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04.24.14- My Back and Forth
I agree with your premise totally but remain baffled by how the PTB are able to access enough physical silver worldwide to meet demand at such a remarkably depressed price. I was talking to Eric Sprott about it yesterday and he can't understand how they're doing it. The world experts Ted Butler and David Morgan are at a loss also. Any ideas on your part? Best, John Read More |
Silver Up & S&P Down
Examine the graph below of Silver versus the Silver to S&P ratio. It tells me the ratio has returned to levels seen in 2008 and that the ratio follows the price of silver. This is interesting but not that helpful. Now examine the second graph in which the same ratio is plotted against the 14 month Relative Strength Index of the ratio. The RSI is a timing indicator that ranges between 0 – 100 and indicates buy zones when the indicator is low and sell zones when the RSI is high. Currently the RSI of the index is about 23 – quite low and indicating that the silver to S&P ratio should increase from here. Either the silver price should go up or the S&P should come down, or more likely, both will occur. Read More |
04.22.14- Silver Continues To Drain From The Shanghai Futures Exchange
Actually, this is the lowest level of silver inventories since the exchange started building its silver stocks in August, 2012. In my article, Large Decline Of Shanghai & Comex Silver Stocks, I reported that inventories at both exchanges fell significantly since the beginning of March. Read More |
04.21.14- The Secret World of Gold |
04.19.14- Another Weekend Rant:
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04.18.14- David Morgan Interview on Silver Market, Silver Price Manipulation and the Coming Global Monetary Reset
Fabrice Drouin Ristori : Mr. Morgan, thank you for this interview. You've specialized in analyzing the silver price for a long time, and understanding how and why the price of silver evolves with such volatility takes time and research. Let's start with the basics : Could you give us an idea of the size of the annual worldwide production of physical silver ? Read More |
04.17.14- Conspiracy Fact Versus Conspiracy Theory
The mainstream is on an academically-driven mission to politicize conspiracy theories and lump them all into the same category. While gold and silver manipulation is an ancient conspiracy fact, eyes are wide shut to the general awareness in the face of one revelation after another. The news cycle is filled with a carefully crafted digestion of tightly controlled sound bites that are presented with no lack of drama, glitter, and spotlights. The mainstream media is perfectly positioned to make theater of the issues that remain esoteric and out of reach. The further the issue is from the majority's perception, the more black and white will be the acceptance. Belief is emotional, politically framed. Read More |
04.16.14- US Is an Oligarchy Not a Democracy, says Scientific Study
In America, money talks... and democracy dies under its crushing weight. A study, to appear in the Fall 2014 issue of the academic journal Perspectives on Politics, finds that the U.S. is no democracy, but instead an oligarchy, meaning profoundly corrupt, so that the answer to the study’s opening question, "Who governs? Who really rules?" in this country, is: Read More |
04.15.14- Silver Fundamentals from an Historian's Perspective
He sees silver fundamentals from the perspective of a historian and as an astute observer of present conditions. He studies the drivers of the silver market, supply, demand, mining, inflation, investment sentiment, central bank bond monetization policies, and politics. What does he think?
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04.14.14- Silver being left behind in latest gold price surge – but don't despair!
Silver investors will have been a little disappointed by the metal’s performance vis-a-vis the gold price following the latter’s gains after the release of the latest U.S. FOMC meeting minutes. The minutes suggested that the low interest rate regime may well continue longer than expected and resulted in a major boost to the stock market and a significant uptick in the gold price. But it had rather less impact on silver which initially remained stuck below the $20 mark, although this morning’s trade has at last see it move up above this mark. Perhaps European investors are less pessimistic about silver’s investment credentials. Read More |
04.12.14- 2014 Coud Be A Yawner; Be Prepared For A Weekend Surprise
What is likely to cause a sharp price reversal to the upside for gold and silver? If both were allowed to simply adjust to inflation, you would see a fairly substantial rally. Given that will not be the case, what will be a/the catalyst for a precious metal [PM] change in trend? Could it be enormous purchases of whatever-is-available physical gold by countries like China and India? No. That has been in the works and a known fact for a few years now, and gold continues to languish near recent lows. Read More |
04.11.14- Prepare For a Bull Market to Shock Even the Most Ardent Goldbugs
Then, at the noon London silver fix, the gold price got sold down another five bucks or so---and then didn't do much until the Fed minutes were released at 2 p.m. EDT. The subsequent price spike ran into a not-for-profit seller within 30 minutes---and that was pretty much it for the remainder of the day. Read More |
04.10.14- Real U.S. Silver Money Would Consume Nearly Half Of Total Mine Supply 
The U.S. Treasury would consume nearly half of total mine supply if U.S coins contained silver. Prior to 1965, the U.S. Mint included silver in its coinage. The U.S. dime, quarter and half-dollar consisted of 90% silver. However, today they are nothing more than base metal slugs. If we look at the table below, the U.S. Mint produced 10.6 billion coins in 2013: The U.S. Mint shipped 1.9 billion dimes and 1.06 billion quarters in 2013. According to the U.S. Mint Annual Report, it cost $75 million to produce these dimes and $97 million for the quarters (based on Cost of Goods), for a total of $172 million in 2013. Read More |
04.09.14- This Past Week in Market Madness -
Even Janet Yellen is showing her frustration. In her first public speech as Federal Reserve Chair, she signaled that the Fed will continue to be accommodative for the foreseeable future. Not only is she not backing off the taper, she’ll keep interest rates near zero until unemployment moves down further. So the cheap money and continued illusion of wealth will keep coming until unemployment reaches 5.6% or lower, the level that the Fed currently views as a “healthy”. We’re sure it will work eventually… (What was Einstein’s definition of insanity again?) Read More |
04.08.14- Wizardry of the MSM
No doubt, Tolkein's research was first hand, engaged in the war that surrounded him. His creative spirit found expression of the unutterable things in his soul. But what did Tolkein wish for his readers to learn? Was his novel simply for entertainment? Read More |
04.07.14- Silver - Set for A Shiny Future?
“The future of silver in industrial applications is actually quite bright”, explained DiRienzo. “In fact, if you compare developments since 2003, when the photographic silver market was still at a high, with 2012 you will see that – while the market for photographic silver declined from 193 million ounces to 57.8, the market for industrial uses went up from 368 milion ounces to 465 million ounces. At the same time, the annual average silver price went up from $US 4.87 / oz to $US 31.15 / oz, its second highest average. So, regardless of what happened to photographic silver, the silver price has increased, and industrial applications have increased.” Read More |
04.05.14- Power Of Elites More Important Than China's Gold
For the past several weeks, we have shifted focus on what we see as the truer “story” of the PMs market, [Precious Metals]. Some may think we have gone off on an unrelated tangent talking about the elites and fiat currency. The PM community has maintained a relentless focus on how much gold is being imported by China, the diminishing supply of physical gold at COMEX and LBMA, and a host of other popular statistics that support what seems to be important for gold and silver adherents in their beliefs that should ultimately lead to higher prices. Read More |
04.04.14- Gold Price Stealth Rally 2014
In spite of this overwhelming negative sentiment, gold is experiencing a stealth rally as one of the best performing assets of the year. Let’s look at some important metrics of the most under-valued sector in this market. Read More |
04.03.14- Debt Makes You Dumb, Japanese Edition
Pretend, for example, that you are Japan. You borrow huge amounts of money year after year to keep the zombie banks and builders created by an early-1990s asset bubble from imploding and decimating the rest of the economy. Your annual deficits are huge, your accumulated debt, as a percentage of GDP, dwarfs that of any other major country. And your population is aging rapidly, so you have at best a decade to start generating massive surpluses to pay retirees what they’ve been promised. Read More |
04.02.14- Gold versus Silver
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04.01.14- Inflation Is Coming, What to Do - NOW
But is this just a correction, or will gold keep dropping from here? In the very near term, no one can say, but Jeff Clark did warn in our dispatch three weeks ago that March tends to be the "worst" month of the year for gold—or, again, the best, if you're buying. We remain convinced that in any other time frame than the immediate future, gold has only one way to go: up. Why? Many reasons, but worldwide monetary debasement and our projections of coming inflation are primary ones. Read More |
03.31.14- The Dollar Cannot Be Devalued and Suicidal Bankers The last dollar devaluation took place under President Roosevelt in 1934, when from being worth 1/20.67th of an ounce of gold in 1933, the dollar was devalued to 1/35th of an ounce of gold. The last opportunity for devaluing the dollar took place in August 1971, when the dollar was still pegged at 1/35th of an ounce of gold. Nixon took the advice of Milton Friedman and made the worst mistake in history; Nixon did not devalue the dollar as he should have done, but simply took the US off the gold standard, such as it was, and thence forth the US refused to redeem dollars held by Central Banks around the world at any price. Read More |
03.29.14- Why Gold Is Falling & A Gold Forecast You May Not Like Long story short, the prices of bonds look as though they are about to rally once again. Mounting fears of a stock market correction has money flowing into bonds which in turn will drive interest yields lower yet gain. But the BIG PICTURE of what he FED said the other week about how they plan to raise rates in 2015 and cut QE down to $55 billion per month hurts the long term outlook for gold. This news may not sound that important, it actually is and undermines the price of miners, silver and gold in a big way. Find out why gold is falling and the threat that could trigger a much larger meltdown in the long run with my gold forecast video. Read More |
03.28.14- April Fools' Drop Dead Date For The Volcker Rule – What It Might Mean For Gold
In conjunction with the implementation of the Rule, there has been an exodus of talent from the banks. The latest heavyweight departure came yesterday when Jamie Dimon's closest aide, James Cavanaugh, left JP Morgan for the Carlyle Group, a private equity firm. Cavanaugh was considered Dimon's heir apparent. Says this morning's NYTimes, "Mr. Cavanagh's decision to give up a chance at eventually running JPMorgan signals how running a large bank has become less attractive, considering the regulatory hurdles and heightened scrutiny that have dogged Wall Street since the aftermath of the financial crisis." Read More |
03.27.14- Should I bet the house on silver?
