Gold World News Flash |
- Warning: Avoid This Corrupt, Third-World Country At All Costs
- Stunning Facts About China, Russia & End Of Gold Bear Market
- U.S. Mint Silver Eagle Coin Sales Jump to 21-Month High
- Iran, Russia to trade in national currencies
- When Money Dies: Germany and Paper Money After 1910
- HUI / Gold Ratio hits lowest level ever recorded (UPDATED with Gold Chart)
- "This Feels A Lot Like 1999" Beware "The QE Bubble"
- Gold and Silver Stocks October 2014: Which Ones Are Safer?
- Keiser Report: Naughty Banking Boys
- The WSJ’s Pathetic Sunnyside Journalism - Retracts Its Own GDP Narrative
- UNLIMITED QE Now Global! Japan Begins Record Stimulus Waiting for Fed QE4!
- Warning: Avoid This Corrupt, Third-World Country At All Costs
- Worried About Gold / Silver Smash & Repression - Read This
- Mike Kosares: The reinvention of Alan Greenspan
- Gold And Silver Monthly Charts: Elite Supernova Death Dance In Precious Metals?
- Gold Price Falls Below Support Although Breakdown Confirmation Needed
- Fundamentals will prevail eventually with stocks and metals, Sprott tells KWN
- Koos Jansen interviewed on German TV about Chinese gold demand
- Gold And Silver – Elite Supernova Death Dance In PMs?
- Gold and Silver - Good Morning Fiat Nam
- Pretium - Canadian Golden Elephant
| Warning: Avoid This Corrupt, Third-World Country At All Costs Posted: 01 Nov 2014 09:20 PM PDT from Sovereign Man blog, via ZeroHedge:
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. 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. Clearly we should all avoid going to such dangerously corrupt third world countries. |
| Stunning Facts About China, Russia & End Of Gold Bear Market Posted: 01 Nov 2014 09:02 PM PDT  Today a legend who was recently asked by the Chinese government to give a speech to government officials in China spoke with King World News about the end of the gold bear market as well as stunning facts about China and Russia. John Ing, who has been in the business for 43 years, also spoke about why available supply to the gold market is about to be substantially reduced.This posting includes an audio/video/photo media file: Download Now |
| U.S. Mint Silver Eagle Coin Sales Jump to 21-Month High Posted: 01 Nov 2014 09:00 PM PDT by Ed Steer, Casey Research:
Well, you don’t need me to tell you what happened in gold yesterday, as it’s pretty much self-evident from the Kitco chart posted below. After the HFT boyz hit the price at 7 a.m. GMT in London on their Friday morning, the price traded pretty flat until the Comex open—and then more short selling appeared, with gold hitting its low tick a minute or so after 9 a.m. in New York. The price retested that low shortly after 11 a.m. EDT—and then rallied until shortly before the Comex close—and then chopped sideways for the remainder of the Friday session. The CME Group recorded the high and low tick as $1,202.40 and $1,160.50 in the December contract, which is the new front month for gold. Gold finished the day at $1,172.90 spot, down $25.90 on the day—and well off its low. Net volume was over-the-moon at 275,000 contracts. |
| Iran, Russia to trade in national currencies Posted: 01 Nov 2014 08:44 PM PDT A boost in Tehran-Moscow ties; Iran and Russia will soon sign a monetary treaty to remove the US dollar from banking transactions and monetary exchanges. Under the treaty the national currencies of both countries will be accepted in bilateral trade whose value will be determined based on the... [[ This is a content summary only. Visit http://www.GoldSilverNewsBlog.com or http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  |
| When Money Dies: Germany and Paper Money After 1910 Posted: 01 Nov 2014 07:02 PM PDT Submitted by Marcia Christoff-Kurapovna via The Ludwig von Mises Institute, The story of the destruction of the German mark during the hyper-inflation of Weimar Germany from 1919 to its horrific peak in November 1923 is usually dismissed as a bizarre anomaly in the economic history of the twentieth century. But no episode better illustrates the dire consequences of unsound money or makes a more devastating, real-life case against fiat-currency: where there is no restraint, monetary death will follow.
