Gold World News Flash |
- How Can We Reconcile Freedom-Loving Libertarianism with Tough Prosecution of Fraud?
- US economy policy talks – Are they actually helping in reality?
- An Indispensable Guide for Financially Stressed Families
- The Big Picture behind Germany Taking Half of Its Gold Home
- Get far away from USA…its collapse will be messy – Jeff Berwick
- It's All in the Flows
- Andy Hoffman- The Apple Bubble – YouTube
- Oil Set To Super-Spike 63%, Crushing Global Stock Markets
- Chris Powell in Vancouver
- Visualizing Platinum & Palladium's Place In The World
- What the Japanese Trade Deficit Says About the Fraying Fabric In China And Europe
- Again it's taken for granted that there's no questioning central banks about gold
- Defend Yourself By Not Giving In
- Good News Apple Bulls: Today's $60 Billion Market Cap Loss Is Not The Biggest One Day Drop In History
- Yen, Apple, Netflix and VIX
- Davos ~ What Worries Keep Davos Billionaires Up at Night? – YouTube
- GATA's presentation, interviews at Vancouver conference posted at YouTube
- Silver wedge formation – YouTube
- Commodity Technical Analysis: Gold Has Retraced Entire 1/17 Move
- Hamptons Prices Soar To Record As Lloyd Blankfein Parks $33 Million In 8,000 Square Foot Mansion
- Get Your Propertty Off of the Tax Roll 2.0 – Wednesday on the Bo & Rocko Show – YouTube
- Truth About Money, Prosperity, Freedom: Today's Top 10 News Stories
- Separating the Gold Mining Haves from the Have-Nots: Paolo Lostritto
- G. Edward Griffin – The Collectivist Conspiracy – YouTube
- The Silver and Gold Price Corrected Today with Gold Closing Down $16.80 at $1,669.50
- Gold Bulls Shouldn?t Buy Gold Stocks!
- Silver Predictions …$250, $350, $450 Coming Economic Collapse – YouTube
- Gordon Kerr: ‘I was on the grassy knoll’ – YouTube
- The Fiscal Cliff Was A Wasted Opportunity
- Gold Seeker Closing Report: Gold and Silver Fall About 1% and 2%
- Gold Daily and Silver Weekly Charts - Upping the Chances for Inflation
- Bitcoin Bytes Back
- Gold Shoved Back Down
- AMEX Gold BUGS Index
- Uranium and Rare Earths Should Rebound On China Rally
- This Is Why Big Money Keeps Buying Gold & Silver Smashes
| How Can We Reconcile Freedom-Loving Libertarianism with Tough Prosecution of Fraud? Posted: 25 Jan 2013 12:27 AM PST Liberty and Justice Are Not IrreconcilableI voted for Gary Johnson (and am a huge fan of Ron Paul), and respect and fully-support the libertarian passions for freedom and free markets. But I am also a tireless crusader for enforcing the rule of law. You might assume that these are opposite philosophies. For example, a reader asks:
Nuclear Power Would Not Exist In a Free MarketInitially, it is undisputed that nuclear power plants would not exist if operators had to obtain funding and insurance through the free market. Private insurers won’t touch nuclear energy. Investors run the other way, because the odds of losing all of their investment are so high. No private company in the world would operate a nuclear plant unless the government put a very low cap on liability. In many parts of the world, governments cap liability at a mere $13 billion dollars. This is a little insane, given that “the risk of a nuclear catastrophe … could total trillions of dollars and even bankrupt a country”.
AP notes:
U.S. News and World Report reports:
In other words, this is not a free market. Instead, the public has funded the nuclear industry. As such, we - the owners - should get some control over how nuclear plants operate. Likewise, the government created the mega-banks, big oil and the other mega-corporations. Free Market Champions Demand Prosecution of FraudA strong rule of law is the main determinant of prosperity. On the other hand, failure to prosecute fraud is destroying our prosperity. Nuclear meltdowns, the financial crisis and the Gulf oil spill all happened for the same reason: fraud to make a few more pennies, and a subsequent cover-up to try to protect the wrongdoers and continue "business as usual". And see this. This is not free market economics. Indeed, the father of free market economics - Adam Smith - leading Austrian economists, and other free market advocates are for the prosecution of fraud:
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| US economy policy talks – Are they actually helping in reality? Posted: 24 Jan 2013 11:57 PM PST Check our website daily at... [[ This is a content summary only. Visit http://www.figanews.com for full Content ]]  |
| An Indispensable Guide for Financially Stressed Families Posted: 24 Jan 2013 11:49 PM PST Check our website daily at... [[ This is a content summary only. Visit http://www.figanews.com for full Content ]]  |
| The Big Picture behind Germany Taking Half of Its Gold Home Posted: 24 Jan 2013 11:30 PM PST by Julian D. W. Phillips, Gold Seek:
The Bundesbank, the central bank of Germany is to store half of its gold reserves in its own vaults in Frankfurt. It is planning a phased relocation of 300 tonnes of gold to Frankfurt from New York and 374 tonnes to Frankfurt from Paris by 2020. In doing so, the Bundesbank will have 50% of its gold reserves in Frankfurt, 37% in New York and 13% in London. |
| Get far away from USA…its collapse will be messy – Jeff Berwick Posted: 24 Jan 2013 10:45 PM PST from TheDollarVigilante:
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| Posted: 24 Jan 2013 10:30 PM PST by Frederick J Sheehan, Financial Sense:
This approach to central banking has not changed. All of the major central banks use the same framework. The media and Wall Street spend most of their time interpreting the meaning of central-bank talk. Central banks will never mention a growing concern about loan defaults since the academics can always thwart potential catastrophes by modeling preventive flows (e.g., liquidity). The catastrophic financial failure that most of us endured in 2007 and 2008 was not a failure at all, according to central bankers. Their models still conclude there is always a central-banking solution that will prevent any catastrophe. In conclusion: when the current financial bubble topples, there will no forewarning from central bankers, the media, or Wall Street. |
| Andy Hoffman- The Apple Bubble – YouTube Posted: 24 Jan 2013 10:15 PM PST Check our website daily at... [[ This is a content summary only. Visit http://www.figanews.com for full Content ]]  |
| Oil Set To Super-Spike 63%, Crushing Global Stock Markets Posted: 24 Jan 2013 10:01 PM PST  With continued volatility in gold and silver, top Citi analyst Tom Fitzpatrick believes that crude oil is now set up to surge as much as a staggering 63% in 2013. This would crush global stock markets, sending the wildly enthusiastic bulls reeling. Fitzpatrick provided King World News with 7 powerful charts to illustrate the danger this situation poses to the bulls. Fitzpatrick has been incredibly accurate regarding his forecasts so KWN takes his warning very seriously.This posting includes an audio/video/photo media file: Download Now |
| Posted: 24 Jan 2013 09:46 PM PST Our good friend Chris Powell of the Gold Anti-trust Action Committee (GATA) was interviewed last weekend at the Cambridge House Vancouver Resource Investment Conference by Bridgitte Anderson. Powell contends that if people realized how "overcommitted" actual remaining physical gold is, the price would move much higher. We deem the interview worthy of sharing. (Video below.)