What happened is I received notice from a tenant of mine informing me he is not renewing his lease when it expires at the end of May. As a landlord, I now have to decide if I want to try recruit another rental tenant or go ahead and put the house on the market and hopefully sell it. Finding a buyer might take months and would also require me taking out a small loan to repair a wood rot issue. Read More |
03.26.14- Dollar Value Could Suffer Instant Change-David Morgan
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03.25.14- China HK gold imports accelerating
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03.24.14- The truth is out: money is just an IOU, and the banks are rolling in it
Back in the 1930s, Henry Ford is supposed to have remarked that it was a good thing that most Americans didn't know how banking really works, because if they did, "there'd be a revolution before tomorrow morning". Read More |
03.22.14- Suing JPMorgan and the COMEX
I've had some recent conversations with attorneys who were considering class-action lawsuits regarding a gold price manipulation stemming from reports about the London Gold Fix. I told them that while there is no doubt that gold and, particularly, silver are manipulated in price, I didn't see how the manipulation stemmed from the London Fix. I wished them well and hoped that they may prevail (the enemy of my enemy is my friend), because you never know – if the lawyers dig deep enough they might find the real source of the gold and silver manipulation, namely, the COMEX (owned by the CME Group) and JPMorgan. Read More |
03.21.14- Implications of the Ukrainian situation for gold
There is a fascinating story from Robert Peston, the BBC's business editor about his interview with Hank Paulson, who was the US treasury secretary at the time of the Lehman crisis. Paulson said that he was told by the Chinese that they had a message from the Russians suggesting they club together to drive down the prices of Fannie and Freddie "to maximise the turmoil on Wall Street". The Chinese declined, but in doing so they made sure the Treasury was aware that China and Russia know that between them they have the power to break western capital markets. Read More |
03.20.14- SWOT Analysis: We're Headed for a Golden Cross
The results are categorized in terms of strengths, weaknesses, opportunities and threats. We believe this SWOT model helps investors make informed decisions about their gold and gold stock investments. For the week beginning March 10, here is the SWOT for the gold market. Read More |
03.19.14- Is “Dr. Copper” Foreshadowing A Stock Market Crash Just Like It Did In 2008?
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03. 18.14- Can Gold And Interest Rates Move Higher At The Same Time?
Last year a very insightful and interesting working paper was published in the webpages of the National Bureau of Economic Research by Claude Erb and Campbell Harvey. The paper is mostly about gold being perceived as either a safe haven or an inflation hedge. After a while it sparked various discussions about gold not being what it is thought of. And rightly so. As we have already mentioned many times in the Market Overviews, gold is not historically an inflation hedge device which will protect you against possible inflation. Of course the special case for the gold price could be a hyperinflationary scenario. Read More |
03.17.14- Technical chart shows silver price about to leap towards $100 an ounce
The latest technical chart from guru Clive Maund establishes a clear upward bounce towards $100 an ounce silver is in prospect. He comments: ‘On this chart we see that, despite the severity of the reaction of the past three years, silver never broke down from its long-term uptrend, which now looks set to reassert itself with a vengeance after a fine base pattern has formed at a classic juncture, in a zone of strong support just above the support line of the long-term uptrend. Read More |
03.15.14- What's Happening in the Copper Market Should Alarm You…
Why should this matter? Most investors and analysts are placing bets that economic growth is about to re-accelerate globally. Never before has the world been so interlinked, so we must pay attention to what is occurring internationally. Copper is an important part of the potential for economic growth, not just because it is used in building and construction, but because it is also a major factor in the Chinese lending market, which is now showing severe strain leading to a potential debt crisis. Read More |
03.13.14- Gold: 14 Years & Three Patterns
Was that the end of the collapse, or is there more downside coming in gold prices? Bearish Scenario: Listen to the banks who are forecasting weak prices in 2014 and thereafter. "Nothing to see here folks, the dollar has weakened drastically since 1971, gold sells for 30 times its 1971 price, but it's all good. Just move on and pretend… Gold will drop below $1000 before you can say 2016 elections…" I'm not a fan of:
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03.12.14- Where Silver Wheaton Saves Junior Gold Miners & Massively Profits by It
Yet mining majors like Barrick Gold (NYSE: ABX ) and Newmont Mining (NYSE: NEM ) have a set of tools to work with that are unavailable to lesser operations particularly those of rival junior miners. Barrick was able to target some $2 billion in additional costs and capital expenditure cuts last September and previously cut its dividend by 75% to save money. Newmont lowered its capex budget all throughout 2013 and last month said it expected to reduce this year's budget by another 25%. Read More |
03.11.14- Gold is libertarian, cyberspace isn't
The disappearance of the Bitcoin trading website Mt. Gox caused consternation among younger libertarians, who had seen cryptocurrencies like Bitcoin as a vital weapon in the struggle against Big Government. For those like myself with almost as much suspicion of the tech sector as I have of Washington, it caused a smile of grim satisfaction. In reality, Bitcoin represents the world of Mikhail Bakunin more than that of Adam Smith; for true libertarians, it fails on a number of criteria that sound money must fulfil. I wrote about Bitcoin in December in a piece "Mississippi Bitcoin" comparing it to John Law's 1718 Mississippi Scheme (another radical new monetary invention). An open source "crypto-currency" devised in 2009, Bitcoins are created by solving algorithmic problems that get progressively more difficult, with a finite overall all-time limit of 21 million. Read More |
03.10.14- Physical Silver Buying Dynamics
It looks like the official sources grossly underestimated the amount of Indian silver buying in 2013. When the Indian Government put restrictions on gold imports in 2013, their citizens switched to buying silver. Thomson Reuters GFMS estimated that total Indian silver imports would be 5,200-5,400 metric tons in 2013. However, Koos Jansen at InGoldWeTrust, recently published an article stated that the Indians actually imported 6,125 metric tons of silver in 2013. Koos located the total silver import figures from India's customs department DGCIS. The 2012 & 2013 figures were taken from Koos Jansen’s site and data for 2007-2011 are from Thomson Reuters GFMS. Read More |
03.08.14- Market Activity Will Always Trump News/Events/Fundamentals
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03.07.14- Intensifying Currency War Consequences
Major Fiat Currency Printers around the World are devaluing their currencies by "printing" ostensibly in order to bolster their economies. Read More
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03.06.14- Of Paper Money, Digital Money And Gold
"Digital money" is accepted world-wide. There exists only a remnant of fiat paper money which is increasingly and deliberately made more difficult to use and transport physically. The reason being, that digital transactions leave a trail of information which governments use to control the behavior of their subjects (we can hardly call them "citizens" any longer) whereas citizens using paper money in their dealings leave no trail. Read More
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03.05.14- The True Prices of Gold
It's an old question, why is gold money? Why, in every society, ancient and modern, is gold the default store of wealth? Who are these apparently omnipotent people who say it's valuable and make it stick? And if gold is the "safety" everybody flees to in troubled times, why do so many insiders insist its price is to too low? Read More
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03.04.14- "Silver – |
03.03.14- Negative GOFO and Rising Gold Prices
As most are aware, the LBMA publishes Gold Forward Offered Rates (GOFO) every day. You can find all daily updates and 25 years of GOFO history by clicking this link: http://www.lbma.org.uk/pages/?page_id=55&title=gold_forwards Our friend, Denver Dave, published a concise, easy-to-understand explanation of GOFO back in July. I encourage you to read it before you go further but, in summary, it goes something like this: Read More |
03.01.14- Silver Analog
Often times you can get what is called an ‘analog’, which simply means a representation of data that is similar when compared to data of a different origin. Coffee and Silver are the two sets of data of different origin that are being compared in the chart below, from year 2001~2014, with coffee represented by the orange line and silver by the black line. The coffee price scale is on the left side of the chart and silver on the right. Read More |
02.28.14- Gold Price Explodes In Ukrainian Currency
Recently, in the heat of the emerging market crisis, we wrote Gold Price Exploding In Emerging Markets. The charts in the article show the explosive price action in local currencies of the emerging markets that were hit hardest. That’s the insurance policy in action. Read More |
02.27.14- Transcript of Anglo Far East's interview with Jim Rickards on January 14, 2014.