The US Federal Reserve of 2014 is not the Reichsbank of 1914. Yet today's policy mindset is dangerously reminiscent of the attitudes that helped to excacerbate the economic downfall of inter-war Germany. These include: the unrestrained financing of budget deficits under war and post-war conditions; the unaccountable creation of the money supply by a central bank; the creation of undisciplined credit linked to this expansion of the money supply; the aggressive inflating of asset values; the discounting of short-term treasury bills and notes in practically unlimited amounts; rapid currency depreciation, and a ratio of federal debt to GDP over 100 percent. Prior to World War I, the German mark, the British shilling, the French franc, and the Italian lira were all valued around the same — about four each to the dollar. By the end of 1923, the rate for the mark was one trillion to a dollar — one million-millionth of its former self. In mid-1922, a loaf of bread cost 428 million marks, while the entire equity capitalization of Daimler Corporation bought the equivalent of 327 of their cars. In November 1923, that which before the war could have purchased, in theory, 500 billion eggs could, that infamous month, procure but one egg. Former Prime Minister Henry Lloyd George, writing in 1932, remarked that words like "catastrophe," "ruin," and "devastation" were not enough to describe the situation, given the common usage into which such words had fallen. Looting, vandalism, theft, the rise in prostitution, famine, disease, the consumption of dogs; people robbed of their clothes on the street — all were routine events of the "bourgeois" social quotidien. The constant threat of civil war loomed, as did neighboring Bolshevism. Bavaria had to declare martial law. The Rise of Paper Currency after 1910 The price inflation had begun slowly. In 1914 there was a minor increase in the wholesale price index. That index, with a base of one in 1913, had increased to 2.45 by the end of 1918. Beginning in 1919, the speed of the inflation increased, advancing to 12. 6 in January 1920; 14.4 in January 1921 and 36. 7 in January 1922. By the second half of 1922, that index stood at 101 in July; it was 74,787 in July 1923 and 750 billion on 15 November 1923. The 100 trillion note was then issued and the presses of the Reichsbank were printing money to the record tune of 74 million million million marks a week. Rather than stop this madness, the Reichsbank continued to print more money, claiming that it was keeping employment steady, and promising the population that relief was always just around the corner. An atmosphere of civil chaos reigned. The Versailles Treaty was not the main culprit: it only worsened a bubble-blowing monetary policy in place prior to the war. Before 1914, the credit policy of the Reichsbank dictated that not less than one-third of the currency issue had to be covered by gold. But once paper currency became legal tender in Germany in 1910, such currency became a reckless expedient. By the outbreak of war, most of the world had given up the gold standard and had gone over to paper money. The commodity was withdrawn from circulation and was largely piled up in the vaults of a few central banks, but mainly that of US: from August 1913 to August 1919 the US stock of monetary gold in the US increased by 65 percent. Back in Germany, massive bond issues were sold appealing to mass patriotism in order to pay for the war. Private fortunes were transferred into paper claims on the state as the Reichsbank suspended the redemption of notes into gold. Loan banks were established that printed money at will and banks gave out unconstrained credit to advance money for war-bond subscriptions. The most ominous measure for the future was that which allowed the Reichsbank to include three-month treasury bills in its currency coverage such that unlimited amounts could be rediscounted against banknotes. In contrast, Great Britain handled financing the war far more prudently: London met the cost of war by raising taxes aimed primarily at those industries and groups that best stood to profit from the war. In Germany, gold was depleted paying for war reparations and as a result of the French invasion of the Ruhr. Yet only gold provided occasional relief to citizens at large when a handful of industries were able to issue small gold marks to pay employees. Höchst Dye Works, for example, paid workers from the 400,000 Swiss francs it had stashed in Swiss bank reserves. Germany Turns to the Rentenmark At the breaking point, monetary policy was taken out of the hands of the Reichsbank via what was effectively a coup d'etat by Chancellor Gustav Stresemann. All loans to the government were cancelled. Monetary policy was decentralized. The state was rigorously separated from economics. A parallel banking structure was organized by a prominent non-governmental economist-maverick who came up with a new currency scheme first backed by rye-bread —the most coveted value at the time —and later gold, once that commodity could be procured again. Those "gold-backed" notes, the Rentenmarks, were guaranteed by mortgages on landed property and by bonds on German industry in the amount of 3 billion gold marks. In reality, there were practically no gold reserves left. Yet, the incalculable social and psychological effect upon the population in announcing a return to currency with gold parity on a one-to-one basis calmed social tensions and jump-started economic stabilization immediately. "The genius of the Rentenmark is that it released the Reichsbank from having to finance the government," writes Fergusson. Rigorous discipline of state expenditure followed, as well as the refusal of further credit to the government, and the eventual return of the mark to parity between gold and the dollar. For many years afterward, gold mark clauses in long-term obligations were characteristic of the German capital market. Today's conditions are not Weimar conditions. But there are unsettling parallels in terms of monetary policy and the inflation money and credit. Since President Nixon abandoned the gold exchange standard in 1971 up through 2003, the supply of money in the US increased by 1,100 percent. The Fed's balance sheet, ballooning from $500 billion in 2000 to $4.4. trillion at the end of 2013, has been the result of money printing.
