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- Lawmakers Call for Stricter Gun Control Even As They Subsidize Gun Industry
- Japanese Yen ETF Falls To 2-Year Low
- A Look on Gold from the Non-USD Perspective
- Gold And Silver Still Better Off Than Earlier This Year
- Light at the End of the Tunnel for Gold
- Gold Regains Some Ground, “Good Demand” for Gold from India
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- Welcome to the Currency War, Part 6: Japan Gets Explicit
- Eric Sprott: Why are [Smart] Investors Buying 50 Times More Physical Silver than Gold?
- Europe reluctant to use Gold reserves to fight debt crisis
- Key Reit: 10% Dividend Yield With Near-Zero Market Correlation
- RJO's Streible: Silver Will Be #1 Commodity Pick of 2013, Short Covering Rally Will See Prices EXPLODE!
- Kyle Bass at AmeriCatalyst 2012
- China's SGE to raise Gold margins to 13%
- Shanghai Gold Exchange Hikes Gold Margins to 13%
- Fascinating Tour of the International Space Station
- Gold sales drop by 50% in Saudi Arabia
- Jim Willie: The Gold War
- Gold & Silver Pop on COMEX Open, Silver Regains $30 Handle
- Why Smart Investors Buy 50 Times More Silver
- When All Else Is Failing, Slam Precious Metals Prices
- Dubai Gold price declines as Yuletide cheer skips investors
- Bullion Regains Ground, 'Good Demand' from India
- Russia's Kyuchus holds 177.50 tons of Gold, 26.9 tons of Silver
- Silver top commodity pick for 2013
- Suriname to attract $2.5 billlion Gold investments
- Gold & Silver Still Better Off Than Earlier This Year
- Gold falls in thin Boxing Day trade
- Precious Metals Decouple from Stock Market
- Gold in Doesn't-Beat-Stocks Shocker!
- Boston Consulting Group comes to Armageddon conclusion about a coming global economic reset
- The Reserve Bank of Australia Explained
- Why silver is still the top commodity tip again for 2013
- Buying Silver Other Than Coins
| Lawmakers Call for Stricter Gun Control Even As They Subsidize Gun Industry Posted: 26 Dec 2012 10:34 AM PST By Matt Stoller, a fellow at the Roosevelt Institute. You can follow him at http://www.twitter.com/matthewstoller One of the consequences of the tragedy in Sandy Hook is an ardent debate over gun control laws all over the country. In Massachusetts, for instance, which has an assault weapons ban, Governor Deval Patrick, along with members of the legislature, is now trying to figure out how to close gun loopholes. Rep. David Linsky says he wants to go over "every single line, every single comma of our gun laws" to prevent ownership of the kinds of gun used in Connecticut. These debates are interesting mostly for what they leave out – the economics of the gun industry itself and its subsidization by the state through various tax credits, direct spending, and legal forbearance. Smith & Wesson, one of the largest gun makers in the country, is headquartered in Springfield, MA. According to the company's 2012 annual investment report to the SEC (10-k), Smith & Wesson received a large multi-million dollar tax credit from the state that started in 2010 and will continue until 2017. This tax credit, of $6.0 million, brought a maximum of 225 jobs to the state, or roughly twenty seven thousand dollars of taxpayer money per job, and was awarded by an obscure committee called "the Massachusetts Economic Assistance Coordinating Council." That amount works out to a little less than $1 per person in Massachusetts, money that goes straight to Smith & Wesson's bottom line. Most Massachusetts residents don't know their legislators and Governor have donated a dollar in their name to Smith & Wesson through job creation tax credits. Regardless of their views on gun control, I'm guessing Massachusetts taxpayers probably don't favor subsidization of the industry at such a rich rate. At the same time as Smith & Wesson receives such bounty from the state, the gunmaker has given over $1 million to the National Rifle Association (NRA), the biggest lobbying group for guns. This means that the state of Massachusetts, while considering further regulations on gun purchases, is at the same time indirectly funding the gun lobby. To actually reduce the number of guns on the streets, Linsky, and many of our state and Federal officials, could start by ending the subsidization of gun makers through tax credits and security funds. Subsidization goes well beyond tax credits like this. According to Smith and Wesson's investor documents, gun sales growth is driven by two factors. One is security spending by law enforcement. The other is media-stoked fear of the political process driving consumer purchases. Or, as the company put it, "speculation surrounding increased gun control and heightened fears of terrorism and crime can affect consumer demand for our products." In the 1990s, Bill Clinton was considered "gun salesman of the year" by gun culture magazines, and gun makers were licking their chops in anticipation of Obama's Presidency. In 2009, according to CNN, gun makers were a hot investment.
