Saturday, 29 June 2013

Jim Sinclair - $50,000 Gold!

On Monday, I had the pleasure of interviewing the legendary Mr. Gold, Jim Sinclair. As many of you already know, Jim Sinclair is the CEO of Tanzanian Royalty Exploration and has over 50 years of experience in the gold industry. He lives and breathes this market. Jim is known for accurately predicting the top of the gold bull market in 1980. Also, he has been a beacon of hope in the gold community and provides his daily thoughts for free on his website, JSMineSet.

During the course of this interview, I was able to ask Jim a number of our viewers’ questions. These questions covered the most pressing concerns that are currently affecting the gold community, such as bail-ins, manipulation of markets, a potential COMEX default and much more.

Jim was very clear that he sees a price rise in gold coming by early July. This rise in prices could take us to new highs. How high? Jim sees $50,000 gold as a likely target should the paper manipulators lose control. This number sounds staggering to many, but you must remember that this market has been a beach balloon that has been pushed to depths never seen by man.

So what do you think? Do you see gold recovering and moving higher this summer, or do you believe that the gold bull market is dead and over? I’m personally in the bullish camp and believe the manipulators are losing control over this market. Enjoy the interview.

- Source, Sprott Money Blog:

Tuesday, 25 June 2013

Fake Silver Is Flooding The Market

"If you have followed gold and silver market news over the past few years, it is likely you have seen various reports on fake gold and silver products.

In March 2012, a 1 kilo tungsten gold bar turned up in the United Kingdom.

Then in September 2012 there were reports on a slew of 10 oz tungsten gold bars bought and sold in New York's jewelry district.

The big problem with these news reports is that they have given little to no solution on how the public at large can avoid fake bullion products.

We would like to raise the general awareness of this issue both with our customers, our industry, and the general gold and silver investing public at large. With more than a year of hands on research, we have identified some of the biggest fake silver and gold counterfeit threats facing the investing public today.

This Special Report on the growing threat of fake silver and counterfeit gold products will arm you with solutions on how to best avoid being ripped off by sellers of phony bullion products."

- Source, Gold Silver:

Sunday, 23 June 2013

China to Increase Gold Holdings

China has a way to go before catching developing countries in gold holdings per capita, sitting at just 5 grams versus 20 in developing countries.

Research from the China Gold Association shows that in April, Chinese bullion buyers made a good start buying 137 tonnes of gold, almost 100 per cent higher than the previous month.

The Association spokesman said that demand this year could reach 900 to 1,000 tonnes, although today's gold rout may see gold buyers in China tempted to pick up the pace of their purchases.

China is poised to pass India as the largest bullion consumer as early as this year after New Delhi raised import taxes and Beijing made investing easier, the Association said.

Also bullish for gold consumption, China approved its first two domestic exchange traded funds (ETF's) backed by the metal this month while India raised levies to curb demand that is feeding a current-account gap.

The two countries account for more than half of global demand.

The gold price fell US $73.50 to US $1,277.80 an ounce overnight in panicked selling.

Will Chinese bullion and gold jewellery buyers seize the opportunity to increase their holdings of the yellow metal in response to the large falls in price?

Based on recent evidence, the odds are better than not. Increasing their holdings will barely make a dent on their gold holdings per capita versus the average of developed countries. Time will tell.

- Source, Proactive Investors:

Friday, 21 June 2013

Kyle Bass - The Next 18 Months Will Redefine Economic Orthodoxy For The West

Kyle Bass covers three critical topics in this excellent in-depth interview before turning to a very wide-ranging and interesting Q&A session. The topics he focuses on are Central bank expansion (with a mind-numbing array of awe-full numbers to explain just where the $10 trillion of freshly created money has gone), Japan's near-term outlook ("the next 18 months in Japan will redefine the economic orthodoxy of the West"), and most importantly since, as he notes, "we are investing in things that are propped up and somewhat made up,"the psychology of negative outcomes. The latter, Bass explains, is one of the most frequently discussed topics at his firm, as he points out that "denial" is extremely popular in the financial markets.

Simply put, Bass explains, we do not want to admit that there is this serious (potentially perilous) outcome that disallows the world to continue on the way it has, and that is why so many people, whether self-preserving or self-dealing, miss all the warning signs and get this wrong - "it's really important to understand that people do not want to come to the [quantitatively correct but potentially catastrophic] conclusion; and that's why things are priced the way they are in the marketplace."

2:40 Bass begins

- Source, Zero Hedge:

The Rational Market Myth

One of the myths of economics is that markets are rational. Theories are based on this assumption, and the belief that markets are rational fuels the argument against regulation. The market response to the Federal Reserve’s June 19 statement that it will taper off its bond purchases if its forecast comes true is unequivocal proof that markets are irrational.

The Federal Reserve’s statement that it “currently anticipates that it would be appropriate to moderate the monthly pace of purchases [of bonds] later this year” depends on a very big if. The if is the correctness of the Fed’s forecast of moderate economic growth and employment gains.

