaram PR, Managing Director, India, World Gold Council. The World Gold Council forecasts India will import 850 to 950 tons of gold in 2014. According to the China Gold Association, China’s gold off-take in 2013 reached 2,200 tons, substantially more than the 1066 reported by the World Gold Council. According to GATA consultant Koos Jansen, the amount would constitute most of world gold mine production and the figure apparently does not include purchases by the People’s Bank of China, which remain the most sensitive state secret. And, on Monday October 27, China’s net gold imports from main conduit Hong Kong jumped to a six-month high in September . Net imports from Hong Kong to the mainland rose to 68.641 tons last month from 27.477 tons in August, according to data e-mailed to Reuters by the Hong Kong Census and Statistics Department.  Total gold imports from Hong Kong totalled 91.745 tons.  Meanwhile, The Central Bank of the Russian Federation added a whopping 1.2 million troy ounces to their holdings in September.  This is the biggest one-month purchase they’ve ever made. The previous biggest addition was 1.1 million ounces back in May of 2010. Russia’s Central bank reserves now stand at 37.0 million troy ounces. No asset has had as much history of purchasing power as gold. Fiat currencies are unreliable – they aren’t tied to any asset of value. Their worth comes from government regulations and laws, which are subject to crumble over time. Physical gold coins or bars are an unequalled safe haven, due to their liquidity and lack of counterparty risk. (This does not include limited edition medallions and numismatic items which are not to be confused with bullion products). Frankly, I believe limited edition medallions are not of any value to investors. Both gold and silver are a liquid, universally recognized form of transportable wealth that is not simultaneously someone else’s liability. That’s what makes them so desirable. Technical picture Although gold prices pierced the $1250/oz. level, they failed to rally further. Prices may correct before the next leg to the upside.   For more information go to: www.lakeshoretrading.co.za

Why Interest Rates Will Keep Falling to Zero Posted: 28 Oct 2014 10:30 AM PDT Spoiler alert: I think interest rates will keep falling to zero, though of course there can be corrections. The interest rate is pathological. It's like an object that gets too close to a black hole. Once it falls below the event horizon, then a crash into the singularity of zero is inevitable. Submitted by Keith […] The post Why Interest Rates Will Keep Falling to Zero appeared first on Silver Doctors. Check out these similar articles: History Shatters the Fallacy That Rising Interest Rates Are Gold’s Nemesis A Monetary Cancer Metastasizes in Europe Jim Grant: We're in an Era of 'Central Bank Worship'

Gold 1239-1243 is Near Term Resistance Posted: 28 Oct 2014 09:33 AM PDT

Gold eyes FOMC meet, Silver supply to decline: ETFS Posted: 28 Oct 2014 09:01 AM PDT In US dollar terms, gold ended the week with a year-to-date (YTD) gain of 2.4% compared to the 6.3% YTD increase in the S&P 500 index and despite a 7.1% increase in the US dollar index.

Gold drifts lower as waiting game continues Posted: 28 Oct 2014 08:50 AM PDT Gold prices drifted slightly lower today as many investors are likely awaiting the FOMC announcement to be released Wednesday afternoon.

Dollar Decline Continues: China Begins Direct Convertibility to Asia’s #1 Financial Center Posted: 28 Oct 2014 08:45 AM PDT This morning some of the biggest financial news of the year made huge waves all over Asia. Yet in the Western press, this hugely important information has barely even been mentioned. (CNBC.com, for example, has yet to report on this story as of 11:45am Eastern…) Submitted by Simon Black, Sovereign Man:  So what's the news? […] The post Dollar Decline Continues: China Begins Direct Convertibility to Asia's #1 Financial Center appeared first on Silver Doctors. Check out these similar articles: Koos Jansen’s Exhaustive Summary of the Chinese Gold Market Hong Kong Is The Key In Global Gold Trade…For Now 2013 Gold Trade Numbers Broke All Records

South African gold miner eyes biogas to power underground trains Posted: 28 Oct 2014 08:28 AM PDT Sibanye Gold could be first to use gas-powered trains.

Indian gold company director arrested for smuggling Posted: 28 Oct 2014 08:21 AM PDT The Indian Customs Department has decided to move court to issue arrest warrant against the first accused in the case related to smuggling of gold out of Special Economic Zone to jewelry shops.

Top gold mining equities divide Posted: 28 Oct 2014 08:12 AM PDT One analyst notes: "There's been a very big divergence between the performance of gold equities globally."

Very nearly a new gold mine to build Posted: 28 Oct 2014 08:10 AM PDT Diane Garrett, President and CEO of Romarco Minerals, is at the crux. She is so close to financing and permitting on a key North American gold project.

Metals market update for October 28 Posted: 28 Oct 2014 08:03 AM PDT Gold and silver both finished last week down at 0.53% and 0.52%. Spot gold closed at $1,226.38 yesterday and spot silver closed at $17.11 per ounce.

This could be the most incredible medical discovery of the century. And it’s happening right now. Posted: 28 Oct 2014 08:02 AM PDT From Dr. David Eifrig, MD, MBA, editor, Retirement Millionaire: A new treatment is extending the lives of people with supposedly “incurable” cancers… even wiping out cancers completely. I call it the “Living Cure.” I guarantee you that in the next few years, major magazines will feature the Living Cure on their covers. Ordinary folks will know all about it. Drug companies investing in it now will become pharmaceutical giants. One of my close contacts in the biotech world tells me doctors are battling to get their names and patients into these trials, because the doctors who play a prominent role in what is taking place right now will be considered heroes of the industry in a decade. It’s all starting to unfold. Now, I want to be clear… These treatments are still young. They can’t cure every cancer… at least not yet. And they come with risks and downsides. Still, they’ve yielded some of the most extraordinary results in more than a century of modern cancer treatment. Ultimately, some of the world’s largest pharmaceutical companies will profit handsomely, as well. Let’s take a look at the history of the Living Cure… In 1891, Dr. William Coley came across a housepainter named Fred Stein. Stein had a fast-growing tumor in his neck despite four surgeries to remove it. His case was declared “absolutely hopeless” by a senior surgeon. Then, Stein got a bacterial infection on his face. Without the benefit of antibiotics, he had to let his body fight off the infection. It might have been one of the best things to have ever happened to him… Stein didn’t just beat the infection. He beat the cancer. Something about the way his immune system strengthened to fight the bacteria led his body to attack and defeat the cancer. Stein made a full recovery. Dr. Coley pursued this cancer cure for years afterward. He’d draw samples from infectious abscesses and inject them into patients, trying to spark an immune response. Coley claimed to have had several successes. But the results weren’t as consistent as the competing approach at the time – radiation. In the ensuing battle to beat the disease, radiation won out as the preferred treatment for more than a century. But Coley was on to something… Cancer is an extremely complex disease. We’ve learned an amazing number of details about it since Coley’s time: How it starts, how it grows, the differences between the varieties, how the genes in cancer cells work, and more. Without that information, Coley couldn’t figure out why the immune system beat a few cancers, but not others. If he could have applied today’s knowledge, he may have convinced others to work on his idea of using the immune system to beat cancer. Because now… it appears to work. Cancer has a lot of moving parts and a lot of causes. Over time, the research focus has shifted from attacking one or another of these aspects. At times, the “hot” research has focused on chemotherapy mega-dosing, the viral foundations of some cancer strains, the genomic aspects of specific tumors, and other subjects. The idea of using the body’s own immune system to fight cancer has popped up several times. After Coley, the 1980s saw the rise of the drugs interferon and interleukin-2. Both tried to turn the immune system against cancer. Both showed early promise in animals and drew a lot of media hype. Both ended up showing only limited benefits when put to use. The focus on immune cures faded. Now, immunotherapy – what I call the Living Cure – is back. At least a dozen immunotherapy drugs are in development. And these treatments dominated the conversation at the American Society of Clinical Oncology (ASCO) conference this June. On the business side, analysts predict that the market for immunotherapy drugs will be worth $35 billion in 10 years… suggesting that this isn’t just good news for cancer sufferers, it’s also good for business. In Retirement Millionaire, we recommend you buy shares in the company leading the charge in developing these new life-saving drugs. And better yet, we don’t have to risk our money on some tiny, cash-strapped biotech firm that could vanish before its drugs see the light of day. Rather, we can invest in the immunotherapy trend by buying shares of a multibillion-dollar pharmaceutical firm. This company is more than 100 years old and a household name. It has spent the last seven years transforming itself from a stodgy Big Pharma corporation into a nimble drug developer focused on immunotherapy. With a history of healthy cash flows, the financial muscle of a big pharmaceutical company, and a pipeline stuffed with promising drugs… we believe this stock is poised for huge capital gains in the coming years. Crux note: According to Doc, the “Living Cure” is more powerful than anything developed in the past 120 years… and could ultimately make radiation and chemotherapy obsolete. Thanks to these treatments, patients with some of the deadliest known cancers are being declared cancer-free. Doc recently released research – including a full booklet – explaining how the Living Cure is revolutionizing the way we treat cancer… and revealing the single best way to invest for huge, safe financial gains in the coming years. Click here for all the details.

