Gold World News Flash |
- Maguire: This Triggered Today’s Massive Selloff In Gold & Silver
- Gold And Silver – Elite Supernova Death Dance In PMs?
- I Know This Much is True
- WARNING: Avoid this corrupt, third-world country at all costs
- The Morgan Report – November 2014
- Billionaire Sprott’s Terrifying Warning As Gold & Silver Smashed
- Forgotten Anniversary: One Hundred Years of Legal Tender
- India may hasten gold mining plan as means of curtailing trade deficit
- On the Comex the Gold Price Dove $27.00 to End at $1,171.10
- Who Will Suffer From A Leveraged Credit Shakeout?
- The BoJ Jumps The Monetary Shark - Now The Machines, Madmen And Morons Are Raging
- Gold And Silver Price Crash Of 2014 Coming?
- "The Most Important Chart For Investors" Flashback, And Why USDJPY 120 Is Now Coming Fast
- The American Illusion of Prosperity
- A Manifesto, of Sorts
- A Silver Nanoparticle Problem that Nobody Knew About is Solved
- Meet "Rolling Jubilee" - The Group Buying & Tearing-Up Student Loans
- Implications Of Greenspan’s Latest Talk for Gold Investors
- Billionaire Eric Sprott Says Stock Market Will Crash, Not Gold
- Jim Rickards: Obama Ending Alliance with Saudi Arabia and Killing the Petrodollar
- Gold Falls, Stocks Record Highs as Japan Goes ‘Weimar’, “Here Be Dragons”
- Henry Bonner: What Greenspan's latest talk means for gold
- Maguire describes today's attack on gold as sudden intervention by BIS
- Gold and Silver - Good Morning Fiat Nam
- Gold Daily and Silver Weekly Charts - Good Morning Fiat Nam
- US Now Importing the World’s Deflation
- Pretium - Canadian Golden Elephant
- Koos Jansen: The great Chinese silver market debate
- Accumulation Follows Capitulation As Day Follows Night in Junior Mining Sector
- Tea Leaves & $2000 Gold
- Maguire: This Triggered Today’s Massive Selloff In Gold & Silver
- One QE ends and another begins and still gold goes down, Sprott marvels
- King Dollar in a Bull Market
- How YOU Can Help Pass the Swiss Gold Referendum
- Here's what the World Gold Council is doing today amid the war against gold
- Billionaire Sprott’s Terrifying Warning As Gold & Silver Smashed
- I know this much is true
- The End of the US Dollar Imperium -- Patrick Barron
- Gold Prices in The Post-QE World
- FOMC Hits Gold and Silver
- Gold Price Falls, Stocks Record Highs as Japan Goes ‘Weimar’
- EUR/USD - Double Bottom Or New Lows?
- Peter Boockvar - “Buy As Much Gold As You Can Now”
- James Turk - Two Key Charts, Gold & The Destruction Of Money
- Bank of Japan takes over for Fed in pumping markets up
- Alasdair Macleod: China's gold strategy
- More Downside Ahead for Gold and Silver
- China's Gold Strategy
| Maguire: This Triggered Today’s Massive Selloff In Gold & Silver Posted: 01 Nov 2014 12:00 AM PDT from KingWorldNews:
People ask, 'How do you know?' We know that it has to be an official (entity). It cannot possibly be somebody with a compliance department with a risk position they have to look at. And the other thing is this (trade) was enacted in the foreign exchange markets, as opposed to the Comex. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold And Silver – Elite Supernova Death Dance In PMs? Posted: 31 Oct 2014 11:15 PM PDT On several occasions, over as many months, comments have been made here to the effect that reading developing market activity is the best source for knowing what to expect, moving forward. Most people have a need to rationalize the markets by coordinating known events with the current price. Last year, it was how many record coin sales around the world would impact the market, then the number of tonnes China and Russia were importing. Lately, the opening of the Shanghai Gold Exchange where true price discovery could be expected, the ongoing disappearance of reserves held by COMEX and LBMA, etc, etc, etc., none of which had the market impact for which so many had hoped. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 31 Oct 2014 11:00 PM PDT by Chris Powell, GATA:
Dear Friend of GATA and Gold: Another day, another attack on the monetary metals in the futures markets, another commentary by London metals trader Andrew Maguire at King World News that the price decline has prompted huge offtake of real metal – http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/10/31_M… – another commentary by the TF Metals Report’s Turd Ferguson about strange movements of metal in the Comex warehouses – http://www.tfmetalsreport.com/blog/6272/information-deemed-be-reliable – speculation by Colorado securities lawyer Avery Goodman and others that the attack is another coordinated central bank operation, this time to discourage support for the referendum campaign that would require Switzerland to commit more of its foreign exchange reserves to gold – | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| WARNING: Avoid this corrupt, third-world country at all costs Posted: 31 Oct 2014 09:40 PM PDT from Sovereign Man:
Anderson couldn't believe it. This is the sort of stuff you always hear about in these third world countries—corrupt cops and state robbery. Ultimately Anderson gave in; the cop let him go and did not charge him with a crime, but took every last penny in the vehicle. And for the last two years, Anderson has been trying to unsuccessfully fight it in the country's Kangaroo court system. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Morgan Report – November 2014 Posted: 31 Oct 2014 09:00 PM PDT from silver investor.com: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Billionaire Sprott’s Terrifying Warning As Gold & Silver Smashed Posted: 31 Oct 2014 08:40 PM PDT from KingWorldNews:
And the market can be so wrong for so long, and all the sudden we get this reversal of action. And when I look at what's going on in the economy, I think it's just totally depressing what's happening to world economies. We know Europe is going into recession. We had consumer consumption in the U.S. that was negative .2 percent for September. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Forgotten Anniversary: One Hundred Years of Legal Tender Posted: 31 Oct 2014 08:00 PM PDT Gold University | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| India may hasten gold mining plan as means of curtailing trade deficit Posted: 31 Oct 2014 07:41 PM PDT Government Digs Up Gold Mining Proposal; Extraction Likely by End of 2016 By Vikus Dhoot http://economictimes.indiatimes.com/industry/indl-goods/svs/metals-minin... NEW DELHI, India -- The government is considering a proposal to allow a private company to commercially extract gold from Ganajur gold mines in Karnataka, one of the largest known gold deposits in the country, as it looks at ways to step up production and curb the galloping trade deficit. The commerce ministry has pushed for fast-tracking the project, being developed by the BSE-listed Deccan Gold Mines Ltd, and the mines ministry is taking a fresh look at the mining lease application. "The mines ministry has informed the cabinet secretariat that it is taking a fresh view on the mining lease for Ganajur," said a senior government official aware of the development. ... Dispatch continues below ... 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: "The ministry will firm up its stance on the issue by mid-November," the official added. The mining lease application is pending since 2010. India's largest gold mine at Kolar, which had yielded gold since the Indus Valley civilization era, was shut down 13 years ago and plans hatched under the UPA to revive it have come to naught. In 2009 the Karnataka government had granted a prospecting licence for the Ganjur project that includes a 2,000-tonnes-per-day gold ore processing plant and recommended the mining lease to the Centre a year later. The mines ministry sought several clarifications from the state and the developer, but had held back mining lease. No new gold mining capacity has come up in the country in the intervening period, with production from the three existing mines at Hutti, Uti, and Hirabuddini, hovering around 2.8 tonnes a year. Commercial extraction of gold at the mine could start by the end of 2016 if mining nod comes through soon. About 308,000 ounces or a little less than 9 tonnes of gold, are expected to be tapped at Ganajur's first mine, from around 1.5 million tonnes of gold ore. Deccan Gold Mines managing director Sandeep Lakhwara told investors recently that the Ganajur project could be expedited in the greater public interest by the NDA government. "Minister of State and Commerce Nirmala Sitharaman has talked about eight projects that would be followed up in the greater public interest and I am happy to say that Ganajur fits into one of those ... that have been notified for fast tracking by the minister," Lakhwara said in a conference call on September 25. "So it should therefore certainly receive better attention than it has been receiving earlier." The firm said it expects the mines ministry to process its application soon, following which it will apply for environmental clearances and hopes to begin commercial production by end of 2016. Indians' insatiable appetite for the yellow metal pushed up the country's trade deficit to an 18-month high of $14.2 billion last month. 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: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| On the Comex the Gold Price Dove $27.00 to End at $1,171.10 Posted: 31 Oct 2014 05:42 PM PDT
GOLD/SILVER RATIO hit a new high for the move yesterday at 73.095, but it backed off strongly today and ended at 72.843. It's no more than a straw in the wind hinting at a turnaround, but it's about the most we've got. On Comex the GOLD PRICE dove $27.00 (2.25%) to end at $1,171.10. Silver plunged 1.92% or 31.4 cents to $16.077. The SILVER PRICE low today came about 9:30 a.m. at $15.64. High was $16.51 Gold's low was $1,160.50. Both the silver and gold prices have re-entered RSI oversold territory, but as we have so often experienced, oversold, like overbought, can get oversolder. We've seen the waterfall days, two of them, so are probably near the end of this for the short term. It has done a lot of damage to the technicals and to morale. We have to reckon with the possibility of gold dropping down to $1,100 and silver to $14.90 - $14.65. So for a while central banking is wearing her silver slippers and riding high. I hope Janet fills her size 12 up with champagne and enjoys it, because sooner or later all that hot money's coming home to roost. That's when THEY'LL wish they'd a bought a half pint and stayed in the wagon yard. There's an old time song from 1910 entitled "I wished I'd a bought me a half-pint and stayed in the wagon yard." A country boy laments that he loaded up his year's harvest, a bale of cotton, and drove to town to sell it, but instead of staying with his team in the wagon yard (think "truck stop") he went out on the town and bought a bottle of gin. One by one the city folks helped themselves to his money. He laments, "Don't monkey with them city ducks, you'll find them slick as lard. "Just go and get you a half a pint, and stay in the wagon yard." Mercy! Don't I feel that way now, a-tangling with them clever central bank city ducks! Slick as lard don't half describe it. 