The Fed has not stopped purchasing $85 billion of bonds each month. So nothing real has changed. Indeed, there was no new information in the Fed’s statement. It has been known for some time that, according to the Fed, its bond purchases will gradually cease.

In response to this repeat of old information, the stock and bond markets sold off in a major way on June 19-20. This market response to the Fed’s statement indicates that the Fed’s forecast is unlikely to come true. Low interest rates and a high stock market are totally dependent on the liquidity that the Fed is injecting by printing $1,000 billion per year. If this liquidity is not injected, what will sustain the markets? If the markets crash and interest rates rise, how can the Fed expect recovery?

In other words, the participants in the stock and bond markets know that the markets are bubbles created by the printing press. There is no real basis for the high stock and bond prices. The prices are an artificial reality created by the printing press. Rational markets would take into account the printing press element and would price stocks and bonds at a much lower level.

- Source, Paul Craig Roberts, read the full post here:

Monday, 10 June 2013

The Silver Bull Market is NOT Over Yet!

SNNLive spoke with David Morgan of The Morgan Report at Cambridge House International's World Resource Investment Conference 2013 in Vancouver, CA.

- Source, Cambridge House:

Saturday, 8 June 2013

France Bans Shipment of Gold and Silver

In France, a new law that sending gold, silver and cash prohibits. Companies gold coins on sale and send by post can not exercise this new law work. Sites are also traders who are prevented by the new law. Operates like eBay.

In September 2011, the French government took all measures to limit. anonymous cash purchases of gold and silver Since then, every purchase of bullion with a value of more than € 450 per bank transfer happen. With the new law since June 1 this year in force is also sending by post of banknotes and precious metals restricted.

The new legislation can be found on this website , where under Chapter I, the following Article D1 of the universal postal service and the postal service obligations is:

"L'insertion the billets de banque, the pièces et de metaux precieux est interdite dans les envois postaux, y compris dans les envois à valeur déclarée, lesson envois recommandes et les envois faisant l'objet de leur formalités attestant dépôt et leur distribution. "

Loosely translated the law says that inserting banknotes, coins and precious metals is prohibited in mail. That includes insured and registered mail shipments.

- Source, Market Update:

Thursday, 6 June 2013

Gold Sales Prohibited by Central Bank of India

Two weeks ago, with its current account getting crushed by relentless gold imports, India's finance minister Chidambaram literally begged the people to stop buying gold. Judging by the popular response, the ongoing physical shortage, and last night's increase in Indian gold import duties from 6% to 8%, appealing to people's feeling when it comes to the choice of fiat vs physical, has failed miserably. So the FinMin Chidambaram has decided to escalate. Per Reuters: "The Reserve Bank of India has advised banks against selling gold coins to retail customers, Finance Minister P. Chidambaram said on Thursday, a day after he raised gold import duty to try to ease pressure on India's bloated current account deficit." Well, if there ever was one sure way to send demand for any product through the roof (guns, ammo, etc), it is for the government to prohibit its outright sale. What follows next, almost without fail, is a panicked, chaotic buying scramble.

Gold imports by India, the world's biggest buyer of bullion, surged to 162 tonnes in May -- more than twice the monthly average in the record year of 2011.

"I think the Reserve Bank has advised banks that they should not sell gold coins," said Chidambaram, while speaking at an event in Mumbai.

Chidambaram also urged banks to advise their customers not to invest in gold.

Why? If it is not clear by now, here is the explanation: there is simply not enough gold to satisfy demand at the current artificially downward-manipulated price, no matter what propaganda script is being spun on Verizon TV at any given moment. And with India's idiotic decree, even more gold will be purchased at these prices.

Dear India - here is a simple way to limit demand: price.

Petition the central banks to allow gold to price based on price discovery, or as it is also known supply and demand. Because if gold were to cost $2000,$5000, $10,000/oz then all problems resulting from excess demand would immediately disappear and India's current account would be back to normal.

Of course this will not happen, as the crumbling facade of the imploding fiath based regime would immediately peel away. So back to gold capital controls and other ad hoc made-up measures guaranteed to not only fail but push the price of physical gold much higher.

Good luck.

- Source, Zero Hedge:

Sunday, 2 June 2013

The Level of Physical Gold Being Traded is Shocking!

“Just look at what’s happening in the physical gold market. The LBMA reported record gold transactions in April, of plus 25%. This is the highest level since gold peaked in September of 2011. So physical trading is at the same level where it was when gold was at its peak at $1,900. That’s extraordinary. The level of physical gold trading is incredible. We are seeing the same activity now as when gold was at its peak. And it proves that all of the selling is in the paper market.

Remember, Eric, these were April figures. We have seen, and also refiners have seen much higher activity in May. So demand is even greater right now. I believe that we have seen the gold market finally turn to the upside, despite today’s pull back  It’s possible to see some consolidation before gold takes off, but the real move, when it starts and it won’t be far away, that will be massive.”

- Egon Von Greyerz via a recent King World News interview, read the full interview here: