Change in 2013

What could possibly go wrong?

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Tocqueville Gold Strategy Investor Letter Third Quarter 2013

http://tocqueville.com/insights/tocqueville-gold-investor-letter-3Q13

Royal Canadian Mint 2013 Second Quarter report

"This is the first quarter in the Mint’s history that revenue has exceeded CAN$1 billion. The significant improvement was driven primarily by bullion demand. The fragile stability of the European economy and hesitant recovery in the U.S. combined with the decline in the gold price throughout the quarter to drive demand for the Mint’s bullion products to unprecedented volumes."

"The volume of Gold Maple Leaf (GML) sales increased 144% to 403,000 ounces compared to 165,000 ounces in the same period in 2012.  Sales of Silver Maple Leaf (SML) coins increased to 6.4 million ounces from 4.0 million ounces in the same period last year, which is a 60% increase."

"During the twenty-six weeks (H1) ended June 29, 2013, sales of GML coins increased 123% to 664,000 ounces while sales of SML coins increased 53% to 12.1 million ounces." - Royal Canadian Mint

The Recession That Never Ended: 2008 -2013 (and Counting)

http://charleshughsmith.blogspot.com/2013/08/the-recession-that-never-ended-2008.html

None of these charts is remotely expansionary. We can further question broad-based measures of expansion such as GDP statistically: in economies with high income/wealth inequality such as the U.S., the top 5%'s expansion of income and wealth creates an illusion that the entire workforce is doing better when the opposite is true.

In other words, huge leaps in the income and wealth of the top 5% mask the decline of income and wealth of the bottom 95%. Average all wealth and income and it appears that the economy is expanding to the benefit of all, when it fact only the top 5% have escaped the recession; the recession never ended for the bottom 95%.

An even better way to create an illusory expansion is to simply not measure trends that would reveal a deepening recession.

Is an economy in which people in their 30s cannot find full-time work or afford to buy a house a non-recessionary economy?

The reality is that the recession never ended for 95% of U.S. households, and by many metrics the recession has deepened. The trick is to not measure those metrics; what isn't measured doesn't exist, especially recession.    

Bo Polny: June 28, 2013, Dawn of the Next Gold Bull

I met Bo at the Jim Sinclair event in Los Angeles.  I am not in any way connected with him, nor am I endorsing his service, but he appears to have a good handle on the price movements of gold.  My only concern is he tracks GLD, which may decouple from the price of physical gold at some point.

Bo is calling the June 28 low a major secular bottom for gold.  We shall see.

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Platinum market deficit to hit 844,000oz in 2013 - HSBC

In other words, HSBC analysts don't know what is up or down.  Talk about schizophrenically non-committal.  The fundamentals scream bullishness, but since HSBC is a big naked short in the precious metals, they have to paint a bearish picture.  See JPMorgan.

Long story short:  as long as supply deficits continue, platinum prices will rise long-term, even if short-term volatility is technically manipulated by the perma-shorts, who see the same chart patterns as the rest of the traders.  They will trip the resistance and support levels, cleaning out the weak hands.

They correctly indicate that the growth of platinum ETF's are short-term bullish for platinum prices, but as we've found with gold and silver, the ETF's are not 100% backed by physical inventory, and are ultimately paper shorting vehicles for the bullion banks, acting as agents for the Fed, Bank of England, and ECB.  Paper is sold on liquidation, but no physical delivery is taken--unless of course, you're George Soros who owns at least 100,000 shares.  hashtag fractional reserve ponzi scheme

http://www.mineweb.com/mineweb/content/en/mineweb-political-economy?oid=194402&sn=Detail

Silver Eagle Sales Surge To All-Time Record In January

The 3% of American gold bugs is growing in number.  Asians are already all in.  This can only mean higher prices, as the sleepy-eyed masses finally wake up.  It will take time, but markets follow thermodynamic laws.  Those who studied Physics understand entropy:

entropy - a process of degradation or running down or a trend to disorder

For those who remember chemistry, the boiling point of water is 100 degrees Celsius.  Things get really hot at 99.9 Celsius, even if they appear calm on the surface.  But once 100.0 Celsius is breached, all hell breaks loose.

Gold and silver will reach their tipping point, or critical mass, when the masses figure out they've been duped by a paper ponzi scheme.  At that tipping point, precious metals will reach their escape velocity, much like a rocket escapes earth's atmosphere and shoots to the moon (to borrow another Physics metaphor).

http://www.zerohedge.com/news/2013-01-29/silver-eagle-sales-surge-all-time-record-january

Who’s Been Naughty Or Nice & What To Expect In 2013

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/12/23_Whos_Been_Naughty_Or_Nice_%26_What_To_Expect_In_2013.html