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Sunday, December 9, 2012

Gold World News Flash

Gold World News Flash

While We Increase QE to Infinity, China Wisely Doubles Down on Gold Accumulation

Posted: 08 Dec 2012 11:00 PM PST

by AGXIIK, Silver Doctors:

We double down on the most destructive form of financial ineptitude with wild fire printing of FIAT currency, hollowing out our economy while exporting inflation to nearly every country. China wisely doubles down and doubles down again Real Money. After the Western powers, aided by gold stealing allies like Japan, made off with well over 100,000 tons of gold China accumulated over the last 3,000 years, they are not going to let this happen again.

Their military, ships, nukes and eye to making the South China sea their own pond and defensible space, is not being developed to create forward bases. It's to protect themselves and make their country inpenetrable from their former and present foes. This is a country with a strong memory that reaches over 5,000 years. And they do not appear to suffer from selective memory and collective amnesia, something that we engage in at a wholesale rate. Those who forget their history forget their legacies and lose their country.

China gold stocks could easily top 10,000 tons. While worth 'only' $700 billion or so, this accumulation will soon be sufficient to lay down the Yuan marker as an alternative currency.

Read More @ Silver Doctors

Here Are Links to 5 of the ?Best-of-the-Best? Articles on Gold You Might Have Missed Reading

Posted: 08 Dec 2012 10:51 PM PST

Have you been too busy to stay informed about the unusual developments in gold this week? Not to worry!*Here are*5 of the "best-of-the-best" articles selected from 100s posted on the internet this week. Each article has been edited for the sake of clarity and brevity to ensure you a fast and easy read. Enjoy! By Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!) and www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds). Investing – Gold & Silver 1. Friday Update: Whew! Gold Continues to Bounce Off Its 11-year Channel Support Line Gold again dropped below its key support line of $1,690 during intraday trading on Friday, December 7th (going as low as $1,684.10 vs. a low of $1,687.10 on Thursday and $1,686.00 on Wednesday) but closed out the day at $1,705.20 ( vs. a $1,700.50 close on Thursday and $1,697.70 Wednesday. At first glance it looks like we may have seen the worst of this correction but only time will tell so we will continu...

This Is What Is Going On Behind The Scenes In The Gold War

Posted: 08 Dec 2012 10:01 PM PST

Today 40-year veteran John Hathaway spoke with King World News about what is going on behind the scenes in the gold war. The four-decade veteran and prolific manager of the Tocqueville Gold Fund discussed what is happening with central banks and large private wealth in terms of gold purchases and ongoing dialogues. Yes, Hathaway also had something to say about Goldman's call.

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

CoT and Chart Review

Posted: 08 Dec 2012 10:00 PM PST

from TF Metals Report:

Considering where we began the week and, also considering where we were on Tuesday, last week didn't turn out half bad. Suddenly, the charts look pretty good and the FOMC meets this week. Got your rally hat on? I do!

But first, before we get rolling, check out these two charts. On the left is a 15-minute Feb gold. It shows a classic, non-news BLSBS pattern. After initial hesitation, the news is aggressively gamed by those in charge. Price gets jammed lower to blow out some stops, panic some longs and inspire some fresh shorts. Then, in the blink of an eye, price reverses and everyone playing gets screwed again. Within the hour, calm is restored and it's as if nothing has happened…unless you're one of the unlucky ones who tried to battle Goliath. On the right is a daily chart of the Jan13 crude. LOTS of noise out there regarding Syrian invasions and chemical weapons but none of it seems to be bothering the crude pit. In fact, there seems to be no reason to even pay attention to crude until and unless it breaks UP through $90 or DOWN through $85. Until then, maybe just trade the range with tight stops?

Read More @ TF Metals Report.com

What Is Really Happening Globally & Where Gold Is Headed

Posted: 08 Dec 2012 09:00 PM PST

from KingWorldNews:

With continued volatility in key markets, today Michael Pento writes exclusively for King World News to let readers know what is happening around the world and where gold is headed. Here is Pento's piece: "The prevailing wisdom currently on Wall Street is that gold and commodity stocks will go nowhere next year because interest rates are about to rise in real terms. For instance, last week Goldman Sachs cut its 12-month gold-price forecast by 7.2%."

Michael Pento continues @ KingWorldNews.com

Precious Metals Market Report – December 13

Posted: 08 Dec 2012 07:59 PM PST

And when they [wise men] were come into the house, they saw the young child with Mary his mother, and fell down, and worshipped him: and when they had opened their treasures, they presented unto him gifts; gold, frankincense, and myrrh.  ~ Matthew 2:1

By Catherine Austin Fitts

This Thursday, [...]

Guest Post: The Icelandic Success Story

Posted: 08 Dec 2012 06:08 PM PST

Submitted by John Aziz of Azizonomics

The Icelandic Success Story

Emotionally, I love Iceland's financial policies since the crash of 2008:

Iceland

Iceland went after the people who caused the crisis — the bankers who created and sold the junk products — and tried to shield the general population.

But what Iceland did is not just emotionally satisfying. Iceland is recovering, while the rest of the Western world — which bailed out the bankers and left the general population to pay for the bankers' excess — is not.

Bloomberg reports:

Few countries blew up more spectacularly than Iceland in the 2008 financial crisis. The local stock market plunged 90 percent; unemployment rose ninefold; inflation shot to more than 18 percent; the country's biggest banks all failed.

This was no post-Lehman Brothers recession: It was a depression. 

 

Since then, Iceland has turned in a pretty impressive performance. It has repaid International Monetary Fund rescue loans ahead of schedule. Growth this year will be about 2.5 percent, better than most developed economies. Unemployment has fallen by half. In February, Fitch Ratings restored the country's investment-grade status, approvingly citing its "unorthodox crisis policy response."

So what exactly did Iceland do?

First, they create an aid package for homeowners:

To homeowners with negative equity, the country offered write-offs that would wipe out debt above 110 percent of the property value. The government also provided means-tested subsidies to reduce mortgage-interest expenses: Those with lower earnings, less home equity and children were granted the most generous support.

Then, they redenominated foreign currency debt into devalued krone, effectively giving creditors a big haircut:

In June 2010, the nation's Supreme Court gave debtors another break: Bank loans that were indexed to foreign currencies were declared illegal. Because the Icelandic krona plunged 80 percent during the crisis, the cost of repaying foreign debt more than doubled. The ruling let consumers repay the banks as if the loans were in krona.

 

These policies helped consumers erase debt equal to 13 percent of Iceland's $14 billion economy. Now, consumers have money to spend on other things. It is no accident that the IMF, which granted Iceland loans without imposing its usual austerity strictures, says the recovery is driven by domestic demand.

What this meant is that unsustainable junk was liquidated. While I am no fan of nationalised banks and believe that eventually they should be sold off, there were no quick and easy bailouts that allowed the financial sector to continue with the same unsustainable bubble-based folly they practiced before the crisis (as has happened throughout the rest of the Western world).  

And best of all, Iceland prosecuted the people who caused the crisis, providing a real disincentive (as opposed to more bailouts and bonuses):

Iceland's special prosecutor has said it may indict as many as 90 people, while more than 200, including the former chief executives at the three biggest banks, face criminal charges.

 

Larus Welding, the former CEO of Glitnir Bank hf, once Iceland's second biggest, was indicted in December for granting illegal loans and is now waiting to stand trial. The former CEO of Landsbanki Islands hf, Sigurjon Arnason, has endured stints of solitary confinement as his criminal investigation continues.

 

That compares with the U.S., where no top bank executives have faced criminal prosecution for their roles in the subprime mortgage meltdown. The Securities and Exchange Commission said last year it had sanctioned 39 senior officers for conduct related to the housing market meltdown.

Iceland's approach is very much akin to what I have been advocating — write down the unsustainable debt, liquidate the junk corporations and banks that failed, disincentivise the behaviour that caused the crisis, and provide help to the ordinary individuals in the real economy (as opposed to phoney "stimulus" cash to campaign donors and big finance).

And Iceland has snapped out of its depression. The rest of the West, where banks continue to behave exactly as they did prior to the crisis, not so much.

Harvey Organ's Report – 12/08/12

Posted: 08 Dec 2012 05:00 PM PST

by Harvey Organ, HarveyOrgan.Blogspot.ca:

Gold closed up $3.70 to $1704.00. Silver remained unchanged at $33.04.

Gold was languishing throughout the European session as investors were waiting patiently for news on the USA jobs front. At exactly 8:30 am est, gold and silver plummeted within seconds as the following hit the wires:

146,000 Jobs Added In November, Beat Expectation Of 85,000, Unemployment Rate Lower At 7.7%

The bankers no doubt were trying to orchestrate a gold/silver avalanche on Friday which is what we are accustomed to see on a jobs report day. Gold was knocked to $1685 but this price held again as gold successfully defended this resistance level. We also had a triple bottom. Demand for gold was just too great for our bankers as they immediately retreated to higher ground covering as many shorts as they could. It looks to me like $1700 gold and $33.00 silver are your new floors. The COT report below also is very bullish as the bankers massively covered their shortfall.

Read More @ HarveyOrgan.Blogspot.ca

NO SOLUTIONS MY FAT ASS

Posted: 08 Dec 2012 04:20 PM PST

Every once in awhile some know-it-all drops onto the site and derides me for not proposing any solutions. I then have to kick their ass and ridicule them. I posted an article two years ago called A Modest Proposal. It laid out my platform for saving this country. Below is the list of my proposals. I've added a couple new ones. If you don't like them, then tough shit. Come up with your own list.

Political System

  • Term limits of 6 years for Congressmen, Senators and the President. Serving in Congress is not a career. It is a duty to the country. They are not in Congress to bring home the bacon to their district or State. They are in Congress to ensure that future generations have a country that offers opportunity to live a better life than their parents. A President who doesn't have to run for re-election might actually do what is best for the country.
  • The entire election process would be scraped. It would be transformed into a 3 month publicly financed election. No money from corporations, unions, or individuals would be allowed. Candidates would have 6 debates on public TV.
  • Lobbyists and PACs would be eliminated from the political process.
  • Every bill before Congress would immediately be put online. The constituents of every Congressmen and Senator would be allowed to voice their opinion by voting yes or no online.
  • Every bill that is proposed by a Congressman MUST have a funding mechanism. If the proposal increases costs to the American taxpayer, something else must be cut to pay for the new proposal.
  • NO American troops could be committed to firing their weapons without a full vote of Congress as required by the US Constitution.
  • Presidential Executive Orders would not be allowed.
  • Federal and state government workers would be banned from unionizing. All government unions would be disbanded.

Economic Policy

  • The first thing to be done is to abolish the Federal Reserve. It has been around for less than 100 years. The Treasury has the authority to issue the currency of the country.
  • The currency of the US would be backed by hard assets. A basket of gold, silver, oil, uranium, and some other limited hard commodities would back the USD. If politicians attempted to spend too much, this basket would reveal their plans immediately.
  • The FASB would be directed to make all banks and corporations value their assets at their true market value. This would reveal that the mega Wall Street banks and corporations like GE are insolvent. An orderly bankruptcy of all insolvent financial firms involving the sell-off of their legitimate assets to banks that didn't screw up and the bondholders and stockholders would be wiped out.
  • The Department of Justice, SEC, and FBI would be directed to prosecute every Wall Street criminal to the fullest extent of the law.
  • The 16th Amendment would be repealed and the income tax would be scraped. It would be replaced with a national consumption tax. The more you consume the more taxes you pay. Saving and investment would be untaxed.
  • A balanced budget amendment to the Constitution would be voted on by the people. If passed, it would phase in over 5 years. This would require a massive reduction in spending. A downsizing of the US Military from $900 billion to $500 billion would be initiated through the withdrawal of troops from Afghanistan, Iraq, Germany, Japan and hundreds of other bases throughout the world.
  • The two most worthless departments in the government (Dept of Energy and Dept of Education) would be eliminated. All corporate subsidies would be eliminated. All Federal employees would have their pay slashed by 10% and the workforce would be reduced by 20% over 5 years. Federal health benefits and pension benefits would be slashed.
  • The Social Security System would be completely overhauled. Anyone 50 or older would get exactly what they were promised. The age for collecting SS would be gradually raised to 72 over the next 15 years. Those between 25 and 50 would be given the option to opt out of SS. They would be given their contributions to invest as they see fit if they opt out. Anyone entering the workforce today would not pay in or receive any benefits. The wage limit for SS would be eliminated and the tax rate would be reduced from 6.2% to 3%.
  • The Medicare system is unsustainable. It would be converted from a government program to private market based program. The rules and regulations would be eliminated. Senior citizens would be given healthcare vouchers which they would be free to use with any insurance company or doctor based on price and quality. Insurance companies would compete for business. Doctors would compete for business. The GAO would have their budget doubled and they would audit Medicare fraud & Medicaid fraud and prosecute the criminals brutally.
  • The healthcare bill would be repealed. Insurance companies would be allowed to compete with each other on a national basis. Tort reform would be implemented so that doctors could do their jobs without worrying about slimy lawyers. Doctors would need to post their costs for various procedures. Price and quality would drive the healthcare market.
  • The entitlement state would be dismantled. The criteria for collecting welfare, food stamps and unemployment benefits would be made much stricter. Unemployed people collecting government payments would be required to clean up parks, volunteer at community charity organizations, pick up trash along highways, fix and paint houses in their neighborhoods and generally keep busy in a productive manner for society.
  • A free market method for stabilizing the housing market would be for banks to voluntarily reduce the mortgage balances of underwater homeowners in exchange for a PAR (Property Appreciation Right).  The homeowner would agree to pay off the PAR to the Treasury (and administered through the IRS) out of future price appreciation on the existing home or subsequent property. The homeowner would be excluded from taking on any home equity loans or executing any "cash out" refinancings until the PAR was satisfied. The maximum PAR obligation accepted by the Treasury would be based on the value of the home and the income of the homeowner.
  • The Glass Steagall Act would be reinstituted, forcing a breakup of the Wall Street banks.
  • Fannie Mae, Freddie Mac, and the FHA would be wound down and eliminated. Government should have no influence or control over the housing market.
  • All Federal and State government pension plans would be converted from defined benefit plans to defined contribution plans, just like the private sector.

Education Policy

  • With the elimination of the Dept of Education, the education of children would go back to localities. Every child in America would receive vouchers for grade school, high school and college. They could choose any school to attend – public or private. If the private school cost more than the voucher, the family would pay the difference. Excellent schools would flourish, poor schools would be forced to improve or they would close.
  • Teacher tenure would be eliminated. Public school teacher unions would be eliminated. Teachers would be judged on their success and ability. Disruptive students would be immediately expelled and sent to juvenile detention centers. This would essentially force public schools to run their operations based on excellence in teaching.
  • The real skills of the students would be assessed and those whose aptitude leaned towards a trade would be directed to vocational schools. The rewarding of excellence would become the driving force, rather than equality and diversity.
  • The government would exit the student loan business. All Federal subsidies would be eliminated. This drastic reduction in funds will result in a huge drop in tuition, as colleges competed for a much smaller pool of legitimate students.

Energy Policy

  • Without the Dept of Energy to block the free market, companies should be guaranteed a fast track approval process to build nuclear power plants ASAP. The approval process for refineries and LNG facilities should also be fast tracked.
  • The Pickens Plan to convert our truck fleets to natural gas should be given priority. The government can actually do something to help the market. An upgrade and expansion of the electrical grid could connect to windmill farms built across the Plains, as long as the ROI was positive.
  • Increased drilling off the coasts and in Alaska would be allowed with proper procedures in place.
  • Fracking would be allowed, as long as proper safety procedures were enforced and the residents adjacent to these wells were fairly compensated for the use of their land. Government authorities would need to put the citizens first versus the corporate interests.
  • A national project to create high speed electric rail lines between major cities and light electric rail connecting the suburbs to the major cities would be undertaken based upon ROI. Only lines that could reasonably make profits would be built.
  • Subsidies and tax credits for ethanol, electric and other green "solutions" would be eliminated. The market would decide which technologies would work.

National Defense/Foreign Policy

  • Elimination of foreign aid to other countries would be implemented immediately.
  • Withdrawal of US forces from the Middle East and other countries would take place over 3 years. Amazingly, after we leave the Middle East, terrorism will miraculously decline.
  • Conduct free trade with all countries. Make treaties with no countries. Do not bully or threaten any country.
  • The US military would be used to defend our country. Any commitment of forces to battle would require a full vote by Congress as the Constitution states.
  • The Department of Homeland Security would be dismantled and drastically downsized. The TSA would be eliminated.
  • The torture of anyone would be outlawed.
  • The use of predator drones to kill or spy on people in other countries and in the U.S. would be outlawed.

Immigration

  • If we want to keep illegal aliens from entering the country, then we need to build a fence/wall and use technology to truly seal our southern borders. Illegal aliens are illegal. Their children are not legal. If you break the law, you are punished.
  • We should encourage the immigration of smart people to this country. Legal immigrants built this country. We should encourage the foreign students who graduate from our best colleges to stay in the country and work for American companies.
  • Illegal immigrants who have been working in this country for five years or longer could apply for citizenship. No Federal or state benefits would be paid to illegal immigrants that have failed to properly apply under this program.
  • To help stabilize our housing market, all foreigners who would buy a US property in cash would be guaranteed a fast track to citizenship as long as they break no laws.

Social Issues

  • Let people do anything they want. Gays could marry. People could practice whatever religion they want.
  • Marijuana should be decriminalized and treated exactly like liquor and beer. The prison population would decline tremendously, saving states billions.
  • Wire tapping, monitoring, and spying on US citizens would be outlawed.
  • No restrictions would be allowed over the internet. It is the only remaining place to find the truth.
  • Personal liberties would be restored. Individual rights would take precedence over corporate and government rights.
  • Only modest restrictions on gun ownership would be allowed (criminal background checks). An armed citizenry is the best defense against tyranny.

Mike Kosares: Saving gold -- old reliable stands tall in crisis atmosphere

Posted: 08 Dec 2012 01:35 PM PST

3:30p ET Saturday, December 8, 2012

Dear Friends of GATA and Gold:

Mike Kosares, proprietor of Centennial Precious Metals in Denver and its Internet site, USAGold.com, has done a year-end review of inflation-adjusted rates of return on investments, and while 2012 has not been a spectacular year for gold, he reports that gold still is far outpacing interest-paying securities like bank certificates of deposit. Kosares' study is headlined "Saving Gold: Old Reliable Stands Tall in Crisis Atmosphere" and it's posted at USAGold.com here:

http://www.usagold.com/publications/savinggold2012.html

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


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Join GATA here:

Vancouver Resource Investment Conference
Sunday-Monday, January 20 and 21, 2013
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Vancouver, British Columbia, Canada
http://www.cambridgehouse.com/event/vancouver-resource-investment-confer...

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Or by purchasing a colorful GATA T-shirt:

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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:

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To contribute to GATA, please visit:

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


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Opinion Around the World Is Changing
in Favor of Gold -- Find Out Why

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

What Does Tax Loss Selling Look Like on Short Term Charts?

Posted: 08 Dec 2012 01:30 PM PST

Update 1:  Adds longer term charts for context.

HOUSTON -- Vulture G.L. in Europe asked if we could show examples of what tax loss selling might look like on our short term volume candle (VC) charts.  The charts are evidently becoming popular.   All of the examples below could, that's could be showing tax loss selling. 


Tax loss selling is often characterized by repetitive sales into the bid, as opposed to setting up on the offer, so they tend to show up as negative volume on our 1-hour and 30-minute VC charts.

Of course there is no way to tell for certain what the motives behind any particular sale were merely by looking at a chart, but over time we do get a sense of the trading personality and can make reasonably informed assumptions from unusual activity – especially if that activity is consistent. 

First up is Timberline Resources (TLR).  On Friday one particular seller unloaded a bit more than 100,000 shares into the bid, knocking the bid lower by as much as 4-cents.  Interestingly, the sales seemed to be soaked up by more than one willing buyer.   TLR closed the day lower, but well above its low print.  Disclosure:  Timberline is one of our largest SRC positions and we have set up a bid ladder to catch even more if it trades a tiny bit lower than it did on Friday.  

20121208-tlr

All charts are 15-day, 1-hour increment volume candle (VC), which show the relative size of the increments in both the trading candles and the volume bars. 

Edit Saturday 21:30 to add longer term charts for context by request. 

For context, a longer term weekly chart below comparing the issue to important indexes that track the junior miners.   

20121208-tlr-comparison


Next is Comstock Metals (CSL.V).  Comstock has three factors giving us a great buying op at the moment.  The first is momentum from a sell on news event (SON) last month when the last drill results came in for the small drill program at the VG Zone in the Yukon.  People believe that there will be little chance for market moving news over the long Yukon winter (forgetting all about CSL's Corona project in Mexico and additional exploration and trenching to come from the Yukon), so they used the good drill results at VG as a liquidity event to get out.

The first SON sellers set the tone, driving CSL lower and that fed on itself enough to trigger the second downward pressure event, tax loss selling.  Yet a third factor is a 15-cent financing that is just now becoming free trading – which allows the participants to sell their shares at anything above $0.15 and still have the warrant in case CSL does well in the future. 

Although it is not strictly legal to sell the shares short and then replace them with private placement shares once the restriction has been removed, some of the placement participants find ways to sell the stock short (or an equivalent action) ahead of when the restricted stock becomes free trading (either by selling unrestricted shares already in hand or other, more opaque means, such as using separate accounts in divergent cross border brokerages, et al), so the downward pressure from the sales of placement participants actually comes in or begins well ahead of the expected free trading date.     

In the chart below we point to several periods of obvious negative liquidity, hammering the bid.  Most likely that is tax loss selling at this late point, but all three factors could be in play.  All three factors are likely to end shortly and we would not at all be surprised to see CSL finding overwhelming support (OS) before the end of the month – as the selling has now taken the share price well below where it probably should have given the good drill results  this year.   

20121208-CSL
 
Momentum is difficult to predict in a normal market and downright unpredictable in a wicked negative liquidity environment as we have underway today, so we have to be willing to expect just about anything price wise (and try to take advantage of it) until the negative feedback loop exhausts itself.   The good news is that it will exhaust itself at some point.  Disclosure:  We participated in previous financings; we are accumulating this one aggressively at the moment and hold a growing long position on CSL.V. 

For context, a longer term weekly chart below comparing the issue to important indexes that track the junior miners.   

20121208-CSL-comparison


Next is GoldQuest  Mining (GQC.V) which is kind of the same story as with CSL.  From market darling to temporary market goat in a relatively short time, but based on  not all that many drill holes in the exciting Romero discovery in the Dominican Republic.   Some of those drill holes were of the absolutely fantastic variety, setting the expectation bar way, way too high and sending this issuer up from around 5-cents to over $2.00 in a very short time.  Some of those very excited trend jumpers with grand expectations in August and September now find themselves with a tax loss candidate about 75% lower than their entry.  Ouch. 

The VC chart below shows a gap lower on huge volume, a combination of disappointment selling following the release of a batch of drill results that failed to live up to the still overly high expectations of the fickle trend jumpers and retail gamers, and likely a bit of a panic spike lower.  The negative liquidity that follows that gap lower is likely in large part tax loss selling in our view.  

 
20121208-GQC

Despite the obvious fall from grace by GoldQuest since September, colleagues we know and respect are on the bid, not the offer for GQC – thinking more long term, but with more reasonable expectations.  GoldQuest is one of the more interesting exploration stories out there.  Disclosure:  We are aggressively accumulating GQC at the moment, content to build our stake in the company while it is being "goatified" by a fickle, unforgiving market.  We hold a recently acquired long position. 

For context, a longer term weekly chart below comparing the issue to important indexes that track the junior miners.   

20121208-GQC-comparison

Finally, one more from the Yukon.  Kaminak Gold (KAM.V)  broke long term support in early November and has come under what we call "Panic Spike" selling since then.  Ironically, this particular panic spike follows a $12 million, $2.50/sh financing closed in early October, landing a major posture puncture for the company and the financing underwriters (RBC Capital Markets, Canaccord Genuity, Fraser Mackenzie, Mackie Research Capital, Paradigm Capita, and Raymond James).  Ouch! 

The chart below shows what a panic spike can look like, and with Kaminak having broken major long term support it has become a kind of poster child for tax loss selling.  However, it may be reaching the level we call "OS" or overwhelming support around the $1.00 mark.  Heavy emphasis on the word "may."  In private charts we have added the label "Capitulation Watch," meaning we are on the lookout for capitulation on this issuer imminently.  This kind of irrational downward momentum can be surprising in both intensity and amplitude, so we cannot be surprised by just about anything price wise until the downward momentum and tax loss selling is exhausted.  We Vultures love this kind of action, by the way – when we are in an accumulation mode.

 

20121208-KAM
  
Does Kaminak deserve this kind of mistreatment by the market?  No way in our opinion.  So we view the current set up as a gift from the Trading Gods and thus we are aggressively accumulating it over the past three weeks.   Disclosure:  We have recently begun building a stake in Kaminak, having followed it on charts for years with no position.

For context, a longer term weekly chart below comparing the issue to important indexes that track the junior miners.    

 
20121208-KAM-comparison

Thanks for the question.  We hope you find the above interesting.  As always everyone should study the issues carefully and make their own informed decisions.  We are high risk takers here at Got Gold Report.  What we do - vulutre speculation -  is not for everyone.  

Jim's Mailbox

Posted: 08 Dec 2012 01:24 PM PST

Hello Jim,

Thanks for your website. Wherever I go, I read your website every day!

I thought you might be interested in this article in the French newspaper Le Figaro. Gold has now become the fourth most preferred investment for French people, after real estate, savings accounts, and life insurance. Very conservative huh?

Gold

Continue reading Jim's Mailbox

U.S. printed three billion $100 bills, up 100% since 2007 financial collapse

Posted: 08 Dec 2012 11:46 AM PST

Nicholas Colas, ConvergEx Group chief market strategist, released a note Tuesday in which it confirmed that the United States government printed three billion $100 bills in the 12 months that ended Oct. 31, according to figures he used from the U.S. Treasury Department's Bureau of Engraving and Printing (BEP).

Production of the $100 bill is up 100 percent since the collapse of the U.S. economy began in 2007 and is 50 percent more than the total number of $1 bills printed in the same time period. These numbers suggest that there is a healthy demand for $100 bills in both the regular economy and the shadow economy and the demand is still continuing to grow.

Colas explained that $100 bills are the preferred denomination among those in the underground economy's illegal activities, such as the drug trade, illegal arms transactions and even tax evasion deals. He explained that since the U.S. dollar is in danger of losing its world reserve currency status, the statistics show that it's sort of an endorsement by the underground entities.

Also, the increase in use of $100 bills could be because there have been delays of a newer version of the note, which has had technical difficulties and the newly printed currency has not yet been in circulation.

Meanwhile, when it comes to smaller denominations, the demand isn't there. One of the reasons is that many consumers are turning to credit and debit cards to purchase items that are relatively cheaper. The innovation in credit technology has become transparent in recent years as a Visa card can simply tap a machine to purchase a $1.50 coffee or a $0.50 bottle of water. Read more....

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Egypt's "Temporary " Dictator To Deploy Army Against Protesters

Posted: 08 Dec 2012 10:57 AM PST

Update: The devolution is complete as Egypt declares martial law.

* * *

It was only a matter of time before Egypt's US-endorsed temporary dictator resolved to what will be spun as temporary military intervention against what is increasingly looking like a permanent counterrevolution by deploying the army to crush local protesters who have besieged the Egyptian presidential palace for almost a week, and have put the country's new "democratic" regime increasingly under threat of collapse.

RT reports that "Egyptian President Mohamed Morsi will authorize the deployment of the country's armed forces to quash protests in Cairo, al-Ahram reported. The military said prolonging the crisis would be "disastrous," and that they would not tolerate violence. At least six people died and hundreds were reported injured over the last few days in the unrest that has gripped the Egyptian capital since late November. Al-Ahram reported that the armed forces will be given powers of arrest, previously an exclusive right of the police."

Naturally, once one starts down the slope of "temporary decrees" (never to be confused with presidential Executive Orders), one doesn't go back. The only question is whether the denouement of the Mursi administration will be a peaceful one with the self-imposed dictator stepping down without a fight, or if the country will devolve into an all out civil war, threatening the (in)stability of the region even further.

Egyptian army soldiers stand on top of an army tank as thousands of protesters walk in the streets in front of the presidential palace on December 7, 2012 in Cairo (AFP Photo / Gianluigi Guercia)

More from Al Arabiya:

On Saturday, the military urged political forces to solve their dispute via dialogue saying it would take the country into a "dark tunnel," hinting military intervention.

 

"Anything other than that [dialogue] will force us into a dark tunnel with disastrous consequences; something which we won't allow," according to a military statement read out on state TV.

 

Failing to reach a consensus, "is in the interest of neither side. The nation as a whole will pay the price," the statement added.

 

The military stressed that dialogue is the "best and only" way to take Egypt out of its crisis adopted by the Muslim brotherhood. The country previously watched as the military had control over previous presidents particularly after Mubarak's fall.

 

However, Mursi pushed the general's aside in August and they had shown little appetite to intervene in Egypt's latest crisis.

 

....

 

The army started to assert itself again, sealing off the presidential palace with tanks and barbed wire, saying it "realizes its national responsibility in protecting the nation's higher interests," and state institutions.

 

The state-run daily al-Ahram reported that Mursi would soon authorize the military to help police keep order and give it powers of arrest under a decree approved by the cabinet. It did not say when the decree would be issued.

On the other hand, a far greater problem would evolve if instead of a simple escalation, the conflict grew into a schism along religion lines:

The Muslim Brotherhood's supreme guide, Mohamed Badie, denounced opposition protests that have swirled around the walls of the Mursi's palace, saying they "ruin legitimacy."

 

Badie said eight people, all of them Brotherhood members, had been killed this week and urged the interior minister to explain why police had failed to prevent assailants from torching the organization's headquarters and 28 other offices.

 

"Get angry with the Brotherhood and hate us as much as you like, but be reasonable and preserve Egypt's unity," he told a news conference. "We hope everyone gets back to dialogue."

