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03.27.15- Gold's relationship with the U.S. dollar is about to change
SAN FRANCISCO (MarketWatch) — The gold market's moving to Asia and the metal's relationship with the U.S. dollar will never be the same.
In a report released Thursday, the World Gold Council said gold's GCJ5, +0.63% relationship with the dollar DXY, +0.12% is "complex," as MarketWatch similarly observed in an article published Monday. It also said that relationship is set to "diminish" as the market shifts to Asia. Read More
03.26.15- Our Dollar Crisis Deepens:
In recent history, for as long as the U.S. dollar has reigned as the global reserve currency, countries have traditionally paid for goods in trade by converting their currency into the dollar. Thus there has usually been a huge (but artificial) demand for the greenback.
But in recent years, we've started to see the tide turn. The BRICS – along with a handful of other developed and developing economies – have opted to settle foreign transactions through bilateral trade agreements. Sometimes they've even opted to pay for each other's goods with gold. Read More
03.25.15- Interest Rates and the Future of Gold
From day to day and week to week, short-run fluctuations in the price of gold have, of late, been driven almost entirely by expectations of prospective Federal Reserve monetary policies, particularly with respect to short-term interest rates.
In turn, these expectations have been driven by the flow of economic data and the somewhat opaque and contradictory comments by one or another Federal Reserve official. Read More
03.24.15- Washington Just Dipped Into Retirement Savings To Fund Itself
Desperate for cash in order to maintain its spend-happy ways, or Government just set this dangerous precedent.
You know things are getting bad when your government begins to stick its hand into retirement accounts just so that it can remain solvent for a few more months. Read More
03.23.15- China's AIIB Spells "Dollar" Demise, Not Clear For PMs.
The Asian Infrastructure Investment Bank [AIIB]. What is it? Yet another political disaster for the Obama administration as it leaves a wide swath of blunder after blunder in massively failed efforts to keep US allies from aligning with China's newest anti-US, anti- fiat Federal Reserve "dollar, AIIB. It will not just compete with the World Bank, a US- dominated financial entity, the AIIB will logically replace the World Bank in its own Asian sphere of influence. Read More
03.21.15- Silver Poised to Surge
Silver is scraping major support again, after a rough couple months where speculators left it for dead. But today's brutal lows and extreme universal bearishness are the perfect breeding ground for silver's next big rally. Investors are very underexposed, while speculators have big short positions that will have to be covered. So as gold reverses decisively and paves the way, capital is going to flood back into silver.
Silver's great allure today when it is down and out is hard for most to understand. That's because most traders mistakenly make linear assumptions in a nonlinear world. They expect today's market conditions to persist indefinitely. But that's not the way markets work, they are forever cyclical. The best times to buy low before later selling high are when assets are universally despised and trading at super-low prices. Read More
03.20.15- The Titanic Sinks At Dawn
What Titanic? The RMS Titanic, or any of the following:
A titanic quantity of derivatives – say 1,000 Trillion dollars. A derivative crash was at the center of the 2008 market meltdown. It could happen again since there is now more debt, leverage, and risk than in 2008.
A titanic accumulation of debt – global debt is approximately $200 Trillion. Global population is about 7,000,000,000 so there is about $28,000 in debt per living human being. If global debt were backed by all the gold mined in the history of the world, an ounce of gold would back $36,000 in debt. Gold currently sells for less than $1,200. Gold is undervalued and there is an excess of debt. Read More
03.19.15- Why Aren't These Investors Worried About The Gold Price?
Have you noticed that some gold investors don't seem very concerned about the current behavior of gold?
While the price remains weak and range-bound, some gold investors don't seem worried about it at all.
The natural reaction to an asset you own losing a third of its value, with seemingly little motivation to move higher, is cheerless and maybe even depressing. So why aren't they? Read More
03.18.15- Short-Term Bounce but Danger Looming
The precious metals sector is oversold and due for a bounce. Miners and metals have endured severe declines in recent weeks and are likely to rebound from the 2014 lows. The miners are just starting to rebound and the metals should follow. However, until proven otherwise this appears to be an oversold bounce that could last only a few weeks. Potential danger lies ahead before a sustained turnaround. Read More
03.17.15- Why the U.S. is Letting China Accumulate Gold
Editor's Note: Jim Rickards has published a third book entitled "The Big Drop: How to Grow Your Wealth During the Coming Collapse." It's available exclusively for readers of his monthly investment letter called Strategic Intelligence. Before you read today's essay, please click here to see why it's the resource every investor should have if they're concerned about the future of the dollar.]
A lot of people think about gold as a percentage of a country's total reserves. They are surprised to learn that the United States has 70 percent of its reserves in gold. Meanwhile, China only has about 1 percent of its reserves in gold. People look at that and think that's an imbalance. But those are not very meaningful figures in my view. Read More
03.16.15- When Will PMs Rally? Not In 2015.
If one addresses what is going on between China and the IMF, while keeping an eye on the Federal Reserve's fiat debt instrument, incorrectly called the "dollar," then the likelihood of a significant rally in gold and silver may not develop this year. Those believing the fiat "dollar" is on its currency deathbed and about to implode to its true intrinsic worth, zero, are not paying enough attention to realize that the elite's are still in control while in the process of merely switching horses: to China from the US. Read More
03.14.15- On the Silver Highway
03.13.15- Will the Shanghai Fix fix the gold market?
John Maynard Keynes once remarked that "A debtor nation does not love its creditor, and it is fruitless to expect feelings of good will." In the case of the financial arrangement between China and the West including the United States, I might add that the opposite is also true, particularly when that creditor thinks its debtor might be in over its head. Each, though, has learned to live with the other in this complicated and intricate web of debt and money, interlocking national balance sheets and intertwined commercial interests we call the international markets. To not do so is to act against one's own national interest. Read More
03.12.15- Why You Should Listen to This Man About Gold
Would you like your advice from someone who has been successful or from someone who's failed? I'd prefer to hear from a winner.
Now that the gold market has been mauled by a bear, we can sort out the pretenders from the contenders in the mining industry. After all, there's nothing like a major down cycle to reveal which companies are run by people who know how to prepare for bad weather.
The price of gold has fallen more than a third since August 2011, crushing the prices of gold stocks... but not all of them. Read More
03.11.15- JP Morgan's Giant Silver Fraud
In order to figure out what the elitists are going to do next in order to loot wealth from our system, all you have to do is think like a criminal. – Dave Kranzler, circa 2004
The Comex open interest for May silver (the current "front month" contract for Comex silver) is 535.6 million ounces. The current amount of 'registered" silver – silver that has been designated as available to be delivered – is 68.8 million ounces (LINK). The amount of paper silver for just May is thus 7.78x greater than the amount of physical silver available for delivery. In other words, for every ounce of physical silver held in Comex silver vaults that has been declared available for delivery, there are 7.78 ounces of paper silver issued. Read More
03.10.15- The new London gold fix and China
This month the physical gold market will undergo radical change when the four London fixing banks hand over the twice-daily fix to the International Commodity Exchange's trading platform on 20th March.
From 1st April the Financial Conduct Authority will extend its powers from regulating the participants to regulating the fix as well. This will transfer price control away from the bullion banks allowing direct access to the fixing process for all direct participants and sponsored clients. Read More
03.09.15- Critical Reason to Own Silver: Shown In This Chart
There's many good reasons to own silver. However, one of the most important is shown in the chart below. Investors don't realize the huge problems facing the U.S. and world going forward. While some more enlightened investors understand the upcoming calamity due to our highly leveraged debt-based fiat monetary system, most have no idea just how bad things will get in the future.
This goes way beyond protecting ones wealth with precious metals in a collapsing fiat monetary system. When the fiat monetary system disintegrates, so will the JUST IN TIME SUPPLY CHAIN SYSTEM in which we most certainly depend on for our goods and services. Read More
03.07.15- Legal Tender Coins Shed Clues On Bullion Racket, Part I
One of the "mysteries" of our modern (i.e. fraudulent) precious metals markets is explaining the face-value of our gold and silver minted coins, meaning relating their nominal price to their actual value. The face-value on U.S./Canadian silver 1-oz coins is $5, and the face-value for our 1-oz gold coins is $50. For those investors (including this analyst) who began using precious metals as a vehicle for wealth-protection at a relatively late date; the face-value of these coins seems totally arbitrary. Read More
03.06.15- Apple Major New Gold Buyer – Propel Gold Higher?
03.05.15- McEwen sticks to US$5,000 gold forecast
Rob McEwen is sticking to his guns.
Despite the poor performance of the gold price the last two years, and predictions from numerous experts (including Goldman Sachs) that it will drop further, the famous gold entrepreneur maintains his long-held belief that bullion will head north instead — perhaps to US$5,000 an ounce.
"I think we're at a turning point," the chief executive of McEwen Mining Inc. told investors in a luncheon presentation. Read More
03.04.15- Could Apple Buy a Third of the World's Gold?
Is there anything Apple can't do?
First it revolutionized the personal computing business. Then, with the launch of the iPod in 2001, it forced the music industry to change its tune. Against initial market reservations, the company succeeded at making Star Trek-like tablets hip when it released the iPad in 2010. And in Q1 2015, a record 75 million units of its now-ubiquitous iPhone were sold around the globe. The smartphone's operating system, iOS, currently controls a jaw-dropping 89-percent share of all systems worldwide, pushing the second-place OS, Google's Android, down to 11 percent from 30 percent just a year ago. Read More
02.03.15- Major Factor for Qwning Gold: The Collapse Of Gold's EROI
The world is heading towards an economic and financial collapse of epic proportions. Individuals who are currently invested in this system fall into two categories. We have the overwhelming majority invested in paper-digital assets and a fraction of the populace holding physical assets such as the precious metals.
Currently, the financial system favors those invested in PAPER & DIGITS, while it punishes the precious metal enthusiast. Of course, this is only for a short time period, but it seems like an eternity since gold and silver hit their highs in 2011 Read More
03.02.15- What Top Hedge Fund Managers Really Think About Gold
In the January BIG GOLD, I interviewed a plethora of experts on their views about gold for this year. The issue was so popular that we decided to republish a portion of the edition here.
Given their level of success, these fund managers are worth listening to: James Rickards, Chris Martenson, Steve Henningsen, Grant Williams, and Brent Johnson. Some questions are the same, while others were tailored to their particular expertise. Read More
02.28.15- Weekend Rant: The Legacy of A Silver Stacker
What is the most important factor any stacker needs to consider?
I have spent a great part of the last 4 years learning the lessons of this world. Lessons like how the world is ruled by pathological, arrogant individuals that have no mercy and no qualms about crushing you under their heel fiscally for their benefit.
As I had last written previously here, I really didn't come looking for trouble, but was merely searching for a way to get myself out of the financial predicament that I had allowed myself to get into. Finding these things out has altered my destiny forever. Read More
02.27.15- Silver Forecast 2015 And Beyond
Recently I authored an article whereby using technical analysis, I uncovered a potential Silver price target of $300.00 an ounce. Since then I've been asked to investigate and support how Silver may get to such a lofty price…and or do I believe it's even possible?
Here are some of the facts and fundamentals I've found regarding Silver: Read More
02.26.15- Gold and Debt: Astonishing Comparisons
Debt and budgets in the trillions of dollars and euros are difficult to comprehend. The US budget is nearly $4 Trillion per year while the US official national debt exceeds $18 Trillion. A single large bank may hold contracts for more than $50 Trillion in derivative contracts. Global debt is approximately $200 Trillion.
Let's relate those numbers to gold prices, gold mined each year, and gold mined throughout history. Read More
02.25.15- Gold: The Good, Bad, and Truly Ugly
The Gold Standard: Although it may be unrealistically optimistic, I believe my paraphrase of a Churchill quote:
"Central Bankers will eventually do the right thing and return to a gold standard after they have exhausted all other alternatives."
While central bankers are exhausting all other alternatives, I worry about the collateral damage to 90% of the population who are not first in line on the fiat money gravy train that benefits the financial and political elite. Read More
02.24.15- A New Way to Hold Gold (2015 Update)
What if you could carry and exchange gold in the exact same manner as you do with the dollar bills in your wallet?
Last year, we introduced the precious metals community to a company called Valaurum, which has developed a technology that's making this possible.
Here's the write-up from last year: Read More
02.23.15- Banker's Grip On PMs Not Over
To leave the EU or not to leave the EU, that is the question? Pick any hour, and you will have an answer that is good until the next hour passes. While there have been cheers and encouragement for what the newly elected Syriza party has been telling the EU, that no more debt enslavement will work for Greek citizens, it could very well turn out that Greece's Prime Minister Alexis Tsipras and his Minister of Finance Yanis Varoufakis are waiting for the best deal for themselves before ensuring that Greek citizens remain so enslaved. It is extremely difficult to fight the elite's system and win. Read More
02.21.15- 2015 global gold supply deficit could be substantial
Returning to the latest World Gold Council (WGC)/GFMS Gold Demand Trends report, which puts mainland Chinese 2014 consumer demand at a mere 814 tonnes together with the Shanghai Gold Exchange (SGE) overall withdrawal figures (around 2,100 tonnes) – assuming both to be in essence correct, but looking at different parameters – the difference is explained in the Gold Demand Trends report as due to gold purchases by commercial banks, which it doesn't include in its statistical calculations – see Chinese gold demand discrepancy explained? Read More
02.20.15- The Year OF The Goat?
There are many financial and geopolitical eventsall coming together, culminating or beginning within the next couple of weeks. The two most notable are what will happen in Greece and Ukraine. There have also been many other clues pointing to some sort of event coming to pass. In southern drawl, you might say "somethin's fixin' to break".
We have previously covered Greece and how it's exit or default could affect Europe, the West, derivatives and ultimately the global financial system. Read More
02.19.15- This chart shows Grexit would send gold price to $2,000
There could be lightning bolts from Mount Olympus yetBack in May of 2012 (when gold was trading north of $1,600 an ounce) Bloomberg reported on how a Greek exit from the Eurozone may play out based on synthesized scenarios from 21 economists, analysts and academics.
The wargaming suggested Greece may have only 46 hours – Friday's close in the New York to Monday's market open in New Zealand – to pull off any sort of non-chaotic departure: Read More
02.18.15- Silver and Gold: Why Now?
