Gold World News Flash |
- Greece, Gold, And Are People Really Prepared For A Bank Collapse?
- Gold: Use the Cockroach Strategy
- An Honest Conversation About Donald Trump
- Greek Stock Market and Economy Collapse
- Despite media's propaganda, gold has performed well in Europe, Turk tells KWN
- Comex On The Edge? Paper Gold "Dilution" Hits A Record 124 For Every Ounce Of Physical
- Pictures Worth A Thousand Words: Coafeidian, The Chinese Eco-City That Became A Ghost Town
- Obama's Climate Fascism Is Another Nail In The Coffin For The U.S. Economy
- Price of Gold Gave Back $5.50 Today Closing at $1,089.40
- Gold Daily and Silver Weekly Charts - Claims Per Ounce to New High of 121:1
- Protected: Gold Mines – How Bad Is It?
- A Tale of Two Power Sources
- Is there any limit to creation of paper gold on the Comex?
- As America Goes Solar…
- Idle Gold and Worries About Growth
- Ready For The New Bull Market in The Junior Mining Sector?
- Here Comes The Next Trillion-Dollar Bailout
- Why It’s Not Time to Dance on Gold’s Grave
- Silver - Are We There Yet?
- Mike Kosares: The gold investment demand juggernaut
- The Gold Investment Demand Juggernaut
- The Reality of Available Gold and Silver Bullion
- China's stock plunge burnishes gold's appeal
- On gold, El-Erian contrives in the FT, Arends revels in willful ignorance at MarketWatch
- Stock Market Pullback at Hand, Gold About to Rally?
- The Real Message of Plunging Commodities Prices
- Gold – The More Hate, The More Bullish We Become
- Silver Price - Are We There Yet?
- Gold Price Near Intermediate Bottom
- Randall Abramson's Plan for Surviving Gold's Summer of Discontent
- Randall Abramson's Plan for Surviving Gold's Summer of Discontent
- Three Strikes Against the Canadian Dollar
| Greece, Gold, And Are People Really Prepared For A Bank Collapse? Posted: 04 Aug 2015 12:00 AM PDT from Kingworldnews:
These journalists who see no value in gold are in effect concluding that gold’s 5,000 year history as money has ended. But here’s an example of how shallow their thinking is. The pet-rock guy uses Greece’s default as an example of how gold is supposedly just sitting there in the face of news shaking the financial system. The reality is that as we speak gold is up 2% this year in terms of the euro, far better than anyone could have earned on a euro bank deposit – plus you have the safe-haven benefit of knowing that when you own gold, you do not have counterparty risk. Relying on others’ promises is a real risk. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold: Use the Cockroach Strategy Posted: 03 Aug 2015 11:01 PM PDT Gold: the monetary metal that central bankers, politicians, and Too-Big-To-Fail bankers publicly hate. The Cockroach Strategy: A cynical but depressingly accurate view of politics that can assist... {This is a content summary only. Click on the blog title to continue reading this post, share your comments, browse the website, and more!} | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| An Honest Conversation About Donald Trump Posted: 03 Aug 2015 10:30 PM PDT from Stefan Molyneux: In the verge of the first debate amongst the Republican Presidential candidates, Donald Trump has a decisive lead – in both state and nationwide polls – over Jeb Bush, Scott Walker, Rand Paul, Ted Cruz, Ben Carson and the rest of the prospective nominees. Singlehandedly bringing the topic of Illegal Immigration to the forefront of the national debate – Trump has been in the crosshairs of the established political class and the mainstream media. Being called everything from a racist to a rapist in recent weeks since announcing his candidacy, Trump has divided republicans, libertarians and independents, sparking a massive debate. Love him or hate him, the ten billion dollar man doesn't seem to be going anywhere and Trump's entry into the political fray has certainly shaken things up. Stefan Molyneux and the Freedomain Radio team discuss the prospects of a Donald Trump presidential run, the possible pros, the cons, the effectiveness of political action, the impact of voting vs. not voting and what Trump's unexpected surge in popularity means for the United States as a whole. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Greek Stock Market and Economy Collapse Posted: 03 Aug 2015 10:00 PM PDT by Pater Tenebrarum, Acting-Man.com:
The Greek stock market very likely represents an emerging opportunity, as many stocks are sporting extremely low valuations these days. However, when we last discussed the Greek market, we pointed out that there was probably no hurry and more importantly, that using ETFs to play the Greek market would pose a difficulty at the current juncture. As we noted at the time:"[…] at least one of the larger banks is reportedly in serious trouble. In any case, non-performing loans in the Greek banking system have recently streaked to a new record high, in parallel with the run on deposits. So the banks are certainly not healthy, in spite of having been recapitalized at great cost late last year and remaining in the ECB's good graces for now. This makes a bit more tricky to play Greece via ETFs or similar index-tracker vehicles, all of which are certain to contain bank stocks as well. To be safe, one should probably wait for the upcoming verdict on the banking system situation, which is bound to become known soon." | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Despite media's propaganda, gold has performed well in Europe, Turk tells KWN Posted: 03 Aug 2015 06:06 PM PDT 9:05p ET Monday, August 3, 2015 Dear Friend of GATA and Gold: GoldMoney founder and GATA consultant James Turk tells King World News tonight that despite the mainstream financial news media's ever-intensifying propaganda against gold, the monetary metal has been performing well in Europe, protecting the wealth of Greeks who own it and providing superior returns against the euro. An excerpt from Turk's interview is posted at the KWN blog here: http://kingworldnews.com/propaganda-greece-gold-and-are-people-really-pr... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT USAGold: Coins and bullion since 1973 USAGold, well known for its Internet site, USAGold.com, offers contemporary bullion coins and bullion-related historic gold coins for delivery to private investors in the United States, Europe, Canada, Australia, and New Zealand. It is one of the oldest and most respected names in the gold industry, with thousands of clients and an approach to investment that emphasizes guidance and individual needs over high-pressure sales tactics. The firm's zero-complaint record at the Better Business Bureau makes it an ideal match for the conservative, long-term investor looking for a reliable contact in the gold business. Please call 1-800-869-5115x100 and ask for the trading desk, or visit: USAGold: Great prices, quick delivery -- all the time. Join GATA here: New Orleans Investment Conference http://noic2015.eventbrite.com/?aff=gata The Silver Summit and Resource Expo 2015 http://cambridgehouse.com/event/50/the-silver-summit-and-resource-expo-2... Support GATA by purchasing recordings of the proceedings of the 2014 New Orleans Investment Conference: https://jeffersoncompanies.com/landing/2014-av-powell Or by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Comex On The Edge? Paper Gold "Dilution" Hits A Record 124 For Every Ounce Of Physical Posted: 03 Aug 2015 05:47 PM PDT Over the few days, we got what was merely the latest confirmation that when it comes to sliding gold prices, consumers of physical gold just can't get enough. As the Times of India reported over the weekend, India's gold imports shot up by 61% to 155 tonnes in the first two months of the current fiscal year "due to weak prices globally and the easing of restrictions by the Reserve Bank. In April-May of the last fiscal, gold imports had aggregated about 96 tonnes, an official said." This follows confirmations previously that with the price of gold sliding, physical demand has been through the roof, case in point: "US Mint Sells Most Physical Gold In Two Years On Same Day Gold Price Hits Five Year Low", "Gold Bullion Demand Surges - Perth Mint and U.S. Mint Cannot Meet Demand", "Gold Tumbles Despite UK Mint Seeing Europeans Rush To Buy Bullion" and so on. Indicatively, as of Friday, the US Mint had sold 170,000 ounces of gold bullion in July: the fifth highest on record, and we expect today's month-end update to push that number even higher.