Another Pension Scandal – The Crony Love Affair Between North Carolina, Credit Suisse and Erskine Bowles Posted: 28 Oct 2014 08:00 AM PDT When it comes to how the U.S. economy of fraud functions in 2014, the following article has it all. A government official, a global investment bank and a businessman/politician, all working together to enrich themselves at the public's expense. It demonstrates how big bucks are really earned by insiders in the new American Dream, characterized by extreme cronyism […] The post Another Pension Scandal – The Crony Love Affair Between North Carolina, Credit Suisse and Erskine Bowles appeared first on Silver Doctors. Check out these similar articles: Leaked Documents Show How Blackstone Fleeces Taxpayers via Public Pension Funds New Jersey's Debt is Downgraded by Fitch as Chris Christie Funnels Pension Money to Private Equity and Hedge Funds Wall Street Officially Becomes a Parody of Itself

India's silver imports skyrocket Posted: 28 Oct 2014 07:55 AM PDT The latest statistics released by the Gems and Jewellery Export Promotion Council (GJEPC) suggests notable rise in silver bar imports by India during the month of September this year.

Bo Polny: The 252 Year Stock Market Blackjack 21 Recession/Depression CYCLE! Posted: 28 Oct 2014 07:30 AM PDT US Stock Market is headed down, & both Gold and Silver are headed MUCH higher and soon! Will a Recessionary/Depression CRASH into 2016 occur to complete the game of Blackjack 21?    Submitted by Bo Polny:  This past week at Cambridge House International Silver Summit in Spokane, Washington I had the privilege of meeting and speaking with […] The post Bo Polny: The 252 Year Stock Market Blackjack 21 Recession/Depression CYCLE! appeared first on Silver Doctors. Check out these similar articles: BO POLNY: The Secret 21 Year Gold Cycle That Leads to World Commodity Bull Market Breakouts in 2014 If Economic Cycle Theorists Are Correct, 2015 To 2020 Will Be Pure Hell For The United States Bo Polny on 2015: The Coming Inflationary Spike & Deflationary Bear Market CYCLE that Devastates the World!

Keep calm - peak gold here to stay Posted: 28 Oct 2014 07:04 AM PDT This could be an opportunity of a lifetime for contrarian investors, argues Oliver Gross in this Gold Report interview.

New Data Shows it Will Take 398,879,561 Years to Pay Off the Debt Posted: 28 Oct 2014 07:00 AM PDT German astronomer and mathematician Friedrich Bessel managed to successfully measure the distance from Earth to a star other than our sun in the 19th century. But he realized that his measurements meant nothing to people as they were. They were too abstract. So he came up with the idea of a "light-year" to help people get […] The post New Data Shows it Will Take 398,879,561 Years to Pay Off the Debt appeared first on Silver Doctors. Check out these similar articles: Rotting, Decaying And Bankrupt – If You Want To See The Future Of America Just Look At Detroit Guest Post: The Painless Cure to Our Monetary System Jim Willie: Gold Fever: Coming Global Currency Reset Will Double Gold Overnight!

We Don’t Have One Problem–We Have Three Interlocking Sets of Problems Posted: 28 Oct 2014 06:20 AM PDT The additional sets of problems added as “solutions” only guarantee that the third and final crash of asset bubbles just ahead will be far more devastating than the crashes of 2000 and 2009. The conventional view tacitly assumes the global economy is dealing with one problem: recovering from the Global Financial Meltdown of 2008-09. Stimulating a “recovery” has been the focus of central banks and states everywhere. Short-sighted political expediency is a hallmark of the modern state’s reaction to crisis, but political expediency isn’t the only flaw in the central banks/states’ obsessive focus on “recovery;” it’s not even the primary flaw. The real flaw is the central banks/states don’t even recognize that we face three interlocking sets of problems, not one. Each set of problems is layered on top of the previous layer, and each sets reinforces the other two. In other words, the entire problem set is more than just the sum of the three problem sets. 1. Financialization of the economy. As the post-industrial funk of the 1970s dragged on, the neoliberal ideology of liberalizing credit markets and eliminating the regulatory wall between investment banking and commercial/mortgage banking was presented as the fundamental fix to post-industrial stagnation: free up credit, leverage and speculation, and the results would be an expansion of asset prices and growth. The first wave of financialization in the 1980s did indeed boost asset valuations and growth, but it did so by eroding the productive economy and the middle class that arose from gains in productivity. Financialization substitutes finance for productive investments, such that financial games such as originating subprime home mortgages become far more profitable than non-financial capital investments. I’ve covered the immense structural damage wrought by financialization for years. Here is a small sample of essays from the 10+ pages of links available in the archives: What’s the Primary Cause of Wealth Inequality? Financialization (March 24, 2014) Financialization and Crony Capitalism Have Gutted the Middle Class (July 13, 2012) Our “Let’s Pretend” Economy: Let’s Pretend Financialization Hasn’t Killed the Economy(March 8, 2012) The E.U., Neofeudalism and the Neocolonial-Financialization Model (May 24, 2012) Productive Vs. Unproductive: Manufacturing Vs. Financialization (June 6, 2011) The Heart of Financialization: Counterfeiting Risk-Free Assets (December 7, 2012) Why have the central banks and central states allowed financialization to hollow out the real economy? Because they have no choice. As I explained in Why the State Has Failed to Reform Our Broken Financial System (October 16, 2014), extreme financialization is the last source of the monumental profits the state needs to fund itself, and the last source of economic “growth” in an economy gutted by previous rounds of financialization. 2. Extremes of credit, leverage, risk and speculation. As conventional financialization failed to reflate the asset bubbles of the late 1990s that crashed in 2000, central banks and states opened the doors to extremes of credit expansion, leverage and risk. Financial fraud and embezzlement became the models of choice as lenders and borrowers alike engaged in a monstrously profitable churning of securitized mortgages, liar loans, initial public offerings of companies with no hope of generating profits, and all the other tricks of the finance trade. The inevitable result of these extremes of supposedly low-risk leverage and sleight of hand was the Global Financial Meltdown of 2008-09, when bubbles in credit, risk, stocks and real estate popped. 3. The central bank/state “solutions” to the Global Financial Meltdown are the third set of problems. The monetary/fiscal solutions–dropping interest rates to zero, printing trillions of dollars, yen, euros and yuan out of thin air and giving banks and financiers free access to all this loot, with the implicit promise that any bets that went bad would be backstopped by the taxpayers–have not only done nothing to repair the damage done by the first two problem sets but have unleashed even more destructive dynamics. The analogy I have used is monetary heroin: the first hits of quantitative easing had an immediate effect on moribund assets. But each successive wave of monetary heroinhas had diminishing effects as the addict became habituated to the endless stimulus. The central bank solution to this habituation is to increase each new dose of stimulus. Unfortunately, at some point the dose becomes large enough to kill the addict: The Fed’s Failure Complicates Its Endgame (July 30, 2014) Each monetary/fiscal “fix” inflated a bubble that crashed. Rather than face the harsh consequences of financialization and successive waves of monetary extremes, central banks and states have elected to reflate the bubbles as the politically expedient solution that leaves the crony-cartel-state status quo intact. But the additional sets of problems added as “solutions” only guarantee that the third and final crash of asset bubbles just ahead will be far more devastating than the crashes of 2000 and 2009. The Coming Crash Is Simply the Normalization of a Mispriced Market (July 18, 2014) Understand what’s really go on in the job market: Get a Job, Build a Real Career and Defy a Bewildering Economy, a mere $9.95 for the Kindle ebook edition and $15.47 for the print edition.

The future for gold is brightening Posted: 28 Oct 2014 06:10 AM PDT Gold's future is brightening as the structural global problems promise some disruptions next year, says Julian Phillips.

Omniscient Federal Reserve Captures The Capital Market, For Now. Gold Beckons. Posted: 28 Oct 2014 06:07 AM PDT Omniscient Federal Reserve Captures The Capital Market, For Now. Gold Beckons. A cursory glance at the various financial news media this morning shows nothing particularly unusual for these unusual times. The ECB have paraded a list for stress tested banks and the market shrugged. However, there is a disturbing thread running through most of the stories to which we have become immune but which would have been considered highly unusual at almost any time in the twentieth century. And that thread is the influence of the Federal Reserve in practically every key market in the world.   The markets have become increasingly captured by Federal Reserve policy, watching what might be and what might change. "Schrodinger’s Cat" is the name given to the idea that the observer (Federal Reserve) of an experiment can by virtue of their very presence affect the subject (Markets) being observed. The Federal Reserve is far, far from a passive influence within the markets, poised to prop up the market should an unthinkable catastrophe threaten, no, now they are THE market. They control almost every facet of the market directly or in most cases indirectly. They have almost limitless power to monetise debt and force their will on the market for as long they wish or along as enough people believe in them in the absence of alternative. And therein lies the keys: market confidence and acceptable alternative monetary systems. Reuters report that, among other factors, last week’s slight weakness in gold was caused by fears that the Fed might signal their intention to raise rates at the conclusion of their two-day meeting tomorrow. This, despite the Fed signalling last week that rates may have to remain at their current rate in light of the situation in Europe. Bloomberg reports that the Fed is expected to keep rates stable. The Wall Street Journal doesn’t offer an opinion on the outcome but regards the issue as one of great importance. What we find odd is how a central bank, whose function is to act as lender of last resort to banks in times of crisis has expanded its mandate to micromanage the economy itself. During the twentieth century such a scenario could never have occurred in the U.S. and Western Europe. It would have been equated with the Marxism and central planning of the Soviet Union. Robert Fitzwilson defined capitalism succinctly in his interview with KWN on Sunday: “Capital used to be derived solely from hard work, ingenuity and productivity as a surplus after costs. That surplus capital was utilized for reinvestment by the owner or sent through financial intermediaries such as banks to people in need of capital for productive purposes.” He went on to explain how this principle has been undermined: “That centuries-old system has been virtually made irrelevant by the modern ability of the central banks to create and supply unlimited amounts of what serves in our day as capital, fiat currency.” Now, this new style of capitalism may be viable – we wouldn’t claim to know – but it depends entirely on the honour and integrity of the people managing the system. Marxism was similarly dependent. And if “by their fruits you shall know them” then it is quite clear that the system is being managed by oligarchs on behalf of their cronies. Noam Chomsky muses over how the cures prescribed by the rich for the poor always fail but still seem to have the unforeseen consequence of making the rich even more wealthy. Over the weekend Hillary Clinton echoed the claim made by president Obama that it was the federal government and not businesses who create employment as reported by Zerohedge. Are we in the midst of the transition from free-market economy to a centrally planned one? Is this the dawn of the U.S.S.A.? In Europe the situation is no different. The experience of peripheral nations like Ireland and Greece show that the so-called troika have taken upon themselves the job of managing national economies (while reneging on their duties such as acting as a lender of last resort). The ECB removed democratically elected scoundrel Berlusconi from office in Italy only to replace him with a former Goldman Sachs banker. So what does this mean for owners of gold and those considering acquiring it? We cannot begin to speculate. But we would look at the experience of every other centrally planned economy in history and note that it ended in currency collapse, massive wealth destruction and tears. Our usual prescription still applies. We advise clients to own gold in fully segregated and fully allocated accounts in ultra-secure vaults in the safest jurisdictions in the world. See Essential Guide to  Storing Gold In Switzerland here GOLDCORE MARKET UPDATE Today's AM fix was USD 1,228.25, EUR 967.58 and GBP 762.23 per ounce. Yesterday's AM fix was USD 1,230.50, EUR 970.58 and GBP 764.29 per ounce. Gold and silver both finished last week down at 0.53% and 0.52%. Spot gold closed at $1,226.38 yesterday and spot silver closed at $17.11 per ounce. A Bank Holiday was observed in Ireland on Monday. Investors and traders are focused on the U.S. Federal Open Market Committee (FOMC) regular meeting today and tomorrow. Wednesday afternoon's policy statement will be very closely scrutinized by the market place. Most believe the Fed will formally end its monthly bond-buying program, called QE(quantitative easing)3. A delay in any interest rate rise by the U.S. Fed could boost gold, a non-interest-bearing asset. In London, gold in Swiss storage traded up 0.2% at $1,227.86 an ounce by 1033 GMT, off an early low of $1,222.20 an ounce, its lowest since October 15th. U.S. gold futures for December delivery were down $1.40 an ounce at $1,227.90. In other precious metals, spot platinum was up 0.3% at $1,251.90 an ounce and spot palladium gained 1% to $785.25. Data reported yesterday showed China’s net gold imports from Hong Kong jumped to a six-month high in September as purchases ramped up ahead of its National Day holiday. Get Breaking News and Updates on the Gold Market Here

Omniscient Federal Reserve Captures The Capital Market, For Now. Gold Beckons. Posted: 28 Oct 2014 06:01 AM PDT gold.ie

FBI Raids Federal Contractor’s Home – Has the Government Identified the “Second Leaker”? Posted: 28 Oct 2014 06:00 AM PDT Anyone who has been following Edward Snowden's heroic whistle-blowing, and the reporting of Glenn Greenwald on the classified documents that prove egregious violations of the United States Constitution by the NSA, will also be aware of speculation that a "second leaker" had emerged earlier this year. It appears this person may have been identified by the FBI. […] The post FBI Raids Federal Contractor's Home – Has the Government Identified the "Second Leaker"? appeared first on Silver Doctors. Check out these similar articles: 27 Edward Snowden Quotes About U.S. Government Spying That Should Send A Chill Up Your Spine The Most Evil and Disturbing NSA Spy Practices To-Date Have Just Been Revealed Nowhere to Hide: FBI to Launch Facial Recognition Database With Over 50 Million Photos by 2015 !

Sibanye 2014 gold target could be difficult Posted: 28 Oct 2014 05:50 AM PDT Sibanye has announced record gold output in Q3 but its full year production target still looks an ambitious one.

Stratex’s new Turkish gold mine nears start-up Posted: 28 Oct 2014 05:32 AM PDT At last, Stratex's Altintepe gold project in Turkey is nearing construction completion with first gold production expected in Q1 2015.

Swiss ‘Yes’ and ‘No’ Gold Initiative Campaigns Compete at Launches in Bern Posted: 28 Oct 2014 05:00 AM PDT In what was an extraordinary first salvo in the head-to-head gold referendum battle that will take place in Switzerland over the next five weeks, yesterday witnessed the launch of both the "Save our Swiss Gold" (Gold Initiative)" campaign and the opposing "Cross-party Committee against the Gold Initiative" campaign in Switzerland's political capital, Bern.  With both […] The post Swiss 'Yes' and 'No' Gold Initiative Campaigns Compete at Launches in Bern appeared first on Silver Doctors. Check out these similar articles: 95.7% of Crimeans in Referendum Vote to join Russia, Change Currency to Ruble-Sanctions & Retaliation Next? Scottish Independence- In the Words of William Wallace: FREEDOM! India's Central Bank Will Sell Gold on the Market in Exchange for Gold at the Bank of England

The not so great debate – Is gold manipulated or not? Posted: 28 Oct 2014 02:58 AM PDT Holter expresses his disappointment with the quality of the debate on gold manipulation at the New Orleans Investment Conference.

New London gold benchmark to go live early 2015 Posted: 28 Oct 2014 02:28 AM PDT The new electronic gold price mechanism is expected to be in operation early in the first quarter of next year.

Australian Scholar Says Futures Markets Suppress Commodity Prices, Keep Producing Nations Poor Posted: 27 Oct 2014 11:27 PM PDT "Today the kiddies gather as the FOMC meeting gets underway" ¤ Yesterday In Gold & Silver The gold price got sold down a few dollars right at the 6 p.m. EDT open on Sunday evening in New York.  It rallied back to unchanged within a few hours, but all four attempts to rally above unchanged during the Monday trading session were met by a willing seller.  Then, once the 1:30 Comex close was in, the not-for-profit seller[s] sold gold down some more---and it closed on its absolute low tick of the day. The price activity looks more impressive/alarming on the chart because of the scale, but regardless of that, the price capping was evident, including the sell-off late in electronic trading.  Nothing free market about this. The high and low ticks weren't worth the effort of looking up. Gold closed yesterday at $1,225.10 spot, down $5.10 from Friday.  Net volume was fumes and vapours at only 76,000 contracts. And, as usual, silver also got sold off the moment trading opened on Sunday night as well.  the low tick came shortly after 1 p.m. Hong Kong time.  By ten minutes after the Comex open, the silver price was back to unchanged---and wasn't allowed to trade higher.  It, too, ran into a seller in electronic trading---and the price headed lower starting shortly after 2 p.m. EDT. Silver traded within a 20 cent price range all day and, like gold, the high and lows ticks weren't worth looking up, but it was obvious that 'da boyz' were out and about in silver as well. Silver finished the Monday trading session at $17.11 spot, down 10 cents from Friday's close.  Silver's net volume was very light, only 16,500 contracts.  I don't remember the last time that net silver volume was below 20,000 contracts, let alone a number this low. Platinum rallied a few dollars in the early going, before getting sold down a bit shortly after 9 a.m. Hong Kong time on their Monday morning.  It rallied a bit in late trading in New York---and closed up 7 bucks. Platinum also rallied a few dollars in early Far East trading---and then didn't do much until shortly before 2 p.m. in Zurich---and then it rallied a handful of dollars until the London p.m. gold fix.  From there it faded a few dollars into the 5:15 p.m. EDT close of electronic trading in New York.  Palladium finished up 5 dollars. The dollar index closed late on Friday afternoon in New York at 85.73---and by 10 a.m. Hong Kong time on their Monday morning it had fallen down to 85.48.  By the Comex open it was back to within a couple of basis points of unchanged, but that's as high as it got.  The 85.44 low tick came at 10:30 a.m. EDT---and it rallied a bit into the close, finishing the Monday session at 85.58---down 15 basis points from Friday. The gold stocks were down 2 percent by 10:00 a.m. EDT---and by 10:30 a.m. were almost back to unchanged.  But that was as close as they got, as the gold stocks chopped lower from there, until a kind soul sold the shares down another half percent in the last 15 minutes of trading, as the HUI closed down 1.26%.  Here's Nick's chart. The silver equities got sold down almost 3 percent at the open---and the 'rally' that followed didn't get far.  The shares continued to drift quietly lower---as Nick Laird's Silver Sentiment Index closed a bit off its low tick, down 2.53%. The CME Daily Delivery Report showed that 85 gold and 2 silver contracts were posted for delivery within the Comex-approved depositories on Wednesday.  Canada's Scotiabank issued all 85 contracts---and Barclays stopped 84 of them in its client account.  The link to yesterday's Issuers and Stoppers Report is here. The CME Preliminary Report for the Monday trading session showed that gold open interest dropped 157 contracts down to 129 contracts---minus the 85 shown above.  There's not much left, but what is left has to be delivery in the next three business days.  Silver's October o.i. was unchanged at 2 contracts---and those were posted for delivery tomorrow, so October deliveries are done in silver. There were no reported changes in GLD yesterday---and as of 5:44 p.m. EDT yesterday afternoon, there were no reported changes in SLV, either. The good folks over at the shortsqueeze.com Internet site updated the short  interest in both GLD and SLV very late last week---and here's what they had to report.  The short interest in SLV increased from 15.02 million shares/ounces to 16.64 million shares/ounces, or 10.85 percent for the reporting period ending on October 15. In GLD, the short interest rose from 1.469 million troy ounces to 1.555 million troy ounces, or 5.81 percent. These aren't really large moves---and I would guess that this shorting is of the 'plain vanilla' variety as traders use these two ETFs to bet on the continued decline in price of the physical metal themselves.  This sort of activity should never be allowed in a physical precious metal fund, as there's no metal being deposited to back up these shorted shares. There was another decent sales report from the U.S. Mint yesterday.  They sold 3,000 troy ounces of gold eagles---500 one-ounce 24K gold buffaloes---and 175,000 silver eagles. There was more big in/out movement in both gold and silver at the Comex-approved depositories on Friday.  In gold, there was 16,075 troy ounces reported received---and 79,357 troy ounces shipped out.  The link to that activity is here. In silver, there was 302,307 troy ounces received---and 1,260,853 troy ounces shipped out the door for parts unknown.  The link to that action is here. Manitoba reader U.M. sent around a Bloomberg story yesterday about China's Imports through Hong Kong for September.  They haven't been 'officially' released, but some of the major media outlets get it on the sly about ten days before the official announcement.  Here are the first two paragraphs... China’s gold imports from Hong Kong in September rose to the highest in five months as retailers and fabricators boosted purchases ahead of a holiday sales season. Net imports totaled 61.7 metric tons last month, the most since April, according to calculations by Bloomberg News based on data from the Hong Kong Census and Statistics Department today. That compares with 25.6 tons in August and 109.4 tons a year earlier. Exports to Hong Kong from China rose to 30.1 tons in September from 12.4 tons in August, the statistics department said in a separate statement. The link to to the rest of the story headlined "China Gold Imports Rise to Five-Month High Before Holiday Sales," filed from Beijing at 3:58 a.m. Denver time on Monday morning, is here. I have a very decent number of stories for you today---and I'll leave the final edit up to you. ¤ Critical Reads Christmas in October: Desperate Measures The desperation of Wal-Mart and most of the other mega-retail chains is no more clearly evident than in their relentlessly ridiculous acceleration of holiday marketing displays. I was flabbergasted when I saw Halloween candy, decorations and costumes in row after row BEFORE Labor Day at my local Wal-Mart. Selling Halloween candy two months before Halloween is idiotic and a sure sign of desperation. Retailers have run out of merchandising ideas. I wouldn’t even consider buying Halloween candy until the week before Halloween. Do Wal-Mart freaks of the week actually buy Halloween merchandise in September? So last week, still a full two weeks before Halloween, Wal-Mart had already converted their entire garden center into a Christmas wonderland of cheap mass produced Chinese cookie cutter Christmas decorations and lights that will blow out after three hours of use. They had also converted aisles at the front of the store to Christmas displays. Who the hell shops for Christmas crap in October? There is nothing like having cheap Chinese Christmas crap available for over two months to create a sense of urgency to buy. Wal-Mart and the rest of the mega-retailers have got nothing. They have no original merchandising ideas. They don’t even try anymore. They source low quality goods from China and compete solely on price. I can’t wait for the Easter candy to appear on Wal-Mart’s shelves in late December. This article, complete with some 'pithy prose', appeared on theburningplatform.com Internet site on Saturday---and I thank reader U.D. for passing it around on the weekend. Law Lets I.R.S. Seize Accounts on Suspicion, No Crime Required For almost 40 years, Carole Hinders has dished out Mexican specialties at her modest cash-only restaurant. For just as long, she deposited the earnings at a small bank branch a block away — until last year, when two tax agents knocked on her door and informed her that they had seized her checking account, almost $33,000. The Internal Revenue Service agents did not accuse Ms. Hinders of money laundering or cheating on her taxes — in fact, she has not been charged with any crime. Instead, the money was seized solely because she had deposited less than $10,000 at a time, which they viewed as an attempt to avoid triggering a required government report. “How can this happen?” Ms. Hinders said in a recent interview. “Who takes your money before they prove that you’ve done anything wrong with it?” The federal government does. This news item appeared on The New York Times website on Saturday---and it's the second offering in a row from reader U.D. The Day The POMO Died For those who follow the Fed's daily intervention in the stock market, today is a historic, if bittersweet day: this is the day when the Permanent Open Market Operations (or POMO) as a result of the QE3 program launched in December 2012, finally die (at least until they are reincarnated yet again). Today, at 11:00 am, the NY Fed's market desk will conclude its 933rd POMO since August 25 of 2005, when it will inject just about a $1 billion in the stock market in the form of a $0.85-$1.05 billion buyback of long-end bonds. And with that, Simon Potter's open market operations desk located on the 9th floor of Liberty 33, will be put on temporary hiatus. And with that, QE3 will end.  Or not. This Zero Hedge piece, with a couple of excellent charts, is worth your while---and I thank Manitoba reader U.M. for her first contribution to today's column. Negative interest rates threaten to destroy not just savers but IMF as well The International Monetary Fund has been forced to change the calculation of its most important interest rate after aggressive monetary easing around the world threatened to turn it negative. Late on Friday the IMF said it was introducing a floor of 0.05 per cent for the interest rate on Special Drawing Rights, its own form of international currency. The IMF's move shows how global financial conditions are now easier than they have ever been, more than five years after the end of the Great Recession, leading to the lowest interest rates in its 68-year history. This Financial Times news item appeared on their website last Friday---and it's posted in the clear in this GATA release.  The FT headline reads "IMF Introduces Floor on Interest Rates". Canadian household debt hits new high The ratio of credit market household debt to disposable income hit 163.4 per cent in the second quarter, up from 161.8 per cent in the previous period, the agency said. Credit market debt strips out trade accounts payable, or short-term credit — normally interest free in order to encourage commerce — that suppliers extend to small businesses, including home businesses. That number is also about where households in the United States and the United Kingdom stood before home values crashed. "Today’s report indicates that Canadian households are more financially vulnerable than had previously been thought," said TD economist Diana Petramala in a commentary. This story appeared on the cbc.ca Internet site back on October 15---and I thank reader 'h c' for sending it our way. E.U. commission warns U.K. about its rebate The UK has to pay its outstanding €2.1bn bill by 1 December or face monthly penalties, EU budget commissioner Jacek Dominik said Monday (27 October) in a press conference. Dominik said he was "surprised" to witness the "anger" of British Prime Minister David Cameron who last week vowed not to pay the bill at such short notice. The commissioner said British officials knew since 17 October, when all member states were presented with their corrected share of the EU budget, based on changes in their gross national income (GNI) compared to what they had projected. "What is extremely important is to remember that these figures are presented by member states based on their own statistics and approved by Eurostat," Dominik said. This news item, filed from Brussels, showed up on the euobserver.com Internet site at 6:07 p.m. Europe time yesterday evening---and it's courtesy of Roy Stephens. ECB fails 25 banks in health check but problems largely solved Roughly one in five of the euro zone's top lenders failed landmark health checks at the end of last year but most have since repaired their finances, the European Central Bank said on Sunday. Painting a brighter picture than had been expected, the ECB found the biggest problems in Italy, Cyprus and Greece but concluded that banks' capital holes had since chiefly been plugged, leaving only a modest €10 billion ($12.7 billion) to be raised. Italy faces the biggest challenge with nine of its banks falling short and two still needing to raise funds. The test, designed to mark a clean start before the ECB takes on supervision of the banks next month, said Monte dei Paschi had the largest capital hole to fill at €2.1 billion. Whistling past the graveyard again, I'm sure.  This Reuters news item, filed from Frankfurt, was posted on their Internet site at 4:18 p.m. EDT on Sunday---and I thank Orlando, Florida reader Dennis Mong for sharing it with us.  Here a story from The Telegraph on the same issue.  It's headlined "ECB: 25 banks not strong enough to withstand another crisis".  I thank Roy Stephens for this one. Three reasons why the ECB bank stress tests are sub par For lovers of contingent capital, asset quality reviews, and tier one capital ratio, it was like Christmas. As the clock struck 11 in London, the European Central Bank pushed out its modestly entitled “comprehensive assessment” of the financial health of the biggest banks in the Eurozone, which ran to 178 pages. At the same hour, the European Banking Authority did likewise, pushing out its 51-page report, not to mention hundreds of pages of addendums, additional tables and charts. For those who know their CRDs from their CRRs – that’s capital requirements directive and capital requirements regulation – the documents were a treasure trove of detailed analysis of the state of the continent’s banks as at December 31 last year. This in-depth report by The Telegraph's Executive Business Editor appeared on their website at 7:04 p.m. GMT on Sunday evening---and it's courtesy of reader 'h c'. The Scariest Number Revealed Today: $1.114 Trillion In Eurozone Bad Debt As we previously reported, the ECB's latest stress test was once again patently flawed from the start. Why? Because as we noted earlier, in its most draconian, "adverse" scenario, the ECB simply refused to contemplate the possibility of deflation. And here's why. Buried deep in the report, on page 75 of 178, is the following revelation which contains in it the scariest number presented to the public today. "Due to the fact that on average banks' internal definitions were less conservative than the simplified EBA approach, the application of the simplified approach led to an increase in NPE stock of €54.6 billion from €743.1 billion to €797.7 billion. The CFR and the projection of findings led to an additional increase in NPE of €81.3 billion, resulting in a total increase €135.9 billion to €879.1 billion of

China launches direct trade between yuan, Singapore dollar, bypassing U.S. dollar Posted: 27 Oct 2014 11:27 PM PDT China launches direct trade between yuan, Singapore dollar, bypassing U.S. dollar China on Monday announced direct trading between the renminbi and Singapore dollar beginning Tuesday, marking another step toward internationalizing the Chinese currency. The announcement by China Foreign Exchange Trading System extended the yuan's list of direct onshore trade to more major currencies, including the U.S. dollar, the euro, British sterling, Japanese yen, Australian dollar, New Zealand dollar, Malaysian ringgit, and Russian ruble. The move aims to boost bilateral trade and investment, facilitate the use of the two currencies in trade and investment settlement, and reduce exchange costs for market players, the foreign exchange trading system said in a statement. The move is also expected to help Singapore in its bid to become a renminbi offshore center. This news item appeared on the cntv.cn Internet site yesterday---and I found it over at the gata.org Internet site.