Interview with Jim Rickards on Gold during massive deflation, gold is positioned for a huge technical rally, tapering into weakness, the new FED Chairwomans twin pillars of Optimal Control Theory and Communications Policy, the FED's intended role versus what it does now, the incredible leverage employed on the FED's balance sheet, and how most financial models today are completely wrong. Read More |
02.25.14- Silver Linings Playbook
Because as you will see below, there's a great deal of 'misplaced inflation' sitting in the stock market just waiting to find a home in silver. Why would this happen? And why silver? At some point in the not too distant future, American's are going to discover that unlike their favorite movie, or any other dream in which they may exist, there is no silver lining for both the economy and the stock market, as their stories are false and flawed, and they will be looking for a new home for their savings, where silver will 'fit this bill' for many. Read More |
02.24.14- Silver Pushing To New Highs
Currently, Silver is just shy of the 22 dollar mark, can it break through and push higher? I certainly think so. The reason behind this has been the bullish nature of precious metals over the past few weeks. Gold, Silver and Platinum have all seen a breakdown of the bearish trend lines they were stuck in, and we are now seeing a push higher from metals on the back of Dollar weakness. Read More |
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02.21.14- Watch As Precious Metals & Energy Prices Go Crazy As Things Fall Apart
Even though precious metal investors are more educated and better prepared than the typical American as it pertains to the upcoming economic collapse, I still believe a good percentage fail to grasp that the energy situation is the root cause of our problems. I would guarantee that most precious metals investors know the price of the metals are up substantially since the beginning of the year, but how many realize the price of natural gas is up twice as much silver and three times as much as gold? Read More |
02.20.14- Silver Has More Potential Than Gold |
02.19.14- Silver Stackers: Measure your Stash like a Miner
Canadian National Instrument 43-101, is a rule developed by the Canadian Securities Administrators governing the process of disclosing to the public, scientific and technical information about mining projects. The NI 43-101 report is presented (usually within the context of a company News Release) by a "Qualified Person" – by a (presumably) competent licensed geoscientist, who often works for the company in question and is assumed to be skilled in analyzing the mineralization under review. Read More |
02.18.14- Taking Stock Of Gold Stocks – ANV, NGD, AUY, FCX, NEM, AEX, GDX
We often see comments to the effect of interest in gold miner stocks as a play on gold. Ten days ago, we did an analysis of silver-related stocks, Taking Stock of Silver Stocks, looking at SLW, PAAS, CDE, AG, SSRI, and HL. While many view mining companies as a proxy for gold, they are not necessarily so. There are many influences that can affect the performance of a mining stock that are unrelated to the performance of the underlying physical: management, cost of mining, depletion, labor issues, added debt, etc. Read More |
02.17.14- Silver Surges By 6% In Shanghai - Longest Run Of Gains Since 1968
Gold climbed $16.90 or 1.3% Friday to $1,318.60/oz. Silver rose $0.94 or 4.58% at $21.55/oz. Gold and silver were both up for the week at 4.06% and 7.09%. Silver futures in Shanghai surged by 6% - the daily exchange limit. Silver for June delivery in Shanghai climbed to 4,440 yuan/kg, highest price for a most active contract since October 31. Read More |
02.15.14- Silver And Gold…
This is fueled, in large part, by the possibility which remains that a short covering rally in silver sparked in the speculative category could and eventually will spill over into the commercial category. This is where JPM and 3 other large bullion banks maintain there outlandish and illegal, though un-prosecutable, net short positions. Read More |
02.14.14- Silver Speculators: Keep Your Eyes On The Prize
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02.13.14- Silver futures contracts soar 354% in January at Dubai Exchange
The Dubai Gold and Commodities Exchange (DGCX) has set its sights on growing its role as a global financial hub and has recorded a thumping start to 2014, with a total of 1,043,200 contracts traded in January, an increase of 36% over December 2013. Read More |
02.12.14- Silver to 100 Dollars within 'Reasonable Timeframe:' John Embry
Hello again John. The last time we talked, you said gold and silver were at 'historic undervaluation.' What's on your mind now? Well, my main concern today is that the economy is really much worse than most people are prepared to admit. And this will have significant ramifications on various markets. Obviously, the one market we are particularly interested in is gold and silver. Both of them, as I said before, are considerably undervalued. Read More |
02.11.14- The Birth of the New Third World Dollar
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02.10.14- Thinking Of Getting Some Silver? (And What To Do With It?)
At first blush such a question uttered here in North America's greatest silver-mining district might be as silly as someone from Detroit asking what a car is. But perhaps not. Silver-mining isn't taught in our local schools anymore, and probably not a single schoolteacher within 600 miles who could tell you the difference between the Fabian Society and Austrian School thinking on monetary policy. Read More |
02.08.14- Interview with Jim Rickards: Gold Set for Massive Rally
Epoch Times: Mr. Rickards, please tell us about your new book, "The Death of Money," coming out in April. James Rickards: It's both a prequel and a sequel to "Currency Wars," my first book. It's a prequel in a sense that "Currency Wars" opened with two chapters that describe a financial war game that took place in a top-secret weapons laboratory in 2009. That was the first time the Pentagon had ever done a war game where the only weapons could be financial instruments—stocks, bonds, derivatives, currencies. Read More |
02.07.14- The Farce Is Complete: Blythe Masters Joining CFTC
We thought today's newsflow and "market action" ranked pretty high on the absurd surrealism scale. And then we saw this. BLYTHE MASTERS TO JOIN CFTC GLOBAL MARKETS COMMITTEE JPMORGAN'S BLYTHE MASTERS TO JOIN CFTC ADVISORY COMMITTEE CFTC SPOKESMAN COMMENTS ON BLYTHE MASTERS JOINING COMMITTEE That's right - you read it correct: "Blythe Masters, head of JPMorgan Chase & Co.'s commodities division, is joining an advisory committee of the U.S. Commodity Futures Trading Commission, said Steve Adamske, a spokesman for the regulator. Masters, 44, was invited by acting Chairman Mark Wetjen to sit on a global markets committee at the Washington-based regulator of futures and swaps. Read More |
02.06.14- Gold Gains in New York as Silver Extends Best Run Since August 
Gold rose toward the highest in more than a week in New York as investors weighed the outlook for U.S. stimulus amid concern economic growth may slow. Silver gained in the longest advance since August. Gold advanced and silver reached the highest in more than two weeks yesterday after ADP Research Institute data showed weaker-than-forecast jobs growth in the U.S., fueling speculation government data tomorrow will trail estimates. The dollar was little changed versus a basket of 10 major currencies after falling to a one-week low yesterday. Read More |
02.05.14- Jim Bruce: The Siren Song of 'Money For Nothing' |
02.04.14- JP Morgan Holds Highest Amount Of Physical Silver In History 
While everyone is focused on the massive outflows in COMEX registered gold inventories and the gold ETF, GLD, it seems that an important evolution in silver is passing unnoticed. In what follows, Ted Butler, precious metals analyst specialized in COT analysis, reveals a remarkable insight in the physical silver market. Butler's calculations show that JPMorgan (JPM) has piled up the largest holding of physical silver in modern world. Since the silver price peak in May 2011, the bank has accumulated between 100 and 200 million ounces of physical silver (if not more). The equivalent in metric tonnes is between 3,110 and 6,220 tonnes. To put that number in perspective, it surpasses the amounts held by the Hunt Brothers or Warren Buffett (in his investment company Berkshire Hathaway). Read More |
02.03.14- Now Is the Time to Buy Gold 
Gold has been in a downturn for more than two years now, resulting in the lowest investor sentiment in many years. Hardcore goldbugs find no explanation in the big picture financial numbers of government deficits and money creation, which should be supportive to gold. I have an explanation for why gold has been down—and why that is about to reverse itself. I'm convinced that now is the best time to invest in gold again. If you've been a Casey reader for any length of time, you know why gold is a good long-term investment: central banks are expanding paper money to accommodate the deficits of profligate governments—but they can't print gold. Since the beginning of the credit crisis, the world's central banks have "invented" $10 trillion worth of new currencies. They are buying up government debt to drive interest rates down, to keep countries afloat. The best they can do is buy time, however, because creating even more debt does not solve a credit crisis. Read More |
02.01.14- Silver's Rally Could Mean Another 1,000% Run 
Let's face it, 2013 was rough on silver. The precious metal started out the year at $31, and ended at $19.50, continuing an overall slump dating back roughly to mid-2011. That, however, obscures a massive run, like gold, that silver embarked on in 2001 when it was near $4, eventually topping out around $49 in April 2011. At its peak it generated a return of 1,091%. Heading into 2014, I've pinpointed a number of key drivers - some often missed - that say silver may be poised for another spectacular run... Read More |
01.31.14- Why is the Fed tapering? 
On January 17, 2014, we explained "The Hows and Whys of Gold Price Manipulation." In former times, the rise in the gold price was held down by central banks selling gold or leasing gold to bullion dealers who sold the gold. The supply added in this way to the market absorbed some of the demand, thus holding down the rise in the gold price. As the supply of physical gold on hand diminished, increasingly recourse was taken to selling gold short in the paper futures market. We illustrated a recent episode in our article. Below we illustrate the uncovered short-selling that took the gold price down today (January 30, 2014). Read More |
01.30.14- Gold Stocks Are About To Create A Whole New Class Of Millionaires 
Bear markets always end. Has this one? Evidence is mounting that the bottom for gold may be in. While there's still risk, there's a new air of bullishness in the industry, something we haven't seen in over two years. An ever-growing number of industry insiders and investment analysts believe the downturn has come to a close. If that's true, it has immediate and critical implications for investors. Doug Casey told me last week: "In my lifetime, the best time to have bought gold was 1971, at $35; it ran to over $800 by 1980. In 2001, gold was $250: in real terms even cheaper than in 1971. It ran to over $1,900 in 2011. Read More |
01.29.14- 2014: The Year The U.S. Shale Gas Bubble Bursts & The Boom For Precious Metals? 
Place your bets wisely because 2014 may turn out to be quite the pivotal year for the markets. As MSM and Wall Street continue to push the hype regarding the Great U.S. Shale Boom, serious cracks are beginning to appear in the natural gas market. The forecast by the Shale Energy Industry that the U.S. will be able to grow its natural gas production for a decade at a price below $4.50 MMBtu, seems to be losing credibility as the price of natural gas has already shot above the $5 level. Here we can see that in the first few weeks of 2014, the price of natural gas reached $5.20 MMBtu (million British thermal units – standard market trading unit). Read More |
01.28.14- 3 Friendly Reminders Why I Buy Silver 
After a week like last week, people tend to lend a little bit more credence to analysts who recommended buying gold in the midst of a bull market and a gold and silver down trend. I know this as a permanent bull for gold, silver, and other nonrenewable commodity metals - I'm rarely taken seriously as I state my case for buying gold while watching it down over 30% for the year. But, my view on the metal is a view with a long term focus. My last article on gold came in the face of the Goldman Sachs downgrade, where I advised that the downgrade should be seen as a buying opportunity for those looking to invest long-term. Read More |
01.27.14- How Long Can Gold Prices Be Held Down – Supply Factors 
On the supply side, we note that newly mined gold supply in 2013 was around 2,800 tonnes [final figures yet to be published] and scrap gold was around 1,400 tonnes, before U.S. sales [which were around 1,200 tonnes in 2013]. That totaled 5,400 tonnes. With prices at $1,200 there is little incentive for scrap sellers to sell for profit. So these supplies in 2014 are expected to drop substantially, until prices rise back to much higher levels. To sustain supply levels of gold miners need to continuously explore and start up new ventures. From discovery to production takes in excess of 5 years. What is the condition of future supplies? Read More |
01.25.14- Gold Bottoming 
Gold is bottoming, showing incredible resilience over the past 7 months. After suffering an epic plunge in last year’s second quarter, gold has held its ground ever since. This is despite still facing the same howling headwinds that forced that extraordinary selloff. Gold has found strong support and carved a massive double bottom. Thus 2013’s gold super-storm has passed, and a mighty new upleg is dawning. Obviously last year was exceedingly miserable for gold. This metal plunged 27.9%, its worst calendar-year performance in 32 years! When something hasn’t been witnessed for a third of a century, there is no doubt it is rare and extreme. But the whole year masks the real story, the second quarter. The gold price plummeted an astounding 22.8% in 2013’s Q2. That was its worst calendar quarter in 93 years! Read More |
01.24.14- Billionaire Hugo Salinas Price: Everything in Our Modern World is a Lie 
The Inteligencia Financiera Global blog (Global Financial Intelligence Blog) is honored to present an exclusive interview with billionaire entrepreneur Hugo Salinas Price. We are sure our readers from around the world will enjoy it.Mr. Salinas, thank you for accepting this interview. As many people know, you have been an advocate for liberty, free markets and honest money among other topics. You are started the project-proposal of monetizing the pure silver coin in Mexico but, can your proposal be implemented in any country? What does it take to do that? Could gold be monetized the same way? Read More |
01.23.14- Why You Must Research Silver Miners Carefully 
Now is an excellent time to consider purchasing shares in quality silver mining companies. The price of silver is down nearly 60 percent from its 2011 peak of $48/ounce, and silver mining shares are down as much if not more. Many silver mining stocks are pricing in a disaster because these companies simply cannot turn a profit at $20/ounce silver. But because of this, the price of silver has to rise or else there will be no profit incentive to produce this vital commodity. However, before buying shares in a company because it calls itself a silver miner or has the word "silver" in its name, do some research first — you may not be getting as much exposure to silver as you expect! The fact of the matter is that silver is, more often than not, mined as a by-product of other metals (e.g. copper, nickel, gold, zinc, and lead), and "primary" silver mines can often get just 60 percent to 70 percent of their revenues from silver. Read More |
01.22.14- Sprott CIS: "This Might Be One of the Great Trades of All Time" 
John Embry is an investment strategist at Sprott Asset Management LP and works alongside Rick Rule and Eric Sprott. Mr. Embry oversaw $5 billion in funds at RBC Global Investment Management before Sprott, and he is a well-known gold and silver bull and considered an influential thought leader on precious metals. Hello John, what's on your mind when it comes to gold and silver right now? Embry: Well, I am really fascinated with the gold and silver markets for a simple reason: I believe that the fundamentals that should be driving the price couldn't be better. At the same time, because the price of both gold and silver have been driven down relentlessly—going on two and a half years now for gold—the degree of undervaluation against any method that I look at is approaching historic records. Read More |
01.21.14- Precious Metals Are About To Swap Trends With The Stock Market 
The two trend reversals everyone has been waiting a year for are about to take place, but they have not yet started. While I do think 2014 is the year we see gold, silver, miners and many other commodities rally, it is important to follow the trend and wait for a reversal to form before getting overly excited and long commodities. Each time we see the daily chart form some type of bullish pattern gold market traders become instantly bullish. And each time this happens they get another reality check about their trading technique of trying to pick a bottom. Read More |
01.20.14- U.S. Gold Gone |
01.18.14- Gold – Disconnect Between Fundamentals And Price. Perception Rules. 
What will it take to turn the gold market around? One would think it would be obvious that fundamentals are not the answer, while so many believe that fundamentals rule. We are reminded of the fundamentalists, especially “value investors” whose financial world was literally turned upside down when the stock market crashed in 2008. While “value” and “fundamentals” were considered the economic bedrock of the stock market, it turns out that everything is really steeped in perception, for they changed dramatically. Read More |
01.17.14- Silver Prices When Monetary Demand Trumps Industrial Demand 
It is crystal clear to anyone willing to go a few steps beyond the headlines that massive intervention and ignorance of risk act as massive governors to progress, real economic growth and natural capital formation. Nevertheless, what is less clear is how these failures will manifest in precious metals - especially the silver market. The catalyst for much higher prices will be of a monetary, rather than an industrial, demand-led series of events. Read More |
01.16.14- ETF Chart of the Day:
SLV actually saw an uptick in options activity yesterday which caught our eye, but today we would like to focus on Silver Miners as opposed to the physical metal itself. SIL (Global X Silver Miners, Expense Ratio 0.65%) is the largest ETF in this space with about $203 million in assets under management, averaging about 163,000 shares a day, as the other two funds in the space are considerably smaller in size (SLVP (iShares MSCI Global Silver Miners, Expense Ratio 0.39%, has $7.79 million in assets under management while the fledgling SILJ (PureFunds ISE Junior Silver (Small Cap Miners/Explorers), Expense Ratio 0.69%) only has $1.5 million in AUM, which looks like it may be seed capital. Read More |
01.15.14- Gold And Silver Outlook 2014
This is an excerpt from David Morgan’s latest update to his subscribers. In it, he describes his gold 2014 forecast. David Morgan is the editor of the highly respected The Morgan Report which offers 16 specialized reports for free for new subscribers, as well as a free trial of one month (more info here). It is always difficult to forecast a year out what we expect from gold, silver and especially the mining shares. As many of our more recent interviews have discussed we do think the bottom has been obtained in silver (June 28th 2013) and gold may test the $1179 level but for all practical purposes gold has made its bottom as well. We certainly are aware that many of the major banks are forecasting gold to continue to move down in 2014 and reach levels of one-thousand dollars per ounce or even lower. In our view this is fear mongering and designed to keep the majority of investors away from the precious metals but additionally shake out the last of the weak hands by giving up their positions. Read More |
01.14.14- Is Now The Time To 
According to a famous trader of the past, W. D. Gann: "Time is more important (in markets), than price; when time is up, price will reverse." It has now been 29 months since gold last reached a new high in its current bull market cycle. The downtrend lasted 22 months (top to bottom), having bottomed on June 28th 2013 at $1180. Confirmation of the bottom came on Dec 31 when gold briefly touched $1182, and left behind a double bottom, see chart #3. There have been two other corrections that lasted 6 months or more, from top to bottom: In 2006 gold declined for 6 months, and in 2008 the pullback took 8 months to bottom. Thus a 22 month down-cycle qualifies under the Gann definition as 'time is up'. Read More |
01.13.14- Goldcorp Offers To Buy Osisko Mining: The Bottom Is In 
Goldcorp offered Osisko shareholders $2.4 billion in stock and cash to buy the shares of Osisko Mining (OSK). In terms of proven and potential gold in the ground, OSK is one of the best ways to play a big recovery in the price of gold and the precious metals mining industry. Goldcorp has always been the most likely buyer of Osisko so it was just a matter of time before this deal happened. |
01.11.14- Bah, Goldbug! 
It's been one of the worst years for gold in a generation. A flood of outflows from gold ETFs, endless tax increases on gold imports in India, and the mirage (albeit a convincing one in the eyes of many) of a supposedly improving economy in the US have all contributed to the constant hammering gold has taken in 2013. Perhaps worse has been the onslaught of negative press our favorite metal has suffered. It's felt overwhelming at times and has pushed even some die-hard goldbugs to question their beliefs… not a bad thing, by the way. To me, a lot of it felt like piling on, especially as the negative rhetoric ratcheted up. This year's winner was probably Goldman Sachs, calling gold a "slam-dunk sale" for 2014 (this, of course, after it's already fallen by nearly a third over a period of more than two and a half years—how daring they are). Read More |
01.10.14- It's Not (Just) About the Gold 
Since the beginning of recorded history, the lure of gold has drawn men and women to it like a moth to flame. A Greek traitor told the Persian King Xerxes about a secret goat trail that would enable his personal bodyguard, The Ten Thousand Immortals, to outflank and defeat King Leonidas and the 300 Spartans in the mountain pass at Thermopylae. The asking price was his weight in gold, which the Persians granted to him and then buried him with it. Legend speaks of Midas, whose fascination with gold was so intense that he wished for – and received – the ability to turn everything he touched into this shiny metal. Seeing his own daughter turn into a gold statue did not faze him. He was only brought to his senses, when the very food he tried to eat choked him as it too became gold. Read More |
01.09.14- Gold And Silver Will Be the Last Man Standing 
I have commented on the $30 drop in gold when 4200 contracts hit the market in 100-milliseconds on January 6th. Well, guess what – Market data provider Nanex iproduces proof that Monday’s smash down in the gold futures market was not a mistaken “fat finger” trade. It was the product of a high-frequency algorithm trading program deliberately designed to take the market down. Nanex’s report, with great charts, is here: Zero Hedge also commented on this obvious market rigging. The real question is where are the regulators? This would be funny if it weren't so sad. In case you are wondering why we live in Miami for half the year, check out this YouTube video. Living in Minnesota all of my life, I have personally experienced all of this! Read More |
01.08.14- The coming move and mania in silver will be breathtaking 
Silver might take 10 months to peak and 2 months or less to retrace much of its price increase. It might be a $100 billion market in the US. Getting out at that inflection point will be a doozy; the ride heady. Nearly everyone will be sucked in with dreams of becoming silver millionaires. Those who bought at $30-40 will be vindicated. Read More |
01.07.14- Why Does It Even Matter? 
Some have asked the question, “Why does it even matter?” when it comes to whether we still have the gold in Ft. Knox or not. They say, “Who cares, nobody uses gold to settle trade anymore.” Even Ben Bernanke has testified (perjured himself) in front of Congress and said, “Gold is not money, it is an asset.” Based on this (il) logic it then goes that even if the vaults are empty it “doesn’t matter.” Let me take you back to where this all started and to how we got here in the first place. It used to be (before the Federal Reserve was created) that banks could issue “currency” based on how much gold they had to back it. Then the Federal Reserve came along and played the same game, they issued dollars based on how many ounces they had stored. 1934 came along and the Fed couldn’t issue any more dollars because they didn’t have enough gold. Read More |
01.06.14- THE BIG QUESTION: Where Is The Price Of Silver Headed In 2014? 
Many precious metal investors would like to know where the price of silver is headed in 2014. After the huge take-down of the price of gold and silver in 2013, investors want to know if silver has finally put in a bottom and is getting ready for a new move higher this year If investors are banking on much higher silver prices in 2014, then the typical Bank & Brokerage House forecasts are not going to provide any guidance or comfort for that trend. Here are the 2014 silver forecasts from the Top Orthodox Analysts: Read More |
01.04.14- Gold And Silver – In East vs. West Gold War, Both Are Still Winning. China and every other BRICS nation importing gold have been doing so at cheaper and cheaper price levels, as the Western central bankers have been conducting a clearance sale. Even the fixtures are being sold, like JP Morgan’s fire sale of 1 Chase Plaza for $750 million, about half of its value. The building also happens to house the world’s largest gold vault, and it also located across the street from the Federal Reserve gold vault. This gives China a “two-fer.”. Now it can store the gold in Manhattan and save shipping costs, and should the NY central bank have any left, it just gets rolled across the underground tunnel. Read More |
01.03.14- The Historic Gold-Oil Ratio Forecasts A Much Higher Price For Gold The economy has moved so far away from the fundamentals that it no longer has any idea how to function without total market rigging. The Fed and central banks believe they can continue to control the markets, however the weight of all that paper crap will overwhelm them at some point in time. Read More |
01.02.14- Silver jumps 3.7%, gold up 1.9% and global stocks fall, welcome to the New Year! Could this be the ‘new normal’ for 2014? Sometimes the pattern of trading for the New Year emerges very quickly in the first few days. Read More |
01.01.14- Precious Metals in 2014
As we enter 2014 mainstream economists relying on inaccurate statistics, many of which are not even relevant to a true understanding of our economic condition, seem convinced that the crises of recent years are now laid to rest. They swallow the line that unemployment is dropping to six or seven per cent, and that price inflation is subdued; but a deeper examination, unsubtly exposed by the work of John Williams of Shadowstats.com, shows these statistics to be false. If we objectively assess the state of the labour markets in most welfare-driven economies the truth conforms to a continuing slump; and if we take a realistic view of price increases, including capital assets, price inflation may even be in double figures. Read More |
12.31.13- J.P. Morgan Sees Golden Opportunities for Huge Gains in 2014 With Gold and Silver 
With serious inflation still only a gleam in the eyes of the ardent gold bugs, 2014 looks like a tough year for gold miners. The metals analysts at J.P. Morgan think it is easy to look at the cost of new mines and conclude that current prices are unsustainable. But new mine projects may not be needed for several years if more of investors’ above-ground gold horde is unwound. Here is where the story gets more interesting. For many on Wall Street the question of future inflation is a when, and not if, proposition. Central backs around the world are printing money at a furious pace, debasing the value of their local currency. So whether it is a question of gold and silver as a hedge, an industrial commodity or simply a straight contrarian stock trade, the J.P. Morgan team thinks now is the time to look hard at the top names. They also think the downturn in prices has created a golden opportunity. Read More |
12.30.13- Gold And Silver – Sharply Higher Prices? Be Careful What You Wish For. 
2013 comes to an end, and with it all those calls for gold and silver to be at much higher price levels. What will 2014 bring? More and more renewed calls for much higher price levels. Will 2014 be the year? It is a possibility, but as the expression goes, “Be careful of what you wish for.” So many who expect gold to exceed $3,000, even $10, 000, while for silver $100 and higher, but what are the expectations for how circumstances will be with PM at the higher end? Do you believe your 100 ounces or 1,000 ounces of gold, and/or your 1,000 ounces or 10,000 ounces of silver will have increased your wealth, as you have been anticipating during the accumulation process, and everything else will be relatively the same, except your increased good fortune? Read More |
12.28.13- Silver Stocks 5 
2013 has been a brutal year for silver. And a brutal year for a metal obviously doesn't bode well for its mining stocks. Companies that have been exploring for deposits, developing mines, and producing silver have sadly become the pariahs of the markets. But if silver's fortunes change in 2014, as they ought to, then right now could be one of the best buying opportunities of this entire secular bull market. Unfortunately silver is currently in a sentiment wasteland. Even contemplating a foray into this metal, let alone its stocks, is a fool's errand to the majority of mainstream investors. Their mindset is why bother wasting even a cent of precious capital investing in a sector led by an asset that's down 36% on the year. It's much more prudent to throw money at the ever-rising stock markets, right? Read More |
12.27.13- Lessons from the World's Second Largest Gold Field 
It was a long flight back. No meal service. But no turbulence, either. "Long flight" is a relative term, of course. 7 hours in a plane beats the 16 it takes to get to South Africa, that's for sure! I guess you and I are lucky we're rather close to the world's second largest gold field. Today we'll explore what this area has to offer. We'll start by outlining just where it is! Much to the surprise of many, the world's second largest gold field is right here in the U.S., in the mining-friendly state of Nevada. (My 7hr trip was thanks to a "stay on the plane" layover in California.) Read More |
12.26.13- Rob Kirby-When China Doesn't Get Their Gold-That's When This Ends |
12.25.13- Money, Gold And Liberty – What Has Changed In 2013?
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12.24.13- Where are we in the Gold Cycle |
12.23.13- Gold – A Supressed Market Remains Suppressed, But For How Long? 
Part of the reasoning for the price of gold to attain levels that are multiples of the current price, sometime into the future, [too late for those who have been calling for much higher gold prices in 2013], is the Federal Reserve central bank creating trillions and trillions of digital currency to support every underwater bank in existence. None of the newly created imaginary computer entries, aka currency, has made it into the hands of the business community, nor into the hands of the people, aka financial serfs, as far as bankers are concerned. The elites use central banks as their ATM machines to pay all the huge bonuses bankers are paid, in return for financially destroying capitalism and maintaining control of the Western world. Read More |
12.21.13- Jim Rickards: Gold, Bitcoin, Stimulus & Stocks
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12.20.13- Why the selling of gold by ETPs this year is the key to the next big hike in the gold price 
At first sight the huge amounts of gold being sold by Western gold exchange traded products this year sounds a disaster for gold and indeed it has greatly contributed to the recent slump in gold prices. However, there is a nasty sting in the tail of this selling that will come back to haunt the gold ETPs. Because most of this gold has ultimately been exported to China it has gone on a one-way journey. Gold exports from China are banned. They want it for their national reserves. When the gold investors now massively shorting gold want to cover their shorts then the gold will not be there, except of course if they are prepared to pay a very, very much higher price. Read More |
12.19.13- Refueling A Bull Market 
All markets go through cycles. Secular or long term bull markets are often interrupted by cyclical or short term bear markets. These short term bear markets often feel like they will never end, but they serve to refuel the bull market. The reason is bull markets are powered by new buyers. Any market that goes up too far, too fast, runs out of new buyers, and thus becomes more vulnerable as buyers are exhausted. Everyone gets excited that the market is going to the moon. But in reality too much buying has been pulled forward in time because too many people rushed in at the top. This is how markets fake out the majority of participants at the extremes. Too many people do the wrong thing at the top, leaving not enough people to keep the market going higher. The balance of power shifts to the sellers, which drives the market back down. Read More |
12.18.13- David Morgan: 2014 Gold and Silver Forecast - $30 Silver and |
12.17.13- Gold-Starved Indians 
Informed precious metals investors are well aware of the tremendous "squeeze" placed upon gold demand in India, via the draconian suppression of imports. Regular readers of my work understand that this gold-squeeze was, in fact, instigated by the One Bank – through placing enormous pressure on India's government. This economic blackmail took the form of attacking India's currency, the rupee, in global currency markets, and driving its value to record-lows, until the government of India capitulated. With the global rigging of currency markets (by these same Banksters) now being fully-exposed; this is nothing more than "business as usual" for the One Bank. Read More |
12.16.13- Silver – A Rigged Market Coming To An End 
No one can question the fact that the demand for silver has grown exponentially in the past few years, record sales for American Eagle coins being one small example, record buying in India, another larger example. Demand has never been greater. Supply, on the other hand, keeps diminishing. Global mining production is at its lowest in the past decade. The annual Consumption/ Production ratio is indicative of acute deficits. Whenever there is a situation where demand rises sharply, while supply commensurately declines, it is a recipe for higher prices, and usually, much higher prices. This is true, unless one is talking about the silver market. Under the conditions of record rising demand and considerably less supply, the price of silver is at its lowest levels in the past three years. Read More |
12.14.13- Silver Volatility…and No Trip This Week 
Jack Lew and friends are really doing a job on the price of paper silver lately jamming it below $20/oz again. Will it ever stop? Someday, yes…but I have long warned that “they” can place the price of COMEX Silver at $0/oz or $1M/oz with a click of a mouse. 100% controlled – 100% of the time. For those of you who are Private Road Members I talked about this expected Silver price volatility coming by the end of the year in the Timeline Article. For those who are not paid members here was my expectation for silver (released on September 2013)… Read More |
12.13.13- Gold Drops $20, "I'd Rather Buy Silver," Says Jim Rogers
"The fact that India," said investor, fund manager and best-selling author Jim Rogers to BullionVault overnight, "which has been the largest buyer, has reduced its buying a lot is one of the main factors that's causing gold prices to go down." Read More |
12.12.13- SILVER: Inflation Hedge, Store of Value or Great Investment
Recently, Don Harrold came out with a YouTube video on how silver has been a poor inflation hedge since 1914 as it has underperformed its expected price for most of the time. In this part of his video he brings back an interview of what he said about silver in 2011, when silver had shot up to $43 on ounce. Basically, Harrold was saying that he was not a buyer of silver at time because the current price had shot way above its expected price based on the inflation rate. Read More |
12.11.13- Silver – Letting The Market Speak
It may satisfy many to know this information, but we are more interested in what translates into results, where can a market turn be determined, where price is likely to go, etc, etc, etc? This is where the challenge lies, for it comes down to timing in order to enter or exit a market, seeking profit opportunity in the process. Read More |
12.10.13- Silver Set to Double,
And right now, Apple is giving us some surprising indications that the demand for silver is much higher than its current price would have us believe. Actually, the first "sign" came to us back in January when Apple had to delay new 27-inch iMac deliveries by up to four weeks. Of course, the company never specified exactly what was causing the delay... but the rumors flew. Read More |
12.09.13- Alex Stanczyk: Physical Supply Never Been Tighter
Koos Jansen: What was the purpose of your trip to Switzerland? Alex Stanczyk: The purpose was two fold. We go to Switzerland once a year as part of our governance, we’re required to have an annual inspection of the gold, that was the main purpose of the trip. But in addition to that we also liked to talk to the refineries. Read More |
12.07.13- There Is Too Little Gold in the West
An examination of the facts shows that central banks have been on the back foot with respect to Asian gold demand since the emergence of the petrodollar. In the late 1960s, demand for oil began to expand rapidly, with oil pegged at $1.80 per barrel. By 1971, the average price had increased to $2.24, and there is little doubt that the appetite for gold from Middle-Eastern oil exporters was growing. Read More |
12.06.13- Gold And Silver – Reverse Bubble.
