Gold World News Flash |
- Janet In Wonderland
- BS to the Nth Power
- QE4 is Coming says Peter Schiff
- Maguire - We’re Seeing Stunning Amounts Of Euro Gold Buying
- GMO Cholera Bacteria to Be Released in Australia, Canada, U.S.
- Joel Skousen : Strategic Relocation & Home Security
- END OF QE? From This Day Forward, We Will Watch How The Stock Market Performs Without The Fed’s Monetary Heroin
- Concerns over the sale of Australia's largest silver mine near Cobar
- Swiss Gold Referendum Likely to Pass and Send Prices Higher
- Careful What You Wish For: Plunging Yen Leads To 140% Surge In Bankruptcies
- Pay Pal blocks donations to Swiss Gold Initiative, von Greyerz says
- The Dollar Decline Continues: China Starts Direct Convertibility With Asia's #1 Financial Hub
- Hillary Clinton: "Businesses Don't Create Jobs" – Why She's Never Been More Wrong
- The Gold Price Lost 2.14 Percent to Close at $1,198.10
- All Of These Items Point To a Collapse in the Markets
- Gold Price Extends Break Down, Dollar Extends Breakout
- Why a Strong Dollar is the Mortal Enemy of Gold and Oil
- Gold And Silver Capitulation? A Wash-Out Bottom In The Making?
- Confessions of a Newsletter Man
- Gold Daily and Silver Weekly Charts - Currency Wars
- Powers That Be Have Frozen Money For Swiss Gold Initiative
- Like, Doh! Gold Miners Aren't Gold
- Peak Oil? How About Peak Oil Storage?
- The Most Important Factor of the Swiss Gold Initiative
- MARC FABER : There is a Global Slowdown
- Gold, Silver and Currency Wars
- USA Watchdog homes in on the Swiss ‘GoldInitiative’
- Jim’s Mailbox
- The World Is About To Fall Into A Terrifying Deflationary Crater
- Bill Holter analyzes Greenspan's appearance at the New Orleans conference
- The Disastrous Legacy of Sierra Leone’s Diamond Industry
- Uranium Spot Price Breaking Out, Junior Uranium Stocks Ready To Bottom?
- Gold Price Declines Once Again As Expected
- Koos Jansen: China's gold demand reaches 1,541 tonnes so far this year
- Fed Ends QE? Greenspan Says Gold “Measurably†“Higher†In 5 Years
| Posted: 31 Oct 2014 01:00 AM PDT from Miles Franklin: Andy Hoffman discusses gasoline and oil prices, manipulation of all the markets, the Dow Jones Propaganda, unemployment rate, the housing market, gold and silver. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 30 Oct 2014 10:00 PM PDT by Andrew Hoffman, Miles Franklin:
Business has been difficult since TPTB embarked on the unprecedented raids of April 2013; and whilst Miles Franklin continues to soldier on – due to the goodwill generated, and exceptional service offered over 25 years in business – many of our competitors, for example, Tulving and Merit – have either folded or on the verge of such. Per this chart, the U.S. is essentially the only place on Earth where people have purchased less gold since the 2008 crisis, care of history's most maniacal market manipulation and propaganda campaign. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| QE4 is Coming says Peter Schiff Posted: 30 Oct 2014 09:06 PM PDT Peter Schiff is a well-known commentator appearing regularly on CNBC, TechTicker and FoxNews. He is often referred to as "Doctor Doom" because of his bearish outlook on the economy and the U.S. Dollar in particular. Peter was one of the first from within the professional investment field to call... [[ This is a content summary only. Visit http://www.GoldSilverNewsBlog.com or http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Maguire - We’re Seeing Stunning Amounts Of Euro Gold Buying Posted: 30 Oct 2014 09:01 PM PDT  Today London metals trader Andrew Maguire told King World News that there is currently stunning amounts of euro gold physical buying taking place in London. Maguire also spoke about the staggering demand for physical gold elsewhere around the world. Below is what Maguire had to say in Part I of a series of interviews.This posting includes an audio/video/photo media file: Download Now | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GMO Cholera Bacteria to Be Released in Australia, Canada, U.S. Posted: 30 Oct 2014 09:00 PM PDT by Christina Sarich, Natural Society:
Cholera (KOL-er-a) is an illness that results from infection of the large intestine by Vibrio cholerae bacteria. It can cause watery (and deadly) diarrhea, vomiting, circulatory collapse, and shock – to such an extent that people die from it. There hasn't been a major outbreak of cholera in the US.. since 1910, but worldwide it still affects millions of people. Now, PaxVax is looking to Australian government officials to conduct a clinical trial of a genetically modified live bacterial vaccine against cholera. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Joel Skousen : Strategic Relocation & Home Security Posted: 30 Oct 2014 07:57 PM PDT Hang on to your hats! Joel Skousen covers a ton of information in this short presentation. Including: Hyper inflation, economic collapse, automatic indexing of salaries, global currency, the fall of the Soviet Union, the Muslim threat, nuclear attack on America, nuclear war, global government, EMP,... [[ This is a content summary only. Visit http://www.GoldSilverNewsBlog.com or http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 30 Oct 2014 07:15 PM PDT by Michael Snyder, The Economic Collapse Blog:
So why is the Federal Reserve finally ending quantitative easing? Well, officially the Fed says that it is because there has been so much improvement in the labor market…
But that is not true at all. The percentage of Americans that are working right now is about the same as it was during the depths of the last recession. Just check out this chart… So there has been no “employment recovery” to speak of at all. And as I wrote about yesterday, the percentage of Americans that are homeowners has been steadily falling throughout the quantitative easing era… So let’s put the lie that quantitative easing helped the “real economy” to rest. It did no such thing. Instead, what QE did do was massively inflate stock prices. The following is an excerpt from a Wall Street Journal report about a speech that former Fed chairman Alan Greenspan made to the Council on Foreign Relations on Wednesday…
Moving forward, what did Greenspan tell the members of the Council on Foreign Relations that they should do with their money? This might surprise you…
Wow. It almost sounds like Greenspan has been reading the Economic Collapse Blog. Since November 2008, every time there has been an interruption in the Fed’s quantitative easing program, the stock market has gone down substantially. Will that happen again this time? Well, the market is certainly primed for it. We are repeating so many of the very same patterns that we saw just prior to the last two financial crashes. For example, there have been three dramatic peaks in margin debt in the last twenty years. One of those peaks came early in the year 2000 just before the dotcom bubble burst. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Concerns over the sale of Australia's largest silver mine near Cobar Posted: 30 Oct 2014 07:06 PM PDT A group of companies that was interested in buying Australia's largest silver mine, near Cobar, says it is concerned it was brushed aside during the sale process. The Wonawinta Silver Mine project was acquired for $375,000 by Brisbane company Southern Cross Goldfields in September.    | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Swiss Gold Referendum Likely to Pass and Send Prices Higher Posted: 30 Oct 2014 06:40 PM PDT by Peter Cooper, Arabian Money:
'I will be voting against the gold referendum,' he said before a seminar for clients in Dubai' Royal Mirage Hotel today. 'I am not against a gold standard but against tying the hands of the Swiss Central Bank and forcing them to buy an asset that they will not then be allowed to sell. Commodities bull: 'However, I think the referendum is likely to pass, and if a majority supports it then gold prices will go higher.' Dr. Varnholt also argues that commodity prices in general are almost at a bottom and that a new bull market for oil is around the corner with 'substantially higher' prices possible next year and a 'certainty for 2016′. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Careful What You Wish For: Plunging Yen Leads To 140% Surge In Bankruptcies Posted: 30 Oct 2014 06:16 PM PDT Due to the depreciation of the JPY, leading to soaring raw material costs (crushing SME profitability), TSR reports that Japanese bankruptcies year-to-date in 2014 are up a stunning 140% having unerringly surged since Abenomics was unleashed. Despite constant reassurance and propaganda from various political leaders each and every night that Japan is on the right track... it simply is not and if there is a better indicator of the death spiral Abe has unleashed than surging bankruptcies, we are unaware of one.
Bankruptcies are soaring since Abenomics began...
Even though Abe and his cronies are starting to wake up to the reality...