Greenspan says he's not aware of gold price suppression through central bank leasing Posted: 27 Oct 2014 11:27 PM PDT Greenspan says he's not aware of gold price suppression through central bank leasing The opportunity to question former Federal Reserve Chairman Alan Greenspan about central bank intervention in the gold market was spectacularly fumbled today during Greenspan's appearance at the New Orleans Investment Conference. Interviewing Greenspan, conference moderator Gary Alexander asked if the former Fed chairman was aware of efforts by central banks to suppress the price of gold by leasing the metal to bullion banks, which would sell the metal into the market. "I'm not aware of anything" like that, Greenspan replied, though of course central bank gold leasing to suppress gold's price was famously a subject of Greenspan's testimony to Congress in July 1998. During a break in the interview, your secretary/treasurer urged Alexander to follow up with a question about that testimony -- and he did, but only to misquote it. Alexander asked Greenspan if he remembered testifying to Congress that "the Fed," not central banks generally, stood ready to buy gold, not lease it, to influence the price. Greenspan replied that it was "not conceivable that I would have said that" -- and of course he never did. This must read GATA release was posted on their website on Saturday afternoon CDT.

Gold price suppression documents cited in debate at New Orleans conference Posted: 27 Oct 2014 11:27 PM PDT Gold price suppression documents cited in debate at New Orleans conference Documents that were included in a PowerPoint presentation by your secretary/treasurer during his debate with Doug Casey of Casey Research on Thursday, October 23, at the New Orleans Investment Conference -- a debate whose proposition was "Gold Manipulation: Real or Imagined?," with your secretary/treasurer arguing that it is real -- are cited below, though, because of lack of time, not all of them were reviewed during the debate. There are a lot of links in this post that I found on the gata.org Internet site yesterday.  So, if you're going to wade through them, I'd start by topping up your coffee if I were you.

Bill Holter analyzes gold manipulation debate at New Orleans conference Posted: 27 Oct 2014 11:27 PM PDT Bill Holter analyzes gold manipulation debate at New Orleans conference Market analyst Bill Holter, who writes for the Miles Franklin coin and bullion shop in Minnesota and GATA Chairman Bill Murphy's LeMetropoleCafe.com, analyzes the gold manipulation debate between your secretary/treasurer and Doug Casey of Casey Research at the New Orleans Investment Conference last Thursday. Bill's commentary was posted on the GATA website yesterday.

Grant Williams: This Little [Swiss] Piggy Bent the Market Posted: 27 Oct 2014 11:27 PM PDT Grant Williams: This Little [Swiss] Piggy Bent the Market In April 1999, the revision of the Federal Constitution was approved (how else than through a referendum?), and it came into effect on January 1, 2000. Oh... sorry... I almost forgot to mention that in September 1999 — after the revision had been adopted but before it had been officially enacted — the Swiss National Bank became one of the signatories to the Washington Agreement on Gold Sales, meaning that all that lovely Swiss gold which had been sitting there, steadily accumulating and making the Swiss franc one of the last remaining “hard” currencies on the planet, was eligible to be sold. A single line in the Swiss National Bank’s own history of monetary policy identifies the beginning of the demise of one of the world’s great currencies: On 2 May, the SNB begins selling gold holdings no longer required for monetary policy purposes. And there you have it. “No longer required for monetary policy purposes.” That’s what happens when you finally embrace the beauty of fiat. Not only do you get to sell gold, you get to call the proceeds of those sales “profits.”  The absurdity borders on breathtaking. I spent a good deal of time talking to Grant at the Casey Conference in San Antonio last month---and we got along fabulously well.  This long treatise on the Swiss Gold Referendum falls into the absolute must read category, because it spells out in no uncertain terms what's at stake.

Swiss gold initiative advocates professionalize their campaign and need your help Posted: 27 Oct 2014 11:27 PM PDT Swiss gold initiative advocates professionalize their campaign and need your help The campaign in support of the gold referendum initiative in Switzerland on November 30 has been professionalized, erecting a comprehensive Internet site which, while in German, can be automatically translated into English if visited via a Google Chrome Internet browser. Donations in support of the campaign are being collected at the Gold Switzerland Internet site, operated by Matterhorn Asset Management, whose managing partner, Egon von Greyerz, is a primary proponent of the initiative. The referendum proposal would bar the Swiss National Bank from selling the country's gold reserves; require the bank to repatriate Swiss gold reserves from foreign vaults and vault all the national gold reserves in Switzerland itself; and hold at least 20 percent of Switzerland's foreign exchange reserves in gold. Essentially the referendum proposal is a democratic revolt against unaccountable central banking and currency market rigging. This commentary appeared on the GATA website yesterday as well---and if you're considering donating, this is a must read.

Swiss gold exports to India cross Rs 70,000 crore; banks turn wary after black money probe Posted: 27 Oct 2014 11:27 PM PDT Swiss gold exports to India cross Rs 70,000 crore; banks turn wary after black money probe As banks in Switzerland come under greater black money scrutiny, the quantum of gold having left Swiss shores for India so far this year has reached a record high level of over 11 billion Swiss francs (about Rs 70,000 crore). The gold exports from Switzerland to India stood at over 2.2 billion Swiss francs (about Rs 15,000 crore) in September alone, which is double the figure for the previous month, shows latest data released by Swiss Customs Administration. While industry watchers attribute the surge during September partly to increased demand for the yellow metal ahead of Diwali and other festivals in India, the sudden spike is also being seen suspiciously in the backdrop of gold being used for 'layering' purposes to move funds from Swiss banks amid growing scrutiny for suspected black money. According to banking industry sources, banks operating in Switzerland, including those headquartered in the Alpine nation and the Swiss units of other European banks, have turned wary about dealing with their Indian clients in the wake of a growing scrutiny of such accounts. This gold-related news item showed up on The Economic Times of India website at 2:30 p.m. IST on their Sunday afternoon---and it's courtesy of reader U.M.  Reader U.M. sent another story about this that appeared on thehindu.com Internet site just after midnight IST on their Monday morning.  It's got a great chart embedded---and it's headlined "Swiss gold exports to India soar; banks wary".

Black-gold rush? Not really Posted: 27 Oct 2014 11:27 PM PDT Black-gold rush? Not really The doubling of India’s gold imports from Switzerland in September over the previous month has led to speculation that this was black money finding its way back into India. But a close look at the numbers suggests otherwise.   India imported gold worth 2.2 billion Swiss francs in September, up from 1.1 billion Swiss francs in August, according to data released by the Swiss Customs Administration. But India is not the only country to witness such a surge in imports of the yellow metal. Total gold exports from Switzerland have doubled from 3 billion Swiss francs in August to 6.4 billion Swiss francs in September. Other Asian countries such as China, Hong Kong, Thailand and Singapore have also upped their share substantially.  For instance, in August, Hong Kong imported about 100 million Swiss francs worth of gold, which shot up to around 900 million Swiss francs in September. Thailand and China, too, witnessed a similar surge. This article put in an appearance on thehindubusinessline.com Internet site yesterday sometime---and it's definitely worth reading.  It's another offering from reader U.M., for which I thank her.

As gold smuggling rises, India's tax office calls for lower import duty Posted: 27 Oct 2014 11:27 PM PDT As gold smuggling rises, India's tax office calls for lower import duty Seizures of smuggled gold by the directorate of revenue intelligence has risen by an unprecedented 330 per cent during the April-September period as compared to last year, prompting the directorate to call on the finance ministry to bring down the import duty on the yellow metal and make smuggling less lucrative. This development comes even as gold imports have jumped by around 450 per cent year-on-year in September touching $3.75 billion, which calls into question the effectiveness of the high import duty of 10 per cent. Experts say that import duty has failed to as a deterrent and demand for gold has only gone up. "There were 2,150 seizures of gold made by the DRI across the country worth over Rs 600 crore in the last six months. This is huge when compared to 500 seizures worth Rs 150 crore made last year during the same period," a government official told The Indian Express on the condition of anonymity. This gold-related story showed up on the indianexpress.com Internet site at 1:16 a.m. IST on their Monday morning---and I found it embedded in a GATA release.

Australian scholar says futures markets suppress commodity prices, keep producing nations poor Posted: 27 Oct 2014 11:27 PM PDT Australian scholar says futures markets suppress commodity prices, keep producing nations poor Thirteen years ago the British economist Peter Warburton wrote that Western central banks were using the futures and derivatives markets and intermediary investment banks to control commodity prices giving rise to the adage: "The futures markets aren't manipulated. The futures markets are the manipulation." Yesterday MineWeb's Lawrence Williams interviewed a mathematician and former stockbroker who holds a doctorate in math from the University of Melbourne, Australia, Fraser Murrell and who emphatically concurs, describing the futures markets as the mechanism by which the financially sophisticated West loots the developing world, which is dependent for its livelihood on the production of natural resources. The Western countries sustaining these futures markets, Murrell argues, thereby perpetuate poverty in the developing countries. Of course this has been GATA's complaint for many years, but nobody at GATA has a Ph.D., just tinfoil hats. As Chris Powell just said, GATA has been at this since 1999---but the real voice in the wilderness is silver analyst Ted Butler, as his 30th anniversary of pounding at the gates on this issue is fast approaching.  Murrell's work is basically a rehash of what Butler and GATA and Peter Warburton have been talking about all these years, but without attribution, of course.  It falls into the must read category and it, plus a few other links are embedded in this GATA release.  The first reader through the door with this mineweb.com article was Manitoba reader U.M.---and it's her final offering in today's column, for which I thank her.

