Gold World News Flash |
- Gold & Gold Stocks Readying for Upturn Against Stocks
- Possible Profit-Taking Event in Progress
- Mogambo Hunka Hunka Bunker (MHHB)
- Don't Be A Lemming—Roger Wiegand's Method of Precious Metals Investing
- UNSUSTAINABLE
- Asian Metals Market Update
- What to do When All Hell Breaks Loose
- ?Fish Mouth Spread? Pattern Suggests USD Rally Close At Hand
- Lost Confidence Can’t Be Restored & Gold’s Final Move
- Hollywood’s Last Stand
- Gold Seeker Closing Report: Gold and Silver End Near Unchanged
- Another thoughtful speculation on a huge upward official revaluation of gold
- Gold Slips Intraday but Ends Day Unchanged
- Gold suppression researcher Dimitri Speck interviewed by Lars Schall
- Gold, Molotov Cocktails, Rubber Bullets, Teargas: A Rift In Greece
- Europe & The Major Breakout For Gold Is Still In Front Of Us
- Gold, Molotov Cocktails, Rubber Bullets, And Teargas: A Rift In Greece
- Gold and Gold Stocks Readying for Upturn Against Stocks
- In The News Today
- How to Find Silver: The Art of Drilling
- How This Ends and What You Can Do To Protect Yourself
- The Gold Price Lost $2.20 to Close at $1,763.20
- Guggenheim On Gold And The 'Unsustainable' Return To Bretton Woods
- Don't Be a Lemming—Roger Wiegand's Method of Precious Metals Investing
- Gold Daily and Silver Weekly Charts - Silver Resilient - US Debt Auctions
- The Politics of Gold
- Putting on My Top Hat
- Comstock Drills Into Gold Discovery at QV
- Gold investment could double on economic woes – Coutts
- Silver Time-frame Trend Probabilities
| Gold & Gold Stocks Readying for Upturn Against Stocks Posted: 11 Oct 2012 08:15 AM PDT In the wake of the Fed's announcement of open-ended or as I like to call it, permanent quantitative (QE) easing, mainstream advisors and pundits have found another way to promote stocks. Recently I heard one popular media pundit say based on QE buy stocks but not gold stocks. Also, pundits are instructing followers to buy Apple based on QE. What nonsense.
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| Possible Profit-Taking Event in Progress Posted: 11 Oct 2012 08:10 AM PDT Since the breakdown out of the bear flag on the dollar index hasn't followed through, the odds now favor that the dollar has generated an intermediate degree bottom. First off this should be a countertrend move as I think the three year cycle has already topped. Based on the intermediate cycle count in the stock market the dollar probably doesn't have more than 3-4 weeks before this rally rolls over and begins another leg down.
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| Mogambo Hunka Hunka Bunker (MHHB) Posted: 11 Oct 2012 08:05 AM PDT I was hunkered down in the Mogambo Hunka Hunka Bunker (MHHB) after having worked myself into another panic about the inescapable inflationary terror that will surely follow the monstrous amounts of money being created by the corrupt Federal Reserve and other central banks, including the horrid International Monetary Fund.
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| Don't Be A Lemming—Roger Wiegand's Method of Precious Metals Investing Posted: 11 Oct 2012 08:03 AM PDT The major financial markets are dominated by large funds that behave like lemmings—follow the herd and suffer the consequences. Investors should not fall for the commonly held myth that all professionals have an edge over smaller institutional and individual investors. In this exclusive Gold Report interview, Roger Wiegand, editor of Trader Tracks Newsletter, discusses the criteria he uses to select the best mining and exploration companies.
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| Posted: 11 Oct 2012 01:00 AM PDT from The Economic Collapse Blog:
Read More @ TheEconomicCollpaseBlog.com
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| Posted: 11 Oct 2012 12:01 AM PDT Gold, silver, copper and crude oil have performed very well despite US dollar gains and the stock market's fall. Investor sentiment has turned cautious on global growth warnings. The inability of quantitative easing three (by the federal reserve) to give a very sharp rise to commodities and equity markets (other than Asia) can result some three percent to four percent correction first before the next leg higher.
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| What to do When All Hell Breaks Loose Posted: 10 Oct 2012 11:05 PM PDT from TheAlexJonesChannel: Alex talks with engineer, designer, and author Matthew Stein about the impending collapse and how we can prepare for it. Stein is the author of When Technology Fails and When Disaster Strikes.
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| ?Fish Mouth Spread? Pattern Suggests USD Rally Close At Hand Posted: 10 Oct 2012 10:24 PM PDT Traders have created a rather large “fish mouth spread pattern”again in the US dollar Index. In the past this fish mouth spread was spot on in suggesting that a Dollar rally was close at hand…Will the results be any different this time? So says Chris Kimble ([url]http://blog.kimblechartingsolutions.com[/url])*in edited excerpts from his latest blog* entitled Traders position is suggesting a strong U.S. Dollar rally is close at hand! [INDENT]Lorimer Wilson, editor of [B][COLOR=#0000ff]www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and www.munKNEE.com (Your Key to Making Money!), has edited the article below for length and clarity – see Editor's Note at the bottom of the page. This paragraph must be included in any article re-posting to avoid copyright infringement.[/COLOR][/B] [/INDENT]Kimble goes on to say, in part: The same fish mouth spread took place in 2009 and 2011, resulting in large U.S. Dollar rallies. Currently another...
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| Lost Confidence Can’t Be Restored & Gold’s Final Move Posted: 10 Oct 2012 10:01 PM PDT  Today a legend in the business surprised King World News when he said, "Gold is going to keep going up until the US dollar is finished. So the reign of the US dollar will come to an end." Keith Barron, who consults with major gold companies around the world, and is responsible for one of the largest gold discoveries in the last quarter century, also said, "At that point the global collapse will be in full-swing."On the heels of another major country being downgraded yesterday, Barron also warned, "The real problem here is that you can't restore confidence at this point in the cycle." Here is what he had to say: "Europe is getting worse all the time. The IMF is now saying that European banks may have to sell off an additional $4.5 trillion of assets. At the same time, they are trying to push various governments for increased austerity measures, and it's not working. Either the countries are simply not implementing the increased austerity or they are not implementing them to the extent that the troika wants."
This posting includes an audio/video/photo media file: Download Now | ||||||||||||
| Posted: 10 Oct 2012 10:00 PM PDT from Silver Vigilante:
The "Copyright Alert System." That's the initiative backed by the Obama Regime at the behest of his Hollywood and major record label masters to terminate internet access for online "pirates." The plan has been four years in the making and includes participation by AT&T, Cablevision Sytems, Comcast, Time Warner Cable and Verizon. After four offenses, the providers will initiate "mitigation measures" that include reducing internet speeds and redirecting a subscriber's service to a re-education page. Hollywood is terrified. Their dinosaur model has caused legions of their consumers to abandon the complete and utter bull-sh*t that they produce and to undermine their old-school model of profits. Hollywood is terrified by the decentralization movement in the music industry. So, they've used draconian measures of suing individuals for millions because they are scared and they don't know how to operate when their state-sanctioned monopoly has been undermined. They have nothing on us. So, they sue and eliminate us.
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| Gold Seeker Closing Report: Gold and Silver End Near Unchanged Posted: 10 Oct 2012 10:00 PM PDT Gold climbed up to $1768.16 by about 8AM EST before it fell back to $1757.40 in the next 45 minutes of trade, but it then chopped its way back higher into the close and ended with a loss of just 0.06%. Silver slipped to $33.691 in Asia, but it then rose to as high as $34.14 in New York and ended with a gain of 0.5%.
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| Another thoughtful speculation on a huge upward official revaluation of gold Posted: 10 Oct 2012 09:45 PM PDT 11:43p ET Wednesday, October 10, 2012 Dear Friend of GATA and Gold: Zero Hedge today called attention to another thoughtful speculation on the rationale for an official revaluation of gold to a price far higher than the current paper-suffocated price. It was written by the chief investment officer of Guggenheim Partners in New York and Chicago, Scott Minerd, who concentrates on an angle often raised by Jim Sinclair, the (purported) U.S. gold reserve's "coverage ratio" of the U.S. money supply. Minerd writes: "The U.S. gold coverage ratio, which measures the amount of gold on deposit at the Federal Reserve against the total money supply, is currently at an all-time low of 17 percent. This ratio tends to move dramatically and falls during periods of disinflation or relative price stability. The historical average for the gold coverage ratio is roughly 40 percent, meaning that the current price of gold would have to more than double to reach the average. The gold coverage ratio has risen above 100 percent twice during the 20th century. Were this to happen today, the value of an ounce of gold would exceed $12,000." That sort of gold pricing will come in handy as a Big Mac then likely will cost $30. Minerd's speculation is headlined "Return to Bretton Woods" and it's posted in PDF format at Zero Hedge here: http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Fred Goldstein and Tim Murphy open All Pro Gold Longtime GATA supporters Fred Goldstein and Tim Murphy have brought their many years of experience in the precious metals and numismatic coins to All Pro Gold as metals brokers who specialize in the delivery of gold and silver bullion bars and coins as well as numismatic gold and silver coins. Fred and Tim follow these markets closely and are assisted by a team of consultants in monitoring market trends. All Pro Gold offers GATA supporters competitive pricing on all bullion products and welcomes inquiries. Tim can be reached at 602-299-2585 and Tim@allprogold.com, Fred at 602-799-8378 and Fred@allprogold.com. Ask about their ratio strategy and the relationship of generic $20 dollar gold pieces to 1-ounce gold bullion coins. Visit their Internet site at http://www.allprogold.com/. Join GATA here: New Orleans Investment Conference * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our 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: ADVERTISEMENT Opinion Around the World Is Changing When Deutschebank calls gold "good money" and paper "bad money". ... http://www.gata.org/node/11765 When the president of the German central bank, the Bundesbank, pays tribute to gold as "a timeless classic". ... http://www.forbes.com/sites/ralphbenko/2012/09/24/signs-of-the-gold-stan... When a leading member of the policy committee of the People's Bank of China calls the gold standard "an excellent monetary system". ... http://www.forbes.com/sites/ralphbenko/2012/10/01/signs-of-the-gold-stan... When a CNN reporter writes in The China Post that the "gold commission" plank in the 2012 Republican platform will "reverberate around the world". ... http://www.thegoldstandardnow.org/key-blogs/1563-china-post-the-gop-gold... When the Subcommittee on Domestic Monetary Policy of the U.S. House of Representatives twice called on economist, historian, and gold standard advocate Lewis E. Lehrman to testify. ... World opinion is changing in favor of gold. How can you learn why and what it will mean to you? Read the newly updated and expanded edition of Lehrman's book, "The True Gold Standard." Financial journalist James Grant says of "The True Gold Standard": "If you have ever wondered how the world can get from here to there -- from the chaos of depreciating paper to a convertible currency worthy of our children and our grandchildren -- wonder no more. The answer, brilliantly expounded, is between these covers. America has long needed a modern Alexander Hamilton. In Lewis E. Lehrman she has finally found him." To buy a copy of "The True Gold Standard," please visit: http://www.thegoldstandardnow.com/publications/the-true-gold-standard
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| Gold Slips Intraday but Ends Day Unchanged Posted: 10 Oct 2012 09:40 PM PDT courtesy of DailyFX.com October 10, 2012 01:34 PM Daily Bars Prepared by Jamie Saettele, CMT “A previously rare occurrence has popped up 3 times since June. That is, gold has traded in a double inside day AFTER an outside day. Before June, one had to look back to 2009 to find this pattern. The pattern is a function of volatility contraction and the plethora of orders on each side of the narrow range is conducive to false breaks. Gold rallied to a new and has pulled back in order to satisfy the false break.” The piercing of the October low triggers a bearish bias against the high but failure to sustain the intraday drop leaves me neutral. LEVELS: 1736.05 1750.90 1756.80 1791.49 1802.80 1819.05...