My very simple perspective is this: In round numbers the US government debt increased by about $1,000,000,000,000 ($1 Trillion) in the single year between October 1, 2013 and October 1, 2014. Government revenue plus borrowed money were spent on the military, social security, Medicare and so much more. But that money is gone and producing NO future revenue, unlike debt that purchases a business which generates income to service the debt.. Read More
02.17.15- A Remarkable Proposition
A remarkable new paper by a Cornell law professor and CFTC staff counsel suggests that many aspects of high frequency computer trading (HFT) may be, in fact, illegal under various provisions of basic commodity law. Heretofore, it was generally assumed that HFT was legal, but disabused and impacted markets in disruptive manner on occasion. Many, like myself, never looked on HFT favorably, but few have tried to make the legal case against it. The author, Gregory Scopino, writes in his personal capacity and not on behalf of the CFTC. Not a short or easy read (at 90 pages), I feel Scopino makes a well-researched case and even offers answers to questions asked of me by readers, such as definitions for commodity terms and the like. Please take the time to scan the document. Read More
02.16.15- Silver's Ready To Run
Silver looks to be on the verge of a major new upleg, finally emerging from the past couple years' ugly sentiment wasteland. This beleaguered precious metal recently bottomed as futures speculators threw in the towel on their extreme shorting. And while investors' ongoing silver stealth buying continues, it's been modest. So there is vast room for capital inflows to accelerate dramatically as gold mean reverts higher. Read More
02.14.15- Silver Will Be The Best Performing Asset Of 2015
Silver has carved out a cyclical bottom formation and appears to in a solid uptrend. There is massive physical demand supporting this move. For the last three-plus years, the precious metals market has been in a trading pattern in which you were supposed to sell the rallies. Now silver – and the rest of the sector – appears to be in a pattern in which all dips should be bought/accumulated. Read More
02.13.15- The Palladium Bull Cometh
Palladium is poised for a sustained bull run.
Platinum and palladium are both used as catalysts in vehicle emissions control devices — catalytic converters.
They create a reaction that oxidizes or reduces toxic pollutants in exhaust, namely poisonous gases nitrogen oxide and carbon monoxide. They're interchangeable with each other as the main catalyst in the converters. Read More
02.12.15- This is the first time I've seen this 'buy' signal for gold since 2009
This is only the fourth 'buy' signal we have had in ten years.
I'm excited to say that I've just had a long-term buy signal on gold.
It's the first such signal I've had since 2009.
And today, I'm going to tell you about it… Read More
02.11.15- We Are Close To A Point Where COMEX Price Manipulation Will Become Ineffective
Readers will undoubtedly remember how gold tumbled last Friday on the unemployment report in the U.S. The headlines in mainstream media attributed gold's decline to the jobs report, as for instance Gold Declines to Three-Week Low on U.S. Payrolls Data via Bloomberg. The price of gold lost more than 2 pct just minutes after the unemployment report came out. The first chart below shows the astonishing rate of decline on the hourly chart. Read More
02.10.15- Silver and Gold Truth Versus Fiat Lies
What do loss of confidence, loss of faith in financial systems, and pervasive lies have to do with gold and silver? The answer begins with: Gold is far more truthful money – central banks can't print it or create it from "thin air." Dollars, euros, yen and others are fiat currency units based on confidence and debt (not assets) and are supported by government mandates that these pieces of colored paper and computerized digits shall be accepted as money. Read More
02.09.15- Gold And Silver: Have You Felt "Manipulated?"
The one thing that the metals have done best for the last 3 years is keeping most investors on the wrong side of the trade. After over three years of this frustrating market action, I am sure those bullishly inclined are worn to the nub. I am also sure you have completely run out of patience. I would not be surprised if you have even yelled at your charts, screen, or investment account at one time or another due to the market action in the metals over the last three years. Read More
02.07.15- Forget The News. Silver 12 – 14?
How are all them facts and figures about gold/silver accumulation by China, Russia, India, et al, shortages at the COMEX, LMBA for delivery of the [non-existent]physical metal, drainage of GLD, unprecedented public demand for coins, accompanied by pretty graphs and charts, working out?
Question – where are the results of all, and we mean all of the above considerations, and more? Have these factors [and they are legitimate], driven the price of gold and silver to unprecedented levels? If not unprecedented levels, have they driven the price of gold and silver to $1,400 and $25? If not, why not? Read More
02.06.15- The
Great Silver Heist
(A Note from your Editor: One of the perks of editing "the Bear" allows me to post my own rants. I originally published The Great Silver Heist in November, 2004. It seems like a revisit is in order. The "Darkside" has many facets. It is not just one bank that is screwing up the world, although J.P. Morgan is certainly doing its share. Recently, Max Keiser initiated a global campaign to "Crash J.P. Morgan". We are very much "on board" with this sentiment. But it is much more than one bank that is responsible for the grossly suppressed price of both silver and gold. Precious metals are not like other commodities. For years the price of both gold and silver were pegged to the dollar. An ounce of silver was worth one dollar, and an ounce of gold was worth twenty dollars. These prices were mandated by the government, not the free market. Now, inversely, the value of the dollar is pegged to the price of gold and silver. The value of the metals hasn't changed, the value of the dollar has tanked, and continues to do so. Consequently, the Sheeple have yet to pick up on this realization. Hopefully, by re-posting the following essay, we can wake a few more up. - JSB) Read More
02.05.15- The
Nature of Money and our Monetary System
As the editor of the Silver Bear Cafe, I try to focus on the ramifications of world events. I try to understand how what's going on now will affect your pocketbook next week, next month, next year. It is my sole intent to help you consider the possibilities which will, in turn, help you prepare for your financial future.
One of the most important aspects of your financial survival concerns your understanding of the nature of money. If you believe that precious metals do not constitute "money", you may have been misled. If you have been misled, who misled you? Why? And "What's wrong with this picture"? Read More
02.04.15- Rising Gold Price Warning Sign Of Future Monetary And Currency Turmoil
Gold has experienced some remarkable and unexpected turn of events so far this year and year-to-date it is significantly higher in four of the seven top currencies (the euro, British pound, Australian and Canadian dollars), and up respectably in two others (U.S. dollar and Japanese yen).
Since its recent lows in November 2014, gold has risen by up to 13% against the USD, 30% against the euro, 18% against the pound, and 32% against the yen. And, the rise against weaker emerging market currencies has been even more significant. Read More
02.03.15- John Embry: I've Never Seen This In My 40+ Years In The Investment Business
While precious metals and their corresponding equities continue to work through a multi-year painful correction, John Embry, Chief Portfolio Strategist at Sprott Asset Management, was kind enough to share a few comments.
"I've seen this sort of 'bearishness at the bottom' phenomenon many times Read More
02.02.15- The
Patriotic and Moral Imperative for Owning Gold and Silver
I pledge allegiance to the flag...
Remember when you learned those words? It was back when everything was simple. The Pledge of Allegiance was written in 1892 by Francis Bellamy, the circulation manager of the Boston based "The Youth's Companion" magazine. The end of the Nineteenth Century was a much simpler time. The world was a much simpler place. It is not so simple anymore. Read More
01.31.15- Probability for A Lower Low Has Increased
Mention is often made that one should wait for confirmation of a particular move in futures before making a commitment, either way. Last week, it appeared evidence was mounting that November could be a possible low for the correction since late 2011. Then, we run across this graph from goldchartsrus.com which shows an inordinate build-up of short positions in silver by what we would call "smart money," "insiders." Read More
01.30.15- Russia increases gold purchases by 123%
The Central Bank of Russia bought a record amount of gold in the first 11 months of 2014 spending an estimated $6.1 billion. Increasing gold reserves attempts to reduce dependence on the dollar amid geopolitical tension, Mark O'Byrne of GoldCore, told RT.
Russia's gold purchases accounted for a third of the world's total of 461 tons, according to research by Thomson Reuters GFMS (Gold Fields Mineral Services). The amount of gold bought went up 123 percent from the previous year to 152 tons, worth $6.1 billion at current prices. It's the most Russia has spent since the collapse of the Soviet Union. Read More
01.29.15- Rejoice: A New Gold Bull Has Been Born
The Fed Isn't Raising Rates
Gold is off to its best start to a year since 1980, up about 10%. Why?