Giant gold nugget found in California finds secret buyer Posted: 27 Oct 2014 11:27 PM PDT Giant gold nugget found in California finds secret buyer One of the largest gold nuggets in modern times pulled from Northern California's Gold Country has sold to a secret buyer. The new owner of the so-called Butte Nugget and its exact price will both remain mysteries at the buyer's request, the San Francisco Chronicle reported Saturday. But Don Kagin, the Tiburon-based coin dealer who brokered the deal, said that a "prominent Bay Area collector" paid about $400,000 for the nugget weighing 6.07 pounds. That wasn't far off from the asking price, he said. "Let's just say it's a win-win for everybody, Kagin said, adding that the nugget went up for sale Thursday with the deal finalized on Friday. This is, of course, a follow-up story now that the nugget has a happy seller---and probably an equally happy buyer.  This AP item was picked up by the foxnews.com Internet site on Sunday sometime---and I thank reader M.A. for today's last story.

Does Gold Always Respond to Real Interest Rates? Posted: 27 Oct 2014 11:18 PM PDT SunshineProfits

Emaar chairman welcomes ‘cooling’ Dubai real estate prices but still goes ahead with massive new project launch Posted: 27 Oct 2014 11:17 PM PDT Mohamed Alabbar, chairman of Emaar Properties yesterday told Reuters that he welcomed the ‘cooling’ of the Dubai real estate market ‘because it keeps prices at a reasonable level’…’I think that is healthy.’ And yet still he went ahead with the launch of his massive new Dubai Creek Harbour development, a joint venture between Emaar and Dubai Holding, the Ruler of Dubai Sheikh Mohammed bin Rashid Al Maktoum’s private investment vehicle. Why should anybody buy an off-plan apartment right now if local house prices are ‘cooling’? It is an obvious question that nobody at the press conference seems to have asked. Usually off-plan buyers take on the risk of advanced purchase at a discount to the completed price, hoping that prices will also rise during the construction phase. No prices yet True Mr. Alabbar did not reveal the exact pricing structure that will apply to the Dubai Creek Residences, the apartment towers of the first phase of the scheme that will be announced shortly. You can register interest from the advertising banners showing on this website. It’s no secret that globally real estate markets are starting to feel considerable headwinds. High-end London property is being hit by the prospect of a mansion tax. House prices are falling in most Chinese cities. Even the US housing recovery has stalled threatening a triple dip. In Dubai the 30 per cent slump in oil prices is not good news for new orders for the trading community, and the high dollar is not good for tourism or inward investment, particularly from Russia where the ruble has collapsed. The prospect of higher interest rates is bad for all asset markets, including real estate. Dubai 2020 However, who knows what the world will look like when Emaar starts to deliver the Dubai Creek Harbour, presumably in three to four years time? The Dubai 2020 Expo will then be clearly in sight, and the world economy could be back in a growth phase, finally shrugging off its weak growth since the global financial crisis. Emaar Properties built and successfully marketed the Dubai Downtown that includes the world’s tallest building the Burj Khalifa right through the GFC and did not look seriously financially stretched at any point. If this is not a sign of a very well managed company that knows what it is doing then the moon’s a cheese. Still why would you buy now in the Dubai Creek Harbour and not wait for prices to fall first?

Managers Increasing Bets on Gold But Price Action Looks Bearish Posted: 27 Oct 2014 10:17 PM PDT Chart 4: Managers increasing bets on Gold but the price looks bearish!   Source: Short Side of Long   Finally, we turn out attention to the precious metals sector. I believe that the long term secular bull market in this sector is not yet finished, especially the way central banks continue to act with currency devaluations. However, we need to respect the price action right now, which shows that we are currently in a cyclical bear market that was way overdue after Gold recorded 11 annual gains in the row. In my view, as I have written many times on the blog, Gold will be breaking down into a final low soon enough. The up-and-coming selling pressure will most likely produce a proper panic which we failed to see in middle of 2013. The shake out should get rid of majority of perma-bulls, which refuse to give up on their optimistic Gold views. This is precisely why I have fully hedged my Silver holdings in early July (above $21), as well as executed short positions on Gold (above $1310). While Silver has recently broken below its important support level at $19, Gold continues to hang in there (for now). However, I think this is soon about to change and Gold will follow Silver downward by breaking below $1,185. Hedge funds have recently been adding to Gold once again, but the price pattern remains quite bearish in my opinion.   Chart 5: Positioning in the Silver market is now becoming very negative   Source: Short Side of Long The post Managers Increasing Bets on Gold But Price Action Looks Bearish appeared first on The Daily Gold.

To Protect and Perve – California Cops Share Nude Photos Stolen from Citizens’ Cellphones Posted: 27 Oct 2014 09:10 PM PDT  “The California Highway Patrol officer accused of stealing nude photos from a DUI suspect's phone told investigators that he and his fellow officers have been trading such images for years, in a practice that stretches from its Los Angeles office to his own Dublin station.” On Harrington's phone, Holcombe located two photos of that DUI suspect […] The post To Protect and Perve – California Cops Share Nude Photos Stolen from Citizens' Cellphones appeared first on Silver Doctors. Check out these similar articles: Can Police Search Your Cell Phone Without a Warrant? The Supreme Court is About to Decide Nowhere to Hide: FBI to Launch Facial Recognition Database With Over 50 Million Photos by 2015 ! Zombification of America: The Collapse Will Be Sudden!

Harvey Organ’s Gold & Silver Update: Options Expiration! Posted: 27 Oct 2014 05:52 PM PDT Tomorrow is options expiry on the comex and on Friday we have options on the OTC contracts for both silver and gold.  Thus expect both of our precious metals to be under the fire as the crooks use non backed paper and gold paper contracts to suppress the price. Let's head immediately to see the […] The post Harvey Organ’s Gold & Silver Update: Options Expiration! appeared first on Silver Doctors. Check out these similar articles: Harvey Organ’s Weekend Update: 4.5 Tons of Gold Removed from GLD, Headed to Shanghai! Harvey Organ: LBMA to Stop Publishing GOFO Rates! Harvey Organ’s Gold & Silver Update: Something Has Got to Give!

A Tale of Two Cities Posted: 27 Oct 2014 03:42 PM PDT This is a work of fiction with a few similarities to the reality we all know and trust, or … the reality that we think we know. City A in a Paper World A financial genius had a plan! He and his offspring implemented the plan over several hundred years. Charter a bank. The government authorizes this bank to create and print paper money, backed by gold or silver. (It took surprisingly little in bribes to convince the government leaders that this Bank was a wonderful idea.) The Bank accepts gold, silver and other valuables as deposits into its vaults, and then lends paper money, backed by those gold and silver deposits, to governments, businesses, politicians, and individuals. The debtors borrow paper money but are required to repay in gold. The Bank owners pay themselves huge salaries, become trusted confidents of government leaders, and pillars of the society. Wealth is transferred to the banker class. The Bank owners also "encourage" politicians to create wars and other costly programs, and to borrow from the Bank to pay for their adventures and excess spending. (Surprisingly little money is required in payoffs from the Bank to the politicians.) Debts increase, governments buy votes with promises, and the Bank becomes increasingly important in global affairs. The Bank also agrees to store gold from many other countries for "safe keeping." The gold is never audited. A few people wonder why it is never audited. So many debts are incurred by governments, businesses, and individuals that the money is transformed into paper, not gold, nor is it redeemable in gold. Of course, it is still "as good as gold." More promises, more wars, more debts! The money is no longer backed by gold. Prices and total debt rise even more rapidly. The money is reissued as paper currency with no intrinsic value. More paper currency is created every day, and prices for food and energy rise to 10 times, perhaps 100 times, what they were a few decades ago. The Bank continues to create currency and collects interest on all the outstanding debts. Bank owners declare substantial bonuses for themselves and buy gold, knowing the true value of the paper they have been distributing to the populace. A few other people notice the massive creation of currency and the price of gold moves higher. This worries the Bank. A new policy is implemented – the gold in the Bank's vaults is gradually sold and of course the sale is called something else, like a swap, or a lease, or a scam, or deep storage. This slows the price rise of gold. The bank owners and other elites continue to stockpile gold to protect their own private wealth. Currencies become more digitalized and are easier to create, control and manipulate. Derivatives are created. They provide additional leverage to control prices and increase wealth for the banker class. Greed intensifies and is richly rewarded. However, the risk of another market melt-down of paper assets increases daily. Denials and reassurances are issued by important people. Eventually the system of digital and paper currencies and debt is so bloated that it exceeds the wildest delusions in a typical Ponzi scheme. A reset must occur. An excuse is required. A scapegoat is desperately needed. Call forth a diversion! The Bank owners contemplate many possible diversions – an epidemic, a nuclear attack, another ground war, a cyber-attack that crashes financial systems, an EMP, a huge scandal involving an increasingly useless national politician, a massive power failure, a 1,000 year drought, food riots, an earthquake, and more. The "reset" (some called it a crash, Armageddon, the apocalypse, or paying the piper) resulted in the middle and poorer classes losing most of their savings through inflation, their standard of living declined, and a few riots occurred. Most of the wealthy insiders owned gold before the reset that crushed the purchasing power of paper and digital currencies while the purchasing power of gold and silver rocketed higher. It had happened before but few were aware until too late. More controls over transportation, food, energy, employment, currency transfers, and medical care were instituted to protect the people from the currently designated critically important threats. Few lived "happily ever after." Repeat: This story is fiction. City B in a Gold World Money is either gold or silver. Currency units are backed by gold and anyone is welcome to exchange digital or paper currency units for physical gold. Few bother to do so. The gold reserves that back all the currency in circulation are stored in massive vaults, and are audited each year. Governments do not go into debt for longer than three months. All government debts are paid at the end of the fiscal year. Honest accounting is used and financial information is reported to the media. If government overspends revenues in a year, politicians lose all retirement benefits. Without the economic resistance from high taxes, inflation, and a huge government, the economy and most residents prosper. If politicians want a war, they explain how the war will be financed, the supposed benefits of the war, where the money will come from, and the legislature votes. Victory and defeat are defined and measurable. If the country is defeated in the war, the politicians who instigated the war are executed by a military firing squad while all other politicians who voted for the war are cast out of office with no pensions. Most politicians and citizens admit the system is deeply flawed but history has shown that other choices are often worse. Some people lived "happily ever after." Repeat: This is a work of fiction. Summary Our fictional City A might resemble some major cities in the western hemisphere. It is inhabited by regular people as well as politicians, rats, and central bankers. Currency units are digital, purchase less every year, and are created in large quantities every day. The political and financial elite control most of the government and the economy for their own benefit. Economic statistics and financial TV continually assure the people that "it's all good." The crashes of 2000, 2006, and 2008 caused many people to question the usual narrative. City B does not exist. Currency units are backed and redeemable with gold, the government runs a balanced budget, and politicians are not allowed to use tele-prompters. A reset seems inevitable and possibly imminent. As they say, the market always does what it is supposed to, but not when we expect it. The next crash could be rather severe, unless financial TV is right this time and it truly is all good………   This bit of fiction has been brought to you from somewhere near City A, where I encourage you to read: Senator Tom Coburn, M.D. 2014 Wastebook James Rickards In the Year 2024 SRSrocco Report China 10,000 tons of Gold Lance Roberts To QE or Not to QE   Gary Christenson | The Deviant Investor | GEChristenson