But while the dislocation between demand for physical and the price of paper gold has been extensively discussed here over the years, most recently in "Gold And The Silver Stand-Off: Is The Selling Of Paper Gold And Silver Finally Ending?", something unexpected happened at the CME on Friday afternoon which may be the most important observation yet. Recall that in the middle of 2013, in an extensive series of articles, we covered what was then a complete collapse in Comex vaulted holding of registered (i.e., deliverable) gold. At the time the culprit was JPM, where for some still unexplained reason, the gold held in the newest Comex' vault plunged by nearly 2 million ounces in just six short months. More importantly, the collapse in registered Comex gold sent the gold coverage ratio (the number of ounces of "paper" gold open interest to the ounces of "physical" registered gold) soaring from under 20 where, or roughly in line with its long-term average, to a whopping 112x. This means that there were a total of 112 ounces of claims for every ounces of physical gold that could be delivered at any given moment. Gradually, the Comex raid was relegated to the backburner when starting in 2014 the amount of registered gold tripled from the upper 300k range to 1.15 million ounces one year ago, at which point the slide in Comex registered gold started anew. Which brings us to Friday afternoon, also known as month end position squaring, when in the latest daily Comex gold vault depository update we found that while some 270K in Eligible gold had been withdrawn mostly from JPM vaults, what caught our attention was the 25,386 ounces of Registered gold that had been "adjusted" out of registered and into eligible. As a reminder, eligible gold is "gold" that can not be used to satisfy inbound delivery requests without it being converted back to registered gold first, which makes it mostly inert for delivery satisfaction purposes.
Most importantly, this 25,386 oz reduction in deliverable Comex gold from 376,906 on Thursday pushed the amount of registered Comex gold to an all time low: at 351,519 ounces, or just barely over 10 tons, registered Comex gold has never been lower!
Incidentally, as part of the month-end redemption requests, we saw a whopping 22% of the eligible gold in Kilo-bar format (where there is no registered, just eligible) be quietly whisked away from Brink's vaults: unlike traditional ounce-based contracts, the kilo format traditionally serves as an indication of Chinese demand, and if withdrawals on par with those seen on July 31 persist, it will soon become clear that Chinese buyers are once again scrambling for the safety of gold now that their stock market bubble has blown up.
This covers the sudden surge in demand for physical gold as manifested by CME data. Meanwhile, over in "paper gold" land, things remained unchanged: as shown in the chart below, the aggregate gold open interest rose modestly to 43.5 million ounces up from 42.9 million the day before.
While on its own, gold open interest - which merely represents the total potential claims on gold if exercised - is hardly exciting, as we have shown previously it has to be observed in conjunction with the physical gold that "backs" such potential delivery requests, also known as the "coverage ratio" of deliverable gold. It is here that things get a little out of hand, because as the chart below shows, all else equal, the 43.5 million ounces of gold open interest and the record low 351,519 ounces of registered gold imply that as of Friday's close there was a whopping 123.8 ounces in potential paper claims to every ounces of physical gold. This is an all time record high, and surpasses the previous period record seen in January 2014 following the JPM gold vault liquidation.
Another way of stating this unprecedented ratio is that the dilution ratio between physical gold and paper gold has hit a record low 0.8%. Indicatively, the average paper-to-physical coverage ratio since January 1, 2000 is a "modest" 19.1x. As of Friday it had soared to more than 6 times greater. Which brings us to the usual concluding observations: First: as we have said previously, at a time when all the gold selling (and naked shorting) is in the paper markets and when demand for physical gold is once again off the charts, with soaring purchases not only in India but also in the US, where is this gold going? Clearly not into CME gold vaults, which are once again a source of physical gold, and as the above shows, have never had less deliverable gold. Second, total Comex gold has dropped to such precarious levels in the past and while on many occasions market observers have asked if the Comex is close to a failure to deliver, aka a default of the CME's gold warehouse, it has always avoided such a fate. Still, one wonders: the 10+ tons of deliverable gold at the Comex are now worth a paltry $383 million. It would not be very complicated for a next generation "Hunt Brother" to buy some $400 million in Comex gold, and promptly demand delivery: after all the gold crash of two weeks ago saw some $2.7 billion in paper gold dumped in the most illiquid market - why can't it be done in reverse. What would happen next is unknown, but unless somehow the Comex found a way of converting millions of ounces of Eligible gold into Registered, the CME would simply be unable to satisfy such a delivery request. Third: while there are still over 7 million ounces of Eligible gold, why the recent spike in "adjustments" of eligible to registered gold (i.e., missing a warehouse receipt)? Finally, we assume the mainstream press will once again start paying close attention to the total, and especially registered, gold held at the Comex: at a pace of 25K a day, the gold vaults that make up the CME's vaulting system would be depleted in just under two weeks of daily withdrawals. In any case, we are very curious to see how this latest dramatic face off in the long-running war between paper and physical gold, concludes. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pictures Worth A Thousand Words: Coafeidian, The Chinese Eco-City That Became A Ghost Town Posted: 03 Aug 2015 05:30 PM PDT Authored by Gilles Sabrie, originally posted at The Guardian, "As precious as gold..." That was how then-president Hu Jintao described Caofeidian during his visit in 2006. It was pledged to be "the world’s first fully realised eco-city" – yet 10 years and almost $100bn later, only a few thousand inhabitants have moved to this land reclaimed from the sea.. as yet another 'centrally planed' idea is completely FUBAR. China’s ‘eco-cities’: empty of hospitals, shops and people
The leftover gate from a construction site – for a road that doesn’t lead anywhere. Caofeidian eco-city, begun in 2003, is located 200km southeast of Beijing. All photographs: Gilles Sabrie
Locals fish for crabs in the Bohai Sea as construction sites stand idle in the background. Caofeidian, in Hebei province, was originally a small island that has expanded using land reclaimed from the sea.
The ‘eco-city’ was made possible through huge bank loans. Once it was half-built, these loans were halted and many projects suspended due to the rising cost of raw materials and a lack of government support.
The knock-on effects are also to be seen in this abandoned tourist resort by the shore of Bohai Sea.
A lone worker inside Caofeidian city’s mostly abandoned industrial park. He works for a company producing solar panels – a heavily subsidised industry in China that is plagued by over capacity.
Caofeidian eco-city was planned to accommodate one million inhabitants, yet only a few thousand live there today. It has joined the growing ranks of China’s ghost cities.
A torn poster showing the original plan for Caofeidian Environmental Industries Park. Government and state owned industrial enterprises are said to have invested 561 billion yuan (US $91bn) in the area over the past decade, but the park was never completed.
A shopping mall modelled on a traditional Italian city was finished, but businesses haven’t moved owing to the small number of city residents.
Behind the empty mall, a branch of Tangshan University is under construction. The provincial government is moving it to Caofeidian to make up for the lack of businesses in the new city.
Security guards by Cafofeidian harbour, where coal and iron ore are unloaded to feed the Shougang steel mill. The mill was moved from Beijing to Caofeidian in 2006, but is mired in debt.
Bridge to nowhere: a six-lane road span was abandoned after 10 support pylons had been erected.
An Japanese factory stands idle in the Caofeidian Sino-Japanese eco-industry park. The factory moved from Tangshan city, attracted by government incentives, but never re-started operations.
Empty residential buildings in Caofeidian eco-city. Once described as the world’s first fully realised eco-city, Caofeidian is now struggling to pay daily interest rates on the billions of yuan borrowed to build it. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Obama's Climate Fascism Is Another Nail In The Coffin For The U.S. Economy Posted: 03 Aug 2015 05:00 PM PDT Submitted by Michael Snyder via The Economic Collapse blog, Is Barack Obama trying to kill the economy on purpose? On Sunday, we learned that Obama is imposing a nationwide 32 percent carbon dioxide emission reduction from 2005 levels by the year 2030. When it was first proposed last year, Obama’s plan called for a 30 percent reduction, but the final version is even more dramatic. The Obama administration admits that this is going to cost the U.S. economy billions of dollars a year and that electricity rates for many Americans are going to rise substantially. And what Obama is not telling us is that this plan is going to kill what is left of our coal industry and will destroy countless numbers of American jobs. The Republicans in Congress hate this plan, state governments across the country hate this plan, and thousands of business owners hate this plan. But since Barack Obama has decided that this is a good idea, he is imposing it on all of us anyway. So how can Obama get away with doing this without congressional approval? Well, he is using the “regulatory power” of the Environmental Protection Agency. Congress is increasingly becoming irrelevant as federal agencies issue thousands of new rules and regulations each and every year. The IRS, for example, issues countless numbers of new rules and regulations each year without every consulting Congress. Government bureaucracy has spun wildly out of control, and most Americans don’t even realize what is happening. In the last 15 days of 2014 alone, 1,200 new government regulations were published. We are literally being strangled with red tape, and it has gotten worse year after year no matter which political party has been in power. These new greenhouse gas regulations are terrible. The following is a summary of what Obama is now imposing on the entire country…
In America today, the burning of coal produces approximately 40 percent of the electrical power used by Americans each year. So what is this going to do to our electricity bills? You guessed it – at this point even the Obama administration is admitting that they are going to go up. The following comes from Fox News…
And we must keep in mind that government projections are always way too optimistic. The real numbers would almost surely turn out to be far, far worse than this. In addition, these new regulations are going to complete Barack Obama’s goal of destroying our coal industry. In a previous article, I included an excerpt from a recent news article about how some of the largest coal producers in America have just announced that they are declaring bankruptcy…
Barack Obama has actually done something that he promised to do. He promised to kill the coal industry, and he is well on the way to accomplishing that goal. Of course Hillary Clinton thinks that this is a splendid idea. She called Obama’s plan “the floor, not the ceiling”, and she is pledging to do even more to reduce greenhouse gas emissions. The following comes from the Washington Post…
And you know what? The climate control freaks will never be satisfied. Since just about all human activity affects the climate in some way, they will eventually demand control over virtually everything that we do in the name of “saving the planet”. That is why I call it “climate fascism” – in the end it is all about control. During the month of September, the Pope is going to travel to the United Nations to give a major speech to kick off the conference at which the UN’s new sustainable development agenda will be launched. As I have documented previously, this new agenda does not just cover greenhouse gas emissions and the environment. It also addresses areas such as economics, agriculture, education and gender equality. It has been called “Agenda 21 on steroids”, and it is basically a blueprint for governing the entire planet. Unfortunately, that is ultimately what the elite want. They want to micromanage the lives of every, man, woman and child on the globe. They will tell us that unless people everywhere are forced to reduce their “carbon footprints” that climate catastrophe is absolutely certain, but their “solutions” always mean more power and more control in their hands. Barack Obama promised to fundamentally transform America, and he is doing it in hundreds of different ways. These new greenhouse gas regulations are just one example. Our nation is being gutted like a fish, and most Americans don’t seem to care. What in the world will it take for this country to finally wake up? | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Price of Gold Gave Back $5.50 Today Closing at $1,089.40 Posted: 03 Aug 2015 04:25 PM PDT
This action is by no means fatal, simply disappointing. The GOLD PRICE low came 23 July at 1,072.30 and silver's 24 July at $14.33. Any move that doesn't seriously penetrate those levels would constitute a double bottom. Silver's MACD indicator has turned up, but its RSI has turned down. Tiny changes. Gold's RSI is growing less oversold and the RSI is curling up. No bad news here, but no good news. GOLD/SILVER RATIO rose 1% to 75.048. Closed almost but not quite above the 20 DMA tripwire. Dow in gold fell barely to 16.15 oz, Dow in silver rose 1.16 to 1,212.41 oz. Stocks themselves tak'n a faintin' spell. Dow lost 91.66 (0.52%) to 17,598.20. Any close below 17,400 could panic the herd. S&P500 lost 5.8 (0.28%) to 2,098.04 -- whoops, below the 50 DMA and almost below the 20. US dollar index, scrofulous troubler of the world, rose 14 basis points to 97.57. Euro fell 0.3% to $1.0950, Yen fell 0.08% to 80.63. In other words, nothing happened much in the scabby world of fiat currencies. Just a leetle whisper in y'all's ear. According to Fred, the St. Louis Fed's database, as of 29 July 2015 the federal reserve system has issued $1,370.77 billion in Federal Reserve notes, i.e., currency. Now according to a conversation I had years ago with a Treasury official, about 75% of that circulates OVERSEAS, so only 25% remains in the US. Further, 318,892,103 folks live in the US, give or take a million. A quick division tells me that for every US man, woman, and child only $1,074.64 circulates in the US . Most all daily business payments are made with bank credit, i.e., bank account electrons or credit cards. Most people have little cash, and customarily beg a pittance of cash from their bank at ATMs. When the Greek Crisis blew up last month and they closed the banks, they limited ATM withdrawals to 60 euros a day or 1600 a month. Lots of folks had been withdrawing cash because they saw what was coming, but when the Greek government locked down the banks, they locked down safe deposit boxes, too. How would your family do without any cash? Here's an idea for you that expires with August: get two or three months living expenses out of the bank in cash. Not all $100s, small bills. Put that cash someplace safe where you have 24 hour access. "Expires with August" means "do it very, very soon." You're not making any interest leaving it in the bank anyway. But what do I know? I'm just a nat'ral born durned fool from Tennessee. You say "bank" around here, folks think you're talking about a creek. Aurum et argentum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger The-MoneyChanger.com © 2015, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold or 18 ounces of silver. or 18 ounces of silver. US $ and US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down. WARNING AND DISCLAIMER. Be advised and warned: Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures. NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps. NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced. NOR do I recommend buying gold and silver on margin or with debt. What DO I recommend? Physical gold and silver coins and bars in your own hands. One final warning: NEVER insert a 747 Jumbo Jet up your nose. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold Daily and Silver Weekly Charts - Claims Per Ounce to New High of 121:1 Posted: 03 Aug 2015 01:47 PM PDT | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Protected: Gold Mines – How Bad Is It? Posted: 03 Aug 2015 01:16 PM PDT There is no excerpt because this is a protected post. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 03 Aug 2015 12:40 PM PDT This post A Tale of Two Power Sources appeared first on Daily Reckoning. Sign of the times: The nation's No. 2 coal producer is headed for bankruptcy court. Alpha Natural Resources is filing as we write this morning. The coal industry "cave-in" Byron King warned about two months ago in The 5 is underway in earnest. “A decade ago," he said, "coal accounted for about half of U.S. electric generation; today, it’s down to about 40%." Alpha saw the writing on the wall but still couldn't save itself. A few years ago, the firm shifted emphasis from "thermal" coal used for power generation to "metallurgical" coal used for steel production. But now China's economy is slowing down, and demand for met coal has slackened too. Another blow to coal — the Obama administration's climate-change regulations. This morning, the president is announcing the first-ever federal limits on carbon emissions from power plants. The aim — to cut those emissions 32% from 2005 levels by 2030. State governments would have to draw up compliance plans by 2018 and implement them by 2022. The rules have been in the works for years. Previous drafts counted on a shift from coal to natural gas to reach the desired carbon limits. But the final version of the rules contains a bit of a surprise — less emphasis on natgas, more emphasis on renewables. Yes, there will be pushback: "Republicans in Congress and states hardest hit by the plan say they will fight it," says The Wall Street Journal. "More than a dozen states and the coal industry have vowed to sue the EPA, and several states have threatened to refuse to comply with the rule." But you don't have to guess at the outcome of those lawsuits to know where investment dollars are flowing. It comes back to a point we've been emphasizing for months now: Solar power has finally become economical. It's no longer the province of early adopters like our friend Cam Mather — who outfitted his off-grid home in Ontario with solar panels 17 years ago at a cost of $10 a watt. Now it's well under $1 a watt. That's enough to move nearly one-third of the school districts in New York state to consider solar — just as an example. The New York Power Authority recently sent inquiries to nearly 700 districts, offering a hand "if you're interested in putting solar on your roof or school grounds." The head of the Power Authority says even one-third of those districts going solar would be enough to idle half of a power plant fueled by coal or natgas. "The solar sector is a lot like the shale industry back in 2008/2009," says Matt Insley of our energy-investing team. "I'd travel from rig to rig, watching bits turn and black gold rush to the surface. However, the folks on Main Street didn't want to believe what was happening. "But the calculator doesn't lie. New solar installs (whether residential or commercial) are economic — with the potential to return four-six times their initial investment. And with each day passing, the economics are only getting better. "Think of how shale oil drillers kept getting more efficient during America's energy boom. We're seeing the same thing with solar. The technology is better and more efficient, and the costs to install it are dropping rapidly. Add it all up and there's a lot of low-hanging fruit out there." Regards, Dave Gonigam P.S. Be sure to sign up for The Daily Reckoning — a free and entertaining look at the world of finance and politics. The articles you find here on our website are only a snippet of what you receive in The Daily Reckoning email edition. Click here now to sign up for FREE to see what you're missing. The post A Tale of Two Power Sources appeared first on Daily Reckoning. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Is there any limit to creation of paper gold on the Comex? Posted: 03 Aug 2015 12:28 PM PDT 3:27p ET Monday, August 3, 2015 Dear Friend of GATA and Gold: A week ago the TF Metals Report disclosed that leverage in gold futures contracts on the New York Commodities Exchange had reached 116 times the metal available for delivery: http://www.gata.org/node/15598 Today Zero Hedge reports that the leverage is up to 124 claims on every ounce available for delivery. Zero Hedge's report is headlined "Comex On The Edge? Paper Gold 'Dilution' Hits a Record 124 for Every Ounce of Physical" and it's posted here: http://www.zerohedge.com/news/2015-08-03/comex-edge-deliverable-gold-dro... Zero Hedge suspects that this signifies that refugees from China's stock market are frantically reaching out for golden insurance and wonders about a default on Comex gold contracts. ... Dispatch continues below ... ADVERTISEMENT Direct Ownership and Storage of Precious Metals Goldbroker.com is a precious metals investment company that enables investors to own and store gold directly in their own name (no mutualized ownership) in Zurich and Singapore. Goldbroker's clients are not exposed to any counterparty risks. They own gold and silver in their own names (the ownership certificate cites the name of the investor and serial number of his bars) and they have storage accounts opened in their own name as well. So Goldbroker.com's storage partner knows the exact identity of each investor. Goldbroker.com doesn't store in the name of its clients; rather, Goldbroker's clients store personally. All investors have direct access to their gold and silver bars. Goldbroker.com was launched in 2011 so that investors would avoid any counterparty risk when investing in physical gold and silver. Goldbroker.com is listed among GATA's recommended monetary metals dealers: To invest or learn more, please visit: As the JPMorganChase gold vault seems to be connected to the gold vault of the Federal Reserve Bank of New York, your secretary/treasurer isn't sure that the Comex leverage data means all that much. If the United States is prepared to compromise all the gold it holds in custody for foreign governments, the gold futures price well could go to zero. Indeed, gold now is priced substantially below its cost of production mainly because central banks and their bullion bank agents have figured out how to make metal appear to be in many places at once, perhaps as many as 124 places. That gold mining company shares continue their fall toward zero suggests that investors figure that no one ever again will need actual metal, at least not for investment purposes, and that the gold mining industry, silent amid overwhelming evidence of central bank intervention in the gold market, has agreed to die quietly and truly is worth nothing. The TF Metals Report last week may have poses the crucial question: What's to stop Comex gold contract leverage from going to 200 or even 500 times the metal available for delivery? It won't be the World Gold Council or mainstream financial journalism. CHRIS POWELL, Secretary/Treasurer Join GATA here: New Orleans Investment Conference http://noic2015.eventbrite.com/?aff=gata The Silver Summit and Resource Expo 2015 http://cambridgehouse.com/event/50/the-silver-summit-and-resource-expo-2... Support GATA by purchasing recordings of the proceedings of the 2014 New Orleans Investment Conference: https://jeffersoncompanies.com/landing/2014-av-powell Or by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 03 Aug 2015 11:36 AM PDT This post As America Goes Solar… appeared first on Daily Reckoning. The world of solar power is changing the country so rapidly it's difficult to keep up with the news. Here are some interesting signs of these times: KB Homes, one of the nation's most prominent house builders, will offer each and every one of the houses it builds in a new Palo Alto, California, development with solar photovoltaic power standard. The company estimates each homeowner will save at least $205 a month on electric bills, or more than $25,000 over 10 years. France has passed a law saying every new building built in an area zoned commercial must have either solar panels on the roof or a green roof — plants and shrubbery that help stop the heat island effect of commercial buildings. The CEO of First Solar recently spoke at an industry gathering in New Orleans and said that his company was bidding utility-scale projects for as low as 5 cents per kilowatt installed and that within 10 years it would be normal for solar power installations to be priced at 3 cents per kilowatt or less. Greentech Media Research predicts that the global photovoltaic solar market will grow 36% in 2015, after barely growing 2% last year. Asia will consume more than half the total new global capacity, thought to be 55 gigawatts in 2015. The report also estimates the global market for photovoltaics will triple by 2020 to 700 gigawatts. The United Nations has just issued a report that more jobs are created by investing in clean energies, dollar for dollar, than in fossil fuels. The U.N.'s Industrial Development Organization says that committing as little as 1.5% of GDP to renewable sources will spur job growth. In the first quarter of 2015 a record number of solar panels were installed on America's houses — more than 430 megawatts, about the size of a medium power plant. In order, the states with the most installations: California, New York, Arizona, Massachusetts and New Jersey. Florida, with anti-solar policies rampant, doesn't even make the top 10. Does that make sense in the "sunshine state"? To your health and wealth, Stephen Petranek Ed. Note: The future of technology is one of the most important and potentially lucrative bits of information you can know. Readers of Tomorrow in Review know that better than anyone. It’s a free service dedicated to examining the most incredible technologies the world has to offer… and to giving its readers regular opportunities to profit from them. Sign up for FREE, right here, and start getting tomorrow’s news today. The post As America Goes Solar… appeared first on Daily Reckoning. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Idle Gold and Worries About Growth Posted: 03 Aug 2015 11:12 AM PDT This post Idle Gold and Worries About Growth appeared first on Daily Reckoning. LONDON— Markets have begun August fretting about global growth. Chinese manufacturing data for last month look weak. Commodities are on the slide. The Canadian dollar, a classic commodity currency, has hit an 11-year low against its US counterpart. There's more gloomy news from Greece, where the stock market reopened today after a five-week hiatus. To no one's great surprise, it fell like a stone. Gold meanwhile hovers, not sure what to make of it all, idle on the sidelines. I'll return to gold in a moment. First, I want to highlight the contrast between the gloominess above and today's data coming out of the UK. UK manufacturing activity picked up in July, according to monthly purchasing managers index (PMI) data. Good news. Dig a little deeper though, and things look more complicated. "The sector is still reliant on the domestic market to drive overall demand, and on the consumer sector in particular," says Ron Dobson, senior economist at Markit, which compiles the PMI data. "The continued weakness of investment goods demand suggests that 'rebalancing' remains firmly in the rhetoric as opposed to reality column." Rebalancing is a word we can expect to hear a lot in the years ahead. Why? Because pretty much all of the economic stresses we read about each day can be traced back to an economic imbalance of one sort or another. The Eurozone is unbalanced. Deficit countries like Greece struggle to earn the euros to pay back surplus countries like Germany (which of course guards its export surplus jealously). China is unbalanced. Consumption as a percentage of GDP is extremely low by world standards (less than 40%, compared to nearly 70% in the US). Chinese leaders are aware of the problem. They talk about rebalancing away from investment-led growth towards consumption. The reality, though, is trickier. Such a rebalancing requires a net transfer of wealth from industry to households. That means less power for state-owned enterprises and the elites that run them. The powerful tend not to like things that make them less so. This could get messy. If you have the time, I urge you to read the latest blog by the excellent Michael Pettis on this subject. He goes into the issues around imbalances in much more depth than I have space to here. Back to the UK, and another key imbalance – the gap between what we earn from abroad and what flows the other way. I've talked about Britain's current account deficit before, so I won't say much here. The main point I want to make is that this is a symptom of Britain's stronger-than-most-other-countries-right-now economy. The question is, how sustainable is that relative strength? Given that it relies on the UK consumer to keep on consuming, the answer depends on two things: UK wage growth and household indebtedness. If the recent uptick in wage growth can be maintained, then perhaps consumer spending can chug on happily, pulling up the growth rate with it. However, if consumer spending relies too much on greater indebtedness, the situation looks less sustainable. I fear the latter scenario may be the one that plays out, and there's some anecdotal evidence to support that out. Earlier this year PwC published a report showing total outstanding non-mortgage borrowing rose 9% to £239bn last year, the fastest rise in a decade. More recently, the Centre for Social Justice, a think tank founded by Iain Duncan Smith, claimed in June that household debt has risen £34bn in less than three years to almost £1.5tn. These are straws in the wind, but they suggest that Britain's recovery may be built on shaky foundations. Besides, what happens in the rest of the world will leave its mark on the UK. Slower growth elsewhere will hurt our economy too. And slower growth may be what lies ahead. Imbalances create uncertainty, because no one knows how they'll correct. Uncertainty crimps investment, which undermines growth. Another troubling sign is the stagnation in world trade. The latest World Trade Monitor shows a 1.2% decline in global trade volumes in May. On an annual basis world trade grew by 1.5% — pitiful compared to the long run average of 7%. Beware these headwinds. Returning to gold, Mohamed-El-Erian in today's FT argues that gold has become a lot less attractive to investors. I respect El-Erian, but I have to wonder why he's writing this now. It's hardly news. Here's the passage that caught my eye: …gold has not benefited from rock-bottom interest rates that compensated for one of its major disadvantages as a financial holding — namely, that gold holders do not earn any interest or dividend payments. It has also shown an unusual lack of sensitivity to multiple geopolitical shocks, Greek-related concerns about the single European currency, and the massive injection of liquidity by central banks. Two points. First, gold arguably did benefit from rock-bottom rates in the run-up to its 2011 peak. More recently, disinflation (i.e. falling inflation rates) has meant real rates of interest have risen. Gold has been in a downtrend while real rates have been in an uptrend. Nothing unusual about that. Point two: the idea that gold should respond mechanistically whenever the financial press is wetting itself over something is a fallacy. Gold tends to go nuts when the system itself is in peril. Greece, for all the noise surrounding it, is too small to have that effect. As for liquidity injection by central banks, that makes systemic collapse less likely, at least in the short run. So gold remains unbothered. I want to spend the bulk of this week's DR looking at gold from different angles. The mainstream press is either ignoring it or penning complacent-sounding we-told-you-so articles, so my interest is piqued. Also, I know a lot of DR readers own some gold. Jim Rickards kicks off tomorrow by looking at gold from the other end of the gold price telescope. You'll see what I mean by that tomorrow. Until next time, Ben Traynor P.S. Be sure to sign up for The Daily Reckoning — a free and entertaining look at the world of finance and politics. The articles you find here on our website are only a snippet of what you receive in The Daily Reckoning email edition. Click here now to sign up for FREE to see what you're missing. The post Idle Gold and Worries About Growth appeared first on Daily Reckoning. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ready For The New Bull Market in The Junior Mining Sector? Posted: 03 Aug 2015 11:05 AM PDT Right now, the investment community regards commodities and junior miners as the ignored red headed stepchild as they have been in a downtrend for more than seven years. The TSX Venture Exchange is hitting all time lows as this bear market becomes the most devastating in history. Whenever you mention gold and silver stocks, investors relate to the wipe out in many stocks which includes not just the penny junior but the leaders like Barrick (ABX), Newmont (NEM), Yamana (AUY) and Goldcorp (GG). Instead the talk on the street is the high flying tech sector such as Apple (AAPL), Facebook (FB) and Google (GOOG). Its reaching bubble territory. Apple alone is worth four times the entire mining sector put together. The divergence between tech stocks and mining stocks has once again reached dot com proportions. History may not repeat itself but it tends to be similar. What we are seeing right now with a high priced tech sector and the extremely discounted miners is comparable to the major cycle low at the turn of the millennium. Right before Y2K the dot com’s were reaching a bubble while the miners were completely ignored. We then witnessed a major expansion in the mineral sector for seven years from 2000-2008 while equities underperformed followed by a seven year contraction from 2008-2015 where the tech stocks have outperformed the commodities from 2008-2015. It is possible we are once again at or near the turning point or bottom in the junior mining sector and near a top in the tech sector. Only a handful of the tech high flyers have pushed the equities higher. Already the transports and utilities have been under-performing. It may be wise to hedge gains made in the S&P500 and Nasdaq and increase accumulation of precious metals and the junior miners near historic lows. Remember the greatest gains are made in the early stage of a bull market. Early stages of bull markets come after the previous bear market capitulation.