Because investors are simply catching on to the fact that the Fed's empty promises of a 2015 rate hike are just that.
Indeed, the ECB's decision to launch its aggressive 1 trillion euro quantitative easing program has all but ensured the Fed won't raise rates.
And gold is roaring back as a result. Read More
01.28.15- Silver Stocks Will Rule In 2015
Graceland Updates
1. Bank economists and bearish gold gurus continue to err, on their gold price predictions. The huge declines they promised in 2014 on the taper never materialized.
2. They promised that 2015 would bring much lower prices. Instead, gold has already rallied strongly, as I told the gold community it would, because of the bullish news that consistently emanates from Asia. Read More
01.27.15- Grandmaster Putin's Gold Trap: Russia Is Selling Oil And Gas In Exchange For Physical Gold
Accusations of the West towards Putin are traditionally based on the fact that he worked in the KGB and therefore he is a cruel and immoral person. Putin is blamed for everything. But nobody ever accused Putin of the lack of intelligence.
Any accusations against this man only emphasizes his ability for quick analytical thinking and making clear and balanced political and economic decisions. Read More
01.26.15- The Most Ominous Quote of the Year
"There is a giant secret stirring under today's market. China, India, Russia and almost every central bank is buying physical gold. I'm guessing that within another year, physical gold will be swept off the market."
Masked by unprecedented PPT support of global equity markets – to ensure Mario Draghi's "QE suicide" is perceived positively – is the stark fact that the announcement failed miserably. What terrifies me most, and was unquestionably interpreted likewise by the world's big money, was just how transparent the ECB's desperation was. Read More
01.24.15- Latest News about the Economy and the Gold Market
Each week, Your News to Know brings you the latest news and critical reads regarding the gold market and the overall economy. Stories this week include: De-pegging of the Swiss franc from the euro causes gold prices to soar, global gold demand to increase by 15 percent this year, and top gold forecaster Ross Norman offers his insight on gold and silver prices for the upcoming year. Read More
01.23.15- Elliott Wave analyst sees much higher gold and silver prices ahead
According to Peter Goodburn of Elliott wave analysts Wavetrack international, Friday's punch higher for many of the mining ETFs, indices and equities broke key overhead resistance levels that now confirms the November/December '14 lows as the finalising levels of the multi-year counter-trend declines that began from the 2008/09 and 2011 highs. This also confirms, reckons Goodburn, that gold and silver bullion have also ended major counter-trend declines that began from the highs in year-2011 at the Nov/Dec.'14 lows of 1131.85 and 14.51 respectively. Read More
01.22.15- ECB To Print Trillion Euros – Gold Could Surge 40% In 15 Minutes Against Euro, Dollar
Mario Draghi is preparing to unveil QE today as the ECB looks certain to announce it's much anticipated quantitative easing (QE) program. The move to print up to €1 trillion euros in the coming months appears to be a fait accompli although it will occur against a backdrop of strong German resistance and many concerns.
Following leaks that mainstream news sources regard as credible, the ECB is expected to announce monthly purchases of €50 billion in government bonds of member states. The scheme is expected to run from March until the end of 2016 – for some 21 months – bringing the total to around 1 trillion euros. The ECB's balance sheet currently stands at about €2 trillion. Read More
01.21.15- Gold Price Model Says Gold Still Undervalued
Gold hit a price low of approximately $1,140 in early November 2014. Since then it has rallied dramatically, possibly because of global fears about the financial system, the Swiss National Bank removing its peg to the Euro, more QE, escalating war in the Ukraine, or simply that gold prices were over-extended and ready to rally.
In my opinion gold reached an important low in November, and in spite of a rising dollar, has rallied since then in dollar terms, and even more in most other fiat currencies. Read More
01.20.15- Swiss pegxit put a $70 rocket under gold prices but just wait for the ECB's QE this week to send prices to the moon
So the Swiss referendum on gold at the end of last year did prove to be a decisive point in the gold market cycle, after all. The fall to $1,138 on the 'no' vote marked the low of the cycle. However, for the rocket to send gold prices to the moon this was 'the right country, just the wrong event,' as Ross Norman of Sharps Pixley told ArabianMoney. Read More
01.19.15- Jim Willie: Gold to Make a Sudden Quantum Leap to $18,000 ?oz
In an interview with Elijah Johnson and Jim Willie on January 15, 2015, Willie says: When the global banking system concludes that the dollar is not going to be working for them anymore, these countries will be looking for a way of dumping them. This will, I think, bring about QE 4 and 5.
Rather than see a dollar crash, the dollar's going to rise, like a rocket. Then you have the gold standard coming in through trade. Read More
01.17.15- Swiss National Bank Rally. Enough For A Change?
It would seem that last week's rally in gold was Swiss National Bank-driven, plain and simple. It is difficult to get a handle on the ramifications of what just happened with the Swiss "unpegging" from the Euro. It was becoming prohibitively expensive for the SNB to keep buying Euros and trashing their own economy in the process. Ostensibly, this is a tale of a central bank telling the US and the rest of the EU, enough! We have had it, and we are now going to be more fiscally responsible. Read More
01.16.15- Did The Swiss National Bank Destroy Central Bank Precious Metal Manipulation?
After the SNB- Swiss National Bank dropped the bombshell on the markets Thursday morning, the prices of the precious metals have gone in one direction… UP. In just two days, the price of gold is up $40 and silver $1.10.
According to Kitco, gold is currently up nearly $16 and silver $.80. While gold was a big winner yesterday, silver is up the highest percentage today. Read More
01.15.15- The Death of Copper -
Copper is crashing. Hard.
No one—and I mean no one—wants anything to do with this base metal anymore. Stinks for anyone playing copper on the long side. But it also gives you a shot at fast, double-digit gains on another metals play… if you know where to look.
More on this hot trading opportunity in just a minute… Read More
01.14.15- Copper Halted After Crashing 8% On LME, Sends AUD Plunging, Futures Dip Under 2000
Today's prime time event hasn't even arrived, that would be the European Court of Justice (ECJ) delivering its final opinion on the legality of the ECB's previously announced OMT program, in less than an hour, and already the fireworks have begun, most notably out of Asia where after yesterday's epic commodity drubbing many were caught with their pants down and margin calls up, and what followed was a classic liquidation puke, when Copper prices crashed over 8% on the LME, to fresh 5 year lows and below USD 5,500/T in London. Read More
01.13.15- The Economy and the Gold Market
Every week, Your News to Know delivers you the latest news and critical reads regarding the economy and the state of the gold market. This week's stories include: Chinese gold purchases increase as the Lunar New Year draws near, the price of gold in euros reaches its highest point in months, and silver in 2015 expected to do even better than gold.Chinese buying more gold as Lunar New Year draws near
As banks and retailers in China prepare for the upcoming Lunar New Year holiday, with local demand for gold set to increase, Reuters reports that premiums on the yellow metal have increased in recent weeks. Read More
01.12.15- The Bull Market is Back – at Least in Non-USD Terms
The gold price most traders are focused on is the dollar price of gold – this is no wonder, as the COMEX is the most important price setting market for gold, and gold is internationally mainly traded in dollars. It is often useful to abandon this dollar-centric view, as for the rest of the world's population gold's trend in local currencies is obviously of greater importance. Read More
01.10.15- John Embry: I've Never Seen This In My 40+ Years In The Investment Business
While precious metals and their corresponding equities continue to work through a multi-year painful correction, John Embry, Chief Portfolio Strategist at Sprott Asset Management, was kind enough to share a few comments.