'Pears they could get away with knifing their mamas in front of a cop. Latest lunacy poured forth from the Land of the Rising Sun while this mother's son was still sleeping peacefully. Seems the Bank of Japan is going to accelerate its government bond purchases and triple (yup, multiply three times) its purchases of ETFs and real estate investment trusts. Folks, this morning the Japanese yen gapped down from 91.56 yesterday to 89.62 on open today, a 2.1% drop before you ever pulled your hand out of your pocket to shade your eyes. You can't trade markets like that. And how are markets "free" if folks who can legally create money out of thin air jes' buy and buy and buy? It's the durnedest old lunatic asylum I ever saw. But it don't do no good to complain. They got the key to the money pump, and they're gonna pump it dry for their friends. Rest of us just have to sit and suffer, till one of us works up nerve enough to say NO. On to markets: It was the worst week silver and gold have had since April 2013. Stocks left an "Icicle" behind on the charts, falling straight down and climbing straight back up (yeah, I'm sure there ain't no Nice Government Men fingerprints on that job!). I won't say another word about it, it'll just make me sound like a sourpuss. Key to this'yer puzzle is the US dollar. The FOMC announcement persuaded that market that the dollar was going to get stronger. Today it hit 87.25 at its high, but settled back only 0.82% up (71 basis points) at 86.97. Indicators point to higher prices, so my double top theory will probably be proven wrong Monday with a close above 87. Keep it in the back of your mind, however, because it ain't as crazy as it sounds. Should the dollar falter, everything changes. I already told y'all that the yen fell plumb out of bed this morning, gapping way, way below the last low (90.93) and closing at 89.04, down 2.75%, a gargantuan move for a currency. Euro did not so badly crumble. It lost 0.75% to $1.2519, but that's still above its last low at $1.2501. Indicators point to the cellar. Yields on US government paper left a carrot or icicle on the chart, too, along with stocks. Flight to safety that sent money out of stocks and into the "safety" of US government debt has passed for a while. After crashing like the Russians were on Wall Street decorating lampposts with stockbrokers, stocks came roaring back on whatever that news was out of the FOMC (durned if I know yet why anybody would pay any mind to them criminals, but I just keep my mouth shut). Dow closed at a new high, 17,390.52, up 195.1 (1.13%). S&P500 made a new high, too, up 23.4 (1.17% to 2,018.05. Nasdaq 100 made a new high as well, as did the Nasdaq 100. Them stocks is flyin' high. All that business I mentioned about B-waves is still sticking in my head, how they can be so strong they can fool you into thinking a whole new leg up is starting when it's the dying gasp instead. Unless the Fed miscreants can manipulate a perpetual bull market, this ought to be over in a week or so. Stocks are rolling over, believe it or not. I had to laugh when I looked at monthly charts. Every index looked the same with a break of the uptrend line but a close back above the line. Mighty pretty. Dow in silver made a new high and moved into very overbought territory (78.56 vs. "overbought" at 70). Moved up 2.89% to 1,075.48 oz (S$1,390.52 silver dollars). Looks to have begun another leg up, but as overbought as it is, surely not. Dow in Gold rose 3.33% today to 14.82 oz (G$306.36 gold dollars), also a new high for the move and also taking it into overbought land. That reaches the top of an internal trading channel that began early this year, so it ought to react back from that on Monday. I can't remember where I read it now, but somebody was speculating on the Nice Government Men holding up the stock market to brew better election results for the incumbents. Naww! Perish the thought. They wouldn't do that! Y'all enjoy your evening! 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.  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Who Will Suffer From A Leveraged Credit Shakeout? Posted: 31 Oct 2014 05:27 PM PDT Submitted by Charlie Hennemann via CFA Institute blog, Of all the noteworthy moments from the 2014 CFA Institute Fixed-Income Management Conference, the bombshell may have been the default call from Martin S. Fridson, CFA. Fridson, CIO at Lehmann Livian Fridson Advisors, has been a leading figure in the high-yield bond market since it was known as the “junk bond” market — and he sees as much as $1.6 trillion in high-yield defaults coming in a surge he expects to begin soon. “And this is not based on an apocalyptic forecast,” he assured the audience. High-yield bonds, typically issued with credit ratings at the bottom of the scale, tend to suffer default surges during troughs in the credit cycle. The first high-yield default surge occurred from 1989 to 1992, and encompassed the collapse of Drexel Burnham Lambert. The second surge ran from 1999 to 2003, following the bursting of the dot-com bubble, and the third happened in the midst of the global financial crisis, from 2008 to 2009. Fridson suggests the next default surge will be larger than the last three combined. Each surge saw an average annual high-yield default rate above 7% (which, if extended over a multi-year period, can add up to real money). Fridson currently projects that 1,155 issuers will default in the next wave. Over a four-year period that easily surpasses the 644 defaults in 1999–2003, the largest of the three prior default surges. For context, Fridson points to the last default surge of 2008–2009: It lasted only two years, and the market swung from a record number of defaults in 2008 to a below-average number in 2009, something Fridson “would have said was impossible.” The reason, of course, was that interventionist policies did as intended in the wake of the financial crisis, cutting the credit cycle short and giving new life to many issuers that were staring default in the face. In the absence of a strong cyclical recovery, this may only have delayed the inevitable. Fridson noted that since 2010, the high-yield market has seen deterioration in the credit-ratings mix even as it has grown at a compound annual growth rate exceeding 10%, fueled in part by European issuers accessing the high-yield markets in lieu of bank credit, which has been harder to get thanks to more conservative bank capital requirements. One key assumption behind Fridson’s forecast is that the Fed ends its program of quantitative easing (QE) and allows interest rates to rise. QE may have ended, but Fed guidance calls for interest rates to remain low for a “considerable time.” Fridson was asked about QE and the persistence of low rates during Q&A after his presentation, and the answer left the audience murmuring. “If we’re in this Fed rescue mode [in 2016–2019], then I think we’re in a lot of trouble. Very serious trouble.” The final presentation at the Fixed-Income Management Conference was from Paul Travers, a manager of bank loans and collateralized loan obligations (CLOs) at Onex Credit Partners. Travers was quick to offer his thoughts about Fridson’s forecast, which would have a profound impact on the bank loan market if it comes to pass. “I hope he’s wrong,” Travers exclaimed, noting that high-yield issuers are often also issuers of syndicated loans. “I don’t know if I can live through another four-year default wave.” In a typical default situation, the holders of senior-secured bank debt would be expected to have much better recoveries than holders of the same issuer’s high-yield bonds, because bank loans have higher priority in the company’s capital structure. But investors in loans may not do as well in the next credit trough as they have in the past, as leverage multiples in the loan market have steadily climbed since 2011. Unlike fixed-rate high-yield bonds, leveraged loans typically offer floating rates indexed off of Libor, usually resetting monthly, which provides some protection for investors against the prospect of a rising interest rate environment. Travers considers the current credit environment “relatively benign,” and said the current low-rate, low-growth environment is the “sweet spot” for the leveraged loan market — positive growth that isn’t rapid enough to threaten a rate increase. Under these conditions, the S&P/LSTA Leveraged Loan Index par amount outstanding increased to $768 billion in July of this year, adding $76 billion in the first half of 2014. During his presentation, Travers noted that “Covenant Lite” loans now exceed 50% of the S&P/LSTA Leveraged Loan Index. According to Travers, fewer loan covenants wouldn’t necessarily lead to a higher incidence of defaults, since loan holders in most instances would be inclined to waive covenants rather than force an issuer into default. But over time, the lack of tight covenants could allow cash to flow out of the company, resulting in lower loan recoveries for investors in the event of default. Of more immediate concern to Travers was the impact of retail fund flows on the leveraged loan market, which had seen 14 consecutive weeks of negative flows at the time of the conference after a long period of inflows. A fairly recent phenomenon in the leveraged-credit market, these retail flows from large loan managers — forced to buy and sell large blocks of loans to put cash to work or meet fund redemptions — contribute to volatility. In addition to the underlying loan market’s volatility, Travers suggested the CLO market was experiencing volatility itself as a result of just-announced risk retention provisions under section 941 of Dodd–Frank, which would require managers of CLOs to own at least 5% of the risk in their portfolios. Anticipation of this rule was a contributing factor in the rush of CLO issuance in 2014, which equaled 187 deals at the time of the conference. While the risk-retention requirement isn’t expected to kick in immediately, Travers suggested that going forward, investors should determine whether CLO managers have the capital to comply with this new requirement as part of their due diligence process. Fridson and Travers approached the leveraged credit market from different perspectives, but their talks suggested that the placid environment encouraged by low interest rates and accommodative credit won’t persist. The next credit cycle will pose some serious challenges for leveraged-credit investors, regardless of their place in the capital structure. Under the circumstances, the retail component of leveraged credit investments — absent from prior default surges — is probably not a positive development. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The BoJ Jumps The Monetary Shark - Now The Machines, Madmen And Morons Are Raging Posted: 31 Oct 2014 04:09 PM PDT Submitted by David Stockman via Contra Corner blog, This is just plain sick. Hardly a day after the greatest central bank fraudster of all time, Maestro Greenspan, confessed that QE has not helped the main street economy and jobs, the lunatics at the BOJ flat-out jumped the monetary shark. Even then, the madman Kuroda pulled off his incendiary maneuver by a bare 5-4 vote. Apparently the dissenters - Messrs. Morimoto, Ishida, Sato and Kiuchi - are only semi-mad. Never mind that the BOJ will now escalate its bond purchase rate to $750 billion per year - a figure so astonishingly large that it would amount to nearly $3 trillion per year if applied to a US scale GDP. And that comes on top of a central bank balance sheet which had previously exploded to nearly 50% of Japan’s national income or more than double the already mind-boggling US ratio of 25%. In fact, this was just the beginning of a Ponzi scheme so vast that in a matter of seconds its ignited the Japanese stock averages by 5%. And here’s the reason: Japan Inc. is fixing to inject a massive bid into the stock market based on a monumental emission of central bank credit created out of thin air. So doing, it has generated the greatest front-running frenzy ever recorded. The scheme is so insane that the surge of markets around the world in response to the BOJ’s announcement is proof positive that the mother of all central bank bubbles now envelopes the entire globe. Specifically, in order to go on a stock buying spree, Japan’s state pension fund (the GPIF) intends to dump massive amounts of Japanese government bonds (JCB’s). This will enable it to reduce its government bond holding - built up over decades - from about 60% to only 35% of its portfolio. Needless to say, in an even quasi-honest capital market, the GPIF’s announced plan would unleash a relentless wave of selling and price decline. Yet, instead, the Japanese bond market soared on this dumping announcement because the JCBs are intended to tumble right into the maws of the BOJ’s endless bid. Charles Ponzi would have been truly envious! Accordingly, the 10-year JGB is now trading at a microscopic 43 bps and the 5-year at a hardly recordable 11 bps. So, say again. The purpose of all this massive money printing is to drive the inflation rate to 2%. Nevertheless, Japanese government debt is heading deeper into the land of negative real returns because there are no rational buyers left in the market - just the BOJ and some robots trading for a few bps of spread on the carry. Whether it attains its 2% inflation target or not, its is blindingly evident that the BOJ has destroyed every last vestige of honest price discovery in Japan’s vast bond market. Notwithstanding the massive hype of Abenomics, Japan’s real GDP is lower than it was in early 2013, while its trade accounts have continued to deteriorate and real wages have headed sharply south. So there is no recovery whatsoever—-not even the faintest prospect that Japan can grow out if its massive debts. The latter now stands at a staggering 250% of GDP on the government account and upwards of 600% of GDP when the debts of business, households and the financial sectors are included. And on top of that there is Japan’s inexorable demographic bust—–a force which will shrink the labor force and squeeze even further its tepid growth of output as far as the eye can see. Stated differently, Japan is an old age colony which is heading for bankruptcy. It has virtually no prospect for measurable economic growth and a virtual certainty that taxes will keep rising —since notwithstanding the much lamented but unavoidable consumption tax increase last spring it is still borrowing 40 cents on every dollar it spends. So 5-year JGBs yielding just 11 bps are an insult to rationality everywhere, and a warning that Japan’s financial system is a disaster waiting to happen. But even that is not the end of it. Having slashed its historic holdings of JCBs, the GPIF will now double it allocation to equities, raising its investment in domestic and international stocks to 24% each. Stated differently, 50% of GPIF’s $1.8 trillion portfolio will flow into world stock markets. On top of that—the BOJ will pile on too—-tripling its annual purchase of ETFs and other equity securities. This is surely madness, but the point of the whole enterprise explains why the world economy is in such extreme danger. A Japanese market watcher caught the essence of it in his observation about the madman who runs the bank of Japan,
