Tuesday, January 10, 2017

Gold World News Flash

Gold World News Flash

The U.S. Empire Would Have Collapsed Decades Ago If It Didn’t Abandon The Gold Standard

Posted: 10 Jan 2017 07:08 AM PST

The U.S. will never go back on a gold standard. The notion that a U.S. Dollar backed by gold would solve our financial problems is pure folly. Why? Because, if the U.S. Empire didn't abandon the gold standard in 1971, it would have collapsed decades ago. Unfortunately, some of the top experts in the precious metals community continue to suggest that revaluing gold much higher, to say…. $15,000-$50,000 an ounce, would bring confidence back into the Dollar. Not only will this not happen, it wouldn't save the Dollar even if it did.

Who Owns the World’s Largest Gold Hoards? – Not the Central Banks!

Posted: 10 Jan 2017 07:06 AM PST

It's a common misconception that the world's major central banks and monetary authorities own large quantities of gold bars. Most of them do not. Instead, this gold is owned by the sovereign states that have entrusted it to the respective nation's central bank, and the central banks are merely acting as guardians of the gold. Tracing the ownership question a step further, what are sovereign states?

Ringing in the New Year with a Bullish Case for Gold

Posted: 10 Jan 2017 07:04 AM PST

You could say gold miners struck gold in 2016. The group, as measured by the NYSE Arca Gold Miners Index, finished the year up an amazing 55 percent, handily beating all other asset classes shown below. Miners were followed by commodities at 25 percent and silver at 15 percent. Gold finished up 8.6 percent, its first positive year since 2012, when it gained 7.1 percent. (Keep your eyes peeled for our forthcoming annual periodic table of commodity returns, one of our perennially popular pieces!)

Asian Metals Market Update: Jan-10-2017

Posted: 09 Jan 2017 11:03 PM PST

The US dollar's fall is profit taking before Trump's swearing in which if it continues till Thursday can result in a technical breakdown. Weakness in the US dollar resulted in the rise of gold, silver and industrial metals. Crude oil fell as traders assessed supply side pressures for the rest of the quarter. Natural gas also had a technical knock down.

Ronan Manly: Who owns the world's largest gold hoards? Not central banks

Posted: 09 Jan 2017 04:23 PM PST

7:23p ET Monday, January 9, 2017

Dear Friend of GATA and Gold:

The largest gold reserves around the world, gold researcher Ronan Manley writes today, are for the most part not owned by central banks but rather by national governments that happen to vault them with central banks. So, Manley adds, the secrecy woven around the reserves by central banks is arrogant and inappropriate and all data about them should be made public as a matter of form. Manly's commentary is headlined "Who Owns the World's Largest Gold Hoards? Not the Central Banks" and it's posted at Bullion Star here:


CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.


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:


Taylor cited the company's announcement here:


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Debt is the problem and rising rates will be ruinous, Embry tells KWN

Posted: 09 Jan 2017 02:47 PM PST

5:45p ET Monday, January 9, 2017

Dear Friend of GATA and Gold:

The huge increase of debt in recent decades is the world's overwhelming financial problem, Sprott Asset Management's John Embry tells King World News today, adding that rising interest rates will crash both stocks and bonds. Meanwhile, Embry adds, the monetary metals are cheaper than ever relative to the volumes of money and credit in the world. An excerpt from Embry's interview is posted at KWN here:


CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.


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:


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:


Gold Seeker Closing Report: Gold and Silver Gain Almost 1% While Dow Drops With Dollar

Posted: 09 Jan 2017 01:46 PM PST

Gold gained $12.88 to $1185.88 in early afternoon New York trade before it drifted back lower into the close, but it still ended with a gain of 0.81%. Silver surged to as high as $16.69 and ended with a gain of 0.55%.

Killer Cash!

Posted: 09 Jan 2017 01:05 PM PST

This post Killer Cash! appeared first on Daily Reckoning.

The global elites' latest volley in the "war on cash" is a weird one. They're telling us cash is — drumroll, please — a public health issue.

If you've been reading us for any amount of time, you're familiar with the war on cash — the increasing push to get us all to perform our transactions electronically, the better to be tracked and taxed. Former Treasury Secretary Larry Summers figures the least that could be done is abolish the $100 bill; Harvard economist Ken Rogoff would just as soon do away with cash altogether, making his case in a book called The Curse of Cash.

There's a compelling investment angle to the war on cash… and we're not talking about anything like keeping gold in a safe at home. We'll get to that shortly.