Speaking to the abysmal sentiment toward the sector, John explained that, "I've seen this sort of 'bearishness at the bottom' phenomenon many times …There was a really ugly bear period between '74 and '76 which I remember really well..." Read More
01.09.15- Money, Gold And Liberty In 2015 & Beyond
Looking Back at 2014
2014 was quite an eventful year for global markets: Janet Yellen became the new Chairman of the Federal Reserve; we were on the brink of war in Crimea, and Germany won its fourth world cup title. Many countries around the world held elections, the Scotts and the Swiss had referendums and both of them decided to maintain the status quo, whether it was against Scottish independence or the Gold initiative. Read More
Is 2015 – the Year the FED comes to the aid of gold and silver investors?
In a moment we will provide our answer to this interesting question.
The correction in the price of gold and silver is now in its fourth year, and in the words of W. D. Gann: "When time is up – price will turn."
01.07.15- FORT KNOX: Tainted With Radioactive Gold?
Not only is there conjecture that some or most of the gold at Fort Knox may be missing, but also there is speculation that some radioactive gold made its way into U.S. Treasury Gold Reserve. The movie Goldfinger, in which James Bond stops a plot to radiate the U.S. gold at Fort Knox, may actually turn out to be more truth than fiction.
One of my readers sent me some information about the Paducah Gaseous Diffusion Plant in Paducah, Kentucky. The plant was built in 1952 and was the only uranium enrichment facility in the United States (wikipedia). Read More
01.06.15- If gold's going to be a winner in 2015 then silver will be the real champion as financial markets implode
Gold and silver prices have jumped since the start of 2015 as safe haven and dollar diversification plays. But this will be nothing compared to the upside gain to come as financial markets really lose it. Precious metal investors know from long experience that when gold prices go up silver does even better and vice-versa. Read More
02.05.25- Gold US$5,000…Is it Possible? And When?
If we look at a graph of the '70s gold bull market (graph #1) and superimpose the typical bubble shape, we can clearly see that it closely fits the bubble model but stopping short of a Total Despair Phase. Those like me who lived through the euphoria of the '70s and the capitulation of the '90s, I am sure, will agree with the description of the gold market as a bubble. Looking at the graph below it doesn't look like gold was in a Despair Phase but I remember well in the '90s statements by many in the financial industry that gold was a relic of the past, a useless metal and that its fundamental value was zero, predicting lower prices of about US$50 and some even zero. These statements are very characteristic of a major bottom. Read More
01.03.15- 2013, 2014, 2015…Expect More Of The Same
Each week, we prepare a selection of newsworthy events to which the current market can explained, somewhat. This week is no exception, save one difference, that being so many want to see/hear some kind of look into the prospects for the year ahead. Our look ahead starts with a rear view mirror look back at 2014. In hindsight, we began 2014 with a positive outlook, but that quickly changed into the view that 2014 could turn out to be just like 2013…no big rally. On that score, we were on point. Read More
Has JPMorgan Accumulated The LARGEST PHYSICAL SILVER POSITION IN HISTORY!?!
A couple of weeks ago, a long time subscriber correctly pointed out that I seemed to be speculating more than usual in my conclusion that JPMorgan was the big buyer of Silver Eagles and had accumulated as many as 300 million oz of silver, including Eagles and bullion. The subscriber noted that I usually relied on hard core facts that could be documented and not on speculation.
As it turns out, I believe there are sufficient number of hard facts behind my speculation, but I had failed to point them out.
So let me present the facts, as I see them, that point to JPMorgan having amassed the largest physical silver position in history. Read More
01.01.15- Shanghai Shock to Shatter the Gold Market!
The Quantitative Easing initiatives have been declared as stimulus and successful in sustaining the US financial system
While having been able to continue the debt floats, the many market props, providing coverage for USGovt debt securities and mortgage backed securities which nobody wants, the initiative is hardly stimulus.
The hyper monetary inflation does what we always learned it did, as in from school for 50 years, dole out its powerful corrosive effect Read More
12.31.14- Why You Need to Own Gold In 2015 and Beyond
Debt is a rock, and spending reform is a hard place. The taxpayers of today and tomorrow are saddled with crushing obligations. Yet we must watch helplessly as leadership in Washington DC continues expanding government -- borrowing what they can and simply printing what they cannot.
Each day more Americans sense a reckoning is coming. Our government is increasingly insolvent. The unbacked dollar is certain to be worth less, and it may not survive at all. Read More
12.30.14- The Perfect Crime In The Silver Market
A couple of weeks ago, a long time subscriber correctly pointed out that I seemed to be speculating more than usual in my conclusion that JPMorgan was the big buyer of Silver Eagles and had accumulated as many as 300 million oz of silver, including Eagles and bullion. The subscriber noted that I usually relied on hard core facts that could be documented and not on speculation. As it turns out, I believe there are sufficient number of hard facts behind my speculation, but I had failed to point them out. So let me present the facts, as I see them, that point to JPMorgan having amassed the largest physical silver position in history. Read More
12.29.14- Counting Your Chickens in Dollars
With silver, you have a rare physical commodity that you can literally take into your possession.
It's known that quantity, in investment form, is far less than what is perceived by the mainstream. And as a direct consequence, orders of magnitude less than the price indicates.
A never-ending flow is demanded from strategic industries, while the demand for physical continues to grow stronger, despite price - a clear indication of its monetary role and a hint at the ultimate separation from its paper tether. Read More
12.27.14- Blood Flowing in the Streets: The Capitulation Bottom Has ALREADY Occurred!
We were planning on recording an abbreviated show this week, but there's so much going on deserving coverage that the minutes racked-up and you'll barely notice the difference.
To the surprise of no one, the cartel did push precious metals prices down this week. But as I noted on Sunday (GOFO Update: Physical Market Headache For Gold Cartel and My Short-term Forecast), the tight physical market as can be seen by the objective measure of GOFO rates has been giving the cartel one heck of a headache, keeping them in "managed retreat" mode. Read More
12.26.14- Sound Money and the Ring of Truth
We Americans no longer carry gold and silver money in our pockets and purses as our grandparents did during their lives. But we still carry the history, legacy and spirit of those gold and silver coins in our language – with more meaning than you might imagine.
"Sound money" has a clear message recognized for centuries around the world. It describes the musical, metallic ring of a gold, silver, or copper coin dropped on any hard surface of glass, stone, wood, or metal. Sound money literally refers to real wealth, with a natural, unmistakable signature of honesty and integrity, as opposed to the swishy paper and plastic debt used almost exclusively today. Read More
12.25.14- Origins of a Silver Stacker
It truly is an honor and a privilege to be a guest columnist on the rising-star website, aptly amed the TheWealthwatchman.com. As WW has stated in his column, "Let me humbly remind you, that you and I….are nobodies!" So I said to myself, " Self, what could you have to offer if you wrote something?" The most profound thing I think I could share with the community, is something that no one has heard before; my silver stacking story.
Opening my eyes to the matrix has been the most dramatic time of my 40 something years on this planet. All that I thought I understood about money, value, and trust has been burned away in the last 4 years and has left me with eyes that hurt! Read More
12.24.14- And Now, for Something Entirely Different: A lie, if repeated often enough, will be accepted as truth.