These words were written in 1932 by the American economist Edward Kemmerer, one among the clearest arguments against fiat-currency ever written. ‘No gold, "No printing" history tells us: the most important monetary lesson that central banks, once upon a time up through the present day, refuse to learn. |
| HUI / Gold Ratio hits lowest level ever recorded (UPDATED with Gold Chart) Posted: 01 Nov 2014 07:00 PM PDT from Dan Norcini:
Much is made by the same culprits as usual about big sell orders on the Comex, takedown of this, takedown of that, the usual, blah, blah and more blah, as an attempt to buttress the notion that this fall in the price of gold has been orchestrated by the powers that be to discredit the metal. The problem with this theory in this environment is that the MINING SHARES have been LEADING the metal lower. Gold is merely following what the miners have been very effectively signaling now for some time since this ratio began declining. |
| "This Feels A Lot Like 1999" Beware "The QE Bubble" Posted: 01 Nov 2014 06:22 PM PDT It appears few remember the epic failure of Japan's first experiment with quantitative easing from 2001 to 2006 (that even the NY Fed can't find a silver lining to crow about) and yet, not only is QE heralded as a success (or not) but additional QE seems to be something to celebrate (even when it's shown to fail to achieve anything economically). How's QE working out for Japan?
As Michael Chadwick notes in this oddly bearish interview on CNBC, where has Japan gone in the last 14 years (since its QE started), "absolutely nowhere," and yet, he exclaims, "sadly, across the globe all central banks are following the same failed path." Chadwick reflects on the explosion of central bank balance sheets and asks, rhetorically, "do we really need QE every time the market gets nervous?"
Brief clip below: |
| Gold and Silver Stocks October 2014: Which Ones Are Safer? Posted: 01 Nov 2014 05:00 PM PDT from WallStForMainSt: |
| Keiser Report: Naughty Banking Boys Posted: 01 Nov 2014 03:20 PM PDT from RT: (E674) Max Keiser and Stacy Herbert discuss how, in the words of Laura Ingalls Wilder, once you begin being naughty, it is easier to go and on and on, and sooner or later something dreadful happens. And in a world of very naughty bankers, many dreadful things have happened. In the second half Max interviews Dan Collins of TheChinaMoneyReport.com about the emerging post-dollar order as evidenced in the newly launched Asian Infrastructure and Investment Bank and the Shanghai-Hong Kong Connect scheme. They also discuss how in China Jim Rickards went viral and how steel costs as much as cabbage. |
| The WSJ’s Pathetic Sunnyside Journalism - Retracts Its Own GDP Narrative Posted: 01 Nov 2014 03:15 PM PDT Submitted by Alhambra Partners' Jeffrey Snider via Contra Corner blog, Last week my good friend Fred Everett emailed me the Wall Street Journal’s take on GDP. They were, as you might expect, quite optimistic about what 3.5% implied toward future acceleration finally out of this seven-year depression:
The problem with that assessment is that it is simply untrue. GDP expanded with very little aid from American consumers and businesses, especially since PCE contribution to GDP was among the lowest since 2009 (and true capex wasn’t any better). As my recent analysis of GDP history shows, that is a reason to be very pessimistic about trends due to the simple fact that over time GDP converges with American consumers and businesses, who continue to be quite and “unexpectedly” dour despite all these hugely positive narratives. As it turns out, a few hours later, the Wall Street Journal seems to have become aware of all of this. The opening paragraph in the same article now reads:
While the last clause in that sentence maintains the sunshine optimism, it is hardly the same interpretation, is it? “Sustained growth” has never been “fueled” by government spending and there is nothing to indicate, short of a total collapse in demand domestically, that the trade balance will remain “narrower.” Actual and significant improvement in American consumers and businesses would indeed “fuel” sustained growth, but it has been a decade since anything like that has been experienced (and even then it was largely insufficient and artificial). Despite the headline number for GDP, that doesn’t erase this deficiency. Did they simply just run that paragraph assuming that 3.5% would necessarily mean what they said? Was it all just hope that no one would notice? This is, to me, beyond simply bias toward whatever orthodox narrative is convention – which right now means the FOMC’s idea of recovery. Content and pesky facts should matter more than the narrative, which becomes all-too-clear in the retraction; it completely changes the context, and thus meaning, but yet the dominant sentiment remains unaltered despite the illogic of the correction. In this case, as with so much commentary, the data can change but that does nothing to modify the narrative as it is “too important” to simply let go. |
| UNLIMITED QE Now Global! Japan Begins Record Stimulus Waiting for Fed QE4! Posted: 01 Nov 2014 02:38 PM PDT QE3 is over and the public is anticipating QE4. Until then, the stock markets need stimulus to prevent a MASSIVE COLLAPSE. Japan has decided to engage in record stimulus in order to combat their deflation they're experiencing. There is no talk of why the world is experiencing deflation in the... [[ This is a content summary only. Visit http://www.GoldSilverNewsBlog.com or http://www.newsbooze.com or http://www.figanews.com for full links, other content, and more! ]]  |
| Warning: Avoid This Corrupt, Third-World Country At All Costs Posted: 01 Nov 2014 02:02 PM PDT Submitted by Simon Black via Sovereign Man blog,
Clearly we should all avoid going to such dangerously corrupt third world countries. Except in this case, Anderson was in the United States of America. And he is far from being the only victim of this highway robbery known as Civil Asset Forfeiture. Since 9/11, police forces in the Land of the Free made over 62,000 seizures without charging anyone with any crime, stealing $2.5 billion in cash alone. The cost of taking legal action against the government is so high, that only about 17% of the victims actually challenged the seizures. And even then, only 41% of those that challenged have been able to get their money back. This means that the government has a better than 93% success rate in outright theft. This is worse than mafia—it’s blatant theft with impunity from the people that are sworn to protect and serve. It’s the kind of thing that is thought to only occur in heinously corrupt countries. Here’s the good news: many people are waking up to the reality that they’re not living in a free country. They are starting to understand what I call ‘the criminalization of existence.’ Every last detail of our lives is regulated—what we can/cannot put in our bodies, whether we can collect rainwater or unplug from the grid, how we are allowed to educate our own children, etc. Driving this point home, a Tennessee woman was actually thrown in jail earlier this month for ignoring a city citation to trim some overgrown bushes in her yard. This isn’t freedom. The irony is that, even though many people are starting to realize this, they’re looking to the very institution that has enslaved them to solve the problem.