Smith & Wesson's 2012 annual report to the SEC (10-k) lays out how consumer demand works. "There was a substantial increase in sales in the early 1990s during the period leading up to and shortly after the enactment of the Brady Bill," and then handgun sales increased by 50% from 1992-1994 due to "the fear of prohibition of handgun ownership." Gun sales dropped back to pre-1992 levels until "late in calendar 2008, when sales increased in what appears to be fears surrounding crime and terrorism, an economic downturn, and a change in the White House administration." But it goes beyond that. State subsidization of the gun industry is extensive. In an article published in 2009, the Christian Science Monitor noted that the "surprise winner" of the 2009 stimulus package was the gun industry. As journalist Patrik Jonsson wrote, "Police departments are using some of the stimulus money to arm up, helping to make Obama 'gun salesman of the century." Consumer sales in 2009 were up 29%, a remarkable amount due to intense fear among consumers. Even so, law enforcement spending on guns jumped even more, by 32%. Gun purchases by government were apparently shovel-ready, as the expression goes. Smith & Wesson, unlike a lot of American corporations, still makes products in America, specifically, in Springfield, Massachusetts. One doesn't typically think about Massachusetts as a center of the gun industry, or of the seat of opposition to gun control laws, but that's because the frame of the debate is social, not economic. When Smith & Wesson shut down a smaller manufacturing plant in New Hampshire in 2011, it moved 225 jobs from that state to its much larger plant in Springfield, MA. This was partially due to economic efficiencies implied in consolidating the plant, but also due to state subsidy mentioned above. So far, $4.4 million of the tax credit has been doled out. And the program is considered a success. Even as the Governor discusses new gun control legislation, local business development officers are bragging about bringing new jobs making these weapons to Western Massachusetts, with taxpayer money. There's more. It won't surprise you that the gun industry is pretty dirty. Back in 2010, about the time Massachusetts was deciding to grant the company a $6 million subsidy, the VP of sales for Smith & Wesson was indicted for attempting to "bribe the representative of an African country that was taking bids for a $15 million deal to outfit that country's presidential guard." The representative, it turns out, was an undercover FBI officer. Bribing a foreign official is a violation of the Foreign Corrupt Practices Act, a law that Department of Justice criminal chief Lanny Breuer has bragged about enforcing vigorously. The SEC commenced an investigation as well. Yet, just two years after indicting, "22 individuals from the law enforcement and military equipment industries, one of whom was our former Vice President-Sales, International & U.S. Law Enforcement," the DOJ "filed a motion to dismiss with prejudice the indictments of the remaining defendants who are pending trial, including our former Vice President-Sales, International & U.S. Law Enforcement." This is potentially legal forbearance, where lax enforcement of laws could be considered another type of subsidy. It would be consistent with the economic aid going to this company, and the corporate world in general, in other areas. This is simply one example of one gunmaker getting subsidized under various schemes, at the state and Federal level. The use of Federal stimulus funds to increase the profitability of gun makers is a significant policy consequence, as is the public policy choice of giving away taxpayer money to attract jobs building controversial weapons. Fortunately, there can now be a debate that goes beyond the question of mild measures to ban specific types of weapons, to the economics of the gun industry itself. After all, the council that awarded taxpayer money to gunmaker Smith & Wesson serves "at the pleasure of the Governor." If Massachusetts Governor Deval Patrick wanted to make a statement about gun control that went to the root cause, he could simply ask his council to attach rules on disbursed government funds to restrict them to companies that do not manufacture weapons. And if local and state officials, or think tanks, or concerned citizens, want to make a difference, they can uncover more taxpayer subsidies going to the gun industry.         |
| Japanese Yen ETF Falls To 2-Year Low Posted: 26 Dec 2012 10:33 AM PST By Tom Lydon: With the Liberal Democratic Party returning to power on the platform of aggressive measures to stimulate economic growth, the Japanese yen exchange traded fund has been weakening as currency traders bet on looser monetary policies. CurrencyShares Japanese Yen Trust (FXY) is down more than 7% the past three months and about 9% lower year-to-date. The Japanese yen is trading around 84.84 to the dollar, a 20-month low, after incoming Japanese Prime Minister Shinzo Abe stated he would retract the Bank of Japan's autonomy if it does not boost its inflation target. "The currency's drop has been due to the pressure exerted by Shinzo Abe on the BOJ to increase their monetary activism," Ravi Bharadwaj, a market analyst at Western Union Business Solutions, said in a Bloomberg report. "Increases in quantitative easing or interest rate reducing programs generally weaken a nation's currency via the carry trade." "Abe saying Complete Story » |
| A Look on Gold from the Non-USD Perspective Posted: 26 Dec 2012 10:21 AM PST