I am so terribly sick of all the lies which come out of D.C., the media and their devotees. The 9/11 scam, which everyone believes, other than people who have a brain, or that a little pipsqueak with a cheap Italian rifle could kill JFK from a 6th floor window, with trees in the way, which everyone believes, other than people who can THINK. I am so sick of the global warming fraud that I'd like to blow off the face of the earth, anyone who would believe such an absurd thing. Now, it's "carbon" and "carbon footprint," whatever that is supposed to be, which all the calamity howlers are screaming about, when it is all so untrue and a total fraud. Read More
12.23.14- Path Of The Gold Price Is In China's Hands
The predictable 'No' vote in the Swiss gold referendum did indeed prompt a quick knee-jerk downwards reaction in the gold price, this was exceedingly short-lived, the result having been already assumed by the markets, and an immediate bounce back took the gold price back above the $1200 level and the price has stayed within range of this figure for nearly a month now, although there has been some intra-day volatility, perhaps due to short covering coupled with the big money players in the market seeming loath to allow any significant upwards breakout. Read More
12.22.14- Gold News: Forget the Metal, It's Time to Buy the Miners
When you read the "gold news" it's filled with the often volatile ups and downs of the barbarous metal's price. Gold is, after all, a commodity. And since peaking in late 2011, the trend has mostly been down. But it's been even worse for gold miners, which have seen their shares fall even further. That could open an opportunity for investors seeking to add gold to their portfolio.
An interesting metal Gold is a hard asset and is considered a safe haven when the market is stormy, often zigging when the broader market zags. That's partly because gold can be used as a form of currency, you know, when modern financial systems collapse and the zombies attack-- although if zombies attack I'm reaching for my shotgun, not gold.Read More
12.20.14- Nothing Is Ever As It Seems And No Respite For PMs.
An eminent collapse of the US fiat petrodollar? China and Russia, with their enormous build-up of physical gold over the last several years, waiting in the wings to lead a new gold-backed currency? The growing BRICS alliance to unseat the elite's Western NWO and its banking system?
A growing likelihood on the first question, and no and no to the latter two questions. In fact, the elites are probably doing more to destroy the fiat Federal Reserve "dollar" than any other group or alliance. There has been talk about the US destroying the dollar for at least the past four years. Kyle Bass even made the pronouncement whereby a senior Obama administration official told him, "We're just going to kill the dollar." Read More
12.19.14- Grandmaster Putin's Golden Trap
Very few people understand what Putin is doing at the moment. And almost no one understands what he will do in the future.
No matter how strange it may seem, but right now, Putin is selling Russian oil and gas only for physical gold.
Putin is not shouting about it all over the world. And of course, he still accepts US dollars as an intermediate means of payment. But he immediately exchanges all these dollars obtained from the sale of oil and gas for physical gold! Read More
12.18.14- Gold Bullion Dealer: We're Beginning To See a Heavy Buying Demand
As precious metals and commodity markets are continuing their downward slump, Andrew Schectman, President of bullion dealer Miles Franklin was kind enough to share a few comments.
Andrew buys and sells bullion to individual investors on a day-to-day basis.
You'd expect that in a bear market for gold, business at a company that sells gold and silver coins would drop off. Surprisingly, Andrew reports that's not the case. Read More
12.17.14- Opposing Forces At Play In The Precious Metals Complex
Precious metals had a hard time in 2014. However, this year proved to be not as catastrophic as last year, as the gold price remained in the trading range which was established last year after the waterfall price declines.
The "good" news for gold bulls is that the bottom of the trading range has been tested a third time, in particular on November 10th 2014. Readers undoubtedly remember how the previous two tests took place in June 2013 and on the very last day of 2013. Read More
12.16.14- 17 Reasons Why I Trust Silver
War and Inflation – 3 reasons:
12.15.14- The Derivatives Nightmare & Precious Metals Move To Strong Retail Hands
12.13.14- The
Nature of Money and our Monetary System
As the editor of the Silver Bear Cafe, I try to focus on the ramifications of world events. I try to understand how what's going on now will affect your pocketbook next week, next month, next year. It is my sole intent to help you consider the possibilities which will, in turn, help you prepare for your financial future.
One of the most important aspects of your financial survival concerns your understanding of the nature of money. If you believe that precious metals do not constitute "money", you may have been misled. If you have been misled, who misled you? Why? And "What's wrong with this picture"? Read More
12.12.14- Current Price of Silver $50: Based On The Historic Oil-Silver Ratio
The current price of silver should be $50 an ounce, based on the historic 1960's oil-silver ratio.
Unfortunately, this is not the case as the world has siphoned the majority of its wealth into the highly leveraged financial paper industry… one that has no future.
When the world was based more on a "Physical Economy", and not the current Financial-Derivatives Market, the price of silver (and gold for that matter) was closely tied to the price of oil. This can been seen in the chart below: Read More
12.11.14- Silver Demand for Industrial Applications Forecast to Reach Nearly 680 Million Ounces in 2018
(Washington, D.C. – December 10, 2014) Total silver industrial demand is forecast to grow 27 percent, adding an additional 142 million ounces of silver demand through 2018 compared with 2013 levels, according to a new report issued today by the Silver Institute. Half of this growth will be accounted for by the electrical and electronics sector, but additional demand will be due to growth in other industrial applications, as highlighted in the report entitled, "Glistening Particles of Industrial Silver." Read More
12.10.14- NEW UPDATE: Silver Eagle Sales Surpass 2013 Record At Nearly 43 Million
After the U.S. Mint updated its bullion figures on Monday, 2014 Silver Eagle sales reached a new annual record surpassing last years total by nearly 200,000. Not only was 2014 a banner year for world's most sought after official coin, the Silver-Gold Eagle ratio also hit a new record high.
The U.S. Mint sold nearly a half million Silver Eagles over the weekend, putting the total for December at 1,317,000.
This strong weekend demand pushed total annual Silver Eagle sales to 42,864,000 over last years previous record of 42,765,000. Furthermore, there are still a few more weeks remaining in the month. Read More
12.09.14- Silver & Gold At 5000 Year Low
But you know I'd like to sort of leave people with this: If you really analyze it gold and silver are really at a 5,000 year low. They have been either our money or connected with our currency backing our currencies for 5,000 years and they've — governments have slowly sort of weaned us off gold and silver and for the last 43 years is the first time in all of human history that gold and silver are not either our money or backing our currency. They have no connection with the global monetary system other than people like Ben Bernanke say it's tradition to hold it for some reason central banks are buying it. But at the same time after it went into a tiny little bubble in 1980, the world experienced a brutal bare market that lasted 20 years and by the year 2000 investors gave up on it; so here you don't have any country on the planet wanting it or using it as their money. Read More
12.08.14- Gold-Backed Currency? Not Any Time Soon, But Be Prepared.
Last year, many in 2013 were calling for the price of gold and silver to double, and more! Then came 2014 and those dashed hopes were pushed back to the second half of 2014. Earlier, in the first half of the year, we said that the second half could likely be more of the same, as in 2013, [See 2014 Could Be A Yawner]. With just a few weeks away from the end of the year, prospects for 2015 can equally be brought into question re PM price appreciation.
Is the petrodollar on the way out? More frequently, the signs say yes. Is a gold-backed currency standard waiting to replace it? Beliefs, at least in the PM community, remain high, but facts to substantiate the beliefs are hard to find. Read More
12.06.14- Gold Price Manipulation Goes Mainstream On German TV
Public TV channel 3sat, which is a cooperation between Germany, Austria and Switzerland, broadcasted a short documentary on gold price manipulation on May 9, 2014. More and more mainstream news outlets are covering the allegedly gold price manipulation, after evidence is piling up and many other market manipulations, like LIBOR, are coming out.