 

The turmoil has exposed deep divisions over the destiny of a country of 83 million where the removal of Mubarak 22 months ago led to a messy army-led transition, with the Brotherhood and its allies winning two elections.

 

The well-organized Brotherhood, which pushed Mursi from obscurity to power, remains his surest source of support, with over 80 years of religious and political struggle behind it.

 

Late on Friday, Prime Minister Hisham Kandil urged political forces to take "courageous and constructive steps" by calling off protests and joining the dialogue without preconditions.

This is the same Egypt about which US State Department secretary Burns issued the following statement as recently as July:

First, let me take this opportunity to congratulate the people of Egypt on what is truly an historic set of achievements. A peaceful revolution. Competitive elections. The first democratically elected civilian president in Egypt's history. For all the very real problems that remain, not all nations who rose up alongside you last year have been so fortunate. Not all nations carry Egypt's strategic and historic weight. And not all nations can have such an important impact on the entire region through the success of their democratic transition, and through their continued role as a strong pillar of peace, security, and prosperity.

 

Second, the United States will do all we can to help ensure a successful transition in Egypt, which offers the best path to realize the aspirations of the Egyptian people for dignity, for opportunity, for security, and for a voice in their own affairs. Egyptians know far better than we do that their aspirations are not yet fully realized, but they can count on America's partnership on the complicated road ahead.

 

Third, we are mindful that many of the Egyptian people's most pressing concerns today are economic in nature. We are fully committed to tangible initiatives to help Egypt deal with its economic challenges, including meeting immediate financial concerns, providing debt relief, helping to create jobs and educational opportunities, and encouraging U.S. investment and tourism. For all the obvious challenges, Egypt clearly has the potential for economic revival and inclusive growth.

 

Fourth, in a very short time, Egypt has traveled a remarkable distance, but a great deal of work remains to build the strong, durable democratic system for which the Egyptian people launched their revolution. It will be critical to see a democratically elected parliament in place, and an inclusive process to draft a new constitution that upholds universal rights. The challenge remains of building institutions which will ensure that no matter who wins an election in any particular year, the rights of all Egyptians will always be protected. This challenge belongs not just to Egypt's leaders but to its citizens as well.

 

Finally, tens of millions of Egyptians will be looking to President Morsi and the Cabinet he forms to take needed steps to advance national unity and build an inclusive government that embraces all of Egypt's faiths and respects the rights of women and secular members of society. So will the international community. We are fully committed to working with Egypt's President, its new government and all parties to sustain our partnership and advance our shared interest in a strong, democratic, and economically vibrant Egypt that is a force for peace and stability in the region.

Funny stuff.

And while the local situation in the country which the US called a "pillar of peace, security and prosperity" to get much bloodier, violent and overall louder, one person who has kept very quiet during the past few weeks is none other than Hillary Clinton, who as recently as July welcomed Morsi with open arms.

From the NYT:

Secretary of State Hillary Rodham Clinton arrived in Egypt on Saturday for meetings with its newly elected Islamist president and the chief of its still-dominant military council, declaring that the United States "supports the full transition to civilian rule with all that entails."

 

But after weeks of internal debate across the Obama administration over how to respond to the ongoing struggle between the president and the generals, Mrs. Clinton touched on it only lightly, saying she looked forward to working "to support the military's return to a purely national security role."

 

State Department officials said the meeting itself sent a historic message. Seated in an ornate room in the presidential palace, Mrs. Clinton smiled for cameras and traded pleasantries with President Mohamed Morsi of the Muslim Brotherhood, an Islamist jailed more than once by the American-backed autocracy overthrown 18 months ago. She became the highest ranking United States official to meet Mr. Morsi since he was sworn in two weeks ago as Egypt's first democratically elected president.

This is the same Hillary Clinton who "was targeted by protesters who threw tomatoes and their own shoes at her motorcade during a visit to Egypt on Sunday. Demonstrators also mockingly chanted 'Monica, Monica' in reference to Bill Clinton's extra-marital affair. The Secretary of State was on her first trip to Egypt since the election of the country's new Islamist President, Mohammed Morsi."

Mursi is thus on the way to becoming the second US-supported dictator in Egypt. The irony of course is that like the Fed's market interventions, the half-life of the US state department imposing its pawns in various countries, only to see them turn against the US. can now be measured in months.

The only question remaining is with the CIA and the US having no natural allies left in the country that controls the Suez Canal should Morsi be thrown out one way or another, how will America continue to impose its control in this country which is becoming ever more critical at a time when the gateway to Africa is one of the most important geopolitical tension points, not to mention a key focal point in the simmering Iran-Israel conflict?

China's production and demand chart shows gold's future, von Greyerz says

Posted: 08 Dec 2012 10:32 AM PST

12:30p ET Saturday, December 8, 2012

Dear Friend of GATA and Gold:

Gold fund manager Egon von Greyerz tells King World News today that gold's future is secured by a chart of China's production and demand, which is included with an excerpt from the interview with von Greyerz at the King World News Internet site here:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/12/7_He...

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


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Opinion Around the World Is Changing
in Favor of Gold -- Find Out Why

When Deutschebank calls gold "good money" and paper "bad money". ...

http://www.gata.org/node/11765

When the president of the German central bank, the Bundesbank, pays tribute to gold as "a timeless classic". ...

http://www.forbes.com/sites/ralphbenko/2012/09/24/signs-of-the-gold-stan...

When a leading member of the policy committee of the People's Bank of China calls the gold standard "an excellent monetary system". ...

http://www.forbes.com/sites/ralphbenko/2012/10/01/signs-of-the-gold-stan...

When a CNN reporter writes in The China Post that the "gold commission" plank in the 2012 Republican platform will "reverberate around the world". ...

http://www.thegoldstandardnow.org/key-blogs/1563-china-post-the-gop-gold...

When the Subcommittee on Domestic Monetary Policy of the U.S. House of Representatives twice called on economist, historian, and gold standard advocate Lewis E. Lehrman to testify. ...

World opinion is changing in favor of gold.

How can you learn why and what it will mean to you?

Read the newly updated and expanded edition of Lehrman's book, "The True Gold Standard."

Financial journalist James Grant says of "The True Gold Standard": "If you have ever wondered how the world can get from here to there -- from the chaos of depreciating paper to a convertible currency worthy of our children and our grandchildren -- wonder no more. The answer, brilliantly expounded, is between these covers. America has long needed a modern Alexander Hamilton. In Lewis E. Lehrman she has finally found him."

To buy a copy of "The True Gold Standard," please visit:

http://www.thegoldstandardnow.com/publications/the-true-gold-standard


Join GATA here:

Vancouver Resource Investment Conference
Sunday-Monday, January 20 and 21, 2013
Vancouver Convention Centre West
Vancouver, British Columbia, Canada
http://www.cambridgehouse.com/event/vancouver-resource-investment-confer...

* * *

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:

http://gata.org/tshirts

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:

http://www.gata.org

To contribute to GATA, please visit:

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


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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/.

Brett Arends: In gold investing, forget the metal and focus on stocks

Posted: 08 Dec 2012 10:25 AM PST

By Brett Arends
The Wall Street Journal
Friday, December 7, 2012

http://online.wsj.com/article/SB1000142412788732331680457816123025437189...

Want to buy some cheap gold? Consider gold-mining stocks.

Shares of the leading precious-metals companies have lagged behind the price of physical gold bullion so steeply in recent years that they now trade for significantly less than the value of the companies' gold reserves, analysts say. In fact, they say, the gap is among the widest ever seen.

And although mining stocks can be more volatile than bullion in the short term, over the medium to long term they could boom if gold -- which remains about 10% below its 2011 peak -- resumes its bull run.

Gold has risen 10% this year, but the Philadelphia Gold & Silver Index, which tracks the stocks of the world's leading precious-metal mining companies, has fallen 8% on concerns that mining costs and political risks are increasing. Over the past five years, while gold has more than doubled to $1,721, the Philadelphia index has fallen 2%. It is near its lowest level versus the gold price since FactSet began tracking the data in 1984.

... Dispatch continues below ...


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To put it simply: The price of an ounce of gold today would buy more stock in gold-mining companies than at any point in a quarter century.

Under this measure, mining stocks are as cheap "as we have ever seen them -- at least in my career, which is nearly 30 years," says David Christensen, manager of ASA Gold and Precious Metals, a $460 million closed-end mutual fund based in San Mateo, Calif., which invests in mining stocks and has been operating since 1958.

George Topping, a gold-mining analyst at Stifel Nicolaus in Toronto, says the only other time the discounts were close to this extreme was in 1999, when the gold industry was near the end of a long bear market. The current prices for major gold-mining stocks would make more sense if gold were about $1,300 an ounce than the current level of more than $1,700, he says.

Mr. Topping notes that shares of Toronto-based Barrick Gold Corp. and Denver-based Newmont Mining Corp., the world's biggest gold producers, trade for about 60% of his estimate of the per-share value of their gold reserves, after accounting for costs and the time it would take to extract the metal. Other major producers are at similar discounts to the value of their reserves, he says.

Analysts and fund managers point to a number of reasons for the poor performance of gold-mining stocks. A surge in miners' operating costs has shaved off some of the extra profits. The rising popularity of gold-bullion exchange-traded funds has taken away investment dollars that might otherwise have flowed into mining stocks. Growing political risks, such as strikes in South Africa and a possible mining tax in Australia, have kept some investors away. John Hathaway, manager of the $2.5 billion Tocqueville Gold fund, says investors also have shied away from the stocks because they fear gold itself might fall.

Yet industry experts say the biggest factor has been the rising cost of the industry's new investment boom. Mining companies have used their surging revenues to launch long-term projects and expensive takeovers, many of which could offer low returns on their sizeable investments.

Mr. Hathaway's firm calculates that over the past five years the top 10 gold-mining companies have almost tripled their total capital expenditure from $7.8 billion in 2007 to nearly $22 billion this year. The figure in 2003 was less than $2 billion.

In a May research report, Stifel's Mr. Topping urged big gold miners to drop their most expensive and least attractive projects and to return the money to stockholders through higher dividends. He calculates that if companies did this they could easily pay out annual dividends equal to 5% of the stock price or more, compared with the 1% to 3% typical now.

"If they just froze their production profiles, they'd be gushing cash flow," agrees Tocqueville's Mr. Hathaway.

There are some signs that industry executives in recent months have started paying attention. Over the summer Barrick announced a tougher stance on capital expenditure, and deferred indefinitely its major Cerro Casale project in Chile and Donlin Creek in Alaska. Newmont said its Conga project in Peru would continue only on a "measured basis." Kinross Gold Corp. K.T +0.63%announced plans to cut costs and rein in capital expenditure, and is considering shrinking a big project in Mauritania.

Ralph Aldis, co-portfolio manager of the U.S. Global Investors Gold and Precious Metals Fund, a $200 million fund, says he thinks the change is real. "In the last few months, these guys have had an epiphany," he says.

To be sure, the results have yet to be seen and investors remain skeptical, as the recent declines in the stock prices show. Should the companies continue to overinvest, or should gold itself fall, the stocks might disappoint. Yet at current levels the stocks already have factored in a great deal of bad news, analysts note.

Investors wishing to buy gold stocks have an array of choices. Specialist gold mutual funds buy stocks across the sector. A few, such as Mr. Hathaway's Tocqueville Gold, also own some bullion. Andy Claybrook, founder of Fee-Only Financial Solutions, a financial advisory in Franklin, Tenn., likes Tocqueville, which carries annual expenses of 1.26% a year, or $126 per $10,000 invested, and the $1.6 billion USAA Precious Metals and Minerals Fund, which charges 1.17%, citing the fund managers' expertise.

Low-cost exchange-traded funds buy baskets of gold stocks and typically have low fees. They include the $9 billion Market Vectors Gold Miners Fund, which charges 0.52% a year, or $52 per $10,000 invested, and the $37 billion iShares MSCI Global Gold Miners Fund, with annual expenses of 0.39%.

For those who wish to buy individual stocks, Mr. Topping recommends sticking to the bigger companies and prefers Vancouver-based Goldcorp. Its mines are mostly in North America and he predicts output will increase 60% over the next four years. The stock trades at around 75% of the per-share value of the company's gold reserves, he estimates.