Just today (this is 100% true), the US federal government published an eye-popping 490 pages of new rules, proposals, and regulatory notices. To give you a little taste, today’s regulations include:
There’s even a new rule upholding fines for unauthorized playing of digital recordings. You can’t make this stuff up—they are regulating nearly everything. It’s government that does this. They are the problem, not the solution. Looking to government to solve the problem that they themselves created is completely irrational. They are incapable of righting themselves. The solution – the power – is with the individual. All the tools and all the resources to distance yourself from this system already exist. On one hand, there’s always the possibility of leaving. The American Dream is still alive and well… it’s just no longer in the United States. Not to mention all the financial, business, investment, and lifestyle opportunities for the taking. But even if you stay, there are dozens of ways to take back your freedom. For example, why hold 100% of your savings and assets in that jurisdiction when they could easily confiscate everything? There are so many great, safe jurisdictions in the world to bank, to invest, to own property, and to store assets. And you can set all of this up without leaving town. The solutions are out there. It’s time to consider them before becoming a statistic. P.S. Here’s more proof that the official inflation numbers are completely phony… yet another market that has reached an all time high. |
| Worried About Gold / Silver Smash & Repression - Read This Posted: 01 Nov 2014 12:17 PM PDT  Today King World News is featuring a piece by a man whose recently released masterpiece has been praised around the world, and also recognized as some of the most unique work in the gold market. Below is the latest exclusive KWN piece by Ronald-Peter Stoferle of Incrementum AG out of Liechtenstein.This posting includes an audio/video/photo media file: Download Now |
| Mike Kosares: The reinvention of Alan Greenspan Posted: 01 Nov 2014 11:15 AM PDT 2:15p ET Saturday, November 1, 2014 Dear Friend of GATA and Gold: The gold-friendly and central banking-critical comments of former Federal Reserve Chairman Alan Greenspan over the last month -- from Foreign Affairs magazine to the New Orleans Investment Conference to the Council on Foreign Relations -- should be noted by investors, according to Mike Kosares, proprietor of Centennial Precious Metals in Denver. Kosares writes today: "This is an individual who actually sat at the controls of the most important central bank of the world. As such he saw first-hand how the monetary system operates –– the good, the bad, and the ugly. For him to graduate from that experience a proponent of gold reveals more about the efficacy of central banks than perhaps those institutions would like to be known." Kosares' commentary is headlined "The Reinvention of Alan Greenspan" and it's posted at Centennial's Internet site, USAGold.com, here: http://www.usagold.com/publications/Nov2014R&O.html 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: |
| Gold And Silver Monthly Charts: Elite Supernova Death Dance In Precious Metals? Posted: 01 Nov 2014 10:44 AM 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. Despite all the overt bullish demand for physical metals, gold and silver have been making new recent lows, reaching levels few imagined, even just several months ago. What has been missing is an explanation for why the PMs continue to decline, and we have been postulating that the Rothschild elites have been responsible for the perpetual downward manipulation in defiance of known fundamentals. History proves all fiat money systems fail, and the United States with its toxic fiat Federal Reserve Notes, in the multi-trillions are destined to join the same fate of failure. Is it any different this time? No, but degree to which circumstances have been distorted is far beyond anything else, historically. As a consequence, expectations have not been able to adjust to the greatly exaggerated conditions. A supernova is when a very big star explodes. This happens when a star runs out of energy to make heat and light, so it collapses, then explodes, its brilliance at its peak just prior to its ultimate demise. What we are witnessing is the likely supernova death dance of the existing Rothschild dynasty, flaring up in its culminating demise after a few hundred years of unparalleled financial power. The "silver stake" in the heart of that insidious group is silver and gold, the kryptonite against the Rothschild central bank fiat. This is not to imply that the end will be immediate for it may yet take much more time, a more likely scenario. A few indicators are the switch of the head of Deutsche Bank, as one example. Its current CFO is to be replaced by an ex-Goldman Sachs executive, one of the primary sources for elite-control of how business is conducted. This indicates the status quo is still calling the shots. Deutsche Skatbank is now going to charge its large depositors a .25% fee for keeping their cash in the bank, a negative interest rate. Only the fiat central bankers would keep draining people of their own money. "What's yours is ours," is their motto. As long as it is business as usual, PM are going nowhere. Another key event is the Swiss referendum at the end of November to see if the central bank will be required to increase its gold holdings to 20% from the current 7.8%. This event will be a huge tell. Obviously, Swiss central bankers are solidly opposed to this restriction, preventing them from irresponsibly issuing fiat at will. If passed, the Swiss would have to purchase around 1,700 tonnes of gold, and that is about 70% of total annual gold production. It would create havoc for the gold-selling manipulators. The referendum is popular with the people who favor a return to more sound money management for their economy. If the measure fails, it will once again demonstrate that people do not matter, only bankers and their corrupt debt-enslavement of the masses. A win for the bankers is a loss for everyone else, and it will tell you that the timetable for a recovery in gold and silver will still be on hold and central bankers are still in control. It will be a set-back for anyone's timetable. We cannot point to anything in the US because the public is fed a constant flow of lies from the elite back-pocket-owned media. Gold is not considered to be any kind of a store of value, and its holding by the public has been erased from their pliant minds. The only buyers and holders of precious metals are those who are more independently minded and more informed, but even their mental mettle is being tested by this constant suppression of prices. Are the elites winning? Absolutely. Can they persist over time? Absolutely, but the probability of keeping price suppressed keeps diminishing with the passage of time. When will that point in time come? That is another absolute, which is: not a day sooner than when it happens, and not even the Rothschilds could provide the answer if their sordid lives depended on it. The best anyone can do is to accept what is, the unknown or the unknowable. We were as surprised as anyone that 26 in silver did not hold, and also when it took over a year as price moved in a trading range, and even more surprised to see a 16 handle, even 15, briefly, last week. However, it is what it is, and it is a clear message that the elites are not going to give up easily, if at all, even if self-destruction is required. All anyone can do is be prepared for what is certain to come, even though its certainty as an event is anyone's guess. Are PM holders dissatisfied, disillusioned? Many are, maybe most, but their feelings cannot and will not change what is. If anyone bought and held gold/silver with the expectation of selling it for a higher price over the past year or two, then that was a speculation, less leveraged than buying futures, but speculation nonetheless. The primary reason for buying and holding gold/silver, it seems, is as a store of value for when the fiat system collapses, as it will, and under this consideration, time was less of a factor, even though expectations have been somewhat dashed. With little or no intent to sell one's holdings, one has less value than in the past few years. It is more akin to the housing bubble. Many who own homes have seen their property values decline. Does that mean home owners will sell simply because the price has dropped? No. The same holds true for stackers of silver and gold. You do not sell simply because price is lower. The driving down of price is intended to take the wind out of the sails of PM holders. That alone should be a sufficient message that owning both gold and silver is the right tactic. What has ben missing during this 3+ year decline in PMs has been what we have pointed to on several occasions, a form of ending action that sends a message that a change in trend is in progress. Last Thursday and Friday's sharply higher volume and wide ranges lower is the kind of activity that leads to the end of a trend. There is not enough to say it has happened, to be sure, but the end game is starting to step up and be closer to a resolve of ending of the down trend. The monthly shows no promise of change in the direction where price has been headed. It may not be what many want to hear, but it is what the market is indicating. A point to be made for addressing the disappointment of how price has declined without respite for the past few years. It stems in large from believing the bullish news related to gold and silver and hanging one's hopes on such events, even though there was no indication from the charts that a trend change was in the making. This is why we never stop saying that the charts are the best source for market indications. Ultimately, fundamentals will prevail, but the greatest weakness of fundamentals is the almost total absence of timing, and in the markets, as we all know, timing is everything. Here is a great example of what having a bias in a market can do. We have talked about bearish spacing for over a year, and it is called "bearish" spacing for a reason, that being a sign of market weakness. Within the trading range of the past 17 months, the market has shown a series of lower swing highs. A lower swing high is another indication of weakness, and they are a hallmark of a bear trend. Yet, price kept holding the 18.60 area, giving reason to "believe" a bottom may be forming. [Beliefs are perceptions about reality but not necessarily reality itslef. Change the belief, and you change the reality.] We are not impervious to the bullish news about PMs, and the fact that we have been buyers of the physical before and after the highs gives a bias toward "believing" fiat will fail and gold and silver will prevail. Maintaining a bias translates into how markets are perceived. The combination of bearish spacing, a series of consecutively lower swing highs, especially when the last swing high rally fizzled out in June, meant the probability of support breaking increased significantly. Our bias allowed for seeing and recognizing both, but the biased "belief" partially blocked the importance of what the market's message was sending. This is why we are surprised to see support broken, but can more readily accept what is because the market never wavered in its bearish message. Last Thursday and Friday are signs of panic selling, based on the sharp increase in volume at the lows. That the sharp increase occurred at the lows tells us strong hands are in the market taking whatever sellers have to offer. It is too soon to assess if last week is a sign of bottoming activity, but the level of volume is an important tell. As an aside, the gold/silver ratio is just over 72:1, and this favors buying silver over gold on the premise that the ratio will come in at some point in the future. It says that at some point, silver will out perform gold. The fact that the gold/silver ratio still shows gold as being stronger than silver is evident in the charts. Gold has breached its 1170 area support, but not by much. Keep in mind that support is an area and not some absolute number. Chart comments apply, and not much more can be added. We view the sharp decline and equally sharp volume increase as a positive development. Why? It tells us that the end of the trend is nearing more than the market has indicated for the past few years. These low levels are a gift for physical PM buyers. Anyone who bought gold at $1,600 or higher, expecting considerably higher prices should view being able to buy it 25% cheaper should be as ecstatic as the Chinese and Russians, both of whom are buyers of the physical knowing full well the higher prices are coming. Their time frame is much longer, but their convictions as to direction are no less resolute than yours have been and should continue to be. Fundamentally, the most bearish news last week came from Alan Greenspan who said to buy gold. "Come into my house," said the spider to the fly. |
| Gold Price Falls Below Support Although Breakdown Confirmation Needed Posted: 01 Nov 2014 10:29 AM PDT This is an excerpt from the daily StockCharts.com newsletter to premium subscribers, which offers daily a detailed market analysis (recommended service).
