Gold World News Flash

GoldSeek.com Radio Gold Nugget: Peter Schiff & Chris Waltzek
A Gold Stock Bull Gives Thanks To Mr. Hendry
Household Deleveraging: Are We There Yet?
Asian Metals Market Update
Somebody Should Start The ‘Stuff Costs Too Much' Party
Monthly Gold charts
Silver Update 10/31/12 Crony Capitalism
Don Coxe - A Gold Bull, Bond Bear & Commodity Supercycle
Doug Casey: There’s Going to Be a Huge Change of Ownership Over Global Resources
Guest Post: The Tremendous Economic Benefits Of Superstorm Sandy
SILVER vs. CURRENCY – “SILVER is rarer than GOLD in Bullion form”
Could It Get Worse Than 2008?
Elliott Management Vs Argentina Round 2: Now It's Personal
THE FIRST 12 HOURS AFTER A U.S. DOLLAR COLLAPSE
Euro Debt Crisis: Could Gold Come To The Rescue?
THE TREMENDOUS ECONOMIC BENEFITS OF SUPERSTORM SANDY
Some Incredible Gold Charts
Is Santa Coming Early for Gold & Gold Mining Stocks?
Global Gold Shuffle: Suddenly, Countries Realize the Great 21st Century Flight To Gold Is HERE!!!
If the Gold Price Closes Higher Tomorrow Stop Waiting and Buy
Golden Haarp & Allocated Gold Exposure
Der Spiegel Snickers About Germany's Gold But Avoids the Serious Questions
Nolan Watson–Renaissance Man Leading The Mining Revival
DOUG CASEY ON THE ELECTION 2012
Gold Seeker Closing Report: Gold and Silver Gain About 1%
Rick Rule - There Is Spectacular Demand For Gold Right Now
Golden Haarp & Allocated Gold Exposure
Jim's Mailbox
Silver Stocks vs. Palladium
Weak Dollar Policies Could Result In Trade Wars and Higher Consumer Prices

GoldSeek.com Radio Gold Nugget: Peter Schiff & Chris Waltzek

Posted: 01 Nov 2012 09:00 AM PDT

GoldSeek.com Radio Gold Nugget: Peter Schiff & Chris Waltzek

A Gold Stock Bull Gives Thanks To Mr. Hendry

Posted: 01 Nov 2012 08:07 AM PDT

I want to thank Mr. Hendry for calling the bottom of the recent correction in the "Gold stocks to Gold" ratio. Because this was only a minor/short-term correction in a fledgling new uptrend in this ratio, Hendry's comment was not as powerful a contrarian signal as the plethora of articles on how crappy Gold stocks are relative to Gold that appeared last spring and summer (like this one). However, this recent comment sure is going to prove to be timely in my opinion.

Household Deleveraging: Are We There Yet?

Posted: 01 Nov 2012 01:27 AM PDT

Bullion Vault

Asian Metals Market Update

Posted: 01 Nov 2012 12:02 AM PDT

The recent consolidation phase in gold and silver will pave the way for big moves by tomorrow. The Chinese official purchasing managers index rose in October after a period of two months which suggests that there will be more growth over the coming months. Base metals will be supported at lower prices. Traders will start taking positions for the US October non farm payrolls tomorrow and the US presidential elections next week.

Somebody Should Start The ‘Stuff Costs Too Much' Party

Posted: 31 Oct 2012 11:30 PM PDT

from The Economic Collapse Blog:

Stuff costs too much. Seriously. Every time I go to the grocery store these days, I am absolutely horrified by the prices. I try not to buy anything that is not on sale, but the problem is that I am discovering that the new sale prices are the old regular prices. So now paying what used to be "full price" is supposedly a "good deal". The other way that they are trying to hide rising prices is by shrinking package sizes. As if we wouldn't notice that a box of 21 garbage bags is now being sold for the exact same price that a box of 25 garbage bags used to be sold for. It is one of my pet peeves. I feel like I am in the middle of some bizarre movie entitled "The Incredible Shrinking Dollar". Sadly, I am far from alone. There are millions upon millions of American families that are seeing their expenses continue to rise even as their paychecks remain the same. But neither Barack Obama nor Mitt Romney seems very concerned about inflation. In fact, the Federal Reserve, QE3 and Ben Bernanke were not even mentioned in any of the three presidential debates. So I think that somebody should start the "Stuff Costs Too Much" Party. Inflation is a tax which is destroying the value of each dollar that we hold a little bit more every single day, and the American people deserve to know the truth about what is going on.

Monthly Gold charts

Posted: 31 Oct 2012 10:41 PM PDT

[url]http://www.traderdannorcini.blogspot.com/[/url] [url]http://www.fortwealth.com/[/url] October is the first month since May that gold has posted a monthly loss. Initial resistance still begins near the $1720 - $1725 level. Above that, selling will show up near $1740. The market remains rangebound with a bit of a near term friendly bias. It remains below the 50 day moving average which comes in at $1737. That corresponds closely with the resistance level I noted above. To see the longer term bullish trend reassert itself, the market will need to convincingly close through this level. Downside support still is holding firm near the $1700 level as bargain buying out of Asia is very solid here. Can you see the significance of this $1800 level and why the bulls were unable to take it through there on this go around? Clearing $1800 and holding it, is the KEY TO THE RESUMPTION OF THE BULLISH TREND. ...

Silver Update 10/31/12 Crony Capitalism

Posted: 31 Oct 2012 10:33 PM PDT

from BrotherJohnF:

Don Coxe - A Gold Bull, Bond Bear & Commodity Supercycle

Posted: 31 Oct 2012 10:27 PM PDT

Today 40-year veteran Don Coxe told King World News, "... when that bond bear market comes under way, it will be the next phase of the commodity supercycle." Coxe, who is Global Strategy Advisor to BMO ($538 billion in assets), also added, "What's fascinating to me is we've had this tremendous bull market in gold, against a bond bull market."

Here is what Coxe had to say: "As of August 12th, 1981, the constant dollar Dow Jones Average, which was deflated by inflation, was back to where it was after 'Black Monday' in 1929. Think about that. What that meant was in real terms from 1929, in the next 52 years you had a negative return on stocks."

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

Doug Casey: There’s Going to Be a Huge Change of Ownership Over Global Resources

Posted: 31 Oct 2012 09:30 PM PDT

by Mac Slavo, SHTFPlan:

International man and well known investment strategist Doug Casey warns that the world's economic, financial and monetary systems have passed the point of no return and a change of ownership over global resources will soon take place.

At the 2012 Investment Conference in New Orleans, Casey explains why neither Presidential candidate will change anything, where the real wealth in the world is found, why gold is a must-own survival asset, and what to expect next:

We're going to go through a really, really rough spot starting anytime between tomorrow morning and the next year.