Powell says that the central banks used to manage the gold price in the open before the London Gold Pool collapse in the 1960s. He points out a secret IMF document that says the central banks refused to release information about their gold swaps and loans because doing so would destabilize or impair the western central bank secret currency intervention efforts – because they are using swaps and loans of gold in market rigging. "They (the current administration) are very politically incorrect, because once you start asking these questions, Bridgitte, you discover that the level of intervention by western central banks in the markets is far more extensive than people think. I said in our conference in Washington four years ago that there really are no markets anymore, there are only central bank interventions," Powell said. "There are a lot of fine companies at this conference here," Powell continued, "and I think a lot of them have pretty good prospects – in a free market situation. But when central banks are rigging most markets – they are rigging the currency markets, the bond markets, the gold market particularly – because the gold market is the determiner of all the other markets – we are not trading on fundamentals. We are trading on the anticipation of central bank action." Anderson takes mild offense at Powell's suggestion that main stream media is constrained by government. See how that exchange develops in the video above. Source: Cambridge House via YouTube https://www.youtube.com/watch?feature=player_detailpage&v=yt8VJHmsG50 |
| Visualizing Platinum & Palladium's Place In The World Posted: 24 Jan 2013 08:45 PM PST The platinum group of metals (PGMs) have received some perhaps unwarranted attention in recent weeks as the 'coin' idiocy came and went; but, it is noteworthy, as Eric Sprott points out that with demand rising and supply under pressure, the outlook for investment in physical platinum and palladium is increasingly compelling. The following infographic (and various supply and demand dynamics) provides a succinct picture of what these metals are used for, where they are produced, and the supply/demand imbalances.
Source: Sprott Physical Bullion Trusts Reasons To Own Platinum and PalladiumSUPPLY1. PGMs have a high supply risk.In the British Geological Survey's Risk List 2012, the platinum group of metals (PGMs), of which platinum and palladium are widely viewed as the most significant, received a high supply risk index based on the list's seven criteria: scarcity in the Earth's crust; production concentration-location of principal producers and contribution to global supply; reserve distribution-global distribution of reserves; recycling rate; substitutability; governance (top producing nation); and governance (top reserve-hosting nation). 2. Overall global supplies of platinum and palladium are expected to decrease substantially in 2012, resulting in supply deficits.A substantial reduction in primary and secondary supply is expected to move the platinum and palladium market from surplus to deficit in 2012, according to the Johnson Matthey Platinum 2012 Interim Review. Gross demand for platinum is predicted to remain firm, however, severe disruptions to platinum mining are expected to result in a 10% drop in global mine production of platinum. The report also estimates an 11% decline in supplies from recycling. Together, these factors are expected to result in an overall 10% decline in worldwide platinum supplies and a deficit of 400,000 oz. Gross demand for palladium is predicted to increase 15%. However, both mine production and recycling are expected to contract by 4% each, and stock sales by more than two thirds, resulting in a deficit of 915,000 oz. 3. Production is highly concentrated in only two countriesUnlike many other metals that are found in numerous regions, the majority of platinum and palladium production is concentrated in South Africa and Russia, which combined to account for 88% of platinum production and 80% of palladium production in 2011. 4. Widespread labour disruption, mine closures and other issues are negatively impacting the supply of platinum and palladium from South Africa, which produced more than half of the supply of the metals in 2011.Platinum supplies from South Africa, which accounted for 75% of global production in 2011, are projected to fall to an 11-year low in 2012, declining 19% from the peak in 2006. The country is also the second largest producer of palladium but supplies of this metal are projected to drop more than 6% in 2012. A myriad of issues in the country are lowering cash profit margins and resulting in less supply of the metals, including labour disputes, closure of marginal operations, declining ore grades, , and progressively lower depths required for mining operations in some locations. Additionally, the availability and cost of electrical power continues to be precarious and the uncertain political environment, including increased rhetoric and political pressure regarding possible nationalization and/or ''super'' taxation, could reduce the ability and willingness of industry participants to make the necessary investments to sustain current supply. 5. Dwindling stockpiles of palladium in Russia are nearing depletion and may not be able to offset declines in mine production.Russia is the largest source of palladium, through both mining and state sales of stockpiles. However, the supply of the metal from existing stockpiles is projected to drop 68% in 2012 and is expected to account for just 3% of global supply. Additionally, mining supply is projected to drop by approximately 4% in 2012 and active mines in the Norilsk region of Russia are showing declining grades of ore extracted, which suggest that production levels at these mines may have peaked.. 6. Alternative sources of new supply for platinum and palladium are not readily available.North America accounted for just over 5% and 13% of global mine production of platinum and palladium, respectively, in 2011. However, production of both metals in the region is projected to decline slightly in 2012. The only region expected to increase platinum and palladium production in 2012 is Zimbabwe, though it remains a relatively small producer of the metals. However, increasing political tensions and threats over security of tenure in the country has deterred new investment. 7. The majority of platinum and palladium producers are operating at a loss.The cash costs and capital expenditures required to mine a 3E PGM oz (~60% platinum, ~30% palladium, and ~10% rhodium) have risen to a level such that most mine production is already cash flow negative. Only five companies are slightly cash margin positive after accounting for capital expenditures. A 15-year trend of declining ore grades and anticipated labour settlements with increased wages are expected to further increase cost and stress balance sheets for these producers. DEMAND8. There are diverse sources of demand for platinum and palladium.More than a quarter of the demand for platinum and palladium is from non-autocatalyst industrial uses. For platinum, sectors utilizing the metal include petroleum refining, electrical, glass manufacturing, medical, biomedical and dental, and other manufacturing such as turbines. For palladium, demand comes from the electronics (as resistors and capacitors in circuit boards), dental and chemical industries. The metals are also used in jewelry, particularly platinum which is sought after for its rarity, silvery-white lustre and resistance to wear and tarnish. 9. More stringent vehicle emission standards continue to drive demand growth for platinum/palladium in autocatalysts.Due to their powerful catalytic properties, platinum and palladium are essential components in catalytic converters in automobiles as they form the surface catalyst upon which the critical chemical reaction converting engine exhaust emissions into neutral compounds occurs, resulting in the reduction of the toxic components from combustion. There is no widely used substitute for the metals in autocatalysts and emission standards are becoming increasingly stringent across Asia increasing platinum/palladium loadings per vehicle. Demand for palladium in autocatalysts is expected to grow by 7% to an all-time high of 6.5 million oz in 2012, resulting in a combined 5% increase in autocatalyst demand for the two metals to 9.6 million ounces. For 2013, automotive demand for palladium is anticipated to grow by 24% and for platinum by 13%. 10. China is an increasingly important demand driver for both platinum and palladium.China recently surpassed the U.S. to become the largest auto maker globally and auto sales are projected to grow at 5% per annum over the next three years, according to IHS Global. Palladium loadings per gasoline powered vehicle produced in China have approximately tripled over the past decade and in 2010, China adopted the Euro IV emission standard, which is expected to materially increase the PGM loadings in Chinese-produced vehicles. The country's demand for platinum in jewelry, particularly among the younger generation, comprised close to 70% of the global share in 2011 and is growing. From 2006 to 2011, platinum purchases doubled on the Shanghai Exchange. 11. Strong long-term annualized returns and uncertainty about the global financial system has the potential to take more supply of platinum and palladium off the market.The returns on both platinum and palladium outpaced the S&P 500 Total Return Index in the ten years leading up to November 21, 2012, according to Bloomberg. The Manager of the Trust believes investor demand, through ETFs and funds acquiring the physical bullion, may increase as investors seek to protect their portfolios from inflation, deflation, economic slowdown and currency devaluation. |
