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Tuesday, January 8, 2013

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Gold regains lost ground on strong physical demand

Posted: 08 Jan 2013 03:16 PM PST

Prices rose above $1,655 an ounce, with dealers reporting signs of strong demand from India and China, the world's two biggest gold buying nations.

Surging Chinese gold trades buoy Shanghai Gold Exchange

Posted: 08 Jan 2013 12:52 PM PST

Record trading volumes on the Shanghai Gold Exchange in the first few days of the year presage burgeoning Chinese demand for the precious metal ahead of the Lunar New Year.

What you need to know before buying super-cheap gold stocks today

Posted: 08 Jan 2013 12:19 PM PST

From The Gold Report:
 
What if the shockingly low valuations of some junior mining companies are really all they're worth? As the market shakes off years of exuberance, Brent Cook, co-editor of the Exploration Insights newsletter, searches for the truly undervalued – finds as rare as gold itself. In this interview with The Gold Report, Cook talks about high-margin deposits that the rest of the market can't see.
 
The Gold Report: Brent, 2012 was difficult for many gold investors, and you paint a pretty bleak picture for certain junior mining companies in 2013 as well.
 
Brent Cook: We've actually had two pretty tough years on the TSX Venture Exchange. It is off about 30% from its peak in 2012 and around 20% for the year. That comes on top of a 35% decline in 2011. I do think much of the froth is washed out and we will see some opportunities in 2013.
 
During the most recent boom years, 2009 and 2010, roughly $11 billion ($11B) was raised on the Venture Exchange. Most of that has been spent without much success.
 
Going by John Kaiser's database of about 1,800 Venture Exchange listed companies, there are around 600 that now have less than $200,000 in the bank and a full 62% of the 1,800 companies have a median working capital of only $1.1 million ($1.1M) or less.
 
These companies are trading at less than $0.20/share, which means that unless things improve dramatically in the next year, many of these companies are going out of business or will push excessive dilution on current shareholders just to stay alive. The Venture Exchange will truly be the land of the walking dead.
 
This coming year will be a cleaning-out process that in the long run is good for the sector...
 
 
More on gold stocks:
 
 
 

"Dr. Doom" Marc Faber: The No. 1 reason to own gold today

Posted: 08 Jan 2013 12:19 PM PST

From Newsmax:
 
Although gold prices might continue to drop, as the collapse of the U.S. dollar is not imminent, Marc Faber is not giving up on the precious metal.
 
"I just think that government will print money and that there will be competitive devaluation, and so I want to have gold as an insurance policy," he told CNBC.
 
Gold prices probably won't increase soon and there may be a correction of "10 percent or so on the downside," said Faber, managing editor and publisher of the Gloom, Boom, and Doom Report.
 
He noted that he feels "deeply uncomfortable" about the future of the global economy, the geopolitical situation, and social unrest in different countries.
 
"I don't particularly like any assets at this stage. I mean, I have a diversified portfolio, I'm not liquidating anything, but I have a lot of cash."
 
In his January Market Commentary, Faber predicted that gold would fall to $1,550 to $1,600 an ounce, according to CNBC. Still, he wrote that he planned to increase his gold position on any further weakness, despite his concerns that strength of the U.S. dollar could be a headwind for a strong gold rally.
 
A growing number of banks have cut their outlook for gold... 
 
 
More from Marc Faber:
 

Trader alert: This group of stocks could be 2013's early winner

Posted: 08 Jan 2013 12:19 PM PST

From All Star Charts:
 
We've seen some interesting developments out of small-cap stocks over the last week. On Thursday, we mentioned that the S&P Small-Cap 600 Index had closed at all-time highs, along with the S&P Mid-Cap 400.
 
This is definitely a time where we'd expect the little guys to outperform, as the January Effect is in session. As we've discussed, there is the tendency for small-caps to outperform large-caps towards the end of the year and beginning of the next. So it should come as no surprise that the Russell 2000 Small-Cap Index ($RUT) was also able to reach record highs last week.
 
But I think that the chart of the week has to be the breakout in the Russell 2000 relative to the S&P 500. As we can see, after 18 months of underperformance, the small-caps are finally breaking out against...
 
 
More trading ideas:
 
 
 

African Barrick Gold/China National Gold deal dead in the water

Posted: 08 Jan 2013 12:13 PM PST

The long running negotiations between Barrick Gold and China National Gold over the former's African Barrick Gold (ABG) subsidiary have fallen through and ABG's share price has dived as a result.

U.S. Gold Eagle sales start year up by one third; Silver Eagles fly to new record

Posted: 08 Jan 2013 11:59 AM PST

Opening day sales for American Gold Eagle and Silver Eagle coins are up 33 and 23% respectively on opening day sales a year ago.