As you might already know, most of the arguments against cash are a variant on the following proposition: If we don't do away with cash, then the money launderers and drug runners and terrorists win. Which is what makes the health gambit, if nothing else, novel…

"Studies have piled up in recent years describing exactly how filthy — specifically how bacteria-laden — our dollars and cents can be," says an article in Scientific American.

"Fecal bacteria and other pathogens may have hitched a ride from someone's hands, nose or apron onto our cash. And yeast or mold might have taken hold, too. The result could be a durable risk to our health whenever our money changes hands."

Oh noes, teh germs!

The article spotlights a number of studies on the subject down through the years. For instance, "a 2010 analysis by Australian researchers looked at the actual number of bacteria per square centimeter on various bank notes and found that a U.S. note contains 10 such microbes per square centimeter."

Cash: It can kill you!

While paying lip service to issues like privacy, "if the question of a cashless society is approached purely from a public health standpoint, the answer seems clear."

Yes! If we all just went around waving our smartphones to conduct commerce, we'd prevent X number of deaths every year and save Y billion dollars in health care costs. That's what the research shows us, right?

Uh, no: "There is no definitive research that connects enough dots to prove dirty money actually makes people sick."

Oh, well…

"For those few remaining who steadfastly refuse to ever give up cash, forget about it: A global cashless society is fast becoming a reality," says the veteran trend forecaster Gerald Celente, who joined the Agora Financial team last summer.

Aside from the agenda of the global elites, consider this: "The massive millennial generation across the globe shows minimal resistance against the imminent demise of cash. Indeed, digital dollars already are the way of the world. There are no 'Occupy Cash' movements anywhere.

"The convenience millennials naturally cherish, and more boomers and seniors are forced to accept, is accelerating the transition to a cashless society.

"Big Brother will watch even more how you spend your money, conduct your daily life and engage the world around you. Your privacy will be lost. Your spending will be a matter of record.

"Without hard cash, every digital purchase logged is subject to taxes, fees and penalties. Owe back taxes? Overdrawn on your account? Had a lien filed against you? Forgot a mortgage payment? In a cashless society, government or big banks can more easily take your money without resistance or due process."

But a question remains: How will the elites rope in the 7.7% of Americans who have no bank account? Therein lies a profitable tale…

Best Regards,

Dave Gonigam
for The 5 Min. Forecast

The post Killer Cash! appeared first on Daily Reckoning.

Frank Holmes: Gold Rally Extremely Likely in January and February

Posted: 09 Jan 2017 12:16 PM PST

Mike Gleason (Money Metals Exchange): We are fortunate today to be joined by Frank Holmes, CEO and Chief Investment Officer at U.S. Global Investors. Just recently Mr. Holmes received another award from the Mining Journal and was named America's Best Fund Manager for 2016, one of many awards he's received now in the mining industry for his fantastic track record. He is also the co-author of the book The Gold Watcher: Demystifying Gold Investing and is a regular guest on CNBC, Bloomberg, Fox Business, as well as right here on the Money Metals Podcast.

Gold Stocks - How Bull Markets Work

Posted: 09 Jan 2017 12:05 PM PST

Gold and Silver Index Folks, prepare to get schooled on how bull markets work.

Nomi Prins: This is an Ongoing Financial Crisis

Posted: 09 Jan 2017 09:47 AM PST

This post Nomi Prins: This is an Ongoing Financial Crisis appeared first on Daily Reckoning.

Nomi Prins while in Berlin, Germany in December 2016 joined investigative journalist Lars Schall to discuss what she has identified as an ongoing financial crisis.  During the in depth conversation they highlight the indicators that signal we are in an ongoing financial crisis, how involved the big banks are in the existing monetary system and exactly why the next global financial crash will be the worst experienced yet.

Nomi Prins is the best selling author of All the Presidents' Bankers and is currently working on her latest book, Artisans of Money.  Prins' is a former Wall Street insider who has worked previously at some of the largest banks in the world including Goldman Sachs, Lehman Brothers and Chase Manhattan Bank.  She continues to be a strong advocate for Glass-Steagall Act legislation and financial reforms of Wall Street.

When posed with the question regarding the financial crisis that began in 2008, and what may be in store for the ongoing crisis she remarked, "If we look at why the problems of 2008 happened, it was because issues in the United States financial structure at the beginning of the 2000's had not been solved. We had deregulation of the financial industry in 1999, which allowed banks to consolidate deposits and loans.  It allowed them to participate in more speculative betting activities.  After that, two years later, we had a minor recession where scandals filled in our energy, telecoms and banking sectors. We then had substantially lower rates stemming in 2002 and 2003 that made banks turn to find something else they could make a lot of money. That something else was subprime mortgages that had been repackaged and sold multiple times over.  When we get to 2007 and 2008, all of that fell apart."