| What the Japanese Trade Deficit Says About the Fraying Fabric In China And Europe Posted: 24 Jan 2013 07:18 PM PST Wolf Richter www.testosteronepit.com www.amazon.com/author/wolfrichter European talking heads have been reassuring us on an hourly basis, lest we forget, that the worst of the debt crisis is over. But the Japanese trade deficit, a measure of reality, not words, tells a different story about the crisis in Europe. And about troubles coming to a boil in China. But neither issue can be resolved by Prime Minister Shinzo Abe’s plan to decapitate the yen. Trade deficits aren’t the end of the world for Japan. But they’re the end of an era. Since the mid-1980s, Japan has booked large annual trade surpluses, to the total and ineffectual aggravation of US presidents and lawmakers. The surpluses helped fund Japan’s budget deficits without having to rely on foreign investors. Now, these deficits have become a mountain of debt over twice the size of GDP, unequalled in the developed world. But in 2011, that seemingly endless string of surpluses, on which the Japanese economy had become dependent, broke. Instead there was a deficit of ¥2.56 trillion, small by US standards. It was ascribed to the earthquake and tsunami, fuel imports, etc. A temporary blip. In 2012, the monthly trade deficits got worse, and over the last six months, they occurred in an uninterrupted sequence to reach ¥6.93 trillion ($78 billion), almost tripling from 2011. An all-time record. Yet, even during the campaign late last year, Shinzo Abe, now prime minister, vowed to toss all fiscal restraints overboard and pile even more deficit spending on that mountain of debt that had been funded by the now evaporated trade surpluses. So the cabinet just approved another round of stimulus spending, $117 billion, the largest since the financial crisis. It will be up to the Bank of Japan to print enough yen and mop up the red ink. It’s Abe’s effort to goose the economy, or at least remain prime minister for longer than 15 months, which was the limit for his hapless six predecessors, including himself, ever since Junichiro Koizumi vacated the post in 2006 (graph). And it’s causing a ruckus around the world. Politicians and lobbyists are accusing Japan of yen manipulation and of starting the next round in the currency wars, forgetting conveniently that it was the Fed that has been trying with all its might and for years to demolish the dollar, and is still doing so by printing $85 billion a month [The Currency Wars: Now US Automakers Are Squealing]. But Abe’s gyrations had no impact on the trade deficit in December. At ¥641.5 billion, it was once again worse “than expected.” Exports deteriorated 5.8% from December 2011, imports rose 1.9%. Of Japan’s three largest export markets—China, the US, and Europe—two had turned into a veritable trade catastrophe. China had overtaken the US as Japan’s largest export market. And Japanese companies were brimming with optimism. Then the Senkaku Islands “dispute” erupted—in quotes because Japan insists that there is no “dispute,” the islands being Japanese. It didn’t take the Chinese government long to rile up its people against everything Japanese. And the images floating around the world were ugly. At first, it appeared to be a spat that, like others, would be, after sufficient commotion, put back in the dirty-underwear drawer, unresolved, but out of sight. Instead, jets were scrambled by the Japanese to counter jets approaching the islands from China, and ships were involved, and perhaps shots might be fired. Rather than a spat, it has become an element of China’s growing territorial assertiveness. Japan, which spends only about 1% of GDP on its military, can’t rattle its saber loud enough for China to notice. Instead, it has to rely on the resolve of its ally, the US, to keep the Chinese at bay. A resolve that China is testing. While a shooting war is somewhere between unlikely and unthinkable, given the economic ties between the three countries, tensions are rising, and tempers aren’t settling down, and Japanese exports to China are crashing. In November they were down 14.5%; in December, 15.8% to ¥906 billion. Worst hit were cars, trucks, and parts (-47.5%), machinery (-22.2%), and electrical machinery, which includes tech products like semiconductors (-16.8%). Imports from China edged down by 2.1% to ¥1.24 trillion. And the trade deficit jumped by 76.8%. This debacle is unrelated to the strength of the yen. It’s caused by the deteriorating relationship between two of the world’s largest trading partners. Knocking the yen off its lofty perch—it’s down 11% against the dollar and 15% against the euro since November—won’t have much impact. In that respect, Abe’s cure won’t work. Then there’s Europe. In December, exports skidded by 12.3% to ¥561 billion, after having plunged 20% in November. To Germany, which now may be in a recession, they declined by 9.2%, to the UK by 10.2%, to France by 16.8%, to Spain by 26.2%, and to Italy by 28.2%. These are crisis numbers, a function not of a strong yen but of the European economies that, despite ceaseless declarations to the contrary, have stepped up from a debt crisis to a full-blown economic crisis. And in this environment, Abe’s cure—demolishing the yen—will largely be ineffective. And here is an awesome, amazing, and powerful appeal (video with lyrical English text) to the people of Japan to open their eyes. It slams the nuclear industry, the mainstream media, government bureaucrats, and politicians of all stripes.... humanERROR by “Frying Dutchman” (video). |
| Again it's taken for granted that there's no questioning central banks about gold Posted: 24 Jan 2013 07:01 PM PST 9p ET Thursday, January 24, 2013 Dear Friend of GATA and Gold: Analyzing tonight at GoldSeek the Bundesbank's attempt to repatriate some of Germany's gold reserves from the Federal Reserve Bank of New York, Gold Forecaster editor Julian D.W. Phillips joins those wondering whether the gold is really available or has been leased on terms preventing its recovery for years: http://news.goldseek.com/GoldForecaster/1359061200.php While serious followers of the gold market may be grateful to Phillips for at least acknowledging the possibility that the German gold has been impaired, it is discouraging that still another newsletter editor declines to try to put his own questions about gold directly to the central banks involved. The gold price suppression scheme is lying around in the open in a dozen places, requiring only a few pointed questions to be exposed and understood -- and counting most on never being questioned. Mainstream financial news organizations certainly won't do it, lest they jeopardize their central bank news sources and their invitations to central bank Christmas parties. So if even gold market newsletter editors won't press the questions, who will? Why is financial journalism never more than idle speculation about central bank policies and practices? This isn't journalism at all. It's cowardice. CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Opinion Around the World Is Changing When Deutschebank calls gold "good money" and paper "bad money". ... http://www.gata.org/node/11765 When the president of the German central bank, the Bundesbank, pays tribute to gold as "a timeless classic". ... http://www.forbes.com/sites/ralphbenko/2012/09/24/signs-of-the-gold-stan... When a leading member of the policy committee of the People's Bank of China calls the gold standard "an excellent monetary system". ... http://www.forbes.com/sites/ralphbenko/2012/10/01/signs-of-the-gold-stan... When a CNN reporter writes in The China Post that the "gold commission" plank in the 2012 Republican platform will "reverberate around the world". ... http://www.thegoldstandardnow.org/key-blogs/1563-china-post-the-gop-gold... When the Subcommittee on Domestic Monetary Policy of the U.S. House of Representatives twice called on economist, historian, and gold standard advocate Lewis E. Lehrman to testify. ... World opinion is changing in favor of gold. How can you learn why and what it will mean to you? Read the newly updated and expanded edition of Lehrman's book, "The True Gold Standard." Financial journalist James Grant says of "The True Gold Standard": "If you have ever wondered how the world can get from here to there -- from the chaos of depreciating paper to a convertible currency worthy of our children and our grandchildren -- wonder no more. The answer, brilliantly expounded, is between these covers. America has long needed a modern Alexander Hamilton. In Lewis E. Lehrman she has finally found him." To buy a copy of "The True Gold Standard," please visit: http://www.thegoldstandardnow.com/publications/the-true-gold-standard Join GATA here: California Resource Investment Conference * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Fred Goldstein and Tim Murphy open All Pro Gold Longtime GATA supporters Fred Goldstein and Tim Murphy have brought their many years of experience in the precious metals and numismatic coins to All Pro Gold as metals brokers who specialize in the delivery of gold and silver bullion bars and coins as well as numismatic gold and silver coins. Fred and Tim follow these markets closely and are assisted by a team of consultants in monitoring market trends. All Pro Gold offers GATA supporters competitive pricing on all bullion products and welcomes inquiries. Tim can be reached at 602-299-2585 and Tim@allprogold.com, Fred at 602-799-8378 and Fred@allprogold.com. Ask about their ratio strategy and the relationship of generic $20 dollar gold pieces to 1-ounce gold bullion coins. Visit their Internet site at http://www.allprogold.com/. |
| Defend Yourself By Not Giving In Posted: 24 Jan 2013 06:34 PM PST My Dear Friends, Please do not fall for this classic manipulation. Please do not make the gold banks happy by giving away your physical. Please do not throw away gold shares because the hedge fund have worked black PR so well that they even have convinced some well known community physical gold merchants of Continue reading Defend Yourself By Not Giving In |
| Posted: 24 Jan 2013 06:13 PM PST Apple lost a remarkable $59.63bn in market cap today sending even the most ardent of bullish sell-side analysts scrambling for cover. However, there is a silver-lining, this is not (as many expected) the greatest market cap loss ever in history in one day for any company - it is in fact 3rd!! The holder of the Number 1 and Number 2 spot is none other than AAPL's awful analog - Microsoft (which is itself having a tough night). MSFT lost an enormous $77.18bn on 04/03/2000 and then 3 weeks later followed it up with another epic $61.81bn drop on 04/24/2000. As AAPL drops perilously close to losing the top spot of global market caps to XOM, we note that even that prestigious name had a 'moment' when it lost $52.5bn in a single-day on 10/15/2008. So, good news all around then. Will Apple ever see those loft heights again?