Gold rises above $1,650/oz as stock markets recover

Posted: 08 Jan 2013 11:43 AM PST

The gold price climbed above $1,650/oz on Tuesday, helped by a recovery in stock markets and a rise in physical demand after a three-session price fall.

Hong Kong/China Nov gold flow hit 2nd level highest in 2012

Posted: 08 Jan 2013 11:42 AM PST

Hong Kong exported 90.763 tonnes of gold to mainland China in November 2012, an increase of 91% on the month.

Gold 2012 – 2013 New year outlook & review

Posted: 08 Jan 2013 11:23 AM PST

A look into the past, present & future gold trend compiled by Michael J. Kosares, editor of USAGOLD - PAST – 2012 price point timeline by Jonathan Kosares 1 January 1 – Gold begins year at 1562.10 2 January 25 – President's state of the union address – Fed extends low rate pledge to 'at least [...]

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

Has Anything Changed At Goldman Sachs?

Posted: 08 Jan 2013 10:36 AM PST

By Shock Exchange:

The financial crisis of 2008 was exacerbated by the banking industry's trillion dollar bet on the housing sector. Leading up to the crisis investment banks like Bear Stearns, Lehman, Goldman Sachs (GS), and Morgan Stanley (MS) managed proprietary-trading portfolios of approximately $138 billion, $270 billion, $400 billion and $380 billion, respectively. Instead of funding these portfolios through retained earnings, these firms borrowed commercial paper and other indebtedness that led to gross leverage ratios ranging from 32.8x (Bear) to 23.4x (Goldman). When those proprietary-trading portfolios turned sour, Bear was acquired by JP Morgan Chase (JPM) in a transaction backstopped by $29 billion in government funds; Lehman filed the largest bankruptcy in U.S. history ($691 billion), and Goldman and Morgan Stanley were spared a "run on the bank" via injections of tens of billions in TARP funds.

Skirting The "Volcker Rule?

In 2009 Federal Reserve Chairman Paul Volcker suggested that Goldman and


Complete Story »

Hong Kong's Gold exports to China surge 91% in November

Posted: 08 Jan 2013 10:11 AM PST

Hong Kong exported 90.763 tonnes of gold to mainland China in November, an increase of 91% on the month. Its gold imports from China rose 23% to 27.681 tonnes.

Stewart Thomson: Silver And Bank Stock Lovebirds

Posted: 08 Jan 2013 09:54 AM PST

Submitted by Stewart Thomson: At this point in time, silver is my "metal of choice" for fresh buys.  After bursting above the black downtrend line, the breakout was confirmed by a 14,7,7 Stochastics series crossover buy signal.  It's normal to take several weeks, or even longer, for intermediate trends to really get going, after such [...]

It's Nice To Be A Dillard At Dillard's

Posted: 08 Jan 2013 09:40 AM PST

By GMI Ratings:

By Damion Rallis, Senior Research Associate

While share prices at retailer Dillard's, Inc. (NYSE:DDS) continue to soar to unprecedented levels, recent events serve as a reminder that the company's long-term prospects may be muddled by a self-serving ownership and leadership structure dominated by Dillard family members. Despite a recent $5 special dividend along with impressive year-over-year and third quarter results, a sagging retail industry, active insider trading, and another multi-million dollar fine for discrimination remind us why, only five years ago, investors were calling for the end of Dillard-family control.

At GMI Ratings, we have identified several red flags that contribute to an ESG Rating of "D" and a Litigation Risk Model assessment of "Moderate Risk." In our view, while recent trading history at Dillard's shows a clear potential for short-term gains, the company's governance profile could pose material roadblocks to long-term prosperity.

At the end of November, Dillard's


Complete Story »

The secret to retiring in 5 years [with just $10K]

Posted: 08 Jan 2013 09:32 AM PST

If your portfolio has gone nowhere in the last five or 10 years,
you're not alone. Even after the lost decade from 2000-2009, most investors have barely taken advantage of the recovery in the years since then. What about you? What if—with just $10K in your trading account—you could potentially retire in just five short years?

The link below will show you how it's possible.

http://www.1shoppingcart.com/app/?af=1490136&u=http://marketauthority.com/speedretirement/join/

When you watch the video that's accessible on the next page,
you'll not only see how Ian Cooper won 76.2% of all trades since
2007, averaging a 32% gain (including all losers), but you'll also
discover how YOU could have potentially turned $10,000 into over
$704,000—and then possibly use that capital to produce a
six-figure income in your retirement.

Granted, the next five years trading might not perform as well…
and you may not earn even 10% of the return Ian has. Yet, if it's
clear to you that traditional retirement is dead, and faster is
better, then you'll want to watch every minute of his informative
presentation.

