Gold World News Flash |
- Silver And Bank Stock Lovebirds
- Commodity Technical Analysis: Gold Holding Fibonacci Level is Constructive
- Platinum Market Analysis and Forecast for 2013
- Gregory Mannarino – U.S. Debt Downgrade Imminent – YouTube
- some Silver information from a known “MONEY-CHANGER” – YouTube
- Bullion Delays Get Longer
- Why Wealth Destruction Will Be Different This Time vs The 70s
- Confiscation of Gold – Then What? Part 5
- Links to 5 of the “Best-of-the-Best” Articles on the Financial Plight of the USA
- Been Busy? Don?t Worry, Here are Links to 12 of the ?Best-of-the-Best? Articles on Gold & Silver You Might Have Missed
- Goldrunner Update: Gold, Silver & PM Stock Sentiment Sucks BUT the Fundamentals Are Off the Wall!
- Been Busy? Don't Worry, Here are Links to 12 of the “Best-of-the-Best” Articles on Gold & Silver You Might Have Missed
- A Hard Landing In China Part 2 - Rest Of The World Impact
- The Gold Price Closed up $15.90 to $1,662.20 Silver Closed at $30.46
- Why The $1 Trillion Platinum Coin Idea Won’t Work
- Bank Of America On The "Trillion Dollar Tooth Fairy" Straight "From The Land Of Fiscal Make Believe"
- These Are the People Who Will Save the System?
- David Morgan: The “Scare you out – Wear you out” Phase for Gold and Silver Coming to an End The metals need “money velocity” for ignition | James J Puplava CFP | FINANCIAL SENSE
- Gold bounces from Support
- Gold & Silver Price Enter 2013 Supported by a Chinese Wall
- An Economy That Actually Works
- We’ll See Breathtaking Moves In Stocks, Gold & Silver in 2013
- Keep the Faith ? This Bull Market in Gold STILL Promises to Be One for the History Books! Here?s Why
- Gold Daily and Silver Weekly Charts
- Gold Seeker Closing Report: Gold and Silver Gain Almost 1%
- Special GoldSeek.com Event: “What’s in Store for Gold Stocks in 2013? A Look at the Charts”
- Gold Resource Corporation Reports High Grade Las Margaritas Drill Intercepts Returning 2.85 Meters of 27.90 g/t Gold, 2600 g/t Silver
- Argentina’s “Dólar Blues”
- HEART OF GOLD – 40 YEARS LATER
- CPM Platinum Market Analysis and Forecast for 2013
- The Case For Immortality
- Keep the Faith – This Bull Market in Gold STILL Promises to Be One for the History Books! Here's Why
- Gold 2012 – 2013 New year outlook & review
- The Daily Market Report
- Merk 2013 Dollar and Currency Outlook
- HOW TO TAKE OVER THE WORLD
| Silver And Bank Stock Lovebirds Posted: 09 Jan 2013 12:55 AM PST Graceland Update |
| Commodity Technical Analysis: Gold Holding Fibonacci Level is Constructive Posted: 09 Jan 2013 12:39 AM PST courtesy of DailyFX.com January 08, 2013 06:21 PM Given the strong bounce from support, I’m inclined to look higher but weakness below Friday’s low negates anything bullish. Weekly Bars Chart Prepared by Jamie Saettele, CMT Commodity Analysis: Gold is holding HUGE support. The level in question is defined by the 61.8% retracement of the rally from the 2011 low (lowest level of the move from the record high) and former resistance (top of congestion from June to August 2012). The response at the level has been impressive. By the same token, a break of this well-defined support level could lead to a rush for the exits and extension of weakness. Commodity Trading Strategy: Given the strong bounce from support, I’m inclined to look higher but weakness below Friday’s low negates anything bullish. Near term resistance is being tested now (1660). LEVELS: 1585 1610 1626 1660 1670 1684... |
| Platinum Market Analysis and Forecast for 2013 Posted: 09 Jan 2013 12:26 AM PST Violent strikes and supply disruptions in South Africa put platinum in the headlines last year, and the metal spent 2012 selling at a discount to gold. Is a platinum discount the new normal? How will the market shift in the labor strike fallout? And will mining asteroids transform supply fundamentals? CPM Group Platinum Analyst Erica Rannestad met with The Metals Report to share her price and cost forecasts for 2013 and discuss the supply and demand trends to watch this year. The Metals Report: Across the mining sector, investors are concerned with rapidly rising costs. How did the 2012 strikes in South Africa affect operating costs in the platinum group metals (PGM) mining industry specifically? |
| Gregory Mannarino – U.S. Debt Downgrade Imminent – YouTube Posted: 08 Jan 2013 10:49 PM PST Check our website daily at... [[ This is a content summary only. Visit http://www.figanews.com for full Content ]]  |
| some Silver information from a known “MONEY-CHANGER” – YouTube Posted: 08 Jan 2013 10:39 PM PST Check our website daily at... [[ This is a content summary only. Visit http://www.figanews.com for full Content ]]  |
| Posted: 08 Jan 2013 10:30 PM PST by Patrick A. Heller, Numismaster.com:
On Monday morning, here is what one major wholesaler was reporting for delayed availability: In gold coins and bars: Half-ounce and tenth-ounce American Eagles, 1-ounce Buffaloes, Canadian Maple Leaves, South African 1 ounce Krugerrands, kilogram-sized gold bars, British sovereigns, Swiss and French 20 francs, Austrian 100 coronas, Mexican 50 pesos and Australian Kangaroos. In silver coins and bars: U.S. silver American Eagles of all dates, Canadian silver Maple Leaves, 1 ounce Engelhard rounds and rectangles, 10-ounce Engelhard or Johnson Matthey bars, 100- ounce bars of any manufacturer and U.S. 90 percent silver coins. |
| Why Wealth Destruction Will Be Different This Time vs The 70s Posted: 08 Jan 2013 10:01 PM PST  Today 40-year veteran, Robert Fitzwilson, wrote the following piece exclusively for King World News. Fitzwilson, who is founder of The Portola Group, has an absolutely fascinating and incredibly important 45-year chart, which is a spectacular illustration of why gold and silver are in bull markets. Fitzwilson also discusses how this wealth destruction cycle will be uniquely different from the 70s, and multiple ways investors can protect themselves.This posting includes an audio/video/photo media file: Download Now |
| Confiscation of Gold – Then What? Part 5 Posted: 08 Jan 2013 09:06 PM PST Gold Forecaster |
| Links to 5 of the “Best-of-the-Best” Articles on the Financial Plight of the USA Posted: 08 Jan 2013 09:03 PM PST Register to "Follow the munKNEE" and automatically receive all articles posted Given the hectic lives we lead you may well have missed some excellent By Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!) and www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds). As is the case with all articles posted on munKNEE.com, each of the articles below has been edited for the sake of clarity and brevity to ensure you have a fast and easy read. Find a comfortable chair, put up your feet and take a few minutes for yourself and enjoy one or more of the articles.
