Friday, 30 December 2011

As the Year Ends, lets Remember the Big Picture

Last day of year quotes for gold since 2000:


2000 - $273.60

2001 - $279.00

2002 - $348.20

2003 - $416.10

2004 - $438.40

2005 - $518.90

2006 - $638.00

2007 - $838.00

2008 - $889.00

2009 - $1096.50

2010 - $1421.40

2011 - $1566.80



Happy new years everyone!

Tuesday, 20 December 2011

Golden State - Bombs (The Ron Paul Song)

Awesome video about the upcoming American election. Ron Paul is the only true politician in the U.S left. He is America's last chance.


"Music video for Golden State's new song 'Bombs' (End This War/The Ron Paul Song), featuring US Presidential candidate Congressman Ron Paul, Alex Jones of Infowars.com, Luke Rudowski of We Are Change, and more."

Friday, 16 December 2011

The COMEX is Broke if 4% Take Delivery

"When I talked to the head of deliveries at COMEX NYMEX, I was like, ‘What if 4% of the people want deliveries?’ He said, ‘Oh Kyle, that never happens. We rarely ever get a 1% delivery.’ And I asked, ‘Well what if it does happen?’ And he said, ‘Price will solve everything’ And I said, ‘Thanks, give me the gold.’"

Ellis Martin Report with Jim Sinclair December 16 2011 (Exclusive Interview)

Tuesday, 13 December 2011

Martin Armstrong - MF Global Disaster

Martin Armstrong's latest article is now out. I have had time to read it and it is a must read. It deals with the MF Global disaster and topic of trading with other people's money. As always he adds in a little history to help you understand the dangerous path we as a society have chosen. Click the image below to read this article.



Monday, 12 December 2011

The Bears Explain MF Global

"This video explains causal links between OTC derivatives, the financial crisis of 2008, Alan Greenspan, Robert Rubin, Larry Summers, Jon Corzine and MF Global."

Friday, 9 December 2011

Keiser Report: Economics is the New Rock'n'Roll (E220)

"This week Max Keiser and co-host, Stacy Herbert, discuss Hank 'Baldface' Paulson, liquidity shortfalls and Joe Pot of Marmite. In the second half of the show, Max talks to Rick Ackerman about Goldman's death dive and MF Global's crimes against markets."


Monday, 5 December 2011

EUR Tumbles: S&P About To Put Europe's AAA Club (Including Germany, France And Austria) On "Creditwatch Negative"

Here it comes. From the FT: "Standard and Poor’s has warned Germany and the five other triple A members of the eurozone that they risk having their top-notch ratings downgraded as a result of deepening economic and political turmoil in the single currency bloc. The US ratings agency is poised to announce later on Monday that it is putting Germany, France, the Netherlands, Austria, Finland, and Luxembourg on “creditwatch negative”, meaning there is a one-in-two chance of a downgrade within 90 days. It warned all six governments that their ratings could be lowered to AA+ if the creditwatch review failed to convince its experts. Markets have been braced for a potential downgrade of France but few expected Germany’s top rating to be called into question. With regard to Germany, S&P said it was worried about “the potential impact (...) of what we view as deepening political, financial, and monetary problems with the European economic and monetary union.” Standard and Poor’s has warned Germany and the five other triple A members of the eurozone that they risk having their top-notch ratings downgraded as a result of deepening economic and political turmoil in the single currency bloc." How this critical news was leaked, we have no idea. However, what is important is that now may be a good time to panic, unless Allianz has another CDO Quadratic plan up its sleeve...

- Read the full story on the Zero Hedge here:

Wednesday, 30 November 2011

Central Banks Move to Ease Pressure

"Central banks moved to ease the strain the European debt crisis is putting on the global financial system by lowering the rate they charge for emergency access to U.S. dollars.

In a joint announcement Wednesday, the Federal Reserve, the European Central Bank, the Bank of Japan, the Bank of England, the Bank of Canada and the Swiss National Bank said the move is necessary to “ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit to households and businesses and so help foster economic activity.”

Starting next week, the central banks will drop the rate they charge to exchange U.S. dollars for other currencies by half a percentage point. The new charge for “swaps” will be half a percentage point above the U.S. dollar overnight index swap, or OIS. A swap is essentially a loan backed by collateral. The OIS market is where banks go to borrow dollars or other currencies on a short-term basis..."



And there is no liquidity issues right now? Give me a break.


- Read the full article at the Globe and Mail, here:

http://www.theglobeandmail.com/report-on-business/international-news/central-banks-move-to-ease-pressure/article2254698/

Saturday, 26 November 2011

S&P downgrades Belgium’s debt

Belgium has had its credit rating downgraded by ratings agency Standard & Poor's.

The country's downgrade could make it more expensive for Belgium to borrow in future.

Belgium's rating was cut by one notch, to AA from AA+, with S&P expressing concerns about funding and market pressures...


- Read the full article here:

Tuesday, 22 November 2011

Turk - MF Global Disaster to Create Another Lehman Crisis

“First of all investors should be concerned because everything is so inter-connected today. People call it contagion and this contagion is real because the MF Global bankruptcy is going to have a knock on effect, just like Lehman Brothers had a knock on effect.”

“So the contagion is the first reason for concern. The second reason for concern is it’s taking so long for them to find this so called missing money, which I find shocking. It’s been three weeks now since the MF Global bankruptcy was declared and they started talking about $600 million of missing funds.

So I’m not too surprised that now they are talking about $1.2 billion of missing customer funds. I think they are just trying to delay the inevitable as to how bad the situation at MF Global really is."

- Read the full interview at King World News, here:

Tuesday, 15 November 2011

Martin Armstrong - Gold Upside Take Off Only Months Away

“Basically what you are doing is you are building a sideways type of base. Eventually gold is going to take off to the upside, but largely when people begin to see the Emperor has no clothes and we’re getting close to that. I would only give it a few more months.”

- Martin Armstrong discussing Gold, via a King World News Interview:

Thursday, 10 November 2011

Eveillard - If Italy Sells its Gold Here is What Will Happen

“It would make a terrible impression. It would be the idea that, ‘Gee, they are selling the family jewels,’ if they were to do so. It would be a little bit like the IMF at the beginning of 2010 sold 200 tons of gold. It was India that bought it.

The gold price subsequently went up because I think it was interpreted as gold moving from the weak hands of the IMF, to the strong hands of India. The idea is the West is declining. The West, which dominates the International Monetary Fund, is declining and the East is rising.”

- Jean Marie Eveillard via a King World News interview, read the full interview here:



Tuesday, 8 November 2011

Stephen Leeb - This Will Drive Silver to $100 Rapidly

Here’s silver near $35, up from $20, so it’s up 75% in price in just over a year and people are bearish. To me this just means that silver is going dramatically higher. Solar is already taking 11% of silver production. How long before it takes 100%?

Solar is just on the tarmac, solar hasn’t even taken off. And we are not even talking about silver as a monetary metal. That’s basically silver’s history, that of being a monetary metal. So the question is what drives the price of silver to $100 more rapidly, monetary or industrial use or some combination?....

- Read the full interview at King World News here:

Thursday, 3 November 2011

Gold now Going to $2000

"Gold is headed now into the $2000s with extreme violence.

Regards,"

- Jim Sinclair

Keiser Report: Make Love, Not Debt (E205)

This week Max Keiser and co-host, Stacy Herbert, discuss the new world order in which we're all Greeks because we didn't see the signs in 1969 - "Make Love, Not Debt." In the second half of the show, Max Keiser interviews Birgitta Jonsdottir, about the true state of transparency, banking and economy in the latest IMF poster child, Iceland.

Thursday, 27 October 2011

Keiser Report: Clowns Run World (E202)


This week Max Keiser and co-host, Stacy Herbert, discuss David Cameron, STFU going viral, Riot Granny in Athens and Gaddafi's alleged net worth. In the second half of the show, Max interviews John Perry Barlow about financial activism, capitalism, Marxism and a plutocratic cancer on the economy.

Wednesday, 26 October 2011

Repost: Why A €1 Trillion EFSF Is Not A "Bazooka" But A "Peashooter", And Is Woefully Inadequate

The most important news of the night is not that the Greek haircut will be 50%, which is still insufficient as it excludes ECB Greek debt holdings, plus as the IMF noted, a 60% NPV haircut on all bonds is needed for Greece to return to viability, but that the EFSF will be just €1 trillion. Unfortunately, the EU Council and its advisor, JPM, refused to read the Zero Hedge analysis on why anything less than €2.4 trillion is insufficient (not to mention assumes no French AAA-downgrade... ever). Which is why we repost it for whatever sentient carbon-based life forms are left to realize why tonight's Euro TARP should be promptly faded until it is at least doubled to well €2 trillion, which, alas is impossible: absent Uncle Sam footing €250 billion solely to bailout French banks, this will not work!

- Read the full story here:

Friday, 21 October 2011

Ron Paul: "Blame The Fed For The Financial Crisis"

To know what is wrong with the Federal Reserve, one must first understand the nature of money. Money is like any other good in our economy that emerges from the market to satisfy the needs and wants of consumers. Its particular usefulness is that it helps facilitate indirect exchange, making it easier for us to buy and sell goods because there is a common way of measuring their value. Money is not a government phenomenon, and it need not and should not be managed by government. When central banks like the Fed manage money they are engaging in price fixing, which leads not to prosperity but to disaster.

- Read the full article here:

Thursday, 20 October 2011

London Trader - China Bought Massive Amount of Gold Today

“The price discount in gold is the most welcome thing to the entire Eastern Hemisphere. The Chinese are buying very relentlessly because they know what is going to happen. We had a major, major physical buy order today. The Chinese bought a massive amount of physical today at the lows.”

- London Trader via a King World News interview, Read the full interview here:

Monday, 17 October 2011

SocGen Asia Strategist Has Near Fit On Bloomberg TV After Making It Clear That It's All The Blogosphere's Fault

SocGen's Todd Martin, who is the bank's Asia equity strategist, appeared on Bloomberg earlier today to discuss the Volcker Rule and prop trading, against which the anonymous blogosphere had some very "strong views" back in 2009 before anyone had even considered prop trading. Sure enough, prop trading ended a few months later with the adoption of the Volcker Rule. Somehow, the topic of the Volcker rule shifted to the topic of whether or not Morgan Stanley is exposed to France, and its insolvent banks (ahem), and who is to blame. Take a wild guess on Mr. Martin's opinion in the matter: "For example one blog just a week ago, had a very, very strong view against Morgan Stanley. They quoted Sanford Bernstein who actually was telling people to buy the stock. And then they were quoting Gross Exposures not Net, and then concluding that Morgan Stanley had to go down and be dismembered [sic]. Now I have a serious problem with this.... If I get regulated why isn't this place regulated. It's also very dangerous because they are using psudonames [sic] and we don't know who they are. They could be the guy on the street. They could be a hedge fund dangling out information. It could be the head of a prop desk. Thing is it is supposed to be regulated. And they get their revenues from trading platforms on US soil. And I don't think it's fair. And I think the US should go and take a look and regulate the blogosphere. I think it's really, really out of control." In other words: it is all the blogosphere's fault.

