Tuesday, April 30, 2013

Nigel Farage on "wholesale, violent revolution" in Europe


20 Signs That The Next Great Economic Depression Has Already Started In Europe


Embry - This May Create A Massive Upside Breakout In Gold


Congressional Bill Seeks Steel Cents, Nickels, Dimes, and Quarters

This is why Kyle Bass has hoarded $1 million worth of nickels.  Oh, by the way, he also predicted and profited from the collapse of the subprime mortgage market, and has been accumulating gold for himself, his clients at Hayman Capital, and UTIMCO, the University of Texas system.  You know, that $29 billion endowment fund.  Living in California, and being a product of the University of California system, I wonder whether the UC Board of Regents has any physical gold in their investment fund.


Edit:  this link is no longer valid.  The original author's blog was removed.  Big Brother is watching.  You know things are getting desperate when the status quo feels compelled to suppress the truth.


The window of opportunity to exit the financial system is closing.  This should raise a red flag for those fearing capital controls.  Cuba here we come.


To require precious metals or stones dealers to provide a periodic statement of transactions in an electronic format to the local licensing authority and retain any goods purchased for at least ten days, and to make the requirements applicable to precious metals or stones dealers similar to those applicable to secondhand dealers.

Introduced by: Public Safety and Security Committee
I guess lawmakers infer ownership of precious metals is a threat to public safety and security.

You have been warned by me many times.

CME President on Gold: “They Don’t Want Certificates, They Want the Real Product”

This is a stunning admission from the CME President, because the exchange deals in futures (paper) contracts.  Yet, he admits that when it comes to gold, clients want physical gold, not paper. 


Gold buyers forced to go on waiting list


There will be more wealth confiscation, without a doubt


Dwindling U.S. gold stocks signal surge in physical demand

Surprised?   Not a single "conspiracy theorist" gold bug was surprised by the exploding demand and premiums on physical gold and silver, after the paper spot prices were taken to the wood shed.

At least Reuters got it right with gold being transferred from western banks to eastern vaults.  What they don't mention is that gold also represents wealth being transferred to Asia.


World Changing Events & The Global Run On Gold And Silver


Jim Willie: The Gold Climax Event


Will the US dollar hyperinflate?


Gold Rush From Dubai to Turkey Saps Supply as Premiums Jump


"Who Is Ben Bernanke's Worst Nightmare?"


Europe's Scariest Chart Leaves 1 in 4 Young People Unemployed

Europe will go to war--again.  It's just a matter of time.  A country cannot remain sovereign when close to 70% (and climbing) of its youth is idled.  But hey, the stock market is near all time highs, so it's all good, right?


QBAMCO On Precious Metals And The Coming 'Great Reset'


Monday, April 29, 2013

The Spot Price of Precious Metals Is Becoming Irrelevant

This is exactly what I've been preaching for years:  the price of physical precious metals will decouple from the spot price due to price suppression of the latter.


Presenting: The Housing Bubble 2.0


Vast Majority of Brits, Germans and French No Longer Trust the EU


Neil Macdonald: The 'monarchs of money' and the war on savers


Perth Mint Works at Weekend to Meet Highest Demand Since ’08


Jim Sinclair - Media Blackout, Panic & A Major Short Squeeze

The major gold mining company Sinclair and Turk are referring to with the forward sales hedges is Barrick.


Turk - The Mother Of All Short Squeezes In Gold & Silver


Influential economist says Wall Street's full of 'crooks'


Pento - US Debt Surges A stunning $7 Trillion In Just 6 Years


Chief Advisor To US Treasury Becomes JPMorgan's Second Most Important Man


François Hollande to woo French business with tax cut

Even the communists in France have realized the error of their ways and cut corporate taxes, in an attempt to woo businesses back.


Gold Bears Defy Rally as Goldman Closes Short Wager: Commodities

There are so many misinformed opinions on gold's recent rally from its stunning decline that I had to print this article.  The reasons/excuses/rationalizations/causations cited are conventional and stunningly misguided--even the title is misleading, and suggests Goldman's short call was prescient.  It was, but never mind that its "rapidity" was collusive and manipulative.  I'll let the physical gold bugs read and laugh (as opposed to leveraged gold longs who will read and whimper).


The More Illegal Immigrants That Go On Food Stamps The More Money JP Morgan Makes


Saturday, April 27, 2013

Robert Mish: Front-Line Observations from a Seasoned Gold & Silver Bullion Dealer


Eric Sprott - Silver To Skyrocket Hundreds Of Dollars in Price


Gold Frenzy In India Continues For Second Week As Festival Approaches


Everything Is Rigged: The Biggest Price-Fixing Scandal Ever

To all my critics who insisted I was a conspiracy theorist, here's a big $hit sandwich just for you. 

Conspiracy theorists of the world, believers in the hidden hands of the Rothschilds and the Masons and the Illuminati, we skeptics owe you an apology. You were right. The players may be a little different, but your basic premise is correct: The world is a rigged game. We found this out in recent months, when a series of related corruption stories spilled out of the financial sector, suggesting the world's largest banks may be fixing the prices of, well, just about everything.

You may have heard of the Libor scandal, in which at least three – and perhaps as many as 16 – of the name-brand too-big-to-fail banks have been manipulating global interest rates, in the process messing around with the prices of upward of $500 trillion (that's trillion, with a "t") worth of financial instruments. When that sprawling con burst into public view last year, it was easily the biggest financial scandal in history – MIT professor Andrew Lo even said it "dwarfs by orders of magnitude any financial scam in the history of markets."

