Tuesday, December 6, 2016

Gold World News Flash

Gold World News Flash


Buy A House For 2.6 Ounces Of Gold

Posted: 05 Dec 2016 11:51 PM PST

Matterhorn AM

UNITED STATES OF AMERICA Destroyed by Greed / Banks (Full Documentary)

Posted: 05 Dec 2016 09:00 PM PST

Nothing more horrific than the cancer they have given us with the military industrial complex; Owned by the Israeli Zionists. That's why they hide within empires before they destroy them. IT'S ZIONISM! The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists ,...

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TRUMP/PENCE ASSASSINATION UNCOVERED FROM DARK WEBSITE

Posted: 05 Dec 2016 08:30 PM PST

Prayers for Trump his family and Pence his family..........and all Americans SATANISTS, at the top can stand being beat, they even try rigging things and still got beat, now the temper tantrum and CRYING will not stop until they get it back. The Financial Armageddon Economic Collapse...

[[ This is a content summary only. Visit http://financearmageddon.blogspot.com http://bobchapman.blogspot.com for full links, other content, and more! ]]

The E.U. falling apart?

Posted: 05 Dec 2016 07:00 PM PST

 Former EU Ambassador to the U.S. John Bruton on the impact of Italy's referendum vote on U.S. investors and the global economy. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers ,...

[[ This is a content summary only. Visit http://financearmageddon.blogspot.com http://bobchapman.blogspot.com for full links, other content, and more! ]]

Trump Sets The Stage For A Huge Gold Rally In 2017

Posted: 05 Dec 2016 06:38 PM PST

Global political tensions have not been this palpable since 9/11, when gold prices jumped 32.87% in a single day, and the amount of uncertainty being ushered in for 2017 promises to be great for the precious metal—our age-hold hedge against chaos and instability. For a fully-funded junior gold miner backed by heavy hitters in one of the world’s hottest venues--Fiore Exploration Ltd (TSXV–F.V) the timing is brilliant, the production costs fantastic, and the future golden.

A Banana Republic In The Making - "The Glue Of Reason In India Is Flaking"

Posted: 05 Dec 2016 06:25 PM PST

Submitted by Jayant Bhandari via Acting-Man.com,

A Brief Recap

India’s Prime Minister announced on 8th November 2016 that Rs 500 and Rs 1,000 banknotes will no longer be legal tender. Linked are Part-I, Part-II, Part-III, and Part-IV , which provide updates on the rapidly encroaching police state

Expect a continuation of new social engineering notifications, each sabotaging wealth-creation, confiscating people’s wealth, and tyrannizing those who refuse to be a part of the herd, in the process destroying the very backbone of the economy and civilization.

There are clear signs that in a very convoluted way, possession of gold for investment purposes will be made illegal. Expect capital controls to follow.   Chaos from people’s inability to access the money in their bank accounts is now spreading to the people who have so far been unaffected: the middle class.

This is a completely unnecessary man-made disaster, with the single aim of glorifying  Narendra Modi.

 

modi

Indian prime minister Narendra Modi

Photo credit: Reuters

 

 

Fracturing Institutions

Several petitions in various courts across India were immediately filed against the central bank, the Reserve Bank of India (RBI), for repudiating its IOU obligation which the currency bills represent, after Modi’s announcement on 8th November.

Several postponements later, the first hearing at the Supreme Court will likely take place on 5th December 2016, almost a month after the announcement of the ban. That does not mean that the court did not deliberate over “more important issues” affecting this wretched poor country.

It inter alia heard a petition and passed a judgment that makes playing the national anthem compulsory at cinema halls before the start of every movie, to promote nationalism. It also decreed that people have to stand up while the anthem is played. Henceforth one can be charged with sedition for not actively showing proper respect to the flag and the anthem.

Only someone very numb can avoid being horrified by this.

By law, the national anthem must henceforth be played in Indian cinemas before the start of a movie (as an aside, the anthem sounds actually interesting from a musical standpoint). Per the court’s order, everyone present must stand up while it is playing, so as to show proper respect. A failure to stand up can lead to an indictment for sedition, and sometimes it leads to offenders being berated and getting beaten up on the spot by irate nationalists. Happily, it is not yet mandatory to shout “Sieg Heil”. [PT]

 

Salaried middle class Indians — lacking moral instincts and incapable of imagining the concept of individual liberty in this extremely irrational society — are happy with the court’s decision. Insecure in their own skin, they prefer the comfort of the collective. They are the true source of this collectivist poison.

Indian courts are often referred to as “honorable court” and they very actively taking steps against anyone who shows the slightest of disrespect or challenges their judgments. So any direct challenge to their “authority” would be unwise.

Indian institutions have continued to deteriorate and mutate since the British left India. They are now merely hollowed out structures, devoid of any meaning or essence. We are in the final phase in which these institutions are crumbling, but in the meantime pomp and show are amped up to fool the gullible.

Indian culture in its immense irrationality does not provide the glue to even maintain these institutions, let alone improve on them. That glue could only have come from reason and moral instincts.

Anyone with a sense of history also realizes that India produced its finest leaders while it was still under the control of the British. It was during British rule that a cultural renaissance was happening in India, which ended with the emergence of the politicized, so-called independence movement.

Britain had set up institutions that allowed the ablest and the best to rise up. Not only is this no longer happening, but Indian institutions today actively suppress the ablest and the finest, as the recent judgment of the Supreme Court on the anthem exemplifies. This happens because most Indians euphorically support suppression of the individual both in theory and practice.

Institutions of liberty have mutated into institutions of slavery.  It is this inversion that is hastening the rapid decay of Indian society. India must eventually end up with institutions that reflect its underlying culture: a hugely fractured, tribal set-up, and very likely a disintegrated India.

 

ruins

Without reason, institutions are destroyed by entropy

Photo via indiaspend.com

 

The Forgotten Ones

Modi’s policies on demonetization are changing on a daily basis, sometimes more than once a day. This had to happen, for once you take up a mindless social engineering project of this enormity — killing 88% of monetary value in circulation overnight in a country where most people depend on cash — massive patch-up jobs have to be undertaken for the foreseeable future, helping India to degrade and sprint toward becoming a police state.

Alas, there are simply not enough patches available. India’s economy and society will are facing massive problems.  So far, it has been the poorest citizens who have suffered the most.

The horrendous struggles of more than 50% of the population, whose situation is worse than that of the average African on virtually every metric – who have no toilets, no electricity, no water supply, no access to even primary health care or basic education – will go unrecorded.

These poorest of India’s people are seen as nobodies. International organizations only have an interest in them in terms of aggregate headline figures — Gini coefficient, poverty level, population growth, etc. India’s middle class, while it might claim to be against the caste system, does not really see these people or account for them, as they are widely perceived as mere servants.

The western media, the IMF and many international economists — if they are paying attention to the current demonetization at all — are siding with the Indian government. It is as if the forces in favor of one-world government and their craving to control people’s cash and private lives have become their sole aim in life.

Obsessed with Keynesian economics, they think that all one has to do to increase wealth is to finely adjust the currency-printing machine. Most of these people have never studied philosophy, watched or understood human psychology, investigated society in its complexity outside of econometrics and statistics, or participated in running a business.

In their eyes, India is on the path of progress and institutional reform. From their perspective — colored by a rather simplistic, socialistic indoctrination — they are completely failing to see the situation in its entirety, particularly the massive suffering the ban on currency has inflicted on society and the inevitable systemic risks it has imposed on India’s future.

 

Residents of Sanjay Colony, a residential neighbourhood, crowd around a water tanker provided by the state-run Delhi Jal (water) Board to fill their containers in New Delhi June 30, 2009. Delhi Chief Minister Sheila Dikshit has given directives to tackle the burgeoning water crisis caused by uneven distribution of water in the city according to local media. The board is responsible for supplying water in the capital

This is the water supply for the lucky ones. Many do not have even this.

Photo credit: Adnan Abidi / Reuters

 

A Banana Republic in the Making

Our interest here is in exploring deeper undercurrents and what they mean for the future of India. Every single indication is that India is on an inevitable path to becoming a full-scale police state.  But the Indian police state will not be a Nazi-kind of system.

Being inherently disorganized, undisciplined and lacking the capacity to plan and having no commitment to values, India will go the way of autocracies in Africa, the Middle East, Pakistan and Bangladesh. With GDP per capita of USD 1,604, India is already drenched in poverty, and wallowing in suffering and disease.

In India, suffering and violence — not reason or moral instincts — bring stability. The concept of reason is conspicuous by its absence in Indian society. Such societies — as in the Middle East, Africa, and elsewhere in the backward part of the world — tend to go through a phase of violence before stability arises. If they could reason, they would be able to bypass the phase of violence.

The last thing anyone should do is to transplant such people into a different setting or to change the structure of their societies, as Modi has tried with the demonetization edict. People with tribal mindsets do not flourish, assimilate or evolve when transplanted or destabilized.

This has been the consistent experience from trying to enforce institutional changes in these countries through top-down mechanisms. In what way have Iraq or Libya become any better after their ruthless rulers were forcibly removed?

Societies lacking in reason also lack moral instincts. They are mostly oblivious to the pain of other people. In India, those from the lower castes — even though the formal caste system is crumbling  — do not register as human beings in the minds of members of the richer classes.

Scores of people have died because of lack of treatment, having to queue for too long in their old age, etc., but in the imagination of the salaried middle class they are mere numbers, all somehow contributing to the greater good.

 

Throngs of desperate people are storming a bank. How can such scenes possibly strike anyone as symptomatic of “good economic policy”? [PT]

 

But now, with the month of November having ended, salaried people are starting to get hit as well. The money that they thought was safe in the banks is no longer available. It is now their turn to join the queues and return home empty-handed, as the banks have mostly run out of cash.

 

banks-atms-crowd-pti_650x400_51478859671

The middle class is now starting to suffer as well, as cash in the banking system has been depleted

Photo credit: PTI

 

inside-the-banks

Pensioners and salary earners will likely change their view about the demonetization policy as they increasingly realize that their pensions and salaries are now stuck in the banks

 

Gold Bullion Is Now Effectively Illegal

Assaults on people’s private property and the integrity of their homes through tax-raids continue.  In a recent notification, government has made it clear that any ownership of jewelry above 500 grams of gold per married woman will be put under the microscopic scrutiny of tax authorities.

Steep taxes and penalties will be imposed on those who cannot prove the source of their gold. In India’s Orwellian new-speak this means that because bullion has not been explicitly mentioned, its ownership will be deemed to be illegal. Courts will do what Modi wants. Huge bribes will have to be paid.

Sane people are of course cleaning up their bank lockers. The secondary consequence of this will be a steep increase in unreported crimes, for people will be afraid of going to the police after a theft, fearing that the tax authorities will then ask questions. At the same time, the gold market has mostly gone underground, and apparently the volume of gold buying has gone up.

The salaried middle class is the consumption class, often heavily indebted. Poor people have limited amounts of gold. The government is merely doing what pleases the majority and their sense of envy, to the detriment of small businesses and savers. Now, the middle class is starting to face problems as well. This will worsen once the the impact of the destruction of small businesses becomes obvious.

India has always had a negative-yielding economy. It has suddenly become even more negative-yielding. Business risk has gone through the roof. Savers will be victimized. It is because of negative yields that Indian savers buy gold. They will buy more going forward.

Sane Indians should stay a step ahead of their rapacious government and the evolving totalitarian society, which are less and less inhibited by any institutions or values in support of liberty.

 

Conclusion

India will become a police state, likely with the full support of most Indians. Nationalism will be the thread that weaves them together. But it is a fake thread, devoid of any value. Eventually, there will be far too many stresses in the system, whose institutions are already in an advance stage of decay.

India as it exists today is a British creation. With the British now gone for 69 years, it is an entity has less and less reason to exist in its current form. The glue of reason that the British have applied is flaking, and it is doing so rapidly under the catalyst by name of Narendra Modi.

How the Left has Failed the West

Posted: 05 Dec 2016 05:30 PM PST

 Jay Fayza of TheRebel.media accuses the left of cowardice and hypocrisy for refusing to confront Islam's human rights record. MORE: The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers ,...

[[ This is a content summary only. Visit http://financearmageddon.blogspot.com http://bobchapman.blogspot.com for full links, other content, and more! ]]

Bill Holter: Fake news, fake markets

Posted: 05 Dec 2016 05:27 PM PST

8:25p ET Monday, December 5, 2016

Dear Friend of GATA and Gold:

Market analyst Bill Holter cites GATA's work today in his latest commentary at Jim Sinclair's JSMineSet.com, commentary headlined "Fake News, Fake Markets."

Mainstream news organizations like the Washington Post, Holter writes, are trying to discredit any anti-establishment news and commentary organizations by linking them with the Russian government. "If you disagree with the official story," Holter writes, "you are Russian propaganda."

Among the supposed Russian propagandists accused by the Post on the basis of anonymous sources are GATA's friends at King World News, an internet site that for years has given extensive publicity to the manipulation of the gold market by Western governments and central banks, an issue the Post doesn't dare touch:

https://www.washingtonpost.com/business/economy/russian-propaganda-effor...

http://www.propornot.com/p/the-list.html

Holter's commentary is posted at JSMineSet.com here:

http://www.jsmineset.com/2016/12/05/fake-news-fake-markets/

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org



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Golden Predator Finds New Veins of up to 30.8 g/t Gold;
Airborne Geophysics Completed at 3 Aces Project in Yukon

Company Announcement
Monday, November 21, 2016

VANCOUVER, British Columbia, Canada -- Golden Predator Mining Corp. (TSX.V:GPY, OTCQX:NTGSF) is pleased to announce additional surface exploration results and the results of airborne geophysical surveys from ongoing work at the 3 Aces project in southeastern Yukon, Canada. Highlights include:

-- Seven of Spades: Newly discovered zone with stacked flat lying quartz veins returning values up to 18.55 g/t gold.

-- Queen of Spades: Newly discovered zone with values up to 30.8 g/t gold.

-- Jack of Spades: Additional results from continuous panel sampling of a second higher bench returned 20 meters of 7.62 g/t gold including 11.7 g/t gold over 12.4 meters and 37.9 g/t gold over 1.7 meters.

-- Three of Spades: Additional assays have increased strike length of vein with returns including 6.95 g/t gold. ...

... For the remainder of the announcement:

http://goldenpredator.com/_resources/news/nr_2016_11_21.pdf



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:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16

EU Collapse -- Italy in Crisis: what happens next?

Posted: 05 Dec 2016 04:30 PM PST

 Matteo Renzi is set to resign after suffering a heavy defeat in a referendum on his flagship constitutional reforms. Italy's president, Sergio Mattarella, will now launch a round of talks on the formation of a new government. The Financial Armageddon Economic Collapse Blog tracks...

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End Times Headline News - December 5th, 2016

Posted: 05 Dec 2016 02:30 PM PST

End Times News This Is. We are in a war against extreme evil. These are your end times headline news from across the globe. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers ,...

[[ This is a content summary only. Visit http://financearmageddon.blogspot.com http://bobchapman.blogspot.com for full links, other content, and more! ]]

In The News Today

Posted: 05 Dec 2016 02:14 PM PST

Jim Sinclair's Commentary As investors, you, sour on gold, good to great things are taking place in its basic formula. Erdoğan's Call To Citizens: Sell Dollars For Lira, GoldDecember 2, 2016 President Recep Tayyip Erdoğan called on Turkish citizens on Dec. 2 to convert their foreign exchange into gold or the Turkish Lira, adding that... Read more »

The post In The News Today appeared first on Jim Sinclair's Mineset.

Three Reasons Why the Italian Referendum Matters to Trump

Posted: 05 Dec 2016 01:53 PM PST

This post Three Reasons Why the Italian Referendum Matters to Trump appeared first on Daily Reckoning.

Over the weekend the Italian referendum brought another important vote to Europe.  Italy voted a resounding "no" on toward a referendum that would've authorized a series of constitutional reforms taking away power from Italian provincial "states" and giving stronger power the central government (More on the referendum here).

On the surface, the impact of the Italian referendum might not seem to matter significantly to president-elect Trump.  But this backlash against the elites has found itself on both sides of the Atlantic, and that is worth paying attention to for the incoming administration.

Trump was the "anti-establishment" candidate. But as the latest anti-elite vote being handed to Italian Prime Minister Matteo Renzi might seem a world apart, it isn’t.

Here are three reasons why Italy’s referendum should matter to Trump and his incoming administration, their policies and how they engage Flyover America.

1. Drain the Swamp

Similar to the Flyover America messaging and connection that Donald Trump tapped into with his rise to a 2016 presidential victory, Renzi took office in 2014 under a similar anti-establishment campaign.

During Renzi's rise he even noted, “I'm the scrapper. I'm cleaning up the swamp.”  While there may be some near identical overlap in language, the similarity in stature between the U.S and Italy is worth considering.

Americans of both political party affiliations have voiced anger and outward frustration at the crony capitalism, pay-to-play politics and status quo operatives in government.  Italy voiced the same degree of frustrations.

Renzi was littered with connections to financial elites and was never truly able to commit to "cleaning" reforms.

Trump should pay attention to his campaign promises and the cautionary tales seeping from Italy.

Trump's campaign platform to "Drain The Swamp" was intended to reform and end special interests and rampant backroom deals in government.  This message was heard loud and clear when he was elected, and when Renzi was sent packing – and he would be wise to maintain such a policy.

2. Banking Reform

Italian banks currently face €360 billion in problematic loans that have accounted for more than 18% of all loans in the country and one third of bad loans in the euro area.  The Italian banks have morphed into a "too big to fail" environment.

Banks in the country have seen their shares down 50% since the beginning of 2016, compared to an overall average drop of only 7% for banks across the Eurozone.  Renzi did nothing to curb the banking ails in his country.  He then paid the price on a globalist backlash.

Economist and bestselling author Jim Rickards writes, "Italian banks are in deep financial distress (as were banks in Cyprus and Greece from 2011 to 2015). This involves the Banca Monte dei Paschi di Sienna (BMP), the world's oldest bank still in operation, founded in 1472."  Rickards continues, BMP is too-big-to-fail and failing. It's the "canary in the coal mine."

What Italian banks face might seem different than story in the U.S for Wall Street banks, the issues of "too big to fail" institutions is very real.

The six largest banks in the United States now control 96% of all the derivatives traded in the U.S. These same banks also control 45% of all the derivatives across the world.  The incoming Trump administration will be forced to reckoning with this as well.

Taking from the lessons delivered to Renzi, he would be wise to take the warning shots from the Italian referendum as a harsh reality for inaction in the financial sector.

3. The Elites

Matteo Renzi was once the candidate that was to bring about an anti-establishment, anti-Mafia type reform to Italy.  After entering office in February of 2014, he slowly began to back away from such a platform becoming connected to bankers and major financiers.

Many believe that the Italian referendum was as much about rejecting the proposed reform as it was about rejecting the establishment shift seen from Renzi's political positioning.

As Jim Rickards summarized, "First Brexit, then Trump, now the next anti-establishment shoe to drop is in Italy. It won't necessarily lead to the collapse of the euro or the immediate demise of the European Union, but it's clear the revolt against the globalist agenda continues."

During the campaign trail, Donald Trump blasted the coziness of Wall Street and Washington and repeatedly denounced GOP competition whom took money from Goldman Sachs and others from elite banking institutions.

Now that he has undergone selecting a cabinet, he has proposed Steven Mnuchin, a former Goldman Sachs executive as partner.  Trump even went as for as to have an inside Trump Tower meeting with Goldman Sachs president, Gary Cohn.

While Italian politics are vastly different from that of the United States, Donald Trump should take considerable lessons from the working class opposition to elites.

After all, of the five major leaders within the largest economies from the West at the onset of 2016, only one will likely be left through 2017 – Angela Merkel.  Times are tough for those who blindly disregard the once discredited working class.  A significant pushback against a globalist agenda carries on.

Stay tuned,

Craig Wilson, @craig_wilson7
for the Daily Reckoning

The post Three Reasons Why the Italian Referendum Matters to Trump appeared first on Daily Reckoning.

Gold Daily and Silver Weekly Charts - And in Their Triumph, Die

Posted: 05 Dec 2016 01:36 PM PST

Gold Seeker Closing Report: Gold and Silver End Mixed While Euro Reverses Higher

Posted: 05 Dec 2016 01:19 PM PST

Gold jumped $12.34 to $1188.04 at the open of trade last night before it chopped down to see a loss of $18.23 at $1157.47 by midmorning in New York and then bounced back to $1175.85 in early afternoon trade, but it then drifted back lower into the close and ended with a loss of 0.48%. Silver dipped to $16.501 before it rose to as high as $16.861 and then also fell back off, but it still ended with a gain of 0.36%.

Jack Kemps Gold Standard Act Of 1984 Shows Us How Its Done

Posted: 05 Dec 2016 11:02 AM PST

New World Economics

USAGold: Reflections on the election

Posted: 05 Dec 2016 10:02 AM PST

1p ET Monday, December 5, 2016

Dear Friend of GATA and Gold:

USAGold's December News & Views newsletter, edited by Michael Kosares, contains some pretty insightful observations on the economy and the U.S. presidential election from a dozen or so market analysts, many of them bearing heavily on gold. It's headlined "Reflections on the Election" and it's posted at USAGold here:

http://www.usagold.com/publications/NewsViewsDEC2016.html

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org



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Sandspring Resources Commences 2016 Exploration Campaign

Company Announcement
August 17, 2016

Sandspring Resources Ltd. (TSX VENTURE:SSP, US OTC: SSPXF) is pleased to announce commencement of the 2016 exploration campaign at its Toroparu Gold Project in Guyana, South America.

In 2015 the company completed a 3,700-meter diamond drilling program on the promising Sona Hill Prospect, located 5 kilometers southeast of the main Toroparu deposit. Sona Hill is the easternmost gold anomaly in a cluster of 10 gold features located within a 20-by-7-kilometer hydrothermal alteration halo around Toroparu. Drilling at Sona Hill in 2012 and in 2015 intercepted high-grade mineralization in both saprolite and bedrock, and confirmed the continuity and grade potential of the Sona Hill mineralization.

For the remainder of the announcement and highlights of the 2015 drill program:

https://finance.yahoo.com/news/sandspring-resources-commences-2016-explo...



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:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16

Europe in Slow Motion Collapse

Posted: 05 Dec 2016 10:00 AM PST

Gorka: Europe is collapsing 'Defending Jihad' Author Sebastian Gorka says it's like a mini Brexit inside Italy. The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers ,...

[[ This is a content summary only. Visit http://financearmageddon.blogspot.com http://bobchapman.blogspot.com for full links, other content, and more! ]]

Brazil Resources Announces Name Change to "GoldMining Inc." and New Symbols "GOLD" in Canada and "GLDLF" in the U.S.

Posted: 05 Dec 2016 10:00 AM PST

Brazil Resources Inc. (the "Company" or "Brazil Resources") (TSX-V: BRI; OTCQX: BRIZF) is pleased to announce that its board of directors has approved a change of its name to "GoldMining Inc.", effective December 6, 2016, in order to better reflect its existing business. The Company also announces that it will concurrently complete a continuation (the "Continuation") under the Canada Business Corporations Act (the "CBCA").

Who needs real metal if paper will do?

Posted: 05 Dec 2016 09:51 AM PST

And who needs gold miners if they can never figure out why the metal's price doesn't behave as it should?

* * *

Fears Rise over Future Supply of Gold

By Henry Sanderson
Financial Times, London
Monday, December 5, 2016

"For the first time in history, gold supply into the future is under enormous pressure."

The warning from Mark Bristow, chief executive of London-listed Randgold, encapsulates the gold-mining sector's woes.

Bullion's only modest price recovery this year compared with other commodities has led the industry to cut spending on exploration dramatically to less than $4 billion from almost $10 billion in 2012.

... Dispatch continues below ...



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Petropavlovsk, a gold miner with assets in Russia, is a case in point. It has cut its exploration budget by two-thirds.

"There is a chronic shortage of exploration money and as usual the gold price is not acting in the way everyone thought it would do," says Peter Hambro, chairman of the company.

This backdrop has left many in the industry forecasting a supply shortage by the end of the decade.

Mr. Bristow believes this supply shortage will be inevitable unless some major discoveries of large, high-grade ore bodies are suddenly made, "Which frankly seems a remote possibility." ...

... For the remainder of the report:

https://www.ft.com/content/9536ff90-b641-11e6-961e-a1acd97f622d

* * *

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:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16

Now Muslims can help bullion banks undermine gold investments with GLD

Posted: 05 Dec 2016 09:37 AM PST

Gold Standard Approved for Islamic Finance, Opening New Market

By Claudia Carpenter
Bloomberg News
Monday, December 5, 2016

Gold is acceptable for the first time as an investment in Islamic finance after the group that sets standards for the industry adopted Shariah-compliant rules for trading the metal.

The rules, approved Nov. 19, allow gold to be used in the $1.88-trillion Islamic finance business, the Accounting and Auditing Organization for Islamic Financial Institutions said Monday in a statement. The organization developed the standards with help from the producer-funded World Gold Council, which has said the new rules could spur demand for "hundreds of tons" of gold.

... Dispatch continues below ...