We have been watching gold for a possible triple bottom, a base for the next strong rally. Earlier this month gold bounced off an important support line, offering hope to gold bulls that the third bottom in the series would be successful. However, the price of gold has slipped badly in the last two weeks, and on Friday the triple bottom support line failed to hold. The weekly chart shows the big picture. While the triple bottom looked tempting, the consolidation of the last year was a negative continuation pattern, meaning that it would most likely resolve downward as the decline from the 2011 top resumed. The declining tops marking the top of the formation was also a negative sign. Finally, the persistent discount* on shares of Central Gold Trust (GTU) displayed on the bottom panel showed that sentiment on gold never got out of the basement. The main factor in gold’s problems is the strength shown by the U.S. dollar since midyear. While it consolidated gains in the first half of October, it jumped to new highs on Friday. Conclusion: While we anticipated that gold’s decline might end with a triple bottom, that possibility seems remote with Friday’s breakdown. The breakdown will not be decisive until price drops to about 1145, but it now seems unlikely that gold will begin a new bull market any time soon. |
| Fundamentals will prevail eventually with stocks and metals, Sprott tells KWN Posted: 01 Nov 2014 06:06 AM PDT 9:10a ET Saturday, November 1 2014 Dear Friend of GATA and Gold: High stock prices are disconnected from the awful fundamentals of the economy just as monetary metals prices are disconnected from enormous demand for them, Sprott Asset Management CEO Eric Sprott tells King World News. But Sprott says he is confident that fundamentals will prevail eventually. 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 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: |
| Koos Jansen interviewed on German TV about Chinese gold demand Posted: 01 Nov 2014 05:59 AM PDT 9a ET Saturday, November 1, 2014 Dear Friend of GATA and Gold: China gold researcher and GATA consultant Koos Jansen, market analyst for Bullion Star in Singapore, was interviewed for 10 minutes this week by the German financial news network DAF, discussing China's interest in gold and noting that Chinese gold demand is actually twice what is reported by the World Gold Council. The interview can be viewed at Bullion Star's Internet site here: https://www.bullionstar.com/blog/koos-jansen/china-will-utilize-gold-pri... CHRIS POWELL, Secretary/Treasurer 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: |
| Gold And Silver – Elite Supernova Death Dance In PMs? Posted: 31 Oct 2014 09:15 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. |
| Gold and Silver - Good Morning Fiat Nam Posted: 31 Oct 2014 10:37 AM 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. |
| Pretium - Canadian Golden Elephant Posted: 31 Oct 2014 09:59 AM 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. |
¤ Yesterday In Gold & Silver
I have been detailing this ratio chart quick often of late as I am of the opinion that the gold shares still lead the price of the metal. My concern for the outright price of gold has been noted as this plunging ratio has been a very good indicator for the future direction of the gold price thus far.
| You are subscribed to email updates from Save Your ASSets First To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google Inc., 1600 Amphitheatre Parkway, Mountain View, CA 94043, United States | |
No comments:
Post a Comment