John Dalberg-Acton quotes

“Power tends to corrupt and absolute power corrupts absolutely.”

"Great men are almost always bad men."

“There is no worse heresy than that the office sanctifies the holder of it.”

“The one pervading evil of democracy is the tyranny of the majority, or rather of that party, not always the majority, that succeeds, by force or fraud, in carrying elections.”

"The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks."

"The danger is not that a particular class is unfit to govern. Every class is unfit to govern."

Richard Russell comments

The US is now borrowing money to pay for the interest on our national debt. The US now borrows roughly 46 cents for every dollar that it spends. We’ve finally come to the point where our foreign creditors no longer want to lend money to the US to cover our outrageous debts. What’s next? The Federal Reserve is now buying the US’s bonds. How does the Fed pay for the bonds? The Federal Reserve pays for the bonds with money that it CREATES out of thin air. This process is systematically shrinking the purchasing power of the "dollar." And worse, the world is fully aware of it. Almost every nation is now moving to protect itself against the shrinking purchasing power of the dollars in their reserves. So far, Americans seem totally unaware of what is happening to their dollars. The government is lying about inflation in our lives. Yet we see inflation in our energy and gas bills, in the price we pay for food at the supermarkets, in the cost of imported goods, in our medical bills, in college tuition, and in almost everything else.

The real danger in all this is that the move away from dollars is accelerating. At some point in the weeks or months ahead, the "escape from the dollar" will break out into the open. At that time interest rates will suddenly and automatically rise, as the dollar is forced to defend itself (higher rates render the dollar more attractive to our creditors). When rates start to rise, the bond market will begin to crumble. The exact timing of all this is impossible to predict. But that doesn’t matter — the implications of a bond crash are so ominous that they transcend precise timing. The time to prepare for safety is now. 

Ultimate safety lies in actual gold in your possession. If the US government really cared about its people, it would now (like China) be urging Americans to accumulate gold for their protection. Instead, Uncle Sam insists that gold is not money, and worse — does its best to hold the price of gold down.

The physical gold and silver market continues with high demand, expanding premiums... - Richard Russell, April 25, 2013.

Sharp price fall triggers surge in China gold imports

The mainland's imports of gold from Hong Kong probably surged this month as mainlanders increased their purchases after prices fell to the lowest in more than 2-1/2 years.

Volumes for the benchmark spot contract on the Shanghai Gold Exchange exceeded 20 tonnes every day since April 16, when prices tumbled to the lowest since August 2010. That is more than four times the daily average last year, according to exchange data.

The volume reached a record 43.27 tonnes on Monday.

Gold plunged 14 per cent in two sessions to April 15 in London, the most since 1983, stoking a frenzy among coin and jewellery buyers from China to India and the United States.

Shipments to the mainland reached a record 114.405 tonnes in December, according to data from Hong Kong's Census and Statistics Department, which may release this month's data in June.

"Given that the trading volume has been so huge on the Shanghai Gold Exchange, the import volume in April should definitely reach a very high level," said Qu Mingyu, a trader at Bank of China.

"Whether they will reach a record remains to be seen.

"The high volume on the benchmark spot contract is a reflection of very strong physical demand in China, especially from jewellery makers."

Bullion of 99.99 per cent purity gained as much as 3.5 per cent to a two-week high of 303.50 yuan a gram (US$1,530.70 an ounce) on the Shanghai exchange.

China, which does not publish gold trade data, is the world's largest bullion consumer after India.

Spot gold traded 0.4 per cent lower at US$1,461.55 an ounce in London yesterday morning, trimming this week's gain to 4.1 per cent, the most since January last year. Prices rose earlier as much as 1.2 per cent to US$1,485.50. While prices have advanced 11 per cent from a two-year low of US$1,321.95 on April 16, they are still 6.4 per cent below the April 11 close of US$1,561.45 that preceded the rout.

JPMorgan Receives No New COMEX Gold Today, Converts Registered Into Eligible


Jamie Dimon Has Issues (or Meet The Idiot Selling Gold)

The Blythe Masters reference leads to this article.


Blythe Masters Interview on CNBC

This sure sounds like 2007--only the interview took place in 2012.  Perhaps Blythe can explain the derivatives blow up in 2008, and JPMorgan's $6 billion "whale trade" loss last year.  JPMorgan is always "flat", eh?  Sure--so is the earth.

CNBC: And you're looking at growth not only in agriculture and in metals and in oil, but across the board in all facets.  That's what you're investing in.  A lot of concern has been placed though about JPMorgan particularly its positions in the metals space.  And looking at your positions in silver, we talked earlier about the volatility in the silver market.  Can you talk about JPMorgan's positions and price volatility and how are they related?
Blythe Masters:  Yeah. that's a great question. And you're right, there's been a tremendous amount of speculation particularly in the blogosphere about this topic. I think the challenge is that that speculation represents a misunderstanding as to the nature of our business. As I mentioned earlier, our business is a client-driven business where we execute on behalf of clients to achieve their financial and risk management objectives.  The challenge is that commentators don't see all of that activity simultaneously.  So, just to give you a specific example, we store significant amounts of commodities -  for example, silver - on behalf of customers. We operate vaults in New York City, in Singapore and in London.  And often when customers have that metal stored in our facilities, they hedge it on a forward basis through JPMorgan who in turn hedges itself in the commodity markets. If you see only the hedges and our activity in the futures market, but you aren't aware of the underlying client position that we're hedging, then it would suggest inaccurately that we're running a large directional position. In fact that's not the case at all. We have offsetting positions. We have no stake in whether prices rise or decline. Rather we're running a flat, or a relatively match book.

Sprott - Incredible Global Gold Rush Triggers $3,000 Target


Sprott - Historic Panic Bottom Ushers In New Gold Bull Marketn


Thursday, April 25, 2013

Silver Is Having Its Best Day in 15 Months


"The Battlefield Is The United States Of America"


JPMorgan's Eligible Gold Plummets 65% In 24 Hours To All Time Low


US Mint Sales of Gold Coins Hit 3-Year High


Shortages of physical gold now a global phenomenon


Central Banks Load Up on Equities

Speaking of bubbles...


Warning! Stocks to Crash, Gold to Top $10,000: Albert Edwards

I'm sure this guy is pleasant dinner conversation with his predictions.


Stunning & Massive Run On Physical Gold & Silver Continues


Wednesday, April 24, 2013

Just What Is Going On With The Gold In JPMorgan's Vault?

The answer to these questions zero hedge poses is easy:  the gold vaults of JPMorgan Chase and the US Treasury are adjacent.  Eligible gold inventory plummeted right before the historic take down in the price of gold.  Those are facts.

The reader is left to connect the dots.


25% Of Scotia Mocatta's Silver Transferred From "Registered" To "Eligible" Status: A 45% Reduction In "Physical"

This is a good clarification between "registered" and "eligible" status of bullion in COMEX depositories.


Forget Gold, Use Silver as Currency: David Morgan


BMW to Amazon Space Demand Spurs Rush to Inland Empire


"Working Poor" Spark 170% Increase In Britons Needing Food Handouts In Past Year


Why Krugman and the Keynesians Are Lackeys for the Neofeudal Debtocracy


"Panic" For Physical Gold Spreads To UK Where Royal Mint Sales Of Gold Coins Triple


Here Is Who Said AAPL Would Hit $1000 Any... Minute... Now


US Mint Gold Sales Surge To Highest Since 2009


Abnormalcy bias


America The Fallen: 24 Signs That Our Once Proud Cities Are Turning Into Poverty-Stricken Hellholes


The Silver Market: An ‘Operation’, Not A Liquidation


Comex Physical Drain Accelerates—With Over $7.8B In Gold Disappearing From All Depositories


Former US Treasury Official - Fed Desperate To Stop Collapse


Tuesday, April 23, 2013

1,000 Japanese Officers To Participate In "Island Recapture" Drill In California

Amidst the saber-rattling from North Korea and Iran, no one is discussing the Japan/China dispute over some non-descript islands.  That might change.


Gold Coin, Bar Demand Remains Strong A Week After Price Rout


Leo Melamed, the CME Group, and How (Not) to Take Delivery

Rumor has it that this man, Leo Melamed, former Chairman of the CME Group, took delivery on 2 gold futures contracts (200 troy oz.).  Instead of taking physical delivery, the CME game him two warehouse receipts.

The CME is the global exchange where futures contracts are traded, including financial, commodities, and precious metals.  Here is the Wikipedia for Leo Malamed:


U.S. Mint suspends some gold coin sales after demand surge


Ron Paul On Bitcoin: "If I Can't Put It In My Pocket, I Have Reservations"


“It isn’t capitalism that has caused the crisis!”


How many more 'buying opportunities' like this can you take?


The Global Status Quo Strategy: Do More of What Has Failed Spectacularly


Universal Online Sales Tax Imminent?


Spain's Rajoy Yields To Merkel, Agrees That EU Countries Must Cede Sovereignty

German is about to the second language in Spain.  EU countries will slowly cede their sovereignty to their banking overlords.


EU near austerity limit, says Barroso

"Near austerity limit" = gin up the printing press, Jose.  See Japan.  In fact, see the Fed also.


Goldman Sachs Just Covered Its Gold Short

Goldman Sachs issues a Sell recommendation on gold, it tanks over 20% within a couple weeks, and Goldman subsequently closes out the trade with a tidy 10% profit.  These guys are the smartest guys in the room--and/or they are the best manipulators of markets on the planet.


Sinclair - Swiss Bank Just Refused To Give My Friend His Gold


Monday, April 22, 2013

The Gold Price vs. The Price of Gold

"Something different and, I believe, incredibly significant is happening here, and it goes back to that important distinction I made and promised to get back to: 'the gold price' vs 'the price of gold'.

'The gold price', as it is understood by most people, is nothing more than the quoted price of a gold futures contract on the COMEX exchange in the US. When you read that 'gold fell in overnight trading', what actually happened is that the price of a paper futures contract fell — not the metal itself.

'The price of gold', on the other hand, is what you will have to pay to get your hands on the physical metal itself, and that is a different thing altogether.

Despite the plunge in paper prices, 'the price of gold' remained remarkably robust." - Grant Williams

Attractive Entry Point For Gold

"We would recommend gold acquisition, for those who are inclined to pursue it, on a very modest level, utilizing a dollar-cost averaging method. Buy a little gold and put it away. Forget the price. Come back again, buy a little more, add to your hoard, and forget the price. Look at gold as an insurance policy that you hope you never need to use. We do believe that abandoning gold completely and disparaging it as a barbarous relic is too extreme.

Gold should form a part (not more than 5-10%) of a well-diversified investment
portfolio to protect against open-ended QE programs undertaken by central banks around the world. Additionally, the cost of holding gold is negative in an environment of negative real interest rates and widespread financial repression. Therefore the recent extreme move in gold presents an attractive initial buying opportunity for those who have been looking to enter the market." - David Kotok, Cumberland Advisors

China Hasn't "Seen This Gold Rush In 20 Years"

"Older members who have been in the business for 50 years haven’t seen such a thing." The feverish buying has left many of Hong Kong's banks, jewelers, and even its gold exchange without enough gold to meet demand. Record volumes on Shanghai's exchange, lines outside Beijing jewelry stores, and the proximity of Hindu festivals drove "Indian physical demand and premiums," higher as the worlds two largest gold buying nations prompted one exchange CEO to note that we hadn't, "seen this kind of gold rush in over 20 years." It would seem the concerted effort to collapse paper prices in London and New York has provided the rest of the world a multi-decade buying opportunity.

Gold Crash 2013 – Deliberately Engineered?


Asian bargain hunters pile into gold


Maguire - Gold Deliveries Into China Soar To 1,000 Tons


What You Must Know About Where Markets Are Headed & Why


Mystery objectors delay weight loss drug

The launch of a new weight loss drug is being held up by the US Drug Enforcement Authority, after a surge in anonymous objections that some investors fear is manipulating the process.

Belviq, developed by Arena, the US biotech company, was authorised as safe and effective by the Food and Drug Administration last June, but has yet to be ratified by the DEA under a process designed to ensure controlled use of medicines that come with a risk of abuse.

The FDA recommended that Belviq, known generically as Lorcaserin, be classified as a “schedule IV” drug, a low-risk category, which gives regulators some supervisory powers to oversee prescriptions.

But an unusually high number of 69 comments have been filed on Belviq, creating a greater workload for DEA officials in making an assessment.

The stalling has allowed Qsymia, a weight-loss drug made by Vivus, a rival US biotech, to gain a lead over Belviq, even though the drug was approved after Belviq by the FDA. While most of the 47 positive remarks on the DEA website are identified by the name of the author, 19 of 22 negative ones are anonymous, sparking debate over whether individuals with a vested interest in delaying Belviq have been posting criticisms.

Tom Cloud: How to Sell Gold Without Reporting It

This is not financial or tax advice.  Check with your CPA.

Here is an interview with Tom Cloud on IRS reportable coins.

TC = Tom Cloud
DC = Dollar Collapse website

"TC: A lot of people are asking for British sovereigns, Swiss francs, and Austrian coronas, coins that don’t require filing 1099s when you sell them. 

DC: The fact that some coins and bars have to be reported and some don’t seems both arbitrary and important in deciding what to buy. Could you give an overview of US precious metals reporting rules and how your clients tend to approach the issue? 

TC: Sure. When they created the Patriot Act [in 2001], the excuse was that the terrorists who blew up the Twin Towers had used pure gold and silver to finance their flight training. Whether that’s true or not, I don’t know. But the US imposed reporting requirements on sellers of 24-carat gold coins. If you sell more than 24 ounces in one year you’re required to file a Form 1099 with the IRS.

The 24-coin threshold applies to individuals, not families. If a husband and wife buy gold under their own names, they can each sell up to 24 ounces without having to report it. But if they bought the gold jointly, for instance with a check with both their names on it, they can only sell a total of 24 ounces in any given year. If a client sells 12 in March and 13 in December, all 25 ounces have to be reported to the government. If a client comes to me and sells 12 ounces and goes to another dealer and sells 13 ounces, they have triggered the reporting requirement, and it’s their responsibility to report it. Even if they think they’re getting away with something they may not be. I’m required to keep records, so if the government calls I have to reveal them. There are several cases where coin sellers have had to pay huge penalties for trying to avoid reporting by using more than one dealer.

Most 22-carat gold coins are exempt from Patriot Act reporting requirements, the only exception being the krugerrand. 

DC: You mentioned European coins. Why are they exempt? 

TC: There are some European coins that aren’t being made any more. Technically, people consider them to be rare, semi-numismatic coins. But some of them are actually cheaper than the major bullion coins. For example, the Austrian corona was only made from 1908 to 1915. It has .9802 oz of gold in it. If you’re out there today buying a gold eagle, you’re going to pay 5% – 6.5% over spot. But I buy Austrian coronas from a central bank as bullion coins, and can sell them at 2.75% over spot.

Another good example is the French 20 franc coin, which was made from 1856 to 1914. It contains 0.1867 ounce of gold, so it takes 5.35 of them to equal an ounce. Fractional coins usually have very large premiums. For example, a quarter-ounce gold eagle is somewhere between 10% and 12% over melt. We’ve got French 20 franc coins at 4.5% over spot and we’re selling hundreds of thousands of dollars worth of them because they’re completely confidential. So the best buy right now is the European coins because of their combination of low premiums and confidentiality. Every major wholesaler that I deal with puts a price out trying to buy these European coins every day. There’s big demand for them. 

DC: Let’s summarize with a list of which coins are and are not reportable. 