July 24, 2015 may have marked an interim low on the GDXJ as it experienced a classic bullish engulfing reversal pattern on high volume following a major capitulation. Since that low, support has come into the GDXJ. If its the beginning of the rally, follow through should occur by the end of this week ending August 7th. I am still cautious until I see some additional buying as the precious metals rallies have been fake outs in the past. In order to confirm the interim low I would like to see some increased buying before the end of this week. Please stay tuned to my premium service which will be monitoring technical developments and which recently highlighted these three stocks last Tuesday that are bouncing higher on major volume. 1)I recently highlighted Pure Energy Minerals (PE.V or HMGLF) who just announced an NI 43-101 Inferred Resource on Clayton Valley of 816,000 Lithium Carbonate Equivalent.
Lithium is the one bright area of the resource space as the price has been rising and on Tesla (TSLA) building a gigafactory in Nevada. Pure Energy has 8000 acres around the only producing lithium mine in North America. Its a brine deposit which is the lowest cost type of lithium to process and its only three hour drive from the gigafactory. Please see full press release on the new resource estimate by clicking on the following link. Also check out the article entitled, “Buffett, Musk to spark a lithium boom” published in the USA Today. 2)I am a shareholder of Fission (FCUUF) and believe the merger with Denison (DNN) could benefit the entire Athabasca Basin. M&A is the name of the game in uranium. Notice the recent merger with Energy Fuels (UUUU) and Uranerz and the proposed merger of Fission with Denison and another merger of Uranium Resources (URRE) and Anatolia. The combined larger entities could attract strategic/institutional investors which could open the capital markets to improved exploration and development budgets. In this bear market companies need to consolidate in order to cut costs and attract major institutional interest. Now Denison with Fission will have the best portfolio of high grade advanced uranium assets in the Basin plus free cash flow from Denison’s toll milling agreements and management fees with Uranium Participation Corp (URPTF). Fission shareholder’s will have a major US listing on the NYSE MKT with Denison and a better chance of attracting more funds who have market cap and listing requirements. See the news release of the definitive arrangement between Denison and Fission: Despite all this merger chatter, Fission is hitting and growing PLS by leaps and bounds with just outstanding results. Also keep a close eye on Fission 3 (FISOF) and Canex (CSC.V) who have just begun drilling at Clearwater which is adjacent to PLS and is by far one of the most prospective targets of Fission 3′s immense portfolio in the Basin. This is high risk but the gains can be huge as we witnessed with discoveries in the Basin in the past. Fission’s famous award winning geologist Ross McElroy believes Clearwater may be one of the most prospective targets in Fission 3′s portfolio. See the full news release from Fission 3 and Canex by clicking on the following link: 3)Pershing Gold (PGLC) recently rolled back its shares and uplisted to the Nasdaq. Quite often after such moves some of the penny stock players sell their shares. It appears there was a high volume reversal just a few days ago. It may be coming off the bottom. It has one of the most advanced mining projects with a permitted mill in Pershing County Nevada next to some of the big boys such as Coeur (CDE). They have been hitting amazing high grades and the CEO is former Franco Nevada. He has made major deals with the largest mining companies in the world in the past. Disclosure: I own Pure Energy, Fission, Fission 3, Canex, Uranium Resources and Pershing Gold. Pure Energy, Fission 3, Canex,, Uranium Resources and Pershing Gold are all website sponsors. __________________________________________________________________________ Sign up for my free newsletter by clicking here… Order premium service by clicking here… Please see my disclaimer and full list of sponsor companies by clicking here… To send feedback or to contact me click here… Tell your friends! Please forward this article to a friend or share the link on Facebook, Twitter or Linkedin. For informational purposes only. This is not investment advice. May contain forward looking statements. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Here Comes The Next Trillion-Dollar Bailout Posted: 03 Aug 2015 11:02 AM PDT As boxers like to say, it’s the punch you don’t see that knocks you out. In a world where a growing part of the financial system is hidden from view and excluded from official statistics, those are words to remember. A couple of examples from the 2008-2009 crisis:
Since bubbles tend not to repeat in exactly the same form, it’s reasonable to assume that the next Fannie or AIG will be something very different — like state and local pension plans, which for years have been putting away too little to cover the coming wave of retirements and are now starting to beg for help:
This means three things: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Why It’s Not Time to Dance on Gold’s Grave Posted: 03 Aug 2015 10:47 AM PDT This post Why It’s Not Time to Dance on Gold’s Grave appeared first on Daily Reckoning. PARIS – Today, help comes from an unexpected direction – Alan Greenspan! After so many years of mumbly-dumbly gobbledygook and credit-pumping folderol (much of the blame for the credit crisis of 2008 can be sent to his inbox), we had forgotten about Greenspan's earlier oeuvre. Yes… before he became a public servant he might have passed for an honest man. And his 1966 essay "Gold and Economic Freedom" is a classic. It helps explain how this credit bubble finally ends. (Thanks to Pater Tenebrarum at David Stockman's Contra Corner for reminding us.) We are sitting at a sidewalk café in Paris. It is August. Families have decamped for the country. So it is quiet in this part of the city (the 16th arrondissement). At this hour of the morning, there would normally be children going to school with satchels on their backs. The streets would be clogged with commuters. And the cafés would be crowded with all manner of people. But the children are gone. Along with their parents. All that is left are a few fathers wondering how to get into trouble with their families gone, along with some old people, tourists, and mental defectives, dragging behind them their worldly goods in rolling caddies. We are not sure which category we fit into. At one table sits a pair of elderly women enjoying a morning coffee. At another are a man and a woman. Both attractive. Fortysomething. They are talking about real estate. Probably planning an affair. At another table is a man of our age. He drinks his coffee. He might otherwise read the paper, but the news kiosk is closed for the summer. There are no papers to be had – not in this neighborhood. So he just stares out into the street, looking at nothing in particular. Two workmen – their clothes spattered with white splotches – sit at another table. They are rough-looking sorts in T-shirts taking a morning coffee break. Buses go by. A few cars. Passersby, none moving very ambitiously. It's going to be a warm summer day. The Dow was off a little bit on Friday. Shanghai stocks were off too. And oil. But gold rose $7.40 an ounce in New York trading. So let's return to gold. And an avant-propos… Poverty is better than wealth in one crucial way: The poor are still under the illusion that money can make them happy. People with money already know better. But they are reluctant to say anything for fear that the admiration they get for being wealthy would turn to contempt. "You mean you've got all that moolah and you're no happier than me?" "That's right, man." "You poor S.O.B." We bring this up because it is at the heart of government's scam – the notion that it can make poor people happier. In the simplest form, government says to the masses: Hey, we'll take away the rich guys' money and give it to you. This has two major benefits (from an electoral point of view). First, and most obvious, it offers money for votes. Second, it offers something more important: status. After you have food, shelter, clothing, and a few necessities, everything else is status, vanity, and power. Extra money helps us feel good about ourselves… and attract mates. It's not just the money that matters. It's your relative position in society. From this point of view, it does as much good to take away a rich person's money as it does to give money to a poor person. Either way, the gap closes. Never, since the beginning of time up to 2015, has government ever added to wealth. It has no way to do so. And no intention of doing so. All it can do is to increase the power, wealth, or status