* * * And so - if you are betting on NKY strength... reliant on JPY weakness... think again. Abe and Kuroda are boxed in. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pay Pal blocks donations to Swiss Gold Initiative, von Greyerz says Posted: 30 Oct 2014 06:05 PM PDT 9p ET Thursday, October 30, 2014 Dear Friend of GATA and Gold: Swiss gold fund manager Egon von Greyerz tells King World News tonight that the payments service Pay Pal has blocked donations for the Swiss Gold Initiative. He adds that he expects central banks to arrange a more surreptitious form of "quantitative easing" to support world markets. An excerpt from the interview is posted at the KWN blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/10/30_P... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Free Storage with BullionStar in Singapore Until 2016 BullionStar is a Singapore-registered company with a one-stop bullion shop, showroom, and vault at 45 New Bridge Road in Singapore. BullionStar's solution for storing bullion in Singapore is called My Vault Storage. With My Vault Storage you can store bullion in BullionStar's bullion vault, which is integrated with BullionStar's shop and showroom, making it a convenient one-stop-shop for precious metals in Singapore. Customers can buy, store, sell, or request physical withdrawal of their bullion through My Vault Storage® online around the clock. Storage is FREE until 2016 and will have the most competitive rates in the industry thereafter. For more information, please visit Bullion Star here: Join GATA here: Mines and Money London http://www.minesandmoney.com/london/ Vancouver Resource Investment Conference http://cambridgehouse.com/event/33/vancouver-resource-investment-confere... * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Dollar Decline Continues: China Starts Direct Convertibility With Asia's #1 Financial Hub Posted: 30 Oct 2014 05:42 PM PDT Submitted by Simon Black via Sovereign Man blog, Earlier this week some of the biggest financial news of the year made huge waves all over Asia. Yet in the Western press, this hugely important information has barely even been mentioned. While this is ignored in the US so far, it’s front page news in Asia So what’s the news? The Chinese government announced that the renminbi will become directly convertible with the Singapore dollar... effective immediately. It’s clear this deal has been in the works for a while, and it’s another major step towards the continued internationalization of the renminbi and unseating of the dollar as the world’s dominant reserve currency. For decades the renminbi has been a tightly controlled currency. It’s only been in the last few years that the Chinese government started loosening those controls, primarily in response to the obvious need for a dollar competitor. The entire world is screaming for an alternative to the dollar and the US government. Since the end of World War II, the US has been in the driver seat. The Fed essentially sets global monetary policy. Foreign banks are forced to rely on the US banking system. Nearly every nation on earth must hold US dollars and buy US government debt just to be able to trade with one another. These were sacred privileges entrusted to the US government. And they have been abused time and time again.
China is taking the lead in providing the world with another option. And they’re not exactly doing this under cover of darkness. These moves have been widely telegraphed, at least to anyone paying attention. For the last few years the Chinese government has entered into new ‘swap agreements’ at blazing speed, allowing other nations’ central banks and governments to hold the renminbi in reserve. They’ve concluded direct trade arrangements (notably with Russia) to settle oil and gas deals in renminbi. This summer we saw the establishment of a Chinese-led supranational bank intended to compete directly with the IMF. Just last week the British government issued a new government bond denominated in renminbi. And now this– direct convertibility between China and the #1 financial center in Asia, making it possible for ANYONE to trade and hold renminbi through Singapore. It’s so obvious where this train is headed. But again, this story is hardly covered in the Western press. They’re living in a dream world where King Dollar still reigns and the US is the only superpower in the world. Nonsense. It’s imperative to stop listening to the propaganda and start paying attention to facts:
These are all objective facts which point to the same conclusion: this current dollar/debt-based system is on the way out. It’s not going to happen overnight, but we’re already seeing a slow and orderly exit. And we can see the rest of this trend unfolding years in advance. Ignoring this could be very hazardous to your financial well-being. And while the Western media might be totally clueless, there are plenty of options for forward-thinking individuals.
There are dozens of other solutions out there. You’ll be able to find some that are just right for your circumstances. * * * Our goal is simple: To help you achieve personal liberty and financial prosperity no matter what happens. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Hillary Clinton: "Businesses Don't Create Jobs" – Why She's Never Been More Wrong Posted: 30 Oct 2014 05:15 PM PDT Narcissism in politics is nothing new, but it is absolutely disgusting and scary that this person is a hero in the minds of millions of Americans. “Businesses don’t create jobs,” according to Hillary Clinton. Apparently she missed the entire 1990s when private businesses created over 20 million jobs during her husband’s two terms in office. In her mind, she clearly credits herself, her husband and the government for those years, when in reality, they walked into the greatest communications revolution since the telephone. And even then, they couldn’t balance the federal budget as tax dollars flooded in from all the new jobs that businesses were creating. I know that the media claims President Clinton balanced the budget, but the truth is it never happened. The Boskin Commission changed the inflation calculation for the BLS, ripping off our senior citizens and turning their annual cost of living increase into an annual cost of survival rate. The Clinton Administration also made budget projections using short-term interest rates instead of long-term. Hillary’s wrong on the idea that government creates jobs – the government destroys jobs. 1. Government BorrowingAll government borrowing hurts the real economy. Like a drug, it can have some short-term effects that are perceived as positive, but in the long run, this misallocation of capital hurts our chances of having a sustainable economy based on real supply and demand. Every dollar loaned to the government is not invested in business, not loaned to the private industry, and is taken out of the economy and redirected by a central planner. 2. TaxesThe government raises its capital by putting a gun to its citizens’ heads; pay taxes or go to jail. This means taking money from our wallets, meaning we buy less, reducing the capital citizens have to spend, invest and save. 3. Central Banks PrintThis is inflationary. In a real economy, prices go down; however, since the politicians use inflation as a stealth tax, our central planners are hell-bent on pushing the inflation rate up. Inflation is how the government is able to raise your taxes without getting any real backlash from voters. If prices go up and the tax rate stays the same, the government is making more money. This hurts the everyday Americans; especially those on fixed income, as they make the same amount of money but everything around them is higher. 4. SpendingGovernment spending creates distortions in our economy and makes it completely dysfunctional. The best example of this is in our housing market. 2008 was the result of government programs and artificially low interest rates. The 3-decade loan, Fannie and Freddie, artificially low interest rates, FHA, the Community Reinvestment Act, and pushing the banks to loan money to subprime borrowers. Wall Street gorged themselves on all of this stupidity coming from government spending, but when the time came to pay for their mistakes, our government rewarded their behavior with bailouts. 5. Government ProgramsAgain, using the money they stole from others. Governments love to create indentured servant programs, food stamps, college aid, welfare and corporatism. Food stamps are completely unnecessary. Please show me where 1 American starved to death or a town that suffered from mass hunger in U.S. history. By taking away the responsibility of feeding yourself, the government has created a cesspool of fraud, with the biggest supporters of SNAP being Coca-Cola, Frito Lay and Nestle. College tuition will outpace all other expenses as long as the government gives 18-year-olds blank checks and those 18-years-olds can postpone the cost of their behavior. Universities would be stupid to offer competitive pricing, as the government is at the ready to pay their fees. Walmart and hundreds of other large corporations are able to pay their workers shit wages because the government subsidized their wages through SNAP, medical care, and even Section 8 housing. The gravy train for Walmart doesn’t end there, because those programs also make for large volume days when SNAP debit cards are renewed with new tax dollars from other citizens. 6. Minimum WagePoliticians love to create laws that discriminate against minorities. Most are familiar with slavery and segregation laws, but are completely ignorant of how many other perceived “good” laws hurt small minorities. Like the uneducated or young, minimum wage has priced out millions of unskilled workers and younger people looking to make an honest buck. These laws have also priced many businesses out of business, as well as caused consumer goods to be artificially high, hurting the poor and making them more dependent on government welfare. 7. RegulationsFrom payroll taxes to unnecessary licenses, business owners waste billions on administrative fees complying with government regulations. Mandatory annual fees for LLCs and other businesses is a complete misallocation of capital for a business. The idea that Hillary Clinton, or any of these politicians (like Bush, Romney and Obama) can create jobs is lunacy. It’s scary to realize just how demented our political leaders truly are. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Gold Price Lost 2.14 Percent to Close at $1,198.10 Posted: 30 Oct 2014 04:51 PM PDT
Face it: either silver and gold prices are making double bottoms, or they will fall a lot further. The last lows came on 3 October at $16.78 and $1,192.20. This carries all the more meaning since these were the lowest closes in the 3+ year correction. Intraday low came for the GOLD PRICE at $1,183.30 on 6 October (the following Monday; today's low hit $1,195.50. The SILVER PRICE intraday low on 6 October was $16.60 against $16.33 today. In itself silver's weaker performance says nothing. More volatile than gold, it always falls further on the downside. Charts don't look quite the same, either. Gold's low today was higher than the early October low, silver's was not. Today's silver close was also lower. Technically the picture is grim. Silver and gold prices rallied off those early October lows, but without conquering many technical targets. Now they've fallen off, and it would take a lunatic like me to say, this is one of those places that you puke in your wastebasket and buy. Why? Either this is the touchback low that proves the early October bottom, or it is the breakdown that will trim another $100 off of gold and $2.00 off silver. Oh, I won't pull the deus ex machina of Nice Government Men out of the box and blame it on them, but I do muse in the back of my mind. How would I react if stocks were tanking and an FOMC announcement didn't quite bail 'em out? If I wanted stocks to keep floating, would I want silver or gold levitating? Or would I hit weaker silver as hard as I could and sell a batch of gold, too? Y'all are gonna think I've gone crazy as a Betsy-bug, but wait till I explain. First, the FOMC meeting yesterday confused the stock market but enthused the US dollar index. For the life of me I can't gulp down the titles "dovish" and "hawkish" when it comes to the Fed cause th'only word that pops to my mind is "swinish" Still I struggle through to try to understand what all these clowns mean. I think by "dovish" they mean that the central bank criminals favor more inflation, by "hawkish" less. Rather than trying to figure out the mental transmission by which Fed watchers and markets draw their conclusions, I would rather point out their actions, for buried within those actions are their conclusions. Stocks sold off. Dollar rose. Whatever the FOMC statement (using that word to describe a Fed utterance is an insult to the English language) said, stock investors took it to mean their gravy train had derailed, and dollar investors thought it meant the dollar would become worth more. The Dow fell 0.18% (31.44 points), the S&P500 slid 0.14%. US dollar index added 83 basis points, a huge 0.74%. Today, however, stock buyers re-thought (or Nice Government Men re-bought) and the Dow jumped 221.11 (1.3%) to 17,195.42. S&P500 added 12.35 (0.62%, not quite as much enthusiasm there) to close 1,994.65. US dollar Index rose 0.18 to 86.26. Yesterday gold and silver held on, today they took their big hit. Think about the whole mess around the dollar. The Fed has been pouring into the financial system as much as $85 billion a month, now suddenly all that's vamoosed. But that extra money was sloshing around the system to finance the $50 billion of new yankee government debt every month, as well as push up stocks. Now that the slosh is squeezed down to a drip, whoops, now that the trough is dry, what happens? The yankee government is GONNA get that deficit financed, and that will be sucking slosh away from stocks. Not a pretty picture, Miss Janet.  Technically the dollar index might look strong, especially with a two day breakout above the downtrend line, but step back from that chart. Chart on the right: Look at that rise from 1 July, practically straight up, then a peak in October and decline. Standard correction behavior is an A-Wave down, a B-wave up, then a C-Wave down. Often the B-wave can be stronger than a garlic milkshake, only to fool you and drop dead in a C-wave. The long preceding hyperbolic rise argues the dollar must correct for quite some time -- that is always the outcome of such spectacular rises. So perhaps the dollar is merely putting in a double top.What makes all this so irksome is that the Nice Government Men manipulate currencies more than any other market, so technical conclusions might be precisely correct, only to be defeated by the NGM's manipulations. Hence I always tremble to say anything about currencies, not being privy to whatever secret deals they have made at the BIS over rubber chicken in their monthly meetings. But for a moment, till disproved by a higher high in the dollar index, I am willing to work on this theory, that the US dollar index is making a double top that may even reach a leetle higher than the previous 86.87 top. Today the US dollar index added 18 basis points (0.21%) to 86.26. Stocks may be on their way to a double top which may include a higher high, or simply correcting on adrenalin. Either way, it mattereth not. Their next big move is rugward, for a long time.
I spoke about the US dollar index above, but didn't mention the other scrofulous parasitic blood-sucking fiat currencies, the yen and euro. Euro today broke down from an even-sided triangle, so it should drop more. The answer to the US dollar riddle I laid out above will control here. Euro lost 0.15% to close $1.2611. Yen broke its uptrend yesterday, punching through its uptrend line and plummeting hard. Ended down today 0.30% at 91.55. Aurum et argentum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger The-MoneyChanger.com © 2014, 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 or 18 ounces of silver. or 18 ounces of silver. US $ and 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.  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| All Of These Items Point To a Collapse in the Markets Posted: 30 Oct 2014 04:47 PM PDT The primary drivers of asset prices are the economy and corporate earnings.
Unfortunately, both are indicating future weakness.
If you want a somewhat accurate measure of GDP growth, you need to ignore the headline GDP numbers an look at nominal GDP.
The reason for this is that all “adjusted” GDP data involves a “deflator” metric that is meant to adjust for inflation. The Feds often use an inflation adjustment that is even lower than their official Consumer Price Index metric (which is already massaged to downplay inflation) in order to make GDP growth look greater.
Consider this simple example. Let’s say that the US GDP grew by 10% last year. Now let’s say that inflation also grew by 10%. In this scenario, real inflation adjusted GDP growth was ZERO. However, announcing ZERO GDP growth is a major problem politically. So what do the Feds do? They claim that inflation was just 8%, and BOOM you’ve got 2% GDP growth announced for a year in which real GDP growth was actually zero.
By using nominal GDP measures, you remove the Feds’ phony deflator metric. With that in mind, consider the year over year change in nominal GDP that has occurred.
As you can see, we’ve broken below four, the reading that has been triggered at every recession in the last 30 years. So the economy is likely at or already in a recession.
The above chart shows that the US is on the brink of a recession. With that in mind, consider that corporate profits are at all time highs.
Not only that, but corporate profits, as a percentage of GDP are at all-time highs. Never before in history have corporations made so much money relative to the US economy. This trend is not likely to continue.
So, we have a weak economy, record profits (mostly from cutting payroll by firing people) and record profits as a percentage of GDP. The simplest interpretation of this is that there will be a reversion to the mean at some point.
What will the mean be?
In terms of valuing stocks as a whole, based simply on CAPE (cyclical adjusted price to earnings) the market is significantly overvalued with a reading of nearly 26 (anything over 15 is overvalued).
Indeed, we’ve only been at this level of valuation during major stock tops (1929, 1966, 2000, and 2007)
So… the economy is weak, corporate profits are unlikely to rise much, if at all, and stocks are sharply overvalued…
ALL of these point towards another collapse in the markets…
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| Gold Price Extends Break Down, Dollar Extends Breakout Posted: 30 Oct 2014 03:59 PM PDT This is an excerpt from the daily StockCharts.com newsletter to premium subscribers, which offers daily a detailed market analysis (recommended service).
The end of QE is bullish for the Dollar. Note that the Fed has ended QE and the European Central Bank (ECB) is threatening QE. This is Dollar bullish and Euro bearish. The US Dollar ETF (UUP) held its support zone and surged to affirm support at 22.60. The Euro Index ($XEU) held resistance and plunged below 127.
Gold gave us a little preview of the Fed policy statement by breaking down last week. This break held as GLD consolidated in the 118 area. GLD continued lower after the Fed announced the long awaited end to quantitative easing, which is Dollar bullish and bullion bearish. I will not move key resistance to 119. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Why a Strong Dollar is the Mortal Enemy of Gold and Oil Posted: 30 Oct 2014 03:15 PM PDT This post Why a Strong Dollar is the Mortal Enemy of Gold and Oil appeared first on Daily Reckoning. The United States is doing better than it has in years. Jobs growth is up, unemployment is down, our manufacturing sector carries the rest of the world on its shoulders like a wounded soldier and the World Economic Forum named the U.S. the third-most competitive nation, our highest ranking since before the recession. As heretical as it sounds, there's a downside to America's success, and that's a stronger dollar. Although our currency has softened recently, it has put pressure on two commodities that we consider our lifeblood at U.S. Global Investors: gold and oil. It's worth noting that we've been here before. In October 2011, a similar correction occurred in energy, commodities and resources stocks based on European and Chinese growth fears. But international economic stimulus measures helped raise market confidence, and many of the companies we now own within these sectors benefited. Between October 2011 and January 2012, Anadarko Petroleum rose 58 percent; Canadian Natural Resources, 20 percent; Devon Energy, 15 percent; Cimarex Energy, 15 percent; Peyto Exploration & Development, 15 percent; and Suncor Energy, 10 percent. Granted, we face new challenges this year that have caused market jitters — Ebola and ISIS, just to name a couple. But we're confident that once the dollar begins to revert back to the mean, a rally in energy and resources stocks might soon follow. Brian Hicks, portfolio manager of our Global Resources Fund (PSPFX), notes that he's been nibbling on cheap stocks ahead of a potential rally, one that, he hopes, mimics what we saw in late 2011 and early 2012. A repeat of last year's abnormally frigid winter, though unpleasant, might help heat up some of the sectors and companies that have underperformed lately. On the left side of the chart below, you can see 45 years' worth of data that show fairly subdued fluctuations in gold prices in relation to the dollar. On the right side, by contrast, you can see that the strong dollar pushed bullion prices down 6 percent in September, historically gold's strongest month. This move is unusual also because gold has had a monthly standard deviation of ±5.5 percent based on the last 10 years' worth of data. Here's another way of looking at it. On October 3, bullion fell below $1,200 to prices we haven't seen since 2010, but they quickly rebounded to the $1,240 range as the dollar index receded from its peak the same day. There's no need to worry just yet. This isn't 2013, when the metal gave back 28 percent. And despite the correction, would it surprise you to learn that gold has actually outperformed several of the major stock indices this year? As for gold stocks, there's no denying the facts: With few exceptions, they've been taken to the woodshed. September was demonstrably cruel. Based on the last five years' worth of data, the NYSE Arca Gold BUGS Index has had a monthly standard deviation of ±9.4, but last month it plunged 20 percent. We haven't seen such a one-month dip since April 2013. This volatility exemplifies why we always advocate for no more than a 10 percent combined allocation to gold and gold stocks in investor portfolios. Oil's slump is a little more complicated to explain. Since the end of World War II, black gold has been priced in U.S. greenbacks. This means that when our currency fluctuates as dramatically as it has recently, it affects every other nation's consumption of crude. Oil, then, has become much more expensive lately for the slowing European and Asian markets. Weaker purchasing power equals less overseas oil demand equals even lower prices. What some people are calling the American energy renaissance has also led to lower oil prices. Spurred by more efficient extraction techniques such as fracking, the U.S. has been producing over 8.5 million barrels a day, the highest domestic production level since 1986. We're awash in the stuff, with supply outpacing demand. Whereas the rest of the world has flat-lined in terms of oil production, the U.S. has zoomed to 30-year highs. In a way, American shale oil has become a victim of its own success. At the end of next month, members of the Organization of the Petroleum Exporting Countries (OPEC) are scheduled to meet in Vienna. As Brian speculated during our most recent webcast, it would be surprising if we didn't see another production cut. With Brent oil for November delivery at $83 a barrel—a four-year low—many oil-rich countries, including Iran, Iraq and Venezuela and Saudi Arabia, will have a hard time balancing their books. Venezuela, in fact, has been clamoring for an emergency meeting ahead of November to make a plea for production cuts. Although not an OPEC member, Russia, once the world's largest producer of crude, is being squeezed by plunging oil prices on the left, international sanctions on the right. This might prompt President Vladimir Putin to scale back the country's presence in Ukraine and delay a multibillion-dollar revamp of its armed forces. When the upgrade was approved in 2011, GDP growth was expected to hold at 6 percent. But now as a result of the sanctions and dropping oil prices, Russia faces a dismally flat 0.5 percent. The current all-in sustaining cost to produce one ounce of gold is hovering between $1,000 and $1,200. With the price of bullion where it is, many miners can barely break even. Production has been down 10 percent because it's become costlier to excavate. As I told Kitco News' Daniela Cambone, we will probably start seeing supply shrinkage in North and South America and Africa. The same could happen to oil production. Extraction of shale oil here in the U.S. costs companies between $50 and $100 a barrel, with producers able to break even at around $80 to $85. If prices slide even further, drillers might be forced to trim their capital budgets or even shelve new projects. Michael Levi of the Council on Foreign Relations told NPR's Audie Cornish that a decrease in drilling could hurt certain commodities: "[I]f prices fall far enough for long enough, you'll see a pullback in drilling. And shale drilling uses a lot of manufactured goods—20 percent of what people spend on a well is steel, 10 percent is cement, so less drilling means less manufacturing in those sectors." At the same time, Levi places oil prices in a long-term context, reminding listeners that we've become accustomed to unusually high prices for the last three years. "People were starting to believe that this was permanent, and they were wrong," he said. "So the big news is that volatility is back." On this note, be sure to visit our interactive and perennially popular Periodic Table of Commodities, which you can modify to view gold and oil's performance going back ten years. With fresh volatility in oil production comes the fear that the most price-sensitive states will be hurt the most. Exceptionally vulnerable states include Oklahoma, Wyoming and North Dakota. Texas, the nation's leading oil producer—one of the world's top producers, in fact—is diversified well enough to not feel the pain as much. What's bad for oil producers, though, turns out to be good for American consumers, who are already benefiting from lower gasoline prices. As of this writing, the national average for a gallon of gas is $3.10, down from $3.35 a year ago, according to AAA's Daily Fuel Gauge Report. As a result, American consumers are looking at huge savings—$40 billion this year alone. According to Deutsche Bank's Joe LaVogna, every penny that's saved at the pump equates to a billion dollars in household energy consumption that can be put back into the economy in other ways. I like to think of this as an unexpected and very welcome tax break. Automobile sales are already up from 2009. Lower gas prices might encourage some families to spring for that Suburban instead of a Prius. As I said earlier, gold stocks have been hurting lately. One mining company that's managed to not only survive in this uncertain climate but actually thrive is Klondex Mines, our largest holding in both our Gold and Precious Metals Fund (USERX) and World Precious Minerals Fund (UNWPX), with additional exposure in our Global Resources Fund (PSPFX). Headquartered in Vancouver, Klondex has complete ownership and control of the Fire Creek Project and Midas Mine, both in Nevada. The chart below, based on our own research, shows Klondex's relative strength to its peers and why we find the company so attractive in the long term. The y-axis indicates profit margin, the x-axis, enterprise value. The size of the spheres represents the amount of revenue generated by each one of these companies in the second quarter of 2014, Klondex's first quarter of full commercial production. What the chart conveys is that, in relation to its peers, Klondex has a significantly higher profit margin than companies with a market cap two to three times its size. "This is going to be very positive for Klondex shareholders as we go into the year-end," portfolio manager Ralph Aldis said during our webcast. "The third quarter should be another great quarter, and that's when people will say, 'Hey, that second quarter report wasn't a fluke.' They're going to start buying the stock and get it moving." Indeed, Klondex has managed to stay above the Market Vectors Junior Gold Miners ETF for the 12-month period, delivering a positive return of 7 percent versus the index's -7.5 percent. On numerous occasions I've written about our research on the typical lifecycle of a mine, most recently in my whitepaper "Managing Expectations: Anticipate Before You Participate in the Market." Below you can see the relationship between a mine's lifecycle and the company's share price. As experts in mining stocks, it's imperative for us to know which production stage the mine is in to manage our exposure to the company. In the case of Klondex, its price action mimics the movements in share price based on the chart above, confirming our research. It also supports the benefits of active management. "When you buy an indexed fund, you're basically just buying the market capitalization of those companies," Ralph said. "You're not getting the benefit of active management where we go out, meet the company's management team and know its history. We're familiar with the lifecycle of the mine in question, the money, the burn rate and the minerals the company is involved in." I couldn't have said it better myself. Frank Holmes Ed. Note: Regardless of how strong the U.S. dollar is, there will always be great investments in the resource markets. Readers of the FREE Daily Resource Hunter know that better than anyone. In each issue, subscribers are given unique access to the most exciting stories in the resource and energy markets, and are treated to at least 3 chances to discover the world’s most incredible profit opportunities. Don’t miss out on your chance to profit from this incredible market. Click here now to sign up for Daily Resource Hunter for FREE. 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| Gold And Silver Capitulation? A Wash-Out Bottom In The Making? Posted: 30 Oct 2014 03:07 PM PDT The end of QE3 is official. What does this mean for markets and metals? The short answer: deflation ahead. The longer answer: almost all asset prices are about to come down (sharply) except the U.S. Dollar. As we all know, the end of QE1 and QE2 resulted in volatility and unstable stock markets. The end of QE3 will most likely result in a short term extension of the bull run in stocks, after which volatility will start increasing and prices will come down systemetically. We believe that our call of early this year, when we predicted that 2014 Will Be The Year Of The Super Crash, will unfortunately come true. A crash is not an event but a process. Although we do not expect a full crash between now and December 31st of this year; we rather believe that the start of a very severe correction of at least 25% is imminent. What does this imply for precious metals? First, the ongoing collapse of the gold miners does not bode well. The miners lead the metals in both directions. Unfortunately for gold bulls, the miners are now in the lead, which suggests that metals will follow their decline. The following chart shows the performance of miners and metals since early June. Note how much lower miners and silver are trading since early September.
The strengthening U.S. Dollar will continue to put enormous pressure on gold and silver. We sense that it will result in a phase of capitulation. If there is one "good" thing about capitulation, it is that all sellers will get exhausted on (much) lower prices, leaving the marketplace with no sellers. Capitulation are rare events but, when they tend to progress very fast. What would happen in such a scenario? In a matter of two weeks, prices could come down another 30% followed by a spike up. It would fit with the idea that stocks would rise a bit higher and then start coming down, resulting in money starting to flow towards the deeply oversold precious metals miners. On top, in the physical market, if the Swiss gold referendum on November 30th would result in a "yes" vote, then we would have the first country after more than 4 decades returning to a gold standard. Additionally, in line with the gold rush of 2013 in Asia, (much) lower gold prices could probably make the physical market explode. How likely is this scenario? Our belief is that it has a probability of 50%. Longer term, we think that the Fed is underestimating deflation and that they will launch another "money printing" program in 2015 to push back deflation. Chances are high that it will feed inflation expectations which is beneficial for precious metals. The only question, in our view, is "when" not "if." That should become the driver for precious metals longer term. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Confessions of a Newsletter Man Posted: 30 Oct 2014 01:57 PM PDT This post Confessions of a Newsletter Man appeared first on Daily Reckoning. [Ed. Note: For over 30 years, Bill Bonner has been in the newsletter business. Along the way he's met some very interesting characters. And together with one of them, Addison Wiggin, he co-founded a little newsletter called The Daily Reckoning. We bring it up for a variety of reasons which we discussed in detail in today's issue. Bill's reflective essay, below, is part of that conversation...] We begin with a question: Was ever there a fairer métier than ours? The poor carpenter risks cutting his fingers or banging his knee. The used car salesman's hearing goes bad as soon as he takes up his job: "No, I don't hear any rattle," says he. …a kind of earnest timidity has settled over the 50 states. Everything is forbidden, or else it is compulsory… The foot-soldier gets sent to a Godforsaken hole like Afghanistan, where the women are covered up and the liquor stashed away. But in our trade as newsletter publishers, hardly a day passes without a good laugh. Our only occupational hazard is a rupture of the midriff. Most people, after all, read the news pages for information. They lack the proper training and perspective to fully enjoy them. The consequence is that they are always in danger of taking the humbug seriously, or worse, finding the people who populate the headlines important. If you really want to appreciate the media you have to get close enough to see how it works — like a prairie dog peering into a hay bailer — but not so close that you get caught up in it yourself. The investment newsletter business is perfect; it is part of the media, but it wouldn't be mistaken for a reputable part. More than 30 years ago, we began our career publishing newsletters. Those were the days! They were even more fun than today. Years of television, heavy-handed regulation, and waiting in line for airport security have taken much of the lightheartedness out of American life. In its place, a kind of earnest timidity has settled over the 50 states. Everything is forbidden, or else it is compulsory — especially in the financial markets. You can barely talk about an honest investment without some ambitious prosecutor wanting to make a federal case out of it. But back in the 1970s, the folks you met in the newsletter trade were even wilder and more disreputable than those who are in it today. At one investment conference, we remember an investment advisor from East Germany. He had escaped the Soviets' grip by stealing a small plane and flying to the west. This alone made him a bit of a hero back in the 1970s. But his talk to investors endeared him further. He gave the following discourse: "Take a look a zis chart," he would begin, pointing to the bottom of what appeared to be a wave pattern. "Investing is reeelly very simple. You just buy at zee bottom. Heere! Zen, ven ze stock goes up, vat do ve do? Ve sell. Heere! [Pointing to the top of the wave pattern.] It is reeelly verrry simple." "Well, what if the stock doesn't go up," asked an investor, fresh off the Great Plains and not prepared for patterns or people that weren't perfectly straight. "Ya… ve just keep our eyes on ze chart. If it doesn't go up, ve don't buy it." We don't recall the man's name. It was something like Dr. Friederich Hasselbauer. We were always a bit suspicious of financial advisors who used the "Dr." title, though many did. Especially when they spoke with thick German accents. We imagined that they had been conducting experiments on Jews before they entered the financial markets. And then there was the Quack man. His name was "Red Robin." As near as we could figure, he liked ducks. So he called his financial analysis "The Quack Report." He had once made his money paving airport runways. Then, in his fifties or sixties, he decided to devote himself to financial analysis and to save the world from a small group of criminal conspirators