- Read the full article and see the video here:

Thursday, 13 October 2011

So Much For EURUSD Breaking 1.3800: S&P Cuts Spain To AA- From AA

UPDATE: EURUSD loses 1.3750

On Oct. 13, 2011, Standard & Poor's Ratings Services lowered the long-term rating on the Kingdom of Spain from 'AA' to 'AA-', while affirming the short-term ratings at 'A-1+'. The outlook is negative. The transfer and convertibility assessment remains 'AAA', as it does for all members of the eurozone. The negative outlook reflects our view of the risks to Spain's economic growth linked to private sector deleveraging, external financing pressures, and their impact on budgetary consolidation. We could lower the ratings again if, consistent with our downside scenario, the economy contracts in 2012, Spain's fiscal position significantly deviates from the government's budgetary targets, or additional labor market and other growth-enhancing reforms are delayed. Conversely, we could revise the outlook to stable if, consistent with our upside scenario, the government meets its budgetary targets in 2011 and 2012, risks to external financing conditions subside, and Spain's economic growth prospects prove to be more buoyant than we currently assume.


- Read the full article at Zero Hedge here:

Sunday, 9 October 2011

Keiser Report: Price Propaganda (E194)


This week Max Keiser and co-host, Stacy Herbert, talk about pitchforks trading up, the mother of all short squeezes and the anonymous hedge fund. In the second half of the show, Max Keiser interviews Professor Steve Keen, author of Debunking Economics 2, about occupy wallstreet, debt bubbles and Australian housing.

Friday, 7 October 2011

Ben Davies - Buy Gold, The Only Option Left is to Print Money

"There is not doubt that we saw a mass on mass deleveraging across all asset classes. When I see people who do not understand the gold market, one the concept of the two-tiered market and two, they don’t understand that gold is actually a form of money. I don’t think they realize also how much money is being put into the system.

To my mind gold will not be falling back to $1,400. I believe that we have (already) seen the low. We have seen open interest collapse dramatically. I believe it’s done.”

- Ben Davies, via a recent King World News Interview:

Fitch Downgrades Italy To A+, Outlook Negative

Fitch Ratings-London/Milan-07 October 2011: Fitch Ratings has downgraded the Italian Republic's (Italy) foreign and local currency Long-term Issuer Default Ratings (IDRs) from 'AA-' (AA minus) to 'A+' (A plus) and the short-term rating from 'F1+' to 'F1'. The Outlook on the long-term ratings is Negative. The Country Ceiling of 'AAA' has also been affirmed. The downgrade reflects the intensification of the Euro zone crisis that constitutes a significant financial and economic shock which has weakened Italy's sovereign risk profile. As Fitch has cautioned previously, a credible and comprehensive solution to the crisis is politically and technically complex and will take time to put in place and to earn the trust of investors. In the meantime, the crisis has adversely impacted financial stability and growth prospects across the region. However, the high level of public debt and fiscal financing requirement along with the low rate of potential growth rendered Italy especially vulnerable to such an external shock....

- Read the full story at ZeroHedge here:

Monday, 3 October 2011

London Trader - Physical Demand for Gold has Been Insatiable

"The Asians have been buying like crazy, all through this takedown they have been buying. We have seen massive premiums and bottlenecks in supply, they simply cannot get enough physical metal as the prices have dropped. The demand has literally been insatiable. As I have stated before, the central bank gold, which was used to sell the market down, has gone to vaults in Asia. That’s a one way trip, it doesn’t come back into the market...."

- London Trade, via a King World News Interview:

Asia stocks fall; Hong Kong drops 5 per cent

What?! Greece won't meet their deficit reduction promises?! How is this news? Everyone knows they won't meet any of these hollow promises.

"Asian stock markets tumbled Monday as sentiment took a hit from a weakening economic picture in Europe and Greece’s admission it won’t meet its deficit reduction target despite austerity..."

- Read the full story at the Globe and Mail here:

Sunday, 2 October 2011

Michael Pento - Why Investors Should Buy Gold Now


“Likewise, an economic slowdown won’t hurt gold prices this time around either, as long as Bernanke does not sit on his hands for 6 months. With Europe teetering on default, investors can be assured that the European Central Bank and the U.S. Fed will not allow another half year of deflation and money supply contraction to send the global financial system into ruins. Once an economy becomes fully addicted to inflation it is very hard to kick the habit.

Investors must understand that global central banks will do everything in their power to avoid reality and try to keep the credit bubble from bursting on both sides of the Atlantic. That’s why taking advantage of this recent pull back in gold may be the smartest move.”

- Michael Pento, via a King World News Interview:

Wednesday, 28 September 2011

Alessio Rastani Believes Everything he Said - CNN trying to discredit him

Alessio Rastani is now on tour, we uploaded his video just a couple of days ago. That video shocked many people (I'm sure not our audience, but many uninformed people). The video got so much attention that the mainstream media cannot ignore it. Quite honestly we agree on many of his view points. The system is broke.


Like this article? Digg it!

Monday, 26 September 2011

The Truth Hurts - Governments don't Rule the World, Goldman Sachs Does!


"In a scary and painfully frank interview a freaked out BBC interviewer is visibly shaken when market trader Alessio Rastani predicts that the "Market is Toast." Apparently there is nothing Euro governments can do."

Like this article? Digg it!

Sunday, 25 September 2011

Gold is in a Bubble? Pure Nonsense Still being Published by Main Stream Media!

Wow I was completely blown away by the complete nonsense of the following article. It is completely filled with holes and a lack of understanding current events unfolding. The "journalist" if you can call him that, has clearly not studied any history, or even looked at the last 10 years of history. This shortsightedness and complete lack of understanding of what Gold is, just further justifies what we all, already know. Gold is far from being in a bubble, BTFD!


Here is the opening line of what pursues to be a laughable article:


"If there is one thing we’ve learned about gold in recent years it’s this: It is not a haven investment, a point emphasized by Friday’s $100-an-ounce swan dive..."


- Read the rest of the gibberish here:

http://www.theglobeandmail.com/globe-investor/markets/markets-blog/gold-is-for-the-fool-if-you-are-looking-for-safety/article2178376/

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Saturday, 24 September 2011

Fears Over 'Shockwave' Of Greek Debt Crisis

According to senior G20 sources, the assumption now is that the country will have to default on its debt by as much as 50% – on top of the 20% voluntary restructuring already agreed in July.

And so whereas efforts some months ago were aimed at preventing Greece defaulting, the Eurozone, and its G20 colleagues from the world's biggest economies, are instead making secret plans to build a firewall protecting European economies such as Spain and Italy from the prospect of a buyers' strike...


- Read the full story here:


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Friday, 23 September 2011

Sprott Money - We have run OUT of SILVER!

“We have completely run out of physical silver, so we are temporarily out of stock. You have to remember, Eric, that like Dubai, we only sell product that is on our shelves, that we have in stock. We do expect a shipment later today, which will allow us to restock and give us more product to sell.

Our clients are very savvy, sophisticated and when a price drop of this magnitude occurs, they step in and buy very aggressively. Right now there is dramatically increased volume what we are seeing is buying across all spectrums in terms of the size of the orders.

To clarify, we may have some client buying a single tube of silver maples, while at the same time, another client is buying $5 million of 100 ounce silver bars or gold maple leafs. The bottom line here is the drawdown in price is creating a tremendous amount of demand.”

- Larisa Sprott, via a King World News Interview

Tuesday, 20 September 2011

More Gold & Silver Friendly news: Swiss Franc Plunges On Rumor EURCHF Peg To Be Widened To 1.25

To anyone short the USD/EUR-CHF who just went to the bathroom a minute ago, our condolences. The rumor is that the SNB will expand its EURCHF peg to 1.25 tomorrow. Completely unfounded of course. It may just as easily be another forceful intervention round. Or just plain and simple central planner rumor mongering: as noted, Swiss August exports plunged and Hildebrand will take any help he can get.

- Read the full story here:

Friday, 16 September 2011

BREAKING NEWS! - Identities of JP Morgan Silver Manipulators Exposed


“The biggest news in a long time because these are actual people who are coming out and naming names of individuals who were involved in this alleged conspiracy with JP Morgan to actively manipulate the price of silver. People may go to jail over this. JP Morgan has all barrels pointing at them as traders are named in this suit, including senior traders at JP Morgan.”

Robert Gottlieb, who is currently a Managing Director/Trader at JP Morgan and an alleged participant in the manipulation is brought up in the lawsuit. What is interesting about Mr. Gottlieb is that in February of 2008 he made the following statement, “If you take just 1-2% of hard asset pension fund money earmarked for commodities and put that into gold, you can project much higher prices in the future than even where we are today.” The timing of the statement is so interesting because at the time Bear Stearns was massively short silver and the firm collapsed within weeks of his comments...

- Read the full story at King World News here:

Thursday, 15 September 2011

Utilities of the Future

“gold stocks are the utilities of the future.”

- Jim Sinclair

Saturday, 10 September 2011

Eric Sprott - Silver could go to $1,200!

“I think silver will outperform gold in the next decade. If silver should trade at a 16 to 1 ratio (to gold), it will probably trade at 10 to 1 because things tend to overshoot. Let’s use Jim Sinclair’s $12,000 target, that would suggest $1,200 silver, which is a thirty bagger from here...The biggest reason it (silver) should go there is people should fear bank deposits, that’s what I think they should fear.”

- Eric Sprott, via a King World News Interview

Thursday, 8 September 2011

Swiss pegging their currency to the Euro - Very Bullish for Gold

When asked about the Swiss pegging their currency to the euro Embry responded, 

“In a world in which manipulation wasn’t predominant in markets, that news should have sent gold screaming up $100, not down $100. With their currency getting too strong and impacting their economy, they (the Swiss) have hooked themselves up to the euro, which looks like a depth charge. This is a very bullish development for gold.”

- John Embry via a King World News Interview, read the full interview here:

Tuesday, 6 September 2011

Switzerland move threatens currency war

Switzerland is moving aggressively to weaken its franc and protect exports from watches to chocolates, sparking fears of an escalating currency war that would ripple through markets and other economies.

For months, the Swiss National Bank tried to rein in its surging currency by lowering interest rates and injecting francs into the market, but that did little to dissuade investors who viewed the franc as one of the few safe places to keep their money in a world of economic turmoil.

On Tuesday, the central bank decided it would wait no longer, setting a minimum exchange rate of 1.20 francs per euro. Investors immediately sold the currency, which sank by about 8 per cent to the SNB’s target level...

- Read the full story here:



Thank You Swiss National Bank For $2000+ Gold

Confirming that this is a market for idiots, by idiots, was the 4 am response in the price of gold, which following the SNB's Swiss Franc peg announcement did not surge, as it should haveconsidering that the SNB just singularly changed the role of the CHF from a "flight to safety" to a carry currency, making gold the only island of stability in a world of fiat insanity, but instead plunged by over $50. Subsequent attempts to regain the $1900+ level were met with constant program selling for no other reason, than just because someone 'else' was selling. Of course, the logic is completely and totally the opposite. But don't take our word for it: here is Reuters: "Switzerland's decision to peg the erstwhile safe-haven franc to the euro may finally give gold bugs the chance to see prices hit the once-unimaginable $2,000 an ounce mark, as the metal holds on track for its strongest annual rally in three decades. By buying euros in unlimited amounts to weaken the franc, the SNB is in effect putting more of its own currency into circulation, which threatens to trigger inflation. It has also impacted the Swiss currency's status as a haven in its own right. While gold prices initially dipped as the move sparked a rush to liquidity in the form of other currencies such as the dollar, the SNB move is likely to lend firm support to gold in the medium term, analysts said." Precisely. And it is not only Reuters: Bank of America's MacNeill Curry said that Gold will probably rise to $2,050 this year. The rationale - identical to the above: SNB decision to peg franc to euro should also support gold. "They have taken out one of the big safe-haven assets, which is the Swissie." As for the amount of time the idiots will need to realize that QE3 coupled with the SNB action means that gold is now valued somewhere well over $2000: at least a few days...Which everyone who looks for even the smallest golden pullback will be happy to take advantage of.

- Read the full story at ZeroHedge here:



Monday, 5 September 2011

Gold rises to above $1,900 on euro zone debt worries

Gold rose on Monday, breaking back above $1,900 (U.S.) an ounce, as speculation grew that the United States may implement a further round of monetary easing after Friday’s weak payrolls data, and concerns over the euro zone debt crisis resurfaced.

Stock markets fell, with European bank shares sliding to a 29-month low, while the euro shed nearly 1 percent versus the dollar and oil prices slipped as investors sold assets seen as higher risk in favour of havens like gold and Bunds...

- Read the full story here:

Thursday, 1 September 2011

Jim Sinclair interviewed by James Turk

"James Turk, Director of The GoldMoney Foundation, talks to Jim Sinclair, host of http://www.jsmineset.com/, about his successful gold price predictions, US debt problems, how to ride the trend and the second phase of the gold bull. It's a gear change from arithmetic to exponential growth as public perceptions about the safety of the US dollar changes. The debt ceiling debate is a wake up call for people all over the world. The video was recorded on August 5 2011 at the GATA conference in London."




Tuesday, 30 August 2011

Ned Naylor-Leyland talks to James Turk

"Ned Naylor-Leyland (http://www.cheviot.co.uk ) and James Turk, Director of the GoldMoney Foundation, talk about how the new Pan Asia Gold Exchange (PAGE) will change the price discovery mechanism for gold. Ned explains that the futures market currently takes the lead in price discovery over the much larger spot market and how this may change once PAGE starts to operate.

PAGE will provide a valuable alternative because its fully backed, allocated gold contract will provide a better title, closer to physical, than unsecured unallocated contracts.

This interview was recorded on August 5 2011 in London."





Monday, 29 August 2011

You Have to Be in Silver!

“I would be less concerned about the timing in silver now than the fact that you must be there. Whether it could correct further from here, I don’t know, but it doesn’t make any difference because the next big move is going to be huge and it’s going to be up. The key is how long can the huge bullion bank short hold its position and continue to try to influence the market...."

- John Embry

Thursday, 25 August 2011

Pierre Lassonde - Gold to Attack $2000 per oz in September!

“So we’ve seen a 10% correction, is it the end or is it going to see another 10%? This being the end of August, September is always a good month for gold, it has been for the last ten years. So my feeling is that the correction at $1,700, plus or minus $20 is over. I think we are going to see an attack on the $2,000 level in September. It will probably bounce back off again, you’ll probably get a couple of bounces off the bottom...."

- Pierre Lassonde, via a King World News Interview


Caution: Another Gold Margin Hike Imminent

Just like Interactive Brokers predicted the last CME margin hike with 100% precision, here it comes again. It is now all too clear that the CME risk managers have decided to do to gold what they did to silver: namely shake out the weak hands with as many as 5 or more margin hikes in a row. Since everyone else is all cash, the CME's attempt to manipulate the market is coming to an end.

Read the full Story at Zero Hedge Here:

Wednesday, 24 August 2011

And There's Your Perfectly Leaked Explanation: CME Hikes Gold Margins, Again, This Time By 27%

Two weeks after the CME hiked gold margins by 22%, and two days after the Shanghai Gold Exchange sent them higher by 26%, here comes the CME, as we expected, with another 26% gold margin hike (previously: "Should we expect 3 more SGE margin hikes in the next 2 weeks? Or will the CME rightfully accept the baton and do everything in its power to dent the parabolic rise in the alternative reserve currency? We are cautiously looking at what the CME will do today and will advise readers."). And now we know that this particular margin hike was leaked well in advance, and explains the entire $100 plunge in gold today. And as a reminder, the August 1 CME margin hikeworked... for about 30 minutes.