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| Gold suppression researcher Dimitri Speck interviewed by Lars Schall Posted: 10 Oct 2012 09:21 PM PDT 11:16p ET Wednesday, October 10, 2012 Dear Friend of GATA and Gold: GATA's friend the German financial journalist Lars Schall today interviews German market analyst and GATA consultant Dimitri Speck about gold price suppression. Speck is author of the gold price suppression study "Geheime Goldpolitik" ("Secret Gold Policy") and partner in the European investment house Staedel Hanseatic. The interview is a 24-minute video headlined "Gold Market Manipulation Explained" and it's posted at Schall's Internet site here: http://www.larsschall.com/2012/10/10/gold-market-manipulation-explained/ CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Opinion Around the World Is Changing When Deutschebank calls gold "good money" and paper "bad money". ... http://www.gata.org/node/11765 When the president of the German central bank, the Bundesbank, pays tribute to gold as "a timeless classic". ... http://www.forbes.com/sites/ralphbenko/2012/09/24/signs-of-the-gold-stan... When a leading member of the policy committee of the People's Bank of China calls the gold standard "an excellent monetary system". ... http://www.forbes.com/sites/ralphbenko/2012/10/01/signs-of-the-gold-stan... When a CNN reporter writes in The China Post that the "gold commission" plank in the 2012 Republican platform will "reverberate around the world". ... http://www.thegoldstandardnow.org/key-blogs/1563-china-post-the-gop-gold... When the Subcommittee on Domestic Monetary Policy of the U.S. House of Representatives twice called on economist, historian, and gold standard advocate Lewis E. Lehrman to testify. ... World opinion is changing in favor of gold. How can you learn why and what it will mean to you? Read the newly updated and expanded edition of Lehrman's book, "The True Gold Standard." Financial journalist James Grant says of "The True Gold Standard": "If you have ever wondered how the world can get from here to there -- from the chaos of depreciating paper to a convertible currency worthy of our children and our grandchildren -- wonder no more. The answer, brilliantly expounded, is between these covers. America has long needed a modern Alexander Hamilton. In Lewis E. Lehrman she has finally found him." To buy a copy of "The True Gold Standard," please visit: http://www.thegoldstandardnow.com/publications/the-true-gold-standard Join GATA here: New Orleans Investment Conference * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our 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: ADVERTISEMENT Fred Goldstein and Tim Murphy open All Pro Gold Longtime GATA supporters Fred Goldstein and Tim Murphy have brought their many years of experience in the precious metals and numismatic coins to All Pro Gold as metals brokers who specialize in the delivery of gold and silver bullion bars and coins as well as numismatic gold and silver coins. Fred and Tim follow these markets closely and are assisted by a team of consultants in monitoring market trends. All Pro Gold offers GATA supporters competitive pricing on all bullion products and welcomes inquiries. Tim can be reached at 602-299-2585 and Tim@allprogold.com, Fred at 602-799-8378 and Fred@allprogold.com. Ask about their ratio strategy and the relationship of generic $20 dollar gold pieces to 1-ounce gold bullion coins. Visit their Internet site at http://www.allprogold.com/.