Exxon Mobil is still struggling to regain the levels it was trading at before the big loss...
Microsoft never regained the levels it was trading at before these epic losses...
It was a mere 5 months ago (3 weeks before the top) that we warned of AAPL's human-nature-based exuberance and its similarities to MSFT... the MSFT to AAPL analog continues to play out... more of a drop to come, a bounce then the real plunge to $300?
Charts: Bloomberg |
| Posted: 24 Jan 2013 06:08 PM PST
By EconMatters
Pullbacks Are Nice Let`s start with the Yen Carry trade, where do you think the juice came from for that S&P ride above 1500? Gee, somebody was sure waiting for a pullback to get in on that trade. Frankly, it was a rather tepid reaction to the major disappointment by the BOJ, but traders really want to move assets up, and the Yen is their best friend.
Ergo, the next level to watch is 95 in the cross, once the Yen breaks above 91 with strength. We haven`t had a legitimate selloff yet, so let us see how this cross reacts at the first sign of selling in the market. A lot of stops could get hit on the unwind of this trade on any major market sell-off of 4 days in length with a couple of 100 point Dow down days thrown in the mix.
Further Reading - Gold Market Dip Buying Strategy
Volatility Bounced Off The Bottom This brings me to Vol, which was bought up prior to the European close mid-day selloff, watch for Thursdays, after a nice morning ramp up in assets, always be wary of the 10:30 CST, market sell-off. Traders were buying Vol discreetly on the run-up to 1500 in the S&P, and then it was on, on the equities selloff to support levels, some shorts covered the 4-week downslide in the Vol trade, and this caused quite a nice move in the Vix off the bottom.
The Vix is really going to pop at the first Risk off event of 2013 as there are so many traders short Vol right now.
We ended back near the lows as the "Mid-Day V-Trade" in markets nearly completed with equities finishing with a higher close. Have to keep the trend alive for the close!
Further Reading - Seaway Pipeline No Panacea for Cushing's Oil Glut Netflix & Ouch! This brings me to Netflix, which had a 40% plus pop today, yes you read that correctly. I didn`t check what the options were pricing in, but rest assured it wasn`t for a 40% earning`s move! There is no question with the skepticism over Netflix`s financial balance sheet, that with a substantial short interest in the stock, that a lot of shorts got squeezed today.
I haven`t seen this with a big, well-known name in a while. I imagine some hedge funds had significant losses today. Just ouch! Not Porsche-VW ouch, but still that had to hurt!
I subscribe to Netflix, but their content sucks. It is just that other outlets like television and basic cable programing sucks more! What has happened to quality programming these days?
It is too early to tell what would be a good level to short Netflix if at all, but definitely something to keep on the ole radar. Anything that can move 40% in a day can`t be all bad!
Further Reading - Netflix & SEC: Not a Fascinating Social Media Story At All
Apple – No Bottom Pickers Yet Speaking of bad, we come to Apple, which had a 13% correction today on an up market. You never can tell with markets, when I went to bed last night I was half expecting a significant rebound in pre-market with some "Re-Analysis of Earnings". Hey, if Amazon can do it, why not Apple?
It obviously wasn`t in the cards, and it is obvious that those who count are making quite the fortune on this slide in Apple. As nothing on Wall Street moves unless somebody is usually positioned ahead of time, and wants the asset to move! I have seen earning`s misses, and a stock barely budges.
I might add, that was interesting price action right at the Earning's release with a great head fake to the $527 area before the takedown to support at $483, and the guidance issues doing the rest of the damage.
Further Reading - Amazon vs. Wal-Mart: Let The Battle Begin
For a trade where is the next level of support? The $420 level has been thrown around, but who knows as today was an up market! I guess just watch how things shake out and go from there, as apple will bounce at some point on a short covering rally.
Another question, are all the forced liquidations over? Maybe at this level, but if Apple takes the next leg down it could get ugly. This is where longs might want to look for a trade, after a nasty capitulation, forced liquidation selloff. The point where longs cry uncle, and apple is too cheap to go that low, and viola, their pain can provide for a nice short-term Long entry.
The Trend Still Intact All in all the market took apple`s takedown rather well, which is probably bullish! But sometimes at first, markets just quietly put in lower highs, and lower lows, and then boom, the selloff happens! As of now the trend is still intact, and equities will try to close the week out higher.
It should be a rather slow day in markets as the econ data is relatively light, and nobody is really interested in selling the market at this point. I wouldn`t expect Friday to be the catalyst with markets pretty dead after noon.
