Gold World News Flash |
- GoldSeek.com Radio Gold Nugget: Dr. Stephen Leeb & Chris Waltzek
- Asian Metals Market Update
- Central Banks Renew Currency Swap Lines
- Just Coincidence? Queen is Trotted Through Bank of England’s Gold Vault
- We Are Witnessing The Death Of Small Business In America
- KWN Friday Gold Chart Mania
- Gold Seeker Closing Report: Gold and Silver Fall Almost 1% and 3%
- Marc Faber: “Paul Krugman Should Go And Live In North Korea”
- Gold Standard…Or Free Gold?
- NO HSBC Bankers Going to Prison for Aiding Al-Qaeda!! Proves Elite Have a ‘get-of-out-of-jail card'
- Marc Faber: "Paul Krugman Should Go And Live In North Korea"
- GOLD – a LOOK BACK, and a LOOK FORWARD.
- LGMR: Gold & Silver Fall Hard from 2-Week High as New Fed Easing Spooks Traders
- Bear Market for Juniors Now at 22 Months, Reversal Near?
- Lee Quaintance and Paul Brodsky: For Gold Market Rigging, Look East Too
- Tax on U.S. gold mining could be budget windfall, congressmen say
- The Gold Price Broke it's $1,705 Support and Fell $21 Closing at $1,695.60
- A Totally Different Ballgame Soon / Crime In A Flash
- The 12 Charts Of Christmas
- Gold Daily and Silver Weekly Charts
- Confiscation of Gold - Then What?
- Technical Trades Of the Week - SPX, Dollar, Nat Gas
- Jeffrey Christian: Silver Demand is Weak, Enormous Surpluses to Cause Silver to Outperform Gold to the Downside
- Just coincidence? Queen is trotted through Bank of England's gold vault
- Just coincidence? Queen is trotted through Bank of England's gold vault
- Save the Middle Class… and Everyone Else
- Profit, Protection, Despite Cartel Intervention – December, 2012 Update
- Standstill: The Charts That Prove The Global Economy Is In Serious Trouble
- Confiscation of Gold - Then What? - Part 1/4
- Gold - A Look Back, and a Look Forward
- Top central banks extend dollar-lending program
- Largest Capital In The World Now Entering Gold & Silver Space!
- Stock Market SPX, U.S. Dollar, Natural Trading Markets
- I ADMIT IT!
- The Daily Market Report
- BERNANKE SHOT HIS LOAD & THE WALL STREET WHORES YAWNED
| GoldSeek.com Radio Gold Nugget: Dr. Stephen Leeb & Chris Waltzek Posted: 14 Dec 2012 08:23 AM PST GoldSeek.com Radio Gold Nugget: Dr. Stephen Leeb & Chris Waltzek |
| Posted: 14 Dec 2012 12:01 AM PST The firmness in gold prices is an indication that bears are having a hard time. Gold did not fall like a pack of cards and the fact it managed to trade over $1685 could result in bears giving up their fight if gold is able to trade over $1685 today. Silver fell but is volatile. I am not going to get gung ho over the bear trend in gold and silver and would rather wait for gold to fall below $1685 and silver to remain below $3220 to press the sell button. |
| Central Banks Renew Currency Swap Lines Posted: 13 Dec 2012 11:26 PM PST On November 30th Zerohedge published material covering the FRBNY FX Liquidity Swap lines and the confusion blatant lying coming from the Chairsatan himself and current headline making Pol, the very misinformed Senator from Tennessee Bob Corker. As was highlighted then, the FRBNY FX Swap Lines are designed dampen the pressure on short-term funding markets in Europe (though below that facade lies the true purpose of this facility's existence; litigation arbitrage). As reported by Reuters, global central banks (excluding BoJ for now) have agreed to renew the currency swap lines offered through the US FED for another year. The purpose of this facility, as described by the FRBNY, is to:
This facility will continue to be available to the CB's of Canada, England, Europe, and Switzerland. According to Reuters, the Bank of Japan is holding out on deciding to join and will announce their intentions at the culmination of their December 19-20 policy meeting. Following the ECB, the Bank of Japan is the next largest participant in the FRBNY Swap Lines.
Since the ECB is largest dependent of US Fiat here are three key charts highlighting the ECB's current situation and going forward watch for material changes here to lead any reports on the tightening of funding markets in Europe: These data contain ex post data (in EUR millions) on volumes of: 1) open market operations; 2) recourse to the marginal lending facility; 3) use of the deposit facility; 4) autonomous liquidity factors; 5) current account holdings; and 6) reserve requirements. These data contain benchmark allotment amount (in EUR billions) which is the allotment amount in the main refinancing operations that allows counterparties to smoothly fulfil their reserve requirements, taking into account the expected liquidity supply through other open market operations and the ECB's forecast of autonomous factors and excess reserves. You can see the decline beginning in August 2011 as a result of the US Debt Ceiling mess. As a reminder, February 2012 was the month the ECB drew its largest amounts on a weekly basis ($89.1 billion to $89.6 billion).
Current Account:
After a substantial wind down in the FRBNY FX Swap Lines since Q1 2012 it would appear that conditions have improved globally, aside from the obvious which is how insolvent Sovereign Governments will fund their ever expanding nanny states. As Zerohedge also noted in July, the drop off in the deposit facility does not mean that money is being put to good use but merely that it has shifted to the Current Account. CB's are expecting further turmoil regarding access to the world's reserve currency and when funding tightens again global citizens can expect a computer driven unwinding of assets in favor of cash as margins are raised and the recent "borrowed money" driven market sells itself off.
Via Reuters Top central banks around the world on Thursday renewed a series of currency swap lines set during the 2007-2009 financial crisis, providing a precaution against future market strains. The U.S. Federal Reserve said it had extended for another year the dollar swaps with the European Central Bank, Bank of Canada, Bank of England and Swiss National Bank. The announcement was released at the same time by the other central banks. These provisions were an important part of the powerful response launched by monetary authorities during the crisis to keep global financial markets open, curbing lofty dollar funding costs which had spiraled due to fear Swap arrangements were revised and extended in November, 2011 as the euro zone debt crisis intensified, to ease the dollar funding pressure being experienced by some European banks. Washington views the problems in Europe as a direct threat to the U.S. economy's own tepid recovery owing to deep trade links, and sanctioning the dollar swaps is one direct way U.S. authorities can help out their European counterparts. Use of the swap lines peaked at $583 billion in December, 2008 but has since steadily declined, and stood at around $12 billion earlier this month. The Fed said the central banks had also renewed until February 1, 2014, bilateral currency swap arrangements that would also provide liquidity "should market conditions so warrant." The Bank of Japan separately said that it will decide on joining the extension of central bank liquidity swap arrangements at its next policy meeting, on December 19-20. The Fed's dollar swaps have led some political foes of the U.S. central bank to claim that it was putting American taxpayer money at risk. The Fed robustly denied this accusation. It only conducts swaps with other central banks. These central banks may lend to proceeds on to private banks in their own countries, but they take on the credit risk from those transactions themselves and it is not borne by the Fed. In addition, because the transactions are indeed "swaps", the Fed receives foreign currency in exchange for providing dollars, giving it with collateral in the event of non-repayment. It also earns interest on the dollars it provides. Furthermore, all foreign exchange risk is hedged out in each swap, so there is no risk of the Fed suffering a loss from any change in currency values during the duration of the deal. |
| Just Coincidence? Queen is Trotted Through Bank of England’s Gold Vault Posted: 13 Dec 2012 11:10 PM PST by Chris Powell, GATA:
First, a few days ago, the Bank of England invited videojournalist Brady Haran and University of Nottingham chemistry Professor Martyn Poliakoff to tour its gold vault for a fascinating lecture in which the professor discussed gold's remarkable qualities. (Of course gold's most remarkable quality, politely overlooked by the professor, may be its capacity to replicate itself to infinity in the hands of a central bank — just like ordinary money.) The Guardian's report of the tour, along with a link to the video made about it, is here: |
| We Are Witnessing The Death Of Small Business In America Posted: 13 Dec 2012 11:00 PM PST from The Economic Collapse Blog:
|
| Posted: 13 Dec 2012 10:43 PM PST  Today King World News is pleased to share with its global readers a piece that was put together by Nick Laird from ShareLynx out of Australia. Laird put together six extraordinary charts to go along with his commentary below. We thank Laird for sharing this piece with our readers. This posting includes an audio/video/photo media file: Download Now |