Click the link below to watch it before it's taken down.

http://www.1shoppingcart.com/app/?af=1490136&u=http://marketauthority.com/speedretirement/join/

You'll learn about using exclusive speed retirement strategies,
coupled with "hyper-compounding." That way, the next 5-10 years
might be all you need to live the rest of your life without work,
investing, or fear of not being retire comfortably.

You have nothing to lose, and the possibility of a much faster
retirement to gain. But only when you click one of the links
above and take action on what you discover.

All my best,

Jeff–Non Stop Gold

Jim Rogers : I will Buy more GOLD , If America bombs Iran

Posted: 08 Jan 2013 09:16 AM PST

Jim Rogers : I own gold and I own silver. I own all the precious metals, especially gold and silver. I'm not sure I would buy right now. Gold has gone up 12 years in a row, which is extremely unusual for any asset, at least in my experience. I don't know any asset that's gone up 12 years without a down year except gold. Gold has had only one decline over 30 percent in those 12 years. That, too, is extremely unusual. Plus, if you look at the open interest from the CFTC, the speculators have been piling into gold. The number of call options is more than twice the put options. All the signs are that there's too much speculation in gold right now. I'm not selling, by any stretch. I own it. If it goes down, I'll buy more. If America bombs Iran, I'll probably buy more going up. But I own it and, over the longer term, gold is going to go much higher because the world is doing nothing but printing money. And when the world economies get bad again, they're going to print even more money. But I'm not buying now.

Gold Report Sign Up Below

Don't fight the Fed!…..?

Posted: 08 Jan 2013 09:15 AM PST

I can remember the words way back at the beginning of my career in 1983, "Don't fight the Fed."  In fact, I can remember my "Money and Banking" professor telling us this in 1981 during the depths of that recession.  It made sense while I was a wet behind the ears college student.  It made sense as to me as a "green" stockbroker just starting out but as the 80′s progressed, some things just didn't make sense to me anymore.  I saw people who couldn't rub two nickels together all of a sudden moving into big new houses with brand new cars and $100,000++ boats covered up in their backyards during the winter.  I was thinking "What the heck?"

I figured out early on that "debt" was the source of everything when it came to "the good life."  I watched the '91 recession get aborted and again in '96-97 which then turned into the internet bubble.  Then came the bust of the stock market and the 2001 recession which was also aborted by another reflation.  At this point ('98-99), Gold was trading below $300 while the cost of production was around $335 per ounce, it just didn't make sense.  But still in the back of my mind I was thinking about this phrase "Don't fight the Fed."  "Value" took over and my decision was to go all in and "Fight the Fed!"

Looking back, the choice was either buy Gold or short Treasury securities (bet on interest rates to go up).  Either choice was equally "fighting the Fed," however, with shorting Treasuries you have already been taken out behind the woodshed and shot right between the eyes.  Buying Gold?  It worked, and quite well.  But here we are with interest rates (at ridiculously low levels) finally beginning to rise and some calling "triple top" on the bond market.  Should you now "short" the bond market?  In my opinion there is very little risk to this strategy but… BUT, what is your upside?  Without leverage all you can "win" is 100% AND guess what?  You "win" Dollars!  This is like going to a carnival and playing one of their games.  Most people spend $10 and never win but you are excellent at the "ring toss" or whatever, you only spent $1 yet… you win a $2 teddy bear.

"Fighting the Fed" by purchasing Gold is an entirely different game, here you spend $1 Dollar to "play the game" and you don't win some crummy teddy bear.  You don't even win ALL the teddy bears behind the counter.  No, you win the whole carnival!  I am not being overly dramatic here, I assure you.  When the system comes down, you could have MILLIONS in the bank and still be a complete loser.  Your bank could (will) fail, FDIC will pay ($250,000) and you will be in financial tatters because $250,000 will not even buy a wheelbarrow by the time this whole episode is over.

"Dramatic" on my part?  No, The Fed is now at this point THE biggest buyer of Treasury securities in the world.  Everyone else has stepped back either because they understand the game or because they don't have the "cash" to invest.  Yet, the "game" by definition HAS TO keep getting bigger and BIGGER.  If you don't or can't see the mechanics that the "game" is a Ponzi scheme, all you need to know is that the basic tenet of a Ponzi scheme is that it get bigger and bigger… which is exactly what the Fed is doing in support of the Treasury department's unending hunger (now by necessity) to borrow more at an exponentially greater rate.

My point is this, you absolutely must for your own survival "fight the Fed."  Yes, you can play along with their game and maybe (if you are good) "win Dollars" but at some point the game mathematically HAS TO END!  Oh and by the way, when the game does finally end?  You won't even be able to exchange your "winnings" for a simple teddy bear.  On the other hand you could win "all the marbles" and be a part (have a real and true financial vote) in the upcoming new monetary system.  If you are going to fight the Fed (which your financial survival depends on), do it right!