"What is different now, and why it is worse, and why we are only in the first phase of a much bigger financial crisis is because we have had eight years of buildup.  From the central bank’s perspective, they are coming in and subsidizing the system – what I call artisanal money – where you manufacture money, print it and do not separate banks, regulate them or reduce any real risks they impose on the economy.  Now, we are falling from a height where even greater debt, capital and cheap money has all been pushed into the financial system. When we fall is in question, but that we will fall is definite."

"In the wake of the crisis the Federal Reserve had a different role.  That was to organize and coordinate its own monetary policy throughout the world.  This began in the wake of the financial crisis in the United States, which was to reduce rates to zero and to adopt a massive quantitative easing (buying additional debt securities into the books of the Fed).  It was not simply lending at zero, it was making money available in various ways to the big banks.  It was also buying debt securities, effectively making money available to the government, all through the Fed in order to preserve the financial system and give the big banks liquidity needed to continue to be big.  The Fed then exported this policy throughout the world. It became something that was coordinated with the Bank of Japan, the European Central Bank and others. This is what we are living through today."

When asked about the big banks and their involvement in the crisis she responded, "They were the same big banks that pushed the deregulation in 1999.  They pushed deregulation of Glass-Steagall Act from 1933, which separated their functions, and was eventually repealed.  It allowed them to consolidate their size, risk and complexity into one “house.”  These are the same banks at the core of the financial crisis.  They were the big six banks in the United States that include JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley. They are still the banks that, since the crisis, have become about 43% bigger in the total amount of deposits they hold. They’ve almost doubled in terms of the amounts of assets that they hold – relative to the amount prior to the crisis – and still maintain 95-97% hold on all of the trading assets that exist in the U.S banking sector. The bigger banks have become bigger since the crisis."


She then remarked on the problematic standings of the U.S central bank, "The idea that the Federal Reserve is that it is technically not a government entity but it is not a private institution.  It is somewhere in the middle.  The reality is that it is constructed with shares and proportionally allocated by the banks that ultimately get help from the Federal Reserve.  For example, the biggest banks have a higher percentage share of membership in the Federal Reserve than the smaller banks.  When there is a problem they have a bigger call on that. Either the banks are very greedy, or they continue to require money that has no cost because they do not have the ability to function as financial institutions without that external help. Or both."

The interviewer then asked about the influence of China's alternative approach to the West and the increasing Eastern shift  following the 2008 financial crisis.  Lars Schall noted an IMF report as saying, "The gold bullion component of monetary gold is the only case of a financial asset with no counterpart liability."

To that, alternative currency discussion and the ongoing financial crisis Prins' highlights, "One of the things that China has done is seek to establish itself as more of a dominant reserve currency.  Up until October of last year China was not in the special drawing rights basket of the IMF. A standing in which the U.S dollar is still the supreme currency because it is the currency of choice. This means that most central banks have it in their reserve. To that extent the Federal Reserve, as a dominant central bank, has more control over global policy.  It exerted that power in the wake of the financial crisis.  China was not able to exert any of that. So what they did was find a new way to get into the SDR and have their currency adopted into more of a global reserve basis and come in at the middle reserve in the basket of currency players."

"Gold is the other side of that. It would allow China to be able to maintain greater stability.  Having gold is a way to get back to a more independent equilibrium.  One element is central banks and currency… the other is to have something else to be used in the event of a crisis.  It offers an element to create stability.  In terms of buying gold, it is a way to move away from the dependency of the dollar."

Speaking to the same perceived Chinese concern out of the West, when asked about accusations over concern over currency manipulation she noted, "It has been policy of individuals from both party lines to bash China as a currency manipulator.  President Obama's first Treasury Secretary and head of the Federal Reserve all had labeled China as a currency manipulator.  Donald Trump has simply maintained this idea of blaming China for trade and deficit issues that the United States has experienced. Trade is the bigger issue.  I see Trump continuing to go about potential bilateral and individual trade agreements.  China will also continue to seek alternative trade options to the West."

To see the full interview with Nomi Prins and Lars Schall click here.


Craig Wilson, @craig_wilson7
for the Daily Reckoning

The post Nomi Prins: This is an Ongoing Financial Crisis appeared first on Daily Reckoning.