TC: The following one-ounce gold coins are reportable beyond the 24-ounce threshold: the maple leaf, philharmonic, kangaroo, krugerrand, Mexican onza, and buffalo. All one-ounce gold bars are also reportable above 24 ounces.

The following 22-carat gold coins are not reportable: US gold eagle, Mexican 50 peso, Austrian 100 corona, British sovereign, French 20 franc, Swiss 20 franc. 

DC: Got it. What about silver? 

TC: Silver is very easy. There are only two things. One is a full bag of junk silver which contains 715 ounces and constitutes $1,000 face value. It is reportable in the calendar year that it’s sold. The other is silver bars and coins in any combination – one-ounce, ten-ounce, 100-ounce or 1000-ounce – once the total hits 1,000 ounces. So you can actually sell more ounces in silver bars than you can of junk silver and not have to report it. 

DC: Any risk of these rules being tightened? 

TC: They tried with the health care bill provision that any transaction over $600 required a 1099, but when everybody realized that whether you bought a high-def TV at Wal-Mart or a gold bar or a car, both the buyer and seller would have to send a 1099 to the government, they dropped that rule. I don’t see anything similar on the horizon."

Swiss To Vote On Gold Repatriation - "Gold Is The Only Valuable Asset On The SNB's Balance Sheet"

Yeah, those Swiss bankers are a pretty radical lot.  The desire to bring their national gold reserves home--what a radical concept.


Sunday, April 21, 2013


"In fact, however, a lower gold price is making the problem more intractable, not less. The Fed is diving from the frying pan into the fire. This is the point missed by almost all observers and market analysts. They ignore the underlying flight into physical gold that continues unabated, in spite of (or, better still, because of) the panic in the paper gold market. The Fed’s intervention in bankrolling short interest is going to back-fire, for the following simple reason. The Fed’s strategy is inherently contradictory. A lower price for paper gold makes it easier, not harder, to demand delivery on maturing futures contracts.

The more paper gold Bernanke sells, the lower the cost of acquiring physical gold in exchange for paper gold becomes."

Ex-HSBC man accused of stealing Swiss bank data says US advised him to head for Spain

This story seems James Bond-like.


QBAMCO On Unreserved Credit Growth And Imperial Constraint


Bernanke to skip Jackson Hole due to scheduling conflict

One word comes to mind after reading this announcement: Uh-oh.


Here are zero hedge's comments, in case Reuters removes the article:


An Unprecedented $660 Billion In Excess Debt Demand, And What It Means For Bond Yields

This article declares the bond market will collapse with an accompanying soaring gold price.  But between now and then, bonds should continue their rally (yields and interest rates should continue to decline as QE artificially boosts demand for bonds, therefore outstripping supply)--and gold prices may further decline, despite the Fed's and Bank of Japan's balance sheets continuing to grow to grotesque levels.

In other words, expect choppy markets if you're long precious metals, but your day will come eventually, when inflation rears its ugly head.


Gold Carry Trade : What is it?


Friday, April 19, 2013

Refiners Can’t Keep Up With Massive Global Gold Demand


What’s next for gold?


Chinese Gold & Silver Exchange Society Runs Out of Gold…Importing from Switzerland and London


Sinclair - The US Will Be Cyprused & We Will See $50,000 Gold


Orchestrated Panic


Paper-Gold Holders Flee To Real Metal


Farage - People Are Lined Up Around The Block To Buy Gold


Thursday, April 18, 2013

Unintended Consequences Are Increasing World Demand for Gold


The Goal Is To Destroy All Constitutional Culture


What Exactly Did Obama Say To Wall Street's CEOs Last Thursday?


Russia's Medvedev: EU "bull in china shop" on Cyprus

"So far, the actions of the EU, the European Commission and the government of Cyprus on resolving the debt problem unfortunately remind me of the actions of a bull in a china shop."

"I can only compare it some of the decisions taken ... by Soviet authorities, who did not give a thought to the savings of the population." - Russian Prime Minister Dmitry Medvedev

Farage - New Government Confiscation & Gold Turbulence


CLSA Breaks The Wall Street Mold: Sells Japanese Equities To Buy Gold


Big Ööps: Deutsche Börse Says "Flash Crash Can't Happen Here" A Week Before German Flash Crash


The Soft Cost Curves Of Hard Assets: Where The Cash Flow Hits The Road


When Suckers Finally Realize


The battle for the Swiss soul


Gold crashes but physical demand sees unprecedented demand

This author properly differentiates between paper shorts (seller-manipulators) and physical longs (buyers), but he improperly uses the phrase "short squeeze."  In a short squeeze, prices rebound sharply as a combination of shorts covering and longs buying contribute to the melt up in the aftermath of bear raid reversal.  In other words, the short squeeze hasn't happened--yet.


Rule - More Evidence Of A Massive Run On Physical Gold


G-20 Draft Affirms Vow to Avoid Competitive Devaluations

The G-20 continues to jawbone against competitive currency devaluation.  Yet, member central banks are furiously engaged in a currency war, with QE to infinity.  And Bloomberg happily and complicitly reports the G-20's pledge to avoid a currency war.  You know the status quo is getting desperate when they resort to outright lying.


Gold Miners Lose $169 Billion as Price Slump Adds ETF Pain

Read the headlines and you'd think the price of gold will tank again, based on the negative headline.