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Market Analyst Fabrice Taylor Expects K92 Shares to Rise
as Company Commences Gold Production and Gains Cash Flow

Interviewed on Business News Network in Canada, market analyst and financial letter writer Fabrice Taylor said shares of K92 Mining (TSXV:KNT) are likely to rise, even amid declining gold prices, because the company has begun producing gold at its mine in Papua New Guinea:

http://www.bnn.ca/video/fabrice-taylor-discusses-k92-mining~1008356

Taylor cited the company's announcement here:

http://www.k92mining.com/2016/11/6114/



The SPDR Gold Trust, the biggest exchange-traded fund backed by bullion traded under stock symbol GLD, will probably qualify, and the standard may open new demand to central banks, Mohd Daud Bakar, a Shariah scholar, said at a press conference in Dubai today. Comex gold futures wouldn't qualify because of a physical backing requirement, he said.

"We fully expect to announce imminently that GLD does qualify," Natalie Dempster, a managing director of the World Gold Council, said at the conference. Physical gold bars and coins may also qualify, she said. The rules require that a bank selling gold has to offer same-day settlement or has to demonstrate it can provide the exact gold being sold within one day, Dempster said. The standard also applies to silver, according to Hamed Hassan Merah, secretary general of the Islamic finance group. ...

... For the remainder of the report:

https://www.bloomberg.com/news/articles/2016-12-05/gold-standard-approve...

* * *

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10 Ways President Trump Could Change The World

Posted: 05 Dec 2016 09:30 AM PST

Donald Trump has beaten the odds to become the President of the United States. But what will change under his Presidency? Alltime10s investigates.  The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists ,...

[[ This is a content summary only. Visit http://financearmageddon.blogspot.com http://bobchapman.blogspot.com for full links, other content, and more! ]]

This Past Week in Gold Market

Posted: 05 Dec 2016 09:22 AM PST

Technical analyst Jack Chan charts the latest moves in the gold and silver markets.

Did Italy Just Kill the European Union?

Posted: 05 Dec 2016 09:00 AM PST

This post Did Italy Just Kill the European Union? appeared first on Daily Reckoning.

Another one bites the dust…

Italian Prime Minister Matteo Renzi is now the latest establishment puppet to be kicked to the curb by the wave of populism sweeping the planet.

The first victim was U.K. Prime Minister David Cameron following Brexit.

Then came the Clinton execution in the U.S. presidential election.

And now Renzi gets tarred and feathered, as the Italian people voted overwhelmingly to reject his constitutional overhauls in Sunday’s referendum.

Renzi resigned, setting up calls for a new Italian election.

That opens up the door for anti-European Union parties like the Five Star Movement to gain power.

And that means the future of the EU gets more precarious by the day…

Popular Revolt

The euro was down 1.4% against the U.S. dollar in early Asia trading following the vote. It hits its lowest level since March 2015.

Against the safe haven Japanese yen, the euro fell as much as 2%.

It has since rebounded. Markets are nervous but haven't totally fallen off a cliff.

Short-term investors with no plan are, of course, jittery because Sunday's referendum was a test of strength of Italian anti-EU forces. And with 59% of the vote, those forces passed with flying colors.

It's easy to see why. As The Wall Street Journal notes:

Since Italy joined the euro in 1999, gross domestic product has stagnated and government debt has swollen to 133% of annual economic output, the second-highest in the Europe after Greece.

Italy has been crippled by debt, high unemployment and a struggling banking sector for at least a decade. And the Italian people have had enough of Brussels-based bureaucrats.

Of course, the media is wringing its collective hands over this latest example of dangerous populism (otherwise known as "sovereignty") to rise up.

How dare regular working stiffs awake from the Matrix and reject elite ideals that only benefit the elite! Don't the proletariat trust the gruel served every morning?

Ball of Confusion

For markets, what this all boils down to is that absolutely nobody knows what the hell is coming next…

Is Italy's vote the tipping point that sends its banks into a downward spiral? Perhaps… or perhaps not.

As CNBC guesses:

The market’s fear is that a “No” vote would stymie any attempts to restructure the country’s banking system as the cost of financing the rescue through issuing bonds could prove prohibitive for the Italian government. This instability and uncertainty could spread to the rest of the eurozone economy.

And does the momentum from this Italian referendum continue to the French elections in early 2017?

Brexit then Trump then Italy's referendum then what exactly? How far does this wave go?

Don't get hung up on not having all of the answers right now. It's exciting to watch the system take an enema it clearly does not want.

The worst-case scenario for the EU is that this vote sets off a chain of events ultimately leading to an Italian banking collapse, a subsequent Italian exit from the eurozone, and an "about time" collapse of the entire EU.

Analysts yack on that this is highly unlikely. But Brexit and President-elect Trump were supposedly black swans.

Hold on. If political black swans are happening all the time, they are not black swans!

The only thing we do know at this moment is that the Italian referendum could open up a bigger can of worms in Europe than anyone expects… or that the EU can handle.

The bottom line is the New World Order is rightfully being turned upside down right before our eyes.

"Expect the unexpected" is the mantra you better have if you need to stay solvent and possibly get rich.

Trend following is prepared for both goals.

Are you?

Please send me your comments to coveluncensored@agorafinancial.com. I'd love to hear your thoughts. Please tell me exactly what you think of today's issue.

Regards,

Michael Covel
for The Daily Reckoning

The post Did Italy Just Kill the European Union? appeared first on Daily Reckoning.