We're exiting the eye of the hurricane where we've been in since 2007… We're going into the trailing edge of the hurricane, it's going to last a long time, and it's going to be very, very severe.

Read More @ SHTFPlan.com

Guest Post: The Tremendous Economic Benefits Of Superstorm Sandy

Posted: 31 Oct 2012 09:19 PM PDT

Submitted by Jim Quinn of The Burning Platform

The Tremendous Economic Benefits Of Superstorm Sandy

The public relations propaganda campaign to convince the ignorant masses that Sandy's impact on our economy will be minor and ultimately positive, as rebuilding boosts GDP, has begun. I've been hearing it on the corporate radio, seeing it on corporate TV and reading it in the corporate newspapers. There are stories in the press that this storm won't hurt the earnings of insurers. The only way this can be true is if the insurance companies figure out a way to not pay claims. They wouldn't do that. Would they?

It seems all the stories use unnamed economists as the background experts for their contention that this storm will not cause any big problems for the country. These are the same economists who never see a recession coming, never see a housing collapse, and are indoctrinated in Keynesian claptrap theory.

Bastiat understood the ridiculousness of Kenesianism and the foolishness of believing that a disaster leads to economic growth.

Bastiat's original parable of the broken window from Ce qu'on voit et ce qu'on ne voit pas (1850):

Have you ever witnessed the anger of the good shopkeeper, James Goodfellow, when his careless son has happened to break a pane of glass? If you have been present at such a scene, you will most assuredly bear witness to the fact that every one of the spectators, were there even thirty of them, by common consent apparently, offered the unfortunate owner this invariable consolation—"It is an ill wind that blows nobody good. Everybody must live, and what would become of the glaziers if panes of glass were never broken?"

Now, this form of condolence contains an entire theory, which it will be well to show up in this simple case, seeing that it is precisely the same as that which, unhappily, regulates the greater part of our economical institutions.

Suppose it cost six francs to repair the damage, and you say that the accident brings six francs to the glazier's trade—that it encourages that trade to the amount of six francs—I grant it; I have not a word to say against it; you reason justly. The glazier comes, performs his task, receives his six francs, rubs his hands, and, in his heart, blesses the careless child. All this is that which is seen.

But if, on the other hand, you come to the conclusion, as is too often the case, that it is a good thing to break windows, that it causes money to circulate, and that the encouragement of industry in general will be the result of it, you will oblige me to call out, "Stop there! Your theory is confined to that which is seen; it takes no account of that which is not seen."

It is not seen that as our shopkeeper has spent six francs upon one thing, he cannot spend them upon another. It is not seen that if he had not had a window to replace, he would, perhaps, have replaced his old shoes, or added another book to his library. In short, he would have employed his six francs in some way, which this accident has prevented.

Economists and MSM faux journalists don't want you to think for yourself. If you just consider some basic situations that are happening or will happen to average people throughout the Northeast, you'll understand that this storm will have a huge NEGATIVE impact on the economy.

Small stores, restaurants, and thousands of other businesses were shut down for at least two days and some will be closed for a week or more. These businesses employ hundreds of thousands of hourly workers. These businesses earned no revenue, therefore their profits were reduced. The hourly workers did not get paid. Therefore, they have less money to spend for clothing, tech gadgets, food, etc. Both the business and the workers will pay less taxes to the government.
The reduced revenue at retailers due to being closed and reduced spending by customers will cause them to layoff more workers or in the case of smaller retailers, go out of business altogether.
The damage caused by the storm will result in insurance companies providing billions in claim payouts. This will reduce their earnings, causing them to layoff employees in order to meet their quarterly earnings expectations. Some smaller insurance companies may go out of business.
Anyone with a tree down in their yard, damage to their fence, roof damage, etc that is not covered by insurance will have to spend hundreds or thousands of dollars on fixing the damage. This is money they won't spend on Christmas presents next month.
Many people do not have the savings to fix the damage to their houses. They will put the costs on their credit cards paying 15% interest to the criminal Wall Street cabal.
Politicians and government drones will declare we must rebuild and help those in need. They will approve $20 billion of "Federal" disaster relief. But, we all know the $20 billion does not exist. It will be borrowed from future generations. It will just be added to our current $16.3 trillion tab. We will pay interest on this $20 billion FOREVER. The true cost of the $20 billion relief will be $30 billion after decades of accumulated interest. It's like an ignorant American taking a $20,000 vacation, putting it on their credit card and making the minimum payment for eternity.

You may realize that the only beneficieries of this tragedy will be the issuers of debt. That's right, the criminal Wall Street banks will earn more interest as desperate Americans have to use credit cards to survive. The destroyed automobiles will be replaced with autos financed by Wall Street. Businesses and homeowners will go further into debt making repairs.

Considering the country has been in recession since June, this disaster will be the final straw that breaks the camel's back. The powers that be will try to keep the broken economy fallacy going as long as they can, but anyone capable of thinking realizes the country is in the shitter. The mood continues to darken. The storm clouds continue to swirl and a bad moon is rising. But don't worry, unnamed economists say everything is just fine. Fix that window and boost the economy.

SILVER vs. CURRENCY – “SILVER is rarer than GOLD in Bullion form”

Posted: 31 Oct 2012 09:05 PM PDT

from silver investor.com:

from Ryan Jordan, author of Silver – the People's Metal

Could It Get Worse Than 2008?

Posted: 31 Oct 2012 09:00 PM PDT

by Graham Summers, Gains Pains & Capital:

Looking around the economic and financial world today, I see countless negative developments and virtually no positive developments to speak of.

Just off the cuff, I note that:

China is entering a hard landing if not an outright economic collapse.
Europe is facing a recession, banking collapse, sovereign crisis, and a potential break-up.
The US is in a stagflationary recession.
Japan is in a sovereign debt crisis, approaching armed conflict with China
Inflationary pressures are increasing worldwide: new record food prices will hit within the next 12 months.
Read More @ GainsPainsCapital.com

Elliott Management Vs Argentina Round 2: Now It's Personal

Posted: 31 Oct 2012 08:12 PM PDT

When it comes to international bondholder process, work out and restructuring (and litigation), on the one hand there is Europe, and specifically the ongoing Greek reorganization into an ever tinier balance sheet by way of cramming down weak-covenant, local-law bondholders (who are "encouraged" to participate in ever more coercive principal recovery events, as defection would result in wipeouts of recoveries in other cross-held bonds of the impaired class should a Grexit-type event occur, which then would lead to massive losses on all European bond holdings for the same creditors: a true Mutually-Assured Destruction scenario, as the IIF's Jacques Dallara understood quite well), and on the other hand there is Argentina.