But let's dig deeper.  If the price of gold keeps sinking, miners will go out of business, as extracting gold becomes uneconomic.  Less gold production means shortages intensify--which leads to higher gold prices.

The bullion banks suppressing gold prices (acting as agents of western central banks) only exacerbates physical shortages, as buyers in the East snap up inventory at lower prices, further depleting inventories in the West.  Hence, the largest wealth transfer in the history of the world from the West (Europe, US, Japan) to the East (China, Russia, India, Asia)is occurring right before our eyes.

Thank you Fed for bankrupting America.


Apple reportedly stops placing Mac component orders

This probably explains shares of Apple slumping...upgrade that to CERTAINLY explains it.  Demand is sinking as capex spending is imploding.  That thing kinda happens when world GDP is stalling.


BitFloor Ceases Operations

Surprise, surprise...a BitCoin vendor ceases operations.  Buy gold.  Buy silver.  Everything else is paper--or virtual, which subjects you to currency debasement risk (see every central bank) and counterparty risk ("I owe you, but I'm not paying you").


No Margin, No Problem

My Dear Friends, 

I suspect that what has just occurred is a near collapse of the fractional gold system. The keys are the many years to re-deliver gold to Germany from New York and AMRO’s suspension of its gold program.

No one can deny that paper gold is being manipulated lower while physical gold is in high demand. Investors are not selling tonight but in the less liquid times the same perps are again using high volume offering scare tactics.

What is occurring tonight is the central planner’s answer to the faltering fractional gold system. This will result in higher long term gold prices, not lower.

Like every can kick that has been executed, this is an attempt to camouflage the occurrence which would end the paper gold market. If you have no margin, you have no problem.



CAUGHT ON CAMERA: Fertilizer Plant Explosion Near Waco, Texas


Switzerland To Buy A Stunning 1,000 Tons Of Physical Gold?

The Swiss have a reputation of being staid, conservative bankers.  In fact, they have been the private banker to the world for centuries.

Yet, they are fallible.  Swiss banks revealed private client information to the US, German and French governments in 2009, breaking Swiss banking laws.

The Swiss National Bank has sold gold into the market over the last couple decades.  It is indeed ironic that the Swiss have been net sellers of gold, given 75% of the world's gold refiners are in Switzerland.

And due to a soaring Swiss Franc, the Swiss National Bank has joined the currency war of devaluation in an attempt to stimulate their economy.

These policies are all antithetical to Swiss banking traditions.  This explains their attempts to reverse said policies.


Wednesday, April 17, 2013

US Mint Sells Record 63,500 Ounces Of Gold In One Day



Gold Bears Scarce in India as Rout Lures Buyers to Bazaar


Customers search stores for 'bargain' gold


Rise of the PetroYuan

This author correctly assesses the rise of the petroyuan and the resultant decline of the petrodollar, but he doesn't expand on the net effects to US inflation--and the destruction of USDollar purchasing power. 


Gold prices tipped to continue down


Full List of Bankers at White House Meeting Thursday

April 11, 2013 was one day before the most massive dump in precious metals since 1980.  Coincidence?


How Empires Fall


Apple Cored, Drops Under $400: Lowest Since 2011

Apple has been crushed, but hey, let's talk about gold's demise instead...


EU Common Criminals


Secret IMF report: Hide gold loans and swaps for market manipulation


Confidential IMF report:

Massive Run On Physical Gold & Silver At UBS & Scotiabank


If This Continues The Currencies Will Literally Collapse


Recent Stunning Gold Plunge vs 1970s & What To Expect Next

This suggests if you already own gold, to wait for another leg down before buying more.  On the other hand, if one doesn't have any gold, waiting for another pullback may be an exercise in futility if gold rebounds.


Tuesday, April 16, 2013

The Attack on Gold — Paul Craig Roberts


The Price Smash – Who, What, How and Why?


The Gold Takedown: Another Glimpse into the Central Banking Matrix

This long piece is brilliant in its insight and articulation.


How The Gold Market Was Crashed

This is a must read on how the bullion banks orchestrate a bear raid.


The FDIC Illusion of Insured Bank Deposits

So let me get this straight.  The FDIC is the federal government agency which insures deposits.  There is $25 billion in the FDIC.  Yet, there is $9.2 trillion in deposit accounts in US banks, and $300 trillion in derivatives exposure.  Got it--all is fine.


California Pension May Ask for 50% Boost to Close Gap

If you're a Californian, it is time to consider moving.


India's Response To The Gold Sell Off: A Massive Buying Frenzy

I've always said when US citizens are buying gold, they are not only competing against buyers from emerging economy central banks, they are also competing against 3 billion peasants in Asia.


Embry - Gold & Silver Takedown & The Impact On Investors

Then, when you apply that to the small gold and silver markets where you have relatively tiny physical markets but massive paper markets sitting on top of them, it’s not all that difficult to effect what (the price drop) they did.  But I must confess, having said all of that, I am amazed they have able to pound gold down this far given the physical offtake that is occurring.  You are getting anecdotal evidence that retail outlets are being cleaned out across America.  They are not fooling the real people that know what is going on.

But in the paper market it has been an absolute disaster.  My greatest concern right now is that people who are positioned correctly for what is coming, this financial and economic tsunami, they are being driven from the market by fear.  It’s going to be a tragic mistake.

I wrote a note for our staff on Friday and said, “Do not sell your positions.  This is an orchestrated takedown to encourage you to do just that (sell out).”  I guess what we went through was just about as violent and unpleasant an experience as we’ve had in the whole bull market, which is now over 12 years in duration, but when we look back on this period two or three years from now, I think it will look like a small blip on the chart.

This Gold Slam is a Massive Wealth Transfer from Our Pockets to the Banksbanks


The gold price crash is further evidence of market rigging


Legendary Pierre Lassonde Weighs In On Gold Takedown


Lassonde:  “Eric, I ask you has anything changed today from a month ago?  Has the Fed stopped printing $85 billion a month?  Have the Japanese not started printing $120 billion each month?  Hasn’t the Bank of England hired a new central banker that’s as keen to print money as Bernanke?  Isn’t Europe still in trouble?

So at the end of the day what’s happening is the Japanese are trying to devalue their currency.  The Europeans are also trying desperately to devalue their currency.  Do you think the US will stand by and let the dollar keep going up?  No.  The US will keep depreciating its own currency.

What is the US depreciating against at the end of the day?  There is only one currency you can’t depreciate, it’s gold.  We have seen this type of market volatility in the past.  Yes there are very scary moments, and yes for the average investor they can be gut-wrenching, but as I said earlier, for people who have put some cash aside you are looking at opportunities being served to you on a golden platter.”

This is what I like about the great ones like Lassonde, they never panic.



Gold Market Update


Monday, April 15, 2013

Headline Of The Day


San Fran Fed Blames High California Unempolyment And Rising Poverty On Highly Efficient Workers


Massive Paper Gold Selling Eclipses Annual Mine Production!


Bullion Shortages Develop As Retail Demand Skyrockets


Maguire - LBMA Default Triggered Gold & Silver Takedown


Turk - Gold & Silver Smash, Monetary Train Wreck & Apple


Maguire - “155 Tons Of Paper Gold Sold In Just One Hour!”


Massive $20 Billion Paper Gold Sell Orders Trigger Stop Loss Selling And Unfounded Panic

The key take away message is inventories of physical gold bullion at the COMEX are at all-time lows, yet the spot price continues to plummet, as the bullion banks are selling hundreds of tons of paper gold.  It is clear evidence of manipulation--or price suppression in this case.  That's why buyers should be buying physical bullion and coins--and not levered virtual paper contracts (futures or options) which are merely legal claims.


Sunday, April 14, 2013

Here Is What You Must Know About The Gold & Silver Smash


Tragedy, Panic & The Greatest Short Squeeze In History


Mike Maloney: Today's Low Gold & Silver Prices Are Not Realistic


Winner Takes All: The Super-priority Status of Derivatives


Gold Confidence Shaken

In my Keynote speech to the Sydney Gold Symposium in 2011 I had a target of $1480 for the low of the expected correction. Despite several plunges into the low $1500’s, the price never achieved that $1480 target. The low price for Comex was $1523 and the lowest PM fixing was $1531 in late December 2011.

It bothered me from time to time that gold had not achieved my target. Now the late Friday selloff last week has driven the gold price to a closing level of $1477, finally reaching the target of $1480 set 19 months ago. What remains to be seen is whether this target holds and that the bull market resumes.

The coming weeks should indicate what is happening.

What we need to look for is a swift recovery to above $1500 and an ongoing strong up-move in a truly impulsive manner. The fundamentals for holding gold are as strong as ever. Gold is an insurance against a range of financial disasters that we don’t need to go into now. You do not cancel your fire insurance when you can see fires burning all around you.

Certainly confidence in gold has been shaken and sentiment indicators are at record lows in some cases. This is exactly what one would expect at a major low in the market after a brutal 19 month correction. The conclusion is that factors are now in place which could support a major low in the gold price.

The Long Wave Versus the Printing Press: Another 2008?


Thursday, April 11, 2013

Are Individuals The Property Of The Collective?


Harvard Economist: 'The Crisis Isn't Over in the US or Europe'

Reinhart and Rogoff's "This Time Is Different" is a very good read.  Don't let the fact that they are Harvard economists dissuade you.  They use empirical data to sniff out the truth, which puts them in the extreme minority amongst the status quo and academia.  Unlike their peers, they are not government apologists or propagandist mouthpieces.


Gold- The Rodney Dangerfield Asset of The 21st Century


Dip in Silver Prices Means Higher Premiums for U.S. Silver Coins

It is interesting and enlightening to understand that when paper prices of silver contract, the premiums for physical silver increase.  It's not a stretch to speculate that the silver market is manipulated by the paper pushers.


Pento Likes Gold But Warns A Stock Market Crash Is Coming


Gold, Long a Secure Investment, Loses Its Luster

This is an article in today's New York Times.  It is decidedly anti-gold.  You decide. 


San Diego's Biotech Boom


The Eroding Premium on Truth and Trust


Spanish Home Prices Plunge Most On Record


Q1 PC Shipments Drop By Most Ever


The Stunning Roadmap to $500 Silver & $8,000 Gold

My targets have been $6300 for gold and $400 for silver, based on two independent calculations:  trough to peak valuations, and money supply coverage ratios.  I also applied historical gold-to-silver ratios.

My timeframes--always difficult to pin down, were 2013 - 2015, based on 14-year bull markets in gold, due to the double bottom formed in 1999 and 2001.  With rampant and unprecedented central bank interventions, that time frame could be stretched out.