Peak gold is here to stay Posted: 27 Oct 2014 01:30 PM PDT The wave of zero-interest liquidity washing over the financial world could result in a short-term gold bottom of $1,000 per ounce, reports Oliver Gross of Der Rohstoff-Anleger (The Resource Investor).

A “panic sell-off” could be coming in gold and silver. Here’s what resource investors should know. Posted: 27 Oct 2014 12:48 PM PDT From The Gold Report:  The wave of zero-interest liquidity washing over the financial world could result in a short-term gold bottom of $1,000 per ounce, reports Oliver Gross of Der Rohstoff-Anleger (The Resource Investor). The good news is that Peak Gold is here to stay, which means that midtier producers will soon be desperate to buy low-cost, high-quality deposits. In this interview with The Gold Report, Gross argues that this could be the opportunity of a lifetime for contrarian investors, and suggests a half-dozen best bets to be taken out. The Gold Report:Earlier this month, the broader equities markets suffered huge losses as gold made significant gains. Then, after the broader markets recovered, gold fell. Is there now an inverse relationship between the health of the broader markets and the price of gold? Oliver Gross: This kind of inverse relationship between gold and the broader equity markets isn’t really new. It has been observed since fall 2011, when the price of gold peaked. Since then, gold has fallen more than 35%, while the S&P 500 has risen 70%. The current situation resembles the early 2000s, when the broader equity markets were in the final phase of the dot-com bubble, while gold traded as low as $340 per ounce ($340/oz). Then, of course, the broader equities markets collapsed, while gold rose above $1,900/oz. TGR: Some analysts believe that the broader equities market is dangerously overvalued. To give one example, Netflix was recently trading at 144 times earnings. What do you think? OG: After a 5+-year bull run leading to new all-time highs in the broader equity markets, there are many signs of bubble formations in the Internet, high-tech and biotechnology sectors. Again, this feels like the early 2000s. The extremely high price-to-earnings ratios in stocks such as Netflix indicate investor euphoria and huge amounts of speculative capital provided by the central banks. It is shocking to compare valuations in the broader sectors of the equity markets to valuations in the precious metals space. Alibaba (BABA:NYSE) has a market valuation of more than $220 billion ($220B). This company, with sales of less than $10B, is now worth far more than the 10 largest gold and silver producers put together. We see similar speculative booms with Facebook, Amazon, Tesla, and Apple. TGR: How should investors react to this bubble? OG: Speaking for myself, as one who follows an anticyclical strategy, I like to invest when there is blood in the streets, and that is certainly what is happening with precious metal equities. Today, investors can buy gold and silver stocks at decade-low valuations and historically low bullion-to-equity valuations. Nobody cares about precious metals equities today, but when the bubble in the broader markets bursts, we will see a massive shift in market sentiment and in the behavior of investors. That said, investors must stick to best-in-class stories and must demonstrate constancy and patience. TGR: Could the collapse of the bubble lead to a crisis similar to that which occurred in 2007–2008? OG: Yes, the possibility of another Lehman Brothers event is there. When the largest and most influential players in the financial industry want to exit this market, we could see a 2008-like selloff very, very fast. I also think that it is only a matter of time before a further big player in our financial industry will go the same way as Lehman. TGR: Geopolitical turmoil today is greater now than it has been for quite some time: Gaza, ISIS, Ukraine and now Ebola. Traditionally, this would have resulted in a significantly higher gold price, which has not happened. Is what we have seen this year an anomaly, or is the price of gold no longer affected by external events? OG: That is a question not easily answered. Traditionally, gold has been regarded as the ultimate crisis protection, so geopolitical turmoil usually resulted in a higher gold price. What has changed is the incredible power of the central banks. They have changed the rules of the game. This is a major financial experiment with no historical precedent. The combination of unlimited liquidity, historically low interest rates and historically high debt levels has, for the moment, mitigated geopolitical risk factors and guaranteed faith in the U.S. dollar as the world’s reserve currency. Gold has fought incredible odds since fall 2011. It is the most hated asset class, the official enemy of the U.S. dollar reserve and our global monetary system. And so the biggest financial institutions have no interest in higher gold prices. They still control the gold futures and the paper-gold market, so it is easy for them to attack the gold price. But this can’t continue forever, and it’s just a matter of time before all the money created since 2008 will no longer simply inflate asset bubbles. Inflation will return, and gold will again respond positively to external crises. TGR: Where do you see gold and silver prices going in the short term? OG: I see a 50% chance of a final panic selloff across the gold and silver space. In this scenario, gold could fall to $1,000/oz, and silver could fall as low as $12/oz. TGR: Wouldn’t such prices lead to widespread curtailment of bullion production? OG: The current all-in costs of gold producers are now above $1,150/oz, even after massive cost reductions and a focus on higher-grade mining. Such expedients can have only a temporary effect. At a gold price of $1,000/oz, there will be many shutdowns. We need a gold price of at least $1,400/oz to support sustainable production, and that number will rise, as early as 2015 or 2016. We have reached Peak Gold, and it’s here to stay. The highest-grade and most-profitable deposits are gone. The bear market in the gold mining space has been so long and painful that the major producers have their backs to the wall. Barrick Gold Corp. (ABX:TSX; ABX:NYSE), Newmont Mining Corp. (NEM:NYSE), Goldcorp Inc. (G:TSX; GG:NYSE), AngloGold Ashanti Ltd. (AU:NYSE; ANG:JSE; AGG:ASX; AGD:LSE) and Kinross Gold Corp. (K:TSX; KGC:NYSE) have dramatically cut exploration and development budgets. Most discoveries of the last five years need a far higher gold price to be mined. In addition, many recent discoveries are located in jurisdictions with high country or environmental risks and lack infrastructure, resulting in multibillion-dollar capital expenditures (capexes). TGR: As a result of the factors you’ve mentioned, can we now expect a big increase in mergers and acquisitions (M&As)? OG: Not so much among the majors. Most of them have weak balance sheets and too many in-house projects to risk expensive and dilutive takeovers. I see only Goldcorp and Newmont as potential bidders among the majors. Goldcorp lost the Osisko takeover battle to Yamana Gold Inc. (YRI:TSX; AUY:NYSE; YAU:LSE) and Agnico Eagle Mines Ltd. (AEM:TSX; AEM:NYSE), while Newmont refused to merge its Nevada operations with Barrick’s. So Goldcorp and Newmont might attempt different takeovers when the time is right. TGR: What are the attributes possessed by those companies likely to be taken out? OG: When the influential players in the gold mining space think that the gold price bottom is in, and a new bull market is likely, M&A interest will grow big time. Such a consolidation could create a perfect storm for the strongest junior gold producers and quality gold developers with robust, competitive projects. Specifically, takeover targets will have financeable mine capexes with a good relation to the discounted net present value (NPV) of their projects. They will be profitable with gold at $1,100/oz, and at least break even at $1,000/oz. Their projects will be in pro-mining jurisdictions with stable laws, the sustainable support of regional and local communities, and solid infrastructure. TGR: What about management? OG: Takeover targets must have managements with strong track records, or, failing that, existing investment from the larger precious metals companies or previously successful strategic investors. And, of course, healthy financials. There are many evaluations to be made, and there aren’t any “no brainers” here. Due diligence and continuous research are critical. When you think you haven’t spotted any weaknesses, you’ve likely missed something. TGR: Which gold junior or mid-cap gold producer is your current favorite? OG: I like B2Gold Corp. (BTG:NYSE; BTO:TSX; B2G:NSX) at this price level for many reasons. First, I like its takeover of Papillion Resources and its Fekola project in Mali. Fekola will be a very large and very profitable gold mine. Second, I like its CEO Clive Johnson, whose team has built one of the fastest-growing gold producers in one of the toughest environments ever. Third, B2Gold has three operating mines: two in Nicaragua, which are running smoothly, and one in the Philippines. Fourth, it has a diversified portfolio of attractive gold projects with massive growth potential. B2Gold has proved it can succeed in difficult regions and, despite the collapse of the gold price, has maintained strong cash flow and a strong balance sheet. Its gold production has grown from 158,000 oz (158 Koz) in 2012 to about 400 Koz this year, with operating costs of around $680/oz and all-in sustaining costs of $1,025–1,125/oz. After its Otjikoto Mine in Namibia ramps up, production should hit 580 Koz in 2016, and after