of some people – at others' expense. That is a perfectly satisfactory outcome for most people, at least in the short term. But the more this tool is used – the more some people's power, status, and wealth is taken away – the more the wealth of all of them declines. The trouble with socialism, as Maggie Thatcher remarked, is that you run out of other people's money. You run out because there is only so much wealth available… and because the redistribution of that wealth distorts the signals and incentives needed to create new wealth. This means that society gets poorer relative to other societies that are not stealing from one group to give to another. After a while, the difference becomes a problem. The meddlers see that they are falling behind and change their policies to try to get back in the race. (This is more or less what happened in Britain and China in the 1970s and the Soviet Union in the 1980s.) Or the poorer society is conquered by the richer one (which has more money to spend on weapons). There is one other wrinkle worth mentioning… Although it is true that "leveling" may have a pleasing aspect to the masses (bringing the rich down so there is less difference between the two groups)… it is also true that leveling is just what powerful groups do not want to happen. Even when the elite go after "the rich" with taxes, confiscations, and levies, they tend to look out for themselves in other ways. They allow themselves special rations – special medical care… special pensions… special parking places… and various drivers, valets, and assistants. One study found that there was more difference between the way Communist Party members and the masses lived in the Soviet Union than there was between the rich and poor in Reagan's America. All of this brings us to here and now… and to gold. Traditionally, gold is a form of money. Money has no intrinsic value. It is the economy that gives money its value. The more an economy can produce the more each unit of money is worth. It doesn't matter whether it is gold, paper, or seashells. But just as the common man is deceived by money (he thinks more of it will make him happier), so are policymakers. Their belief is a little more sophisticated. They know it is the economy, not money, that creates wealth. But they believe that adding money (and more demand) will make the economy function better… and make people wealthier. And in today's post-Bretton Woods monetary system, they don't add physical money (gold, paper, or coins); they add digital credit. This new form of money takes the scam to a new level. We have been trying to understand (and explain) how the system works and why it is doomed to failure. But Alan Greenspan – bless his corrupted little heart – was on the case even before the credit bubble began: Under a gold standard, the amount of credit an economy can support is determined by the economy's tangible assets, since every credit instrument is ultimately a claim on some tangible asset. But government bonds are not backed by tangible wealth, only by the government's promise to pay out of future tax revenues, and cannot easily be absorbed by the financial markets. A large volume of new government bonds can be sold to the public only at progressively higher interest rates. Thus, government deficit spending under a gold standard is severely limited. The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit. More tomorrow… Bill Bonner Originally posted at the Diary of a Rogue Economist, right here. Editor's Note: Be sure to sign up for The Daily Reckoning — a free and entertaining look at the world of finance and politics. The articles you find here on our website are only a snippet of what you receive in The Daily Reckoning email edition. Click here now to sign up for FREE to see what you're missing. The post Why It’s Not Time to Dance on Gold’s Grave appeared first on Daily Reckoning. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 03 Aug 2015 10:09 AM PDT Jeffrey Lewis | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mike Kosares: The gold investment demand juggernaut Posted: 03 Aug 2015 09:52 AM PDT By Michael J. Kosares Whenever the mainstream media decides to undertake one of its periodic attacks on gold and gold ownership, it almost always begins by laying out gold's long history as a proven inflation hedge. It proceeds to explain that inflation is not a problem at the present, and, as a result, no one with any common sense would bother to own it. This argument is a setup -- a pretext meant to confuse investor thinking and redirect interest away from the one investment vehicle likely to do them some good in these uncertain times. In mid-2007, the year the financial crisis began, gold was trading at $650 per ounce. As financial markets courted collapse in the following two years, gold rose steadily. By the time the global economy came up for air in late 2010, gold was trading at $1,400 per ounce and well on its way to an interim top of $1,900 in September, 2011. ... ... For the remainder of the commentary: http://www.usagold.com/publications/NewsViewsAug2015.html ADVERTISEMENT Silver Coins and Rounds with Employee Pricing and Free Shipping Grab your Silver Starter Kit at cost from Money Metals Exchange, the company named "Precious Metals Dealer of the Year" by industry ratings group Bullion Directory. Simply go to MoneyMetals.com and type "GATA" in the radio box at the top of the page. This special silver offer contains 4 ounces of silver coins and rounds in the most popular 1-ounce, half-ounce, and 10th-ounce forms. Claim yours now, because GATA readers get employee pricing and free shipping. So go to -- -- and type "GATA" in the radio box at the top of the page. Join GATA here: New Orleans Investment Conference http://noic2015.eventbrite.com/?aff=gata The Silver Summit and Resource Expo 2015 http://cambridgehouse.com/event/50/the-silver-summit-and-resource-expo-2... Support GATA by purchasing recordings of the proceedings of the 2014 New Orleans Investment Conference: https://jeffersoncompanies.com/landing/2014-av-powell Or by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Gold Investment Demand Juggernaut Posted: 03 Aug 2015 08:37 AM PDT Whenever the mainstream media decides to undertake one of its periodic attacks on gold and gold ownership, it almost always begins by laying out gold's long history as a proven inflation hedge. It then proceeds to explain that inflation is not a problem at the present, and, as a result, no one with any common sense would bother to own it. This argument is a set-up – a pretext meant to confuse investor thinking and redirect interest away from the one investment vehicle likely to do them some good in these uncertain times. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Reality of Available Gold and Silver Bullion Posted: 03 Aug 2015 05:26 AM PDT Dickson Buchanan writes: The month of July has seen the most intense demand for physical gold and silver since April of 2013, setting numerous records for the year. On the heels of the spectacular drop in spot prices, buyers of physical metal have come out in droves. In fact, available supply is hardly able to keep up with the demand for immediate delivery of metals. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| China's stock plunge burnishes gold's appeal Posted: 03 Aug 2015 05:24 AM PDT By Biman Mukherji HONG KONG -- Until recently, every time Hong Kong-based bullion supplier Padraig Seif would inquire about demand from customers, the answer would be the same: Business is quiet as all eyes -- and money -- turned to the surging stock market. Suddenly, though, his sales are booming again in the wake of a plunge in Chinese equities and sliding gold prices. "It has really taken us by surprise," says Mr. Seif, co-owner of bullion supplier Finemetal Asia. "We are looking at three times the revenue in June as in May." He said demand is particularly strong for small gold bars weighing 250 grams and 500 grams that are popular with price-conscious smaller investors. ... ... For the remainder of the report: http://www.wsj.com/articles/chinas-stock-plunge-burnishes-golds-appeal-1... ADVERTISEMENT Free Storage with BullionStar in Singapore Until 2016 Bullion Star is a Singapore-registered company with a one-stop bullion shop, showroom, and vault at 45 New Bridge Road in Singapore. Bullion Star's solution for storing bullion in Singapore is called My Vault Storage. With My Vault Storage you can store bullion in Bullion Star's bullion vault, which is integrated with Bullion Star's shop and showroom, making it a convenient one-stop-shop for precious metals in Singapore. Customers can buy, store, sell, or request physical withdrawal of their bullion through My Vault Storage® online around the clock. Storage is FREE until 2016 and will have the most competitive rates in the industry thereafter. For more information, please visit Bullion Star