That’s right. Its 2% on the CPI…..come hell or high water. There is not a smidgeon of evidence that 2% inflation is any better for the real growth of enterprise, labor hours supplied and economic productivity than is 1% or 3%. Its pure Keynesian mythology. Yet all the world’s central banks are beating a path toward the same mindless 2% inflation target that lies behind this morning’s outbreak of monetary madness in Japan. Folks, look-out below. As George W. Bush said in another context…..this sucker is going down! | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold And Silver Price Crash Of 2014 Coming? Posted: 31 Oct 2014 03:59 PM PDT Both gold and silver went sharply lower this week, especially yesterday and today. Gold in U.S. Dollars closed the trading session and trading week at 1,172.49, a decline of 2.14% on the day. Silver closed at 16.14 U.S. Dollar, which is 1.53% lower on the day, albeit a spike lower during the trading session to $15.65 for only some minutes. What is happening with the metals? Are the price of gold and silver about to crash to a low of 2014 or has the worst passed? Before trying to answer those questions, it is important to look at the developing activity across markets. The key point is that the drivers for the gold and silver price are mainly two other key assets: the U.S. Dollar and equities. Central banks are driving the financial worldToday, the Japanese central bank (Bank Of Japan, also BOJ) decided to launch a mega-money-printing program. The BoJ aims to increase its monetary base by 80 trillion yen annually, from 60-70 trillion yen previously, and boost the average maturity of JGB purchases 7-10 years. When BoJ Governor Kuroda began his current QQE program, he said Japan would reach 2% inflation in two years. The two-year deadline ends in around five months and inflation is still only halfway to the BoJ's target. There is essentially no chance that the bank will meet this target, even with this new stimulus. Matthew Weller from Forex.com points out that the BOJ stimulus, combined with Wednesday's less-dovish-than-expected statement from the Federal Reserve, today's news creates crystal clear policy divergence between the Fed and the BOJ. “In the US, the Fed ended its third round of quantitative easing by tapering asset purchases by their final $15bn and released a somewhat more hawkish statement than the market was expecting. The bank noted that labor market conditions have improved somewhat, with solid job gains and a lower unemployment rate. The underutilization of labor resources is also gradually diminishing according to the Fed.” As a result, the US dollar was bid on the back of the Fed's statement as US Treasury Bond yields rose and stocks fell. Since then the US dollar has gained even more ground against the struggling euro and yen, while the kiwi and aussie have been able to hold their ground on the back of robust investor sentiment and a slightly risk-on tone in the market. U.S. Dollar strengthAccording to Matthew Weller, the reaction to the Fed's statement is somewhat more severe than one might expect, given that the actual course of monetary policy in the US remains very data dependent. While the Fed noted that the likelihood of inflation running persistently below 2% has diminished somewhat, we are still yet to see a meaningful pickup in consumer price growth. Some of this can be attributed to lower energy prices, but even once food and energy prices are taken out, inflation remains stagnant around 1.7% y/y. EquitiesOne central bank ends QE, another increases it. This is not a trick, but a treat for the markets. The global equity markets found additional buoyancy on Friday after the Bank of Japan surprised the markets overnight by expanding its monetary easing program to about 80 trillion yen a year, up from Y60tn-Y70tn previously. The BoJ will achieve this mainly by increasing its purchases of longer-term Japanese government bonds. The central bank is clearly worried about the impact of the April sales tax hike, the recent fall back in inflation and lower global oil prices. Indeed, the BoJ governor Haruhiko Kuroda himself thinks that the economy is at "a critical moment," pointing out "there was a risk that despite having made steady progress, we could face a delay in eradicating the public's deflation mindset." That's why they increased QE. The markets had already been boosted by the Federal Reserve's promise of keeping interest rates low for an extended period of time. Gold and silverThe net effect of this week’s central banks' decisions has been very bullish for the dollar and also stocks. With these two assets both rallying, investors have found it difficult to justify holding the safe haven gold, an asset which not only costs money to store but pays no interest or dividends. What's more, we have also had mostly positive US macroeconomic data, including the first estimate of third-quarter GDP, which showed the world's largest economy grew by an above-forecast annualized rate of 3.5% in the third quarter. This has lent additional buoyancy to the dollar, causing more pain for buck-denominated assets. As a result of the above-mentioned fundamental factors, gold has broken below the key support area of $1180/5. This breakdown has therefore given rise to follow-up technical selling. Unless gold stages an unlikely sharp reversal here and close Friday's session back above $1180/5, the chances are we will see some significant losses in the near future. If the metal continues to hold below the $1180/5 area then most of the exiting longs will be forced to abandon their positions which would undoubtedly increase the selling pressure even further. Others might even be thinking the unthinkable: "if you can't beat them, join them" and act by reversing their bullish positions. The yellow metal has already reached the 127.2% Fibonacci extension level of the last rally that started at the beginning of this month, at $1163. The 161.8% extension of the same move is at $1138/9. In between these levels is the psychological $1150 mark which could also be a target. Meanwhile the 127.2% extension of a separate move, the short-lived rally from the 2013 low comes is at the psychological $1111.1 level. On top, the gold holdings of the largest gold ETF, the SPDR GLD ETF, shows no signs of accumulation. According to Dan Norcini, in an environment in which most commodities are falling in price, and one in which the Dollar is holding up fairly well, and one in which inflation fears are nowhere in sight, there is not enough Western-based investment interest in the metal to push the price higher. Even with increasing demand from the East there should be no expectation of higher gold prices without an accompanying demand surge in the West; the best the Eastern-based buying can do is to slow the descent of the metal or keep it from plunging even more sharply than it otherwise might have done. It takes hot money flows from the West to generate a bull market in gold, or in any other market for that matter and the simple truth is that those money flows are MIA when it comes to all things gold for the moment.
The most worrisome fact for gold bulls is undoubtedly the collapse of the gold miners in the week which ended on October 31st. The gold mining index GDX closed the week and month on 17.21, some 15% lower than a week ago. Everyone looking at the following chart will agree that the miners do not look constructive at all.
We warned our readers yesterday that capitulation in the precious metals complex is in the air. If capitulation is about to happen, it could bring some relief for gold bulls on the long run, as a wash-out bottom would eventually drive all sellers out of the market. On the other hand, the losses will be huge until the metals and miners bottom. Also, there is no guarantee that a capitulation will not result in a lower trading range. Are we about to experience another crash of the price of gold and silver, as well as miners, comparable to what we have seen in April and June of 2013? We do not exclude it, given the strong trends explained above: rising U.S. Dollar on the back of a sharply declining Yen and rising equities. On the other hand, were equities about to reverse their course because the end of QE would bring uncertainty and volatility, it could well be that the metals (mainly gold) would benefit from new money inflows. It is key to monitor how the gold price will behave around the current price, i.e. $1,180. If it fails to break down significantly for at least 3 consecutive days on the daily chart, or if it manages to stay above $1,180 on the weekly chart, there could be hope for gold bulls that the triple bottom has held. However, odds favor lower gold and silver prices ahead, at least in the short run. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| "The Most Important Chart For Investors" Flashback, And Why USDJPY 120 Is Now Coming Fast Posted: 31 Oct 2014 03:32 PM PDT Back in late September, we posted what Albert Edwards thought at the time was "The Most Important Chart For Investors" which was quite simply, a chart of the USDJPY. Here is the punchline of what he said:
Considering the BOJ's overnight move, he was absolutely correct. So for all those who missed it, here it is again, because it explains not only where the Yen is headed next, but why, sadly, this could well be the end of Japan and the mirage of a recovery that has had everybody hypnotized for the past 6 years. Albert Edwards Presents "The Most Important Chart For Investors" Which incidentally has nothing to do with stocks or bonds, and everything to do with all-important FX (which just happens to drive all correlation and risk pairs around the globe thanks to the far greater embedded leverage in FX, and is why all "modern" traders focus almost entirely on the USDJPY and EURUSD). Specifically, as SocGen's Albert Edwards notes "we show on the front page chart what I believe to be the key chart investors should be focusing on at present. It shows the yen breaking down against the US dollar. This may be more than just a strong dollar story on the back of Fed tightening however, as it seems the yen has now also broken key support levels against the euro. This is a weak yen story. Though there are good fundamental explanations for recent dollar strength vis-Ã -vis both the yen and the euro, often commentators like to find a fundamental story to fit market events even when price movements have occurred without any clear fundamental explanation ? for we teenage scribblers (as ex-UK Chancellor Nigel Lawson dismissively called us) all have to fill those column inches of commentary." Wait, Albert is now a chartist? So it would appear, with a few large caveats:
We couldn't agree more, since we ourselves enjoy point out, more often than not, when various algos activate momentum ignition strategies in the USDJPY to push the broader S&P 500 above (never below) key resistance levels. In fact, it was on Zero Hedge where we pointed out last night the extreme oversold level of the Yen. Edwards, however says to ignore this, and instead to focus on what may be historic weakness in the Yen, which in turn will clobber the global economy.
Why does a rapidly weakening yen spell trouble for the global economy?
That's what could happen. Here is why Edwards believes, it will happen.
Remember that "shocking" CPI print from last week? If the SocGen strategist is right, prepare for many more such "stunners" as Japan makes deflation-exporting its only business model, one which could well crush the economies of Europe, China, and the US... and Japan! Case in point: recall what just happened to Sony last week. But the all important offset, a rising global stock market, should make it all better at least until the entire economic base is so hollowed out, not even algos can dismisses the record divergence between stock market myth and economic reality. Edwards' bottom line: "If a clear break in the yen downwards against both the dollar and euro is occurring, not only will this spell trouble for the beleaguered Chinese economy and exacerbate deflation in the west, but it will also break the spell of German economic dominance."
* * * And here is what Albert told us moments ago:
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| The American Illusion of Prosperity Posted: 31 Oct 2014 03:04 PM PDT PODCAST: The American Illusion of Prosperity On this week's show, economist Jerry Robinson exposes America's economic house of cards and provides his latest market insights. Plus, an update for gold and silver investors. [[ 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: 31 Oct 2014 02:54 PM PDT This post A Manifesto, of Sorts appeared first on Daily Reckoning. [Ed. Note: Our co-founder, Addison Wiggin, re-entered the email edition fray today. He took the opportunity to think aloud about what we do in these pages and how he got started. Read on...] Human relationships… and passion. Those are the subjects that propel us forward. Our beat is money — but a lot of what we write about isn’t directly related to money. It’s about people. "You can't write about investing every day or your readers will go crazy." “You can’t write about economics every day or you’ll go crazy,” explained our writing partner, friend and mentor Bill Bonner last week. “You can’t write about investing every day or your readers will go crazy. You have to write about something that is richer, fuller and actually more important.” And so we re-enter the fray with a story… one you may already be familiar with. If not, it helps explain a little about who we are… and what we do. “Tell us a little about Bill Bonner,” a reporter for The Daily Bell once asked me. “Umn…” I began. “Here’s an anecdote I’ve used to roast Bill at awards ceremonies that illustrates his laissez-faire approach to business and life.” I’m going to share it with you on this fine Halloween for a very good reason… it will improve your outlook on life… and make you richer, happier, healthier and more successful. No small order, mind you. But a proven fact all the same. In 1999, I was working at the Cato Institute in Washington, D.C., when I’d heard Bill needed a writing assistant in Paris. I’d known Bill for nearly a decade at that point, but was still wending my way toward a professional career I could live with. From my desk in Washington, I wrote to Bill offering my services. “Bill, would you like me to come to Paris and write for you?” I asked. “Yep,” was the three letter email I received in response. For some background, I’d just gotten married. My wife and I had had our first child only three months before. But I quit my job, boarded a plane and moved them to Paris. It was a rather momentous occasion in our young lives. When we arrived in Paris, I went to the address given to me. It was an old apartment on the Boulevard Saint Germain, where I found, behind a stack of newspaper clippings and dog-eared books laying open with notes in the margins, Bill, typing away on an old laptop. Mr. Bonner looked up and said: “Addison! What are you doing here?” He’d forgotten I was coming. Forgotten I’d moved my family to Paris just to work with him. "Hmn… well, since you're here, why not pull up a seat?" He moved the stack of papers, and I sat down at the desk next to him. The same desk. On the same side as he was sitting. There was no other place to sit… and there I stayed for the next three months, pounding out the format for and editing The Daily Reckoning. At the time, I was using an old “loaner” laptop from Agora with a crack in the screen. The battery no longer functioned. So every time Bill had an idea and leaned back in his chair, he’d knock the power cord out of the wall and I’d lose all my work for the day. Occasionally, his pile of research papers would collapse and spread all across my keyboard. We eventually moved to a larger space, but from those auspicious days arose one of the more interesting and engaging e-letters on the Internet. "The model that the mainstream media uses, along with mainstream economists, is flawed." The Daily Reckoning has reached millions of readers… inspired thousands more… and became the nucleus of a world-spanning company that now sports offices in 18 different countries. All great drama is derived from the passions of men (and women) and how they interact with one another. Fear, greed, mob mentality and insanity are just a few of the very interesting human emotions. The study of economics is an exploration of human passion writ large across history. It’s inexact. It’s frustrating. It’s fascinating. “Addison Wiggin and Bill Bonner,” the reporter summarized, “have been in the forefront… of writers in predicting the current economic crisis long before it occurred. We have pointed out before that the hard-money community is consistently accurate in its forecasting, yet the mainstream media seem blissfully ignorant of this fact. “The issue is much bigger than failed forecasts, however. The model that the mainstream media uses, along with mainstream economists, is flawed. It didn’t anticipate the problems of the 1970s, nor of the early 2000s, and it certainly didn’t anticipate the difficulties of the later 2000s.” Today, we renew our passion for the project. If you take heed of Jim Rickards‘ current forecast, the next shoe to drop is going to be a doozy. With luck and hard work, the ideas we publish will be unique and will benefit you in ways you cannot find anywhere else on the Internet or in print. Ideas that we guarantee in writing will make you richer, happier, healthier and more successful… even in the face of what are likely to be hard times. Cheers, Addison Wiggin P.S. Whither goes the economy and the financial markets, so goes The Daily Reckoning. You’d think “contrarian” opinions would react counter to the broader trends in the marketplace, but that’s just not true. When the markets — stock, bond, housing, credit, you name it — are on fire, the marketplace for new and interesting ideas is on fire too. To make sure you’re accessing that entire marketplace — rather than just the small sliver offered you by the mainstream financial media — we invite you to join us in our email edition by signing up for FREE, right here. The post A Manifesto, of Sorts appeared first on Daily Reckoning.       | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| A Silver Nanoparticle Problem that Nobody Knew About is Solved Posted: 31 Oct 2014 02:30 PM PDT It turns out that silver nanoparticles are not as solid as initially thought, making their use in electronic components and circuits a bit challenging as gadgets become increasingly smaller. Fortunately, there is a solution. Because of its superb electrical conductivity and high melting temperature, silver is used in many aspects of electronic design. Recently, however, scientists have discovered that as the particles become microscopically smaller – in the 10 nanometer range – their outside layer mimics water droplets, wobbling and changing shape, while the inside stays stable. This can be problematic for their use in electrical contacts at the molecular level (10 nanometers is one-thousandth of the width of a human hair) as the silver could leak and cause short circuits. This could be especially challenging in devices that move around a lot or rely on movement like tiny motors or sensors in mobile applications. A research team at MIT first noticed this phenomenon while studying silver nanoparticles but they believe it will apply to other metal nanoparticles as well. MIT professor Ju Li notes that the use of nanoparticles in applications ranging from electronics to pharmaceuticals is a crucial area of research at the moment: "These researchers want to form shapes, and they want these shapes to be stable, in many cases over a period of years. If gold or silver nanoparticles are used in electronic circuits, these deformations could quickly cause electrical connections to fail." Once Li and his team began delving into this behavior, they saw that only the top layers – one or two atoms thick – actually moved. As they moved, they deposited themselves elsewhere on the surface. However, the inside atoms remained solid and in perfect shape. Scientists had theorized that this surface movement was happening but this is the first time it has been confirmed. Now that this movement has been observed and understood, the solution to allowing nanoparticles to retain their shapes turns out to be rather simple. When a thin layer of oxide is applied, the liquid-like movement is almost completely eliminated and the nanoparticle remains stable, ensuring that silver will remain a solid choice for nanotechnology applications.
Source: The Silver Institute (subscribe to the newsletter)
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| Meet "Rolling Jubilee" - The Group Buying & Tearing-Up Student Loans Posted: 31 Oct 2014 02:16 PM PDT An offshoot of 'Occupy Wall Street' is taking the $1.2 trillion student loan bubble, debt servitude dilemma of America's youth into its own hands... bit by tiny bit. As The BBC reports, activist group 'Rolling Jubilee' wants to "liberate debtors" by buying student-debt-bundled ABS on the secondary market (where they trade at significant discounts) and writing off the underlying loans. As Rolling Jubilee notes, "your debts are on sale... just not on sale to you," until now. Rolling Jubilee says the problem lies deep within the structure of the education system and the way that selling education as a commodity reinforces inequality.
This week, the Federal Reserve chief Janet Yellen warned the quadrupling of the student loan debt since 2004 represented a barrier to social mobility.
Laura Hanna at Rolling Jubilee says the student debt situation amounts to a "bubble".
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| Implications Of Greenspan’s Latest Talk for Gold Investors Posted: 31 Oct 2014 02:01 PM PDT By Henry Bonner from Sprott Money: I traveled last week to the New Orleans Investment Conference, previously known as the 'Gold Show.' Jim Blanchard, a man known for promoting the right to own gold during the Nixon era, started the conference in 1974. Early on, the conference was a gathering place for investors in precious metals. Speakers such as Rick Rule broke out into the investment scene through conferences like this one. I'll report later on the many speakers who attended the conference – and try to boil down some of the salient points from the highly valuable conference (attendees took nearly a week away from their regular lives to attend). For now, I'll confine myself to the headline speaker of the show – former Fed Chairman Alan Greenspan – and what his comments could mean for gold investors. Greenspan ran the Fed from 1987 to 2006. He ran it right through the great technology bubble in the late 90's and up to the housing bubble. He is widely accused of voluntarily inflating these asset bubbles through excessive money printing and 'easy money.' He's also viewed as a big-government sell-out because he began his career as an adherent to the economic philosophy of Ayn Rand, with minimal government interference, and, relevant to his role as director of the Fed, sound money. So what happened to the young ideologue that Greenspan had been? Did power corrupt him? Did he fold under pressure to run the printing presses, debasing the currency and propping up the government? And why come to this conference? Why submit to being trotted out and publicly accused of his crimes for all to see? At least that's what we imagined would happen during his main panel alongside Marc Faber, and Porter Stansberry (of Stansberry & Associates). Well, it wasn't quite the public flogging we'd expected. As Rick Rule joked later on, 'the man's been through congressional hearings; I think he can handle us.' We did, though, learn a few important things about the Fed. First off, Greenspan claims he has always remained true to Austrian economics and the principle of sound money. He fell into his role as Fed Chairman purely by accident, he claimed, and what he did there, he did it because he had to. He explained that the capital needs of the Federal government were so massive that the only way to prevent disaster for the rest of the economy was to keep feeding the beast with cheap money. If the Fed hadn't created and circulated new money, the Treasury's insatiable demand for capital would certainly have 'crowded out' the rest of the economy, wrecking the entire private credit system. Political realities, he explained, in the form of entitlement spending and off-balance sheet obligations of the US government, trump the need for sound money every time. It wasn't his fault – that's just how the system works. It's set up to redistribute income from savers, who lose income because of low interest rates, to spenders. In other words, Greenspan was a man who was forced by circumstance to go against his beliefs. Coming to the show, I had expected to disagree with Greenspan, but what I found was that the Fed Chairman was saying exactly what we have believed all along. Sound, stable currency is incompatible with the welfare state. Greenspan may have slipped away from the path, but he's a great spokesperson for our message. The Fed is unlike any other business in the world. It's the only one that we know of that literally creates 'something from nothing.' The Fed wills new currency into existence, which it can then 'sell' by charging interest. Every dollar comes into existence as a debt due to the Fed; the more dollars are out there, the more money the Fed makes. The interest it receives is 'pure profit.' So it's no surprise that as the government's demand for capital has increased, the Fed has 'accommodated' that demand. Even if the Fed has to lend the government the money to pay its interest, that new money costs nothing to create, and it adds to the bottom line. We did get one striking admission out of Greenspan. The Fed is not independent of the government, he said, calling suggestions to the contrary 'naïve.' Greenspan didn't speak much to role of the Fed. He didn't talk about inflation targets, or comment on how the Fed could help grow the economy, as he would have if it had been a New York Times interview I'm sure. Hidden in his answers, however, was a big prediction for how the Fed will likely act in the future. It's not about juicing the economy or keeping the currency stable, although those are certainly justifications that are used. The truth is, the Fed is merely adjusting supply to meet demand. That's what he meant when he said that the Fed had to increase the supply of debt to avoid the private sector being 'crowded out' of the market. Its mission isn't to keep the currency stable, it's to help fund the spending of the US government, and to defend the banking system. This suggests that as long the US government resort to high levels of debt, the Fed isn't likely to decrease the supply of money. Greenspan might have an inkling of something he's not telling. Here's what the former Fed Chairman had to say about the direction of gold and interest rates: "Gold – measurably higher. Interest rates – measurably higher." The Fed isn't just dangerous because it serves the banking system; it also has another fatal flaw – hubris. In late 2013, Greenspan wrote in Foreign Affairs that he hadn't seen the financial crisis coming because the economy hadn't conformed to the Fed's models:
The problem with this kind of thinking – that a mathematical model should be capable of predicting human behaviors in the markets – is exactly what went wrong with Long-Term Capital Management (LTCM) in the 1990's. LTCM was a hedge fund management firm which deduced that there was only an infinitesimal chance of a serious crash in the stock market. It also claimed that the odds of correction were knowable, and could be hedged against. A few years later, in 1998, the market experienced an unforeseen crash, and LTCM went bankrupt. Now the Fed has a new set of number crunchers, and a new, activist, leader. The Fed's going full throttle, pushing ahead with low interest rates and easy money. It also has a brand new set of mathematical models. Are they now more humble about their ability to predict the future? Are they looking for the market to tell them what's working, or are they favoring the theory? In the years since the stimulus has been launched, spending has been muted while housing, stocks, and bonds have increased in value. Average incomes are stagnant or lower. Nearly all economic gains have been accrued to 'rich people' in the form of asset inflation. Yet in a recent interview with Time magazine, Yellen's view – that stimulus doesn't just help rich people, but that it lifts the whole economy remained unchanged: You know, a lot of people say this (asset buying) is just helping rich people. But it's not true. Our policy is aimed at holding down long-term interest rates, which supports the recovery by encouraging spending. In other words, the way the Fed models the economy has been wrong before; it will likely be wrong again. P.S.: Not yet a Sprott's Thoughts subscriber? Sign up here and get your free electronic copy of the Sprott Gold Book. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Billionaire Eric Sprott Says Stock Market Will Crash, Not Gold Posted: 31 Oct 2014 01:54 PM PDT  With the mainstream media celebrating new highs on the S&P and the Dow, and gold and silver trashed for a second day, billionaire Eric Sprott told King World News that it's the stock market that is going to crash, not gold. Below is what Sprott, who is Chairman of Sprott Asset Management, had to say in Part II of a remarkable series of interviews that will be released today.This posting includes an audio/video/photo media file: Download Now | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Jim Rickards: Obama Ending Alliance with Saudi Arabia and Killing the Petrodollar Posted: 31 Oct 2014 01:52 PM PDT At the San Antonio Casey Research Summit, Jim Rickards sat down with Alex Daley to talk about the pain ahead for the US Dollar, why we'll soon see SDRs, and other harbingers of the Death of Money. I sat down with Jim Rickards, author of many best-selling economics and investing books,... [[ 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 Falls, Stocks Record Highs as Japan Goes ‘Weimar’, “Here Be Dragons” Posted: 31 Oct 2014 01:51 PM PDT Stocks globally surged, while gold fell sharply today despite renewed irrational exuberance on hopes that the Bank of Japan's vastly increasing money printing will fill some of the gaps left by the apparent end of Federal Reserve bond buying. The BOJ decided to increase the pace at which it expands base money to a whopping 80 trillion yen ($726 billion) per year. Previously, the BOJ targeted an annual increase of 60 to 70 trillion yen. The BOJ sailed into deeper uncharted monetary territory with the announcement that they would triple annual purchases of exchange-traded funds (ETFs) and Japanese real-estate investment trusts (REITS) to 3 trillion yen and 90 billion yen respectively. The Nikkei surged 5% in minutes to a seven year high after the Bank of Japan decision, while gold fell. These unprecedented monetary events remind us of the old English mapmakers who used to write on uncharted territories on their maps - "Here be Dragons". The BOJ claimed the surprise action was due to concerns that a decline in oil prices would weigh on consumer prices and delay a shift in sentiment away from deflation. BOJ Governor Haruhiko Kuroda portrayed the decision as a preemptive strike to the 'lost decade' economy, rather than an admission that his plan to reflate the long moribund economy has so far failed. The prime reason for the extraordinary monetary policies is likely that the Japanese economy remains very weak and risks tipping over into a depression. Bankruptcies more than doubled to 214 in the first nine months of 2014 compared with the same period a year ago. The yen's real effective exchange rate has dropped to its lowest level since 1982. With Japan easing likely to deepen, the yen may fall to an unprecedented level. Though the fall of the yen may promote exports - energy, food and raw material costs will rise, especially imports. Given the current weakness what should gold owners do? See Essential Guide to Storing Gold and Silver In Switzerland here MARKET UPDATE Bullion for immediate delivery lost as much as 2.6% to $1,167.49, the lowest since July 2010 and looked vulnerable to further falls to $1,100/oz.
Silver slid as much as 3% to $16.00 an ounce, the lowest since February 2010. Platinum fell 0.9% to $1,239.75 an ounce. Interestingly, palladium bucked the trend and rose 0.5% to $790 an ounce, after a six days of gains. Gold fell below $1,200 an ounce as equities and bonds surged - even bonds from Italy to Portugal climbed.
Gold is heading for a decline of 4.4% this week, the most since September 2013. The metal is also set for the first consecutive monthly loss in 2014. If the mooted end of QE in the U.S. is bearish for gold and silver, then it is also equally bearish if not more so for overvalued stock and bond markets. Yet, those markets saw far less volatile trading and many stock markets are back at multi month highs or indeed all time record highs. The sharp move lower today took place in illiquid Asian markets, soon after the BOJ announcement of the extraordinary new money printing experiment in Japan. This news in itself should have seen gold bounce higher as it is very gold bullish. Instead, gold plummeted lower. The move lower this week also took place against a backdrop of very high global coin and bar demand in recent weeks which would ordinarily have led to higher prices. It also comes at a time of heightened geopolitical and economic concerns and the emergence of the Ebola virus. Not to mention, the bullish "Save Our Swiss Gold" initiative which will continue for the next four weeks. As we wrote yesterday, the sudden sharp selling of precious metals this week despite robust demand could be another example of manipulation. Central banks want equities and bonds higher and precious metals lower. The counter intuitive trading action has hallmarks of continuing manipulation of the gold and silver futures market. Prudent money will continue to dollar cost average into coins and bars on price weakness. Get Breaking News and Updates on the Gold Market Here | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Henry Bonner: What Greenspan's latest talk means for gold Posted: 31 Oct 2014 01:51 PM PDT 4:40p ET Friday, October 31, 2014 Dear Friend of GATA and Gold: Sprott Asset Management's Henry Bonner writes today that Federal Reserve Chairman Alan Greenspan made some interesting admissions at the New Orleans Investment Conference last Saturday, including that the Fed functions mainly to keep the U.S. government supplied with money and that, contrary to the mythmaking of central banking's apologists, the Fed is not politically independent at all. Bonner's commentary is headlined "What Greenspan's Latest Talk Means for Gold" and it's posted at the Sprott Global Internet site here: http://sprottglobal.com/thoughts/articles/what-greenspan-latest-talk-mea... 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: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Maguire describes today's attack on gold as sudden intervention by BIS Posted: 31 Oct 2014 01:38 PM PDT 4:35p ET Friday, October 31, 2014 Dear Friend of GATA and Gold: Today's attack on gold, London trader Andrew Maguire tells King World News, began at 7 a.m. London time with a single seller dumping as much as 50 tonnes of paper gold in several minutes to run the stops in the futures market, almost certainly a central bank intervention, likely by the Bank for International Settlements. Maguire's interview is excerpted at the KWN blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/10/31_M... 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: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold and Silver - Good Morning Fiat Nam Posted: 31 Oct 2014 01:37 PM PDT It is a mistake to underestimate the depths of self-serving policy error to which Wall Street and the ruling elite will sink in order to kick the can down the road and maintain their positions of privilege. Every time I think they can go no further, I am surprised. Shame on me. The Fed has never seen a bubble it didn't like. And if the trickle down isn't working, keep doing the same thing, but even more. Tempting fate doesn't begin to cover it. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold Daily and Silver Weekly Charts - Good Morning Fiat Nam Posted: 31 Oct 2014 01:25 PM PDT  | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| US Now Importing the World’s Deflation Posted: 31 Oct 2014 01:16 PM PDT With US QE about to end, the rest of the world faced the prospect of another “taper tantrum” financial crisis, one that this time around could suck the US into expanding Japanese and European deflationary vortices. In which case it’s game over for the current market manipulation freak show. So it should come as no surprise that the end of QE was countered with a series of offsetting treats for the global financial markets: • The US Fed promised to keep interest rates low for a really long time. • The European Central Bank announced that in November it would start buying asset backed bonds, in effect beginning an open-ended, potentially huge debt monetization program of its own. • Japan’s version of Social Security is massively increasing its equity purchases:
And last but definitely not least:
The equity markets loved all this, of course. Japan’s Nikkei index rose an amazing 4.83% on Friday. The S&P 500 is up about 3% on the week and most emerging markets are soaring. From the point of view of bureaucrats attempting manipulating formerly-free markets, this is a ringing success. Unfortunately, like most attempts to mess with the laws of nature, it contains the seeds of its own demise. First and foremost, the end of QE in the US coupled with a ramp-up of bond buying in Europe and Japan has had the logical effect on the dollar: A surging currency is functionally the same thing as rising interest rates in that it tends to cut corporate profits while making debt harder to manage for pretty much everyone. So it’s good for savers (who see the value of their savings rise) and bad for borrowers, both individual and governmental. And that — more onerous debts and plunging corporate profits — is what the US is looking at in 2015. This is coming at a really bad time for some crucial parts of the economy. Housing, for instance, is looking like the end rather than the beginning of a recovery, with mortgage purchase applications at 19-year lows (chart courtesy of Zero Hedge): The upshot: As good as things feel right now in the stock and bond markets, they’ll feel that bad or worse when it dawns on the leveraged speculating community that the rest of the world is exporting their deflation to America. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Pretium - Canadian Golden Elephant Posted: 31 Oct 2014 12:59 PM PDT Elephants are the world’s largest land animals. And though there aren’t many, they can still be found scattered across the planet. In the mining industry, super-large-sized deposits are often referred to as elephants. Like the animal, these deposits aren’t all that common. But also like the animal, they can still be found. Elephant country is somewhere miners tend to gravitate towards in their hunt for meaningful discoveries, as elephants can usually be found in herds. And one of the world’s most prolific gold herds is found in British Columbia’s Golden Triangle. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Koos Jansen: The great Chinese silver market debate Posted: 31 Oct 2014 12:20 PM PDT 3:20p ET Friday October 31, 2014 Dear Friend of GATA and Gold: China gold (and silver) researcher and GATA consultant Koos Jansen explains today why silver is not really trading in Shanghai at a premium to London, contrary to what is widely reported. Jansen's analysis is headlined "The Great Chinese Silver Market Debate" and it's posted at Bullion Star here: https://www.bullionstar.com/blog/koos-jansen/the-great-chinese-silver-ma... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Sinclair's Next Market Seminar Is Nov. 15 in San Francisco Mining entrepreneur and gold advocate Jim Sinclair will hold his next market seminar from 10 a.m. to 3 p.m. on Saturday, November 15, at the Holiday Inn at San Francisco International Airport in South San Francisco, California. Admission will be $100. For more information and to register, please visit: http://www.jsmineset.com/2014/10/10/san-francisco-qa-session-announced/ 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: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accumulation Follows Capitulation As Day Follows Night in Junior Mining Sector Posted: 31 Oct 2014 12:19 PM PDT For weeks, I have been expecting a major long term bottom in the precious metals after major capitulation. The liquidation may have occurred this week as investors sold out of panic and fear rather than take a look at the long term fundamentals. Across the board many of the weak hands had to sell quality assets for pennies on the dollar. Smart resource investors expecting capitulation have had some of their bids filled at ridiculously low prices. Fortunes are made by the brave who pick up real assets when the majority is not interested in them. I expect a major bounce at 2008 credit crisis lows and the 2003 breakout on the HUI Gold Bugs Index at $150. For weeks, I told my premium subscribers I was buying Pershing Gold (PGLC) at major lows at or below $.30. I believed that the company was due to break its downtrend and 50 day moving average. Now a few weeks later it appears Pershing has broken above the 50 day moving average and has broken out on a relative strength chart versus the Junior Gold Miner ETF (GDXJ). See my recent article discussing Pershing by clicking here… There has been a lot of accumulation both from insiders and smart contrarian investors as Pershing makes major advancements with regard to drilling, financing and hopefully listing on a major exchange by the end of the year. Look at the chart below from Yahoo Finance showing the major buying by Barry Honig.