Based on the December 21st, 2012 Premium Update. Visit our archives for more gold & silver analysis. This was a week of declines for precious metals, very strong ones, indeed. It seems that the main culprit was not the U.S. dollar, that should have actually helped the whole sector, as it declined heavily too, but the fears concerning the "fiscal cliff", that we discussed some time ago, and the lack of any solutions from the government so far. We believe that as soon as the problem is solved, the whole sector will rally strongly. That is even more likely, as gold and silver are currently extremely oversold, as we'll see in the technical part of this essay. To see the true magnitude of the plunge, and try to guess where we can go from this point, we'll have a look at the yellow metal from the perspective of different currencies. But first things first – we'll start with the usual long-term chart of gold priced in USD (charts courtesy by http://stockcharts.com.) In the chart, we see that prices have moved below the important 300-day moving average (the blue slope in our chart). If prices close the week below this level, which appears likely, then we will have an increased probability of significant declines. If prices do move much lower, it will be a huge buying opportunity and the RSI levels around 40 confirm this. Many times in the past, major bottoms have been seen with the RSI level near 40. Having seen how the situation looks from the U.S. perspective, let us move on to the first chart of gold priced in other currency, namely in the Canadian Dollar. In this chart, we see gold's price has just moved a bit below the long-term resistance line. The move has not yet been confirmed. This type of price move has not been seen since late 2008 but with RSI levels extremely oversold, the bottom seems either to be in already or at least very close. Now, let's have a look at the yellow metal from the perspective of the Australian Dollar. Here, the extremely low values for the RSI are a somewhat bullish sign. This value level has only been seen a few times in past years and each marked a major bottom in gold priced in the Australian dollars. This is a very long-term chart so a few more days of declines will make little difference. It seems that a medium-term bottom is quite close or perhaps already in. To finish off, let's take a peek at gold priced in euro. Once again, extremely oversold RSI levels are present in the chart, as they have moved below 30 and are approaching 20 for this ratio. This has not been seen for many years. Gold priced in euro also moved below its rising support line, but this breakdown has not been confirmed, so little weight is placed on this move. It is a bearish development, however. Before summarizing, here's the question about gold that we received this week along with our reply: This positive correlation with the dollar is beyond strange and highly unnerving. Is this an indication of some fundamental change in gold? It almost seems impossible. Any light you could shed on why gold now tracks the dollar's every move would be greatly appreciated. This seems to negate the purpose we entered the PM market in the first place. We doubt that it's some kind of fundamental change in gold. Why could this be the case fundamentally? Possibly Europeans could be thinking that the worst is over and that the European economy is going to improve in the coming months and are now selling their gold to get back euros. Technically speaking, gold priced in euro is correcting significantly. The most important thing is to check if we have ever seen anything like this during this bull market or if this is something completely new. And this is precisely what we do when looking at the gold:XEU ratio or gold priced in the euro. There have been times when gold declined along with the dollar and this resulted in sharp declines in the ratio and moves lower in the momentum indicators that are based on it, such as the RSI Indicator. The situation is now extreme and history tells us that the relationship is likely to return to normal very soon. Another thing that is somewhat related to gold from the non-USD perspective is the SP Gold Bottom Indicator – especially the long-term version. The moment when the indicator moves below its signal line generally corresponds to extremes in the gold-USD link. The indicator is about to flash a buy signal, but it was not yet the case. The suggestion here is that the simultaneous decline in gold and the dollar might to be over just yet. Summing up, the situation for gold has deteriorated this week. Multiple signals on many charts show the situation to be extremely oversold in the short term, especially from a non-USD perspective. A local bottom is probably close, however, given this week's volatility and the fact that in general oversold assets could become more oversold on a short-term basis before the price trend reverses, we could see additional weakness in the price of gold. Use the following link to sign up for a free, no-obligation trial of our Premium Service and read the complete version of this study that is over 10 times bigger. You'll also receive Market Alerts on a daily basis and when the trial expires, you'll start receiving our free newsletter. Additionally, you will also receive 12 gold best practice emails. Thank you for reading. Przemyslaw Radomski, CFA * * * * * About Sunshine Profits Sunshine Profits enables anyone to forecast market changes with a level of accuracy that was once only available to closed-door institutions. It provides free trial access to its best investment tools (including lists of best gold stocks and best silver stocks), proprietary gold & silver indicators, buy & sell signals, weekly newsletter, and more. Seeing is believing. Disclaimer All essays, research and information found above represent analyses and opinions of Przemyslaw Radomski, CFA and Sunshine Profits' associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Przemyslaw Radomski, CFA and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Radomski is not a Registered Securities Advisor. By reading Przemyslaw Radomski's, CFA reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Przemyslaw Radomski, CFA, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.  |