2016 Past is 2017 Prologue

Posted: 09 Jan 2017 09:23 AM PST


Chart of the Day - Gold and Silver Index

Posted: 09 Jan 2017 07:12 AM PST

Folks, prepare to get schooled on how bull markets work.

Gold miner Centamin set to hike dividend on record production 

Posted: 09 Jan 2017 06:43 AM PST

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

Obama’s Blunder; Trump’s Gambit

Posted: 09 Jan 2017 06:37 AM PST

This post Obama's Blunder; Trump's Gambit appeared first on Daily Reckoning.

[This post originally appeared in the Darien Times]

President Obama has conducted the most deleterious foreign policy of any U.S. president since Woodrow Wilson. This is not due just to a dead ambassador on the streets of Benghazi, a phony red line in Syria which led to 400,000 dead, two million wounded, and two million refugees, losing Egypt to Islamic radicals, or empowering a terrorist regime in Iran. Those developments alone are enough to rank Obama among the worst foreign policy presidents. Obama's most egregious error is far worse – his inability to grasp the balance-of-power dynamics among the U.S., Russia and China. Yet, Obama's blunder is Trump's opening to rescue U.S. foreign policy from grave weakness, and restore U.S. leadership to the world.

There are three primary powers in the world – the U.S., Russia, and China. All other nations are secondary allies, or tertiary powers. In a three-power system, the object of foreign policy for a primary power is to align with one of others to the detriment of the third. A great power that does not pursue this policy becomes the victim of an alliance between the remaining two. Such an alliance need not be permanent; it can shift, as was the case with Nixon's opening to China, which put Russia on the defensive and led eventually to the downfall of the Soviet Union.

This dynamic is not difficult to grasp. Adults playing the board game Risk know that while the game begins with six players, it quickly evolves to three survivors. At that point, it is imperative for two of the players to align and destroy the third by systematically attacking it, and refraining from attacking each other. The victim is quickly wiped from the board.

Of course, geopolitics is more complex than Risk. Players are rarely removed from the board; they are just temporarily advantaged or disadvantaged in pursuing their national goals. But, the three-power dynamics of two-against-one are fundamentally the same. Bismarck knew this. Kissinger knows it today. Obama does not.

Obama subscribed to a post-national globalist ideology, which finds no correlative in the real world outside of faculty lounges and Georgetown salons. In Obama's worldview, nation states are a problem, not a solution. Global goals on issues like climate change, trade, the OECD's world tax program, and the IMFs world money program require global institutions. Nation states are temporary impediments until global governance can be built through non-democratic transnational institutions.

Meanwhile, Russia and China never lost sight of their national interests. While their leaders dutifully attend the same multilateral venues as Obama, such as the G20, IMF, and regional summits, they persistently put Russia and China first. For Russia and China, the world is a dangerous place in which national interest is advanced ruthlessly; not Obama's Kumbaya-laced globalist fantasy of one world order.

This hard-edged realism by Russia and China combined with a lack of realism by Obama has led to the worst possible outcome for the United States. Russia and China have become deeply intertwined and are building a durable alternative to the post-war dollar-based system dominated by the U.S.

These Russia-China initiatives include deepening cooperation through the BRICS, the Shanghai Cooperation Organisation, the Asia Infrastructure and Investment Bank, the New Silk Road, and joint efforts in weapons systems and space.

Most threatening is that in the past ten years, Russia increased its gold reserves 203%, and China increased its gold reserves an estimated 570%. Such gold accumulations have no purpose other than to lay the foundation for a non-dollar based international monetary system. No great power has prevailed long without a great currency. When confidence in the dollar fails, U.S. power will fail with it.

Obama blundered because he allowed Russia and China to pursue the two-against-one dynamic leaving the U.S. as the odd man out. Fortunately it is not too late to reverse this dynamic. Signs from the new Trump administration are encouraging. Trump's early actions and appointments suggest he understands the precarious position of the U.S., and is already moving to change the status quo.

Russia is a more natural ally of the U.S. than China. Russia is a parliamentary system, albeit with autocratic overtones; China is a Communist dictatorship. Russia has empowered the Orthodox Church in recent decades, while China is officially atheistic. Russia is encouraging population growth while China's one child policy and sex-selective abortions resulted in the deaths of over twenty million girls. These cultural aspects – elections, Christianity, and family formation – provide Russia with a natural affinity to western nations. Russia is also superior to China militarily despite recent Chinese advances. That makes Russia the more desirable ally in any two-against-one scenario.