But whereas the European fiasco is still (relatively) structured (at least until Spain et al join the cram down fray, something none other than Lee Buchheit predicted would happen courtesy of the prevalence of local-law bonds in PIIGS outstanding inventory), if getting more complicated with incremental subordination of various junior classes of sovereign debt either due to legal reasons - i.e., local-law vs international-law bonds, structural reasons: the presence of Collective Action Clauses in consent solicitations and "indenture-stripping" thresholds for a holdout class (think perpetual fly-in-the-ointment Elliott), or due to the far more abstract "unimpairability" and primacy of the bondholder - i.e. the IMF, the ECB, or another Official Sector entity (all of which was previously explained here), in Argentina it is a totally chaotic free-for-all, where a distressed creditor holdout is now unilaterally pursuing "incremental recovery" of par in local and international courts of law.

The distressed creditor, in this case, is international bondholder litigation expert, hedge fund Elliott Associates which had purchased Argentina bonds with pari passu clauses shortly before the country's 2001 default which involved $100 billion in sovereign debt - the biggest (so far) sovereign default, but at prices at fractions of par, and the "incremental recovery" in this case being an Argentinian three-mast frigate, the ARA Libertad (which serves as a school ship in the Argentine Navy) which the fund "seized" after it was impounded off the coast of Ghana a month ago "following judgments in our favor against Argentina in the U.S. and the U.K." as Elliott writes in its latest investor letter.

In other words, both Elliott and Argentina are learning the hard way, that in an insolvent world where there is no driving force to push the debtor and creditor to reach amicable, if increasingly more unpleasant outcomes (such as Europe, if only for the time being), one has to resolve to ever more unpleasant tactics to get what one believes belongs to them.

What is particularly interesting in the drawn out legal case of Elliott, or technically NML Capital, vs Argentina, western courts have ruled in Elliott's favor on several occasions, most recently the 2nd Circuit Court of Appeals, which upheld the Pari Passu clause of the pre-petition bonds. To wit:

We hold that Argentina breached its promise and, accordingly, affirm the underlying judgments of the district court.

In brief, what this means is that Elliott which bought Argentina bonds, of which there was about $100 billion nominal, at a discount, spearheaded a holdout class that refused to be rolled into an exchange offer whereby the firm would receive 25-29 cents in recovery (roughly comparable to what Greek bondholders got in the first PSI from early this year), and instead has held out for par recoveries. Argentina, in turn, has refused to concede to Elliott's demand and while continuing to pay the consenting creditors, is adamant in refusing to even acknowledge that Elliott has any rights, despite numerous courts finding the firm falls under a pari passu umbrella.

What this really means is that Western courts have decided that Elliott has not been stripped of pre-petition rights despite, or rather in spite of, holding out, and is entitled to collecting up to par recovery. There is one problem: there is absolutely no enforcement mechanism!

And therein lies the rub: because how does a court located on Pearl Street in New York order the Argentina State Treasurer located in Buenos Aires to wire a payment on bonds, via intermediary banks, that Argentina effectively has disowned? It can't. Or rather, it can't using peaceful means and/or simple M.A.D. coercion of the type one can apply in Europe (remember: Greek creditors had to agree to a massive haircut, and more to come, as the alternative was a Greek default, Grexit, collapse of the Eurozone, dissolution of the EUR, redenomination, massive losses on Spanish and Italian bonds, and who knows what other apocalyptic scenarios). It can, of course, use military means but the time for a Falklands-type escalation has not come yet. Indeed, the fact that there is no way to enforce any judgment is why the Second District added the following remand in its judgment:

However, the record is unclear as to how the injunctions' payment formula is intended to function and how the injunctions apply to third parties such as intermediary banks. Accordingly, the judgment is affirmed except that the case is remanded to the district court for such proceedings as are necessary to clarify these two issues.

Elliott, in court, stated that as part of its proposed enforcement process, the next step would be to go after complying intermediary banks for aiding and abetting, by paying exchange bondholders without paying the holdouts. However, what is clear is that in the case of enforcing intermediary banks from complying with any judgments, there is again no set case law, and whereas Elliott will litigate, and likely win, by the time there is a final injunction, Argentina will likely have defaulted once more (there is a reason why its bonds have plunged in recent days, and it has nothing to do with this particular sideshow which is merely litigation from its last restructuring). In the meantime, Elliott continues to be the odd man out and there is no way to force anyone to wire it money, despite its legally-enforced argument it has fully equitable claims.

Today, Argentina confirmed all of this, after its economy minister stated, very clearly, that no deal would be struck to pay "vulture funds", and that Elliott would get no love from Buenos Aires, and certainly not one penny. From the Buenos Aires Herald:

Economy minister Hernán Lorenzino assured today that the government "will never pay" the 'vulture funds,' although also affirmed that it will continue to pay "93 percent of the credit owed."

"We will continue to pay them in dollars, euros and yens, as we should be. We will respect up to 93 percent of the bond payments."

"Those who think differently haven't understood anything. What happened with the ship (Libertad) and the ruling in New York last week are attacks that do not go by the book.

"Clearly there are sectors that can't cope with the successes of debt-reduction."

We now eagerly await to see what Argentina's response will be to "attacks that do not go by the book" - most likely nothing. But the Libertad diversion has hardly made Argentina a fan of Elliott's tactics.

As for Elliott, what just happened with the ship confiscation case study is a model of how the fund will generate ongoing recoveries: it will literally "grab" any Argentinian property it can in friendly jurisdictions, and await for a judgment that makes it officially property of the hedge fund. The only problem with this approach is that it will have to confiscate a whole lot of Argentinian assets - NML has said it was willing to release the vessel in exchange for a bail of $20 million. Considering Elliott's claim is for $1.6 billion in Argentina bonds (notional value, the cost is far, far lower), the hedge fund would need to become the world's largest legal and legitimate privateer.

And while this in many ways is almost a comic diversion, it brings us to a topic which we are confident will be far more discussed in 2013: how creditors will be "made whole" on their international bond claims in a world in which there is about $30 trillion in excess debt. Sadly, there will not be nearly enough frigates to satisfy everyone. The reason: even as sovereign debt piles on more and more and more (to offset the leveraging by the household, financial and corporate sectors), the actual sovereign assets are declining with each passing day, as the newly raised money goes not to rebuild an asset base (a prudent investment decision), but to fund already deficient capital in a global welfare state that is simply unsustainable.

But much more on that in early 2013, when the international defaults commence in earnest, first in Spain where local-law bonds will be the first to go, then Japan, and thereafter: everywhere else.

As for the Argentina vs Elliott bare-knuckled match, enjoy it while you can: very soon the Latin American country will likely proceed with yet another round of creeping selective defaults, exchange offers, consent solicitations, and other debt reorganizations, which will make the current free-for-all into a total and epic labyrinth of creditors, interests, bondholder classes, general unsecured claims, and other total confusion which we are confident, will soon lead Elliott to give up in disgust and just walk away.

After all why bother with Argentina: there are far higher IRRs to be generated by shorting local-law Spanish bonds while buying their international-law cousins. In fact, courtesy of the current government's arrogance and naivete, the position can be put on in a cost, and carry, neutral basis. Then sit back and just wait for the spread to blow out.

THE FIRST 12 HOURS AFTER A U.S. DOLLAR COLLAPSE

Posted: 31 Oct 2012 07:43 PM PDT

Euro Debt Crisis: Could Gold Come To The Rescue?

Posted: 31 Oct 2012 07:40 PM PDT

from Econmatters:

An analytical piece by Stephen Fidler of The Wall Street Journal's "Brussels Beat" on October 18^th raised the prospect of the use of gold as collateral for sovereign debts, something that sounds like a big step toward re-monetization. One story does not make for a policy shift, but it is good that such ideas have returned to the mainstream of discussion after a long and unhealthy exile.

Fidler was in turn inspired by two papers, one a policy note prepared for the European Parliament, by Ansgar Belke, and commissioned by the World Gold Council. The other paper, also commissioned by the WGC, was a "Europe Economics Executive Brief" written by Andrew Lilico. And yes, as Fidler acknowledges, the WGC is hardly a disinterested party. Still, unless we are to decide that ad hominem disqualifications are now good things, (not a decision that will help anyone in search of alpha), we ought to take a look at this new fermentation about the old precious metal.

More @ Econmatters.com

THE TREMENDOUS ECONOMIC BENEFITS OF SUPERSTORM SANDY

Posted: 31 Oct 2012 06:26 PM PDT

Bastiat understood the ridiculousness of Kenesianism and the foolishness of believing that a disaster leads to economic growth.

Bastiat's original parable of the broken window from Ce qu'on voit et ce qu'on ne voit pas (1850):

Have you ever witnessed the anger of the good shopkeeper, James Goodfellow, when his careless son has happened to break a pane of glass? If you have been present at such a scene, you will most assuredly bear witness to the fact that every one of the spectators, were there even thirty of them, by common consent apparently, offered the unfortunate owner this invariable consolation—"It is an ill wind that blows nobody good. Everybody must live, and what would become of the glaziers if panes of glass were never broken?"

Now, this form of condolence contains an entire theory, which it will be well to show up in this simple case, seeing that it is precisely the same as that which, unhappily, regulates the greater part of our economical institutions.

Suppose it cost six francs to repair the damage, and you say that the accident brings six francs to the glazier's trade—that it encourages that trade to the amount of six francs—I grant it; I have not a word to say against it; you reason justly. The glazier comes, performs his task, receives his six francs, rubs his hands, and, in his heart, blesses the careless child. All this is that which is seen.

But if, on the other hand, you come to the conclusion, as is too often the case, that it is a good thing to break windows, that it causes money to circulate, and that the encouragement of industry in general will be the result of it, you will oblige me to call out, "Stop there! Your theory is confined to that which is seen; it takes no account of that which is not seen."

It is not seen that as our shopkeeper has spent six francs upon one thing, he cannot spend them upon another. It is not seen that if he had not had a window to replace, he would, perhaps, have replaced his old shoes, or added another book to his library. In short, he would have employed his six francs in some way, which this accident has prevented.

Small stores, restaurants, and thousands of other businesses were shut down for at least two days and some will be closed for a week or more. These businesses employ hundreds of thousands of hourly workers. These businesses earned no revenue, therefore their profits were reduced. The hourly workers did not get paid. Therefore, they have less money to spend for clothing, tech gadgets, food, etc. Both the businesses and the workers will pay less taxes to the government, increasing the national debt.
The reduced revenue at retailers due to being closed and reduced spending by customers will cause them to layoff more workers or in the case of smaller retailers, go out of business altogether.
The damage caused by the storm will result in insurance companies providing billions in claim payouts. This will reduce their earnings, causing them to layoff employees in order to meet their quarterly earnings expectations. Some smaller insurance companies may go out of business.
Anyone with a tree down in their yard, damage to their fence, roof damage, flooded basement, etc. that is not covered by insurance will have to spend hundreds or thousands of dollars on fixing the damage. This is money they won't spend on Christmas presents next month.
Many people do not have the savings to fix the damage to their houses. They will put the costs on their credit cards paying 15% interest to the criminal Wall Street cabal.
Politicians and government drones will declare we must rebuild and help those in need. They will approve $20 billion of "Federal" disaster relief. But, we all know the $20 billion does not exist in a government bank account. It will be borrowed from future generations. It will just be added to our current $16.3 trillion tab. We will pay interest on this $20 billion FOREVER. The true cost of the $20 billion relief will be $30 billion after decades of accumulated interest. It's like an ignorant American taking a $20,000 vacation, putting it on their credit card and making the minimum payment for eternity.

Some Incredible Gold Charts

Posted: 31 Oct 2012 06:08 PM PDT

Technical analysis is a great tool for analyzing where the market has been. Since human beings almost always behave in cyclical fashion, we can observe patterns in market action that tend to repeat. Combined with fundamental studies, TA is applied to the markets by virtually all of the successful traders. Some patterns occur so often that names have been assigned to these patterns such as: ‘Head and Shoulders’, ‘Cup with Handle’ and ‘A.R.A.T.’ In this essay we draw your attention to another pattern that recently occurred on the gold charts, for only the fourth time in the past seven years. Each time it appeared during the past seven years, it precluded a strong advance. The pattern is called: ‘Golden Cross’, or ‘Bull Cross’. Here is a chart (all charts courtesy Stockcharts.com unless specified), that has a blue arrow pointing to the pattern we are referring to. During Augus...

Is Santa Coming Early for Gold & Gold Mining Stocks?

Posted: 31 Oct 2012 06:04 PM PDT

Is Santa Coming Early for Gold & Gold Mining Stocks?

Courtesy of Chris Vermeulen

If you own physical gold, gold mining stocks or plan on buying anything related to precious metals before year end, you might like my analysis and outlook.

Since gold topped abruptly a year ago (Sept 2011) with a massive wave of selling which sent the price of gold from $1920 down to $1535, technical analysts suspected that type of damage which had be done to the chart pattern could take a year or more to stabilize before gold would be able to continue higher.

Fast forwarding twelve months to today (Oct 2012). Gold looks to have stabilized and is building a basing pattern (launch pad) for another major rally. The charts illustrated below show my big picture analysis, thoughts and investment idea.