Reflections on the election

Posted: 05 Dec 2016 09:00 AM PST

"In years to come," says Deutsche Bank's Jim Reid, "markets may well look back at the month just passed as one of the most pivotal in recent memory." The natural follow-up question might be "What exactly are we pivoting to?" Opinions abound on that score and below we have assembled a baker's dozen of what we consider the most insightful for your consideration. As always, we give special attention to the gold market.

Trump, The Fed and Systemic Risk

Posted: 05 Dec 2016 07:14 AM PST

This post Trump, The Fed and Systemic Risk appeared first on Daily Reckoning.

The most decisive factor in the implementation of the Trump economic plan is the reaction of the Federal Reserve. While a Fed rate hike in December is a certainty, the path of rates in 2017 following the December hike will be dispositive with regard to the success or failure of Trump's plans.

The Role of the Federal Reserve

The Fed can choose to be highly accommodative in the face of Trump's larger deficits. In effect, the Fed will not anticipate inflation, but will wait until it actually emerges. Actual inflation is still well below the Fed's target inflation rate of 2%. Since the Fed is targeting average inflation of 2%, it could allow inflation to run above 2% for a while, which would be consistent with 2% average inflation, given today's lower level.

The Fed also seeks negative real rates as a kind of stimulus measure. Negative real rates exist when the rate of inflation is higher than the nominal interest rate. This condition can exist at any level of nominal rates. For example, inflation of 3% with nominal rates of 2.5% produces a negative real rate of 0.5%.

Likewise, inflation of 4% with nominal rates of 3.5% produces the same negative real rate of 0.5%. No doubt the Fed does not want inflation of 3.5%. However, they can achieve negative real rates at any level by using financial repression to put a lid on nominal interest rates.

This is done by forcing banks to buy Treasury notes even if the Fed's balance sheet is stretched. It amounts to a kind of "shadow QE" using the bank balance sheets to park bonds instead of the Fed's balance sheet.

There are many potential catalysts that could trigger such a crisis, including Deutsche Bank…

This kind of accommodation to higher deficits is also called "fiscal dominance," an idea sketched by former Fed governor Rick Mishkin and his colleagues in academic literature. The idea is that Fed independence is mostly a mirage and the Fed will do what is needed to facilitate the fiscal wishes of Congress despite protests to the contrary.

Under fiscal dominance, low inflation is allowed to persist for an extended period of time. It will gradually erode the real value of the dollar and dollar-denominated Treasury debt. This is how the U.S. reduced its debt-to-GDP ratio from 1946 to 1970.

The problem with this "high pressure" approach is that inflation is not purely a monetary phenomenon, but it is also a behavioral phenomenon. Money printing alone does not produce inflation. The money printing must be combined with the willingness of individuals to borrow, spend and invest.

Such willingness is largely psychological — dependent on Keynes' animal spirits. However, once expectations shift from deflationary to inflationary scenarios, they are hard to shift back again. This could lead to a situation in which inflation expectations shift from 1% to 3%, but then shift quickly to 5% or higher.

The Fed assumes they can dial-down inflationary expectations from, say, 3% to 2%. But that may be wishful thinking. Any effort to raise rates to deal with higher inflation expectations may have the opposite of the intended effect as consumers view higher rates as a validation that inflation is getting out of control.

This is exactly what happened in 1974–81. The Fed started out behind the curve and stayed there until sitting Fed Chairman Paul Volcker's extreme measures in 1980–81.

Alternatively, the Fed could choose to lean into prospective inflation from Trump's policies by aggressively raising rates in 2017. This policy would be based on Janet Yellen's reading of the Phillips Curve and the well-accepted notion that monetary policy acts with a lag.

With unemployment at post-recession lows and initial claims for unemployment benefits at all-time lows, Yellen's analysis is that inflationary pressures from increasing wage demands are just a matter of time. Since monetary tightening works with a six-to-twelve month lag, it's important to raise rates now to keep ahead of that inflation.

Independent of the state of the labor markets today, the Fed is desperate to raise rates as much as possible. This should allow it to have some dry powder available for rate cuts in the next recession.

By Fed reckoning, the euphoria in the stock market after the election of Trump counts as an easing of financial conditions. Such easing is the perfect cover for an offsetting tightening by the Fed. The Fed will pursue a delicate balance between easing (from stocks) and tightening (from rates) that will allow it to achieve its rate normalization goal without putting the economy into a recession.

The last wild card in this mix is the dollar. A tightening cycle by the Fed will make the dollar stronger. This is deflationary because the U.S. is a net importer and a stronger dollar makes imported goods cheaper for U.S. consumers and other participants in the global supply chain.

The combination of a stronger dollar, imported deflation, and higher rates in an already weak economy could tip the U.S. into a recession.

And some consideration must be given to the worst possible economic outcome: stagflation. That is the unhappy combination of higher inflation and low real growth or recession.

Trump's big spending plans and animal spirits could produce the inflation while Yellen's rate hike and tight money produce the recession. A version of this played out in the United States from 1976–81.

Systemic Risk

On top of the macroeconomic risks, systemic risk is as dangerous as ever. It could come to play a large and unexpected role in Trump's economic plans. Too-big-to-fail banks are bigger than ever, have a larger percentage of the total assets of the banking system, and have much larger derivatives books.