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| Davos ~ What Worries Keep Davos Billionaires Up at Night? – YouTube Posted: 24 Jan 2013 05:51 PM PST Check our website daily at... [[ This is a content summary only. Visit http://www.figanews.com for full Content ]]  |
| GATA's presentation, interviews at Vancouver conference posted at YouTube Posted: 24 Jan 2013 05:30 PM PST 7:28p ET Thursday, January 24, 2013 Dear Friend of GATA and Gold: GATA's presentation and interviews at the Vancouver Resource Investment Conference on Sunday and Monday have been posted at YouTube by the conference's sponsor, Cambridge House. The general presentation, which includes comments by GATA Chairman Bill Murphy, Board of Directors member Ed Steer, and your secretary/treasurer, is 33 minutes long here: https://www.youtube.com/watch?v=_0Wpv1ipJK8 Murphy is interviewed by Canadian television journalist Bridgitte Anderson for 12 minutes here: https://www.youtube.com/watch?v=t6Yw9B_M_zs And your secretary/treasurer is interviewed by Anderson for 10 minutes here: https://www.youtube.com/watch?v=yt8VJHmsG50 CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Fred Goldstein and Tim Murphy open All Pro Gold All-Pro Gold, run by long-time GATA supporters Fred Goldstein and Tim Murphy, offers its services to GATA supporters and anyone else interested in precious metals. The company brokers a full line of precious metals and numismatic coins. It aims to inform prospective clients about the importance of the monetary metals as part of a diversified financial portfolio and to keep prospective clients current with market trends. All-Pro Gold has competitive pricing and ships promptly to clients so they may have physical possession. Learn more by e-mailing Fred@allprogold.com or Tim@allprogold.com or telephone 1-855-377-4653 or visit www.allprogold.com. Join GATA here: California Resource Investment Conference * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Opinion Around the World Is Changing When Deutschebank calls gold "good money" and paper "bad money". ... http://www.gata.org/node/11765 When the president of the German central bank, the Bundesbank, pays tribute to gold as "a timeless classic". ... http://www.forbes.com/sites/ralphbenko/2012/09/24/signs-of-the-gold-stan... When a leading member of the policy committee of the People's Bank of China calls the gold standard "an excellent monetary system". ... http://www.forbes.com/sites/ralphbenko/2012/10/01/signs-of-the-gold-stan... When a CNN reporter writes in The China Post that the "gold commission" plank in the 2012 Republican platform will "reverberate around the world". ... http://www.thegoldstandardnow.org/key-blogs/1563-china-post-the-gop-gold... When the Subcommittee on Domestic Monetary Policy of the U.S. House of Representatives twice called on economist, historian, and gold standard advocate Lewis E. Lehrman to testify. ... World opinion is changing in favor of gold. How can you learn why and what it will mean to you? Read the newly updated and expanded edition of Lehrman's book, "The True Gold Standard." Financial journalist James Grant says of "The True Gold Standard": "If you have ever wondered how the world can get from here to there -- from the chaos of depreciating paper to a convertible currency worthy of our children and our grandchildren -- wonder no more. The answer, brilliantly expounded, is between these covers. America has long needed a modern Alexander Hamilton. In Lewis E. Lehrman she has finally found him." To buy a copy of "The True Gold Standard," please visit: http://www.thegoldstandardnow.com/publications/the-true-gold-standard |
| Silver wedge formation – YouTube Posted: 24 Jan 2013 05:30 PM PST Check our website daily at... [[ This is a content summary only. Visit http://www.figanews.com for full Content ]]  |
| Commodity Technical Analysis: Gold Has Retraced Entire 1/17 Move Posted: 24 Jan 2013 05:22 PM PST courtesy of DailyFX.com January 24, 2013 02:01 PM Daily Bars Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0 Commodity Analysis: Gold took out the January 2nd high last week. This is important because it nullifies bearish implications from a first day of the month (and year) high. Focus is on the trendline that extends off of the October and November 2012 highs and 50% retracement of the decline from the October high at 1710. Commodity Trading Strategy: Looking for support, which extends to 1653, to hold. LEVELS: 1642 1653 1662 1677 1687 1697... |
| Hamptons Prices Soar To Record As Lloyd Blankfein Parks $33 Million In 8,000 Square Foot Mansion Posted: 24 Jan 2013 05:21 PM PST
Needless to say the when a handful of the 0.001%, and quite close to the New Normal discount window - i.e., the Fed's excess reserves - purchase homes with no price discrimination, it has the same impact as when foreign oligrachs come to the US to launder illgotten cash (with the NAR's blessings), sending prices up some 35% in one year. And since the average price of all houses is dragged higher as a result, TV pundits can spin it as a housing recovery, and get consumers to consume even more by "charging it", making the abovementioned Hamptons' home purchasers even richer: there's your recovery. And it is a recovery, all right, for some: like Lloyd Blankfein who just parked another $32.5 million in prime 8,000 square foot Bridgehampton mansion set on some 7.3 acres.
Goldman must pay well:
Yes it does. And now back to the Hamptons:
Be advised: "Like, Crazy" is a technical term
It goes on and on and on, for those for whom, as we said above, there is a recovery. Details can be found here. For everyone else, here are pictures of the "Fein, Blank" new home located in Bridgehampton:    |
| Get Your Propertty Off of the Tax Roll 2.0 – Wednesday on the Bo & Rocko Show – YouTube Posted: 24 Jan 2013 05:15 PM PST Check our website daily at... [[ This is a content summary only. Visit http://www.figanews.com for full Content ]]  |
| Truth About Money, Prosperity, Freedom: Today's Top 10 News Stories Posted: 24 Jan 2013 03:56 PM PST Recommended news stories on January 24th, 2013How Jamie Dimon and JPMorgan Chase Endanger the Public Safety on Forbes | truth about banking Gold's Tactical Assault On $1800 on 321gold | gold fundamentals Withdrawn: $114 Billion From Big U.S. Banks on Business Week | truth about banking Gold Will Be The Best Business On The Planet on Bull Market Thinking | gold's prospects Marc Faber: "You Keep Your U.S. Dollars And I'll Keep My Gold" on Gold Core | truth about money Money printing amounts to theft from our children on Telegraph | truth about central banking Has The Debt Jubilee Already Started? on Dollarcollapse | debt crisis Currency war talk not appropriate says IMF chief economist on Reuters | resistance to see the truth Russia central bank to keep buying gold on Reuters | gold's prospects Top quotes of the day:
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| Separating the Gold Mining Haves from the Have-Nots: Paolo Lostritto Posted: 24 Jan 2013 03:52 PM PST The Gold Report: National Bank Financial began taking a defensive approach to gold equities in April by focusing on companies with strong balance sheets, which could fund their own growth and not have to go to the equity markets to survive. Does Alamos Gold Inc.'s (AGI:TSX) $780 million (M) takeover offer for Aurizon Mines Ltd. (ARZ:TSX; AZK:NYSE.MKT) validate that defensive thesis? Paolo Lostritto: We were right to have a defensive approach, but we probably weren't defensive enough. Multiples contracted much more aggressively than even we expected. There was a raft of project delays, cancellations, and capital and operating cost increases that have decimated the space so much that less than half of the gold mining industry is actually making money based on our all-in-cost estimate from third quarter data. [INDENT]"Royalty companies are positioned well in the current market environment." [/INDENT]On the surface, it looks as if Alamos is trying to take advantage of a multiple differ... |
| G. Edward Griffin – The Collectivist Conspiracy – YouTube Posted: 24 Jan 2013 03:46 PM PST Check our website daily at... [[ This is a content summary only. Visit http://www.figanews.com for full Content ]]  |