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| Gold, Molotov Cocktails, Rubber Bullets, Teargas: A Rift In Greece Posted: 10 Oct 2012 09:19 PM PDT Wolf Richter www.testosteronepit.com A Greek economist’s terse sarcasm: “GDP has decreased by €47 billion in the last five years. Economy is expected to contract by 3.8% in 2013, the 6th straight year of recession! Unemployment has reached 24.7%. Youth unemployment... 55.4%! No worries though—we have the sun, the sea, our cultural background.” And they have something else: GOLD. Last year, the Canadian company Eldorado Gold Corp. shelled out $2.4 billion to acquire European Goldfields, which had been struggling for years to develop its Skouries and Olympias gold mines in Greece. Eldorado also owns the Perama Hill project. The three mines are expected to produce 345,000 ounces a year. The Australian company Glory Resources Ltd. is developing its Sapes mine with an expected production of 80,000 ounces a year. The four mines together would produce 425,000 ounces of gold by 2016, or about $750 million at today’s price—making Greece the largest gold producer in Europe. Alas, development has been blocked for a decade by bureaucratic impossibilities, environmental groups, leftist political parties, and local residents—despite the manna of tax revenues, royalties, and jobs. Well, 1,700 jobs for 1.17 million unemployed. But they’re just scratching the surface, so to speak. “We think Greece has the potential to be a major gold producer,” said Glory Chairman Jeremy Wrathall. He found it “bizarre” that the country was “virtually unexplored,” and he was full of hope that it had “woken up to the potential of the mining industry.” Eduardo Moure, Eldorado’s general manager for Greece, had similar visions. “I think people realize we are part of the solution,” he said, convinced that they would “come to realize that mining can be a positive force for change.” Operations are most advanced at Eldorado’s Olympias and Skouries mines in Halkidiki, a peninsula in Northern Greece marked by its three “fingers”—including Athos, whose Mount Athos is a world heritage site. Tourism is by far the largest industry and employer. And in July 2011, the Environment Ministry awarded the licenses to mine gold. Tensions flared up in late March when protesters occupied the road leading to the Skouries quarry on Mount Kakkavos and scuffled with workers who were trying to get through. Then, in the nearby village of Ierissos, a municipal council meeting that had convened to discuss the project was broken up by protesters who overturned cars and fought street battles with riot police that had been brought in to keep things under control. A member of the protesting committee later told the paper Kathimerini, “A complete cessation of mining is the only action we are prepared to accept from the state.” Local residence associations, cooperatives, and professional groups filed six appeals with the Council of State, Greece’s highest court, to stop further mining activity, arguing that it would destroy local forests and the ecosystem. On July 24, the court threw out the first appeal on the grounds that the investment would be “very beneficial for the economy.” On August 6, riot police that had once again been brought in fired rubber bullets and teargas at protesters who marched from the village of Ierissos towards the Skouries mine, where workers had begun chopping down trees. On September 9, events took a nasty turn when protesters—some local, some bused in from Thessaloniki—tried to reach the mine. Police fired teargas. Protestors threw flares and Molotov cocktails. A number of fires broke out. People were injured. Police arrested several protestors and confiscated more than 50 firebombs. The issue has split the community in two. Both sides brandish reports in support of their points of view. There are those who fear that mining will degrade the environment, ruin tourism and their livelihood, and leave behind, after the gold is depleted, untold damage. They’re worried that sodium cyanide will be used to extract the gold from the ore, which could contaminate the drinking water and the air. They’re backed by the left-wing SYRIZA, the Alternative Ecologists, the Green Ecologists, and other leftist groups. And there are those, including many local minors, who see the economic benefits of the mines and believe that the environmental concerns are overblown. They say that new technologies won’t require cyanide to extract the gold. And Eldorado continues to emphasize that it adheres to all environmental and other regulations. The whole debacle has laid bare one of the fundamental problems of Greece: utter lack of trust in its institutions. Nick Malkoutzis lamented “the murky way that public sector contracts have been handed out and the impunity enjoyed by companies that have violated all kinds of regulations. While the wealth and influence of this minority has grown, people’s confidence has withered.” And now, “every scheme tendered by the government” is greeted “with suspicion.” He called it “a social affliction brought on by years of graft.” So, when an acquaintance of mine in Greece had dinner with an official at the Bank of Greece, the discussion inevitably came around to the Troika—and how Greece should send them packing. “Of course,” the central banker said, “it would help considerably if we actually had a functioning government these past 182 years.” Read.... Merkel Hides Behind The Troika Report, The Greeks Seethe, And The Drachma Beckons. And here is SILVER: In July, Japan decided that utilities would be paid three times more for electricity from solar sources than from conventional sources. That premium will ignite the installation of solar panels—which use a lot of silver! Read.... The Solar Silver Thrust.
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| Europe & The Major Breakout For Gold Is Still In Front Of Us Posted: 10 Oct 2012 09:15 PM PDT from KingWorldNews:
Here is what Caesar had to say: "Gold is still in a holding pattern, but investors should use these quiet times to accumulate physical gold. Gold is the ultimate way for investors to maintain their purchasing power. People have to remember that many of the surplus countries, especially in the Far East, have a very low weighting of gold relative to their fiat currency holdings." Caesar Bryan continues @ KingWorldNews.com
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| Gold, Molotov Cocktails, Rubber Bullets, And Teargas: A Rift In Greece Posted: 10 Oct 2012 09:14 PM PDT A Greek economist's terse sarcasm: "GDP has decreased by €47 billion in the last five years. Economy is expected to contract by 3.8% in 2013, the 6th straight year of recession! Unemployment has reached 24.7%. Youth unemployment… 55.4%! No worries … Continue reading
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| Gold and Gold Stocks Readying for Upturn Against Stocks Posted: 10 Oct 2012 07:55 PM PDT In the wake of the Fed's announcement of open-ended or as I like to call it, permanent quantitative (QE) easing, mainstream advisors and pundits have found another way to promote stocks. Read More...
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| Posted: 10 Oct 2012 04:51 PM PDT Jim Sinclair's Commentary The loyal career bean counters better cook the books all the way to election or their careers might end. John Williams on Lies, Damned Lies and the 7.8% Unemployment Rate Source: JT Long of The Gold Report (10/8/12) Shadowstats.com Author John Williams wonders if politics are at play behind the Continue reading In The News Today
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| How to Find Silver: The Art of Drilling Posted: 10 Oct 2012 04:31 PM PDT Another educational video from our good friends at Endeavour Silver is just below. Part of a series of videos from this excellent company. The Setup for the video reads: "A fascinating look at the techniques and methods used to explore for silver and other precious metals. We look at prospecting, operating a drill rig and the various challenges involved with mineral exploration. Visit http://www.edrsilver.com for more information. Presented by Endeavour Silver Corp. as part of an ongoing series of educational films on all things silver."