Global gold prices may have been manipulated on 50 per cent of occasions between January 2010 and December 2013, according to analysis by Fideres, a consultancy. Read More
12.05.14- 12 Game-Changing Catalysts for the Price of Silver
There are a number of indicators that silver is extremely undervalued. Key is the gold-to-silver ratio, which has continued to widen with silver prices languishing at around $16 an ounce, which is down 14% over the last year, despite gold's recent rally.
However, I believe this is set to change with two emerging catalysts that over the long-term will drive the price for silver exponentially higher. Let me explain why. Read More
12.04.14- Trading Pattern Has Changed …Drastically!
Gold and silver have now had three "outside reversal" days to the upside within the last three weeks. Those who follow the precious metals were absolutely shocked (after being shell shocked) to see this type of action the first time in many a moon…not to mention a "three'fer!" For those of you who don't know what an "outside reversal day" is, let me briefly explain. It is the "outside" part which is important and without it, the "reversal" part is much less meaningful. For this to occur, trading for the day must be both lower and higher than any trades performed the previous day. In other words, the "bar" on the chart must totally engulf the action of the previous day and then close in the opposite direction of the previous momentum. Outside reversal days are very rare in any market. One of these may only occur once in a year's time or even longer. Read More
12.03.14- "I am a hard working taxpayer who is getting pretty fed up. . ."
So the Swiss have decided not to force their central bank into underpinning its reserves with harder assets than increasingly worthless euros. At least they had the chance to vote. But in the bigger picture, the rejection of the "Save Our Swiss Gold" initiative flies in the face of a broader trend towards repatriation and consolidation of sovereign bullion holdings – following on the heels of similar attempts by the Bundesbank, the Dutch central bank, for example, recently announced that it had moved a fifth of its total gold reserves from New York to Amsterdam. Read More
12.02.14- The Answer to this Question Will Change Silver Forever
Finally, Justice!
First of all, my brothers, I wanted to let you know that things will all soon be fixed in the contractual, derivative silver and gold markets! You heard me correctly, things will be made "right as rain", and all those responsible for helping the fraud and rigging within these markets will be brought to justice! Wanna know why? Well, look no further than this latest announcement by the CFTC!
Washington, DC — The U.S. Commodity Futures Trading Commission (CFTC) today launched CFTC SmartCheck, a new national campaign to help investors identify and protect themselves against financial fraud. The comprehensive campaign includes a new website, a national advertising campaign and interactive videos that will help investors spot investment offers that are potentially fraudulent. Read More
12.01.14- Anti-Gold Propaganda Prevails In Swiss Vote!
This morning the final votes were cast on the Swiss Gold Initiative (most votes were submitted via post). As we speak the final votes are still being counted however we already know: The initiative has been rejected!
The majority of votes of most individual cantons (some cantons' votes are yet to be released) were against the initiative. As Switzerland has a federalist structure, this by itself already means that the initiative has been rejected. Read More
11.29.14- Here's the most bizarre currency you've probably never heard about:
Forget gold, perhaps Americans should go back to the Whiskey standard!
John Lynn was bound and gagged, as the angry mob tied him to a tree and poured a barrel of scalding hot tar over his freshly shaven head and coated him in feathers.
It was June 1794 and the crowd was absolutely frantic. They were taking justice into their own hands. Lynn's crime, in their eyes, was having extended lodging to a federal tax collector, who'd come down to enforce a recently imposed excise tax on whiskey. Read More
11.28.14- Russia's monetary solution
The hypothesis that follows, if carried through, is certain to have a significant effect on gold and the relationship between gold and all government-issued currencies.
The successful remonetisation of gold by a major power such as Russia would draw attention to the fault-lines between fiat currencies issued by governments unable or unwilling to do the same and those that can follow in due course. It would be a schism in the world's dollar-based monetary order. Read More
11.27.14- Solar Shines on Silver Demand
Back in the olden days, before the advent of digital cameras, photographers used a curious thing called film. Surely you remember having to feed a roll of the stuff into your analog camera. Then you'd take the roll to your local drug store and wait a week for it to be developed, only to discover that you had the lens cap on during the entirety of Cousin Ted's birthday party.
What some people don't know about film is that it's coated with a thin layer of silver chloride, silver bromide or silver iodide. Not only is silver essential for the production of film but it was also once necessary for the viewing of motion pictures. Read More
11.26.14- Swiss Gold Update: What a "Yes" Vote on Nov. 30 Means for Gold Investors
A Swiss Gold Referendum will take place on Nov. 30, 2014 — just 5 days from now. Its terms prohibit the Swiss National Bank (the central bank) from selling any gold, require the bank to purchase gold up to the level of 20% of Swiss reserves and require that all Swiss gold held abroad be returned to Switzerland.
If it obtains a majority "yes" vote, it becomes law despite the objections of bankers and politicians. This would deliver both a demand shock and a supply shock. Read More
11.25.14- Silver: What COT Analysis Tells Us
Each week the CFTC publishes a Commitments of Traders Report (COT) in which "non-commercial" and "commercial" long and short futures positions are reported. Many people have expressed doubts as to the validity, accuracy and consistency of the data. However, my experience is that the data is mostly relevant, accurate, and useful in the long term, but not necessarily important each week.
Graph the price of silver (green) on a log scale against the COT data showing "non-commercial" net longs less the "commercial" net longs. In theory this shows when the "smart" money is positioned to profit from high or low prices. Read More
11.24.14- Is COMEX being cornered?
It is with a deep sense of gratitude that I have had all of you as friends and associates during what has been a long war, not a good war, but a very long "financial war". As you know from these writings; this has been a war conducted by the Federal Reserve against the entire world, aided and abetted by major international banks via the manipulation of most every market on the planet. The ethics and morals our country was originally built on ...be damned! Read More
11.22.14- Is the Golden Rule Broken?
He who owns the gold rules.
That has been the clichéd "wisdom" for some time. However it appears Russia has become the Rodney Dangerfield of the Golden Rule, for it certainly is not getting any respect. To the contrary, the Golden Rule has become subservient to Military Rule, the last remaining leg upon which the US rests in its ongoing inability to retain respect internationally.
As formidable as US military might is, it is not always effective in execution, and to date, it has only been [in]effective against those nations that have no military might, Iraq, Libya, Afghanistan. Read More
11.21.14- Gold-Silver Ratio Nears Bullish Breakout
The gold price was drifting lower on Thursday, unable to find support from slightly higher than expected inflation numbers in the US that came in at 1.8% and solid Swiss gold export data.
At $1,192 an ounce by mid-afternoon in New York gold investors can still boast of a 4.4% appreciation over the past fortnight.
Silver bulls have enjoyed a nearly 5% rise from 56-month lows of $15.41 an ounce hit November 6. The closely watched gold-silver ratio on Thursday was roughly 73.5. Read More
11.20.14- Four Horsemen of the Apocalypse or the New Dawn
There will be many more deaths – think Middle East, Ukraine, Africa, and the next big war.
A shortage of food, whether inspired by drought, politics or war has been normal throughout history. Today there are food shortages in many countries and there are nearly 50,000,000 people in the U.S. on food stamps (SNAP) – the modern equivalent of "bread lines" and "soup kitchens." Read More
11.19.14- Cheap Gold is Never Coming Back
I'm seeing a lot of iffy low-ball price targets for gold, and it reminds me of my halcyon days when I first started driving.
In 1998 I chipped in with my brother and got a 1988 Oldsmobile Cutlass Ciera. It was baby blue with royal blue dual couch seats, and within a week in the high school parking lot the "L" was mysteriously chipped out of the model name plate.