| Gold And Silver Still Better Off Than Earlier This Year Posted: 26 Dec 2012 10:17 AM PST Even though this summer was a sentiment wasteland for the precious metals markets, right now feels like a close second. After rallying strongly in August and September the metals have declined for almost 3 months now culminating in a recent smash down. And it feels especially worse since the reaction of gold and silver to the open-ended $85 billion per month quantitative easing announcement from Ben Bernanke has been the opposite of what most would expect. Seeing through the negativity though the situation is better off for the metals than it was 6 months ago. During the summer, gold built a multi-month base in the $1500s which further validated that zone as being a massive support zone. Then the surge higher off of that base has created a big positive divergence in momentum that often precedes a major move higher in price. Even if gold were to drop back into the $1500s, the divergence in momentum should still be in place, and technicians will undoubtedly pick up on that fact if a bunch of demand comes rushing back into the gold market. Silver looks similar to gold except the positive divergence in momentum is larger and extends back to the start of 2012. This could be a sign of even more underlying strength in silver than in gold. Notice that just like gold, there's a bunch of hammer candlesticks over the last 2 years once silver breaks below a certain level. This reinforces the supply and demand dynamics at that level (which is about $27.50 on silver) as strong support. Buyers were able to overwhelm sellers repeatedly once those levels were attempted to be breached to the downside for both metals. Back in 2011 I postulated that it would be hard for silver to break $25 since the entry point on that trade would be phenomenal for anyone wanting to enter a long term long position in this ongoing secular bull market. The reason was it took silver almost three years to build a base at the $20 level and then it broke out of that base on huge volume. So the closer silver got to $25 the better the risk/reward of the trade for someone wanting to buy a pullback, and have strong support at $20 for downside risk. Since silver is likely still in a secular bull market that would give the trade 20% or so risk to the downside, which is pretty good considering the upside potential could be much higher. So I assumed that $25 would be a good level of support for silver as it entered a new trading range on the correction from $50. Mining stocks are continuing to demonstrate that they are in the later throes of this ongoing correction in the metals. Back during the summer, almost every mining stock was trading at its lows for the year, or close to them. Now the situation is mixed across the mining space, which indicates some underlying strength. Some mining stocks, such as AEM and FNV, are barely off of recent highs. Others are about at the mid range between their summer low and their September high, such as AUY, HL, and KGC. And some mining stocks have made new lows below their summer lows. Due to more mining stocks holding above their summer lows the GDX to GLD ratio continues to form a Stage 1 base with positive divergence in momentum. And this continues to be significant since major rallies in gold usually are accompanied by outperformance by miners. Looking at the short term picture, the trading on December 20th looked like possibly an important turning point or maybe the beginning of one. It was definitely a throw in the towel day for many metals bulls (possibly a lot of weak hands) as both the GLD and SLV ETFs saw the biggest downside volume they've seen since March. But looking at a daily chart, their emotional distress was causing them to dump their positions right at the upper range of support from the summer. And the miners showed some nice strength last Thursday as almost every mining stock performed better than the metals that day. This often happens towards the bottom of pullbacks in the metals as first the miners get dumped early in the correction, then the metals get dumped and the miners show some divergent strength. The bottom line is there's some short term and long term underlying strength to this recent pullback in the metals. Even if the bears can panic the bulls into selling their positions further into support levels, the bulls still have a positive divergence in momentum that has formed over multiple months and demonstrated long term support at lower levels. It isn't uncommon to see the lower end of a trading range tested one last time before a new rally either. Connect with me on Twitter: @nextbigtrade The original article and much more can be found at: http://www.nextbigtrade.com The views and opinions expressed are for informational purposes only, and should not be considered as investment advice. Please see the disclaimer.   |