Pershing Gold’s Relief Canyon asset may be in the front of the M&A queue and according to Steve Alfers the recent permitting news is a "landmark event". He said, “For the first time in nearly 25 years, the Relief Canyon Mine has all of the permits needed to begin mining the deposit and to operate the heap leach gold processing facilities…Now that we have all of the permits in place, we are in an ideal position to optimize our mine plan and fine-tune our processing facilities.” The junior gold miners are all being hit hard this week as investors fear the end of Quantitative Easing will bring about deflation. This irrational panic may mark a turning point. We may see a bounce off these levels after the panic gaps down. I feel we may be near a major turning point in the entire resource sector and I wanted to get into Pershing Gold (PGLC) a unique story in Nevada that has all the permits and a fully equipped heap leach processing facility. Pershing just received all the permits it needs to begin production at Relief Canyon. In addition, they have over $20 million of cash and are actively drilling hitting impressive results. Steve Alfers, CEO of Pershing Gold (PGLC) is well known as the former head of US operations for Franco Nevada the famous gold royalty company and the former CEO of New West who sold Long Canyon to Fronteer before being sold to Newmont for billions. Alfers has a great track record and is an expert in mining law and deal making. He has big plans for Pershing and has the track record to turn this $100 million company to possibly a $1 billion company. Steve has investors with deep pockets with lots of cash behind him and could possibly acquire cash starved miners for pennies on the dollar. In addition to having one of the best CEO's in the junior mining business, the company has very strong shareholder support from billionaire investor Dr. Phil Frost who sold IVAX for $7.6 billion in 2005 and is in the top 200 of the richest people in America. In addition, successful businessman Barry Honig sits on the board and is actively buying shares. Barry has bought millions worth of stock in the market since September 1st according to insider filings which can be found by clicking here. When you see some of the smartest value investors buying stock in a junior gold miner, it makes one question the record short on the sector. We may soon see a major short squeeze. Pershing Gold (PGLC) just announced a financing with some of the most active and smartest US investors and now sits with over $20 million in cash, a fully permitted heap leach facility and an expanding gold resource base in Nevada. One of the insiders has been buying aggressively in the open markets which is a positive sign for a turn in the company. I expect Pershing to be uplisted to a major exchange such as the NYSE or Nasdaq in the near term. With the former Franco Nevada, Chief of US operations as its current CEO the weak junior mining environment could play into the advantage of cash rich and deep pocketed Pershing to pick up quality mining assets at a bargain to complement near term production at Relief Canyon. I am excited to see this company break out of its recent downtrend, get uplisted and become recognized by the institutions possibly by the end of 2014. For more info on Pershing Gold (PGLC) contact: Jack Perkins Disclosure: I am a shareholder and the company is a website sponsor. Conflicts on interest apply. Always do your own due diligence. ___________________________________________________________________________ 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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| Posted: 31 Oct 2014 11:29 AM PDT Yes, some people are still forecasting $2000 gold by year's end... BOB and BARB Moriarty launched 321gold.com over 10 years ago, adding 321energy.com the better to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy as well as precious metals. Previously a US Marine fighter pilot, and holding 14 international aviation records, Bob Moriarty here tells The Gold Report why he's 100% certain that a market crash is looming... The Gold Report: Bob, in our last interview in February, we had currency devaluation in Argentina and Venezuela, interest rate hikes in Turkey and South America, and a cotton and federal bond-buying program. Just eight months later in October, we've got Ebola, ISIS and Russia annexing Crimea plus a rising US Dollar Index. We've also got pullbacks in gold, silver and pretty much all commodity prices. With all this news, what, in your view, should people really be focusing in on? Bob Moriarty: There is a flock of black swans overhead, any one of which could be catastrophic. The fundamental problems with the world's debt crisis and banking crisis have never been solved. The fundamental issues with the Euro have never been solved. The world is a lot closer to the edge of the cliff today than it was back in February. About ISIS, I think I was six years old when my parents pointed out a hornet's nest. They said, "Whatever you do, don't swat the hornets' nest." Of course, being six years old, I took stick and went up there and swatted the hornets' nest, which really pissed off the hornets. I learned my lesson. We swatted the hornets' nest when we invaded Iraq and Afghanistan. What we did is we empowered every religious fruitcake in the world. We said, "Okay, here's your gun, go shoot somebody. We'll plant flowers." We are reaping what we sowed. What we need to do is leave them to their own devices and let them figure out what they want to do. It's our presence in the Middle East that is creating a problem. TGR: Will stepping back allow the Middle East to heal itself, or will there be continued civil wars that threaten the world? Bob Moriarty: We are the catalyst in the Middle East. We have been the catalyst under the theory that we are the world's policemen and that we're better and smarter than everybody else and rich enough to afford to fight war after war. None of those beliefs are true. The idea that America is exceptional is hogwash. We're not smarter. We're not better. We're certainly not effective policemen. The Congress of the United States has been bought and paid for by special interest groups: part of it is Wall Street, part of it is the banks and part of it is Israel. We're just trying to do things that we can't do. What the US needs to do is mind its own business. TGR: You've commented recently that you're expecting a stock market crash soon. Can you elaborate on that? Bob Moriarty: We have two giant elephants in the room fighting it out. One is the inflation elephant and one is the deflation elephant. The deflation elephant is the $710 trillion worth of derivatives, which is $100,000 per man, woman and child on earth. Those derivatives have to blow up and crash. That's going to be deflationary. At the same time, we've got the world awash in debt, more debt than we've ever had in history, and it's been inflationary in terms of energy and the stock market. When the stock and bond markets implode, as we know they're going to, we're going to see some really scary things. We'll go to quantitative easing infinity, and we're going to see the price of gold go through the roof. It's going to go to the moon when everything else crashes. TGR: How are you looking at the crash – short term, before the end of this year? How imminent are we? Bob Moriarty: Soon. But I'm in the market. Not in the general market, but I'm in resources. There's a triangle of value created by a guy named John Exter: Exter's Pyramid. It's an inverted pyramid. At the top there are derivatives, and then there are miscellaneous assets going down: securitized debt and stocks, broad currency and physical notes. At the very bottom – the single most valuable asset at the end of time – is gold. When the derivatives, bonds, currencies and stock markets crash, the last man standing is going to be gold. TGR: So the last man standing is the actual commodity, not the stocks? Bob Moriarty: Not necessarily. The stocks represent fractional ownership of a real commodity. There are some really wonderful companies out there with wonderful assets that are selling for peanuts. TGR: In one of your recent articles, "Black Swans and Brown Snakes", you were tracking the US Dollar Index as it climbed 12 weeks in a row, and you discussed the influence of the Yen, the Euro, the British Pound. Can you explain the US Dollar Index and the impact it has on silver and gold? Bob Moriarty: First of all, when people talk about the US Dollar Index, they think it has something to do with the Dollar and it does not. It is made up of the Euro, the Yen, the Mexican Peso, the British Pound and some other currencies. When the Euro goes down, the Dollar Index goes up. When the Yen goes down, the Dollar Index goes up. The Dollar, as measured by the Dollar Index, got way too expensive. It was up 12 weeks in a row. On Oct. 3, it was up 1.33% in one day, and that's a blow-off top. It's very obvious in hindsight. I took a look at the charts for silver and gold – if you took a mirror to the Dollar Index, you saw the charts for silver and gold inversely. When people talk about gold going down and silver going down, that's not true. The Euro went down. The Yen went down. The Pound went down and the value of gold and silver didn't change. It only changed in reference to the US Dollar. In every currency except the Dollar, gold and silver haven't changed in value at all since July. The US Dollar Index got irrationally exuberant, and it's due for a crash. When it crashes, it's going to take the stock market with it and perhaps the bond market. If you see QE increase, head for your bunker. TGR: Should I conclude that gold and silver will escalate? Bob Moriarty: Yes. There was an enormous flow of money from China, Japan, England, Europe in general into the stock and bond markets. What happened from July was the equivalent of the water flowing out before a tsunami hits. It's not the water coming in that signals a tsunami, it's the water going out. Nobody paid attention because everybody was looking at it in terms of silver or gold or platinum or oil, and they were not looking at the big picture. You've got to look at the big picture. A financial crash is coming. I'm not going to beat around the bush. I'm not saying there's a 99% chance. There's a 100% chance. TGR: Why does it have to crash? Why can't it just correct? Bob Moriarty: Because the world's financial system is in such disequilibrium that it can't gradually go down. It has to crash. The term for it in physics is called entropy. When you spin a top, at first it is very smooth and regular. As it slows down, it becomes more and more unstable and eventually it simply crashes. The financial system is doing the same thing. It's becoming more and more unstable every day. TGR: You spoke at the Cambridge House International 2014 Silver Summit Oct. 23-24. Bo Polny also spoke. He predicts that gold will be the greatest trade in history. He's calling for $2000 per ounce gold before the end of this year. We're moving into the third seven-year cycle of a 21-year bull cycle. Do you agree with him? Bob Moriarty: I've seen several interviews with Bo. The only problem with his cycles theory is you can't logically or factually see his argument. Now if you look at my comments about silver, gold and the stock market, factually we know the US Dollar Index went up 12 weeks in a row. That's not an opinion; that's a fact. I'm using both facts and logic to make a point. When a person walks in and says, okay, my tea leaves say that gold is going to be $2000 by the end of the year, you are forced to either believe or disbelieve him based on voodoo. I don't predict price; I don't know anybody who can. If Bo actually can, he's going to be very popular and very rich. TGR: Many people have predicted a significant crash for a number of years. How do you even begin to time this thing? A lot of people who have been speculating on this have lost money. Bob Moriarty: That's a really good point. People have been betting against the Yen for years. That's been one of the most expensive things you can bet against. Likewise, people have been betting on gold and silver and they've lost a lot of money. I haven't made the money that I wish I'd made over the last three years, but I've taken a fairly conservative approach and I don't think I'm in bad shape. TGR: Describe your conservative approach. Bob Moriarty: The way to make money in any market is to buy when things are cheap and sell when they're dear. It's as simple as that. Markets go up and markets go down. There is no magic to anything. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Maguire: This Triggered Today’s Massive Selloff In Gold & Silver Posted: 31 Oct 2014 11:29 AM PDT  Today London metals trader Andrew Maguire spoke with King World News about exactly what triggered today's stunning and massive selloff in gold and silver. Below is what Maguire had to say in Part II of an extraordinary series of interviews being released today on KWN.This posting includes an audio/video/photo media file: Download Now | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| One QE ends and another begins and still gold goes down, Sprott marvels Posted: 31 Oct 2014 11:15 AM PDT 2:11p ET Friday, October 31, 2014 Dear Friend of GATA and Gold: One "quantitative easing" program ends and another one begins and still the monetary metals go down, Sprott Asset Management's Eric Sprott remarks in wonder to King World News today. He worries that the world economy is getting so weak that governments may close all markets before long. An excerpt from the interview is posted at the KWN blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/10/31_B... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Silver mining stock report comes with 1-ounce silver round Future Money Trends is offering a special 18-page silver mining stock report about how to profit with the monetary and industrial metal in 2014, and it comes with a free 1-ounce silver round. Proceeds from the report's sales are shared with the Gold Anti-Trust Action Committee to support its efforts to expose manipulation in the monetary metals markets. To learn about this report, please visit: 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: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 31 Oct 2014 10:45 AM PDT But change your goggles and hey! Commodities in AUD not too bad...! BORING as it sounds, I want to talk a bit about the end of US QE today, writes Greg Canavan in The Daily Reckoning Australia. Because it's very important to how markets are going to behave over the next few months. As you probably know, yesterday the US Federal Reserve voted to end its policy of quantitative easing. But it will still be reinvesting the interest payments from its $4 trillion plus portfolio and rolling over any maturing treasury securities, so it's balance sheet will continue to grow, albeit much more slowly. On the surface, US markets didn't seem too fussed about the end of an era. Shares sold off around the time of the Fed's statement and then rallied towards the close. Probably a case of "algo's going wild" as automated high frequency traders tried to make sense of the Fed's statement. And the Fed did its usual job of promising to hold rates as low as they possibly could, which markets seemed happy enough with. But the real action took place under the surface. That is, the US Dollar spiked higher again. This is an important point because when the US Dollar rallies, it usually signifies tightening global liquidity. Think of it as liquidity returning to the source (US capital markets) and drying up...or disappearing. That's certainly what has been happening these past few months. Since bottoming in May, the US Dollar index (which measures the greenback's performance against a basket of currencies) has increased by nearly 9%. That might not sound like a huge spike, but in the world of currency movements, it is. Imagine if you're an exporter and your product just became 9% more expensive...chances are it will lead to a drop in sales as customers look for a cheaper substitute. This is the problem with the end of QE. It leads to liquidity evaporation as 'punt money' returns home...which leads to a strengthening US Dollar...which hurts sales of US multinationals. It's not going to happen right away though. Most companies have hedging strategies in place that protect them from sharp moves in the FX markets. But if Dollar strength persists...and the chart above says that it will, then you'll see the strong Dollar hitting companies' revenue line in the coming quarterly reports. Not only that, but the evaporation of liquidity in general could lead to another bout of selling across global markets. QE is all about providing confidence. Liquidity is synonymous with confidence. Take it away and you'll see the mood of the market change. Getting back to the Dollar strength...it's a headache for Australia too. It's smashing the iron ore price, and the Aussie Dollar isn't falling fast enough to keep up. In terms of the other commodities though, things aren't quite so bad. All you seem to hear lately is negative news about commodities. That's because the world prices commodities in US Dollars, and as you've seen, the US Dollar is a picture of strength. But if you look at commodity prices in terms of Aussie Dollars, things look a little better. The chart below shows the CRB commodity index, denominated in Australian Dollars. It's a weekly chart over the past five years. And y'know what...it doesn't look that bad! Since bottoming in 2012, it's made considerable progress in heading back to the 2011 highs. But you'll want to see it start to bottom around these levels. If it doesn't, prices could head much lower.  The thing to note about this chart is that it doesn't include the bulk commodities – iron ore and coal. These commodities tend to dominate the headlines in Australia. Things like nickel, tin, copper and oil don't get much of a look in. Which reminds me, in case you missed it, Diggers and Drillers analyst Jason Stevenson recently released a report on some small Aussie oil 'wildcatters'. With the oil price low, now could be a good time to sniff around the sector. You could say that about commodities across the board. In the space of a few years, they've gone from hero to zero...or the penthouse to the... That usually means there could be some good value around. One thing you need to look for in the current environment is a decent demand/supply dynamic. Iron ore in particular is heading towards massive oversupply next year. I reckon that makes it a poor investment choice for the next few years. You're better off to wait until the China slowdown and supply surge knocks out the juniors and all the marginal producers....leaving the market to BHP and Rio. You'll then probably be able to pick these mining giants up at much lower levels. Once you find a commodity with good supply/demand fundamentals, you need to make sure the producer is low cost. That protects it against further price falls...or a rise in the Australian Dollar. It also protects it against foreign competition. One of the issues with the Aussie resources sector in recent years is costs. Other countries have much cheaper capital and labour costs and can therefore get stuff out of the ground cheaper than us. That brings me to a final issue: Australia doesn't really invest in its own resource sector. Via superannuation, we have a huge pool of capital. But this mostly goes into the banks or the major miners. Superannuation capital is not high risk capital. That means a lot of the capital that flows into the resource sector is foreign. And when global financial conditions change...like the end of QE and the strengthening of the US Dollar...that capital departs. This will create problems and opportunities for the sector. But given the bearishness towards commodities in general, it's probably time to start getting interested again. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| How YOU Can Help Pass the Swiss Gold Referendum Posted: 31 Oct 2014 10:38 AM PDT This post How YOU Can Help Pass the Swiss Gold Referendum appeared first on Daily Reckoning. [Ed. Note: Over the last few days, we've been featuring a series of essays by Grant Williams on the Swiss Gold Initiative. (In case you haven't yet, you can read the first two parts here: Part I and Part II.) Those who've been reading our email edition, first heard about it back in Sept. when Dr. Ron Paul graced our pages with his assessment. Then again when our resident currency maven Jim Rickards weighed in on the issue -- describing it as one of the "snowflakes" that could lead to a global financial collapse. Today, Mr. Willaims' explains just how likely it is the Swiss Gold Referendum will pass, and how you can influence the decision for yourself. Read on...] Until now, the whole idea of the Swiss Gold Referendum has been written off as inconsequential and largely ignored by all but the most buggy of gold bugs. It was written off when Luzi Stamm announced it. It was written off when they needed to get 100,000 signatures; and, amazingly, it was ignored even once they HAD reached the magic number; but recently a number of things have happened which are making some serious waves and causing considerable unease amongst the Swiss banking establishment. While in San Antonio recently, I was fortunate enough to chat with a displaced fellow Brit who came to meet me at the Casey Summit to talk about the Swiss Gold Initiative, and what he had to say fascinated me. The gentleman explained a few of the nuances surrounding the framework within which the vote on the Gold Initiative will be conducted, and as I listened I realised that this little vote could potentially become a very big vote indeed. Firstly, he noted the fact that there isn't any "no" campaign running against the initiative. Not one that actively campaigns, at least. There will be no billboards, posters, or leaflets distributed making the case for a vote against the SGI. Thus, it's basically up to the organizers of the initiative to get the word out and educate the Swiss public about the importance of what they're trying to do in a vacuum. That, of course, requires money. During these campaigns, there is no TV or radio advertising allowed, only an old-fashioned leaflet/poster/billboard campaign (how very Swiss), which is an expensive operation to have to finance. However, a curious quirk of Swiss politics allows anybody (and I mean ANYBODY) to make a donation to campaigns such as these from anywhere in the world — with 100% anonymity. As our conversation continued, I learned that the initiative plans to blanket the country with billboards, posters, and leaflets and to conduct a comprehensive social media campaign to engage the vital 18-44 demographic — a strategy completely new to the somewhat antiquated world of Swiss politics. All this felt like it was going to be rather expensive for such a small campaign, but with the donation system certainly helping their chances, Stamm & friends embarked upon their fundraising venture; and, as I mentioned previously, their first move was a masterstroke. Over the past several years, I have been extremely fortunate, through regular encounters around the world, to have found myself in a position to call Egon von Greyerz my friend. Egon is a wonderful man with a keen intellect, a great sense of humour, and a code of ethics which is utterly above reproach. He is also now the "face" of the Swiss Gold Initiative to the gold industry. I recently chatted with Egon about the progress being made, and what he had to say was fascinating:
Interesting indeed. The poll that Egon refers to is the next of those things that are making waves. The official press launch of the SGI campaign was held this past week, with Luzi and his committee and Egon speaking to the Swiss media; but AHEAD of that launch, a poll was conducted in 20 Minutes, a popular German-language free daily newspaper published both in print and online. The question asked was simple: "How will you vote in the upcoming Save Our Swiss Gold referendum?" The results were a surprise to just about everybody — including Luzi and Egon. A total of 13,397 people were polled from all across Switzerland on October 15, and the poll clearly demonstrated that already — without any campaigning — there is a solid block of voters inclined to vote FOR the initiative: With the establishment being unable to actively campaign AGAINST the Initiative, all has been quiet for many months (which is why you probably haven't heard anything about the SGI); but with the dawning awareness that this little campaign might actually grow some legs, a few members of that establishment have been getting a little antsy. Firstly, last year when the proposal was tabled in parliament, we had this reaction:
It's laughable, actually. No word from the finance minister on the huge potential gains which were foregone when the SNB sold their gold at the lows (gains which, at today's prices, would have been in the region of CHF 27.5 bn). No. We won't mention those. Nor will we even bother to go anywhere near Jordan's fears that the SNB might be "forced" to (GASP!) "turn to money creation to finance its expenses." No. We'll leave those well alone and instead visit a "dossier" opened by the SNB on its website a couple of weeks ago as the realization dawned upon them that the SGI won't just "go away" if they don't talk about it:
Sometimes I think these people are completely delusional. So, let me get this straight: gold is a relic which restricts your ability to do such vital things as… oh, I dunno, promise to print unlimited amounts of your currency in order to peg it to another, failing currency and thereby debase it by 9% in 15 minutes? Or it might mean the market doesn't have complete faith that you might be completely relied upon to do really smart things like that? Disaster! Somebody. Please? Make it stop. The Swiss establishment has been reliant upon the public's ignorance in these matters, but now they are up against a formidable opponent in Egon von Greyerz. Not only that, but they can clearly see that, as elsewhere around the world, the public is fast becoming disenchanted with the status quo; and that is potentially very dangerous for these people. What is important to understand here is that if the initiative passes it will be part of the Swiss constitution IMMEDIATELY — not in two years, as many blogs and websites are suggesting. This means that the government and parliament cannot touch it. Only another referendum can change it. This is proper democracy for you. The closer we get to the vote on November 30, the bigger this story is going to become, and the bigger it becomes, the higher the chance that the yes vote wins. Should that happen, it will undoubtedly set off alarm bells throughout the gold market, as yet more physical gold will need to be repatriated and another sizeable, price-insensitive buyer will enter the marketplace. Curiously, as awareness of this initiative has risen in the last month or so, two strange things have happened in the gold markets, one in the murky world of central bank gold operations, the other in the equally murky world of China's Shanghai Gold Exchange. Firstly, the Russian central bank (which, unlike its Western counterparts, happily publishes its dealings in the gold market for the entire world to see) made its biggest monthly purchase in 15 years in September when they purchased 1.2 million ounces:
While in China, withdrawals from the Shanghai Gold Exchange suddenly spiked to 68.4 tonnes (the third-highest level on record): Do either of these moves have anything to do with pre-positioning ahead of the Swiss referendum outcome? I have absolutely no idea. What I DO know, though, is this: Most people have written the SGI off as a sideshow of little consequence. Most people assume that it won't get passed. Most people assume that, if it IS passed, it won't make any real waves. I think most people are wrong. I think there is a VERY good chance the motion will get passed; and I think that, when it does, it will spark calls for similar actions in neighbouring countries such as Austria, for example, or maybe the Netherlands. I also think that the physical gold market is far too tight to be able to handle any sudden widespread demand for large-scale repatriations of gold. This story is going to be getting more attention in the coming weeks. Already, Rick Santelli has spoken about it on CNBC, and so has Eric King in a tremendous interview, and this is only the beginning. More polls will follow, as will increasingly desperate rhetoric from the SNB. Amidst it all, calm and confident will be my friend Egon and the tenacious Herr Stamm. Don't bet against them. The official website for the Swiss Gold Initiative is here. And if you'd like to make a completely anonymous donation in any amount to help the initiative fund their campaign to restore sound money at the heart of Europe, then click HERE. At the top of the page, you'll see a button marked "Donate." (I've done it and it's easy — oops, there goes my anonymity.) Oftentimes, it's movements like the Swiss Gold Initiative that cause ripples which change things for the better, and I have a feeling that the time is ripe for an unexpected outcome. Either way, I think you'll be seeing a lot more of this little piggy in the days and weeks to come. Regards, Grant Williams Ed. Note: When the Swiss Gold Referendum comes to a vote on Nov. 30, gold investors (and central banks) around the world will be watching with rapt attention. We’ll have to wait to see what the good people of Switzerland decide, but if you want to stay up-to-date with this and the other goings-on in the market, your best bet is to sign up for the FREE Daily Reckoning email edition. Once inside, you’ll get regular updates on exactly how this story is playing out and actionable advice on how to profit no matter what happens. Click here now to sign up for The Daily Reckoning, completely free of charge. Click here to continue reading this article from Things That Make You Go Hmmm… – a free newsletter by Grant Williams, a highly respected financial expert and current portfolio and strategy advisor at Vulpes Investment Management in Singapore. The post How YOU Can Help Pass the Swiss Gold Referendum appeared first on Daily Reckoning.     | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Here's what the World Gold Council is doing today amid the war against gold Posted: 31 Oct 2014 09:31 AM PDT 12:26p ET Friday, October 31, 2014 Dear Friend of GATA and Gold: Our friend and consultant R.M. points out what the World Gold Council is doing today as central banks intensify their war against gold: https://twitter.com/GOLDCOUNCIL/status/528214829841264640/photo/1 How dumb do gold mining companies have to be to belong to this organization? CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Anglo Far-East is a global market leader and innovator that for more than two decades has provided private purchase, vaulting, security logistics, transport, and liquidation of allocated gold and silver bullion outside of the banking system. AFE clients include individuals, family offices, and institutions like banks and regulated funds. Anglo Far-East: Think Outside the Bank Here's what one of our generationally wealthy clients has to say about AFE: http://www.afeallocatedcustody.com/research/teleconferences/download-inf... To get started, please visit: https://secure.anglofareast.com/ Anglo Far-East: Think Outside the Bank 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: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Billionaire Sprott’s Terrifying Warning As Gold & Silver Smashed Posted: 31 Oct 2014 09:24 AM PDT  As the gold and silver smash continues for a second day, billionaire Eric Sprott warned King World News that central planners are in the final death throes of trying to keep things together. Below is what Sprott, Chairman of Sprott Asset Management, had to say in Part I of a remarkable series of interviews that will be released today.This posting includes an audio/video/photo media file: Download Now | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 31 Oct 2014 08:38 AM PDT 11:40a ET Friday, October 31, 2014 Dear Friend of GATA and Gold: Another day, another attack on the monetary metals in the futures markets, another commentary by London metals trader Andrew Maguire at King World News that the price decline has prompted huge offtake of real metal -- http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/10/31_M... -- another commentary by the TF Metals Report's Turd Ferguson about strange movements of metal in the Comex warehouses -- http://www.tfmetalsreport.com/blog/6272/information-deemed-be-reliable -- speculation by Colorado securities lawyer Avery Goodman and others that the attack is another coordinated central bank operation, this time to discourage support for the referendum campaign that would require Switzerland to commit more of its foreign exchange reserves to gold -- http://seekingalpha.com/instablog/337451-avery-goodman/3393985-what-lies... -- and more anguished calls to your secretary/treasurer from people seeking investment advice, wondering whether there's any point in sticking around the monetary metals sector, calls that are silly not just because your secretary/treasurer is not an investment adviser but a mere scribe and archivist but also because ever since he appeared at the New Orleans Investment Conference last Saturday former Federal Reserve Chairman Alan Greenspan, supposedly a renowned authority, has been recommending gold: http://www.merkinvestments.com/insights/2014/2014-10-29.php http://www.washingtonpost.com/blogs/wonkblog/wp/2014/10/30/wonkbook-gree... For whatever it may be worth your secretary/treasurer knows only this: 1) That for the time being central banks and the governments they control remain in charge of the gold price and most prices through the rigging mechanisms of gold reserve leasing and swapping and the futures markets, where they are able to deploy infinite money in secret. 2) That as the world's economy continues to weaken, with wealth being transferred from the masses to the elites, central banks and the governments they control will resort to still more totalitarian methods to maintain their control. 3) That questions about these methods, such as those specified with supporting documents here -- http://www.gata.org/node/14606 -- should be directed to central banks and the governments they control as well as to financial news organizations, though of course financial news organizations, especially in the West, remain unlikely ever to commit actual journalism in regard to gold particularly and central bank interventions generally. 4) That the World Gold Council, nominally the representative of the gold mining industry and gold investors, will continue to publish erroneous and misleading data about gold's function in the international monetary system and obtuse and irrelevant reports like this one -- http://www.gold.org/news-and-events/press-releases/report-highlights-res... -- so that the council might seem busy while central banks wage uncontested war against the monetary metal. 5) That most gold and silver mining industry executives will continue to have no idea about the monetary nature of their product and the surreptitious mechanisms of its pricing and will remain silent and incurious even as the prices of their products sink well below the cost of production and the share prices of their companies fall to zero. 6) That, nevertheless, GATA will press on in pursuit of a constituency for free and transparent markets, limited and accountable government, and fair dealing among nations and peoples. 7) And that someday, some year, some decade, some century we shall know the truth and if it doesn't make us free it at least will give us a clue about becoming so. CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Direct Ownership and Storage of Precious Metals Goldbroker.com is a precious metals investment company that enables investors to own and store gold directly in their own name (no mutualized ownership) in Zurich and Singapore. Goldbroker's clients are not exposed to any counterparty risks. They own gold and silver in their own names (the ownership certificate cites the name of the investor and serial number of his bars) and they have storage accounts opened in their own name as well. So Goldbroker.com's storage partner knows the exact identity of each investor. Goldbroker.com doesn't store in the name of its clients; rather, Goldbroker's clients store personally. All investors have direct access to their gold and silver bars. Goldbroker.com was launched in 2011 so that investors would avoid any counterparty risk when investing in physical gold and silver. Goldbroker.com is listed among GATA's recommended monetary metals dealers. (http://www.gata.org/node/173) To invest or learn more, please visit: 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 End of the US Dollar Imperium -- Patrick Barron Posted: 31 Oct 2014 07:58 AM PDT Jeff Deist and Patrick Barron continue their discussion on monetary imperialism. They delve deeper into US dollar supremacy, and how it might end with a whimper instead of a bang; how the Bundesbank is a potential savior for the world monetary order, while the IMF is a paper tiger; how elites will... [[ 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 Prices in The Post-QE World Posted: 31 Oct 2014 07:44 AM PDT Lacking a distinctive catalyst, gold prices have languished in recent weeks after a failed turnaround attempt earlier this month. Gold's primary form of price propulsion is fear and uncertainty; as long as investors are worried what the future might hold, gold is treated as a financial safe haven and its price tends to appreciate due to increased demand. When investors aren't worried, however, gold is typically ignored and risk assets (viz. equities) become the preferred choice. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 31 Oct 2014 07:40 AM PDT Trading in precious metals was quiet until Wednesday morning, when prices began to soften. When the FOMC meeting released its policy statement at 2.00pm EST, gold and silver responded by falling heavily, with gold breaching the $1200 level yesterday (Thursday) and silver crashing through $17 to a low of $16.33. This morning (Friday) gold and silver fell further in overnight ahead of the London opening, with gold trading down to $1173 and silver at $16.00. It is clear that the bears, including the bullion banks with short books, mounted an attack on the $1180 level, where there were stops to take out. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gold Price Falls, Stocks Record Highs as Japan Goes ‘Weimar’ Posted: 31 Oct 2014 07:23 AM PDT Stocks globally surged, while gold fell sharply today despite renewed irrational exuberance on hopes that the Bank of Japan’s vastly increasing money printing will fill some of the gaps left by the apparent end of Federal Reserve bond buying. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| EUR/USD - Double Bottom Or New Lows? Posted: 31 Oct 2014 07:12 AM PDT Yesterday, the U.S. dollar strengthened against other major currency pairs after the Fed said it would end its monthly bond-buying program but keep rates near zero for "considerable time". As a result, EUR/USD declined below the medium-term resistance zone, which triggered a sharp decline to sligthly above the recent lows. Will they withstand the selling pressure and we'll see a double bottom in the coming days? | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Peter Boockvar - “Buy As Much Gold As You Can Now” Posted: 31 Oct 2014 06:56 AM PDT  Today King World News is highlighting a piece by one of the greats which discusses the incredible chaos we are seeing in the markets and urges people to "BUY AS MUCH GOLD AS YOU CAN NOW." Below is the powerful piece which all KWN readers around the world must read.This posting includes an audio/video/photo media file: Download Now | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| James Turk - Two Key Charts, Gold & The Destruction Of Money Posted: 31 Oct 2014 06:00 AM PDT Goldmoney | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Bank of Japan takes over for Fed in pumping markets up Posted: 31 Oct 2014 05:54 AM PDT Futures Rally after Bank of Japan Ramps up Stimulus By Rodrigo Campos U.S. stock index futures rallied on Friday alongside most markets globally after the Bank of Japan significantly ramped up its stimulus program just days after the U.S. Federal Reserve wound down its own package of economic incentives. If futures' gains hold after the open, the S&P 500 will test its record high set more than a month ago. The BOJ's board voted 5-4 to accelerate purchases of Japanese government bonds while tripling its purchases of exchange-traded funds and real-estate investment trusts. At the same time, Japan's $1.2 trillion Government Pension Investment Fund announced new allocations for its portfolio, including raising its holdings of domestic and foreign stock holdings to 25 percent each from 12 percent. A Nikkei newspaper report on this announcement on Thursday contributed to an afternoon rally in U.S. stocks. ... ... For the remainder of the report: http://www.reuters.com/article/2014/10/31/us-markets-stocks-idUSKBN0IK11... ADVERTISEMENT Own Allocated -- and Most Importantly -- Zurich, Switzerland, remains an extremely safe location for storing coins and bars of the monetary metals. If you do not own segregated physical coins and bars that you can visit, inspect, and take delivery of, you are vulnerable. International diversification remains vital to investors. GoldCore can accomplish this for you. Read GoldCore's "Essential Guide to Gold Storage In Switzerland" here: http://info.goldcore.com/essential-guide-to-storing-gold-in-switzerland Email the GoldCore team at info@goldcore.com or call our trading desk: UK: +44 (0)203 086 9200 -- U.S.: +1-302-635-1160 -- International: +353 (0)1 632 5010 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: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Alasdair Macleod: China's gold strategy Posted: 31 Oct 2014 05:45 AM PDT 8:45a ET Friday, October 31, 2014 Dear Friend of GATA and Gold: GoldMoney research director Alasdair Macleod today analyzes China's recent policy and history in regard to gold and estimates that the Chinese government's gold reserves may be far higher than widely assumed. Macleod's analysis is headlined "China's Gold Strategy" and it's posted at GoldMoney's Internet site here: http://www.goldmoney.com/research/analysis/china-s-gold-strategy?gmrefco... 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: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| More Downside Ahead for Gold and Silver Posted: 31 Oct 2014 04:31 AM PDT Last week we argued that the underperformance of the gold miners during Gold's rebound was a bad sign. Since then the miners have plunged to new lows while Gold appears to be at the doorstep of a major breakdown below $1180. It shouldn't be a surprise as it would simply be following the miners and Silver. The current bear market is getting very long in the tooth but it is not yet over. We see more losses ahead before a potential lifetime buying opportunity. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Posted: 31 Oct 2014 04:27 AM PDT China first delegated the management of gold policy to the Peoples Bank by regulations in 1983. This development was central to China's emergence as a free-market economy following the post-Mao reforms in 1979/82. At that time the west was doing its best to suppress gold to enhance confidence in paper currencies, releasing large quantities of bullion for others to buy. This is why the timing is important: it was an opportunity for China, a one-billion population country in the throes of rapid economic modernisation, to diversify growing trade surpluses from the dollar. |
First thing this morning, after the Bank of Japan decision, things got a bit roiled. But what I did see was a fully-timed algorithm kick off at exactly 7 AM U.K. time. There is only one seller that can come up with 50 tons of paper gold in a matter of 3 or 4 minutes and that is the Bank for International Settlements. We saw this come through and it attacked the entire (massive) bid stack (defending the previous low of $1,180) in a matter of seconds. Obviously there were visible stops. They (the Bank for International Settlements) knew exactly what they were attacking there. It was purely paper gold. We are talking about 50 tons, Eric. That's an awful big position for somebody to put on (as) a risk position in a single shot.
John Anderson, an American tourist from San Clemente, California, was driving down a poorly-maintained highway when he saw flashing lights in his rearview mirror. After a brief exchange with the local police officer, Anderson was shocked when the cop started searching his vehicle. Anderson had $25,180 in US dollar cash in the car, which by the way was not a crime according to the local laws. When the cop saw it, he told Anderson that we would take it and threatened him with arrest if he protested.
We've seen this before. It's interesting that we end QE3 and everybody thinks it's the end for gold, but the next day Japan ups their QE, and yet gold gets smashed again. I was reflecting this morning that it's almost like Nasdaq (in the year) 2000 — where everyone is in buying because theoretically the money printing is going to help stocks.
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