here: Join GATA here: New Orleans Investment Conference http://noic2015.eventbrite.com/?aff=gata The Silver Summit and Resource Expo 2015 http://cambridgehouse.com/event/50/the-silver-summit-and-resource-expo-2... Support GATA by purchasing recordings of the proceedings of the 2014 New Orleans Investment Conference: https://jeffersoncompanies.com/landing/2014-av-powell Or by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| On gold, El-Erian contrives in the FT, Arends revels in willful ignorance at MarketWatch Posted: 03 Aug 2015 05:17 AM PDT 8:19a ET Monday, August 3, 2015 Dear Friend of GATA and Gold: In the Financial Times, Mohamed El-Erian, chief economic adviser to Allianz and chair of President Barack Obama's Global Development Council, contrives seven explanations for gold's unexpectedly poor performance lately, none of them involving surreptitious intervention in the gold market by central banks. His commentary is headlined "Why Gold Has Lost Its Shine for Investors" and can be found here: http://www.ft.com/intl/cms/s/0/4a29ee6e-350e-11e5-b05b-b01debd57852.html Your secretary/treasurer has managed to post a comment on the El-Erian's analysis, calling attention to the extensive documentation of that intervention. Over at MarketWatch, columnist Brett Arends asserts that he loves writing about gold because "nobody knows a damn thing" about it, acknowledges complaints about the possibility of market manipulation by central banks, and then runs away from the issue, as if the pursuit of relevant information has nothing to do with mainstream financial journalism. Arends' commentary is headlined "Are You Brave Enough to Profit from a Collapse in Gold?" and is found at MarketWatch here: http://www.marketwatch.com/story/are-you-brave-enough-to-profit-from-a-c... Your secretary/treasurer has managed to post a brief reply there too, again calling attention to the documentation of surreptitious intervention by central banks. CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT We Are Amid the Biggest Financial Bubble in History; With GoldCore you can own allocated -- and most importantly -- segregated coins and bars in Switzerland, Singapore, and Hong Kong. Switzerland, Singapore, and Hong Kong remain extremely safe jurisdictions for storing bullion. Avoid exchange-traded funds and digital gold providers where you are a price taker. Ensure that you are outright legal owner of your bullion. If you do not own segregated bullion that you can visit, inspect, and take delivery of, you are exposed. Crucial guides to storage in Singapore and Switzerland can be read here: http://info.goldcore.com/essential-guide-to-storing-gold-in-singapore http://info.goldcore.com/essential-guide-to-storing-gold-in-switzerland GoldCore does not report transactions to any authority. Safety, privacy, and confidentiality are paramount when we are entrusted with storage of our clients' precious metals. Email the GoldCore team at info@goldcore.com or call our trading desk: UK: +44(0)203-086-9200. U.S.: +1-302-635-1160. International: +353(0)1-632-5010. Visit us at: http://www.goldcore.com Join GATA here: New Orleans Investment Conference http://noic2015.eventbrite.com/?aff=gata The Silver Summit and Resource Expo 2015 http://cambridgehouse.com/event/50/the-silver-summit-and-resource-expo-2... Support GATA by purchasing recordings of the proceedings of the 2014 New Orleans Investment Conference: https://jeffersoncompanies.com/landing/2014-av-powell Or by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock Market Pullback at Hand, Gold About to Rally? Posted: 03 Aug 2015 04:22 AM PDT The stock market likely put in a failing 'b' wave top Friday at SPX 2114. The attached charts show potential down as low as SPX 1920 for the coming decline into the expected August 11, 2015 low to as high as 2010. The actual 40 week low is due on August 7, so I don't know if August 7 to 11 creates a double bottom reversal or not. Usually, these types of bottoms are spike bottoms. The last 20 week low in March ran 7 TD's down to its low. The rise last week reminds me of the late Nov/early Dec topping pattern (only that time it made a new high while this one has failed) and it projects down to August 11 and SPX 1930 based on the percentage differences, this one being 1.69 times as potent. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Real Message of Plunging Commodities Prices Posted: 03 Aug 2015 04:17 AM PDT The Chinese stock market recently saw its biggest selloff in 8 years as the dramatic 8.5% fall in Shanghai "A" shares also rattled markets around the world. For the past few weeks China has been balancing its desire to keep the equity market from a complete meltdown, while still courting the international investment community with hopes of being a dominant player in the capital and currency markets. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold – The More Hate, The More Bullish We Become Posted: 03 Aug 2015 04:02 AM PDT After gold’s breakdown on Sunday July 20th, we have seen an avalanche of negative commentaries. Admittedly, from a chart perspective the breakdown does not bode well. We have to get that straight. The technical breakdown is going to lead the price of gold in US dollar terms towards $1,000 /oz, potentially lower. But if we compare this breakdown in gold with the one in April and June of 2013, we would say the one from last week is a small dip on the long term chart while the one of 2013 was a real collapse. However, the negativity that was triggered by the latest small price drop is much stronger. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Silver Price - Are We There Yet? Posted: 03 Aug 2015 01:44 AM PDT For an individual to fix Libor is a crime. For a central bank to suppress European bond yields is an act of financial statesmanship. - Jim Grant ca·pit·u·la·tion kəˌpiCHəˈlāSH(ə)n/ noun | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold Price Near Intermediate Bottom Posted: 03 Aug 2015 01:19 AM PDT Let me remind everyone that intermediate cycle lows (ICL), and especially yearly cycle lows in the metals are always hard to hold onto. Even if you catch the exact bottom, they usually resist for a week or more and try to shake everyone off. The metals bottom differently than the stock market. When stocks form an ICL they rocket launch straight up. Traders get instant gratification and a market that quickly moves away from their stop. Gold on the other hand forms much more difficult bottoms. It will usually churn back and forth for a week or longer as traders try to decide whether or not a bottom is forming. It’s during this churn, and especially after a destructive bloodbath phase, that traders can rationalize any number of reasons to get knocked off the bull no matter how good the setup is. Understandably after witnessing a devastating bloodbath phase traders are nervous and skittish that the drop is going to continue. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Randall Abramson's Plan for Surviving Gold's Summer of Discontent Posted: 03 Aug 2015 01:00 AM PDT While Randall Abramson, CEO and portfolio manager with Toronto-based Trapeze Asset Management, freely admits that we are living through the summer of discontent in "Commodityland," he says investors should step back and look at commodities, especially gold, from a macroeconomic and historical perspective. In this interview with The Gold Report, Abramson discusses the magnet he expects to pull gold to around $1,400/oz inside 12 months, and he also offers some of his favorite names in the gold space. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Randall Abramson's Plan for Surviving Gold's Summer of Discontent Posted: 03 Aug 2015 01:00 AM PDT While Randall Abramson, CEO and portfolio manager with Toronto-based Trapeze Asset Management, freely admits that we are living through the summer of discontent in "Commodityland," he says investors... Visit the aureport.com for more information and for a free newsletter | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Strikes Against the Canadian Dollar Posted: 02 Aug 2015 05:00 PM PDT The Canadian dollar is the worst performing major currency over the past month. It has lost nearly 4.5% against the US dollar. That brings its year-to-date loss to almost 12%. There have been two main sources... |
The constant bombardment of anti-gold articles we are seeing in the mainstream media is unprecedented. The negative sentiment is unrelenting, with one journalist even calling gold a ‘pet rock.’ Clearly, with epithets like that, things have reached an emotional extreme, which is the important point that I think needs to be made.
Greek Stocks Reopen with a Thud
| You are subscribed to email updates from Save Your ASSets First To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google Inc., 1600 Amphitheatre Parkway, Mountain View, CA 94043, United States | |
No comments:
Post a Comment