The most powerful argument for embracing Russia to checkmate China is energy. The U.S. and Russia are the two largest energy producers in the world. U.S. energy production is set to expand with the support of the Trump administration. Russian production will expand also based in part on initiatives led by Rex Tillerson of Exxon, soon to be Secretary of State. China has few oil and natural gas reserves and relies heavily on dirty forms of coal and some hydropower. The remainder of China's energy needs is met through imports.

An energy alliance between the U.S. and Russia, supported by Saudi Arabia, could leave the Chinese economy and, by extension, the standing of the Communist Party of China, in jeopardy. That threat is enough to insure Chinese compliance with U.S. aims.

An emerging U.S.-Russian entente could also lead to the alleviation of western economic sanctions on Russia. This would open the door to an alliance between Germany and Russia. Those two economies have near perfect complementarity since Germany is technology rich and natural resource poor, while Russia is the opposite.

Isolation of Russia is a fool's errand. Russia is the twelfth largest economy in the world, has the largest landmass of any country in the world, is a nuclear power, has abundant natural resources, and is a fertile destination for direct foreign investment. The Russian culture is highly resistant to outside pressure, but open to outside cooperation. Just as fifty years of U.S. sanctions failed to change Cuban behavior, U.S. sanctions will not change Russian behavior except for the worse. Engagement, not confrontation is the better course. The new Trump administration gets this.

U.S. voices such as John McCain, Mitch McConnell and Lindsey Graham are quick to say, "Russia is not our friend." Why not? Could it be because President Obama publicly humiliated Vladimir Putin by saying he was, "like a bored kid in the back of the classroom"? Could it be because Obama proclaimed that Russia under Putin is "on the wrong side of history." In fact, Putin's sense of history goes back to Peter the Great. Obama's does not seem to go back further than 1991.

Most of the tension in U.S. – Russia relations today stems from Russia's invasions of Crimea and eastern Ukraine in 2014. But, Russia's Crimean invasion should have come as no surprise. U.S. and British intelligence services and foreign NGOs destabilized the pro-Russian elected government in Kiev in early 2014 causing Ukrainian President Yanukovych to flee into exile in Russia.

Ukraine was always a bridge too far for NATO and EU membership. Better to leave Ukraine as quasi-neutral buffer between east and west than put its status in play. Ukraine has always been culturally divided. Now it is politically divided as well. Russia's hand in Ukraine was forced by the shortsighted western interventions of Obama and David Cameron. Obama will soon leave the scene; Cameron already has. Putin is the last man standing, unsurprising for a man whose pursuits include martial arts and chess.

Fortunately it's not too late to reestablish a balance of power that favors the United States. China is a rising regional hegemon that should be constrained. Russia is a natural ally that should be empowered. The U.S. has blundered in its foreign policy for the past eight years. A new Trump administration has an opportunity to reverse those blunders by building bridges to Russia, and it seems to be moving in that direction.


Jim Rickards
for The Daily Reckoning

The post Obama's Blunder; Trump's Gambit appeared first on Daily Reckoning.

Agri-Stocks and Agri-Food Prices: Both Strong

Posted: 09 Jan 2017 03:02 AM PST

When has food been more valuable than technology? Aside from all of history, that was especially true in 2016. Chart below is our Investment Scoreboard for 2016. In it are portrayed the returns for a variety of important market measures. Gold stocks, Silver, oil, and Agri-Equities clearly owned the year. Agri-Equities, number four in chart, substantially outperformed most of the equity markets. In 2016 food was clearly more valuable than those tired, old, over owned technology and internet stocks as indicated by the NASDAQ 100 being far down in the list.

Gold Stocks Leading but Approaching Trump Resistance Levels

Posted: 09 Jan 2017 02:53 AM PST

Although we expected a rally in the gold mining sector, we have been surprised by its strength and recent buying pressure. From the lowest ticks, Gold has rallied less than 6% but GDX has gained 25% and GDXJ has soared 36%. This rebound adds to the evidence that the gold stocks are leading the metal. That being said, the gold stocks are approaching some strong resistance levels which coincide with Trump's election victory.

Top Ten Videos — January 9

Posted: 08 Jan 2017 04:01 PM PST

Julian Assange on why Russia didn’t do it. Nomi Prins on why the banks are an even bigger problem now than in 2008. Jay Taylor and Alasdair Macleod on why you really need more gold.                    

The post Top Ten Videos — January 9 appeared first on DollarCollapse.com.

Jack Chan: This Past Week in Gold

Posted: 07 Jan 2017 12:00 AM PST

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

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