| The Silver and Gold Price Corrected Today with Gold Closing Down $16.80 at $1,669.50 Posted: 24 Jan 2013 03:41 PM PST Gold Price Close Today : 1669.50 Change : -16.80 or -1.00% Silver Price Close Today : 31.695 Change : -0.714 or -2.20% Gold Silver Ratio Today : 52.674 Change : 0.642 or 1.23% Silver Gold Ratio Today : 0.01898 Change : -0.000234 or -1.22% Platinum Price Close Today : 1682.30 Change : -6.70 or -0.40% Palladium Price Close Today : 725.95 Change : -3.70 or -0.51% S&P 500 : 1,494.82 Change : 0.01 or 0.00% Dow In GOLD$ : $171.19 Change : $ 7.50 or 4.58% Dow in GOLD oz : 8.281 Change : 0.363 or 4.58% Dow in SILVER oz : 436.20 Change : 11.03 or 2.59% Dow Industrial : 13,825.33 Change : 46.00 or 0.33% US Dollar Index : 79.98 Change : 0.094 or 0.12% The GOLD PRICE lost $16.80, falling to $1,669.50 and the uptrend line from the June low. Owch! Even touched the 200 DMA (1,664.01). Right there about $1,665 gold has done a lot of trading, so that's a likely place to stop. Could even drop to $1,650, but there's not really much indication of any greater weakness. That long 8 day SILVER PRICE upmove made me suspicious yesterday, and ought to have made me more suspicious. Silver fell 71.4 cents today to 3169.5c, giving back three days progress and falling beneath the 50 DMA (31.90) again. Came to a stop right on the uptrend line form the June '12 low. Fairly strong support at 3150 or stronger support above 3100c ought to catch it. Low today came at 3158c. Lose not heart, neither puff and blow. Corrections happen. Keep your eyes open to buy a little more, maybe tomorrow. More oddness: when the Dow in Gold broke out above resistance yesterday, I thought it was a fluke. Today it gapped up again, to 8.28 oz (G$170.54 gold dollars). Indicators warn it is way overbought, but the next resistance is about 9.12 oz (G$188.53). None of this makes sense after its September breakdown, and another breakdown in November, but I don't tell the markets what make sense, they tell me. It gets odder still. The Dow in Silver gapped up today above its 200 day moving average, even above its 20 DMA (434.96) to close at 435.83. However, it has NOT broken out above resistance, and stocks look much weaker against silver than gold. Two paths split off here. Either stocks will blow out the top much higher and gain on silver and gold, or stocks are within a day or two of some top. Stocks look way overbought here, but overbought can always get overboughter. US Dollar index gained 9.4 basis points (0.12%) to 79.98, not quite above to breach 80. Euro rose 0.44% to 1.3375, but the surprise came in the yen, which dove 1.95% and gapped down to a new low at 110.61 c/Y100. Seems the yen can go lower after all. Argentum et aurum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger The-MoneyChanger.com 1-888-218-9226 10:00am-5:00pm CST, Monday-Friday © 2013, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down. WARNING AND DISCLAIMER. Be advised and warned: Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures. NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps. NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced. NOR do I recommend buying gold and silver on margin or with debt. What DO I recommend? Physical gold and silver coins and bars in your own hands. One final warning: NEVER insert a 747 Jumbo Jet up your nose. No, I don't.  |
| Gold Bulls Shouldn?t Buy Gold Stocks! Posted: 24 Jan 2013 03:18 PM PST [B][B][B][B][COLOR=#0000ff][U]Register [/B][/B][/B][/B][/U]to [B][B][B][B]"Follow the [U]munKNEE"[/U][/B][/B][/B][/B][/COLOR] and automatically receive all articles posted With the Bank of Japan’s latest move to fight deflation and seemingly to start another round of global competitive currency devaluation, it…makes sense to hold some gold in a portfolio. However, I remain of the opinion that it makes no sense for gold bulls to hold gold stocks over bullion. [This article explains why that is the case.] Words: 281 So writes Cam Hui ([url]http://humblestudentofthemarkets.blogspot.ca)*[/url]in edited excerpts from his original article* entitled Where Is The Leverage To Gold? [INDENT]This article is presented compliments of [B]www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and [COLOR=#ff0000]www.munKNEE.com [/COLOR](Your Key to Making Money!) and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italic... |
| Silver Predictions …$250, $350, $450 Coming Economic Collapse – YouTube Posted: 24 Jan 2013 03:16 PM PST Check our website daily at... [[ This is a content summary only. Visit http://www.figanews.com for full Content ]]  |
| Gordon Kerr: ‘I was on the grassy knoll’ – YouTube Posted: 24 Jan 2013 03:09 PM PST Check our website daily at... [[ This is a content summary only. Visit http://www.figanews.com for full Content ]]  |
| The Fiscal Cliff Was A Wasted Opportunity Posted: 24 Jan 2013 02:32 PM PST The label "the fiscal cliff" evoked the fear that something terrible was about to happen if the previously legislated spending cuts and tax increases came into effect. From my point of view, our nation's deficits and debt are growing at an alarming rate and need to be cut back. The reason these laws were enacted was to offer markets some hope that we would eventually work toward eliminating our serious deficits. But the prevailing opinion that such drastic decreases in our deficit would slow our economy and bring recession created the impression that this "cliff" must be avoided. The chart below indicates the size of our federal government's budget deficit. The blue bars reflect what would have happened if there were no legislative changes, and the harsh measures of tax increases and spending cuts occurred. The red bars reflects potential tax increases, the green spending cuts, and the purple is additional interest paid on the expanded debt as a result of bigger deficits. The cliff is seen in the rapid drop of the deficit in the first few years of the blue bars. The result so far is that tax cuts have been extended for families making less than $450,000 per year (for individuals, it's $400,000). Spending cuts have been delayed for two months, and the debt ceiling will have to be raised at that time. Compared to last year's structure, the main result is a relatively modest increase of $650 billion in taxes on the rich. Spreading this over 10 years means that the budget is roughly $65 billion less per year because of the higher taxes. In essence, after all the political discussion and finger-pointing, the politicians did what I expected: they kicked the can down the road and made very little change compared to last year. The next chart shows the same baseline blue bars with the rather large extension of Bush-era tax cuts to the lower-income households, plus some small additional spending items. Since the blue baseline includes the expectation of sequestering of spending, it is my expectation that the actual deficits could be higher when no cuts are made with some future exercise of government can-kicking. While this chart appears to have lower deficits than shown in the previous range of possible outcomes, the more accurate conclusion is that we are still facing huge deficits, and the politicians really achieved very little in managing our long-term deficit problem. When they get back to meddling, the final deficits could be a lot worse than this analysis. After the markets closed on Friday, January 3 (when we were less likely to be watching), the Congressional Budget Office released an updated calculation on the size of the cost of the new legislation: it is now $600 billion worse than discussed. They left out the accounting for paying interest on the increased debt for the period of the calculation. I've included the interest-rate cost in the chart below where I estimated it as being larger in the later years of the chart. $600 billion turns out to be only a modest addition. It will turn out to be higher when rates rise. Here are a few more details on what was decided: • Employees will have up to $2,000 more taken out of their paychecks annually due to the expiration of the temporary payroll tax cut • The estate tax will increase from 35% to 40%, with the first $5 million worth of property exempt from being taxed • Capital gains and dividend tax rates will increase from 15% to 20% for higher-income earners • Alternative Minimum Tax will be raised to affect only higher-income households • Doctors will not see big cuts for treating Medicare patients • Unemployed workers will receive extended benefits It is also sad to report that Washington has been operating as business as usual, including extending many strange programs like support for NASCAR racetracks, rum import duties, and even special support for buildings in New York City near the World Trade Center. While deplorable, these items are small in the macro picture. One new emergency-spending measure that was not included is $60 billion for hurricane Sandy relief, which will surely be added to the deficit soon. The beat goes on, with the inevitable result that the deficit continues. Fiat currency systems have no built-in limit. World markets applauded this relatively modest package, because it confirms the short-term positive results of government deficit spending. The Dow Jones Industrial Average was up 300 points the day after the crisis was "eliminated." That means that the Federal Reserve will back up the federal government with more QE to keep the government rolling for the time being. Another result should be further downgrading of the US government debt by the rating agencies. Can you see a progression over another cliff? Downgrading raises the interest rate required by investors on US Treasuries; that increases the cost and the deficit. See the purple in the above chart? It will get worse than the CBO is letting on when rates rise. I had been trying to ignore the massive, blanketed coverage by our media of this political circus. I knew ahead of time what the result would be from this deficit-cliff exercise. When it comes to holding the line against more government deficits, spending, and taxing, our government is dysfunctional. This event is more seminal than the results indicate: we can expect the politicians to repeat this process in a couple of months, and so on until there is a major loss of confidence in the dollar. There will be no return to fiscal responsibility. My point is simply this: we are already beyond the point of ever returning to a sensible, balanced-budget system. We may be distracted by wars, some crazy or false-flag terrorist event, or by even a natural disaster, but the conclusion is already inevitable: The US dollar will be toast; Treasuries are a dangerous investment; interest rates will start rising; and even the massive Federal Reserve manipulation supported by the banking cartels will be unable to overcome that. We will likely start in a slow fashion this year and will escalate out of control in the decade ahead. We need to understand the implications of this recent event, and – as this small step confirms – that promises of future fixes will be complete shams. Remember when President Johnson said that there would be no repercussions from removing silver coins from our currency? A silver quarter alone is now worth around $5.50. And that's not because silver is different; it's because dollars are heading into the toilet. Protect yourself! In the long run, the fiscal-cliff deal should not be celebrated as if it were a positive event. It is far from balanced, considering the much bigger government-debt problems that we face as a nation. In essence, this action was an opportunity to take real measures to curb our deficits, but the action taken has drifted us further along the path of fiscal irresponsibility. The American debt crisis has been generations in the making, and so won't be quickly turned around. But that doesn't mean that profit opportunities don't exist – quite the contrary. New regulations and laws always create dislocations that early actors can take advantage of. Learn more about the crisis and how to start positioning yourself for maximum profit today. |