There are so many pieces to the entire puzzle, and for all the known ones, those which are most important are unknown to the great majority. All one can do is to continually monitor events and prepare accordingly. The best predictor of the future has always been past behavior. For centuries, the most reliable preparation has been the ownership of gold. Read More |
12.05.13- Silver and Gold as Currency Commodities
This purchasing power ratio is strengthened by the fact that there are 17 ounces of silver for every 1 ounce of gold in the earth's crust, although physical silver stocks have dwindled as the metal is used in a wide variety of industrial applications. Historic Purchasing Power It has long been said that an ounce of gold will buy a custom tailored men's suit. In the 1930s, an ounce of gold cost $35, and a suit was nearly the same price. Read More |
12.04.13- Ron Paul: Bitcoin Could
The digital currency Bitcoin promises all these things. And while it's far from achieving any of them -- its value is unstable and it's rarely used -- some have high hopes. "There will be alternatives to the dollar, and this might be one of them," said former U.S. congressman Ron Paul. If people start using bitcoins en masse, "it'll go down in history as the destroyer of the dollar," Paul added. Read More |
12.03.13- Gold Drops Below Cash Cost, Approaches Marginal Production Costs 
As we showed back in April [7], the marginal cost of production of gold (90% percentile) in 2013 was estimated at between $1250 and $1300 including capex. Which means that as of a few days ago, gold is now trading well below not only the cash cost, but is rapidly approaching the marginal cash cost of $1125... Of course, should the central banks of the world succeed in driving the price of gold to or below its costs of production (repressing yet another asset class into stocks) then we fear the repercussions will backfire from a combination of bankruptcies, unemployment, and as we have already seen in Africa - severe social unrest (especially notable as China piles FDI into that region). Read More |
12.02.13- Gold & Silver – Reverse Bubble. Huge Rally When Broken 
Gold and silver are in reverse bubbles, if you will, where price has been both severely distorted and suppressed by central banks, the visible tools of the otherwise hidden moneychangers, those on the top of the population pyramid who want to control and enslave the entire world in a totalitarian state of existence. Ironically, the best and only hope for the [not so] free world comes from China and Russia. It is a twisted world in which we live. There are so many pieces to the entire puzzle, and for all the known ones, those which are most important are unknown to the great majority. All one can do is to continually monitor events and prepare accordingly. The best predictor of the future has always been past behavior. For centuries, the most reliable preparation has been the ownership of gold. Read More |
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I received a reply to my article and a question yesterday from John Embry of Sprott Asset Management. He asks, “Where” the silver has come from to supply the excess demand over these past years. I have reprinted his question and then my response to John. I will follow my reply at the bottom with some parting comments and a more in depth explanation.
Silver has had three bad years while the S&P has had five good years. It is time for both markets to reverse.
In the past week, the Shanghai Futures Exchange suffered another large withdrawal of silver from its warehouse stocks.
Most of us have insurance. Auto insurance, home owners, etc.
Accidents do happen, and one can never predict when some nutty, pimple faced,
testosterone soaked, teenage male, will attempt to test GM's differential
gears. Fires do happen, and if you have life insurance, you certainly
will eventually die eventually. Insurance companies are well endowed, and your
premiums are invested. They are private, and make a profit, which is the
way the capitalistic system works. Then there is the Social Security
"insurance,' which is not insurance at all, but a giant Ponzi scheme. FDR
started it, and its rates have gone up, up, and up over the years, and it is
still bankrupt, just like everything else the federal government operates,
such as the postal system, National Parks, and now Obamacare, which promises
to be the ultimate disaster. 
Since there is a lot of talk about a potential gold re evaluation following an international monetary reset, I wanted to interview 
"The few who understand the system will either be so interested from its profits, or so dependent on its favors that there will be no opposition from that class." -Rothschild Brothers of London, 1863
For the past year, we have been saying that the charts for gold and silver are likely
bottoming in a normal manner, and it takes time for a this kind of formation to complete
itself. It remains the case, to date.
Friday’s disappointing jobs report – which yet again fell short of expectations and had unemployment remaining stagnant at 6.7% – adds more fuel to the market’s angst as it continues to lose patience with the so-called recovery. The Dow tumbled three digits on the underwhelming news, which suggests that it has now moved past the phase of merely being disappointed to being outright spooked. 
JRR Tolkien wrote The Lord of the Rings during WWII, withholding publication until 1954-55, while he likely sharpened and edited the 2nd best selling novel in history. As with all great works of literature, they are a blend of divine inspiration and good old hard work and study on the part of the author.
In the opinion of some, silver has become a troublesome investment metal since the decline of the photographic industry. It is doubted that the new industrial applications are, or will be, of equal relevance to sustain the metal’s price and relevance. But is this really true? Tech Metals Insider spoke Mike DiRienzo, executive director of 
Being successful in trading has a lot to do with finding the developing “story” behind
the price structure of a market. We had good results in February because we keyed
into some very important pieces of market information that would lead to a likely result
for the direction of price, or what we call “the story of the market.” We had less success
in March because the focus was more on trying to catch up to the story, where being
just a step or so behind is not as rewarding, even resulting in loss.
So far, 2014 has been a paradoxical year for gold. Many investors aren’t even aware that it has rallied almost 8%. On the rare occasion that the financial media mentions the yellow metal, it is only in the context of comparing the recent rise to last year’s decline.
Debt works the same way for countries as for families and individuals. That is, if you borrow too much, your life begins to suck. And actions that in normal times might have seemed unwise, contradictory or downright stupid begin to look better than the (even more disturbing) alternatives. 
It could get to be interesting as we move into the end of the month. The Volcker Rule which limits banks' speculative investments (including gold) goes into effect April 1, 2014. There has probably already been quite a bit of adjustment to bank portfolios, but those who have held out will need to make their moves before the deadline.
A life event recently tested how strong my convictions are on the question of where silver and gold prices are headed in the next 12 or so months.
Silver expert David Morgan is warning of coming financial changes that may be forced on the U.S. during the next G20 meeting. Morgan says, "The impetus here is the U.S. has had too much financial power backed by the military for far too long, and they (G20) are going to implement change one way or the other. The IMF is basically an extension of the United States. Even though it's called the International Monetary Fund, it is really U.S. based. With what's been proposed here, the IMF is not going to have the clout that it once did because the G-20 is going to be able to overrule the IMF vote. This is a point in history, monetary history and global economic politics that could set a precedent . . . where it's official that the U.S. dollar has lost its primary status as world reserve currency." 
Gold bulls should be heartened by the latest official figures for Chinese gold imports through Hong Kong for February. Not only were net imports some 30% higher than in the previous month, but fully 79% higher than in February 2013 according to calculations from Bloomberg based on the latest Hong Kong official data. The latest figures out of Hong Kong suggest that far from Chinese gold demand slowing down this year it could even be accelerating. 
Is the price of copper trying to tell us something? Traditionally, "Dr. Copper" has been a very accurate indicator of where the global economy is heading next. For example, back in 
Can the gold price be fundamentally related to some other economic variables? Can we use those variables successfully in trying to predict the future price of gold? Is gold highly correlated with any of those variables?
If the double bottom established by gold last year is good for the gold price it is outstandingly good news for silver. 