Similar Posts:

US Mint Sells Nearly 4 Million Silver Eagles in 1 Day- An All Time Record!

Posted: 08 Jan 2013 09:00 AM PST

In mid-December, the US Mint announced the suspension of Silver Eagle sales for 3 weeks, as they shut down ASE sales early for 2012, and announced that sales of 2013 Silver Eagles would begin on 1/7/2013. For the first week … Continue reading

Gold is first shelter for countries like Iraq

Posted: 08 Jan 2013 08:50 AM PST

Iraq is probably the country that is most in need of a great deal of gold reserves given its succession of political and economic crises.

I Disagree With Julian Phillips Article on Gold Confiscation

Posted: 08 Jan 2013 08:30 AM PST

READ THE FULL NEWSLETTER

I detect a different "tone" to Larry Edelson's most recent article.  He's not shouting that gold is headed down toward $1,450.  Instead, he says gold is "not quite ready" for the next stage up in the on-going bull market.  I have always maintained that Larry will never see gold in the $1,400s and most likely not even in the $1,500s.  I bet he's beginning to feel the same way.

Using "technical analysis" to predict the trends is risky business, in a market (gold and silver, in this case) that is rife with manipulation.

David Banister lays out an Elliot Wave analysis that suggests we are at the very end of the downturn.  The next weave will be a biggie and it will be an UP WAVE.  Banister's charts predict a high for gold, in the A Wave Up of $2,280 to $2,400 by this June.  Not quite up to Chris Laird's prediction of $2,500, $3,500 then $4,500 but I'll take it.  Then again, he doesn't put a time-line on his price predictions and Banister is looking six-months out.

I like the most recent article by Przemyslaw Radomski.  He takes a close look at gold priced in several currencies and concluded that it is mis-leading to judge gold's price strictly on the dollar chart.  It looks much more bullish in other currencies, especially the Japanese yen.

Adam Hamilton has been wrong as the Mayans with his love for mining shares, though that will eventually change, but I love his colorful charts and graphs.  They are the best in the business.  He is very bullish now on bullion coins, in particular the US Gold Eagles.  He concludes:

And as the recent surge in gold Eagle demand indicates, the political environment can be a big driver of investment demand.  We are now stuck with four more years of out-of-control federal spending and the resulting ruinous deficits.  The Fed is aggressively monetizing this new debt, which is highly inflationary.  As gold and silver start powering higher again, investment demand is only going to continue growing.

-from US Mint Bullion-Coin Sales 3, January 4, 2013

Check out the latest confiscation article by Julian Phillips.  It's an interesting article, but I disagree with its basic premise, that gold will be confiscated.  Jim Sinclair makes the point that there is no way the US would confiscate gold while China is encouraging their citizens to own gold and even Russia is not a threat to confiscate.  If the government tried to confiscate, we would be exposed for the paper tigers we are.  If we really do have the 8000+ tonnes of gold we claim to have, there is no need to confiscate.  It would be a major embarrassment to admit we lied about it all these years.

Now they could nationalize the gold mining industry.  Personally, I think storage outside the banking industry in Canada is good enough protection and as I have mentioned before, Andy Schectman, Andy Hoffman and I all have our gold there – but if you believe that Switzerland is the only safe place to store gold, we can refer you to a program there for Swiss storage also.

I deal with the "threat" of confiscation by diversifying my metals portfolio.  I have an equal dollar amount in silver and a fair amount of Platinum, just in case….  If push came to shove and I had to repatriate my gold and turn it in (not counting on that happening), I would get a lot of dollars that I would immediately put into other tangibles like high quality real estate or buy more silver and platinum, regardless of the high prices at the time.  My net worth would be bolstered by the silver and platinum, which would go ballistic if gold were taken.

Be sensible.  Diversify.  Store offshore and you can even diversify there too by using Canada (Miles Franklin International Storage with Brinks) and Switzerland.  We are specialists in this area and you can call us at 800-822-8080 if you need information.Similar Posts:

Deutsche Bank trims Gold, Silver outlook for 2013 14

Posted: 08 Jan 2013 07:45 AM PST

The bank also lowered its s 2013 price forecast on silver by 16.8% to $37/oz and its 2014 view by 5% to $38/oz.

Jim Sinclair: The Bear Case In Gold From The Establishment

Posted: 08 Jan 2013 07:30 AM PST

Legendary gold expert Jim Sinclair sent an email alert to subscribers late Monday regarding the MSM's MOPE that the economy is in a recovery, and that real interest rates are set to rise, resulting in a bear market in gold. Sinclair states an emphatic NO to both presumptions that the economy is recovering or that [...]

Peter Schiff: Even If You Raise Taxes To 100%, We Couldn’t Pay It Off. We’re Going To Default.

Posted: 08 Jan 2013 07:19 AM PST

Gold Report Sign Up Below

Shanghai Gold trading jumps as US Gold derivatives shrink to three year low

Posted: 08 Jan 2013 06:46 AM PST

The price of platinum has now been below the price of gold since September 2011, the longest such period in at least three decades.

US Mint Sells Nearly 4 Million Silver Eagles First Day of 2013 Production!

Posted: 08 Jan 2013 06:42 AM PST

In mid-December, the US Mint announced the suspension of Silver Eagle sales for 3 weeks, as they shut down ASE sales early for 2012, and announced that sales of 2013 Silver Eagles would begin on 1/7/2013. For the first week of 2013 the mint's 2013 silver sales totals remained at 0 with production halted, but [...]

China's Gold Volume “Shot Through The Roof” Yesterday Ahead Of Lunar New Year

Posted: 08 Jan 2013 06:35 AM PST

Reuters report that Asia's physical market has picked up so far this year, with buyers tempted by last week's big drop in prices — when prices retreated to as low as 1,626 per ounce — and on demand ahead of the Lunar New Year, traders said. The trading volume on the Shanghai Gold Exchange's 99.99 [...]

China’s Gold Volume “Shot Through The Roof” Yesterday Ahead Of Lunar New Year

Posted: 08 Jan 2013 06:35 AM PST

From GoldCore

China's Gold Volume "Shot Through The Roof" Yesterday Ahead Of Lunar New Year

Today's AM fix was USD 1,653.75, EUR 1,261.06 and GBP 1,028.07 per ounce.
Yesterday's AM fix was USD 1,653.75, EUR 1,267.82 and GBP 1,029.60 per ounce.

Silver is trading at $30.38/oz, €23.25/oz and £18.95/oz. Platinum is trading at $1,569.50/oz, palladium at $672.00/oz and rhodium at $1,150/oz.


Cross Currency Table – (Bloomberg)

Read more »

via zerohedge

Basel Bummer for Gold's Salvation

Posted: 08 Jan 2013 06:32 AM PST

This morning's indications showed gold and silver partially reversing yesterday's losses with modest gains on the order of $4 and 11 cents, respectively. On the other hand, platinum and palladium each advanced by about one percent in the cash markets.

This about sums up the collapse and ponzi as we know it

Posted: 08 Jan 2013 06:19 AM PST

Crude Oil Rebound May Falter as Earnings in Spotlight

Posted: 08 Jan 2013 06:19 AM PST

Sentiment-linked crude oil is on the upswing along with a narrow improvement in risk appetite in European hours, with regional shares edging higher. Gold and silver are likewise trading higher as the US dollar corrects lower.

Dealers Report 'Very Strong' Gold Demand from China

Posted: 08 Jan 2013 05:38 AM PST

Wholesale gold bullion prices ended Tuesday morning in London at $1,655 per ounce, regaining ground lost yesterday to climb back to where it started the week, with dealers reporting signs of strong demand from India and China, the world's two biggest gold buying nations.

Turkish Gold plane bound for Iran?

Posted: 08 Jan 2013 05:36 AM PST

Turkish ULS firm carrying 1.5 tons of gold from Ghana to Dubai, United Arab Emirates was held by authorities reportedly for its failure to present necessary documents.

2013 Dollar & Currency Outlook

Posted: 08 Jan 2013 05:25 AM PST

Sidetracked by the discussion over the "fiscal cliff" and possibly a New Year's hangover, it's time to face 2013 in earnest. Is the yen doomed? Will the euro shine? What about Asian and emerging market currencies? Will gold continue its ascent? And the greenback, will it be in the red?...

Reko Diq Gold project suffers another setback

Posted: 08 Jan 2013 04:13 AM PST

The Supreme court said the Chagai Hills Exploration Joint Venture Agreement (CHEJVA) have been executed contrary to the provisions of rules in the country and it is declared illegal, void and non est.

Indian government to hike gold import tariffs – again

Posted: 08 Jan 2013 03:15 AM PST

As if last year's new regulations from the Indian government had not caused enough turmoil at the local gold markets, tomorrow the Ministry of Finance and the Reserve Bank of India (RBI) will be ...

Indian Man Buys $230,000 Solid Gold Shirt as 'Investment'

Posted: 08 Jan 2013 03:04 AM PST

¤ Yesterday in Gold and Silver

The gold price did virtually nothing during Far East trading on Monday...and even the tiniest moves above $1,660 spot got sold off.  Then nothing happened during morning trading in London, either...but not-for-profit sellers showed up the moment the Comex opened...and gold was down over twelve bucks in about an hour.  From there it didn't do much, although it did recover a bit off its low of the day in the thinly-traded electronic market.

The high price tick...such as it was at around $1,663 spot...came shortly before 11:00 a.m. in Hong Kong...and the New York low [$1,641.50 spot] came a few minutes before 9:30 a.m. and the open of the equity markets.  The 5-year intraday price movement chart for gold shows that 9:30 a.m. Eastern is the time that gold hits its daily low in New York over the years...and yesterday was just typical.  I doubt very much that this is accidental.

Gold closed at $1,646.90 spot...down $9.90 on the day.  Net volume was fairly light...around 121,000 contracts.

It was very much the same story in silver...and the silver chart looks pretty much the same as the gold chart...with the high and low ticks coming at the same times as gold as well.  The rally that came after the 9:30 a.m. Eastern time low, got smacked down just before the 3:00 p.m. GMT London close, which was 11:00 a.m. in New York.

Silver's Hong Kong high was around $30.45 spot...and it's 9:30 a.m. New York low was recorded by Kitco at $29.75 spot.

Silver closed at $30.16 spot...down 2 cents from Friday's close.  Volume was around 39,500 contracts.

The dollar index opened at 80.49 on Sunday night in New York...and then rallied to its high, around 80.69, which occurred at 8:00 a.m. in London right on the button on their Monday morning.  It hung around that high until 8:00 a.m. in New York...and then down it went, with the low tick [80.12] coming moments before the close.  The dollar close at 80.17.

The dollar lost about 40 basis points during the New York session...but the not-for-profit seller at the Comex open made sure that there was no correlation between the dollar index and the gold price yesterday.

The gold stocks gapped down a bit over a percent at the open...and the two morning rally attempts didn't get far.  Then, in the last thirty minutes of trading, the stocks got sold down a bit more...and the HUI closed right on its low of the day, down 1.75%.

With the odd exception, the silver stocks all finished lower on the day as well...and some by quite a bit.  Nick Laird's Silver Sentiment Index closed down a healthy 2.06%.

(Click on image to enlarge)

The CME's Daily Delivery Report showed that only 4 gold contracts were posted for delivery tomorrow within the Comex-approved depositories.  As I've stated several times...January is not a regular delivery month for either gold or silver, so this lack of activity shouldn't be a surprise.

There was a smallish withdrawal out of GLD yesterday...43,259 troy ounces...and no reported changes in SLV.  However, very late last night, many hours after GLD had been updated, they did up date SLV...and that update showed that a very chunky 1,644,590 troy ounces were added.  Considering the monstrous engineered price decline in silver on Thursday and Friday of last week, this is an amazing turn of events.  The boys over at shortsqueeze.com will update their short positions in GLD and SLV in a couple of days...and they should be a sight to see...based on the 6.0 million ounces deposited during the reporting period.  However, yesterday's deposit won't be in that data.

Not surprisingly, it was a big sales day over at the U.S. Mint on Monday.  They sold 6,000 ounces of gold eagles...a very chunky 10,500 one-ounce 24K gold buffaloes...and an eye-watering 3,937,000 silver eagles.  I'm guessing it will be a record January for gold and silver bullion coins at the mint this month.

The Comex-approved depositories reported receiving only 8,846 troy ounces of silver on Friday...but shipped a chunky 1,022,991 ounce of the stuff out the door.  The link to that activity is here.

You may remember a story from very late last week where Dennis Gartman was trashing gold...as he just loves to do, every time the opportunity presents itself.  Well, reader Denis Roch sent me the following e-mail yesterday...and I thought it worth sharing..."If you want to see what Dennis Gartman has returned to those who invested in his Horizons Gartman ETF [HAG] have a look at HAG.TO.  It's down 20% since its inception in the 1st quarter of 2009." [Good work, Dennis.  Just think how much your investors would be ahead if you had invested in physical gold and silver instead... ;-) - Ed]

Here's a chart courtesy of Washington state reader S.A. that he 'borrowed' from somewhere...and it requires no further words of explanation, as the title says it all.

(Click on image to enlarge)

Here's a photo of that $230,000 gold shirt...and it's not just gold coloured, it's the real stuff.  It tips the scales at just over 3 kilos...7 pounds.  Scott Pluschau has a story about this in the 'Critical Reads' section just below.

Since it's a Tuesday column, I have lots for you to look at it...so read away.

The question still remains...are we done to the downside...or do JPMorgan et al still have more work to do?
Kyle Bass: Why You Should Own Physical Precious Metals. India to choke gold imports from Thailand. Jeff Clark: Dear 2013...What Will Gold Do This Year? Why Platinum Coin Opponents Are All Wrong.

¤ Critical Reads

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U.S. Banks to Pay $8.5 Billion to Settle Foreclosure Flaws

Ten of the largest U.S. mortgage servicers will pay a combined $8.5 billion under an agreement that will end case-by-case reviews of foreclosure-abuse claims stemming from a 2011 deal with regulators.

Companies including JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc. must provide $5.2 billion in mortgage assistance and $3.3 billion in direct payments to wronged borrowers, the Office of the Comptroller of the Currency and the Federal Reserve said in a statement today. The banks were among 14 servicers ordered to hire independent consultants to help clean up foreclosure practices amid claims they improperly seized homes [robo-signing of foreclosure documents - Ed] in the wake of the subprime mortgage crisis.

"When we began the Independent Foreclosure Review, the OCC pledged to fix what was broken, identify who was harmed, and compensate them for that injury," Comptroller of the Currency Thomas Curry said in a statement. "While today's announcement represents a significant change in direction, it meets those original objectives by ensuring that consumers are the ones who will benefit, and that they will benefit more quickly and in a more direct manner."

This Bloomberg story was posted on their website at noon Mountain Time yesterday...and the first person through the door with it yesterday was Manitoba reader Ulrike Marx.  The link is here.

U.S. credit agency sues JP Morgan again

US federal regulators have launched a lawsuit against financial firm JP Morgan Chase & Co over the sale of risky mortgage securities that contributed to the collapse of three credit unions.

The National Credit Union Administration's (NCUA) lawsuit, filed on Friday, alleges that the country's largest bank misled US Central, Western Corporate and Southwest Corporate federal credit unions into buying $2.2b in risky mortgage securities that caused major financial losses.

The three unions became insolvent due to the losses and were placed in NCUA conservatorship, the agency said.

"The damage caused by the actions of firms like Washington Mutual has been extremely expensive to contain and repair," NCUA board chairman Debbie Matz said in a statement announcing the lawsuit. She added that "it's only right that the people who caused the damage be required to pick up that burden, as well."

This story showed up on the aljazeera.com Internet site on Saturday...and I thank Federico Schiavio for sending it along.  The link is here.

Credit Suisse: 8 Key Indicators Suggest A Stock Market Selloff Is Near

Credit Suisse Global Equity Strategist Andrew Garthwaite and his team are taking a bit of stock market exposure off the table after the recent run-up in the S&P 500 over the past month.

Garthwaite warns clients in a new research note out this morning, "Many of our tactical indicators point to a consolidation phase in the equity markets, in the near-term."

In the note, Garthwaite highlights nine charts that show how, just as the stock market has taken a turn upward since mid-November, investor sentiment toward stocks has soared higher in that short amount of time.

This short item appeared on the businessinsider.com Internet site around noon Eastern Time yesterday...and it's courtesy of Roy Stephens.  The link is here.

Bernanke Strikes First Yen Blow as Yield Gap Rises: Japan Credit

While Prime Minister Shinzo Abe piled pressure on the Bank of Japan to weaken the yen last week, the Federal Reserve struck the first blow against the currency.

A signal from Fed board members that they may end bond purchases in 2013 helped drive the yen to a 2 1/2 year low of 88.41 per dollar on Jan. 4, still 15 percent stronger than its decade average. The extra yield on 10-year Treasuries instead of similar-maturity Japanese government bonds reached 1.13 percentage points last week, the most in nine months and attracting funds into dollar assets.

 "With a possible pickup in the U.S. economy, the dollar is more likely to rise than the yen," said Jun Kawakami, a market economist at Mizuho Securities Co., one of the 24 primary dealers obliged to bid at Japan's debt sales. "While there's a good chance that the Fed will reduce bond purchases as early as this year, there is absolutely no exit strategy in sight for the BOJ, creating a contrast between their policies."

This story was filed jointly from Singapore and Tokyo...and posted on the Bloomberg website very late on Sunday evening Mountain time, which would have been early afternoon on Monday in Tokyo.  I thank Marshall Angeles for this item...and the link is here.

Doug Noland: Issues 2013

"The Federal Reserve is heading in the wrong direction. What the central bank describes as 'unconventional monetary policy' is creating dangerous bubbles in asset markets that will lead to higher future inflation and is supporting the explosive growth of the national debt."  Martin Feldstein, Wall Street Journal, January 3, 2013

I applaud Dr. Feldstein's intentions, but the poor soul has a problem:  the marketplace is rather smitten with Bubbles and doesn't these days have an inflation worry in the world.  Might as well be another Mayan prophesy.  Indeed, Feldstein's warning today resonates about as well as my (repeated) warnings of Bubbles and bipolar outcome possibilities.  But here it goes, nonetheless:  the financial system, as we know it, is doomed on December 21, 2013.

In all seriousness, it is difficult to imagine a backdrop more poised for the extraordinary.  Bolstered by unprecedented global monetary radicalism, the global Bubble gathered important momentum in 2012.  This ensures that the dysfunctional "risk on, risk off" ("roro") speculative dynamic turns only more unwieldy in 2013.  Policy measures guarantee that the historic "crowded trade" in international risk markets will only more forcefully crowd the manic crowd on one side of the crowded boat – or the other.   This implies fatter "tail risks" – with emphasis on the "s" – the plural – of left (Bubbles burst) and right (inflating Bubbles turn much more unwieldy) "tail" developments.