| Gold Seeker Closing Report: Gold and Silver Fall About 1% and 2% Posted: 24 Jan 2013 02:21 PM PST Gold fell to as low as $1665.12 at about 10AM EST before it bounced back higher in the next hour of trade, but it then drifted back lower again into the close and ended with a loss of 1.06%. Silver slipped to as low as $31.60 and ended with a loss of 1.83%. |
| Gold Daily and Silver Weekly Charts - Upping the Chances for Inflation Posted: 24 Jan 2013 02:13 PM PST  This posting includes an audio/video/photo media file: Download Now |
| Posted: 24 Jan 2013 01:52 PM PST Stocks up. Gold down. Bitcoin…waaay up. The S&P 500 busted through the 1,500 mark this morning. Stocks haven't been this expensive since 2007…right before they got a whole lot cheaper…for a whole lot longer. Gold, meanwhile, dipped a tad. This, despite central bankers of the world goading it on, promising to dilute the value of their respective paper currencies against the Midas Metal. Befriend the dips. And what about bitcoin? Wait…what is bitcoin?? Why, it's a speculation, of course; a dark horse, beloved by anarchists, ne'er-do-wells and fringe-dwelling lunatics, the kind of people you wouldn't invite over for tea with your mother-in-law. It is the fascination of the ill-adjusted, the oddly-mannered, the heterodoxical hedonist. Indeed, the very idea of bitcoin, a "decentralized, cyber-crypto currency," has to it a ring of the unknown…of disruption, rebellion…perhaps even revolution… In plain English, it's not to be trusted by members of polite society. And these are just some of the reasons we like it so much! Since we first disgraced these pages with mention of the wretched thing, bitcoin has quadrupled in price…then fallen through the floor…then risen once again, like a Phoenix, nurtured by the fertile ashes of doubt and skepticism. On the subject of cyber currencies, pointy-headed professors remain predictably divided. Economists, too, are split down the middle. Even the libertarian camp seems unsure of its "official" stance… "Can we fairly consider bitcoin a money? Is it even real? Can we take it to be intellectually 'valid.'" What a pompous band of academic lickspittles! You who criticize the mainstream for their blind adherence to rigidly archaic principles. You who admonish the stuffy Ivy Leaguers for their brittle little theories, lacking in dynamism and ill-equipped to deal with the world as it is and as it changes. You who rage against the concentration of power, against the arrogance of control and the folly of central planning. Well then…Here is your misfit! Your champion of decentralized power…your catalyst for democratic, horizontal information dissemination. And with it, a price…determined by the free market you profess to adore. Here, within your grasp, lies a spectacular failure…or else the agent of change for which you've long been waiting. Have you nothing to say but, "Yes…but does it satisfy Aristotle's requirements of sound money?" Ah, Phooey to you all! We first brought you word of this underdog currency a couple of years back, shortly after it began making waves on Internet message boards. The premise seemed appealing. It was – and still is – a bet against the omniscience of central bankers. Demand for the currency rests, in no small part, on the continued arrogance of the Bernankes, Shirakawas, Kings, Stevens and Draghis of the world. "The demand for a totally free market currency arose, naturally, out of the dismal state of the current monetary environment," we wrote at the time, an environment "in which governments around the world systematically debase the value of their printed monies in order to pay for the various welfare-warfare states they promised but can't possibly afford. The resulting inflation is sometimes referred to as a 'sneaky tax,' one that silently, insidiously infiltrates the marketplace, with each freshly-inked dollar compromising the value and integrity of each and every currency unit already in circulation." What, if anything, has changed in the two years since we penned those words? Has a single central banker admitted a single mistake? Has one been reprimanded for his gross negligence – be it criminal, cerebral or a combination of the two? Is one of them serving time behind bars…or on the rack…for his crimes against progress and human advancement? Not a chance! Indeed, it is to those who caused the mess that a brain dead populace look for solutions! These are the men, mind you, who worked – actually labored – to keep alive companies that ought now to be decomposing in the tar pits of corporate failure, breaking down in order that other creative agents might one day unlock its idle energy and potential. The very presence of these individuals at the solution table is an offense to decency. In the end, bitcoin is a bet on the other side of The State's coin; the free market side. It's a bet that voluntary trade will, in the end, overcome neanderthalic force and coercion. It's a wager that the conversation currently underway in the shadowy "black" market is far more intriguing, far more complex, far more nuanced and exceedingly more interesting than the yip-yapping that distracts the undead, mainstream TV-consumer for an hour or so around feeding time every evening. If bitcoin goes to its grave tomorrow – and it may well do so – it will be in service of precisely the point free market enthusiasts have been advocating all along: That it is not for a committee to determine the price of a good (including money itself)…or for a state or a central agency or a law or an edict. That is for the market to decide. Today, that market says a bitcoin is worth $19. Tomorrow, maybe 19 cents…or $19k. No one body knows…and that's exactly the point. Regards, Bitcoin Bytes Back appeared in the Daily Reckoning. Subscribe to The Daily Reckoning by visiting signup for an Agora Financial newsletter.        |
| Posted: 24 Jan 2013 01:41 PM PST [url]http://www.traderdannorcini.blogspot.com/[/url] [url]http://www.fortwealth.com/[/url] Yesterday I mentioned that gold had stalled out at its 50 day moving average, which just so happens to come in very near the psychological resistance level of $1700. Today it was knocked lower and hit its 200 day moving average on the downside which has stopped its descent, for now. There looks to me to be a couple of things going on here. The first is a technical failure with its inability to get a handle of $17" in front of it. That must occur for momentum based buying to come in, buying which I might add is necessary if this thing is going to to anything to excite the bulls. The Swap Dealers and Bullion Banks are selling very heavily at this level and are absorbing all of the bids coming into the market. The second is that I get the distinct feeling that what we are seeing is disenchanted short term oriented traders who are are giving up in disgust at gold's lackluster performance ... |
| Posted: 24 Jan 2013 01:28 PM PST The daily chart of the Gold Miner's Bullish Percent Index is shown below, with the HUI denoted in green. The ratio has fallen below 28, which now has put the HUI into an extremely oversold state, which suggests a breakout move is looming. Read More...  |