Weekly Spot Gold Chart:

The weekly chart can be a powerful tool for understanding the overall trend. This chart clearly shows the last major correction and basing pattern in gold back in 2008 – 2009. Right now gold looks to be forming a very similar pattern.

Keep in mind this is a weekly chart and if you compare the 2009 basing pattern to where we are today I still feel it could take 3 – 6 months before gold truly breaks out to the upside and kicks into high gear. The point of this chart is to provide a rough guide for what to expect in the coming weeks and months.

Weekly Chart of Junior Gold Miner Stocks:

If you follow gold closely then you likely already know junior gold mining stocks can lead the price of gold up to two weeks. Meaning gold mining stocks which you can track by looking at GDX and GDXJ exchange traded funds will form strong bullish chart patterns and generally start moving up in price before physical gold.

The chart below shows the junior gold miner ETF with a VERY BULLISH chart and volume pattern. Remember that gold stocks are a leveraged play on gold in most cases. For example, if gold moves up 1% we typically see GDX and GDXJ move 2-4%. Because they act as a leveraged play on physical gold smart money and big institutions start accumulating these investments in anticipation of gold rising.

GDXJ has formed a tight bull flag and the volume levels confirm there is big money moving into these investments. The first price target on GDXJ using technical analysis for a measured move points to the $32 area. Looking forward twelve months with gold trading above $2000 we could see this fund more than double in value.

While most traders focus on GDX gold miner fund, I prefer the GDXJ fund because its almost identical in price performance BUT it pays you a 5% dividend…

Gold's Seasonality:

It's that time of year again where gold tends to move higher. Below you can see where we are and what the price of gold typically does in November.

Gold Investing & Trading Conclusion:

Looking forward one month (November) and factoring in the recent pullback in gold to known support levels along with strong buying of junior gold mining stocks, I feel gold will take another run at the $1800 level and for GDXJ to test its previous high of $25.50 at minimum. If both those levels get taken out then a massive bull market for precious metals could be triggered.

Get my Daily Trading Analysis & Trade Setups at: www.TheGoldAndOilGuy.com.

Chris Vermeulen

Disclaimer:
This material should not be considered investment advice. Technical Traders Ltd. and its staff are not a registered investment advisors. Under no circumstances should any content from this website, articles, videos, seminars or emails from Technical Traders Ltd. or its affiliates be used or interpreted as a recommendation to buy or sell any type of security or commodity contract. Our advice is not tailored to the needs of any subscriber so go talk with your investment advisor before making trading decisions This information is for educational purposes only.

Global Gold Shuffle: Suddenly, Countries Realize the Great 21st Century Flight To Gold Is HERE!!!

Posted: 31 Oct 2012 05:49 PM PDT

It Begins: Ecuador Demands Repatriation Of One Third Of Its Gold Holdings

If the Gold Price Closes Higher Tomorrow Stop Waiting and Buy

Posted: 31 Oct 2012 05:48 PM PDT

Gold Price Close Today : 1717.50
Change : 7.00 or 0.41%

Silver Price Close Today : 32.288
Change : 0.500 or 1.57%

Gold Silver Ratio Today : 53.193
Change : -0.616 or -1.15%

Silver Gold Ratio Today : 0.01880
Change : 0.000215 or 1.16%

Platinum Price Close Today : 1576.00
Change : 23.40 or 1.51%

Palladium Price Close Today : 609.00
Change : 13.65 or 2.29%

S&P 500 : 1,412.16
Change : 0.22 or 0.02%

Dow In GOLD$ : $157.63
Change : $ (0.76) or -0.48%

Dow in GOLD oz : 7.625
Change : -0.037 or -0.48%

Dow in SILVER oz : 405.61
Change : -6.72 or -1.63%

Dow Industrial : 13,096.46
Change : -10.75 or -0.08%

US Dollar Index : 79.91
Change : 0.021 or 0.03%

Look at the GOLD PRICE and silver price charts and report honestly what you see there: a breakout. Yes, a one-day breakout only. Yes, through the downtrend line only and not above lateral support, but it's plain as a wart on your nose.

The SILVER PRICE gobbled up 50 cents to close at 3228.8c, well above that 3200c blockade. Needs now to confirm the upturn by closing higher than 3250c.

The GOLD PRICE pulled in $7 to close at $1,717.50. Now it needs to confirm with a close above $1,725.

If we get the second day's close tomorrow above today's closes, the case is pretty well made that the correction has ended. Translation: if they close higher tomorrow, STOP WAITING and BUY.

One of the highest hurdles trying to read charts is to believe what your eyes see, instead of what your mind wants to see. Today I will ruthlessly talk about what I see.

The dollar index since mid-September has left behind a series of slightly higher lows and higher highs. Looks sloppy, and has been blocked by the 200 day moving average (80.63), but still looks like a market that is turning up. MACD indicator says the same, and it stands above its 20 DMA (79.72). Today it backed off 2.1 basis points to 79.906, but remains above 79.90 and the 20 DMA.

It would be an arrogant error to write the dollar off unless it closes below the last low at 78.93. Most likely next move is up, not down.

Euro is vibrating like a tuning fork but with less purpose and meaning. 20 DMA is $1.2977, and it buzzed back and forth across that line today but closed beneath it at $1.2958, although it rose 0.15%. Trend is down, if you believe the momentum indicators and chart.

Yen lost another 0.2% today to 125.31 cents and stands below its 200 DMA (125.95c). I wouldn't trade that nasty thing with your money. Locked in a downtrend.

Today's score: US$1 = Y79.80 = E0.7717.

Stocks looked sorry as gully dirt today. Every index except the S&P500 and Russell 2000 fell, and those two didn't rise enough to talk about.

S&P500 rose 0.22 (0.2%) to 1,412.16. Dow fell 10.75 (0.08%) to 13,096.46. Day's trading for both was weak as the Democratic Party Platform or Republican pacificism. Started the day off with a little rise, fell below unchanged by 11:00, then struggled underwater until day's end. Not the sort of result that builds confidence.

Look at that chart and admit what you see. Since September the Dow has rolled over, broken support of the rising wedge, traded up for the kiss good-bye, fallen off a cliff in what looks like a 3-wave, and is fixing to break down through its 200 DMA (12,979). Momentum indicators point straight down as a well pipe. Weeping, wailing, and gnashing of teeth in store here.

I'm sorry but I will not be sending a commentary tomorrow (Thursday) or Friday, because I will be in Colorado attending my daughter-in-law's funeral. God willing I'll return on Monday, 5 November.

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.