| Gold Seeker Closing Report: Gold and Silver Fall Almost 1% and 3% Posted: 13 Dec 2012 10:00 PM PST Gold fell to as low as $1689.49 at about 9:20AM EST before it rebounded to $1702.26 in early afternoon trade, but it then fell back off again in the last four hours of trade and ended with a loss of 0.83%. Silver slumped to as low as $32.21 and ended with a loss of 2.6%. |
| Marc Faber: “Paul Krugman Should Go And Live In North Korea” Posted: 13 Dec 2012 09:33 PM PST from Zero Hedge: If there is one thing better than Marc Faber providing a free, must-watch (and listen) 50 minute lecture on virtually everything that has transpired in the end days of modern capitalism, starting with who caused it, adjustable rate mortgages, leverage, why did the Fed let Lehman fail, why was AIG bailed out, quantitative easing, Operation Twist, where the interest on the debt is going, which bubbles he is most concerned about, a discussion of gold and silver, and culminating with his views on a world reserve currency, is him saying the following: "The views of the Keynesians like Mr. Krugman is that the fiscal deficits are far too small. One of the problems of the crisis is that it was caused by government intervention with fiscal and monetary measures. Now they tells us we didn't intervene enough. If they really believe that they should go and live in North Korea where you have a communist system. There the government intervenes into every aspect of the economy. And look at the economic performance of North Korea." Priceless. |
| Posted: 13 Dec 2012 09:10 PM PST by Andy Hoffman, MilesFranklin.com:
Below is an interview with Ambrose Evans-Pritchard, Business Editor of the Daily Telegraph. His distinguished history in politics and economics give him a unique perspective; and in many instances, provides provocative views of the future. I disagree with half his big picture predictions – such as that the U.S. will maintain its global leadership role. However, I was intrigued by what he had to say about the gold standard; as he brings up a truism that even die-hard gold standard believers may not consider. And that is, that gold standards, too, can be grossly manipulated… |
| Posted: 13 Dec 2012 08:28 PM PST [Ed. Note: HSBC, the criminal bank, happens to be the custodian for the GLD etf. Supposedly the GLD gold bars are held in HSBC's vault in London. Caveat emptor.] from Current: Cenk Uygur calls out the justice system for letting HSBC get away with paying only $1.92 billion in fines after laundering money for Mexican cartels and al-Qaida. Meanwhile, an ordinary U.S. woman receives a life sentence for aiding one drug deal. "When you're powerless and you're poor, they have no choice. They have to give you a life sentence for the smallest of crimes," Cenk says. "But if you're part of the elite and you're a banker in this world — well, they also have no choice — they can't give you a sentence. You are free to go." |
| Marc Faber: "Paul Krugman Should Go And Live In North Korea" Posted: 13 Dec 2012 07:18 PM PST If there is one thing better than Marc Faber providing a free, must-watch (and listen) 50 minute lecture on virtually everything that has transpired in the end days of modern capitalism, starting with who caused it, adjustable rate mortgages, leverage, why did the Fed let Lehman fail, why was AIG bailed out, quantitative easing, Operation Twist, where the interest on the debt is going, which bubbles he is most concerned about, a discussion of gold and silver, and culminating with his views on a world reserve currency, is him saying the following: "The views of the Keynesians like Mr. Krugman is that the fiscal deficits are far too small. One of the problems of the crisis is that it was caused by government intervention with fiscal and monetary measures. Now they tells us we didn't intervene enough. If they really believe that they should go and live in North Korea where you have a communist system. There the government intervenes into every aspect of the economy. And look at the economic performance of North Korea." Priceless. 50 minutes of Faberian bliss: Courtesy of TheBubbleFilm |
| GOLD – a LOOK BACK, and a LOOK FORWARD. Posted: 13 Dec 2012 07:02 PM PST “History does not repeat itself, but it often rhymes”, as Mark Twain noted. Featured is the five year weekly gold chart. The green boxes highlight pullbacks from overbought conditions. The blue boxes show the testing of a breakout from below the 50 week moving average. The green arrows point to the expected upward direction upon the completion of this test. Featured is the same chart with the focus on the upside breakouts from beneath the 50WMA. The blue arrow points to the last breakout in early 2009. The green line highlights what happened to the gold price upon that breakout. The green arrow points to a similar setup. “In the absence of the gold standard there is no way to protect savings from confiscation through inflation. There is no safe store of value without gold. This is the shabby secret of the welfare statists versus gold. Deficit spending is simply a scheme for the hidden confiscation of wealth. Gold stands... |
| LGMR: Gold & Silver Fall Hard from 2-Week High as New Fed Easing Spooks Traders Posted: 13 Dec 2012 06:56 PM PST London Gold Market Report from Adrian Ash BullionVault Thursday 13 Dec, 07:30 EST GOLD and silver fell hard overnight and early Thursday in London, dropping as European stock markets also fell and the US Dollar rose despite yesterday's latest "easy money" policy from the Federal Reserve. Holding its key interest rate in the record low range of 0% to 0.25% for the 48th month running, the Fed's open market committee swapped its guidance for any rise in interest rates from mid-2015 to a target unemployment rate of 6.5% or below. The Fed also confirmed it will begin a new round of quantitative easing in January, spending $45 billion per month to buy US government debt with no limit on the program's total purchases. "Any QE should be positive for the yellow metal," said one wholesale gold dealer before Wednesday's announcement. Yet after jumping $10 an ounce to a 2-week high of $1723 on the news, the Gold Price then fell back, dropping through $1700 at the start of Asian trad... |
| Bear Market for Juniors Now at 22 Months, Reversal Near? Posted: 13 Dec 2012 06:53 PM PST HOUSTON – The ongoing bear market for the smaller, less liquid and more speculative issuers in the mining and exploration biz – like the ones represented by the Canadian Venture Exchange Index or CDNX below – has now reached 22-months in duration. That's a very long time for a bear market, folks. More... The esteemed MACD has been signaling a positive divergence for quite some time, suggesting this is a market looking for a trigger to reverse course. The current Tax Loss Shopping Season is, of course, a headwind, but that downward pressure will end very soon. The political uncertainty in the U.S. is another headwind. One way or another that is also likely to be resolved in a short time period. Remarkably, the CDNX is currently trading at a level first reached in 2002, a decade ago, when gold traded below $350 the ounce and silver was under $5. With gold now in the $1,700 arena and silver with a $32 handle, we view the current level of the Venture Index as a psychological anomaly. Note the gargantuan divergence which has opened up between gold (shown in green) and the level of the CDNX. That tells us that sentiment for the juniors is about as bad as we have ever seen it. Even worse in many respects than in 1998-2000 or in 2008 – early 2009. Point 1: A great deal of price risk has been removed from the better junior miners and explorers. The sub-sector is a bargain target rich environment. Point 2: Bear markets do not last forever. A 22-month bear is a very, very long period bear. Point 3: The cure for negative liquidity is negative liquidity. Prices become so low that insiders, deep discount specialists and Vultures with long term time horizons are willing to accumulate in size. They believe that markets are cyclical and it is only a question of time before the better juniors once again become more popular. Point Last: Tax loss selling and Fiscal Cliff worries are about to end very soon. Junior company prices are, in many cases, Ridiculous Cheap (a GGR technical term). Absent an unforeseen black swan event, the CDNX is primed for a major reversal of epic proportions in our view. Possibly in line with or even exceeding the 2009-2010 bull which followed the 2008 Panic. No one can know in advance when a great bear market will reverse course into the next bull. With at least two of the major headwinds facing the CDNX now about to end, however, there is a legitimate chance that a new bull market for The Little Guys is about to get underway early next year. We certainly hope so. We have been taking advantage of the Tax Loss Shopping bargains recently - in kind of a big way - and, we have a lot of mouths to feed here at the ranch in Texas. Stay tuned for a brief comment on a number of the Tax Loss Shopping Season super bargains we have taken advantage of in the past few weeks - already shared with GGR subscribers - to be posted here in the next while. Until then...
|
| Lee Quaintance and Paul Brodsky: For Gold Market Rigging, Look East Too Posted: 13 Dec 2012 06:53 PM PST ""Da boyz" can paint any chart picture they want...and the dumb-as-posts T.A. analysts gobble it all up." ... |
| Tax on U.S. gold mining could be budget windfall, congressmen say Posted: 13 Dec 2012 06:42 PM PST By Patrick Rucker http://www.reuters.com/article/2012/12/12/us-usa-gao-royalty-idUSBRE8BB1... WASHINGTON -- Revising a 19th-century U.S. law that governs the mining of gold and other precious metals could add billions of dollars to federal coffers at a time of tight budgets, according to some Democratic lawmakers and a government study released on Wednesday. Taxpayers receive no royalties on metals pulled from federal land, and officials drew a blank when they tried to find out how much gold, silver, copper, and other valuable metal is sold. "Federal agencies generally do not collect data from hardrock mine operators," said the report from the nonpartisan Government Accountability Office, which looked at the market in 2010 and 2011. But applying a metals levy of 12.5 percent -- the benchmark government share for other resources -- could deliver hundreds of millions of dollars a year to taxpayers, according to independent studies and U.S. Rep. Raul Grijalva, who sought the report and other data from the mining industry. ... Dispatch continues below ... 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 "As we face these fiscal challenges, these are the pennies that we should pinch," said Grijalva, the leading Democrat on the panel that oversees public lands. Grijalva, of Arizona, and Sen. Tom Udall of New Mexico, who jointly called for the GAO report, say taxpayers should also benefit from a gold price surge that has boosted the bottom line for miners. Applying Grijalva's royalty formula on the 1.1 million ounces of yellow metal pulled last year from Goldstrike mine in Nevada, the largest in North America, could have yielded $150 million to taxpayers, according to a Reuters tally of industry data. Barrick Gold Corp., the mine operator, said only a fraction of Goldstrike is on federal land, and the company's taxes have already quadrupled in the five years of climbing gold prices. Taxpayers are entitled to a royalty from metal sales nevertheless, lawmakers said. Under Grijalva's proposed formula, Freeport-McMoRan Copper & Gold Inc.'s reserves of copper and molybdenum, which is used to toughen steel, would return about $700 million to taxpayers over the life of the mines, according to a Reuters tabulation of company data. The 1872 mining law that drove prospectors into western states such as California still governs much of the industry. But this no-royalty law is a costly anachronism when mining giants can stake a claim on federal land for a few dollars an acre, Udall said. The coal, oil, and gas industries, by comparison, have no such exemption. "We are giving our gold and silver for free and don't even know how much we are giving," said Udall, whose father, Stewart, was secretary of the Interior during the 1960s and called mining law reform his great unfinished work. Lawmakers who have occasionally tried to reform the mining rules have never cleared all the hurdles to pass new laws, as the industry has strong political allies. Senate Majority Leader Harry Reid, a Democrat, counts on mining support in his home state of Nevada, and lawmakers say it will be difficult to persuade him to take a bite out of the industry. But on Wednesday the two top senators on the Energy and Natural Resources Committee said they were open to considering reform. "There's been agreement for a long time that the 1872 Mining Law should be updated to include a royalty" and reduce paperwork, said Sen. Lisa Murkowski, the panel's top Republican. Ron Wyden, the incoming Democratic chairman of the committee, also believes the matter is due for review. "This is one of a growing number of issues that Senator Wyden plans to look at in the next Congress," said spokesman Keith Chu. Whether or not mining reform can become law, some lawmakers are ready to target the hundreds of millions of dollars in tax breaks the mining industry claims each year, which they see as an easier political gambit. "There are a lot of write-offs, and this is an issue we can bring to the coming debate about tax reform," Grijalva said. Those allowances also benefit the oil and gas industry, the GAO report says, with the federal take on energy exploration running billions of dollars below target. The offshore oil fields that were supposed to deliver a 12.5 percent royalty to taxpayers brought about 8 percent in 2010 and 2011, according to the report. One explanation for the shortfall, the report says, is industry allowances for the cost of transporting fuel and incentives meant to encourage some exploration. "We need to always be looking back and seeing if there is a good reason to continue with exemptions," said Udall. "That's something we're not very good at in government -- ending the exemptions when they're no longer needed." State and local governments often catch a windfall from mining revenue, and Udall said Republican lawmakers from the West might be persuaded to increase the federal take. "Everyone agrees we need a balanced package to find new revenue," he said, "and this seems like the right time for reform." Join GATA here: Vancouver Resource 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/. |
| The Gold Price Broke it's $1,705 Support and Fell $21 Closing at $1,695.60 Posted: 13 Dec 2012 04:45 PM PST Gold Price Close Today : 1695.60 Change : -21.00 or -1.22% Silver Price Close Today : 32.280 Change : -1.427 or -4.23% Gold Silver Ratio Today : 52.528 Change : 1.601 or 3.14% Silver Gold Ratio Today : 0.01904 Change : -0.000598 or -3.05% Platinum Price Close Today : 1611.90 Change : -33.00 or -2.01% Palladium Price Close Today : 690.25 Change : -9.40 or -1.34% S&P 500 : 1,419.45 Change : 9.03 or 0.64% Dow In GOLD$ : $160.57 Change : $ 2.88 or 1.83% Dow in GOLD oz : 7.768 Change : 0.139 or 1.83% Dow in SILVER oz : 408.01 Change : 19.49 or 5.02% Dow Industrial : 13,170.72 Change : 74.73 or 0.57% US Dollar Index : 79.92 Change : 0.026 or 0.03% The GOLD PRICE broke $1,705 late yesterday supposedly on Bernanke's statements about the fiscal cliff. (He's against it.) By 9:30 a.m. it had fallen to $1,689.50. It rebounded to $1,701.90, then fell below $1,700 again and spent the rest of the day hanging out at $1,695.60. Yesterday the GOLD PRICE touched the downtrend line from the late November high, then reversed vigorously today, gravity-ward. Support stands at the last two lows, today about $1,687.50, about where today's $1,689.50 low struck. What's possible? Gold might hold that line. You'll know that tomorrow. If it doesn't, then the 150 and 200 DMAs stand beneath to catch it at $1,666 or $1,663.56. Beyond that the uptrend line form the June 2012 low stands about $1,650 today. A couple of other things I want to mention is the Dow in gold, that's one weird rascal, hugging that uptrend line so tightly since mid-November, and hitting the 200 DMA from below today, and a long term (since mid-2007) downtrend line. Either stocks are getting to rally hard against gold by breaking through that point, or they are about to fall back hard. Since the long term trend is down, odds favor fall back hard. Both platinum and palladium have been trending upward since end-October. Platinum took a $33 hit today, but it didn't harm the chart. Palladium 4 days ago hit 706, its September high, and fell back but remains in an uptrend. Today might have marked a breakdown. If you're one of those folks who frets over the uncertainty that governments and central banks inevitably inject into your life, I suggest you move where there isn't either one. Whoops -- sorry. They've crowded all the intelligent life off the planet. You'll have to move to Mars to escape them. Today, a distinctly attractive possibility. It appears that the SILVER PRICE and GOLD PRICE are on their way to lower lows before this correction ends. Be patient, be patient. The bull market will raise silver and gold to higher aand higher prices. Keep your eyes on the horizon and off the goofs in Washington. Pay 'em no mind. Eventually they'll get tired and go away. Something happened today, but who knows why. After Bernanke announced the Fed would add $1.02 trillion to the dollar supply last year, instead of tanking today the dollar actually gained 2.6 basis points. And the inflation-happy stock market turned sad instead. And just in case you are one of those Pollyannas who believe that central banks and governments have got it all figured out and we're "coming out of the woods," Gretel, the top 5 central banks (less Japan, but they're coming shortly) announced today simultaneously that the Fed would extend to 1 February 2014 its swap line to the other central banks, a swap line the Fed used to loan $585 billion (half a trillion, give a billion or so) to foreign central banks so they could keep their own banks afloat on the Global Sea of Liquidity. Think of it as Homeland Security buying up 30 million rounds of ammo. What do they know we don't know? US Dollar index yesterday made a low about 79.70, so it needs to hold on there to keep from falling further. Up above 80 offers a solid barrier. Euro barely rose today, up 0.05% to $1.3078. Can't muster the strength to push through that downtrend line, although it stands above all its moving averages. However, it's in an uptrend, so odds favor a breakout. The Yen fell off a cliff again today, down 0.49% to 119.61 cents/Y100. Yen must be nearing the point at which the rest of the world's Nice Government Men swing into action. Can't imagine them letting the yen drop below 117.64 cents (=Y85 to the dollar). Things just got gloomier and gloomier for stocks as the day wore on. Markets just adore uncertainty, and O'Bama and his dance partner Boehner are keeping the world as uncertain as they possibly can. Dow lost 0.56% (74.73) to 13,170.72 while the S&P500 gave back 9.03 (0.63%) to 1,419.45. This amounts to the Dow being turned back at 13,300 resistance (yesterday's high was 13,329.44). Probably plenty more upside here, but for now the market just can't deal with the schizophrenia pouring out of Washington. Gold today fell a meaty $21 (1.22%) through $1,705 to close Comex at $1,695.60. Silver lost a heart-stopping 4.23% (142.7 cents) and ended at 3228, smashing 3350c and 3300c support, and even cutting through support that had cradled it since early November. Fake-out break-outs occur when a market breaks out of a pattern one way, then immediately wheels on its heel and reverses. That's what silver did yesterday, breaking out of a little even- sided triangle toward the upside, then falling down through it to break out on the downside today. Along the way it made a new low for the move at 3228c. If markets behaved perfectly predictably, it wouldn't be fun. Only target left is the 200 and 300 day moving averages, nested now at 3090c and 3135c. Beneath that lies the uptrend line from the June 2012 low around 2900c. Silver may fall much further, or it may simply torture us by zigging and zagging back and forth until year end. 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.   |
| A Totally Different Ballgame Soon / Crime In A Flash Posted: 13 Dec 2012 04:25 PM PST From www.LeMetropoleCafe.com commentary: December 13 - Gold $1695.60 down $21 - Silver $32.28 down $1.43 A Totally Different Ballgame Soon / Crime In A Flash "The function of free speech under our system of government is to invite dispute. It may indeed best serve its high purpose when it invites a condition of unrest, creates dissatisfaction with conditions as they are, or even stirs people to anger." ... Justice William O. Douglas GO GATA! A.M. Kitco Metals Roundup: Gold Drops Below $1,700 Following another Mysterious Price Drop in Asian Trading Thursday December 13, 2012 8:21 AM(Kitco News) - Comex gold futures prices are trading solidly lower Thursday morning, on some fresh technically based selling and on mildly bearish outside market forces. Once again, the gold market suffered a rapid and inexplicable price drop in early Asian trading Thursday, on reported sell stops being triggered. Sell stops are pre-placed market orders to sell if a certain price is hit. That marks the third week in a row of such price declines that occur for seemingly no fundamental reason… -END- What to say today after last night's email missive rant? Nothing worse than sounding like an angry ole man, which I am at the moment. Then again, I am not at all. It's the Billy Martin thing, who was a former ballplayer and coach of the New York Yankees, and renowned for kicking the bases while arguing with umpires over what he perceived as a bad call. He would kick and kick, get it out of his system and go on from there … letting his emotions be yesterday. Same deal here. This "mysterious" price tanking is aggravating in and of itself, but also because, again, NO ONE outside of The GATA camp will call a spade a spade and talk about market manipulation. Three weeks in a row, Kitco speaks of sharp price declines in Asia with no fundamental information to explain the price drops. But, would any of their ace reporters, my friend Daniela Cambone included, call up CP or me for a GATA comment? Not on your life … even after we present them with the recently discovered IMF report which virtually says the gold market is manipulated. Instead Market Watch trots out another know nothing clown, as PRICE ACTION MAKES MARKET COMMENTARY … any commentary but the truth: Gold set for dramatic correction: hedge fund manager December 13, 2012, 10:21 AM Long-term and perhaps even short-term investors of gold could be forgiven for getting rattled on Thursday as the precious metal dropped below $1,700 an ounce .bgChannel, .bgRealtimeChannel, .bgRevision { display: none; } /quotes/zigman/4331913 GCG3 -1.00%, down over $26 in the early hours of U.S. trading. Get used to it, says Uri Landesman, president of Platinum Partners, a New York-based multi-strategy hedge fund. "Gold was overvalued and it's going to come down dramatically," he said. And he sees 2013 shaping up as a year where gold will trade in a range of $1,400 and $1,800, meaning current prices are on the high side. "The Fed is pretty much saying that we're going to backstop the stock market forever," said Landesman, referring to the Federal Reserve's prior-day declaration that it wants unemployment in the U.S. — currently at 7.7% — to drop to 6.5% before it raises interest rates again. And backstopping equity markets more or less indefinitely is not good for the precious metal, he said. "Gold tends to do best if there's a flight to quality. That's not the case right now because the Fed is being so accommodative and saying we'll be propping up gold until unemployment gets to 6.5%. That's a sharp signal that there's no reason to fly to gold, because gold is overvalued here." And as stocks are set to benefit from the new Fed stance, equities and gold are going to detach, he said. "So people who have a finite amount of money are going to go to one asset class or two or three, bonds and stocks and go out of safer havens like gold." He said his expectations are based as much on technicals as they are on analysis. "They both support the same thing. There's more downside than upside risk on gold. We've been in a 12 to 13-year supercycle. Gold was at $200 an ounce in the late 1990s. It's had a pretty nice run, if you punch up the chart on gold. What we're getting now is a standard correction, but it's going to be a big correction." Barbara Kollmeyer -END- If that is not happy Horse S, I don't know what it is. But Market Watch will publish what that goofball has to say, yet won't mention what GATA has explained to them for 14 years and been right about the direction of the price of gold for the last 12 years. Cannot stress this enough: BLACK IS WHITE AND WHITE IS BLACK in the gold/silver world. The more bullish the fundamentals, or the more bullish the news is, the more The Gold Cartel goes into attack mode. James Mc has brought this to our attention time and time again for some time now. What we are watching The Gold Cartel do to gold and silver at the moment is the best example of that over the last 14 years. As Kitco even mentions, they have done the same drill in Asia three weeks in a row. And the obvious hit job selling on the Comex has been documented in this column day after day, even hour after hour of late. There can only be one plausible explanation for the gold/silver price action of yesterday and today … after the about as bullish news as the gold world could get which emanated from the Fed yesterday. That explanation is the US Government knows they have NO SOLUTIONS to the US fiscal predicament, no solutions which will be acceptable to the kept in the dark American public and to any politician who wants to be re-elected. The situation is bleak and the Obama Administration/Fed fully intends to go to all out money printing mode, so their first step is to SHOOT THE MESSENGER … which they are attempting to do at the moment. That attempt will FAIL. And that is because the precious metals physical markets will overwhelm the Gold Cartel's paper game manipulation raids as demand will overwhelm their available supply. It is that simple. The timing of it all is far from simple. Look out how they have been able to stem the tide over the last year. But still, the price of gold is up over $130 for the year, and that is after they have thrown the kitchen sink at the market. The closing price of silver last year was $27.91. What market has performed better than silver this year, despite JPM and their friends? My take on what is going on here is that something awful is brewing behind the scenes and the powers in Washington want gold off the favored radar scene when it hits. That is what their selling intensity EVERY noticeable day is telling me. We shall see. But, if that is the case, it should not be long until we find out. As far as the markets went today, the price of gold was trashed all the way down to $1688 on the Comex. Silver fared much worse, dropping down to $32.19 and breaking support which held for days. Silver broke OUT yesterday on the Comex. We always talk about no follow-through allowed in the precious metals, but this takedown is a bit extreme, even for them. The breakout meant NOTHING, so does this hit job … NOTHING in terms of the big picture and what is coming in the near future. It is SO important to keep in mind that The Gold Cartel does what they do to affect the thinking of the investing public and to affect their psychology about the precious metals vis-à-vis the US stock market, dollar, and interest rates. That is what this sick game they are playing is all about. No matter how well gold performs year after year, their aim is to put it in the dog house. Love this extremely well written email from a Café member last night after my missive. VERY well written, but totally off the mark in terms of who is going to prevail and why. Take it away Jack: Re: MIDAS Bulletin: SHOUT OUT: The Cockroaches Are In Trouble ... AND An Opportunity Of A Lifetime Just mind-boggling. Forget the 1 Tr $$$ cranked out this coming year, alone; instead, focus on one odd feature of it that might not be PERFECT for gold. of course, stocks doin' just fine. Even if all this conspiracy stuff is true (and I have owned gold through 6 exhilarating and now frustrating years), we may need to face the facts that those in control cannot be dealt with and...THEY win. Why keep fighting it? Why not go with what they are going to let win: stocks, stocks and stocks. They want us in paper and they are going to get us in paper just like FDR did. If we try to hang onto gold after the confiscation order comes down (which I bet will happen as soon as they relay to their bosses that they can't keep the prices down anymore and the fiat is getting ready to get revealed as a sham), we'll never be able to spend it or even show it to anyone without worrying about whether they are feds/snitches. Those that kept gold in 1934 had to hold on for FOURTY YEARS without being able to call on the gold (who knows how long without Jim Blanchard). Not sure I can do that and I don't have kids. After today and tonight's action, following two QEs in five months, I'm spent. There's no inflation; the stuff is just too manipulated; stocks go up no matter what (except my gold mutual fund - down, down, down); if the mamrket inproves, money leaves gold for stocks; if market worsens, money leaves gold for good old dollars. This has become a no-win; and, even if we "win", it'll be a nat'l/global meltdown where the first thing the central authority will do is ban gold. So, even if we win, we will lose. I see no option, realistically, outside this country. it's all just as manipulated and collectivist as we are becoming, if not worse. I'm thinking of making contact with Blanchard and Sons and CNI and unloading it all and just putting it all into Fidelity high yield and emerging market and asian bond funds and cash and just forget it. Enough is enough. I'm like the farmers in Shane tired of dealing with Ryker and his gunslinger brought in special from Cheyenne. I don't see SHane on the horizon; I see bernanke, JPM, Hillary, Obama, etc. *** Hi Jack, Bill I found Jacks observations very plausible. FWIW and food for thought. Love ya Norm, but THEY WIN? The Gold Cartel is getting their ass handed to them which is why they are going berserk at the moment. They are LOSING CONTROL and they don't know how to handle it ... which is just why they are doing what they are right now. Win? Them? When I first started this commentary, gold was under $300 and silver was $4 and change, getting into the $3 plus zone at one point. Look at the closing prices today. Win? What has the DOW done the past decade compared to what the prices of gold and silver have done? YES, they have won to a fairly big degree with their manipulation of the gold/silver share prices because they have had no physical market to contend with. Us gold/silver share investors are sucking wind at the moment, but that will change in epic fashion. First, when The Gold Cartel and hedge fund allies decide it is time to cover. That will be phase one of liftoff. Phase two will be when the general public comes our way. It will be a sight to behold. Take care Norm and have a blast on your trip. The AM Fix was $1694.75. The PM Fix dropped to $1692.75. The Gold Cartel raid made a significant impact on physical market buyers. The gold open interest rose 5175 contracts to 438,761. The silver open interest went up 1985 contracts to 144,066. The Gold Cartel, with honcho JPM leading the way, are not happy campers and are taking their venom out on those who are in the hunt to take them on. They won today. But, it will be a totally different ballgame soon. James Mc… Crime in a flash Bill, There has never been a flash crash in the history of lumber futures. It would actually be easy to do, with possibly as little as 200 cars, yet it never happens. Why? Because nobody is dumb enough to trade that way. Since gold is in a 12 year bull market if anything you should be seeing flash melt-ups, not crashes. And of course there hasn't been a single thing mentioned in MSM about the likely cause, which is another criminal attack. In fact the quote below from a Reuters article is arguably the dumbest thing ever written about gold. In particular the underlined sentences by the genius at Soc Gen takes the cake. "The near term risk is a stronger dollar," said Jeremy Friesen, commodity strategist at Societe Generale in Hong Kong. "The 'fiscal cliff' is going right to the end, and that could support the dollar and take some shine off gold." The dollar, seen as an ultimate safe haven, is likely to attract investors worried about the uncertainty in the U.S. fiscal situation. A stronger greenback pressures dollar-priced commodities by making them more expensive for buyers holding other currencies." Huh? When manipulation is the ONLY possibility the boundaries for deceit and lies are endless. The rats are cornered, and are lashing out with their gnarled teeth. Surely this is the late stages of a manipulation that has already had 10 lives. What we have just witnessed to that The Gold Cartel's drive by raid really is a crime in a flash … a crime that is not recognized outside of the GATA camp. As per my latest rants: no free press in America, and no free markets. The mainstream financial market press are just a bunch of ZOMBIES when it comes to the market manipulation subject … not even allowing a he said, she said debate on the issue. That is not allowed by the mental midgets who comment on the precious metals markets. America is going down the drain. A number of us in the GATA camp think we know why and nobody cares. It is all about spin, staying in power, and making a buck at the peoples' expense. That is the way it is for now Having worked on my Bulletin last night and getting up early to watch the carnage in the precious metals markets, I took a rare mid-week steak lunch at Chili's, my local hangout out a block away from where I live to say hello to my friend, Martha, their forever bartender and a great gal. Naturally, I had her put on CNBC on the wide screen to watch the market action. The gold and silver prices flashing on the screen were a downer. But that downer was put in perspective very quickly. One of Martha's regulars is the attorney for the Dallas Cowboy football player who killed his best friend last Friday night when he lost control of his car while drunk at 2 AM in the morning. It was reported in the Dallas Morning News this morning that the driver of the car, Joshua Brent (nose guard), had a blood alcohol level at the time of the accident which registered more than twice the legal limit. This attorney arrived at Chili's as I was nearly out the door. I saw him surrounded by the Dallas press outside the restaurant, besieged by reporters. Here he is with his client: http://www.dallasnews.com/sports/dallas-cowboys/headlines/20121213-josh-... The point is that life is relative. What the Gold Cartel did today is egregious stuff at its highest level. But, in another month the prices of gold and silver will be much higher and today will be forgotten. This poor soul, Joshua Brent, will have to live with he did to his best friend for the rest of his life. No comebacks allowed on that matter. Gold and silver are incredible investments at these giveaway Gold Cartel prices. The gold/silver shares are more than incredible down at the levels which so many are trading at. It may sound like a broken record, but it is SO true. It will be a totally different ballgame in the near future. This IS an investment opportunity of a lifetime! GATA BE IN IT TO WIN IT! MIDAS |
| Posted: 13 Dec 2012 03:21 PM PST After the success of the 'scariest charts for equity bulls', the following 12 charts are the most important, in CitiFX's view, to establish a 'starting point' for views on markets as we head into 2013. From employment trends echoing the 1970s, one-last-low in Treasury yields and '90s analogs, to EURUSD and its mid-'80s mirror, and the ongoing trend higher in gold; there is something here to scare equity and bond bulls and bears alike. Via CitiFX: What do we believe for 2013?
The dynamic in this cycle is similar to 1973-1978 albeit at higher nominal levels. In 1978 this was a turning point which then saw these numbers head significantly higher again. However that, as well as a deterioration in economic activity and housing, was partially induced by a tightening Fed which given the present debt/housing/employment dynamic is highly unlikely even if we see some inflation in the system. However we think there is a real danger that higher yields (Bond markets) and a tighter fiscal dynamic could induce this move. Bottom line we think the best may be behind us for now on this chart and expect renewed deterioration in 2013 This chart has been in our view, the best interest rate chart in the World for the last quarter century. Our bias is that we have limited downside left here before we "pop" Where initial claims go... the yield curve will follow. We did not quite reach this base in late 2008 when it stood at 1.89%. It now stands at 1.05%. As yet we have not regained any levels of importance on the topside. While we do not for a moment suspect that we would stay down there for long, we do think a danger remains for one last move lower as seen in previous trends. IF so, that low could be subject thereafter to a sharp bounce as seen in prior instances. There are currently many scenarios at play which could be the catalyst to such a move. Candidates? 1. Fiscal Cliff and/or debt ceiling negotiations; 2. Europe's sovereign debt crisis; 3. Middle East turmoil; 4. China slowdown A little lower then a lot higher - for Treasury yields. EURUSD set to weaken USD strength is on its way It may as yet be a little early for this move but if we get the expected bounce in bond yields expect USDJPY to power higher The trend is clearly higher. The present dynamic in Crude continues to remind us of the 1970's when we got 2 supply shock moves. The first came in 1973-1974 at the same time as we had a collapse in the Equity market (1973-1974); a collapse in housing activity (1973-1975) and a sharp fall in economic activity (1973-1974). During the 1973-1974 period Crude pretty much tripled in price (low to high) over 18 months. Then about 5 years after the 1973-1974 surge it "did it again" and once again virtually tripled in price in 1978-1979 over 18 months (backdrop here was the Iranian revolution and the Iran-Iraq war). In 2007-2008 Crude virtually tripled in price over 18 months and we saw an equity, housing and economic dynamic very reminiscent of 1973-1975. Now as we head towards 2013 could we be setting up for another tripling in price over 18 months to 2 years? We hope not as that would put Crude close to $200. Stay Far Away From Equities... Every bounce off this trend line on the VIX since 2007 has been followed by a sharp move lower in the S&P (average 23% over 4 ½ months)
Charts: CitiFX |
| Gold Daily and Silver Weekly Charts Posted: 13 Dec 2012 02:25 PM PST  This posting includes an audio/video/photo media file: Download Now |
| Confiscation of Gold - Then What? Posted: 13 Dec 2012 02:00 PM PST Several analysts and respected members of the gold community have stated that the confiscation of gold is unlikely because the conditions that precipitated it in 1933 don't exist anymore. We agree wholeheartedly with that view. But we feel that the confiscation of gold is extremely likely for very different reasons. |
| Technical Trades Of the Week - SPX, Dollar, Nat Gas Posted: 13 Dec 2012 12:53 PM PST Yesterday's price action was very bearish yet again and we are patiently waiting for a counter trend pullback to happen. While three are some good looking plays out there I really do not want to get long until the market clears ... Read More...  |
| Posted: 13 Dec 2012 12:40 PM PST Apparently it's not enough to merely hammer the metals with MOPE raids, the bullion banks are also trotting out the propaganda shills in order to properly manage the public's perception of gold and silver in the wake of QE4. Our … Continue reading |
| Just coincidence? Queen is trotted through Bank of England's gold vault Posted: 13 Dec 2012 12:38 PM PST Maybe it's just a coincidence but maybe instead it's a propaganda campaign launched by the British government and the Bank of England to assuage growing international concerns about the oversubscription, lending, and swapping of Western central bank reserves. |
| Just coincidence? Queen is trotted through Bank of England's gold vault Posted: 13 Dec 2012 12:22 PM PST 2:30p ET Thursday, December 13, 2012 Dear Friend of GATA and Gold: Maybe it's just a coincidence but maybe instead it's a propaganda campaign launched by the British government and the Bank of England to assuage growing international concern about the oversubscription, lending, and swapping of Western central bank reserves. First, a few days ago, the Bank of England invited videojournalist Brady Haran and University of Nottingham chemistry Professor Martyn Poliakoff to tour its gold vault for a fascinating lecture in which the professor discussed gold's remarkable qualities. (Of course gold's most remarkable quality, politely overlooked by the professor, may be its capacity to replicate itself to infinity in the hands of a central bank -- just like ordinary money.) The Guardian's report of the tour, along with a link to the video made about it, is here: http://www.guardian.co.uk/science/grrlscientist/2012/dec/10/1 And then today the Bank of England welcomed Queen Elizabeth II herself for an even grander tour of its gold vault, which attracted all the major British news organizations and instantly became a sensation throughout the United Kingdom. ... Dispatch continues below ... ADVERTISEMENT GoldMoney adds Toronto vaulting option In addition to its precious metals storage facilities in Hong Kong, Switzerland, and the United Kingdom, GoldMoney customers now can store their gold and silver in a high-security vault operated by Brink's in Toronto, Ontario, Canada. GoldMoney also has recently partnered with Rhenus Freight Logistics to offer another gold storage option in Switzerland. The Rhenus vault is in the secured zone of Zurich Airport and offers customers superb security as well as the ability to inspect their gold. Storage at the new vaults in Canada and Switzerland is available at GoldMoney's lowest fees. Customers can select their storage location when placing their buy order. GoldMoney customers can take delivery of any number of gold, silver, platinum, and palladium bars from any GoldMoney vault, as well as personally collect their bars stored in the Hong Kong, Switzerland, and U.K. vaults. It's easy to open an account, add funds, and liquidate your investment. For more information, visit: http://www.goldmoney.com/?gmrefcode=gata The Telegraph's story is here: http://www.telegraph.co.uk/news/newsvideo/royalfamilyvideo/9742780/Queen... The Evening Standard's is here: http://www.standard.co.uk/news/uk/dont-do-it-again-prince-philips-advice... But perhaps most interesting is the Daily Mail's account, since it is accompanied by the most photographs and is headlined with what may have been meant as a bit of a joke but what actually is the crucial question of the hour, never officially asked: "How Much of This Is One's Own Gold?": http://www.dailymail.co.uk/news/article-2247578/How-ones-gold-Queen-insp... How much indeed? For as recently as last year the Bank of England insisted on secrecy for its gold market activities, including leasing, which the bank said it discontinued in 2007; swapping, on which the bank did not comment; and transactions involving other central banks whose gold is vaulted or said or thought to be vaulted at the Bank of England: http://www.gata.org/node/10778 Of course one can't expect the queen to be familiar with such obscure detail. She has spent her life not studying economics but, far more tediously, gladhanding for the British government, and when she was trotted through the gold vault today it was her job to accept the most superficial and patronizing answers from bank officials about how the disaster in the world financial system could have been allowed to happen. But they did let her see the gold -- somebody's gold anyway. Now if only the queen could get an invitation to tour Fort Knox. Could those Australian radio pranksters be persuaded to do just one more royal impersonation in a phone call to the Treasury Department? Or would that risk Secretary Geithner's suicide? CHRIS POWELL, Secretary/Treasurer Join GATA here: Vancouver Resource 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: |
| Save the Middle Class… and Everyone Else Posted: 13 Dec 2012 12:11 PM PST  The President has recently said, "A typical middle-class family of four would see its income taxes go up by $2,200. That's $2,200 out of people's pockets. That means less money for buying groceries, less money for filling prescriptions, less money for buying diapers." Certainly we would all agree with the President that a $2,200 bite from a middle class income will hurt the middle class, a substantial swath of the American people. Thus he wants to take a bigger bite from the top two percent of income earners towards balancing the budget. That will, according to his plan, add up to seven percent of the deficit. Unfortunately it hardly puts a dent in his trillion-dollar problem, a trillion-dollar problem that will confront him every year of his second term. Moreover, it will almost certainly impede growth and job creation. What is to be done? Sacrifice the middle class or sacrifice the upper two percent? Read more....  This posting includes an audio/video/photo media file: Download Now |
| Profit, Protection, Despite Cartel Intervention – December, 2012 Update Posted: 13 Dec 2012 12:00 PM PST In a remarkable Coup, the Gold Anti-Trust Action Committee (gata.org) has uncovered even more evidence that Major Central Banks and their Allied Banks are Systematically Suppressing the Prices of Gold and Silver. This Ongoing Price Suppression legitimizes and bolsters the Ostensible Value of their Treasury Securities and Fiat Currencies as stores and measure of value vis-à-vis Gold and Silver. |