Source: Endeavour Silver via YouTube http://www.youtube.com/watch?v=s6LkJKIwXSE&feature=player_embedded Disclosure: EDR.TO is a former Vulture Bargain company. Members of the GGR team may hold residual long positions in the company.
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| How This Ends and What You Can Do To Protect Yourself Posted: 10 Oct 2012 04:23 PM PDT Monty Pelerin writes: People regularly ask me two questions: [LIST] [*]What is coming economically and financially? [*]How do I protect myself? [/LIST]Answers to these questions can be provided, however, the validity of such answers is questionable. Anyone is entitled to an opinion and that is all anyone can provide at this point. The answers to these questions are subject to future political decisions and economic events which are not knowable today. All answers are subject to assumptions regarding these unknowables. Judgment is important in making such assumptions, but even wise men are dealing with probabilities rather than certainty. Jim Sinclair provides the expectations of Egon von Greyerz below. Greyerz outlines what he expects. In my opinion, his take is as good as any. There are a few things I might modify below, although that does not mean I would be more correct. [INDENT]Printing Money – Price of Gold – Preservation of Wealth October 9th, 2012 by admin golds by Egon von...
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| The Gold Price Lost $2.20 to Close at $1,763.20 Posted: 10 Oct 2012 04:23 PM PDT Gold Price Close Today : 1763.20 Change : -2.20 or -0.12% Silver Price Close Today : 34.073 Change : 3.273 or 10.63% Gold Silver Ratio Today : 51.748 Change : -5.570 or -9.72% Silver Gold Ratio Today : 0.01932 Change : 0.001878 or 10.76% Platinum Price Close Today : 1676.70 Change : -16.80 or -0.99% Palladium Price Close Today : 648.45 Change : -9.05 or -1.38% S&P 500 : 1,432.56 Change : -8.92 or -0.62% Dow In GOLD$ : $156.45 Change : $ -1.29 or -0.82% Dow in GOLD oz : 7.568 Change : -0.063 or -0.82% Dow in SILVER oz : 391.65 Change : -45.79 or -10.47% Dow Industrial : 13,344.67 Change : -128.56 or -0.95% US Dollar Index : 79.92 Change : -0.093 or -0.12% Sorry, the Moneychanger is finishing his October monthly newsletter for paid subscribers today so can't publish GOLD PRICE commentary. However, he said to tell y'all that other than stocks tanking, nothing much changed from yesterday. Same boundaries apply as stocks draw perilously nigh 13,300. He also had this little message: Whoopie! The digital versions of At Home In Dogwood Mudhole are ready. Hard copies won't be here until 26 October, but if you want to purchase AHIDM in PDF, Kindle, or e-Book format for $16.95, you can order at http://store.the-moneychanger.com/products/at-home-in-dogwood-mudhole-vol1 Sorry, I've worn out two pencils and a fountain pen trying to figure out how to autograph those digital versions, but it's licked me. I can't do it. And once y'all order and have a chance to read a little, let me know what you think. If it doesn't make you gasp, laugh, cry, or jump up and down (or all at once), I'll refund your electrons. Argentum et aurum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger The-MoneyChanger.com 1-888-218-9226 10:00am-5:00pm CST, Monday-Friday © 2012, 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 $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or 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. No, I don't.  
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| Guggenheim On Gold And The 'Unsustainable' Return To Bretton Woods Posted: 10 Oct 2012 04:18 PM PDT Via Scott Minerd of Guggenheim Partners, Bretton Woods is a resort in the mountains of New Hampshire that was made famous by a series of meetings of world leaders and economists in 1944. Nine months before the last of Hitler's V-2 rockets struck Britain, 730 delegates from the 44 Allied Nations congregated in Bretton Woods to create a new world order, including a monetary system that could resolve the festering economic consequences of the First World War and the Great Depression. Under the Bretton Woods Agreement, the world's currencies would be pegged to the U.S. dollar and central banks would be able to exchange dollars for gold at a set price of $35 per ounce. It was this arrangement that firmly established the U.S. dollar as the global reserve currency. The system worked relatively well for almost three decades (1944-1971). During that time, Bretton Woods' member states achieved increasing levels of trade, economic cooperation, and initially, a period of relative price stability. The trouble with the system was that global central banks had pegged their currencies at low levels to support exports to the U.S. This led to the accumulation of massive dollar reserves in the hands of foreign central banks. These dollars were used to buy interest-bearing U.S. Treasuries. The structural imbalance, which resulted in ever growing dollars reserves, created problems that would ultimately compromise the very existence of Bretton Woods. Today, global central banks are once again managing the exchange values of their currencies relative to the dollar to ensure export competitiveness. Just as pressure mounted as a result of the accumulation of large Treasury reserves by foreign central banks under Bretton Woods, today, ever-expanding dollar-denominated reserves on central bank balance sheets around the world threaten global price stability and even dollar hegemony. Though a reversal of this unsustainable pattern is not imminent, the ultimate consequences could be even more severe than the precedent set 41 years ago. By understanding the demise of Bretton Woods, we gain a better handle on how today's global monetary arrangement may result in a period of relative price stability in the short-run followed by a rapid depreciation in the purchasing power of currencies on a global scale. An historical perspective provides the framework to better understand the current monetary system and the impact these policies have on investment portfolios.
The Golden Years of Bretton Woods At the outset of Bretton Woods, the value of the United States' gold reserves relative to the monetary base, known as the gold coverage ratio, was approximately 75%. This helped to support the dollar as a stable global reserve currency. By 1971, the issuance of new dollars and dollar-for-gold redemptions had reduced the U.S. dollar's gold coverage ratio to 18%.
The consensus view during the early years of Bretton Woods was that the dollar was as good as gold. Gold has no yield so central banks held interest-bearing Treasuries on the assumption that they could always be converted to gold at a later time. By the early 1960s, there was widespread recognition that the U.S. could never fulfill its commitment to redeem all outstanding dollars for gold. Despite this disturbing fact, central banks did not call the Fed's bluff by selling their dollar reserves. They had become hostage to the system. By the end of the decade, the problem had intensified to the point that if any central bank attempted to convert its dollars to gold, its domestic currency would rapidly appreciate above the levels that were pegged under Bretton Woods. This would lead to severe economic slowdowns for any country who challenged the U.S. Throughout the 1960s, foreign central banks implicitly imported inflation as a result of maintaining the exchange value of their currencies at the artificially low rates set in 1944. The overvalued dollar led to trade deficits versus a sizable trade surplus for the United States. Because of the undervaluation of non-U.S. currencies, Bretton Woods member states were forced to expand their money supplies at rates that compromised price stability. As foreign exporters converted dollars back to their local currencies, the dollar reserves on central bank balance sheets continued to grow. This surplus of dollars held by central banks, and subsequently invested in Treasury securities, reduced the United States' cost of borrowing and allowed the country to consume beyond its means. Valéry Giscard d'Estaing, then finance minister of France referred to the situation as "America's exorbitant privilege," but he was only half right. As Yale economist Robert Triffin noted in 1959, by taking on the responsibility of supplying money to the rest of the world, the U.S. forfeited a significant amount of control over its domestic monetary policy.
The End of the Golden Years When Triffin introduced his theory to the world, he accurately predicted the collapse of Bretton Woods and the end of an era of U.S. trade surpluses. Triffin told Congress that, at some point, foreign central banks would become saturated with Treasury securities and seek to redeem them for gold. However, because this would appreciate their currencies and slow growth, it was difficult to envision a set of circumstances that would lead foreign central banks to stop accumulating more dollars. By the middle of the 1960s, the U.S. was escalating the war in Southeast Asia while expanding social welfare programs under Lyndon Johnson's Great Society. As the U.S. pursued a policy of both 'guns and butter,' its trading partners questioned the country's willingness to restore fiscal balance. Over time, the U.S. trade surplus deteriorated as America imported more than it exported. Further, the increasing trade deficit in the U.S. accelerated the accumulation of dollar reserves around the world. As a result of the massive growth in reserves, the Bretton Woods nations saw domestic inflation rise by an average of 5.2% during the 1960s, relative to U.S. inflation, which was 2.9%. European countries began to consider that the price of dollar-denominated inputs such as oil would fall dramatically if their currencies were revalued upward. By abandoning Bretton Woods, they could reduce their domestic inflation by reasserting control over their domestic money supply. However, the possibility of an exit from Bretton Woods had not been contemplated in the original 1944 plan.
How would member states leave Bretton Woods? The answer could be found in Trffin's prediction. Forced to swap dollars for gold, the U.S. would have to admit that it could no longer keep its pledge to exchange gold for $35 per ounce. Between Bretton Woods' establishment in 1944 and its demise in August 1971, the U.S. exported almost half of its gold reserves. In the 12 months leading up to the end of Bretton Woods, the Fed lost nearly 15% of its total gold reserves; a rate at which the U.S. would have depleted all of its reserves in a short time. This led then-President Richard Nixon to abruptly end the dollar's gold convertibility by 'closing the gold window.' While the United States' trading partners immediately reaped the benefits of reduced inflation and cheaper imports, the end of gold convertibility for the dollar would set in motion a decade of subpar growth and high inflation. In the early 1970s, members of the Organization of the Petroleum Exporting Countries (OPEC) saw the purchasing power of their dollar-denominated oil receipts rapidly erode. They seized the opportunity to raise prices. Between 1973 and 1980, oil prices would rise by more than 1,000%. As a result, during the 1970s, countries that had pursued relatively weaker currencies under Bretton Woods began to seek relatively stronger exchange values to constrain their energy costs. The resulting fall in demand for the dollar led to a drastic reduction in its purchasing power.
Bretton Woods II: The Sequel The early success of Bretton Woods, which relied upon weak currencies to successfully promote exports looks surprisingly similar to the policies being practiced by central banks around the world today. Some have referred to the current policies in foreign exchange markets as Bretton Woods II. Although not officially acknowledged, central banks are once again tacitly pegging their currencies to the dollar. As the U.S. is expanding its monetary base through quantitative easing (QE), other countries have few options but to join this race to the bottom. This situation is as unsustainable today as it was in the 1960s. (For a more in-depth discussion, read one of my previous commentaries, The Return of Beggar-Thy-Neighbor.) Once global growth begins to accelerate and capacity utilization increases, economic bottlenecks will cause the price of inputs, such as energy, to rise. There will then be another inflection point when countries will realize that by allowing their currencies to appreciate, reduced import prices will spur productivity and domestic growth. This will happen when it becomes apparent that the savings resulting from lower input prices exceeds the export losses associated with a stronger currency. Though the timing of this event is difficult to forecast, its occurrence will likely cause Bretton Woods II to collapse.
Investment Implications: A Green Light for Gold Gold was an important component of the Bretton Woods system. As a monetary anchor, it provided stability for the dollar as a global reserve currency. With the demise of gold convertibility under Bretton Woods, global price stability began to unravel. After being depegged from its official price of $35 per ounce in 1971, gold rose by more than 2,000% over the next 10 years. Investors migrate to gold when currencies no longer function as good stores of value. The U.S. gold coverage ratio, which measures the amount of gold on deposit at the Federal Reserve against the total money supply, is currently at an all-time low of 17%. This ratio tends to move dramatically and falls during periods of disinflation or relative price stability. The historical average for the gold coverage ratio is roughly 40%, meaning that the current price of gold would have to more than double to reach the average. The gold coverage ratio has risen above 100% twice during the twentieth century. Were this to happen today, the value of an ounce of gold would exceed $12,000. The possibility of an upward revaluation of the official price of gold should not be minimized. Although I do not anticipate or advocate a return to the gold standard, an upward revaluation of gold by one of more central banks is possible. If the Federal Reserve, for instance, announced that it stood ready to purchase gold at $10,000 per ounce, the gold-coverage ratio of the dollar would return to 75%, roughly where it stood at the beginning of Bretton Woods. This could restore confidence in the value of the dollar if its ultimate role as a reserve currency were to be challenged. Gold's industrial use only represents .03% of global GDP. Therefore, its upward revaluation would not cause a significant economic shock associated with rising input prices. Likewise, a higher price would probably not affect the behavior of the world's largest holders, which are central banks and sovereign wealth funds. Prescient investors should consider making allocations to gold and other precious metals as a hedge against the erosion of purchasing power of the dollar as well as for the potential upside from positive market price appreciation or a possible intervention at the policy level. Despite the sizable appreciation in gold prices in the last decade, gold is far from overvalued. This makes gold a low-risk investment and leads me to believe that gold will never again trade below $1,600 an ounce. The Precarious Balance Continues Almost 70 years later, the global monetary system is still living in the long shadow of Bretton Woods. Triffin's views are as relevant today as they were when they were first published more than half a century ago. The current paradox in the global monetary system is as unsustainable as it was under the original Bretton Woods Agreement. The exact timing of an inflection point for Bretton Woods II remains unclear, and although it is not imminent, its eventual occurrence is virtually certain. As was the case in the 1960s, a reversal of the acquisition of Treasuries by foreign central banks will cause a major shift in global capital flows and insecurity about the value of dollar-based assets, particularly Treasuries. The most likely outcome will be renewed support for precious metal, which functions as a store of value and a hedge against currency depreciation. In contrast to the 1960s, bullion is free to float at market prices and gold markets have already begun discounting a future set of circumstances which is much different from today. The time to buy insurance on the end of Bretton Woods II is before the inevitable occurs. None of this should come as a surprise given the unorthodox growth of central bank balance sheets around the world. The collapse of Bretton Woods in 1971 caused a decade of economic malaise and negative real returns for financial assets. Can anyone afford to wait to find out whether this time will be different?
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| Don't Be a Lemming—Roger Wiegand's Method of Precious Metals Investing Posted: 10 Oct 2012 03:41 PM PDT The Gold Report: We are going to talk about "lemming investing," the theme of your most recent newsletter. Who or what are lemmings and how does their behavior drive the market? Roger Wiegand: The lemmings that drive the market primarily are the big funds, typically mutual funds that manage 401(k) and individual retirement accounts. Most of those funds are set up on a buy-and-hold basis. There are hedge funds with lemming behavior as well, but the hedge funds are more often traders. They are creating a track record of lemming investing as well because of their huge size—billions and billions of dollars. The other sector of the market is the retail investor, with approximately 30% of the market. [INDENT]"We think the old paradigm of buy and hold forever is not a good way to go."[/INDENT] The lemming investor market would be most all of the funds and all of the smaller investor's money. The large funds primarily invest money for the smaller investors (being the lemmings). They rea...
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| Gold Daily and Silver Weekly Charts - Silver Resilient - US Debt Auctions Posted: 10 Oct 2012 02:37 PM PDT | ||||||||||||
| Posted: 10 Oct 2012 02:14 PM PDT Submitted by Adrian Ash | BullionVault Wednesday, 10 October 2012 Putting on My Top Hat Hardly nice while it lasted, austerity is running out of friends fast… IT'S A COMMON MYTH that the Labour government in power when the Great Depression went global in 1931 was forced to resign by a banker's ramp, writes Adrian Ash [...] 
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| Posted: 10 Oct 2012 01:32 PM PDT Seeking refuge outside currency and outside debt, gold buyers helps push Gold Prices higher. So too – we fear – will voting for any political party in Europe, the UK or US this decade. Not voting won't save the Western economies either, of course. But rolling back state spending, and cutting back state deficits, is proving beyond the British Tories. It's proving too tough for even the International Monetary Fund. The top hats look ready to quit the field.
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| Comstock Drills Into Gold Discovery at QV Posted: 10 Oct 2012 12:44 PM PDT Vancouver, BC – October 10, 2012 - Comstock Metals Ltd. (TSX-V: CSL) (the "Company") is pleased to announce preliminary gold assays from two of eight holes recently completed at its QV Project in the White Gold district, south of Dawson City, Yukon. Gold mineralization was intersected in both holes at grades and width of potential economic interest.