Kevin Wides' price targets are $8000 and $500 for gold and silver, respectively.  I've seen targets ranging from $2000 to $44,000 for gold.


Wednesday, April 10, 2013

The Golden Ratio: Using Gold To Price Market Data


Fed Releases Names Of Early FOMC Minutes Recipients: Include Employees Of Goldman, Barclays, JPM, Law And PE Firms


The Secret World of Gold

This is airing tomorrow in Canada.


Where Honesty Is The Worst Policy


Which Dominoes Are Next to Fall in Europe?


BitCrash Continues: Down 40% And Dumping

In the "I told you" category, see here and here.


Goldman Sachs Call To Short Gold, Triple Digit Silver & Chaos


House backs privately minted coins as legal tender


Goldman Buying Gold, Selling Treasurys To Muppets Whom It Advises To Do Opposite

Gee, what a surprise...Goldman issues a sell recommendation...and looks to buy (at lower prices) from their own clients.  Priceless.  As I've said many times, Google "head fake."


Meet The Fed Employee Who Leaked The FOMC Minutes

Instead of getting jailed--or at least fired, I'll betcha Mr. Brian Gross will get promoted--or "transferred" to a new post.


Here We Go: Cyprus To Sell €400 Million In Gold, About 75% Of Its Total Holdings, To Finance Part Of Its Bailout


Tuesday, April 9, 2013

Incredibly Important Developments In Gold & Silver Markets


Survivor Of Communist Cuba Defends 2nd Amendment


Gold price suppression: the game goes on


Sinclair: Conflict Erupts As Elites Plan More Wealth Destruction


Bitcoin Passes $200


The Day the Government Seized Americans' Gold - April 5th 1933


The 'it can't happen here' syndrome


Ackman Reprieve: Herbalife Halt Likely Due To Resignation Of Auditor KPMG

Ackman wins the first round in the Herbalife battleground.  Or behind every manipulation is an "independent auditor" enabling the fraud.


Does Government Create Jobs?

Yes and no...or more correctly, Yes, but...


Dow Jones At New All Time Highs - Here's Why

The great disconnect between markets and economic reality widens.  Regression will become a four-letter word.


Kyle Bass Is "Perplexed" At Gold's Low Price


Disability Fund to Be Depleted by 2016


Big Banks and Derivatives: Why Another Financial Crisis Is Inevitable


Comex Gold Inventories Collapse By Largest Amount Ever On Record



Is the IRS Stalking You on Social Media?


Sinclair - The World Is Now On Fire & There Will Be Hell To Pay


Monday, April 8, 2013

UniCredit Says Global Rule Needed to Bail In Big Deposits


Westpac, ANZ secure deal to trade Australian dollar and Chinese Yuan


Embry - This Is Heading Toward A Catastrophic Ending


Trust in Gold Not Bernanke as U.S. States Promote Bullion


Most Expensive Places In The World For A Cheap Date


More Than 101 Million Working Age Americans Do Not Have A Job


Gold Price - Manipulation on the Rise?


Jay Taylor: Canada's BNN doesn't want GATA mentioned on the air


How the US herds the ‘sheep’ away from the gold market


Central banks move into riskier assets

Emerging economy central banks are also allocating more gold into their reserves, which isn't mentioned in this article.


Sunday, April 7, 2013

The birth of a global currency


Dropouts: Discouraged Americans are giving up the job hunt for school, retirement, disability


MSNBC Host Melissa Harris-Perry » All Your Kids Belong To Us

WTF is this idiot talking about?


GAIM 2013: Yen could hit 200 vs. the dollar - Hayman's Bass


Brandon Smith on Bitcoin: "Ignore it..."


30 Years In The Market Part 1: Peter Grandich Discusses His Life and Beliefs


The Country Is Over


Japan stimulus will start currency war, say Chinese economists


Decline And Fall Of The New Rome


Do Western Central Banks Have Any Gold Left??? Part II


Sinclair - Stunning Shift In US Government & Fed Gold Policy


Friday, April 5, 2013

21 Statistics About The Explosive Growth Of Poverty In America That Everyone Should Know


The Assault On Gold — Paul Craig Roberts


Gold and Silver Disaggregated COT Report (DCOT) for April 5

The takeaway message of this Commitments of Traders report is the speculators are short silver and the bullion banks (the smartest guys in the room) are way less short gold than they normally are.  In other words, the dumb money believes precious metals prices will continue to fall, while the smart money believes a bottom is in place.


Art Cashin - Aftermath of Cyprus, Fear, Contagion & Crisis


Spark That Will Send The World Into A Hyperinflationary Spiral


The Financial System May Surprise You Going Forward


Kyle Bass on Japan

A Ton Of Gold Bricks: What Capital Flight Looks Like In Italy


If Japan's "Shock And Awe" QE Happened In The US....

Paul Krugman would approve of Japan's grotesque QE.


Click on Image to Enlarge

MF Global Trustee Speaks: It Was All Corzine's Fault


CEO Of Italy's Largest Bank Says Haircuts Of Uninsured Depositors "Acceptable", Should Become A Template


Is It Beginning? Biggest JGB Price Collapse In Over 10 Years Triggers TSE Circuit Breakers

I've said many times the Japanese government bond market will collapse.  The only question was when.  We have reached that "When."