| Light at the End of the Tunnel for Gold Posted: 26 Dec 2012 10:16 AM PST Intuition was telling me something was going on these past few days in the gold market. Our investment team was watching gold and gold stocks take a tumble for no obvious reason. It wasn't only us who felt this way: many analysts were caught off-guard  |
| Gold Regains Some Ground, “Good Demand” for Gold from India Posted: 26 Dec 2012 10:13 AM PST ON THE FINAL day before Christmas, gold prices edged higher Monday morning, climbing to $1665 per ounce and recovering some of the ground lost last week. Friday afternoon's London gold fix was $1651.50 an ounce, a 2.6% weekly fall and the biggest weekly drop since June. "[Gold's fall] opens up a move to the next major support, which are the lows in the $1520s," says Friday's technical analysis note from Scotiabank. On the physical bullion market, gold demand from traditional world number one India picked up Monday, dealers reported. "Demand is good," one dealer at a state-run bank in Mumbai told newswire Reuters earlier today. "Buyers are placing orders for limited stocks with banks. They know the supply situation will remain tight for the next few days. Overseas suppliers are going on leave." Silver meantime rallied to $30.39 an ounce before easing slightly, like gold regaining a little of the Stocks and commodities were broadly flat Monday morning, while the Euro gained against the Dollar but remained below last week's seven-month high. In New York, the so-called speculative net long position of gold futures and options traders – the difference between bullish and bearish contracts held – fell to its lowest level since August in the week ended last Tuesday, weekly data published by the Commodity Futures Trading Commission show. Elsewhere in the US, politicians negotiating over how to deal with the government's deficit have left Washington for Christmas without any deal being agreed. The US economy is due to hit the so-called fiscal cliff of around $600 billion of spending cuts and tax cut expiries, starting next Monday, if Congress does not agree new legislation. Here in Europe, current Italian prime minister Mario Monti said Saturday that he will not run in February's parliamentary elections. He added however that he would consider being prime minister if nominated to the post by an elected coalition that would back what he called "the Monti agenda" of economic reforms. "While he may not have thrown his hat into the ring," says Nicholas Spiro, managing director at consultancy Spiro Sovereign Strategy, "Il Professore has become Il Politico whether he likes it or not…[Monti] has made it crystal clear where his political allegiances lie and that he's ready to head Ben Traynor Gold value calculator | Buy gold online at live prices Editor of Gold News, the analysis and investment research site from world-leading gold ownership service BullionVault, Ben Traynor was formerly editor of the Fleet Street Letter, the UK's longest-running investment letter. A Cambridge economics graduate, he is a professional writer and editor with a specialist interest in monetary economics. Ben writes and presents BullionVault's weekly gold market summary on YouTube and can be found on Google+ (c) BullionVault 2012 Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.  |
| Posted: 26 Dec 2012 10:11 AM PST Alas, Christmas has now come and gone for another year. The hustle and bustle of the season begins to wind down, the wrappings, bows and pretty paper now being consigned to the trash bin. Soon the lights will be coming down and the trees discarded for mulch or put back into the basement or attics. The children will be out making merry with their new toys and games. These things seem as constant as the North star for those of us who celebrate this wondrous holiday. Sadly, as constant as the above, so too it seems is the desire of political leaders to debauch or debase their own currencies. Witness the Japanese Yen as it continues to plummet following the path desired by the new political leadership. The point is not being lost on gold as it continues to hover near record highs when priced in terms of that currency.   Incidentally, unleaded gasoline is threatening a breach of overhead resistance at the top of its trading range near the $2.81 level. Distillate strength is keeping a very firm bid in the liquid energy markets despite the continued threat of a so-called 'fiscal cliff' breakdown. Crude oil is flirting with a band of heavy resistance between 90.30 - 90.60. Above that, it can be expected to see strong selling pressure emerging if it approaches the $93 level. Cold weather has given heating oil a boost and it too is up near the top of its trading range. These energy markets are worth keeping an eye on as any bona fide breakout will tend to give gold a boost to the upside as well. Well, at least we got a brief respite from the high gasoline prices. We'll see how long this upside push might last in the liquid energies. Sinking grains today are working to undercut strength in silver which had been following copper to the upside but began wilting as the soybean complex, along with wheat, lead the entire grain complex lower. Silver still likes to see soybeans moving higher as it tends to feed into an inflationary bias. When you get the grains moving higher, along with copper and the other base metals, it is almost impossible to prevent the grey metal from moving higher along with them. |
| Welcome to the Currency War, Part 6: Japan Gets Explicit Posted: 26 Dec 2012 10:01 AM PST Forget about the fiscal cliff. December's big story was the ascension of a new leader in Japan whose platform is aggressive inflation:
Some thoughts There, in a nutshell, is why currency wars happen. Heavily-indebted governments are desperate for tax revenue, and an export sector that can't compete because of a strong currency produces very little taxable profit. But before you write in to say that a strong currency is no barrier to profitable exports for well-run countries, note that "well-run" doesn't apply to today's developed world. Currency wars generally happen when corrupt, over-indebted countries can't cover their interest expense and start looking for a way to shift the burden of their stupidity onto their trading partners. A weaker currency is only a short-term fix, but when an election approaches (and one is always approaching), short-term fixes are good enough. For a sense of the panic that's gripping Japan, consider what's happening to its big electronics exporters like Sony and Sharp: A strong yen isn't the only reason for this implosion, of course. Apple and Google and falling TV prices are the real existential threats. But the Japanese central bank can't kill Apple and Google, while it can weaken the yen. 2013 is shaping up as a pivotal year, not necessarily because inflation is set to accelerate, but because virtually everyone who matters has decided to try, explicitly, to make it accelerate. This might take a while, because the ongoing contraction in Europe and failed US states like California and Illinois is profoundly deflationary. But with a few years' hindsight we might look back on December of 2012 as the beginning of the chaotic, parabolic stage of the process. |
| Eric Sprott: Why are [Smart] Investors Buying 50 Times More Physical Silver than Gold? Posted: 26 Dec 2012 10:00 AM PST Eric Sprott: Why Are Investors Buying 50 Times More Physical Silver Than Gold? The Admiral, Eric Sprott recently put out a piece entitled "Why are investors buying 50 times more physical Silver than Gold?" This is a short and very interesting piece that I'd like to add my 2 cents worth to. My short answer as to "why" is because of the paper markets and how they have priced the two metals. Currently, Gold trades at a 55 to one premium over Silver. Whether there is 16 times more Silver than Gold in the Earth's crust or whether there is 3 times or 10 times as much physical Silver above ground or even deliverable does not matter. It does not matter because the COMEX and LBMA have "priced" Gold at 55 times Silver. So, since 55-1 is the "price," physical investors are "voting" with their purses since they in essence get no vote on the paper markets. In effect the physical buyers are merely "reacting" to the hand that they are being dealt. If you can purchase 55 times more Silver for the same Dollar… well, so be it. Gold and Silver are basically being purchased in equal Dollar amounts which as Mr. Sprott points out so well cannot continue forever because far more Gold (Dollar value) is being produced than Silver yet equal amounts of Dollar value are being purchased. You cannot buy what isn't available even in today's "virtual world." In fact, I am a little surprised that even more Dollars are not going into Silver because it is "affordable." You can purchase more than 5 ounces of Silver with the same cash that gets you a measly 1/10th ounce Gold coin. Hold these two in your hands and see if you don't understand what I am saying here. 55 times more metal in one hand will "feel" more valuable than the other. It's like going to an all you can eat buffet (not to be confused with Buffett) vs. a five star restaurant. The five star restaurant may have exquisite food but the odds are you might still be a little hungry after eating whereas you will feel completely full and satisfied after your second or third trip through the buffet line. Mr. Sprott also points out that Silver trades on the COMEX alone about 300,000,000 ounces PER DAY which is nearly 5 months global mine production. This is beyond ridiculous! 150 "paper ounces" of Silver trades every day on the COMEX alone for every one ounce of real Silver which is produced. This figure does not include the LBMA, ETF's, options or any of the other "convenient" ways to trade Silver. I might add that the COMEX inventory available for delivery is less than 15% of what trades every single day so if you do trade Silver and feel that warm fuzzy holiday feeling that your "long" COMEX position represents actual "Silver," good luck! As I have pointed out before, Bart Chilton of the CFTC can say whatever he pleases but we are now more than 4 years into an investigation that will never, can never and could never ever go anyplace than under the rug. Any common sense finding that Silver is manipulated would then by extension include Gold. Everything on the planet can be manipulated with the EXCEPTION of Gold and Silver! You can say the Dollar is manipulated and "they" will believe you. You can the stock market is manipulated and "they" will believe you. You can say that LIBOR, all interest rates, bonds, economic numbers from unemployment to inflation to GDP are manipulated… that's OK. But God forbid should you say that Gold and Silver are manipulated. Say this and you are a conspiracy nut! You are a crazy with a tin foil hat on! The moral to this story? Gold and Silver "cannot" be manipulated because if they are then the value of all things paper is bogus (which we know they are). You can fool most of the people most of the time but if they find out that there is no Gold or Silver in the "bank" or that their prices are rigged, even the biggest fool on the planet will panic and we can't have that now can we? One last comment, Gold has averaged a 15 time premium over Silver for several thousand years. Even without an "overshoot," Silver should outperform Gold in the future by at LEAST 3 to 1 just to get back to the historical average. Silver is an absolute gift right now and at a deeper discount than anything you'll find on Wall Street or at any "after Christmas sales." You should buy what you can now while product is available because there will be no rain checks when the supply is gone and this is a mathematical surety! Similar Posts: |
| Europe reluctant to use Gold reserves to fight debt crisis Posted: 26 Dec 2012 09:39 AM PST Across Europe, economic growth is faltering and in many Eurozone countries, sovereign debt yields are dangerously high. |
| Key Reit: 10% Dividend Yield With Near-Zero Market Correlation Posted: 26 Dec 2012 09:28 AM PST By Jeffrey Gall: Overview Key Real Estate Investment Trust (SOREF.PK) owns a geographically diversified portfolio of retail properties across Canada with just over 320 million in total gross assets. As of September 30, 2012, Key REIT indirectly owned 231 properties in nine provinces across Canada. Key REIT's properties are well-located and geographically situated across Canada, which reduces its exposure to regional economic conditions that may affect a particular province or area. Properties are occupied by national brands including KFC, Taco Bell, Shoppers Drug Mart, Rexall Pharma Plus, Laurentian Bank, Tim Hortons, Staples, A&W, Starbucks Coffee and Subway. Key REIT provides exposure to the Canadian real estate market and the Canadian dollar. Since the company's inception approximately 7 years ago, Key REIT has paid out $6.00 per share in dividends. It is worth noting that Key REIT's share price is currently trading around $6.30. Including dividends, the total 5-year return for Key Reit Complete Story » |
| Posted: 26 Dec 2012 09:26 AM PST RJ O'brien Senior Commodities Broker Phil Streible was on Bloomberg this morning, and when asked by the host for his #1 commodities pick for 2013, Streible responded: Silver! Streible stated that: The Fed will continue to buy mortgage backed securities and treasuries, causing the Fed's balance sheet to expand from $2.9 Trillion to $4 Trillion [...] |
| Kyle Bass at AmeriCatalyst 2012 Posted: 26 Dec 2012 08:19 AM PST Spend some quality time with Kyle Bass at the AmeriCatalyst 2012 Conference in Austin, Texas this past October. "The Engtanglement." More... He is introduced on stage very quickly by AmeriCatalyst founder and CEO Toni Moss, the host of the show and architect of its program." This is not a presentation one should view while multi-tasking. It is worthy of full attention and sharing. (Embedding apparently turned off for this video. Use the link below.)
(Thanks to Ed Steer for the link.) |
| China's SGE to raise Gold margins to 13% Posted: 26 Dec 2012 07:36 AM PST The exchange will raise margins on gold contracts, including the gold spot deferred contract, to 13 percent from 12 percent from the settlement of Dec. 28. |
| Shanghai Gold Exchange Hikes Gold Margins to 13% Posted: 26 Dec 2012 07:30 AM PST And so it begins. Those who followed precious metals in 2011 will recall this game plan all too well: Smash gold and silver prices using unprecedented amounts of naked paper shorts, then announce massive margin hikes (due to increased volatility) to force capitulation among any longs holding out. After large take-downs in gold and silver [...] |
| Fascinating Tour of the International Space Station Posted: 26 Dec 2012 07:18 AM PST Take a tour of the International Space Station hosted by Captain Sunita (Sonny) Williams just prior to her return to Earth in the video linked below. We get a taste of what it is to live and work in near Zero G. Captain Williams safely landed in Kazakhstan November 18, 2012 following a 127-day tour and command of the ISS. It was her second stay on the orbiting craft. Video at the link below. Enjoy. Source: NASA via Wimp.com |
| Gold sales drop by 50% in Saudi Arabia Posted: 26 Dec 2012 07:13 AM PST More than 750 gold shops were closed in the Kingdom till December this year due to the losses attributed to a sharp rise in the international prices of the precious metal. |
| Posted: 26 Dec 2012 07:10 AM PST By Jim Willie, GoldenJackass.com The global financial crisis is better described as a global monetary war to defend the toxic USDollar, whose sunset can be seen.In the last 12 to 18 months, the monetary war has again morphed, this time into a far more serious and financially violent global Gold War. Nations are fast realizing [...] |
| Gold & Silver Pop on COMEX Open, Silver Regains $30 Handle Posted: 26 Dec 2012 06:42 AM PST Gold and silver have popped higher in thin trading on Wednesday's COMEX open, with silver trading back above $30 to $30.30, and gold moving off $1650 to $1669. 2013 Silver Eagles As Low as $2.59 Over Spot at SDBullion! Silver has cleared $30 to the upside after consolidating near $29.90 overnight in Asian [...] |
| Why Smart Investors Buy 50 Times More Silver Posted: 26 Dec 2012 06:29 AM PST How long can investors continue to buy silver at the current ratios when the availability for investment is only 3:1? We are surprised that the price of silver has remained at such a depressed level compared to gold.  |
| When All Else Is Failing, Slam Precious Metals Prices Posted: 26 Dec 2012 06:14 AM PST Andy Hoffman was back for a pre-Christmas rant on Monday. He has no fear about where the metals prices are headed. He's taken as much money out of the banking system as possible and is always seeking ways to further minimize his participation. Eventually, we'll all reach a point where it's just not practical to reduce our paper holdings any further. And that time is probably not too far off into the future. We're getting to the point where controlling the precious metals prices will just not be possible or desirable. Especially, when famed silver trader Andrew Maguire says that premiums between the paper and physical markets are going way up. Andy Hoffman joins Kerry Lutz of the Financial Survival Network to discuss this year end action in precious metals: When All Else Is Failing, Slam Precious Metals Prices Similar Posts:
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| Dubai Gold price declines as Yuletide cheer skips investors Posted: 26 Dec 2012 05:03 AM PST Spot gold price fell about $13 an ounce to a low of around $1,647/oz as lean markets saw the precious metal fall below $1,650 once again on Tuesday. |
| Bullion Regains Ground, 'Good Demand' from India Posted: 26 Dec 2012 04:49 AM PST On the final day before Christmas, gold prices edged higher, climbing to $1,665 per ounce and recovering some of the ground lost last week. Friday afternoon's London gold fix was a 2.6% weekly fall and the biggest weekly drop since June.  |
| Russia's Kyuchus holds 177.50 tons of Gold, 26.9 tons of Silver Posted: 26 Dec 2012 04:28 AM PST The Federal Agency for Mineral Resources will hold an auction in February 2013.Participation of foreign investors is not restricted. |
| Silver top commodity pick for 2013 Posted: 26 Dec 2012 04:26 AM PST RJ O'Brien & Associates Senior Commodity Broker Phil Streible picks Silver to be the best performer in 2013 |
| Suriname to attract $2.5 billlion Gold investments Posted: 26 Dec 2012 04:25 AM PST Analysts said American multinational is expected to invest $1.2 billion in the Merian area in eastern Suriname, while IamGold is expected to commit about $1.5 billion in Brokopondo. |
| Gold & Silver Still Better Off Than Earlier This Year Posted: 26 Dec 2012 04:05 AM PST Even if the bears can panic the bulls into selling their positions further into support levels, the bulls still have a positive divergence in momentum that has formed over multiple months and demonstrated long term support at lower levels.  |
| Gold falls in thin Boxing Day trade Posted: 26 Dec 2012 03:48 AM PST Analysts said investors remained focus on US fiscal crisis as uncertainty over whether the world's largest economy would be able to avoid a fiscal crisis kept investors at bay. |
| Precious Metals Decouple from Stock Market Posted: 26 Dec 2012 02:30 AM PST This decoupling began at the end of July 2011. Since GDX peaked, it is down 32% while the S&P 500 is up 25%. Silver is also down 32% and gold is down 14%. The S&P is closing in a five-year high while GDX is soon to retest a multi-year low....  |
| Gold in Doesn't-Beat-Stocks Shocker! Posted: 26 Dec 2012 01:21 AM PST So the world didn't end on the shortest day of 2012, as forecast by no-one beyond lazy journalists and internet frauds. But the long bull market gold has choked its last. Or so some soothsayers claim.  |
| Boston Consulting Group comes to Armageddon conclusion about a coming global economic reset Posted: 26 Dec 2012 01:16 AM PST If you accept that there are no quick fixes that last forever then you That is the conclusion being pedaled by the eminent Boston Consulting Being realists These are hardly flat-earth, conspiracy theorists. BCG has most of the - The global debts are now insoluble and unworkable. Therefore you - The state should be downsized and immigration encouraged. The - Where governments should act is in spending on infrastructure, not However, coming off a drug as powerful as leveraged finance is never No solution The BCG report does not really offer much help either. It has Laws of economics are absolute and so nothing can be done to prevent It's tempting to say run out and buy as much as you can on credit and Actually you want to be debt-free in case interest rates sky rocket. Otherwise it is hard to see much good coming out of this reset for Banker hell Banks and financial institutions will go to hell and will never be the same again. After all the holders of debts will suffer the most in a world However, such crises are hardly unknown in financial systems, usually after wars have bankrupted nations. The Bretton Woods agreement settled things post World War II and started an era of unprecedented growth. In that case bring on the reset… |
| The Reserve Bank of Australia Explained Posted: 26 Dec 2012 01:07 AM PST Thanks to Bruce for the link to the following video. The parody of the RBA's gold holdings is very topical in light of their recent admission that the RBA keeps 99.9% of our their gold reserves in the Bank of … Continue reading |
| Why silver is still the top commodity tip again for 2013 Posted: 25 Dec 2012 08:19 PM PST RJ O'Brien & Associates Senior Commodity Broker Phil Streible tells Bloomberg Television why he thinks silver will be the number one commodity pick for 2013. He sees an imminent short coverting rally and then prices will explode… ArabianMoney thought this was going to happen a year ago and we are still waiting. Perhaps 2013 is the year, nothing much has changed for silver… |
| Buying Silver Other Than Coins Posted: 25 Dec 2012 05:05 PM PST Question for the more experienced metals people -- if you went by a garage/estate sale or found a Craigslist listing for silver silverware or an antique or jewelry, how would you value how much actual silver is in the item in order to make an appropriate offer and what would you consider to be a top offering price relative to the spot price assuming the item's destiny was to be melted? bb |
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