2. What's Presently Occurring Is Unsustainable & It's Inevitable It Will End – Badly! Here's Why
5. U.S. Debt 101: If the U.S. Were A Stock Few Investors Would Own It – Here's Why
6. Busy Leading Up to Christmas? Here Are 8 Articles on America's (and the World's) Economic Plight
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| Posted: 08 Jan 2013 08:32 PM PST [B][B]Register [/B][/B]to [B][B][B][B]"Follow the [COLOR=#ff0000]munKNEE"[/B][/B][/B][/B][/COLOR] and automatically receive all articles posted... |
| Posted: 08 Jan 2013 08:32 PM PST [B][B]Register [/B][/B]to [B][B][B][B]"Follow the [COLOR=#ff0000]munKNEE"[/B][/B][/B][/B][/COLOR] and automatically receive all articles posted Sentiment in the precious metals sector is in the toilet*yet the fundamentals for the sector are off the walls positive.*While that is not a*secret, it is what creates huge market moves in the direction of the fundamentals.*In fact, market management will never move price against the underlying fundamentals for too long a period of time.*This update offers more good news about the prospects for the precious metals sector. Words: 438 So says Goldrunner* (www.GoldrunnerFractalAnalysis.com) in edited excerpts from his most recent newsletter to subscribers (excluding his*illustrative charts which are only available to subscribers) posted here with permission. Go here to subscribe and receive his unique analyses with one-of-a-kind charting. [INDENT]Lorimer Wilson, editor of [B][COLOR=#ff0000]www.FinancialArticleSummariesToday.com [/COLOR](A site ... |
| Posted: 08 Jan 2013 08:29 PM PST Register to "Follow the munKNEE" and automatically receive all articles posted
By Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!) and www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds). 1. Goldrunner Update: Gold, Silver & PM Stock Sentiment Sucks BUT the Fundamentals Are Off the Wall!
2. Keep the Faith – This Bull Market in Gold STILL Promises to Be One for the History Books! Here's Why
3. Gold & Silver vs. Fiat: Do You Live In An Imaginary World Or In Reality?
4. Alf Field: Once $1,800 Is Taken Out Gold Will See a Vigorous Climb to $4,500 Area
6. The Charts Tell ALL and THIS Is What They're Saying About Gold & Silver for 2013
7. Is Silver About to Begin a Parabolic Rally to $60+ OR Collapse to Possibly As Low As $22?
8. A Peek at Possible Developments in Gold, Silver, Mining Shares & the Dow
9. Jim Sinclair: Gold & Gold Share Bearishness a Contrarian's Dream
11. If You Think Silver Is Going To Increase In 2013 Here's How to Best Maximize Your Return
12. Silver: Another Decade of 500% Returns is Very Possible – Here's Why
13. Here are Some Articles on Gold & Silver You Might Have Missed Over the Holidays
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| A Hard Landing In China Part 2 - Rest Of The World Impact Posted: 08 Jan 2013 08:17 PM PST Via Wei Yao of Societe Generale, ...and what it means for the rest of the world Following on from our earlier discussion of how a Chinese hard landing would evolve, SocGen now examines how a Chinese hard landing would impact the global economy. They see the contagion in several ways: mechanically (since China is part of the global economy) and through trade, financial and market channels. Mechanically, a slump in Chinese GDP growth to just 3% would cut our global GDP growth forecast by 0.6pp. Add to that the channels of transmission to the global economy, and our expectation is that a Chinese hard landing would result in 1.5pp being slashed from global GDP growth in the first year. How important is China as a source of global demand? With imports equivalent to 30% of its GDP, China is a major source of global demand. Exports to China as a percentage of GDP are largest in Asia and amongst the commodity exporters, so these countries would be hardest hit. Drawing on different studies, mainly from the IMF and the OECD, we estimate that the impact of the trade channel from the type of hard landing in China described in the previous section would cut GDP growth by around 4.5pp in Taiwan, 2.5pp in South Korea and Malaysia, 1.2pp in Australia, 0.6pp in Japan, 0.3pp in the euro area and 0.2pp in the US. For the global economy ex-China, the trade channel effects would bring about a reduction of around 0.7pp to GDP growth.
The impact of a Chinese hard landing on the rest of the world could be aggravated by the fact that investment would be particularly hard hit. As noted in the previous section, we expect investment – which now makes up half of Chinese GDP – to fall more than consumption if China does suffer a hard landing. And investment has significantly higher import content than consumption, most notably through commodities and machine tools. This could have a particularly sharp impact on some smaller commodity producers. For example, exports of energy and metals to China make up over 40% of Mongolia's GDP. In terms of capital good exports to China, Taiwan has the closest ties, depending for just under 15% of its GDP thereon; but this is already a much lower number than that of Mongolia and many of the other commodity exporters. Exporters of consumer goods are less exposed, as seen in the chart overleaf. For all the talk of the importance of China to exporters such as Germany, the absolute numbers remain modest despite strong growth in recent years.
Would currency and trade wars result? The decline in global trade that would come with a China hard landing naturally leads to the question of whether currency and trade wars would result. As outlined by Wei Yao in the previous section, our scenario assumes Chinese policymakers would tread very carefully, being only too well aware of the dangers. In Washington, the appreciation of the dollar that would follow as investors (both new foreign investment and US repatriation from abroad) seek the safety of US shores would not be welcome. Moreover, the Chinese yuan would be far from the only currency depreciating against the US dollar; trade weighted, our China hard landing scenario assumes a 10% dollar appreciation in the first year and this despite additional QE from the Fed. It does not take any great stretch of the imagination to paint an even bleaker scenario in which a China hard landing triggers outright currency wars and protectionist measures on trade flows. This would further aggravate the negative impact of a China hard landing and extend the duration of the shock. How important are financial links to China? Of the total foreign claims of BIS-reporting banks as of June 2012, only $731bn – or just 2.4% of the total – are on China. The risk of China transmitting a hard landing to the rest of the world through the banking channel thus appears modest. Foreign corporations present in China would see the value of their investments decline, but more importantly, profits generated in China would slump, hitting several major multinational companies. The response would be cost cutting, and not just in China. Does the starting point for the global economy matter? Our what-if analysis of a China hard landing draws on a wide body of academic research that analyses various shocks and how these disseminate to the global economy. These analyses often implicitly assume the starting point of an economy in equilibrium and with a well stocked arsenal of policy ammunition. The current situation is very different, however, with large output gaps in many of the world's major economies, ongoing headwinds from deleveraging and policy arsenals already depleted. Add a China hard landing to the mix, and we expect the result would be a far greater uncertainty shock than had the starting point been a world in overall good health. Uncertainty would cause corporations globally to hold back further on investment and hiring decisions (even those not directly exposed to China). And, feedback loops from financial channels would further amplify the uncertainty shock as risky asset prices collapse. At the global level, we estimate that the combined uncertainty shock in our China hard landing scenario could exceed 1% of global GDP.
Where could offsets come from? The effects of a Chinese hard landing on growth could, however, be offset by some secondary effects. Lower commodity prices are perhaps the most important. As a rule of thumb, we assume that, all else being equal, a $10/b permanent drop in the oil price would boost global GDP by around 0.3pp. Our commodity strategists' assumption that a Chinese hard landing would initially cut oil prices by 30% implying a first offset. The greater hope for offset is policy. Central bankers are usually the first at the scene of any shock and a first response would likely be more QE from the Federal Reserve, Bank of Japan and Bank of England. However, several prominent central bankers have already noted that there is a limit to QE and that it comes with diminishing returns. The ECB would keep the promise of OMT (Outright Monetary Transactions under the conditionality of a European Stability Mechanism programme) on the table and continue to supply amply liquidity. Central bankers could also explore other possibilities. The BoE already has a funding for lending scheme, the BoJ buys ETFs and REITs, Danmarks Nationalbank has a negative deposit rate … none of these measures have to date proven a panacea, however. This would not prevent central banks from trying, but we remain doubtful it would work and also note that some measures would require changes to legislation (such as the Fed buying equities) and would thus not be a day one response option. Turning to fiscal policy, we believe most advanced economies have little room for manoeuvre, though the US and Germany are potential exceptions; but even here we would not look for aggressive steps measures. By contrast, emerging economies have greater room for both fiscal and monetary policy stimulus. If China does experience a hard landing however, some of the foreign inflows attracted by the higher returns in these markets could reverse, adding to pressure on these economies (albeit with the silver lining of currency depreciation). Overall, we see little scope for economic policy to significantly offset the negative effect of a Chinese hard landing on the global economy. Additional policy stimulus would mainly serve to limit negative tail risks. |
| The Gold Price Closed up $15.90 to $1,662.20 Silver Closed at $30.46 Posted: 08 Jan 2013 07:51 PM PST Gold Price Close Today : 1662.20 Change : 15.90 or 0.97% Silver Price Close Today : 30.46 Change : 0.38 or 1.27% Gold Silver Ratio Today : 54.56 Change : -0.17 or -0.30% Franklin Sanders didn't post commentary today, if he posts later it will be available here. Argentum et aurum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger The-MoneyChanger.com 1-888-218-9226 10:00am-5:00pm CST, Monday-Friday © 2012, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down. WARNING AND DISCLAIMER. Be advised and warned: Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures. NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps. NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced. NOR do I recommend buying gold and silver on margin or with debt. What DO I recommend? Physical gold and silver coins and bars in your own hands. One final warning: NEVER insert a 747 Jumbo Jet up your nose. No, I don't.  |
| Why The $1 Trillion Platinum Coin Idea Won’t Work Posted: 08 Jan 2013 07:50 PM PST With the United States rapidly approaching the debt ceiling limit, a dysfunctional and divided Congress appears unable to agree on either spending cuts or an increase in the debt ceiling. Absent some grand Congressional compromise, America's nonstop trillion dollar deficit spending will rapidly push the nation to the brink of default before the end of [...] |
| Posted: 08 Jan 2013 05:47 PM PST A year ago, out of nowhere, the grotesque suggestion to "resolve" the US debt ceiling with a platinum dollar coin came, and like a bad dream, mercifully disappeared even as the debt ceiling negotiations dragged until the last minute, without this idea being remotely considered for implementation, for one simple reason: it is sheer political, monetary and financial lunacy. And yet there are those, supposedly intelligent people, who one year later, continue dragging this ridiculous farce, as a cheap parlor trick which is nothing but a transparent attempt for media trolling and exposure, which only distracts from America's unsustainable spending problem and does nothing to address the real crisis the US welfare state finds itself in. And while numerous respected people have taken the time to explain the stupidity of the trillion dollar coin, few have done so as an integral part of the statist mainstream for one simple reason - it might provide a loophole opportunity, however tiny, to perpetuate the broken American model even for a day or two, if "everyone is in on it." Luckily, that is no longer the case and as even Ethan Harris from Bank of America (a firm that would be significantly impaired if America was forced to suddenly live within its means), the whole idea is nothing more than "the latest bad idea" straight "from the land of fiscal make believe." We can only hope that this finally puts this whole farce to bed. From Bank of America: The trillion dollar tooth fairy From the land of fiscal make-believe The budget skirmishes over the past few years have spawned a lot of bad ideas. The latest is that the US Treasury issue a trillion dollar coin to get around the debt ceiling. We see several problems with this plan. First, its legality is open to question. Second, it would worsen the coming battle over spending cuts. Moreover, it would further deepen the distrust between the two political parties. Finally, it risks being the first step down a slippery slope of debt monetization. Finding change in the Treasury's sofa A hot idea for resolving the fiscal crisis is for the US Treasury to issue a trillion dollar platinum coin in order to avoid the looming debt ceiling. The idea comes from a broad interpretation of law that gives the Treasury secretary the ability to mint and issue commemorative platinum coins "in such quantity and of such variety as the secretary determines to be appropriate." The trillion dollar coin plan work as follows: the Treasury would deposit this coin at the Fed, which acts as the Treasury's banker. The Treasury then could draw upon its account to pay for outlays. This action would allow funding for an additional trillion dollars of spending without having to worry about raising the debt ceiling, buying another year of breathing room. If the debt ceiling isn't raised a year from now, then presumably the Treasury could mint another coin. Wouldn't this action be massively inflationary? Proponents argue no. With the economy operating below potential, allowing this already-authorized spending to occur would prevent a further collapse in aggregate demand. Were the Fed concerned about possible inflation, it could "sterilize" the impact by selling from its existing stock of bonds. In the limit, the Fed could sell a trillion dollars worth of bonds — that should squelch any inflationary impetus and remove any hint of outright debt monetization, according to supporters. More debt limit desperation This plan is just the latest in a string of "solutions" to the debt crisis. In the summer of 2011, several ideas were floated to get around the debt ceiling altogether. One proposal was for the Treasury to sell gold holdings to the Fed in exchange for cash. A second was for the Fed to simply extinguish some portion of its Treasury debt holdings. With one stroke of the pen, it would wipe out a big chunk of the debt and allow the Treasury to issue more. A third idea — which is making a bit of a comeback among some commentators — is to invoke the 14th amendment and declare the debt ceiling unconstitutional, as "the validity of the public debt of the United States … shall not be questioned." Others took a different tack, and argued the US should just default to force a compromise. Thankfully, none of these options were seriously pursued at the time. A wooden nickel If this trillion dollar idea sounds a bit too good to be true, it is. First and foremost, it may not be legal. The idea effectively rests on a loophole in a law that allows platinum coins to be issued by the Treasury — but for Whether legal or not, it would almost certainly provoke a bitter court battle. And at least one Republican representative, Greg Walden of Oregon, has said he would propose legislation to preclude the trillion dollar coin plan. While the Obama administration so far has not commented on the idea, in 2011 it rejected on legal grounds the idea of invoking the 14th amendment to avoid a debt limit battle. However, in early January House Minority Leader Nancy Pelosi said she would be willing to invoke the amendment "in a second." Platinum-gilded problems Taking these sorts of actions would almost certainly worsen, not ease, the coming battles over the spending — a second reason to be skeptical of the idea of the trillion dollar coin. As we have noted before, the debt ceiling is just one of three brinkmanship moments looming in the next few months. The across-the-board spending cuts that constitute the sequester have only been delayed for two months, and absent new legislation, will start in March. Even more troubling, on March 27 the latest continuing resolution ends and, absent new legislation, all nonessential government programs would have to shut down for lack of funding. Third, throwing the trillion dollar coin into this mix would not only intensify these two other fights, it would likely poison the well even further in future budget negotiations. With split government, fiscal policy making requires bipartisan agreement. The cliff compromise earned support from both parties, marking a welcome — if brief — respite from partisan politics. The last thing Washington needs is a further escalation in gamesmanship. Finally, there is a slippery slope from avoiding the debt limit to outright debt monetization. Although proponents see it as a technical fix to a problem that, in their view, never should occur, it means the Treasury would have established a precedent to thwart Congressional limitations on spending and the debt ceiling. Outside of the legal questions, nothing precludes the Treasury from issuing a coin to pay down the full $16.4 trillion in debt in one fell swoop: true monetization. A trillion dollar coin also would subvert the whole budget process, undermining already fragile public confidence and spooking financial markets. And based on the criteria put forth by the rating agencies, it would represent a stunning failure to devise credible political processes to resolve the longer-term budget issues for the US. A downgrade would very likely follow, in our view. Besides, imagine the battles over whose portrait belongs on the face. |
| These Are the People Who Will Save the System? Posted: 08 Jan 2013 04:48 PM PST
As the fiscal cliff euphoria and start of the year buying fade, investors are waking up to the fact that fundamentally nothing was fixed in 2012.
Indeed, once could easily argue that the fiscal cliff “deal” is a great metaphor for 2012 as a whole: an enormous charade played by political leaders that ultimately solved nothing and in fact left everyone worse off.
Case in point, the “deal” has somehow managed to both raise taxes and increase the deficit deficit (by $4 trillion, no less). Economically, accomplishing this should have been virtually impossible. Washington managed to do it. Many words come to mind concerning this. “Success” is not one of them.
Yet even this situation pales in comparison to that occurring in Europe today. There the political leaders are now not only proclaiming that the “worst” is over but that in fact the crisis as a whole is over.
To say this is political grandstanding would be understatement of the year so far: EU unemployment just hit a new record of 11.8%. Also, both Greece and Spain have issued reports revealing that their banks are massively undercapitalized and in fact have negative values.
The Crisis is over, but unemployment continues to grow and the banks are all insolvent. Only in Europe: a place where career politicians are caught on microphone admitting that they have no idea what the economic terms they used in a speech actually mean.
And these people are meant to not only tackle a banking crisis that makes 2008 look rosy in comparison, but somehow get 17 countries with hundreds of years of bloodshed between them to stick together as their respective economies implode?
By way of example, let’s consider Spain.
Throughout the first half of 2012, Prime Minister Rajoy denied that the country’s banks needed any aid, even going so far as to state that those who argued otherwise didn’t know what they were talking about.
Then, one of the largest Spanish banks revealed that both its balance sheet and its “profits” were total fabrications. Rajoy dealt with this situation by flying to the EU demanding a €100 billion bailout, then flying back to watch a soccer match. The next day, he then announced that Spain’s economy was in big trouble.
That is the sort of person that people are banking on saving Europe.
Good luck with that.
The only glue holding the entire financial system together is the belief that the Central Banks have this situation under control. The fact of the matter is that these institutions are largely out of ammunition and have begun resorting largely to verbal intervention as that is the only bullet left they have left.
The best example here is again Europe.
In September 2012, the ECB announced a program to engage in unlimited bond buying. This sounds convincing except that this “unlimited” quality comes only if a country formally requests a bailout from the EU.
Any country that does this will have to mean:
NO EU member wants to do one of these, let alone all three of them.
So the ECB’s announcement is really nothing other than verbal intervention. No money was spent. No new capital was raised for the banks. No national deficits or debt loads were reduced. The whole thing was just one big bluff.
Which means everything that has happened in the markets since September 2012 was based on a massive lie. Again, take a look at Spain: its bond yields fell indicating that perhaps its debt crisis was under control… except the only entity in the world buying Spanish debt was Spain itself which used up 90% of its social security fund to do this.
Spain used up 90% of its social security fund buying its own debt… and somehow things are “fixed.” What happens this year when Spain has to issue another €200+ billion in debt? Where will that money come from?
Smart investors are taking advantage of the lull in action to position themselves accordingly. On that note, if you’ve yet to prepare for Europe’s BIG collapse…we’ve recently published a report showing investors how to prepare for this. It’s called What Europe’s Collapse Means For You and it explains exactly how the coming Crisis will unfold as well as which investment (both direct and backdoor) you can make to profit from it.
This report is 100% FREE. You can pick up a copy today at:
http://gainspainscapital.com/eu-report/
Best Regards, Graham Summers
PS. We also offer a FREE Special Report detailing the threat of inflation as well as two investments that will explode higher as it seeps throughout the financial system. You can pick up a copy of this report at: http://gainspainscapital.com/gpc-inflation/
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| Posted: 08 Jan 2013 04:20 PM PST Check our website daily at... [[ This is a content summary only. Visit http://www.figanews.com for full Content ]]  |
| Posted: 08 Jan 2013 04:14 PM PST [url]http://www.traderdannorcini.blogspot.com/[/url] [url]http://www.fortwealth.com/[/url] Gold attracted relatively good buying today as it appeared SAFE HAVEN buying was back in vogue (at least for today). Chatter that I am picking up is that more investors/traders are growing concerned that we are dodged one fiscal cliff bullet only to have to face a ricochet sooner rather than later and deal with the whole problem all over again. That led to weakness in stocks (along with the idea that earnings are going to disappoint as the numbers begin coming out) and instead saw money flow back into bonds, the safe haven currencies ( the Yen and the US Dollar) and into gold. Also, anecdotal reports are coming in expressing very solid physical demand for the metal at current levels. As stated yesterday, value based buying can provide a floor of support for a market and can bottom it but it takes more than that to actually propel a market higher into a strong sustained uptrend. That requires ... |
| Gold & Silver Price Enter 2013 Supported by a Chinese Wall Posted: 08 Jan 2013 03:29 PM PST It's almost incredible … such a disconnect between the paper and physical gold and silver markets. In December 2012, we witnessed one of the most bullish possible events for precious metals with an additional monetary stimulus by the US Fed on Wednesday 12th. Since then, the gold and silver prices have been in a waterfall decline. Counterintuitive is the least one can say. To put things into perspective, we explained the view of three experts regarding that price action. The following quote from expert Ted Butler summarized it all.
The gold and silver price entered 2013 with a significant move to the upside on the first trading day, followed by a smash during the next two trading sessions. The logic question that comes to mind is if the large paper traders are continuing the paper game or if there is something wrong in the physical market. The answer to that question is very simple. Physical precious metals sales are enormous throughout the world in the first week of 2013, based on the evidence that follows. In today's precious metals report from Reuters, it appears that the Chinese are there again to buy the gold price dips. It's almost like a Chinese Wall is supporting the gold and silver prices. Reuters writes:
What's more, BullionStreet writes that The Reserve Bank of India published a report which shows that "a need to moderate gold import, as the insatiable appetite for the yellow metal could jeopardize economic stability." The US mint coin sales are an excellent gauge for the physical market. The first trading days of 2013 were enormous, both for gold and silver. The January sales figures in 2013 come already close to total month sales of the previous five years. Astonishing.
We have no physical market data out of Europe, but the Asian and US situation tell the whole story. Even PIMCO's boss (the largest bond trader) increasingly promotes physical gold ownership. It indicates that the time is coming where the West wakes up from the paper dream and realizes just like the Indians buying gold has nothing to do with spending but, instead, is the same as putting money in a savings account. As BusinessInsider notes, "even the poorest people in India buy gold, saving a little each week to buy a gram at a time." |
| An Economy That Actually Works Posted: 08 Jan 2013 03:00 PM PST It's been around longer than any official, state sanctioned economy. Call it, if you like, the "original" economy. It is resilient. It is adaptive. And it will continue to exist and thrive regardless of whatever financial crisis slams the rest of the world in the future. The French even have a word for the kinds of people who operate within it: débrouillards. The word describes particularly effective and motivated people. To call someone such is to tell them how resourceful and ingenious he or she is. They are part of the "l'économie de la débrouillardise." Or in the slang phrase used on the street, pirated from the French- speaking Africa and Caribbean… these people are a part of "Systeme D". "System D" is the economy of improvisation. In fact, a number of chefs have appropriated the term to describe the skill and sheer joy necessary to improvise a gourmet meal using only the mismatched ingredients that happen to be at hand in a kitchen. It's embodied by a meticulously organized chaos. You probably know it by another name… The "informal economy" or… "the black market". Nobel Prize-winning economist Joseph Stiglitz points out that this sector of the economy was inhabited by nearly all mom-and-pop businesses in the United States until the spread of credit cards ensured that the majority of purchases were no longer cash transactions and thus had to be reported on the books. Similarly, Robert Neuwirth had never heard of System D until he started visiting street markets and unlicensed bazaars around the globe. He was eventually enchanted. In his book, Stealth of Nations, he articulates a startling fact: "In 2009, the organization for Economic Co-operation and Development (OECD), a think tank sponsored by governments of thirty of the most powerful capitalist countries and dedicated to promoting free-market institutions, concluded that half the workers of the world — close to 1.8 billion people — were working in System D: off the books, in jobs that were neither registered nor regulated, getting paid in cash, and most often, avoiding income taxes." Not only is it largest sector of the economy, it's also the fastest growing. He continues… "In many developing countries — particularly in the developing world — System D is growing faster than any other part of the economy, and it is an increasing force in world trade. What's more, after the financial crisis of 2008/2009, System D was revealed to be an important financial coping mechanism. A 2009 study by Deutsche Bank, the huge German commercial lender, suggested that people in the European countries with the largest portions of their economies that were unlicensed and unregulated — in other words, citizens of countries with the most robust System D — fared better in the economic meltdown of 2008 than folks living in centrally planned and tightly regulated nations. Studies of countries throughout Latin America have shown that desperate people turned to System D to survive the most recent financial crisis." Throughout the book, it will amaze you how desperate yet successful his aspiring real-life characters are. Now I know what you have probably been thinking… As you can imagine, System D maintains legitimate "employees" of merit and integrity, but these people often cross paths with legitimate criminals. In the words of Neuwirth, "Finding a dividing line is not easy… it's very difficult to separate the nice African ladies selling oranges on the street and juggling their babies on their backs from the Indian gangsters who control the fruit trade and who they have to pay rent to". The important question is: has it always been this way? In most ways… yes. But there are differences, and the most important one is globalization. In particular, the rise of globalization marks the rise in counterfeiting of goods. China is in fact the counterfeit capital of the world, accounting for 8% of China's GDP. And I don't have to tell you who they're selling their goods to… In a detailed breakdown of the counterfeit goods industry, the total loss faced by countries around the world is $600 billion, with the United States facing the most economic impact. While counterfeit money is the most popular product counterfeited, and is most aggressively attacked by governments, the federal crackdown on counterfeit imports has been harsh enough to actually drive an increase in domestic output of fake merchandise from the United States. But the most nefarious of all these counterfeiting schemes is the fake pharmaceutical industry. The US is an especially attractive market in this area, because 40 percent of worldwide annual prescription drug sales were made in the United States in 2007… and between 2002 to 2010, drug imports to the US more than doubled, with 80 percent of drugs' active ingredients imported, now accounting for 40 percent of finished medicines. The new technologies that have enabled globalization act as a double-edged sword. Fortunately, there are countless ways to make money off of solving the world's problems. And while counterfeiting has become a more sophisticated problem, there are brilliant minds advancing more sophisticated solutions. The question remains: can we adopt the ingenuity and improvisation of a System D "professional", and create solutions as quickly as we created problems? Regards, Josh Grasmick An Economy That Actually Works appeared in the Daily Reckoning. Subscribe to The Daily Reckoning by visiting signup for an Agora Financial newsletter.        |
| We’ll See Breathtaking Moves In Stocks, Gold & Silver in 2013 Posted: 08 Jan 2013 02:29 PM PST  On the heels of some wild trading action this past week in the gold, silver and stock markets, today 56-year market veteran and analyst Ron Rosen sent King World News a fascinating piece. Rosen states that we are headed for some extremely violent trading in stock markets this year, but he believes gold and silver will begin a dynamic rise in 2013. Nick Laird from ShareLynx assisted Rosen by putting together some fantastic charts for this piece.This posting includes an audio/video/photo media file: Download Now |