| Standstill: The Charts That Prove The Global Economy Is In Serious Trouble Posted: 13 Dec 2012 11:54 AM PST  But despite their best efforts to fabricate positive employment numbers, GDP growth, currency stability and stock market health, the stark reality is that the global economy is at a standstill, and has been since before the crash of 2008. Economic growth is measured by how much we produce and consume, and before the bursting of the bubble there was an unprecedented level of consumption in America and throughout the rest of the world. But when credit markets and lending froze in response to a loss of confidence in the financial system following the collapse of investment giants Bear Stearns and Merrill Lynch, the economy as we had come to know it fell apart. Consumption fell off a cliff and left America in its deepest recessionary environment since the 1930′s. For those paying attention to the Baltic Dry Index, a global measure of the costs to transport raw materials, this collapse was reflected several months before panic gripped investors and led to stock market crashes around the world. Introduced in 1985, the Baltic Dry Index first and foremost is a measure of the global shipping rates of dry bulk goods, mostly consisting of vital raw materials used in the creation of other products. However, it is also a measure of demand for said materials in comparison to previous months and years. Read more....  This posting includes an audio/video/photo media file: Download Now |
| Confiscation of Gold - Then What? - Part 1/4 Posted: 13 Dec 2012 11:37 AM PST Several analysts and respected members of the gold community have stated that the confiscation of gold is unlikely because the conditions that precipitated it in 1933 don't exist anymore. We agree wholeheartedly with that view. Read More...  |
| Gold - A Look Back, and a Look Forward Posted: 13 Dec 2012 11:26 AM PST Featured is the five year weekly gold chart. The green boxes highlight pullbacks from overbought conditions. The blue boxes show the testing of a breakout from below the 50 week moving average. The green arrows point to the expected ... Read More...  |
| Top central banks extend dollar-lending program Posted: 13 Dec 2012 11:25 AM PST Their gold-lending program is the secret side of their market intervention. * * * By David McHugh and Martin Crutsinger http://www.miamiherald.com/2012/12/13/3140509/top-central-banks-extend-d... FRANKFURT, Germany -- Major central banks acted Thursday to try to shore up confidence in the global financial system by extending a program that makes it easier for banks to borrow U.S. dollars. Thursday's move renews for a year a program that was expanded in November 2011 in response to Europe's debt crisis. It had been set to expire in February. The program lets central banks swap their currencies at the U.S. Federal Reserve in exchange for dollars. Commercial banks can then borrow dollars, the dominant currency of trade, at low rates. Central banks pay the Fed interest on the dollars they lend to commercial banks. The move is intended to help stabilize a global financial system straining from Europe's financial crisis and slowing growth worldwide. The alliance of 17 European countries that use the euro is in recession, with unemployment at a record high 11.7 percent. ... Dispatch continues below ... 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/. The central banks issued news releases simultaneously Thursday in a coordinated signal to investors and lenders that they will continue to try to ease global financial strains. Still, economists noted that the dollar swaps aren't being heavily used, a sign that most banks have enough dollars to make dollar-denominated loans. As of last week the Fed has about $12.2 billion in dollar swaps outstanding, down from $109 billion in February. The record high of $583.1 billion was set in December 2008, at the height of the financial crisis. "This announcement is largely symbolic," said Sung Won Sohn, an economics professor at the Martin Smith School of Business at California State University. "The Fed and the other central banks are telling the markets that they are still around and willing to help out if they are needed." Taking part in Thursday's announcement, besides the Federal Reserve, were the European Central Bank, the Bank of England, the Swiss National Bank, and the Bank of Canada. The Bank of Japan is to consider the measure at its next meeting. The ECB also said it would continue its operations to lend dollars to banks for one week and three months. The ECB has said it could buy bonds issued by heavily indebted countries. That step could drive down borrowing costs for financially troubled governments and indirectly for companies. The coordinated action follows other recent efforts by the ECB, Fed and Bank of England to strengthen their financial systems and economies. On Thursday, European Union nations agreed on the foundation of a fully fledged banking union. And Greece's euro partners approved billions in bailout loans that will prevent the nation from going bankrupt. On Wednesday, the Fed said it planned to keep U.S. interest rates ultra-low even after unemployment falls close to a normal level, which it thinks could take three more years. And it said it will keep spending $85 billion a month on bond purchases to drive down long-term borrowing costs and stimulate economic growth. Join GATA here: Vancouver Resource 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 |
| Largest Capital In The World Now Entering Gold & Silver Space! Posted: 13 Dec 2012 11:00 AM PST  Today Rick Rule told King World News that the most massive and most intelligent pools of capital on the planet are now looking to crowd into the gold and silver space. This is huge news for a sector that has been in a state of consolidation for over a year, and strongly supports the thesis that 2013 will be a banner year for gold and silver.Rule had this to say about this extraordinary development: "The things that support the thesis, particularly with regards to the gold equities, has been the approaches Sprott (Asset Management) has gotten from the very largest sovereign wealth funds in the world, and the very largest suppliers of private capital in the world." This posting includes an audio/video/photo media file: Download Now |
| Stock Market SPX, U.S. Dollar, Natural Trading Markets Posted: 13 Dec 2012 10:52 AM PST Yesterday’s price action was very bearish yet again and we are patiently waiting for a counter trend pullback to happen. While three are some good looking plays out there I really do not want to get long until the market clears the air with a bout or three of strong selling. Remember 3:4 stocks follow the market and the odds of picking a commodity or ETF that bucks the trend is unlikely. If you are interested in powerful stocks & ETFs the buck the trend check out my FREE Trading Ideas live Go Here: https://stockcharts.com/public/1992897 |
| Posted: 13 Dec 2012 10:49 AM PST I went to Yahoo to check the financial headlines. The place where all logic & brainpower goes to die. Found out some astounding information! Who knew that "the U.S. recovery is among the soundest in the developed world since the Great Recession?!?" I bet you didn't. I also found out that Ben Bernacke is the saviour, & we have under 2% inflation. I guess all those little charts on TBP are just BS. I even enjoy the fact that they found an "author" & I use the term loosely, who's name is alllllllmost Rick Santelli. There is just so much good bullshit in here. Have another kool-aid & enjoy! P.S. I also truly don't understand something??? "Fed Chairman Ben Bernanke and his fellow policy makers met investors' expectations by announcing a total of $85 billion in bond purchases per month." I thought they were in the business of SELLING bonds sorta kindof??? Someone help a feller out. Why the Fed Deserves Credit for the Economic Recovery On 12-12-12, a day that already had numerologists buzzing, the Federal Reserve gave the markets a couple of new numbers to obsess over. Fed Chairman Ben Bernanke and his fellow policy makers met investors' expectations by announcing a total of $85 billion in bond purchases per month. But they also added an unforeseen wrinkle by pledging to maintain the Fed's easy-money, zero-rate stance at least until the unemployment rate falls to 6.5% and expected inflation stays at or below 2.5%. The setting of explicit targets has been discussed for some time and advocated by some within the Fed as a way to firmly anchor financial-market expectations and clearly convey central bank intentions. Yet, these targets are mere guidelines, just the minimal prerequisites for the start of an eventual removal of the aggressive monetary stimulus the Fed has maintained. They are really just another way to convince investors and business decision makers that short-term rates will stay near zero and the Fed will stand ready to keep sluicing cash into the financial system until the labor market is unequivocally in better shape. Indeed, the Fed's statement explicitly said it "views these thresholds as consistent with its earlier date-based guidance," which means the draining of liquidity from the system will not likely happen until mid-2015. In other words, until the reported unemployment rate falls by more than 1.2 percentage points from here, and the Fed's one- to two-year inflation forecast gets over 2.5%, don't even start to worry about rates rising from zero or the Fed shrinking its balance sheet. The Fed's latest policy moves are not without its critics. The plan to buy $40 billion in mortgage securities and $45 billion in longer-term Treasuries per month adds another $1 trillion a year to the Fed's balance sheet, which already totals $3 trillion. For years, some analysts have been raising alarms that such voluminous money creation would surely uncork damaging inflation, which so far has not occurred. Others gripe that the Fed is essentially enabling the U.S. government's heavy deficits by absorbing so much Treasury debt. A related complaint, offered here on Yahoo! by John Tamny of RealClear Markets, is that the production of all these reserves is hampering the economy by sapping the strength and reliability of the U.S. dollar. Yet in the absence of immediate or even early indications of an upwelling of inflation, the Fed is clearly determined to focus maximum effort on the other leg of its "dual mandate," i.e. fostering full employment. So far, at least, the dollar has not collapsed and prices of everyday goods haven't soared. Even gold, which has doubled in price since the financial crisis, has not managed to hang near its 2011 highs even with such fears of dollar debasement being aired loudly. Economists at Barclays call the latest moves a continuation of the Fed's "bold shift" which "further strengthen the Fed's commitment to generate a stronger recovery and substantially improve conditions in the labor market." Another objective is to join other central banks in working to "successfully contain large negative tail risks," or major market panic attacks. It's pretty easy to snipe that the Fed's zero-rate policy and trillions in bond-buying pledges have done little to speed up the pace of this recovery and lower the stubbornly high unemployment rate. Yet the U.S. recovery is among the soundest in the developed world since the Great Recession. Michael Darda, chief strategist at MKM Partners, points out that the Fed's policies "have been exactly enough to keep nominal GDP growing at a steady 4% rate" even with governments acting as a drag on growth in the past year or so. That 4% nominal rate, which shakes out to a bit more than 2% real growth and just under 2% inflation, might not seem impressive by historical standards. But if it is sustained well into 2013, it would qualify as a victory for Fed policy makers and something of a surprise to financial markets still quick to spy a slowdown or worse around every corner. |
| Posted: 13 Dec 2012 10:48 AM PST Gold Retreats As New Fed Accommodations Match Expectations
The addition of $45 bin in outright Treasury purchases to replace Twist was widely expected. The shift in forward guidance from date-based to unemployment and inflation based was a surprise, but the guidance itself is pretty much the same. Fed central tendencies suggest the jobless rate doesn't have potential below 6.5% until 2015. This is exactly what the calendar based guidance has been saying for some time. The FOMC says as much in the statement itself: "The Committee views these thresholds as consistent with its earlier date-based guidance." So the guidance is unchanged and the policy itself was exactly what the market was expecting. The market is still trying to digest the implications of the shift in guidance methodology, so it's not terribly surprising to see some position squaring as a result of that uncertainty. Additionally, with year-end fast approaching there is probably some desire to lock-in profits, given the still looming uncertainty about the fiscal cliff and the debt ceiling. While gold has been broadly consolidative this year, the longer term fundamentals remain supportive to underlying bull trend. The Fed's balance sheet has consolidated this year as well, but is now poised for further expansion toward $4 trillion. That bodes well for gold in the year ahead. |
| BERNANKE SHOT HIS LOAD & THE WALL STREET WHORES YAWNED Posted: 13 Dec 2012 10:46 AM PST Jesse and Zero Hedge capture the jist of Bernanke's limp dick attempt to revive the spirits of the Wall Street whores. He is now buying $85 billion of debt per month. That just so happens to equal $1 trillion per year, or the annual U.S. budget deficit, giver or take a few hundred billion. I found it hysterical that Marketwatch had bold headlines yesterday that Bernanke is finally fighting for the unemployed. Give me a fucking break. Can some Wall Street whore explain to me how Bennie buying up $45 billion of toxic mortgage debt from his Wall Street masters is going to help Joe Blow get his job back at the Twinkie factory? Bennie has been applying the same medicine for four years in ever larger doses and the result is that 10 million Americans have left the work force, there are 4 million less people employed, food stamp participants have gone up by 20 million, real wages have declined for 22 straight months, gasoline prices in 2012 were the highest in history, $400 billion of interest on savings has been stolen from senior citizens and handed to Wall Street, and the economy has never left recession. Ben Bernanke's sole purpose is to do what the owners tell him to do. He doesn't give a fuck about you if you are unemployed or underemployed. He gives a fuck about the people at cocktail parties in Washington DC and Manhattan. I'm still waiting for the press conference when he pulls a Bud Dwyer. Gold Daily And Silver Weekly Charts – FOMC and 12-12-12The Fed did the completely expected today, pledging to continue to expand its balance sheet in buying sovereign and mortgage debt at the pace of $85 billion per month until unemployment drops below 6.5% and/or inflation rises above 2.5%. Considering that both measures are tacitly rigged and phony, that pretty much means that Benny will print until the exhaustion and collapse of the dollar, or until it suits their interests not to do it. The only surprise in Benjy's press conference was that he grew up in rural South Carolina and goes back for visits. I didn't see that one coming. The money shot today was when the male spokesmodel on Bloomberg said 'and gold is up only five dollars after that Fed announcement.' All that capping just to try and make the impression that QE until hell freezes over isn't inflationary? I hope it was worth it. Stocks pulled back from the necklines on their inverse head and shoulders, and gold and silver rallied back, but the pop higher was pale in context because of the pounding the metals had taken for the past week. There were no big drops, but lots of cheap shots and quick hits. So what next. It's all fiscal cliff now, all the time, until the end of the year. Or the real Mayan calendar end date, which is not 12-12-12 like so many think. It is 21 December 2012, which is also the last date by which legislation can be submitted to the US Congress for consideration this year. So if you are planning on the end the world, its time to RSVP. I really cannot say what these fiscal cliff jokers are going to do, but I do know that Obama has the whip hand, even if it was ten years in the making, and after the previous twenty times that the Republicans used and abused his good will gestures in negotiating against himself, he is likely to let it ride. The cliff is phony anyway, although I am sure it will be used as a looting opportunity on Wall Street. Once the cliff passes, 70% of the deficit evaporates. Horrors! And they have plenty of time to tweak it in the new Congress so the effects are very unlikely to be lasting. I am almost positive the US is heading into a recession next year anyway, the policy decisions are so cockeyed against the median wage earner and consumer. They might try and hide it by throwing money at it, and there lies stagflation, even if they hide the inflationary part. El Cliffo Fiscal gives the Republicans political cover, because now the tax cuts expire and they cannot be blamed for raising taxes. So Grover and his bully boys cannot be madder than usual that they are not warlords in Somalia rather than citizens in a Republic. And then the Republicans can cut a deal and lower taxes somewhat and look like heroes. I don't have a lot of confidence (lot = greater than zero) in Obama and the Dems making a decent deal for the American people. The Republicans are whores for the monied interests and are as bad or worse. I think it was Gore Vidal who said that the Dems and GOP are just two different wings of the Big Money Party, and that sounds about right. So let's see what happens. JESSE Spot The Odd One Out Submitted by Tyler Durden on 12/12/2012 16:06 -0500 A funny thing happened today. For the first time, the equity and bond market closed red (and VIX green) on a Federal Reserve QE-announcement day. Gold outperformed stocks and Treasuries underperformed everything… The S&P 500 futures contract has never closed red on the day of a QE announcement before…
VIX closed higher for the first time ever on a QE announcement day…
10Y Treasury Yields rose for the first ime ever on a QE announcement day… |
Dear Friend of GATA and Gold: Maybe it's just a coincidence but maybe instead it's a propaganda campaign launched by the British government and the Bank of England to assuage growing international concern about the oversubscription, lending, and swapping of Western central bank reserves.
Historically, small businesses have been the primary engine of new job creation in the United States. If the economy was getting healthy, we would expect to see the number of jobs at new businesses rise. Instead, we are witnessing just the opposite. We are told that the economy is supposed to be "recovering", but the number of "startup jobs" at new businesses has fallen for five years in a row. According to an analysis of U.S. Department of Labor data performed 
In my unending quest for TRUTH, I occasionally read opposing viewpoints. Frankly, I spend less than 1% of my time on such, as I already know the END GAME. However, I often obtain valuable insight in the process; none more so than the subject of today's RANT.
| You are subscribed to email updates from Save Your ASSets First To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google Inc., 20 West Kinzie, Chicago IL USA 60610 | |
No comments:
Post a Comment