| Uranium and Rare Earths Should Rebound On China Rally Posted: 24 Jan 2013 12:20 PM PST We notice with interest that the popular media is ignoring the World Trade Organization case against China for restricting exports of critical materials which has a significant impact on the global economy. These critical metals are not only crucial for your Ipads and smart-phones, but for our top secret, most advanced weaponry. Looking for substitutes for rare earths has proven to be a poor return for investment. For fifty years they have been trying to find alternatives only to find out that the chemical characteristics of rare earths are inimitable. I have been a major proponent to advance domestic strategic mines in the U.S. and Canada. Recently the U.S. Department of Defense partnered with one of our rare earth recommendations to advance studies. This move may show investors that the our national security is dependent on domestic critical rare earth production. I would not be surprised to see Canada make a similar move to support rare earth mining and development. China recently during the quiet holiday season announced that they were tightening exports again on critical materials. Rare earth export quotas for next year will drop again. China claims that they are cutting back because of the weak global economy. Nevertheless, stealthily China continues to announce infrastructure plans within China and has been stockpiling these critical materials for their own domestic demand. For months, we have been predicting a rebound in China's economy as iron ore prices began rising. Now we read headlines that China's exports are very strong even with a rising yuan. Risk assets such as the miners and industrial metals should rally on this news. More smart money from the investment community is realizing that China is far from a hard landing but they may be in the midst of a powerful recovery. Exports have jumped to a seven month highs despite the debt issues in Europe and the United States. This rebound in China may be the spark in the undervalued miners which have been in a downtrend for close to two years as economists predicted a Chinese hard landing. Many investors have been concerned about the recent Fed minutes which indicated some sort of exit plan from quantitative easing. These accommodative actions have boosted bonds, the housing and the financial markets with easy money. We may be witnessing capital flowing to the growing economies such as China. All these actions over the past few years by Central Banks could be starting an inflationary cycle which could boost the undervalued commodities such as uranium (URA) and industrial/strategic metals (REMX). China's equity markets are up around 20% in the past six months far outpacing Europe and the United States equity markets. Many do not realize yet that not only is China the world's biggest supplier, but their own economy has grown to a point where they may become the largest consumer of these materials as major industries continue to move their factories into China. China continues to control the rare earth industry despite attempts from companies like Molycorp and Lynas to begin production. Both companies have been plagued by delays and obstacles. Mining and refining rare earths is not an easy ballgame as it requires advanced metallurgy. For decades the world has been relying on cheap rare earths from China. Nevertheless, this will be rapidly changing over the next few years. The Chinese are especially short on the critical rare earths needed for permanent magnets, wind turbines, guided missiles and lighting as they are building their own facilities to manufacture these finished products. Molycorp and Lynas should be able to supply a large amount of light rare earths after they work out their issues. However, Lynas is still dealing with protestors in Malaysia and Molycorp is dealing with delays and rising costs to start production. The disappointing performance in these two equities have hurt the entire sector. In 2011 and 2012, we experienced a decrease in price of the entire industrial metal sector as QE2 expired and the US and European debt crisis intensified. However, we may be at a turning point for the undervalued rare earth and uranium miners as China leads a rebound. Large amounts of quantitative easing in the U.S. was announced in the second half of 2012. The new Japanese Government is also devaluing the Yen to boost the Nikkei, while restarting nuclear plants. China is rebounding quickly announcing infrastructure projects and starting construction on nuclear reactors. China's decreasing rare earth exports combined with declining production and rapidly depleting heavy rare earth resources could cause an even greater supply shortfall in 2013. China is consolidating the rare earth industry and cutting down on critical metal smuggling. This will help the Chinese have greater control of their own domestic production. This year should be quite active in both the critical heavy rare earth space and the uranium sector as Asia rebounds. These rare elements are vital for our latest high tech devices and there are only a few viable companies that can get into production in a timely manner. In the rare earth mining sector, geopolitical support and infrastructure is crucial. Let's revisit Pele Mountain Resources (GEM.V or GOLDF) whom we have written about over the past year and has both uranium and the critical rare earths.
Their Eco Ridge Mine is located in Elliot Lake, a proven mining camp. The local community has expressed great support for this project. Read the entire mayor and city council's letter by clicking here which states: Elliot Lake is a proven mining camp and has produced more than 300 million pounds of uranium and heavy rare earths as a byproduct. It may be the only place in North America where the heavy rare earths such as yttrium were historically once produced. Unlike many of Pele's competitors, Elliot Lake has outstanding infrastructure with roads, rail, ports and power. Pele's technical team is headed by Roger Payne who has spent 20 years working in Elliot Lake and is well respected by the local community as well as by his peers in the mining industry. The Eco Ridge deposit provides great leverage to the price of uranium and rare earths as it is a big production scenario which could produce close to 2.7 million pounds of uranium and 4000 tons or rare earths annually. The company recently released an NI 43-101 Preliminary Economic Assessment with an NPV of over $1 billion and a before tax payback period of 18 months. This is pretty impressive for a company with a market cap below $10 million. Pele is looking for the opportunity to raise funds to take it through feasibility by working with end users and strategic partners for potential off take agreements in 2013. The infrastructure at Elliot Lake is excellent and it is one of the great Canadian mining camps. This has a major impact on potential low capital expenditures. The geopolitical support from Elliot Lake is very strong which could help the company as they work diligently and speedily to get Eco Ridge into production. The world is racing for critical rare earth supplies and uranium resources. Ontario is especially interested in a potential uranium deposit as nuclear power supplies over 50% of the electricity in the Province. Pele Mountain's Eco Ridge mine at Elliot Lake may be one of the answers to Ontario in the years ahead as the Government looks for clean energy solutions to decrease carbon emissions. In October of 2012, Pele Mountain released news that they were able to produce a rare earth concentrate and uranium yellow cake. This was a major metallurgical milestone. Pele Mountain may be one of the first rare earth candidates to get into production as the metallurgy and mineralogy is well known, has great infrastructure and very strong local support. Here is the kicker. A rising uranium price could be the economic advantage to propel Pele's Eco Ridge into the forefront of considerable candidates for industrial end users. Investors should be aware Pele has a small market cap of below $12 million. Investors should be cautioned micro-cap companies have high risk-high reward profile. If the trend turns in both the rare earths and uranium, we expect Pele to outperform as it did in 2007 and 2010 on previous price rises in the underlying commodities. Pele has a history of great price rises with rising uranium and rare earth prices. History many not repeat but it tends to mimic. Stay tuned. See my recent interview with Al Shefsky CEO Of Pele Mountain Resources (GEM.V or GOLDF) below.
Disclosure: Author Owns Pele Mountain and Pele is a sponsor on my free website. See my current list of sponsors by clicking here… We are offering ideas for your consideration and education. We are not offering financial advice. None of our content is provided to invite or encourage any person to make any kind of investment decision. We are not financial advisors. We advise you to consult with a professional financial and investment advisor before relying on any content. Please do your own due diligence! Only a fraction of my research is published on my free website. Get timely analysis on precious metals, uranium and rare earths by signing up for my premium service by clicking here… Try it out for a free 30 day trial no questions asked by clicking here… I will be giving two presentations at The World Money Show in Orlando,FL. Learn more by clicking here… Thursday, January 31, 2013, 9:45 am – 10:15 am Accredited Investors interested in special news geared for professionals click here… |
| This Is Why Big Money Keeps Buying Gold & Silver Smashes Posted: 24 Jan 2013 12:07 PM PST  Today 40-year veteran, Robert Fitzwilson, warned, "The West went over the spending cliff decades ago." He also states that "Those who want a fighting chance at surviving and prospering," need to own physical gold and silver. Fitzwilson, who is founder of The Portola Group, wrote the following piece exclusively for King World News.This posting includes an audio/video/photo media file: Download Now |
Bundesbank announced last week that they'll repatriate 674 metric tons of their total 3,391 metric tonne gold reserves from vaults in Paris and New York to restore public confidence in the safety of Germany's gold reserves. The transfer from the Federal Reserve is set to take place slowly over a seven year period and will only be completed in 2020.
The 2007 Federal Open Market Committee (FOMC) transcripts were released last week. Media reports have concentrated on the Fed's forbearance during the credit meltdown. Implied, but not stated (in what I have read) is the major reason for such nonchalance: The Fed only acknowledges flows, not stocks. This might sound boring. It is also very important to understand.
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