There is something going on right now in the copper market that should alarm you. Over the past week, the price of copper has plunged, recently hitting a four-year low. 
Gold peaked in August of 2011 and fell erratically into December 2013.
Ever since the financial markets collapsed in 2008, the landscape for financing has been upended and the difficulty of navigating through the tumult is seen no better than in the mining industry, where falling commodity prices and China's slowing economy have exacerbated the situation. 
There is something going on in the gold and silver market, and it is difficult to ascertain
exactly what it is. Perhaps it can best be described as a change in market behavior that
may be defining a potential change in trend. For many, the presumption has been, “Gold
and silver are going to go to the moon, for the following reason[s]….” What followed was
then a litany of the same facts that have been widely known for well over a year, and the
same types of graphs depicting various aspects, [depleted gold stocks, cost of production
v current price, etc], very often nicely colored and reproduced, but to no practical effect,
at least in terms of the direction of price for gold and silver which continued lower until
the end of 2013. 
"When the dollar collapse comes, it will happen in two ways: gradually then suddenly. That formula, famously used by Hemingway to describe how one goes bankrupt, is an apt description of critical state dynamics in complex systems. The gradual part is a snowflake disturbing a small patch of snow, while the sudden part is the avalanche. The snowflake is random yet the avalanche is inevitable. Both ideas are easy to grasp. What is difficult to grasp is the critical state of the system in which the random event occurs." 
The digital "Bitcoin" has bit the dust at Mt. Gox Bitcoin Exchange; over $400 million US has evaporated, or perhaps moved into someone's pocket. The news is all over the Internet these days.
Have you ever had one of those thoughts tumbling around in your head for days? Usually, it lingers there until you finally try to put the pieces together. This happened to me yesterday and the result is something that needs to be widely shared, thus this public thread.
This week two investment firms came out expressing their disbelief that silver has any more upside, so investors may start getting nervous and begin asking the same question. Back on Feb 12, 2014 I wrote an article titled “Coffee to Outperform Precious Metals” and within the article I stated that Coffee looked to reach $1.75 per pound – today it reached $1.78. I had 
Transcript of AFE's interview with Jim Rickards on Jan. 14, 2013.
The premise behind the movie (and book) 
Silver markets have been explosive over the last few days as the market has gone from trending upwards to literally jumping upwards on the charts, as momentum and volatility kicked in with rampant speculation for the precious metal.
As Wall Street and the financial media carry on business as usual, the underlying foundation of the U.S. economy continues to disintegrate. Very few Americans realize we have past the point of no return. This holds true for many of the precious metals investors.
When attempting to quantify the amount and quality of a possible mineralized deposit on their property, exploration companies and producers generally follow a process which seeks to state, in reasonably accurate and concise terms, just what they have…or might have. Following the Bre-X fiasco, wherein 'highly inaccurate' reserves of a supposed deposit in Borneo were publicized and acted upon by a tidal wave of investors, sophisticated and neophyte alike, a new set of reporting rules was enacted.
[Note: This started as a comparative look at some gold stocks, and it turned into a great
exercise in finding trades, if you take the time and go through the steps we outline in each
chart. You can begin to see differences in the quality of trade selection, based purely on
information the market offers each and every day. Enjoy!]
With incredible bullish and widely misunderstood fundamentals generally kept sequestered from the mainstream, it is easy to rationalize higher prices eminent at any point in time. This is certainly why so many analysts and many new investors arrive to the sector with an impatience driven by the accident (surging prices) waiting to happen any minute.
The reasons for owning physical silver are many. Silver is a real asset that stands outside the banking system and therefore has no counterparty risk. If you lived through 2008 as an investor and don't know what the term counterparty risk is, you aren't doing a very good job diversifying your assets. Likewise, with recent discussions of the bank bail in concept, silver is a private asset, one that you can sell on your own terms. Related to silver being a private asset, the white monetary metal is also an item useful for barter. No one wants to live in a bombed out, destroyed, hollowed out shell of world—but at the same time, what we want in life and what we get in life are two separate things. Being prepared is the motto of anyone watching the horror show that is the global economy of late—and while there are many ways to be prepared, owning one of the oldest and best recognized monetary metals is a good start. 
I interviewed Sprott's John Embry a few weeks ago. John believes gold and silver will move big as weakness in the economy and financial system comes to light. I got on the phone with Mr. Embry for a follow-up on his ideas and predictions…
The United States is fast racking up characteristics of a Third World nation. Its finances are Third World. Its president is Third World. Its banking integrity is Third World. Its absent industry is Third World. Its decaying cities are Third World. It urgently begs for a Third World currency, but that is soon to be remedied. For the last three years, the United States has been living in a fairy tale with bailouts from the vast bond monetization. The Quantitative Easing with its amplified bond purchases and hidden channels to disguise higher volumes has been operating as an historically unprecedented Wall Street bailout and Fannie Mae fraud recycle room. Pressures are building. 
Wallace, Idaho – A well-educated friend approached us the other day. A friend of his had decided to give up cigarettes and put the $250 a month he was saving in to silver, but hadn't a clue how to do it?
We have spoken about the sometimes extreme intraday volatility that the Precious Metals as well as related Mining companies have experienced thus far in 2014, with very choppy charts in benchmark ETFs like SLV (iShares Silver, Expense Ratio 0.50%) and GLD (SPDR Gold Trust, Expense Ratio 0.40%) in the past few weeks.
China represents the East, as its insatiable demand for buying physical gold continues
unabated, while in the West, the elite’s central banks have pretty much depleted their
physical holdings. In the war for gold, both are still winning, but for vastly different
reasons.
While many analysts on Wall Street forecast gold to head lower in 2014, they fail to realize that its historic ratio to oil points to a much higher price. It seems like everything today is based on financial wizardry rather than fundamentals of a physical economy.
Silver moved out of the shadows as the New Year started with a spectacular rebound of more than three per cent and gold gained 1.5 per cent as investors rejigged their portfolios for 2014. Stocks mostly fell on military tensions between Japan and China, falling GDP in Singapore and poor Christmas sales for retailers in the US and UK.
Yes folks, it's that time of year again; but unlike old Khayyam who reflected bucolically on the continuing availability of wine, we must turn our thoughts to the dangers and opportunities of the coming year. They are considerable and multi-faceted, but instead of being drawn into the futility of making forecasts I will only offer readers the barest of basics and focus on the corruption of currencies. My conclusion is the overwhelming danger is of currency destruction and that gold is central to their downfall.
The last year has been an interesting year in many respects, especially for precious metals. We saw strange fluctuations in the gold price, mainly because of the paper market, and also "creative" ideas by governments on how to control their citizens and their wealth. It seems that on a daily basis more and more is uncovered on how the US is spying on its citizens through the NSA. Also FATCA, which will be implemented shortly, will make all financial assets of US persons transparent to the IRS. What about: Privacy? Democracy? And above all: Liberty? Sadly, we think that these principles have been thrown overboard and it is unlikely that the infringements of natural rights will end any time soon. 
Transcription of Finance News Network interview with Tangent Capital Senior Managing Director, Jim Rickards
We are not a source for or fans of endless statistics, like the number of ounces
purchased from one period over another, how many ounces are available at the
Comex, how many ounces have been mined, the demand for v the production of
silver, etc, etc, etc. Too boring.
We all have our reasons for following Apple. I track it because this tech behemoth is a massive global consumer of metals - base, rare earth, and precious. 
Western central banks have tried to shake off the constraints of gold for a long time, which has created enormous difficulties for them. They have generally succeeded in managing opinion in the developed nations but been demonstrably unsuccessful in the lesser-developed world, particularly in Asia. It is the growing wealth earned by these nations that has fuelled demand for gold since the late 1960s. There is precious little bullion left in the West today to supply rapidly increasing Asian demand. It is important to understand how little there is and the dangers this poses for financial stability.
Gold and silver are in reverse bubbles, if you will, where price has been both severely
distorted and suppressed by central banks, the visible tools of the otherwise hidden
moneychangers, those on the top of the population pyramid who want to control and
enslave the entire world in a totalitarian state of existence. Ironically, the best and only
hope for the [not so] free world comes from China and Russia. It is a twisted world in
which we live.
Gold and silver have a 6000 year history for their use as a currency, and until the last century, the price of gold and silver maintained a healthy valuation ratio of 1 ounce of gold to every 15 ounces of silver. 