Doug Noland's weekly Credit Bubble Bulletin over at the prudentbear.com Internet site is always a must read for me.  I had no space for it in Saturday's column, so here it is now.  It's a bit on the long side, as most of Doug's essays have a tendency to be...and the link is here.

Drought still grips Corn Belt -- dry winter adds to farmers' fears

The U.S. Corn Belt - the world's top grain region - is seeing another dry winter after the worst summer drought in half a century, reducing prospects for a bumper summer harvest that would help ease global food prices, crop and climate experts said.

"We are still concerned about getting the leftovers out of the way from the drought of 2012. At this time we would not anticipate a national corn yield above the trend," said Iowa State University climatologist Elwynn Taylor, who has studied crop production for decades. "Rather, we would expect a fourth consecutive year of below-trend crop, not as far below as in 2012 but still not up to par."

The 2012 drought locked two-thirds of the U.S. continental land mass in severe drought last summer, cutting production of the biggest crop, corn, by 27 percent from early season estimates.

This article, filed from Chicago, was posted on the nbcnews.com Internet site on Saturday...and I thank Casey Research's own Dennis Miller for sending it our way.  The link is here.

Britain's Political Poltergeist: Cameron Succumbs to Growing Europhobia

Britain's right-wing conservative movement is making life difficult for Prime Minister David Cameron. The UK Independence Party wants to lead the country out of the EU, and its approval ratings are higher than ever. As the pressure mounts, Cameron has been at pains to outline a clear stance on Europe.

Nigel Farage is the kind of politician who apparently needs an opponent to bring out the best in him. Right now, that role is being played by a cushion. Sitting on a sofa in a London hotel lobby, Farage alternately slaps the cushion with the palm of his hand and punches it with his fist as he talks about how he intends to stir up British politics.

For months now, his proposals have put the government on the back foot -- and this has rapidly increased his party's popularity among voters. Recent surveys show UKIP polling around 15 percent, which would make it the third most important political force in the country, after the Conservatives and the center-left Labour Party, yet ahead of the Liberal Democrats.

This story showed up on the German website spiegel.de yesterday...and it's another article courtesy of Roy Stephens.  The link is here.

Bernanke Strikes First Yen Blow as Yield Gap Rises: Japan Credit

Posted: 08 Jan 2013 03:04 AM PST

While Prime Minister Shinzo Abe piled pressure on the Bank of Japan to weaken the yen last week, the Federal Reserve struck the first blow against the currency.

A signal from Fed board members that they may end bond purchases in 2013 helped drive the yen to a 2 1/2 year low of 88.41 per dollar on Jan. 4, still 15 percent stronger than its decade average. The extra yield on 10-year Treasuries instead of similar-maturity Japanese government bonds reached 1.13 percentage points last week, the most in nine months and attracting funds into dollar assets.

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Bill Gross: Fed Claims to Own Billions in Fort Knox Gold; "With Nothing in the Vault to Back it Up---Amazing!"

Posted: 08 Jan 2013 03:04 AM PST

Bill Gross, founder of Pimco, the world's largest bond fund with over $1.92 trillion under management, penned a new piece entitled, "Money for Nothin' Writing Checks for Free." In his editorial, he called attention to the near $10 trillion explosion in global central bank money issuance since 2006, and the impending doom historically associated with a "money for nothing" monetary policy.

His conclusion: The whole charade will soon hit a brick wall. 

Of particular interest were his comments on gold, commodities, and the "Fort Knox Fairy Tale"…i.e.. Fed gold certificate claims on Fort Knox bullion holdings which may or may not actually exist.

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Alasdair Macleod: The economics of gold and silver in 2013

Posted: 08 Jan 2013 03:04 AM PST

The New Year should see some major changes in how gold and silver are regarded in the West, if it becomes obvious that confidence in government-issued money as a medium of exchange might be misplaced. This concern is for the moment essentially limited to economists of the Austrian School.

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Why Platinum Coin Opponents Are All Wrong

Posted: 08 Jan 2013 03:04 AM PST

This morning, Joe Weisenthal and I took our message in favor of minting a trillion-dollar platinum coin to "Bloomberg Surveillance," where we were met with the usual shock and horror from hosts Tom Keene and Sara Eisen. Platinum coin opponents are so distressed that one, Republican Representative Greg Walden, has said he will introduce legislation to ban the coin, citing my post from last week as a dangerous instigation.

Walden, Keene and Eisen are all wrong. Here are my responses to the most common objections we are getting to the platinum coin proposal, in increasing order of persuasiveness.

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