known as the Bilderburgers, who were in cahoots with the English government. Once, flying on the Concorde across the Atlantic, Ol' "Red" saw the U.K. Chancellor of the Exchequer, it must have been Lord Barber, on the same flight. He told us that he decided to confront his lordship right then and there, when he had the chance. "I just went up to him and I said, 'I'm on to you… ol' buddy … " It must have been quite a scene. Red Robin was a funny-looking fellow with a paunchy stomach who always dressed in orange coveralls, which made him look a little like a red-breasted sapsucker. Why he wore orange overalls, we don't know; perhaps they were a holdover from his days working on airport runways when he didn't want the cement trucks to run him down. Red also had funny ideas about publishing investment advice. He offered readers a Lifetime Guarantee — they could have their money back anytime. But then, he added a caveat: "My life, not yours." As it turned out, the guarantee was less valuable than readers imagined — or Red himself had hoped. He was gunned down on a beach in Costa Rica, we were told. In order to get better returns, you have to do things differently… But that was the strange milieu in which we decided to make our career. What was delightful about it were the nuts and kooks, the charlatans and dreamers, the brazen hucksters and earnest geniuses who made up the industry. Here were thinkers whose thoughts were untainted by any trace of advanced doctrinaire theory, let alone rudimentary training of any sort. Here were mountebanks and scalawags galore… along with a few saints… dispensing market wisdom, stock recommendations, and macro-analysis so far reaching you needed a Hubble telescope to see where it came from. And here, too, were the sort of men whom rich widows were warned about. And the sort of theorists who made you wonder about the limits of human reason itself. Our friend, Gary North, somewhat of a legend in the business, began studying the possible consequences of the Y2K computer problem in the late 1990s. The more closely he looked, the more alarmed he became. He began writing about the subject, and the more he explored it… the more he thought about it… the more convinced he became that it would lead to a complete meltdown of modern society. He looked and he saw commerce coming to a stop. He saw trains that couldn't run without electronic instruction. He saw cash machines frozen up. He saw power plants idled by their computer brains. And what would happen to all that electronic information — bank accounts, trading records, inventories — on which the whole financial world depended? He saw millions of people with no money… and then no food. He saw riots in the streets… and worse. Then, he looked around and saw that he and his family were as exposed to the menace as everyone else. He decided to take precautions, moving his family to an isolated rural area where they would be safe from the apocalypse he saw coming. Maybe he would be wrong, he reasoned. But what if he were right? The cost of being right — and failing to protect himself — could be catastrophic. He moved to a mountain hollow, buried provisions, and began the countdown to the year 2000. Of course, when the big day came… nothing happened. The clocks worked. The trains ran. The power was still on. Apparently, not a single cash machine failed. People pointed and laughed. But was he wrong? What if the odds of a meltdown had been only 1 in 100 or 1 in a 1,000? Was he not right to give a warning in the strongest possible terms? And wasn't it partly because of him and others like him that billions were spent to correct the problem before January 2000? Colorful eccentrics, careful analysts, cheerful con men, and self-assured delusionals trying to figure out how things are put together — this is the world of investment gurus. But guess what? The gurus are often right. True, some financial gurus have gone broke following their own advice. But many have gotten rich. Investment gurus are an original bunch… Almost all of them are successful — sometimes. In the late 1970s, we undertook a study — with Mark Hulbert, who is still at it — of how well these financial gurus actually perform. We wouldn't presume to summarize Mark Hulbert's nearly 30 years of work; we will just tell you what we took from it: There is no right way to invest. Investment gurus are an original bunch. They come up with all sorts of systems, ideas, and approaches. Almost all of them are successful — sometimes. There are a lot of different ways to invest and to make money. And often one that works spectacularly well in one period may collapse completely when the market changes course. So, too, an approach that often works poorly under certain market conditions will work poorly in other conditions. But, generally, an investment advisor who works hard to develop and refine a system and who sticks with it can do reasonably well, sometimes. He can be a technical analyst, a chartist, a Graham and Dodd follower, even an astrologer. Almost any disciplined approach, pursued intelligently and steadily, can pay off. We have a theory that explains why this is so. Investing is, when you get down to the basement of it, a competitive undertaking. If you do what everyone else does, you will get the same returns as everyone else. In order to get better returns, you have to do things differently. Investment gurus seem to be favored, in this regard, by their own originality and quirky self-reliance. "Sometimes right, sometimes wrong," they say. "But never in doubt." Taken together, they are probably the most independent and contrary professional class in the world. And this contrariness, alone, seems to put them at odds with the great mass of lumpen investors, allowing them to make more — or, often less — than the common results. By contrast, what seems to doom the average investor is the same mushy quality that seems to be ruining the whole country. He will wait in line — without a word of protest — while guards frisk girl scouts and old ladies for dangerous weapons. If the mob is large enough, he can't wait to be a part of it and fears being isolated from it. And he will believe any line of guff — no matter how fantastic — as long as everyone else falls for it, too. Dow 36,000? House prices always go up? Interest-only negative amortization mortgage? A man who follows a newsletter guru has no guarantee of making money… but a man who follows the great mass of conventional wisdom is practically guaranteed that he will not. Regards, Bill Bonner Ed. Note: Existing outside the realm of traditional news sources has its advantages. You’re freer to say what you think is right, rather than sitting on the sidelines — or worse, being forced to “tow the party line.” And that often leads to top-notch investment advice, which we’re pleased to be able to share with our subscribers. In fact, in every single issue of The Daily Reckoning email edition, readers are treated to no less than 3 specific chances to discover real, actionable stock picks. And that’s just one small benefit of being a FREE DR reader. Click here to sign up for The Daily Reckoning email edition, for FREE, right now to discover the rest of them. The post Confessions of a Newsletter Man appeared first on Daily Reckoning.     | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold Daily and Silver Weekly Charts - Currency Wars Posted: 30 Oct 2014 01:28 PM PDT  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Powers That Be Have Frozen Money For Swiss Gold Initiative Posted: 30 Oct 2014 01:01 PM PDT  Today a 42-year market veteran told King World News that the powers that be have frozen the money intended for the Swiss Gold Initiative. This is a stunning event. Below is what Egon von Greyerz, who is founder of Matterhorn Asset Management out of Switzerland, had to say in this extraordinary interview.This posting includes an audio/video/photo media file: Download Now | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Like, Doh! Gold Miners Aren't Gold Posted: 30 Oct 2014 12:42 PM PDT But it bears repeating for investors wondering if the mining-stock rout is a "buy"... WEDNESDAY was a serious gut check for investors in the mining sector, writes David Nadig at Hard Assets Investor, in a story first published at ETF.com. Is there a knife to catch? There are charts and there are charts. But there's no way to parse this one as anything but ugly:  I'm not a big believer in technical analysis, but I know an awful lot of traders are, which means a lot of folks are looking at the line for Market Vectors Gold Miners ETF (NYSEArca:GDX) and seeing it plow through its resistance, with nothing to support it but "air" here. So what are the lessons to learn here? Gold miner stocks are volatile It doesn't take math to look at the difference between the lines on this chart and pick out the craziest one. I picked GDX as one of my ETFs to rally in 2014, and while that was still a solid call until a few days ago, it's now looking pretty darn terrible. On a year-to-date basis, GDX is down just over 7%. Just this August, GDX was up more than 30% on the year. Gold miners are still companies Yes, there's a significant correlation between the price of gold and the performance of gold miners. Consider this graph of the monthly correlations between GDX and the SPDR Gold Trust (NYSEArca:GLD)...  Certainly, more often than not, GDX and GLD will move in the same direction, but that relationship breaks down all the time, and it breaks down very, very quickly when it does. And because GDX is made up of companies run by human beings, there are far more things at work than just the price of gold. Which brings me to... Equities are ultimately about earnings If you look at the holdings of GDX, you find, as you might expect, significant winners and losers. Detour Gold Corp., a relatively small Canadian miner, is about to turn profitable for the first time, and is up almost 100 percent on the year. That's helping offset once-profitable Coeur Mining, which is down more than 61% on the year on rapidly declining revenues. See the picture there? Gold miners, perhaps more than any small niche I can think of, are a collection of wild fortune-telling cards. That's part of the allure of gold miners – that one might "hit it big" and all of a sudden have vastly more gold, or higher production than you might expect. Unfortunately, it cuts both ways. Gold is about currency The last point, which I think many folks forget, is that gold is a weak-Dollar play. Any time you trade in your Dollars to hold something, you're effectively saying, "I'm shorting the Dollar to buy X." Gold in particular lives in an odd crux between currency and commodity. But since it's priced in Dollars, you should expect that, all else being equal, a strong Dollar means you can buy more gold per Dollar; that is, the price of gold should go down as the Dollar gets stronger. This chart tracks the price of gold (XAU) relative to the U.S. Dollar Index (DXY):  It's hardly a perfect relationship, but it's safe to say that it's very hard for gold to rally at the same time the Dollar is rallying. It's the same pressure we have on oil prices, and frankly all commodities at the moment. Fishing for value? I am quite sure that there will be plenty of ETF investors who see a few terrible days in a solid ETF like GDX and are tempted to pull the trigger. My only concern would simply be this: If you head to the Van Eck website and look at GDX, you see a reported price-earnings ratio for the stocks in the portfolio of 18.54. That makes it look like plain-vanilla large-cap equities – after all, the S&P 500 has a P/E right now of about 18.6. But that belies the fact that a huge portion of GDX holdings are actually losing money. From companies like Newcrest Mining (5 percent of the portfolio) to Royal Gold (4 percent) to little Silver Standard Resources (0.35 percent), all those losses add up, making the true P/E – not magically forgiving the losses – negative 12. Far from value, gold miners are looking like a wildly speculative bet at the moment. So just be careful when you're reading those fact sheets on your value hunt. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Peak Oil? How About Peak Oil Storage? Posted: 30 Oct 2014 12:21 PM PDT Here's how cheap US energy promises an 'epic' turnaround in the US economy... MATT BADIALI is editor of the S&A Resource Report, a monthly investment advisory focusing on natural resources from Stansberry & Associates. A regular contributor to Growth Stock Wire, Badiali has experience as a hydrologist, geologist and consultant to the oil industry, and holds a master's degree in geology from Florida Atlantic University. Here he tells The Gold Report's sister title The Mining Report that cheap oil prices and the economic prosperity they bring can make politicians and investors look smarter than they are. Hence Badiali's forecast that Hillary Clinton...if elected in 2016...could go become one of America's most popular presidents. Yes, really. The Mining Report: You have said that Hillary Clinton could go down in history as one of the best presidents ever. Why? Matt Badiali: Before we get your readership in an uproar, let me clarify that the oddsmakers say that Hillary Clinton is probably going to take the White House in the next election. Even Berkshire Hathaway CEO Warren Buffet said she is a slam dunk. I'm not personally a huge fan of Hillary Clinton, but I believe whoever the next president is will ride a wave of economic benefits that will cast a rosy glow on the administration. Her husband benefitted from the same lucky timing. In the 1980s, people had money and felt secure. It wasn't because of anything Bill Clinton did. He just happened to step onto the train as the economy started humming. Hillary is going to do the same thing. In this case, an abundance of affordable energy will fuel that glow. The fact is things are about to get really good in the United States. TMR: Are you saying shale oil and gas production can overcome all the other problems in the country? Matt Badiali: Cheap natural gas is already impacting the economy. In 2008, we were paying $14 per thousand cubic feet. Then, in March 2012, the price bottomed below $2 because we had found so much of it. We quit drilling the shale that only produces dry gas because it wasn't economic. You can't really export natural gas without spending billions to reverse the natural gas importing infrastructure that was put in place before the resource became a domestic boom. The result is that natural gas is so cheap that European and Asian manufacturing companies are moving here. Cheap energy trumps cheap labor any day. The same thing is happening in tight crude oil. We are producing more oil today than we have in decades. We are filling up every tank, reservoir and teacup because we need more pipelines. And it is just getting started. Companies are ramping up production and hiring lots of people. By 2016, the US will have manufacturing, jobs and a healthy export trade. It will be an economic resurgence of epic proportions. TMR: The economist and The Prize author Daniel Yergin forecasted US oil production of 14 million barrels a day by 2035. What are the implications for that both in terms of infrastructure and price? Matt Badiali: Let's start with the infrastructure. The US produces over 8.5 million barrels a day right now; a jump to 14 would be a 65% increase. That would require an additional 5.5 million barrels a day. To put this in perspective, the growth of oil production from 2005 to today is faster than at any other time in American history, including the oil boom of the 1920s and 1930s. And we're adding it in bizarre places like North Dakota, places that have never produced large volumes of oil in the past. North Dakota now produces over 1.1 million barrels a day, but doesn't have the pipeline capacity to move the oil to the refineries and the people who use it. There also aren't enough places to store it. The bottlenecks are knocking as much as $10 per barrel off the price to producers and resulting in lots of oil tankers on trains. And it isn't just happening in North Dakota. Oil and gas production in Colorado, Ohio, Pennsylvania and even parts of Texas is overwhelming our existing infrastructure. That is why major pipeline and transportation companies have exploded in value. They already have some infrastructure in place and they have the ability to invest in new pipelines. The problem we are facing in refining is that a few decades ago we thought we were running out of the good stuff, the light sweet crude oil. So refiners invested $100 billion to retool for the heavier, sour crudes from Canada, Venezuela and Mexico. That leaves little capacity for the new sources of high-quality oil being discovered in our backyard. That limited capacity results in lower prices for what should be premium grades. One solution would be to lift the restriction on crude oil exports that dates back to the 1970s, when we were feeling protectionist. It is illegal for us to export crude oil. And because all the new oil is light sweet crude, the refiners can only use so much. That means the crude oil is piling up. Peak oil is no longer a problem, but peak storage is. If we could ship the excess overseas, producers would get a fair price for the quality of their products. That would lead them to invest in more discovery. However, if they continue to get less money for their products, investment will slow. TMR: Is everything on sale, as Rick Rule likes to say? Matt Badiali: Everything is on sale. But the great thing about oil is it is not like metals. It is cyclical, but it's critical. If you want your boats to cross oceans, your airplanes to fly, your cars to drive and your military to move, you have to have oil. You don't have to buy a new ship today, which would take metals. But if you want that sucker to go from point A to point B, you have to have oil. That's really important. There have been five cycles in oil prices in the last few years. Oil prices rise and then fall. That's what we call a cycle. Each cycle impacts both the oil price and the stock prices of oil companies. These cycles are like clockwork. Their periods vary, but it's been an annual event since 2009. Shale, especially if we can export it, could change all of that. The rest of the world's economy stinks. Russia and Europe are flirting with recession. China is a black box, but it is not as robust as we thought it was. Extra supply in the US combined with less demand than expected is leading to temporary low oil prices. But strategically and economically, oil is too important for the price to get too low for too long. I was recently at a conference in Washington DC where International Energy Agency Executive Director Maria van der Hoeven predicted that without significant investment in the oil fields in the Middle East, we can expect a $15 per barrel increase in the price of oil globally by 2025. I don't foresee a lot of people investing in those places right now. A shooting war is not the best place to be invested. I was in Iraq last year and met the Kurds, and they're wonderful people. This is just a nightmare for them. And for the rest of the world it means a $15 increase in oil. For investors, the prospect of oil back at $100 per barrel is not the end of the world. With oil prices down 20% from recent highs and the best companies down over 30% in value, it is a buying opportunity. It means the entire oil sector has just gone on sale, including the companies building the infrastructure. As oil prices climb back to $100, companies will continue to invest in producing more oil. And that will turn Hillary Clinton's eight-year presidency into an economic wonderland. TMR: The last time you and I chatted, you explained that different shales have different geology with different implications for cracking it, drilling it and transporting it. Are there parts of the country where it's cheaper to produce and companies will get higher prices? Matt Badiali: The producers in the Bakken are paying about twice as much to ship their oil by rail as the ones in the Permian or in Texas are paying to put it in a pipeline. The Eagle Ford is still my favorite quality shale and it is close to existing pipelines and export infrastructure, if that becomes a viable option. There are farmers being transformed into millionaires in Ohio as we speak, thanks to the Utica Shale. TMR: What about the sands providers? Is that another way to play the service companies? Matt Badiali: Absolutely. The single most important factor in cracking the shale code is sand. If the pages of a book are the thin layers of rocks in the shale, pumping water is how the producers pop the rock layers apart and sand is the placeholder that props them open despite the enormous pressure from above. Today, for every vertical hole, drillers create long horizontals and divide them into 30+ sections with as much as 1,500 pounds of sand per section. A single pad in the Eagle Ford could anchor four vertical holes with four horizontal legs requiring the equivalent of 200 train car loads of sand. Investors need to distinguish between companies that provide highly refined sand for oil services and companies that bag sand for school playgrounds. Fracking sand is filtered and graded for consistency to ensure the most oil is recovered. Investors have to be careful about the type of company they are buying. TMR: Coal still fuels a big chunk of the electricity in the US Can a commodity be politically incorrect and a good investment? Matt Badiali: Coal has a serious headwind, and it's not just that it's politically incorrect. It competes with natural gas as an electrical fuel so you would expect the two commodities would trade for roughly the same price for the amount of electricity they can generate, but they don't. The Environmental Protection Agency is enacting emission standards that are effectively closing down coal-fired power plants. And because it is baseload power, you can't easily shut it off and turn it back on; it has to be maintained. That means it doesn't augment variable power like solar, as well as natural gas, which can be turned on and off like a jet engine turbine. So coal has two strikes against it. It is dirty and it isn't flexible. Some coal companies could survive this transition, however. Metallurgical coal (met coal) companies, which produce a clean coal for making steel, have better prospects than steam coal. Along with steam coal, met coal prices are at a six-year low. Generally, I want to own coal that can be exported to India or China, where they really need it. Japan has replaced a lot of its nuclear power with coal and Germany restarted all the coal-fired power plants it had closed because of carbon emissions goals. We are already seeing deindustrialization there due to high energy prices. Cheap energy sources, including coal, will be embraced. I just don't know when. TMR: Thank you for your time, Matt. Matt Badiali: Thank you. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Most Important Factor of the Swiss Gold Initiative Posted: 30 Oct 2014 12:21 PM PDT This post The Most Important Factor of the Swiss Gold Initiative appeared first on Daily Reckoning. [Ed. Note: Over a month ago, in our email edition, we tipped you off to the upcoming Swiss Gold Referendum -- one of the events our own Jim Rickards believes could trigger a monetary collapse. Yesterday, we continued that discussion with the first part of an eye-opening piece by Grant Williams, aptly titled "Why You NEED to Pay Attention to the Swiss Gold Initiative." Today, we bring you part two, which explains, in detail, exactly how the Nov. 30 referendum could shape the future of the gold market.] Luzi Stamm — the Swiss politician spearheading the popular Swiss Gold Initiative — pulled off a masterstroke in securing the involvement of Egon von Greyerz who, along with being one of the most highly respected figures in the gold industry, happens to be one of the world's nicest human beings. We'll get to Egon's involvement shortly, but first let's take a look at the motions that make up the Swiss Gold Initiative, which are threefold:
(NB. Before we get to the part of this story where the SNB tell us how big a nightmare it would be to force them to hold 20% of their reserves in gold (come on, you KNEW that was coming), I'd point you back to this chart, from part 1 yesterday. Remember? The one that showed the Swiss held 18% of their reserves in gold just five short years ago?) Addressing the motions in order, let's begin with number 1, that all Swiss gold be physically stored in Switzerland. Switzerland has made its name over centuries as being one of the safest places on the planet to store gold. That reputation has been good enough to convince people from all over the world to entrust their gold to the Swiss for safe-keeping. However, like many other central banks, the SNB stores a certain proportion of its gold overseas. How much? We don't know. Where exactly is it held? We have no idea (other than "in the UK & Canada"). In fact, when the finance minister was asked, in parliament, where Switzerland's gold was stored, his answer was something of a head scratcher:
Riiiight… Call me old-fashioned, but if I were a Swiss national I'd want a better answer than that. Anyway, the Number 2 on the initiative's wishlist is that the SNB be prohibited from selling their gold reserves. Now, THAT might be a problem for the SNB in times to come in the "ordinary conduct of monetary policy," but as we are some ways away from a world in which "ordinary" features in any way, shape, or form where monetary policy is concerned, I don't think this prohibition is going to matter much. However, if you think this initiative isn't being taken seriously, you just have to look at an excerpt from a speech given by the governor of the SNB, Thomas Jordan, a matter of days after the Swiss Gold Initiative achieved the 100,000 signatures it required to qualify as a referendum. If you lean in real close, you can smell the fear:
Thomas, if I may? The SNB's desire to "maintain currency and price stability" can be summed up by this chart, which will be all too familiar to those who have studied the fiat currencies of the world, but it obviously needs trotting out one more time: As for the SNB's capacity to act in "pursuing monetary policy," what the Gold Initiative will do is effectively stop them from printing unlimited amounts of Swiss francs in order to keep the once-mighty Swiss franc pegged to a potentially obsolete currency like the euro. Now, I am simplifying here in the interest of expediency, and I am well aware of the restrictions that any kind of gold standard places on a central bank's operational capability, but it's important to understand that the Swiss franc functioned perfectly well as a partially gold-backed currency up until 1999, and the desire of the SNB to have If you can't beat 'em, join 'em. All of which leads us to perhaps the most fascinating part of the Swiss Gold Initiative: the motion to ensure that the SNB immediately acquires enough gold to back 20% of its reserves (a threshold which it must then maintain as a minimum — at a level, you know, about where they were in 2009). Now, the numbers around this little piece of the puzzle are interesting. In order to reach the 20% threshold, the SNB has two options open to them: they can either reduce the size of their balance sheet or buy gold. In life, there are many limbs out onto which one should never venture, but I'm prepared to dance out onto this one like Billy Elliot: The SNB will NOT reduce the size of their balance sheet in order to meet the 20% mandate should the motion be passed. There. Quote me on that. And we all know what THAT leaves, don't we boys and girls? Yes, in order to meet the regulations should the Gold Initiative pass, the SNB will need to buy 1,700 tons of gold at the market (assuming, of course, that they don't expand their balance sheet further in the meantime — something that, with the increasingly weak euro, is doubtful in the extreme). That equates to roughly $70 billion or CHF 67 billion. And we are talking physical gold. Not futures contracts or complex derivatives but the metal itself. Put another way, 1,700 tons of gold is roughly 70% of total annual gold production. Now, the SNB will have five years in which to reach the required 20% limit, but they will essentially need to get started immediately, because with the floor such a big buyer will put under the price and the constant expansion of their balance sheet due to that pesky euro peg, the longer they wait, the more gold they will have to buy and the less they will get for their money. Catch Zweiundzwanzig. How's your attention? Grabbed yet? OK, good. More on this tomorrow… Regards, Grant Williams Ed. Note: With the vote on the Swiss Gold Initiative officially one month away, you’re likely to see more and more news sources start to pick up the story. Of course, it’s been a regular topic in our Daily Reckoning e-letter for over a month now, and we’ll continue that conversation as Nov. 30 draws closer. Stay ahead of the curve on this and other important financial events. Click here now to get The Daily Reckoning sent straight to your email inbox, every single day. It only takes a few seconds, and it’s completely FREE to sign up. Click here now to get started. The post The Most Important Factor of the Swiss Gold Initiative appeared first on Daily Reckoning.     | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MARC FABER : There is a Global Slowdown Posted: 30 Oct 2014 11:54 AM PDT MARC FABER Gives His Predictions on Stock Market Collapse, China, Gold, U.S. Dollar MARC FABER Gives His Predictions on Stock Market Collapse, China, Gold, U.S. Dollar It is widely expected that the Federal Reserve is going to announce the end of quantitative easing this week. Will this... [[ This is a content summary only. Visit http://www.GoldSilverNewsBlog.com or http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold, Silver and Currency Wars Posted: 30 Oct 2014 11:47 AM PDT "The US must win, since it has infinite ammunition: there is no limit to the dollars the Federal Reserve can create. What needs to be discussed is the terms of the world’s surrender: the needed changes in nominal exchange rates and domestic policies around the world." | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| USA Watchdog homes in on the Swiss ‘GoldInitiative’ Posted: 30 Oct 2014 09:34 AM PDT Greg Hunter interviews Egon von Greyerz about the Gold InitiativeOctober 30 – 2014 (30 minutes) Egon von Greyerz: "Let's first say that the government is against it. So, they are in the "No" camp and so is the Swiss National Bank. They are not supposed to campaign officially in these kinds of referendums, but they still are making clear … Read the rest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 30 Oct 2014 09:14 AM PDT Jim, Strap on your seat belts: The Federal Reserve ended its controversial quantitative-easing (QE) program at its meeting today. It also plans to keep interest rates at record lows for a "considerable time," and that environment will continue to support gold prices. However, today's biggest news came not from Fed Chairwoman Janet Yellen but one... Read more » The post Jim’s Mailbox appeared first on Jim Sinclair's Mineset. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The World Is About To Fall Into A Terrifying Deflationary Crater Posted: 30 Oct 2014 09:14 AM PDT  With gold, silver, oil, and other commodities getting hit, today Michael Pento warned King World News that the world is about to fall into a terrifying deflationary crater. Pento also discussed what he is doing with his firm's money ahead of the coming chaos.This posting includes an audio/video/photo media file: Download Now | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bill Holter analyzes Greenspan's appearance at the New Orleans conference Posted: 30 Oct 2014 08:56 AM PDT 11:55a ET Thursday, October 30, 2014 Dear Friend of GATA and Gold: Bill Holter, market analyst for the Miles Franklin bullion dealership in Minnesota and GATA Chairman Bill Murphy's LeMetropoleCafe.com, analyzes former Federal Reserve Chairman Alan Greenspan's appearance at the New Orleans Investment conference last Saturday. Holter's first commentary on Greenspan is headlined "Alan Greenspan: Cleansing His Legacy" and it's posted at Miles Franklin here: http://blog.milesfranklin.com/alan-greenspan-cleansing-his-legacy-part-1 Holter's second commentary is headlined "Alan Greenspan: GATA's Missed Opportunity" and it's posted here: http://blog.milesfranklin.com/alan-greenspan-gatas-missed-opportunity-pa... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Buy precious metals free of value-added tax throughout Europe Europe Silver Bullion is a fast-growing dealer sourcing its products from renowned mints, refiners, and distributors. Because of a legal loophole that will close soon, you can acquire the world's most popular bullion coins free of value-added tax throughout the European Union. You can collect your order in person at our headquarters in Tallinn, Estonia, or have it delivered in any of the 28 EU countries. Europe Silver Bullion is owned and operated by North American and European experts in selling, storing, and transporting precious metals. We have an extensive product inventory of silver, gold, platinum, and palladium, and our network spans the world. Visit us at www.europesilverbullion.com. Join GATA here: Mines and Money London http://www.minesandmoney.com/london/ Vancouver Resource Investment Conference http://cambridgehouse.com/event/33/vancouver-resource-investment-confere... * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Disastrous Legacy of Sierra Leone’s Diamond Industry Posted: 30 Oct 2014 07:42 AM PDT Life After Diamonds: Before Ebola, the landscape of Sierra Leone was already scarred by social deprivation and post-civil war industrial collapse Sierra Leone's mining communities are facing immense challenges and destruction following the decline of the diamond industry. Cooperatives in the... [[ This is a content summary only. Visit http://www.GoldSilverNewsBlog.com or http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Uranium Spot Price Breaking Out, Junior Uranium Stocks Ready To Bottom? Posted: 30 Oct 2014 07:37 AM PDT The commodity equities are selling off as The Fed halts QE3. Commodities, metals and the junior miners are hitting multi year lows and falling below 2008 credit crisis levels. This is not a time to panic but continue to accumulate as the bear market may be reaching the final capitulation stage. This decline may be a sign that the quantitative easing may have lifted stock market indices, but it did little to improve demand and growth in the economy reflected by demand for energy and metals. I just returned from the New Orleans Conference which was headlined by Alan Greenspan the former Federal Reserve Chairman from 1987 to 2006. It is interesting to note that Greenspan has become bullish on gold. He believes that quantitative easing did not accomplish what it was designed to do. It helped lift the stock market and stabilize the real estate market, however it fell short as the US economy is not really recovering like it should have. Gold is the best hedge against this uncertainty. I happen to agree with him. Real estate values have jumped and stock market indices are hitting new highs. Only a small fraction of the US has gotten wealthier as the real economy continues to struggle. Greenspan is continuing to warn about the Fed’s exit from quantitative easing, which I am quite concerned about as well. Look at the recent volatility in the US dollar and treasuries. When the US dollar is moving parabolically higher like a dot com stock I exercise caution as this could have drastic effects on foreign exchange markets and international trade. The way to hedge against this volatility caused by government interventions and manipulations is precious metals and commodities. Accumulate during a bear market when it is on sale. A turnaround could be right around the corner. Contrarian value investors should be looking at emerging junior uranium producers and explorers that are still trading for pennies on the dollar. The uranium spot price has made a dramatic move higher as Japan begins turning back on nuclear reactors and large producers such as Cameco announce production declines. There is a lot of buying in the spot market and it should be soon reflected in the performance of the junior uranium miners (URA). Look for a breakout past $37 on the U3O8 spot price. A town in southwest Japan approved the restart of a nuclear power station. This is a sign that if Japan who suffered greatly from the Fukushima disaster can turn back on reactors then the rest of the world should continue to build newer and safer next generation nuclear reactors. Japan turned off the nuclear reactors following Fukushima in March of 2011. However, nuclear reactors may start coming back online in 2015. Japan’s economy can no longer handle importing expensive oil and gas. Nuclear is vital to Japan’s economy and used to supply close to one-third of their overall energy needs. Don’t forget that he US is the largest consumer of nuclear power yet produces less than 10% of what it demands every year. For decades, America relied on Russia to supply cheap uranium in the megatons to megawatts program. This deal concluded at the end of 2013 and Russia could continue tightening its control on uranium as a bargaining chip against economic sanctions from the West. Smart money is buying small emerging junior uranium producers in the US where demand far outpaces supply. Anfield Resources Inc. (TSX.V: ARY)(OTCQB: ANLDF) released news that they are acquiring the Shootaring Canyon Uranium Mill from Russian nuclear giant Uranium One. They just announced approval from the Utah Division of Radiation Control to transfer the license. Anfield acquired a portfolio of uranium assets around the mine with historical estimates of 6.8 million pounds of uranium. For only $5 million in cash and shares paid out over 4 years Anfield has jumped to become a major contender in the U.S. uranium industry. Anfield now owns one of three licensed uranium mills in the United States with one of the largest uranium land packages of more the 65k acres. Owning the mill is crucial as it allows the company to have control all the way from mining to production of yellowcake. Anfield could be a major supplier of uranium to help with the current supply deficit in the United States. As Anfield Resources CEO Corey Dias said, "We are extraordinarily excited about the acquisition at it is transformational for the Company. With the acquisition of one of only three licensed and permitted uranium mills in the United States, we have significantly accelerated our timeline with regard to becoming a uranium producer. The mill is currently in good condition as it has been on continuous care and maintenance since it ceased operations.” With a market cap of only $10 million Anfield may be a cheaper and a more undervalued situation than some of its peers. See my recent interview with Anfield (ARY.V or ANLDF) CEO Corey Dias by clicking here… For more info on Anfield Resources Contact: Disclosure: I own Anfield Resources and the company is a website sponsor. ___________________________________________________________________________ Sign up for my free newsletter by clicking here… Please see my disclaimer and full list of sponsor companies by clicking here… Accredited investors looking for relevant news click here… To send feedback or to contact me click here… Please forward this article to a friend or share the link on Facebook, Twitter or Linkedin.
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| Gold Price Declines Once Again As Expected Posted: 30 Oct 2014 06:55 AM PDT Briefly: In our opinion speculative short positions (full) in gold, silver and mining stocks are justified from the risk/reward perspective. Gold and mining stocks declined yesterday in a rather profound way. The GDX ETF finally broke below its 2013 lows and the volume that corresponded to this action was high. However, silver almost didn't react - why didn't it? Will we see a rally shortly? In short, not likely. There was a good reason for silver to hold up strongly at this time. However, before we move to this situation, let's take a look at the "background info" - the changes in the USD Index (charts courtesy of http://stockcharts.com). | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Koos Jansen: China's gold demand reaches 1,541 tonnes so far this year Posted: 30 Oct 2014 05:39 AM PDT 8:37a ET Thursday, October 30, 2014 Dear Friend of GATA and Gold: China's gold demand has reached 1,541 tonnes so far this year, Bullion Star gold researcher and GATA consultant Koos Jansen reports today, adding that the new international exchange in Shanghai will be complicating demand calculations. Jansen's commentary is headlined "Chinese Gold Demand 1,541 Tonnes YTD" and it's posted at Bullion Star here: https://www.bullionstar.com/blog/koos-jansen/chinese-gold-demand-1541t-y... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Buy metals at GoldMoney and enjoy international storage GoldMoney was established in 2001 by James and Geoff Turk and is safeguarding more than $1.7 billion in metals and currencies. Buy gold, silver, platinum, and palladium from GoldMoney over the Internet and store them in vaults in Canada, Hong Kong, Singapore, Switzerland, and the United Kingdom, taking advantage of GoldMoney's low storage rates, among the most competitive in the industry. GoldMoney also offers delivery of 100-gram and 1-kilogram gold bars and 1-kilogram silver bars. To learn more, please visit: http://www.goldmoney.com/?gmrefcode=gata Join GATA here: Mines and Money London http://www.minesandmoney.com/london/ Vancouver Resource Investment Conference http://cambridgehouse.com/event/33/vancouver-resource-investment-confere... * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fed Ends QE? Greenspan Says Gold “Measurably†“Higher†In 5 Years Posted: 30 Oct 2014 05:07 AM PDT As expected, the Fed announced yesterday it would end its six year money printing and bond buying programme. Given the fragile nature of the U.S. economy, Eurozone economy and indeed the global economy, Fed critics continue to believe that this may be a short term hiatus prior to a resumption of QE, if asset prices start to fall or economic growth falters. Former Federal Reserve Chairman Alan Greenspan admitted yesterday to the Council on Foreign Relations (CFR), that QE and the Fed’s bond buying program, which aimed to lower unemployment and spur stronger economic growth, fell short of its goals. |
Hopefully, readers understand just how much resource we put into the Miles Franklin Blog, both financial and human. Fortunately, we love what we do; and from a personal perspective, my work gives meaning to my life in an increasingly chaotic world. However, we cannot emphasize enough that we have a business to run; and thus, we humbly ask that if you are considering buying, selling, trading or 
Love in the Time of Cholera, written by Gabriel García Márquez is one of my favorite books of all time, but were I to be exposed to the disease and contract it, I certainly wouldn't feel so romantically inspired. Márquez even says in the book, "There is no greater glory than to die for love," but to die for a genetically modified bacteria? Please continue. 
Mark this day on your calendars. The Dow is at 16974, the S&P 500 is at 1982 and the NASDAQ is at 4549. From this day forward, we will be looking to see how the stock market performs without the monetary heroin that the Federal Reserve has been providing to it. Since November 2008, the Fed has created about 3.5 trillion dollars and pumped it into the financial system. An excellent chart illustrating this in graphic format can be found 
Swiss private bank Julius Baer's chief investment officer Burkhard Varnholt told ArabianMoney that the gold referendum in Switzerland (click here) is likely to pass and that will send gold prices much higher next year as the Swiss Central Bank will then have no alternative but to buy gold.
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