Read the full article at Zero Hedge Here:



John Embry - Asked about the Recent Attack on the Gold Price

“Well it’s standard practice actually. Having dealt in this market for as long as I have and watching the gold cartel, how they do things, this just seems quicker than normal. I mean once gold went through $1,900, they (the cartel) went into full attack mode when the London market opened yesterday and when Comex opened, in came the second leg of the attack to the downside. Then when they got it into the thin access market they really killed it.”

- John Embry via a King World News Interview:



Tuesday, 23 August 2011

Gold Reaches $1,913.50 – Smart Money Moving Into Silver As UBS Says $50 Silver In 3 Months

UBS have raised their 3 month forecast for silver sharply from $30/oz to $50/oz. They suggest that investors are too nervous to short gold and may be preferring to buy silver instead. Silver remains more than 16% below the record nominal high seen in late April 2011 and in January 1980. While gold at $1,888 is now 120% above its nominal 1980 high of $850/oz. The inflation adjusted high for silver is over $130/oz and those who understand the fundamentals of the silver market are positioning themselves for the possibility of a move to these levels in the coming months. Speculative fever in the silver futures market remains muted with COT data showing net longs well below the records seen in April. Silver is volatile but in the current climate what isn’t? Recently, there has been huge volatility in currency and bond markets and entire equity indices have been as volatile as silver. While silver is volatile, what makes silver valuable is the fact that like gold it has no counterparty liability or risk (with silver coins, bars or allocated storage) and therefore cannot go bankrupt unlike banks and sovereign governments. Media coverage of silver remains minimal with big brother gold getting some of the limelight recently.

- Read the full Article at ZeroHedge, here:



Monday, 22 August 2011

Sunday, 21 August 2011

James G. Rickards talks to James Turk



James G. Rickards (http://www.tangentcapital.com) and James Turk, Director of the GoldMoney Foundation, talk about the European sovereign debt crisis and the European Central Bank buying Italian bonds. They talk about the ECB's role in the crisis and how it is becoming increasingly politicised, in contrast with its predecessor of sorts -- the Bundesbank. They talk about the possible differences between Jean-Claude Trichet and his successor Mario Draghi. James Rickards explains how Europe is developing a common fiscal policy with a common Treasury, in the form of the European Financial Stability Facility (EFSF), which will dictate fiscal policy to many member countries -- such as Greece -- in exchange for rescue funds. Rickards is bullish on the euro, among other reasons because the eurosystem owns 10,000 tonnes of gold.

Rickards and Turk debate whether or not central banks really own the gold they claim to own, and talk about how the current currency war -- with countries competing to see who can devalue their currencies the most -- is a disastrous zero-sum game. They discuss the problems facing countries whose currencies are appreciating rapidly, such as Brazil and Switzerland, and what these countries might do to curb this appreciation.

They comment on the recent debt-ceiling debate and how the compromise reached, despite all the headlines, does not actually include any real cuts, including only cuts in proposed increases. Rickards mentions his four possible scenarios for the future of the international monetary system: SDR, gold, multiple reserve currencies or chaos.

They talk about the potential for hyperinflation as the US government continues to rely on debt, instead of revenue, to finance an increasing portion of its outlays. Jim Rickards sees the potential for both deflation and hyperinflation and explains that it will depend largely on the actions of the Fed, with Bernanke leaning more in the direction of more money printing.

They discuss South Korea's recent acquisition of 25 tonnes of gold, as well as Indian and Chinese buying. Rickards explains that China is trying to bypass the world market by buying directly from miners.

James G. Rickards forthcoming book is: Currency Wars. The making of the next global crisis.

This interview was recorded on August 4 2011 in London.


Friday, 19 August 2011

John Embry - Silver About to Roar Through $50 All-Time High


John Embry seems to agree with my recent call of going overweight silver in the short term. Here is what he said today in his recent interview with King World News:

“Silver is absolutely explosive. The bullion bank with the large short position has thrown everything but the kitchen sink at the thing on the downside. You had those five margin hikes a couple of months ago as an example and that was all an attempt to hold back something that I don’t think can be held back. All it did was sort of buy two or three more months and now silver is building up power to roar through the $50 all-time high.

Once silver does that (breaks $50), who knows where it’s going to go? All I know is that gold is going a lot higher and the gold/silver ratio is going down and that means silver is going a lot further than gold. So I mean pick your prices, they are going to be dramatically higher for both of them.”


- John Embry, via a King World News Interview:

Thursday, 18 August 2011

Next up, Gold Angel $1849

Gold Angel $1764 has been crushed! This has been confirmed and confirmed again. 


We are in Phase 3 of the Gold market now. Next Gold Angel coming up, $1849, which is just a breath away. 


Gold could have a significant correction anytime, which would be healthy. $2100 is guaranteed, but I will be going overweight Silver, at least for the short term.


- Picture compliments of JSMineSet.com

Wednesday, 17 August 2011

The Debt Collapse And The Case For $20,000 Gold

Another much watch video by Mike Maloney. As always he is clear concise and sticks to the facts. Show this to everyone you know. His presentations are laid out in such a manner that anyone can understand them.



Venezuela to nationalize gold sector


Venezuelan President Hugo Chavez said Wednesday he will nationalize the gold industry, including extraction and processing, and use its output to boost the country’s international reserves.