Assay results are considered preliminary since the results from check assays and "metallic fire assays" have not been received. Metallic fire assays check for the presence of coarse gold in core samples and are an important check to ensure gold grains are not being removed during crushing and screening at the sample preparation facility. Holes were collared from the same drill pad, drilled southwesterly at -500° and -800° respectively. Intervals reported here are within 80% of true widths. A drill collar map and a cross section are available at http://comstock-metals.com/projects/yukon/qv_project/ These initial results both confirm the presence of gold mineralization and demonstrate that a new zone has been discovered in the district, just 10 kilometres from Kinross's Golden Saddle Deposit. The geology of the QV discovery is remarkably similar to Golden Saddle with the exception that mineralization dips at a shallow angle (30˚) beneath a low-rising hill. All eight holes at QV intersected thick zones of quartz-sericite-carbonate altered gneiss and feldspar porphyry dykes with quartz vein stockworks, breccias, disseminated and vein controlled pyrite, and visible gold. Based upon these initial results, it appears that two and possibly three structures are the focus of highest grade mineralization and extend from hole to hole. These important structures extend beyond drill holes QV12-001 and -002, were intersected in all drill holes, and remain open along strike and at depth. "The broad, near surface gold zones, along with a shallow dip of 30 degree to the northwest, make an ideal open-pitable mining scenario at the VG zone," commented the Company President & CEO, Rasool Mohammad. "We are also very encouraged by our high-grade gold zones in the broader low grade near surface mineralization, indicating underground mining potential as well." The 2012 drilling programme at QV consisted of eight core holes totalling 1,334 metres. The drill programme was designed to test strong gold enrichment discovered in trenches at the VG Zone, including 3.31 g/t gold over a 95 m sample length from trench QVTR12-06 and 3.77 g/t gold over 45 m in QVTR12-15. In addition to drilling, considerably more trenching and soil sampling has been completed on other targets at QV which will likely establish additional targets for further follow-up. Results of this work will be released upon receipt of analytical results. For detailed maps of the property and the locations, please visit the website at: www.comstock-metals.com. The 2012 drilling program is supervised by Jodie Gibson, P.Geo., Consultant for Comstock Metals Ltd.; and Gordon Davidson, P.Geo., Director, Comstock Metals. Both are Qualified Persons as defined by NI 43-101. Drill core was cut in half using a diamond saw, with one half placed in sealed bags and delivered to Acme Analytical Laboratories Ltd. in Whitehorse, Yukon. All samples were fire assayed, and an industry standard QA/QC programme consisting of standards and blanks were inserted into the sample stream to ensure assay accuracy and repeatability. The technical information in this Release has been reviewed by both Mr. Davidson and Mr. Gibson. About Comstock Metals Ltd. Comstock Metals is focused on two projects: the QV Property in the Yukon Territory, and the Corona Property in Mexico. The QV Property lies within an area of 523 claims covering 10,263 hectares (25,361 acres) within the prolific White Gold District in the Yukon Territory about 70 kilometres south of Dawson City. Kinross Gold's 1.5 million ounce Golden Saddle deposit is 10 km to the southeast, and Kaminak Gold's Coffee projects are 40 km to the south. The Company has also earned a 60% interest in the Corona Property in Mexico and can earn an additional 15% interest from Golden Goliath Resources (GNG) to hold a 75% interest by completing a positive bankable feasibility study by December 31, 2017. Comstock's Corona Gold-Silver project is located in the prolific Sierra Madre Occidental in Chihuahua, Mexico. The Company completed a drill program in the spring of 2012. The drill program discovered two new zones of gold and silver mineralization. Please refer to the website at http://www.comstock-metals.com/projects/mexico/corona/ for details To learn more, please visit the Company's website at: www.comstock-metals.com For further information, contact Rasool Mohammad or Larry Johnson at 604-639-4533. COMSTOCK METALS LTD. Source: www.comstock-metals.com Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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| Gold investment could double on economic woes – Coutts Posted: 10 Oct 2012 12:44 PM PDT
Ideally, investors should aim to have 7 to 8 percent of their assets in gold, above the wealth management industry's average of 3 percent, Gary Dugan, Coutts' chief investment officer for Asia and Middle East, told Reuters. "What's happening in precious metals is that they are becoming more mainstream," Dugan said, adding that ten years ago investors rarely held any gold in their portfolios. "Some of the clients ask where gold prices are going, and I say don't even think about prices. It's a store of value." [source]
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| Silver Time-frame Trend Probabilities Posted: 10 Oct 2012 12:42 PM PDT I know it is practically heresy to suggest silver and gold could go down (gold and silver perma-bulls – you know who you are), especially after Bernanke has announced $40 Billion per month of bank bailouts (QE4-Ever) that is supposed to increase employment, but consider:
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When it comes to explaining the problems with our economy, one of the hardest things to do is to get people to understand that we are living in an economic fantasy world that is completely and totally unsustainable. As a nation we consume far more than we produce, we spend far more than we bring in, our debt is growing much faster than our GDP is, our entitlement programs are growing at an exponential rate, our retirement system is a Ponzi scheme and the Federal Reserve is printing money as if there is no tomorrow in a desperate attempt to paper over all of our problems. But we have all grown so accustomed to the debt-fueled prosperity that we have been enjoying for so many decades that it actually feels "real" to most of us. Unfortunately, history has shown us that it is simply not possible to grow your debt faster than your economy indefinitely. At some point your consumption will drop back to a level more equal to your production. Sometimes that adjustment can be gradual, but other times it can be extremely painful. In our case, we have been living way above our means for so long that it would take a major economic miracle just to keep our adjustment to an "exceedingly painful" level. We are living in the largest debt-fueled prosperity bubble in the history of the world, and our unsustainable economy is going to crash and burn at some point. Hopefully it will be later rather than sooner, but a crash is most definitely coming. 
Today 25 year veteran Caesar Bryan told King World News that "… problems in Europe could, once again, reignite a fire under the gold market." Bryan, from Gabelli & Company, also said the major breakout for gold is still in front of us and investors should be prepared for the next advance. 
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