Golden Haarp & Allocated Gold Exposure

Posted: 31 Oct 2012 03:19 PM PDT

by Jim Willie CB October 31, 2012 home: Golden Jackass website subscribe: Hat Trick Letter Jim Willie CB, editor of the "HAT TRICK LETTER" Use the above link to subscribe to the paid research reports, which include coverage of critically important factors at work during the ongoing panicky attempt to sustain an unsustainable system burdened by numerous imbalances aggravated by global village forces. An historically unprecedented mess has been created by compromised central bankers and inept economic advisors, whose interference has irreversibly altered and damaged the world financial system, urgently pushed after the removed anchor of money to gold. Analysis features Gold, Crude Oil, USDollar, Treasury bonds, and inter-market dynamics with the US Economy and US Federal Reserve monetary policy. A nasty Golden Harp could soon have its cords plucked, with the resonance working to shake loose the bankster cover of improper illicit duplicit...

Der Spiegel Snickers About Germany's Gold But Avoids the Serious Questions

Posted: 31 Oct 2012 02:56 PM PDT

"Because of the situation in New York, it was very easy to push prices around...and that's what JPMorgan Chase et al did." ...

Nolan Watson–Renaissance Man Leading The Mining Revival

Posted: 31 Oct 2012 02:45 PM PDT

www.FinancialSurvivalNetwork.com presents

Nolan Watson is young but has nonetheless had a storied career in resource development finance and investment. He was CFO of Silver Wheaton a wildly successful royalty investment company. Then he went on to found Sandstrom Gold and Sandstrom Metals and Energy. Their success has been well deserved. They are providing capital to competent mining ventures who have been otherwise shut out of the market. Sandstorm Gold has an extremely disciplined approach to choosing worthy candidates, which has helped lift the stock from 50 cents to $14 in just a few short years. Quite an accomplishment in these trying markets.

Go to www.FinancialSurvivalNetwork.com for the latest info on the economy and precious metals markets

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

DOUG CASEY ON THE ELECTION 2012

Posted: 31 Oct 2012 02:43 PM PDT

(Interviewed by Louis James, Editor, International Speculator)

[Editor's Note: Your editor caught up with Doug Casey backstage at the New Orleans Investment Conference, where we both had just given talks.]

L: Doug, I know you're no fan of either presidential candidate – a pox on both their houses – but we got more questions today about what would happen to our investments if one or the other would win than just about anything else. So, what do you think – does it matter? Should we play things differently, depending on which one wins?

Doug: Well, I have to first say that I'm the worst US political handicapper ever. I don't have my finger on the pulse of hoi polloi in the barrios, ghettos, and trailer parks. Nor do I claim to know what Gen-Xers in the city are thinking, nor what passes for the white middle class in the suburbs, nor the oldsters in their retirement homes. I'm not a political animal. The only US presidential election I ever called right was the last one; I thought Obama would win. But then, in New Orleans, I was chatting with James Carville – who definitely is a political animal – and he doesn't know either.

That said, my gut feeling is that Obama is going to win again. That's partly because the incumbent always has the advantage, and partly because the mainstream media – which is where most people both get their information about what's happening in the world and how to interpret it – seem to overwhelmingly favor Obama.

L: I thought you didn't like making predictions…

Doug: I don't, but purely for entertainment purposes, I'll stick my neck out and predict an Obama win. Perhaps a deeper reason for this is that the electorate itself has become corrupted – even more than they were four years ago.

L: When more than half of voters receive some kind of government subsidy or another, they can always be counted upon to vote for more government largess, and the game is essentially over?

Doug: It's a serious problem of mass psychology. Most people today think that whenever there's a problem, it's the government's job to "do something" about it. Obama is – at least as far as his rhetoric goes – much more activist about "doing things" than Romney. On the other hand, all politicians are enthusiastic and skilled liars. So Romney might go wild with social programs, all the while saying something idiotic about trying to save capitalism.

L: People are afraid and one paycheck away from being evicted, and Obama's the one promising two chickens in every pot.

Doug: Exactly. The election of 1932 is noteworthy in that context: a time of economic crisis, depression, and politicians promising "bold measures." The key is that the Depression unfolded on Hoover's watch, so he gets the blame. But he actually does deserve a lot of blame. If he'd cut taxes and spending radically and deregulated, it would have been a short readjustment, like the 1921 depression after World War I. He did the opposite. In point of fact, Hoover started many socialist programs along the lines of the New Deal programs FDR later became famous for. The Hoover Dam, for instance, was a major public-works project such as the Public Works Administration would later undertake, meant to create jobs. He also increased the top income-tax bracket from 25% to 63%.

Most people don't know this, but Roosevelt …

L: …campaigned against such measures.

Doug: Yes, he campaigned on a free-market platform that seemed to offer hope that he would do the right things; and then, once in office, he turned around and did the exact opposite. He raised the top tax rate even further, first to 79%, then 81%, then 88% – and with that last one, in the middle of World War II, he dropped the income level it applied to from $5 million to $200,000. Contrary to popular belief, this did not get the US out of the Great Depression, but made things worse. The only reason he's regarded as a hero today is that he had the singular good luck to enter office in 1933 – when the worst part of the Depression was over. But he did make it worse, and people still think Roosevelt's programs helped, and most people believe it was the war that ended the Depression. In fact, real recovery didn't begin until after the war.

L: Flash forward to today. If things are similar, that would make Obama the incumbent with the socialist track record, and Romney today's FDR. Romney's the one people see as a businessman who knows how to do things to help the economy – even though as governor, he implemented a socialized medicine program before Obama tried to.

Doug: The problem is that the US hasn't really had a liquidation of malinvestment as it did from 1929 to 1933. So I think whoever is elected now is going to get blamed. Romney is an empty suit. He's said that he doesn't plan to cut welfare, wants to spend much more on the military, and he has other spending proposals that make him nothing more than Obama-light. This is actually what Republicans have almost always done, because most have no principles – certainly none in modern times.

L: So what happens if Romney wins? A lot of people seem to believe it will make a huge difference.

Doug: Well, he might be better for taxpayers in the short term; but, for the long run, it would be very unfortunate if Romney wins. That's because he would be associated with free-market economics, as Republicans almost always are. A real pity. The social and economic disaster that's looming over the next four years would incorrectly be blamed on capitalism.

I'm convinced the Greater Depression has started. We've gone through the leading half of the storm. Obama got the eye of the storm, and now we're headed into the trailing edge of the storm, which is going to be even worse than what we saw in 2008-2009.

L: It'd be just as the Great Depression, which resulted from government interference in the economy, is usually blamed on the "unrestrained laissez-faire capitalism" of the 19^th and early 20^th centuries.

Doug: Exactly. And if two Great Depressions were seen to be caused by free enterprise, that would deeply entrench a highly destructive error and have long-lasting consequences. From a long-term point of view – if you care about posterity – it's actually better if Obama wins. Then socialist-style ideas might get more of the blame for the train wreck.