The move follows a dispute between his government and foreign miners who say the rules limiting the amount of gold that can be exported from the South American nation hurt their efforts to secure financing and create jobs...


Read the full story here:

Tuesday, 16 August 2011

Jon Stewart On The Ron "13th Floor In A Hotel" Paul Media Blackout

Over the weekend, following the Iowa straw poll result, we posed a simple question: why does the media continue to ignore Ron Paul (on both the left andright)? We followed up with none other than Paul's own response to this curious status quo. A few days later, it appears that the media itself has finally caught on to this ironic 'house of mirrors' effect, and while Paul is still not a household name, the self-effacing sarcasm this topic has garnered, has been captured best by none other than Jon Stewart in this entertaining clip that mocks the established mindset of the legacy media to not dare disturb the status quo, confirming that everyone, left and right, are really all just the same. For those who have not seen it yet, this is a hilarious must watch.

Make sure read this full article, and watch the video clip. Spread the word about Ron Paul:

Monday, 15 August 2011

You Haven’t Seen Anything Yet


We have to admit $1764 is a significant level for gold. Above that level and the $1800 plus recent high comes into focus. Above that level the hyperbolic potential of the gold price comes into focus.
Some of the finest minds in gold anticipate a very short but brutal reaction in price. The dollar market seems to not agree with a gold correction here.
Market wise, the Fed has thrown the US dollar into the wind. Under .7400 the dolllar denies a reaction in gold at these levels.
When gold broke out above $524.90 I asked you to please cease trading as gold had moved from phase 1 into a runaway price phase 2. It is this phase that has given you prices in excess of $1650. $1764 has the same significance as $524.90 because it represents phase 3, the point when a runaway price market for gold would gain exponential properties. Because $1764 is such a significant number, you can expect one of the more serious price battles before the price departs to Alf Fields’ and Armstrong’s predictions.
To sum up the situation, you haven’t seen anything yet.

Sunday, 14 August 2011

US Debt Ceiling Limit Raised, Now What?

Congratulations! The Debt Ceiling Limit has been raised! Rejoice!



- Picture via JSMineSet.com

Thursday, 11 August 2011

Battle of the havens: Gold versus bonds

Since July 22, gold has outperformed bonds, with a 9.6 per cent return versus a 5.6 per cent return for the bond fund. Both assets, of course, demolished the 14.4 per cent slide for the S&P 500.


Over the longer term, though, gold’s lead over bonds becomes more pronounced. In 2011, gold has gained 25 per cent, which is more than double the total return for the bond fund -- although both trounced the 7.5 per cent decline for the S&P 500.


Over the past year, the difference is huge: Gold has soared 46.5 per cent versus a 7.9 per cent return for bonds.


Read the full article here:

http://www.theglobeandmail.com/globe-investor/markets/markets-blog/battle-of-the-havens-gold-versus-bonds/article2126400/


Wednesday, 10 August 2011

CME Hikes Gold Margins By 22% And Gold Drops by....0.4%, Resumes Climb

Just after hitting a new all time high of above $1815 in spot gold, the CME immediately sent out a notice to members advising that gold margins for Tier 1 members were increasing by 22% for both initial and maintenance positions, from $4,500 to $5,500. Unfortunately for the CME, this predetermined move was telegraphed to the market weeks ago, and with rumor 57 out of 22 finally turning out correct, this latest move only managed to push gold down modestly, and at last check was once again trading above $1,800. Just like all central bank interventions, which now have a half life between 1 hour and 4 days max, so this latest exchange attempt to subdue prices will fail spectacularly. Naturally, just like in the case of silver, this will merely embolden the CME to proceed with hike after hike, which in turn will kill speculative elements while merely reinforcing the strong hands. End result: in one month gold will be above $2,000 with almost 100% certainty.

http://www.zerohedge.com/news/cme-hikes-gold-margins-22-which-gold-ignores-completely-resumes-climb-above-1800

London Trader - Many Gold Shorts Wiped Out, Lost Everything!


"These guys in London woke up with their asses handed to them and I don’t think some of these guys will ever be short again, if they are still in business. So some of these perennial shorts that have always joined in the party got screwed, I mean literally lost everything. For the ones that didn’t lose everything, they certainly lost an awful lot."


London Gold Trader, as Interviewed by King World News:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/8/10_London_Trader_-_Many_Gold_Shorts_Wiped_Out,_Lost_Everything%21.html

The Tradition Lives! Gold Explodes, Futures Touch $1801

The traditional inedible religion of barbarians had been oddly patient for most of the day. No longer: next up $2000.


- Tyler Durden of Zero Hedge

Tuesday, 9 August 2011

Fed expects to keep record low rates for 2 more years

My interpretation of the FED meeting minutes:


Fed expects Gold Prices to rise for 2 more years...




P.S: Gold Angel $1764 is broken, lets see if we close above it. Phase 3 in Gold is here.

Monday, 8 August 2011

Gold Up $41, Hits Record $1761

While the massive drubbing across risk assets has modestly subsided, the global investing herd has finally realized that in the absence of shifting money into bonds (or even in addition to), there is a certain shiny yellow metal that may be just as good a store of value (granted, inedible) that despite a lack of cash flows (and who needs cash flow in a fiat based exchange system which will soon be wiped out anyway), is probably just a good substitute and as of this night is providing 1761 reasons as to why it is becoming increasingly obvious that if anybody listened to Hugh Hendry's presentation from last year in which he suggested people panic, it is the central planners. Should the Fed proceed with announcing QE3 tomorrow in the form of Operation Twist 2, gold will likely resume it vertical ascent to $2,000 which may be breached as soon as Friday. Alternatively, should Bernanke keep mum and disappoint everybody, all bets are off, across every single asset class.