Fekola ramps up, production could reach an amazing 900 Koz in 2017. B2Gold is on the verge of becoming a major gold producer and a lucrative takeover target. TGR: As you mentioned, B2Gold has two operating mines in Nicaragua. Can we expect further success stories from that country? OG: Nicaragua has huge potential. Gold is already its most important export, and the government intends to be a growing producer. One company I follow is Calibre Mining Corp. (CXB:TSX.V), which has generated much interest this year after good assay results, and because 11% was bought by the legendary Pierre Lassonde, founder of Franco-Nevada Corp. (FNV:TSX; FNV:NYSE). I like Calibre’s business model: attracting partners to spend exploration capital. It has optioned a part of its large project portfolio to IAMGOLD Corp. (IMG:TSX; IAG:NYSE), which will invest $5 million ($5M) over three years, and has formed a joint venture with B2Gold to explore a huge land package with many promising gold targets. Calibre has the potential to found an entire gold camp. TGR: Which companies do you like in South America? OG: I closely track Columbus Gold Corp. (CGT:TSX.V; CBGDF:OTCQX) and its 4.3 Moz Paul Isnard project in French Guiana. This is another company with strong investors. A prominent private U.S. investor bought 9.9% of the company in September, and the major Russian gold producer Nordgold N.V. (NORD:LSE), which has the option to buy 50.01% of Paul Isnard, bought 9% of Columbus in October. TGR: Why did Nordgold make a direct investment in Columbus? OG: I expect to protect itself from a lowball takeover offer from another gold producer, as Columbus is indeed a very attractive takeover target. I met Columbus’ CEO Robert Giustra in Paris this year. He is committed to dramatic and dynamic expansion. The company will finalize an extensive drilling program this quarter, which should lead to an increase in the quantity and quality of identified gold resources. A preliminary economic assessment (PEA) is scheduled for Q1/15. In addition, Columbus will undertake a significant drilling program at its Eastside gold and silver project in Nevada. This could become a company-maker in its own right. TGR: You have a particular interest in Colombia. Which companies do you like there? OG: I like two junior gold companies in the Antioquia Department: Red Eagle Mining Corp. (RD:TSX.V) and Continental Gold Ltd. (CNL:TSX; CGOOF:OTCQX). Red Eagle’s key deposit, San Ramon at its large Santa Rosa gold project, has amazing economics. Its September feasibility study outlines average production of 50 Koz gold per year over eight years with operating cash costs of only $596/oz and all-in costs of $763/oz. Positive economics include cash flow of $132M, an NPV of $104M and an internal rate of return of 53%. The capex is only $75M, and the payback period is just 1.3 years. Red Eagle needs one more permit to build one of the world’s most profitable gold mines. What is really important to understand here is that this smaller-scale underground operation is only a starter point, and Red Eagle has clear plans to significantly expand gold production in the future. I visited San Ramon this year, and it exceeded my already high expectations. It has great infrastructure and exploration potential, great management and project team, and almost peerless community relations. I completely trust in the skills and visions of Red Eagle’s CEO, Ian Slater, as well. TGR: What impresses you about Continental? OG: Its Buriticá gold project is already world-class, and could be a cornerstone asset for any large gold producer. The deposit has grown from 3 Moz in 2011 to 7 Moz in 2014, with grades higher than 9 grams per ton (9 g/t). The company intends to begin underground production in 2017, with the goal of outlining 10+ Moz. Its next big milestone will be its PEA, which should be completed by the end of this quarter. The permitting process in Colombia is challenging, but it helps that Continental’s largest shareholder is one of Colombia’s leading mining entrepreneurs. And the company has more than $80M in cash. TGR: What else do you like in South America? OG: My favorite gold story in Brazil is Brazil Resources Inc. (BRI:TSX.V; BRIZF:OTCQX). TGR: Didn’t its share price take a huge hit this month? OG: The last weeks have been very tough, yes, but the company will weather the storm. I am greatly impressed by Brazil Resources’ founding chairman, Amir Adnani. Both prudent and vigorous, he has acquired a large project portfolio with a multimillion-ounce gold resource. At its current valuation, Brazil Resources offers excellent leverage on the gold price, and it is backed by first-class, financially sound investors. TGR: Which Nevada gold companies are your favorites? OG: In Nevada, I like Gold Standard Ventures Corp. (GSV:TSX.V; GSV:NYSE) and its Railroad-Pinion gold project in Nevada. The company has successfully consolidated a large land package and proved close to 1.5 Moz in very lucrative, exposed oxide deposits. This deposit is open in multiple directions and is located in an active gold mining camp next to Newmont. This should be a straightforward heap-leach gold mine with low capital intensity, and represents another takeover target. A company both in Nevada and Turkey is Pilot Gold Inc. (PLG:TSX). Its Kinsley Mountain project in Nevada contains a high-grade and promising discovery. In Turkey, the company is successfully exploring and developing the TV Tower project with Teck Resources Ltd. (TCK:TSX; TCK:NYSE). TV Tower could become an entire mining district, containing several gold, copper and silver deposits. Pilot’s managers and geologists are some of the best in the industry, and both Teck and Newmont are strategic shareholders. TGR: And which gold companies do you fancy elsewhere in the world? OG: In Burkina Faso, there’s True Gold Mining Inc. (TGM:TSX.V), which is led by the same people who masterminded Pilot Gold. Founding Chairman Mark O’Dea plans to grow True Gold into a midtier gold producer. Its flagship project, Karma in Burkina Faso, already contains a multimillion-ounce gold resource and still has outstanding exploration potential. Investors have to love True Gold’s fundamentals. It belongs to a small and very exclusive circle of gold developers, those that own a fully permitted and fully financed high-margin gold project. Construction has begun, and gold should be produced by the end of 2015. True Gold will be one of the world’s profitable gold producers. Mark O’Dea is also a director of Pure Gold Mining Inc. (PGM:TSX.V), which has consolidated a large land package in Ontario’s Red Lake District, the highest-grade gold mining district in the world. Pure Gold now controls 100% of the Madsen gold project, which contains a high-grade gold mine with historic production of 2 Moz. I see the potential to discover a high-grade, multimillion-ounce resource in the next few years. This could lead to a takeover by a larger gold producer, such as Goldcorp, the major Red Lake player. My favorite gold play in Europe is Dalradian Resources Inc. (DNA:TSX), which owns the Curraghinalt gold project in Northern Ireland. It has 3.5 Moz already at 10+ g/t, with great exploration potential and compelling economics. In my opinion, Dalradian could become a high-margin gold producer. This is another attractive takeover target for any midtier gold producer. Sprott is now a large shareholder and funded this story until the prefeasibility study, which is scheduled in 2015. Dalradian did an impressive financing of $27M+ at $0.90/share, but investors can buy it now for less than $0.70. TGR: Moving on to copper, we’ve seen three companies with advanced projects taken out this year: Lumina Copper Corp., Augusta Resource Corp. and Curis Resources Ltd. Who’s next? OG: There aren’t many attractive copper projects left that are controlled by junior miners. I’ll name two. The first is Reservoir Minerals Inc.’s (RMC:TSX.V) Timok project in Serbia. This contains a large deposit with extremely high copper and gold grades, so much so that copper major Freeport-McMoRan Copper & Gold Inc. (FCX:NYSE) will pay for Timok all the way to a bankable feasibility study in exchange for 75%. That means zero cost for Reservoir with unlimited exploration and development potential. As Reservoir owns a very large, diversified and promising project portfolio next to many active mines in Serbia, and Freeport always targets large world-class deposits with attractive locations, I think it’s more than obvious that Reservoir will be taken over by Freeport, perhaps sooner than later. The second junior copper company with takeover potential is Excelsior Mining Corp. (MIN:TSX.V), with its Gunnison in-situ project in Arizona. The company released a stunning prefeasibility study in early 2014 with industry-leading economics. More than 25% of the company is now owned by Greenstone Resources, a solid London private equity fund. At its current share price, Excelsior offers fantastic leverage on the copper price. TGR: You are now more bullish on uranium companies, correct? OG: Uranium prices have just enjoyed their first recovery in years. We may have seen the bottom here, so I think investors should put uranium stocks back on their watchlists. In my opinion, the most attractive discovery story in the global uranium space in view of grade, size and quality is Fission Uranium Corp. (FCU:TSX) and its outstanding discovery at its Patterson Lake South (PLS) project in Saskatchewan’s Athabasca Basin. What is really awesome is that Fission is still achieving a very successful drilling rate. I think it’s clear that PLS will be taken over, and this might happen after the release of the first

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