On the other hand, the continuing global economic crisis (and much worse to come) would be a great excuse for Obama to open the floodgates on all kinds of really, really stupid ideas.

L: As a second-term president with no possibility of re-election to worry about, he could go wild, no holds barred.

Doug: Yes. He'd have time and a free hand to firmly entrench many seriously bad ideas in Washington. And once a new program gets its own bureaucracy, with its own buildings, it's impossible to get rid of. Lenin was right when he said, "The worse it gets, the better it gets."

L: So we're damned either way?

Doug: I'm afraid so. I've said it before: there's no way out but through the wringer. We get a deepening of the Greater Depression regardless of who wins. If Romney wins, it gets blamed on capitalism, which would be a long-term disaster. But if Obama wins, we'll get a Krugman-Stiglitz wet-dream of a government. That would be a complete near-term disaster.

L: So if I had terminal cancer and I voted, Romney would be my man?

Doug: Maybe, if you didn't think you'd last more than a year or so. You'd likely get to keep more of your money while you lived. But there's another important difference: the federal bureaucracy is now thoroughly populated with Obama's apparatchiks. Romney couldn't save the US from the Greater Depression, even if he were a real free-marketeer – which he most assuredly isn't. But he could expunge a lot of those poisonous parasites, replacing them with his own crew. We'd still have just as many parasites, but perhaps of a slightly less toxic variety. And even if they were just as bad, they'd still take a while to get going, so there'd be a reprieve for that time, at least.

L: You're absolutely sure there's no way Romney could save the day – even if he revealed himself to be a Ron Paul clone, once he got into the White House?

Doug: No. The state itself has too much momentum in the wrong direction now. As I've pointed out before, any serious changes would result in a talking-to by the heads of the various Praetorian agencies. If he survived that, the Supreme Court would strike down most of what he did, and the Congress would legislate against it. And the people would riot, as if they were Greeks. As you pointed out, when the people realize that they can vote themselves free lunches rather than work for them, a democracy is doomed.

L: Who was it who called democracy "an advance auction on stolen goods?"

Doug: H. L. Mencken, a genius – one of my favorites. But what he actually said was that "every election in a democracy is an advance auction on stolen goods." We covered the futility of trying to get the "right" person elected in our conversation on Ron Paul. The state is corrupt, the politicians are corrupt, and the final straw, the electorate is corrupt. There's no way out but through the storm.

L: Famous last words.

Doug: I know, but that's the way I see it. It's as with Wile E. Coyote. He runs off a cliff, and you logically think he's going to fall right away. But he doesn't – his feet keep windmilling in the air, and the law of gravity doesn't kick in until long after he should have dropped. The US now resembles nothing more than a hapless cartoon character.

In essence, the things we think must happen usually take much longer than we imagine possible. But once they start, they usually happen much faster than we imagine possible.

But I'll go out on a limb again and say that I'm reasonably certain the economic house of cards that the US and other governments have been propping up since 2007 will collapse not just within the next four years, but likely in 2013 and 2014. It's happening in Europe now – they really have reached the end of their rope. It'll happen shortly in Japan as well, the most indebted society in the world. It''s going to happen in China. And that's going to bring down the resource-oriented countries – Brazil, Australia, South Africa, Canada, Russia. It's going to be a worldwide cataclysm.

This whole debt issue, by the way, is critical. As I've said numerous times, you get wealthy by producing more than you consume and saving the difference. The opposite, consuming more than you produce, results in the depletion of wealth, either as savings are drawn down or debt is accumulated. You're either destroying the productive capacity of past accumulations of capital or mortgaging the productive capacity of future accumulations of capital. Either is bad economics, whether for a household or a country; and we're seeing both – and will continue to see both, regardless of who wins the next US election.

With the idiots who run the world's central banks doing their best to keep interest rates at near zero – actually severely negative in real terms – they're discouraging saving and encouraging even more debt.

There are no political solutions. The economic problems are bigger than any politician. There's no way out. I pity the poor fool who wins this election.

L: Let's look at the short term again. If Romney wins and lots of investors think he'll "fix" the economy, there could be a surge in the stock market based on nothing more than expectations. On the other hand, if Obama wins and investors expect higher taxes, they could sell in advance of that happening – people are talking about "tax-gain selling" this year in addition to tax-loss selling.

Doug: I really don't think any of that matters. People think the economy rests on a base of psychology, but they are wrong. What makes an economy work is not confidence and not consumption, but production. What makes an economy grow is savings – accumulation of production in excess of consumption that can be invested in new things.

If Romney wins, people start spending on consumption again because they're confident, but that's not a good thing. What needs to happen is for past mistakes to be fully and truly liquidated, and the economy needs to be freed so that people can produce more, consume less, and save. Then we can build a real solid foundation for future growth. All the conventional hack economists, however, believe that the banks should lend more to enable people to consume more, and that will stimulate production. That's going to make things worse. It will be production catering to unsustainable patterns of consumption – further exacerbating the problem, which is that the US and many countries have been living way above their means for a long time.

L: I agree, but economic fundamentals are subject to transient headwinds and tailwinds. A lot of investors – including many gold bugs – think that if Romney wins, he'll be good for the economy, and that will make people less fearful, and that will reduce gold's luster as a safe haven. The driving reality is the trillions of currency units that governments around the world have created – an interesting side note is the recent all-time-high that gold reached in euros – but prices are fixed at the margins. Very near term, even incorrect expectations could impact prices, could they not?

Doug: I think it's a mistake to try to predict mass psychology on a short-term basis like this. Too volatile. A bad day on American Idol could change things drastically.

But here's how I read it. Romney is a not particularly thoughtful pragmatist with no real principles. If he wins, he'll probably implement just as many wrong-headed socialist ideas as Obama would, varying only in their details and pet interests, not in their essential nature. Just like Obama, he's going to try to use the government to fix the economy, and that's the exact opposite of what needs to be done; the government needs to get out of the way and let economic activity go where it will. He'll "do something." He'll just tart up his actions with different rhetoric.

So things are going to get much worse whoever wins, and if it's Romney, it's more likely that he'll resort to military adventurism to "wag the dog" more quickly. Obama has continued the war in Afghanistan and likes to take credit for the extrajudicial killing of Osama Bin Laden – he's so drone-happy, I almost wonder if he's the president who'll activate Skynet – but Romney is clearly the more hawkish of the two, and that's one of the worst things about him.

L: So, don't vote… But we've already said that.

Doug: Well, if you insist on voting, consider pulling the lever for Gary Johnson, the ex-governor of New Mexico, on the Libertarian ticket. The die is cast for the next few years. The US deficit will continue ballooning and the Fed will keep printing up dollars, regardless of who wins. But if you care about the consequences of this election, the main consequence to consider is the impact on the next round in 2016 – assuming the US still has elections by then.

Things will be so bad in the next few years, people will be looking for something different. They'll have no hope, and they'll want serious, radical change. If Romney wins, the Democrats will take the White House in 2016 for sure, and that will likely mean Hillary. She's perhaps the most dangerous Democrat possible, a real-life version of Dickens' Madame LaFarge, or perhaps a reincarnation of Evita Peron. About the worst person I could think of to ever become president. She would totally wipe out whatever little is left of America by then.

On the other hand, if Obama wins, the Republicans will probably win in 2016. By then, things will be such a mess, so chaotic, it will be time for a general to step into the ring. People in the US love their military now – a strange thing to see for someone who remembers how hated the military was during the Viet Nam war. No one would have dreamed of voting for a general back then. But now, a right-wing general who's perceived as being decisive and incorruptible could play the role of the "man on a tall white horse" who can lead the nation forward. And that would not only increase the chances of more stupid, wasteful wars, it could really turn the US into a true police state. He'd treat the country like a military camp.

L: If we're damned if we do and damned if we don't, what's a person to do?

Doug: The only thing to do is to stop thinking politically. Stop looking for political solutions to socioeconomic problems; political solutions are poisonous, certainly at this point. The political system is terminally corrupt – it needs to be flushed.

Look to take care of yourself first. If you're not in a strong, stable position, you won't be able to help your family, friends, and others you care about. As cold-hearted as it may sound, the right thing to do in a period of social disintegration and economic collapse is to look out for #1. Make sure you're not a liability to yourself and others. Charity begins at home – that's the first order of business.

Second, after you're secure, look out for your friends and family – at least the ones who will listen and you can move to take action in a sensible direction. This is the best thing you can do for them, but it's also a selfish thing to do for yourself; you'll need all the allies you can get, going forward into turbulent times.

If you have time and energy left from that, you can start looking into what influence you can have on the larger world. Which is to say, only at that point can you afford to think politically. But that's pretty far down on the hierarchy of importance these days.

L: Investment implications. Is there no "Obama play" or Romney play" – some trade you might rush out and implement depending on who wins?

Doug: No. The only certainty I see is increased financial chaos. An argument can be made for catastrophic deflation, but I believe we'll see the opposite. The Fed has promised a minimum of $40 billion a month in new liquidity. And at some point the banks, which are generally not lending much, will start doing so. When all the cash they are sitting on starts flooding into the economy, we'll see inflation in earnest and interest rates of 10%, 20%, even 30%, just like in a banana republic. That's going to trash the US dollar. And since most savers save in dollars, that's going to wipe out the productive class, worldwide.

Furthermore, as we've pointed out before, there's a super-bubble in government bonds. I call them a triple threat to your wealth: interest rate risk, credit risk, and currency risk. Rick Rule has taken to calling them "reward-free risk." Just as the tech bubble burst in 2000, and then the real-estate bubble burst, the next one is the bond bubble, with immense destruction of capital.

I continue to say that, as impossible as it sounds, that all markets are overpriced. There is simply nothing in the whole world – not stocks, not bonds, not real estate – nothing that I can say without qualifications is cheap. So, with everything riding high, you've got to continue accumulating gold and silver to protect yourself from financial chaos, and you've got to diversify yourself internationally to protect yourself from government chaos. To speculate, of course, there are the gold stocks. They're a leveraged bet on government continuing to do the wrong things.

I've said it before and I'll say it again: the governments of the world consider people to be their property. Right now, they see their subjects as milk cows, but when things get really rough, they might see them as beef cows.

L: The end is nigh. Good thing you're an optimist.

Doug: [Chuckles] We should make sure new readers understand that you're not just being sarcastic. I do think things will get even worse than I think they will, but I also believe they will subsequently get even better than I can imagine them being, thanks to the longest trend of them all, the Ascent of Man.

L: Indeed. Thanks, Doug.

Doug: My pleasure.

Gold Seeker Closing Report: Gold and Silver Gain About 1%

Posted: 31 Oct 2012 02:13 PM PDT

Gold climbed to as high as $1725.63 by late morning in New York before it fell back off a bit in afternoon trade, but it still ended with a gain of 0.68%. Silver surged to as high as $32.411 before it also fell back off, but it still ended with a gain of 1.51%.

Rick Rule - There Is Spectacular Demand For Gold Right Now

Posted: 31 Oct 2012 02:08 PM PDT

Today Rick Rule told King World News that right now, "There is spectacular demand for gold." Rule gave the example that "... the British (Royal) Mint, they are sold out of sovereigns. They have no more 2012 sovereigns."

Rule also spoke about demand in the US and Canada, but first, Here is what Rule had to say about the ongoing crisis the Western world is facing: "One of the things about human nature is that people tend to want to believe things that comfort them. I certainly would prefer to believe that the governments are on top of all of the problems in the world and I don't have to worry about it."

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

Golden Haarp & Allocated Gold Exposure

Posted: 31 Oct 2012 02:00 PM PDT

A nasty Golden Harp could soon have its cords plucked, with the resonance working to shake loose the bankster cover of improper illicit duplicitous and probably highly illegal usage of Allocated Gold Accounts. When diverse scattered accounts are pilfered and depleted without authorization in Switzerland, resulting in several multi-$billion class action lawsuits in Zurich, all kept dutifully out of the news, that is one thing. But when a few key official government gold accounts are ransacked in systematic fashion from established trusted locations, defying and betraying the trust of the German Govt and other national governments, that is quite another.

Jim's Mailbox

Posted: 31 Oct 2012 01:50 PM PDT

Greece delays austerity vote, warns of 'chaos' CIGA Eric

As long as interest rates remain below dividend yields, expect capital to continue flowing into gold, silver, and stocks to the point of extreme concentration (buying climax) despite all pessimism and a growing number of calls for austerity.

The real concern comes after the

Continue reading Jim's Mailbox

Silver Stocks vs. Palladium

Posted: 31 Oct 2012 01:32 PM PDT

Before making any investment decision it's usually good to look at the situation from different perspectives and make sure that the action that you are about to take is really justified. In fact, the same is the case with any other decision as well. Read More...

Weak Dollar Policies Could Result In Trade Wars and Higher Consumer Prices

Posted: 31 Oct 2012 01:16 PM PDT

By Axel Merk Our leaders want a weaker dollar and a stronger Chinese renminbi (RMB). That's our assessment based on recent comments by President Obama, presidential hopeful Romney and Federal Reserve (Fed) Chair Bernanke. If you join them in that call, OK, just be careful what you wish for, or at least consider taking action [...]