If gold regains its gleam, mining stocks might glitter.

* * *

Join GATA here:

Vancouver Resource Investment Conference
Sunday-Monday, January 20 and 21, 2013
Vancouver Convention Centre West
Vancouver, British Columbia, Canada
http://www.cambridgehouse.com/event/vancouver-resource-investment-confer...

* * *

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:

http://gata.org/tshirts

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:

http://www.gata.org

To contribute to GATA, please visit:

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

Saturday (morning) Weekly Market Wrap for December 8, 2012

Posted: 08 Dec 2012 10:11 AM PST

Gold was Down a bit. I said last week that the little Rally will likely fail. It's in the Process. Remember the Highs were way back in August 2011 at $1925. The current price of $1750 is a long ways from getting excited again. Read More...

This Past Week in Gold

Posted: 08 Dec 2012 10:10 AM PST

Summary: Long term - on major sell signal. Short term - on mixed signals. Gold sector cycle - down as of Oct 13. Read More...

Guest Post: Complacency Everywhere You Look

Posted: 08 Dec 2012 09:27 AM PST

Submitted by Michael Panzner of Panzner Insights

Complacency Everywhere You Look

When trying to get a handle on investor sentiment, the benchmark of choice for many market-watchers is the CBOE S&P 500 Volatility Index, or VIX. However, this popular "fear gauge" only offers a snapshot of implied volatility, or relative pricing levels, for equity index options, which might not necessarily tell us all we need to know about the mood on The Street.

In theory, stock traders could be overreacting to equity-specific developments that are not relevant to other markets.

That said, there is data that suggests the high levels of complacency in the stock market are also being seen elsewhere. As the chart shows, gauges of implied volatility levels for equity, bond, currency, gold, and oil markets are at or near multi-month lows, indicating that "the crowd" is unanimous in its belief that nothing untoward is going to happen in the immediate future.

Should we be worried?

A Look Inside The Gold Vault Of The Bank Of England

Posted: 08 Dec 2012 09:20 AM PST

The following video is really exciting as it shows an amount of gold in one area that almost any individual will see in its whole life. The video crew was allowed to record inside the gold vault of the Bank of England, where gold is vaulted with a value of 315,000,000,000 US dollar ($ 315 billion or £ 197 billion) at the current gold price. Some interesting insights from the video:

  • Each self contains 1 ton of gold, with a value of 56 million US dollar per shelf (at today's gold price)
  • The large bars weigh 12.4 kg and have a value of 695.500 US dollars (or £ 435,000), worth 2 nice houses.
  • The oldest bar of gold is sitting in the vault since 1916. The beauty of gold as a chemical elements is that it is very unreactive, so it looks and smells exactly the same as in 1916 (gold as an element does not change neither at the surface, neither inside, neither is there a change in the smell)
  • All gold ever mined fit under the legs of the Eiffel Tower, you can compare it with a building on the street.

The video is only 6 minutes long but quite unique.

Gold Confiscation Lessons from the 20th Century

Posted: 08 Dec 2012 06:09 AM PST

Three nasty examples of how people lost the gold they owned... TODAY'S chatter in the trading rooms says some gold owners fear a punitive US tax hike in New Year 2013, with the Obama government targeting precious-metal investors. Hence this month's sell-off (or so the tittle-tattle says) – akin to the move by Japanese households to sell gold in late 2011 ahead of new reporting rules for precious-metals dealers.

Gold and Silver Investments and the Rise of False Contrarian Gurus

Posted: 08 Dec 2012 06:04 AM PST

The typical technical analysis based stock-slinging newsletter is written by a contrarian who denies market manipulation and often ridicules those who attempt to discuss it seriously and rationally. Furthermore, the degree of denial and hostility faced by proponents of market manipulation theories is usually directly proportional to the amount of evidence actually underpinning the issue.

Silver Investment Opportunity Time is Slipping Away

Posted: 08 Dec 2012 06:02 AM PST

Everything has been distorted by the media.  Humanity may no longer believe that the sun revolves around the earth, but some people still think that they can control nature. Nevertheless, with all the truly breathtaking science that has resulted in great social progress and technological advancement, the mass distortions in perception caused by propaganda — including illegal, unethical and immoral media intervention — will resolve itself eventually.

Should the UK Join the Euro?

Posted: 08 Dec 2012 05:53 AM PST

Jan Skoyles looks at how the Euro might not be such a bad idea if it is the interim step to a return to the gold standard. Looking at a paper written by Jesus Huerta de Soto, she looks at the Austrian arguments for the UK joining the Euro, but concludes that the current path of central bank net gold investment and private citizens choosing to buy gold is more likely to be providing the first steps to the new gold standard. 

Preppers Who Make Surviving The Apocalypse Even Less Fun

Posted: 08 Dec 2012 01:15 AM PST



Being forced to endure and survive a catastrophic macro event like a monetary or social collapse is perhaps one of the worst experiences I could imagine.  Such a crisis leads to just about every crime and inhuman action in existence, and, the time required for a culture to right itself and rebuild is severely protracted.  A hurricane or earthquake or tidal wave; these calamities are short lived and easy in comparison.  The point is, as survivalists who are preparing to make an economic end-game scenario as "comfortable" to live through as we can, it is incumbent upon us to consider the kind of company we keep during the gambit.  Some allies will make that mad world bearable; others will bring the madness to your doorstep

Many preppers are aware of the dangers inherent in our progressively deteriorating nation.  Unfortunately, some of them are completely unaware of the dangers inherent within themselves.  Building a solid community of people to rely on during a collapse is absolutely essential, and the larger the group of liberty minded neighbors the better.  But, if certain ground rules are not established from the very beginning, a rainbow of personal issues and character flaws could very well destroy years of effort.  Care must be taken by all parties involved to ensure that internal conflicts remain at a minimum, and when they do arise, that each person is wise enough to resolve issues in an adult manner.

I hate to say it, but you will inevitably run into some folks that are beyond compromise and beyond hope.  Working with them is like pulling teeth…shark's teeth…from your jugular.  Here are just a handful of powder keg personalities that will make the apocalypse more than a living hell for you and your friends if they manage to latch onto or take leadership in your survival watch… Read more....

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

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