Read the full story at ZeroHedge Here:

The Next one to Downgrade the United States? - Moody's cautious about U.S. deficit cuts plan


Ratings agency Moody's Investors Service on Monday warned it might also downgrade the U.S. government's credit rating if its planned measures to reduce its budget deficit turned out to be not "credible" after all.
In his first comments after the move by rival rating agency S&P, Moody's analyst Steven Hess sounded a note of caution about Moody's rating of the U.S., repeating that the August 2 plan to cut deficits by $2.1 trillion was positive for the U.S. credit standing, but not enough to keep its rating on a stable outlook...

Read the full story here:

GOLD UP OVER $70 in ONE DAY!

I guess the politicians were right, it doesn't matter if one of the largest credit rating agencies in the world downgrades the largest economy in the world. No one will even notice!


Well gold has noticed...


Friday, 5 August 2011

You Can't Make this Stuff up - "Is There A Risk The US Could Lose Its AAA Rating?" Tim Geithner: "No Risk"


Peter Barnes “Is there a risk that the United States could lose its AAA credit rating? Yes or no?”
Geithner’s response: “No risk of that.”
“No risk?” Barnes asked.

News Hits the Main Stream: S&P downgrades United States credit rating


The United States lost its top-notch AAA credit rating from Standard & Poor’s on Friday in an unprecedented reversal of fortune for the world’s largest economy.

S&P cut the long-term U.S. credit rating by one notch to AA-plus on concerns about the government’s budget deficits and rising debt burden. The move is likely to raise borrowing costs eventually for the American government, companies and consumers...



Read the full story here:

S&P Downgrades US To AA+, Outlook Negative - Full Text

Well, so much for the conspiracies. S&P has just released a scathing critique of the total chaos that this country's government has become. "The political brinksmanship of recent months highlights what we see as America's governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed. The statutory debt ceiling and the threat of default have become political bargaining chips in the debate over fiscal policy. Despite this year's wide-ranging debate, in our view, the differences between political parties have proven to be extraordinarily difficult to bridge, and, as we see it, the resulting agreement fell well short of the comprehensive fiscal consolidation program that some proponents had envisaged until quite recently. Republicans and Democrats have only been able to agree to relatively modest savings on discretionary spending while delegating to the Select Committee decisions on more comprehensive measures. It appears that for now, new revenues have dropped down on the menu of policy options. In addition, the plan envisions only minor policy changes on Medicare and little change in other entitlements, the containment of which we and most other independent observers regard as key to long-term fiscal sustainability." What to expect on Monday: " it is possible that interest rates could rise if investors re-price relative risks. As a result, our alternate scenario factors in a 50 basis point (bp)-75 bp rise in 10-year bond yields relative to the base and upside cases from 2013 onwards. In this scenario, we project the net public debt burden would rise from 74% of GDP in 2011 to 90% in 2015 and to 101% by 2021." And why all those who have said the downgrade will have no impact on markets will be tested as soon as Monday: "On Monday, we will issue separate releases concerning affected ratings in the funds, government-related entities, financial institutions, insurance, public finance, and structured finance sectors." Translation: unpredictable consequences: you are welcome!

Thursday, 4 August 2011

Mr. Gold - Jim Sinclair, We will Soon enter Phase 3 in Gold


Dear Friends,

I am in London this evening in my room posting as much serious material as possible to help you understand the new nature of gold; a nature fraught with unprecedented volatility. I will deliver my presentation tomorrow. Right now we have to talk.

Gold from $248 to $524.90 was an arithmetic uptrend based on a re-birthing of gold's currency roll.

When gold broke out above $524.90 I asked you to please cease trading as gold had moved from phase 1 into a runaway price phase 2. It is this phase which has given you prices in excess of $1650.

$1764 has the same significance as $524.90 because it represents phase 3, the point when a runaway price market for gold would gain exponential properties.

Because $1764 is such significant a number you can expect one of the more serious price battles before the price departs to Alf Fields' and Armstrong's higher potentials.

To sum up the situation you haven't seen anything yet.

As strange as it sounds right now, soon you will begin to see the bearish cabal on mining shares looking for cover where gold will be sold for correct precious metals shares.

Keep the faith. $1650 has been the minimum upside since $248, not the most likely top.

Respectfully,
Jim Sinclair

Margin Calls Force Start Of Gold Liquidation

As expected, the massive global rout is shifting to the best performing asset: gold, which courtesy of pervasive repo desk margin calls (which are merely trying to preserve capital for their TBTF holding companies) is seeing liquidations to satisfy collateral margin requirements. It will be interesting if the only real dip worth buying will see buyers come out of the woodwork or if gold will proceed to plunge alongside everything else.


Read the full article at ZeroHedge, here:


http://www.zerohedge.com/news/margin-calls-force-start-gold-liquidation

London Trader - Expect Gold & Silver Spike From Short Covering

The action is very positive.  If there is a pit (Comex) close above $1,680, gold will race to $1,705 because of all of the buy stops above $1,680.  There are a tremendous number of shorts in the gold market and a significant number of them will capitulate and close out their shorts above that level.” 


- London Trade, King World News


http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/8/4_London_Trader_-_Expect_Gold_%26_Silver_Spike_From_Short_Covering.html

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