In complex dynamic systems such as capital markets, risk is an exponential function of system scale. This means that the larger size of the system implies a future global liquidity crisis and market panic far larger than the Panic of 2008.

The ability of central banks to deal with a new liquidity crisis is highly constrained by low interest rates and bloated balance sheets, which have not been normalized since the last crisis. In the next panic, which could come at any time, central banks will turn to the IMF to provide needed liquidity.

That liquidity will take the form of the issuance of trillions of special drawing rights, SDRs (world money). This emergency SDR issuance will be highly inflationary, and effectively end the role of the U.S. dollar as the benchmark global reserve currency.

There are many potential catalysts that could trigger such a crisis, including Deutsche Bank, failed gold deliveries, an emerging markets dollar-denominated debt crisis, a natural disaster, etc. The catalyst for such a panic is irrelevant — what matters is the instability of the system as a whole.

When the catalyst is triggered and panic commences, impersonal dynamics take on a life of their own. These dynamics are indifferent to the political ideology or public policy of politicians.

A Trump administration could quickly be overwhelmed by a global liquidity crisis as the Bush administration was in 2007-08. In such a case, the global elites operating through the IMF, BIS and G20 will dictate solutions since they control the remaining liquidity levers, especially SDRs.

Trump could go along with the elite solution, which would involve cooperation with China, or he could fight the elites, in which case a new Great Depression could result.

Taking these various vectors into account, this is the most accurate assessment:

The global economy is poised on a knife-edge between inflation and deflation.

The inflationary vector could dominate quickly, based on a combination of Trump deficits and Fed accommodation. Conversely, the deflationary vector could dominate based on fundamental factors such as a strong dollar, deleveraging, demographics and technology combined with premature Fed tightening.

Waiting in the wings is a systemic crisis, which could result in inflation (due to massive SDR issuance) or deflation (due to lack of a coordinated global response).

Regards,

Jim Rickards
for The Daily Reckoning

 

The post Trump, The Fed and Systemic Risk appeared first on Daily Reckoning.

SWOT Analysis: Coin Collectors Are Stocking Up

Posted: 05 Dec 2016 06:18 AM PST

Even though investors can't seem to unload gold fast enough, coin collectors are benefitting, reports Bloomberg. U.S. Mint gold-coin sales jumped for a fourth straight month, the longest streak since 2003. And in India, despite the fall in sales of jewelry due to demonetization, gold imports remained stable at around 100 tonnes in November (from 97 tonnes in October).

Relief Rally Coming in Gold And Gold Stocks

Posted: 05 Dec 2016 06:05 AM PST

Last week we wrote that Gold was broken but noted the oversold condition in the precious metals sector as well as the relative strength in the gold stocks. At one moment last week, the gold stocks were trading above where they were in mid-November when Gold was trading some $60/oz higher. In other words, Gold plummeted $60/oz and made a new low yet the gold stocks did not. It took a bit longer than we expected but Gold and gold mining stocks may have started their rebound at the end of last week.

Dang It Gold’s Supposed to Go Up!

Posted: 05 Dec 2016 06:00 AM PST

We are seeing articles now that have moved on to the next old-new story. It seems that Trump is going to spend a lot on infrastructure. This will require massive deficits. But the market will distrust that the government can pay. So we will see a twin sell off of the US dollar in terms of other currencies, and Treasury bonds in terms of dollars. This will cause the mases to Discover Gold and the gold price is going to skyrocket. Click here to buy our fine gold, we have the very best gold.

Gold Relief Rally Coming and in Gold Stocks

Posted: 05 Dec 2016 03:35 AM PST

Last week we wrote that Gold was broken but noted the oversold condition in the precious metals sector as well as the relative strength in the gold stocks. At one moment last week, the gold stocks were trading above where they were in mid-November when Gold was trading some $60/oz higher. In other words, Gold plummeted $60/oz and made a new low yet the gold stocks did not. It took a bit longer than we expected but Gold and gold mining stocks may have started their rebound at the end of last week.

Breaking News And Best Of The Web

Posted: 05 Dec 2016 01:37 AM PST

Renzi loses Italian vote, populist parties energized. Euro falls, gold drops and US stocks pop. Austria chooses Green over far-right candidate for president. India’s war on cash may turn into war on gold. Political class still searching for an explanation (see “Best of the Web”). Trump’s cabinet takes shape, with mostly old and a few […]

The post Breaking News And Best Of The Web appeared first on DollarCollapse.com.

Major Royalty Companies All Good Buys Now

Posted: 05 Dec 2016 12:00 AM PST

Adrian Day reviews recent results at some of his favorite gold and silver royalty and streaming companies and asserts that they represent, as a group, the lowest risk way to gain exposure to the...

Visit the aureport.com for more information and for a free newsletter

Dollar Comes Back Bid, but Still Vulnerable to Corrective Pressures

Posted: 04 Dec 2016 04:00 PM PST

After softening ahead of the weekend, the US dollar has begun the new week on a firm note. It is gaining against most major and emerging market currencies. Outside of what appears to be a staged call between US President Elect Trump...

Jack Chan: This Past Week in Gold

Posted: 03 Dec 2016 12:00 AM PST

Technical analyst Jack Chan charts the latest moves in the gold and silver markets.

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