| Keep the Faith ? This Bull Market in Gold STILL Promises to Be One for the History Books! Here?s Why Posted: 08 Jan 2013 02:26 PM PST [B][B]Register [/B][/B]to [B][B][B][B]"Follow the munKNEE"[/B][/B][/B][/B] and automatically receive all articles posted Seeing the S&P 500 outperform gold and seeing gold stocks get decimated…has been*enough to create suicidal sentiment…in the precious metals (PM) sector…but, as the many calls for an end of the PM bull market…[are expressed,] the risk in the PM sector gets lower and lower. The bigger picture hasn’t changed and isn’t going to for some time [so] keep the faith and hold onto your PM sector items tight. Don’t let the short and intermediate-term noise distract you from what*STILL promises to be a secular bull market for the history books. The Dow to Gold ratio will hit 2 and might even go below 1 this cycle. [Let me explain.] Words: 873 So writes Adam Brochert ([url]http://goldversuspaper.blogspot.com[/url])*in edited excerpts from his article* entitled 2013 – The Year of the Gold Bull?. [INDENT]*This article is presented ... |
| Gold Daily and Silver Weekly Charts Posted: 08 Jan 2013 02:24 PM PST  This posting includes an audio/video/photo media file: Download Now |
| Gold Seeker Closing Report: Gold and Silver Gain Almost 1% Posted: 08 Jan 2013 02:11 PM PST Gold chopped its way higher throughout most of world trade and ended near its early afternoon high of $1662.33 with a gain of 0.72%. Silver surged to as high as $30.534 and ended with a gain of 0.73%. |
| Special GoldSeek.com Event: “What’s in Store for Gold Stocks in 2013? A Look at the Charts” Posted: 08 Jan 2013 02:05 PM PST GoldSeek.com will hosting a special 30 minute online event with Rick Ackerman of Rick's Picks this coming Wednesday, January 9th starting at Noon Eastern, 9 am PST. GoldSeek.com readers will be able to attend this free online session with Rick Ackerman covering Gold Stocks in 2013, a technical look at the charts. |
| Posted: 08 Jan 2013 02:00 PM PST Gold Resource Corporation ( NYSE MKT : GORO ) (the Company) today announced high-grade mineralization at its Las Margaritas property with drill intercepts including 2.85 meters of 27.90 grams (0.89 ounces) per tonne gold and 2600 grams (84 ounces) per tonne silver. Gold Resource Corporation is a low-cost gold and silver producer with operations in the southern state of Oaxaca, Mexico. |
| Posted: 08 Jan 2013 01:53 PM PST "Six forty-five? Ok, that sounds good." "No, he said six eighty-five." "Six eighty-five? Seriously? Wow…that happened quickly." Had you been standing in the currency exchange joint across the street from your editor's place of work yesterday around, (…say…) 1pm, you might have caught ear of the conversational snippet, above. It occurred between a couple of turistas permanentes who had ventured off the beaten track in search of a more favorable exchange rate for their US dollars. The official, en blanco, rate of exchange is 4.94 pesos per greenback. But nobody believes this baloney. Neither buyer nor seller. Not for a second. Dollars are a hot commodity here in Latin America's third-largest economy, thanks to the government's pathological printing press abuse. The president of Argentina's Central Bank (BCRA), Mercedes Marcó del Pont, is an inflationista in every sense of the term. She is a thief, in other words…one who perpetrates a crime against the very poorest people in the country, those least able to absorb the idiocy of her monetary policy into their meagre, defenseless budgets. Marcó del Pont is no common thief, of course…one who politely agrees to take your photo before dashing off with your camera. She is no bag snatcher or pickpocket…but rather a bandit of academic proportions, a grand larcenist who undercuts the value of the nation's currency by liberally adding to its supply. "Like her fellow counterfeiters further north," your editor observed in this space last year, "Argentina's 'Fed Head' maintains a steady program of peso 'creation' while bamboozling the population with the kind of nonsensical justifications only a career academic-cum-politician could hope to conjure." In a breathtaking denial of the root causes underpinning her nation's woeful currency history, Marcó del Pont told reporters last year, "It is totally false to say that printing more money generates inflation. Price increases are generated by other phenomena like supply and external sector's behavior." "Phenomena like supply" is correct, we remarked at the time… "specifically the supply of freshly inked fiat notes issuing forth from Marcó del Pont's printing press." How does this work again, Fellow Reckoner? Ah yes… The favored few at the top, the politically connected who are granted advanced access to the damp-inked dough, are able to benefit by spending it first, by injecting it into the system before it has been devalued. Those who find themselves at the tail end of the queue…the ordinary, working folk trying to make ends meet…it is they who feel the pinch of their government's "trickle down inflation" policy. These are the poor sods who live paycheck to paycheck, for whom 10% inflation means a tenth less food…a tenth less shelter…a tenth less…everything. Of course, inflation is not running at a rate of 10% per annum, as the government slyly claims. And here again, nobody believes their demented narrative anyway. Estimates by private consulting firms, like the one against which the government leveled criminal charges last year, put the figure closer to 25-30%. Even this seems low. For those who do have any savings to speak of, they are rapidly dwindling in value. Unsurprisingly, therefore, local porteños pay a healthy premium to escape their government-tortured pesos, driving the price of foreign currency — the US dollar in particular — higher and higher by the day. The papers here yesterday noted that the spread — la brecha — between the official and unofficial dollar-peso exchange rates had reached a record of 42.7% (from 4.94 pesos to the dollar officially to over 7 pesos per dollar "en blue.") It is truly a tale of two parallel, though necessarily-interconnected, markets. One brims with lies and government statistics (but we repeat ourselves), the other is populated by fleeing individuals, desperately responding to injustices foisted on them by their kleptomaniacal leaders. It's one game for the looters, another for those trying to escape. Or rather, it is two aspects of the same game…opposite sides of a single, increasingly-debased coin. Joel Bowman Argentina's "Dólar Blues" appeared in the Daily Reckoning. Subscribe to The Daily Reckoning by visiting signup for an Agora Financial newsletter.      |
| HEART OF GOLD – 40 YEARS LATER Posted: 08 Jan 2013 01:43 PM PST |
| CPM Platinum Market Analysis and Forecast for 2013 Posted: 08 Jan 2013 01:37 PM PST Violent strikes and supply disruptions in South Africa put platinum in the headlines last year, and the metal spent 2012 selling at a discount to gold. Is a platinum discount the new normal? How will the market shift in the labor strike fallout? And will mining asteroids transform supply fundamentals? CPM Group Platinum Analyst Erica Rannestad met with The Metals Report to share her price and cost forecasts for 2013 and discuss the supply and demand trends to watch this year. |
| Posted: 08 Jan 2013 01:20 PM PST January 8, 2013
Before we get started today, you should know our lead subject is so controversial we've taken the unusual step of concealing the identity of the writer we contracted to research it. "It's the biggest discovery in the history of modern medicine," our researcher announced recently, "if not medicine itself." Last week, we touched on its implications briefly and promised to reveal a video clip with mind-blowing proof. As a disclaimer, we also warned that some might take offense to the nature of the video. (If you didn't catch it in your inbox, you can find it here.) Let's begin with a practical application.
Despite the controversy that surrounds this company and its research, "The vision of this project is as grand as those behind Google and Amazon," says Patrick.
"As such," he goes on, "this authoritative source is enormously useful to researchers, corporations and students. However, it is much more, because it provides researchers with access to research products associated with the subjects being researched. As such, it is sort of a combination of Amazon and Wikipedia." The project has vast implications for the way information is spread through multinationals, labs and research facilities at universities around the globe. But that's only one market the company holding the IP has set out to dominate. Another project along a similar vein has the potential to flip a genetic switch within our DNA. Hence, the "God Switch."
That makes the cells, essentially, immortal. "Indeed," our secretive researcher writes, "every time the God Switch is flipped, it returns the aged, tired, worn-out cells of your body to the biologically pristine state they were on day one — the day you were born." I'm sure you can imagine how this could cause controversy. But offensive or not, the company has already been granted hundreds of patents for the "God Switch," and the wheels are in motion to bring this to the mainstream.
He will also reveal why the short video below is causing mountains of controversy — and could potentially cause mountains of profit for those who get in at the best time possible… before the video becomes mainstream and the stock flies through the roof.
"At some point, all of that missed opportunity is going to be tough to ignore for the folks sitting with their cash on the sidelines. And that, in turn, should help to fuel stock buying in 2013." In the last few years, Jonas explains, most investors have been stuck between a rock and a hard place: "Would you rather park your cash in Treasuries and guarantee your principal slowly gets eaten away by inflation or put your money in stocks and get a potentially higher return in exchange for more risk? "A glimpse at Treasuries over that time period tells you which option most folks have been choosing — by now, you know that it's not stocks."
"That's even more evidence piling up that we're experiencing a historic sentiment swing against stocks right now, and a stronger contrarian case that we're due for upside this year." [Ed. Note: Our trend analysts haven't lacked for opportunities in the past year: 11% on a snack maker... 17% on a hated solar company... and 30% on the equally hated BlackBerry maker Research In Motion -- each in 21 days or less. And today, they've created a way for you to take advantage of all of their recommendations for less than it costs to watch CNBC, here.]
"The Greek economy was in deep crisis. Mass protests choked the streets of Athens. As 2012 loomed, thousands marched on the Greek Parliament building. Some threw Molotov cocktails. Police responded with tear gas. By February 2012, half a million people gathered in protest. Who could've worked up the courage to buy Greek stocks with all that going on? "Yet Greece's stock market was among the best-performing in the world last year, up 32%. And the crisis is ongoing."
"Neill wrote a little book called The Art of Contrary Thinking in 1954. As Neill frames it, the art of contrary thinking was to get in the habit of asking questions of the consensus such as 'Suppose the opposite is true, then what?' "Consensus has the European economies shrinking and ill winds blowing across its markets for years to come. "Maybe so," he says, and many would say this is a clear sign to steer clear. Supposing the opposite is true? Just as in the case of Greece, Chris explains, "Crisis creates fear, and fear means low prices. Low prices turn, later, into fat returns for investors." For a list of contrarian bets Chris has on the table right now, click here.
"Behind the scenes," The New York Times reports, "the restored insurance company is weighing whether to tell the government agencies that rescued it during the financial crisis: Thanks, but you cheated our shareholders." Tomorrow, according to court records, the board of AIG will meet to consider a $25 billion shareholder lawsuit against the government. Heh.
"Despite their large energy savings," professor Miriam Rafailovich from Stony Brook University told Sciencedaily.com this week, "consumers should be careful when using compact fluorescent light bulbs." To test the bulb's safety, researchers at Stony Brook University exposed healthy human skin cells to CFL light and compared it with the effects of the incandescent light bulbs. "Our study revealed that the response of healthy skin cells to UV emitted from CFL bulbs is consistent with damage from ultraviolet radiation," professor Rafailovich explains. "The results were that that you could actually initiate cell death," another researcher, professor of dermatology at Stony Brook Marcia Simon, told CBS Miami. The Stony Brook team believes they've found the culprit: "In every bulb that researchers tested," reports CBS, "they found that the protective coating around the light creating 'phosphor' was cracked, allowing dangerous ultraviolet rays to escape." And the incandescent bulbs' effect on healthy cells? Zilch.
"The problem with the bulbs," executive director of the Solid Waste Association of North America, John Skinner explains, "is that they'll break before they get to the landfill. They'll break in containers, or they'll break in a Dumpster or they'll break in the trucks. Workers may be exposed to very high levels of mercury when that happens."
Throw in the numerous reports floating around the news feeds of the new bright bulbs exploding without warning and we're even more thankful that Congress has taken upon itself the responsibility of protecting us from those dastardly old yellow bulbs. [Ed. Note: What business does Congress have meddling in the market for retail light bulbs, anyway? In today's 5 Min. Forecast PRO, below, we feature four stocks you should avoid. All four companies have powerful enemies in high office taking actions to put them out of business... and creating "value traps" for unsuspecting investors. See below.]
Two readers with similar senses of humor and impeccable timing brought this to our attention:
The 5: Well, that's one option. "For five years," Laissez Faire's Jeffrey Tucker wrote yesterday of the long buildup to a spat between economists Brad DeLong, Paul Krugman and our friend Robert Murphy, "[DeLong and Krugman] have engaged in an unrelenting rhetorical ploy. When there's good economic news, they say: Look how government intervention worked! When there's bad economic news, they say: We told you that there needed to be more government intervention! "It's pretty clear that no existing reality will ever shake their faith in the power of government to cure all ills through regulations, inflation, spending and taxation. It's an infallible doctrine. "It's been fascinating to watch mainly for one reason. Those of us with a non-Keynesian understanding of economic processes knew all along that the post-2008 stimulus would not fix the problem, and would actually end up doing more damage. The proponents like DeLong and Krugman — two among multitudes — said repeatedly that only government measures would cure the problem. "Then at year's end, both blew a gasket. "DeLong went first. He called out Murphy on his prediction that we would see 10% price increases by 2013, and further drew attention to a $500 bet that Murphy made with economist David Henderson on this point. Then Krugman jumped in too, further flogging Murphy. Both said that Murphy needs to apologize to his readers and rethink his entire worldview." Our crew at Laissez Faire is currently in production on an educational video series with Robert Murphy on Austrian business cycle theory, in which he will most assuredly not apologize for his entire worldview. But will do just the opposite… and help you understand how the business cycle theory works and understand booms and busts in the economy. And plan accordingly. Stay tuned.
"We all know you're in business to make money. We don't begrudge you that. Really! "However, you know what concise means, and I'll bet you appreciate concise yourself. Yet you have people write email ads and produce video ads that are just about the most extreme possible instances of nonconcise. They repeat the same thing over and over and over and over and over and over and over… getting tired of this yet? We sure do! "So I challenge you to create a few of the most extremely concise ads anyone has ever created. Try them. See if they work [nearly] as well as the insanely long and repetitious ads you guys created. You might find that we appreciate concise ads as much as we appreciate The 5 for being concise. "Also, we'd appreciate if you'd stop calling things free that aren't free… that require we purchase something else in order to get the 'free' item. That is as low-class as it is common. Stand above the riffraff, don't copy them. At least try it out." The 5: The debate between "long copy" versus "short copy" is as old as the direct response industry itself, dating back to Sears, Roebuck catalog mailings in the late 1890s. Long copy always wins. "The more you tell, the more you sell" is an industry mantra among copywriters. But far be it for us to rest on our laurels. We try to make "short" copy work on a regular basis. We'd rather write shorter, "more concise" promotional pieces ourselves! First attempt: Heaven's Been Robbed! Second attempt: Storm Signals: Cheaper Than CNBC! Third attempt: 13th Annual Investment Symposium: In HD! If you vote with your wallet, maybe together we can reverse the 130-year-old trend. We'll share our results with you for free. Cheers, Addison Wiggin P.S. We're already sensing an endgame for the debt ceiling drama in Washington this morning, before it even gets under way. Follow along: Yesterday the president nominated former Nebraska Sen. Chuck Hagel as secretary of Defense. It's a "controversial" choice mostly because Hagel doesn't march lock step with the bipartisan Israel-right-or-wrong consensus in Washington. Now, we're not going to make a prediction per se, but we'll venture a guess here. If the nomination runs into trouble, there will be another backslapping meeting between Joe Biden and Mitch McConnell — much as there was leading up to the "fiscal cliff" faux solution last week. The deal: The administration kicks Hagel to the curb… and Senate Republicans roll on raising the debt ceiling. The House will likely go along; even though it doesn't vote on cabinet nominations, House Majority Leader Eric Cantor is raising a squawk about the Hagel pick. Meanwhile, if Hagel gets through, the empire keeps on truckin': Spencer Ackerman at Wired casually examines the record: "Spying on Americans' communications without warrants? Have at it, said Hagel. A ballistic missile shield? Yes, please, and who cares if it angers the Kremlin. NATO's 1999 war in Kosovo? Hagel was willing to flood it with U.S. soldiers." All the more reason to "make the empire pay," we say. We're hard at work on the next issue of Apogee, in which we make several recommendations for doing just that.        |
| Posted: 08 Jan 2013 12:58 PM PST Register to "Follow the munKNEE" and automatically receive all articles posted Seeing the S&P 500 outperform gold and seeing gold stocks get So writes Adam Brochert (http://goldversuspaper.blogspot.com) in edited excerpts from his article* entitled 2013 – The Year of the Gold Bull?.
Brochert goes on to say, in further edited excerpts: The bigger picture hasn't changed and isn't going to for some time: a major private sector secular economic contraction in the West being fought with manufactured money/credit units by governments and central bankstaz. This is not a period to favor paper, as reflected by common stocks, over gold. My trade of the year for 2013 is the same as my favored trade back in August: go long the "Gold to Dow" ratio (or short the "Dow to Gold" ratio). The S&P 500:Gold Ratio The secular chart of the S&P 500 (a broader index) to Gold ratio shows that time has run out for the paperbugs on this correction [go to StockCharts.com for an updated version of the chart below]: [While] such a ratio chart doesn't tell us anything about nominal prices of either of these items, it does tell us that a shiny piece of metal, with no dividends or growth prospects, should continue to trounce the wizards of Wall Street over the next several years. This is the forest one does not want to lose sight of the next time Warren Buffett talks about how perplexed he is by gold. Perhaps Warren should have listened to his father, Howard (a congressman), a little more:
Now, I am not interested in politics, as I fully expect politicians to play their role and do the exact opposite of the right thing regardless of which party or platform they claim to represent. I also don't believe that a gold standard can fix the world's problems, as governments controlling money is the problem, not the form of monetary system governments foist upon the masses. In most countries in the world currently, one is free to save in gold rather than paper currency, which is the important thing for pragmatists like myself but if one uses history as a guide, I think Howard Buffett was closer to the mark than his son Warren. In any case, gold will win over Warren and his paperbug minions this cycle because it is simply the time for this to occur. Cycles in markets exist much like cycles in nature, as financial markets are but a manifestation of the thoughts and emotions of one of nature's more curious species. We are in a secular fear and uncertainty cycle for conventional financial assets, which benefits gold. Gold Moving from the philosophical to the tactical, now is the time to be bullish on gold and its derivatives, not bearish. The intermediate term correction from the fall 2012 highs in the PM sector was much longer and deeper than I thought it would be, but we are where we are now. Keeping a healthy perspective on the intermediate term, the current set up is much more likely to lead to a bullish outcome than a bearish one. Here's a 12 year weekly chart of gold [go to StockCharts.com for an updated version of the chart below] to show you what I mean: The Explorer/Small Cap Mining Sector The beleaguered gold stock sector is also oversold and significantly undervalued for the 3rd time in the past year….Using the GLDX ETF as a proxy for the explorer/small cap gold mining sector, here is the weekly price action over the past few years [go to StockCharts.com for an updated version of the chart below]: Conclusion I remain wildly bullish on the whole PM sector. Cycles in markets exist much like cycles in nature, as financial markets are but a manifestation of the thoughts and emotions of one of nature's more curious species. We are in a secular fear and uncertainty cycle for conventional financial assets, which benefits gold. Keep the faith and hold onto your PM sector items tight. Don't let the short and intermediate-term noise distract you from what still promises to be a secular bull market for the history books. The Dow to Gold ratio will hit 2 (and we may well go below 1 this cycle). *http://goldversuspaper.blogspot.ca/2013/01/2013-year-of-gold-bull.html (If you would like some assistance navigating the PM sector with an orientation towards trading the intermediate-term swings, I publish a low cost subscription trading service that is only $15/month. Adam Brochert – abrochert@yahoo.com)
Related Articles: 1. Alf Field: Once $1,800 Is Taken Out Gold Will See a Vigorous Climb to $4,500 Area
There is a high probability that the correction in the gold price that started in early October at $1797 has been completed. Once $1800 is taken out on the upside the gold chart will look tremendous. A beautiful "cup and handle" base would then provide strong support for a vigorous upward climb in the precious metal. At this stage there is no reason to abandon the rough target of $4500 for this coming upward wave. [Below is my analysis and some charts on the situation.] Words: 434; Charts: 2
5. The Charts Tell ALL and THIS Is What They're Saying About Gold & Silver for 2013
6. What, Me Worry? Not When You Look at These Monthly Gold & Silver Charts
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Since the last time I reported the occurrence of slower deliveries of some 
Been busy? Not to worry. Here are introductory paragraphs and links
He's dubbed it the "
Federally mandated mercury?If mercury-enriched landfills don't give you goose bumps, Skinner assures us there's also a danger of contaminating residential soil from prematurely broken bulbs. Not to mention the water supply.
Our subscription service provides detailed technical analysis of where the price of gold, silver and precious metal stocks are going short term (in the next week or two), intermediate term (within the next 3-6 months) and long term (the ultimate top) in each stage of their respective bull runs. This service comes with detailed charting based on conventional technical analysis and our proprietary fractal analysis based on the '70s. Below are some of our latest comments and rationale for expected price movements in gold without illustative charts which are only available to subscribers. Words: 1000
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