Regardless, it was a great car. And even when making minimum wage at a state park for half a year, I had no problem topping off with gas at $1.06 a gallon. Read More
11.18.14- Are You a Silver Stacker? This Figure Will Make Your Head Spin!
Sometimes, it behooves us to revisit some basics, when valuations are strained beyond all limits of credibility and belief. When you really need that splash of icy-cold water on your face, ya know?
Case in point, this past Friday, in episode 2 of the Clarion Call, I took some time fleshing out an astonishing dollar figure about silver. If you're a subscriber on the Watchman's YouTube channel, then you'd already know what it is, and if you're not, what are you waiting for? *nudge nudge* Read More
11.17.24- The Bottom Is In!
This past Friday was a near carbon copy of the previous Friday for the precious metals. Both were "outside reversal" days where the overnight and morning sessions were quite weak, only to bottom and then reverse to the upside strongly on very heavy volume by the day's end. First, this type of action is almost unheard of for precious metals and has happened only a handful of times over the last 15-20 years. Also, both reversals were quite large from the day's early lows to their final closes, the range was 3-4% which obliterated the long held "2% rule". Read More
11.15.14- 'Gold Wars' - Swiss Gold Shenanigans Intensify Prior To November 30 Vote
'Gold wars' are intensifying with just 16 days left to polling day in the Swiss Gold Initiative.
The Swiss National Bank (SNB) and establishment parties went "all in" during the week and intensified their campaign. They suggested that passing the Gold Initiative would be a 'fatal' for Switzerland and would be positive only for speculators. Read More
11.14.14- Ted Butler To Silver Miners: COMEX Is Responsible For Low Silver Prices
This is an excerpt from Ed Steer's daily gold and silver newsletter (recommended to subscribe):
As usual, silver analyst Ted Butler came out with his mid-week commentary yesterday—and he had something to say to all the primary silver producers out there that are prepared to listen and save themselves before they go bankrupt—and take all their shareholders, including me, with them. Read More
11.13.14- "Now Is A Good Time" To Buy Gold - Fidelity Investments
Joe Wickwire, research analyst and portfolio manager at Fidelity investments, presented some very grounded, reasonable arguments as to why one should buy gold at the LBMA Precious Metals Conference in Lima, Peru which concluded on Tuesday.
Fidelity Investments are a largely family owned mutual fund and financial services company. It is one of the largest mutual fund and financial services groups in the world. Founded in 1946, the company has since served North American investors. This year they were voted best investment company in an online broker review by Stockbroker.com. They have gradually moved up in the rankings from eighth place in 2011. Read More
11.12.14- Rick Rule: "I Believe That Arithmetically, We're Locked In A War That We Can't Help But Win"
During a time in which sentiment towards natural resources is bordering on doom, Rick Rule, Chairman of Sprott U.S. Holdings was kind enough to share a few comments.
Speaking first toward the phenomenon of market capitulation Rick noted that,
11.11.14- $15 Silver? You Can't Have Any!
Here we go again, silver has been trashed to $15! But don't fear as this "trashing" in my opinion is going to be like Custer's last stand, let me explain. Just as in past episodes, the artificially suppressed prices have brought out 1,000′s of "Indians" all over the world as buyers of physical metal. I use this analogy of "Indians" because prior to this last 5 years, it was in fact consumers from India (whom are so very price sensitive) who would step up in the physical market to eat up supply if the price dropped. Read More
11.10.14- Do the Swiss People Understand that Gold is Money?
Growing Distrust of an Increasingly Centralized Government Among the People of Switzerland
All the eyes of hopeful believers in freedom and individual liberty on this planet are set on Switzerland and the upcoming "Gold Initiative" vote. On November 30th, the Swiss people can correct a mistake made 14 years ago and return to a currency backed (partially) by physical gold.
Some of us are still aware, while others have only recently realized, that a strong currency is the primary guarantee for the sovereignty, stability and prosperity of a nation, as well as a safeguard of the freedom and liberty of its people, because it offers the best protection against government despotism. Read More
11.08.14- Physical Gold Shortage Worst In Over A Decade: GOFO Most Negative Since 2001
The last time there was an systemic physical gold shortage was in July 2013. It is then that, for the first time in 5 years, the 1-month Gold forward offered rate, or GOFO, went negative. We said:
11.07.14- A Sunny Silver Forecast: Low Price Today Means High Price Tomorrow
Solar power has been the next big thing in energy for as long as most people have been alive. But it was always too expensive to be anything more than a niche technology, attractive more for its coolness than its efficiency. That has changed, in a big way.
According to a report by Deutsche Bank, generating electricity from sunlight is now as cheap as getting it from coal in most US states when current subsidies are included. Extrapolate the inexorably-falling cost of solar just a few more years, and the subsidies won't be necessary. Read More
11.06.14- American Financial Markets Have No Relationship To Reality
As we have demonstrated in previous articles, the bullion banks (primarily JP Morgan, HSBC, ScotiaMocatta, Barclays, UBS, and Deutsche Bank), most likely acting as agents for the Federal Reserve, have been systematically forcing down the price of gold since September 2011. Suppression of the gold price protects the US dollar against the extraordinary explosion in the growth of dollars and dollar-denominated debt. Read More
11.05.14- Pricing Gold in the Real World
As we see the price of gold and silver dragged lower once again in our Hostage Markets; a reality-check is badly needed – since we certainly get no reality from the Corporate media. However, while the mainstream media provides no "reality", it does provide consistency.
As any knowledgeable reader already knows; gold (and silver) is both a commodity and a "monetary metal" (i.e. real money). With respect to the perverse reporting of the Corporate media; the pattern has been unequivocal. Whenever it has some bearish fiction to distribute about the monetary fundamentals of gold; it treats gold as a monetary metal. And whenever it has some bearish fiction to distribute about the commodity fundamentals of the gold market; it treats gold as a commodity. Read More
11.04.14- Ted Butler: The Silver Nightmare Will Be Over Soon
The argument for a near-term monster rally
Halloween couldn't have been more terrifying for silver investors. The gray metal cracked under $16/oz on Friday, a price not seen for nearly half a decade.
For years now, it has seemed like silver has been beaten down so badly its price couldn't go lower. But then it has.
Why has silver seen such a gut-wrenching price decline? (now down 2/3 compared to its high in late 2011). And will it ever see brighter days again? Read More
11.03.14- Now Is The Time To Buy Gold & Silver
If ever there was a time to buy gold and silver now is the time! The Delta turning points have never failed. I started working on Wall Street in 1956 with Carl M. Loeb, Rhodes & Co. In 58 years of working on and dealing with the pursuit of market timing, there has never been a more obvious buy point for any item as there is for gold and silver right now!!! If you want to know more about the Delta Turning points you can obtain a subscription for $35.00 a month.
Gold bottomed the same day that the Dollar Index topped. Read More
11.01.14- Elite Supernova Death Dance In PMs? + Monthly Charts
On several occasions, over as many months, comments have been made here to the effect that reading developing market activity is the best source for knowing what to expect, moving forward. Most people have a need to rationalize the markets by coordinating known events with the current price. Last year, it was how many record coin sales around the world would impact the market, then the number of tonnes China and Russia were importing. Lately, the opening of the Shanghai Gold Exchange where true price discovery could be expected, the ongoing disappearance of reserves held by COMEX and LBMA, etc, etc, etc., none of which had the market impact for which so many had hoped. Read More
10.31.14- Trick or Treat: The Drain Of JP Morgan Gold Inventories Continues
Just in time for the Halloween Spooks to come out and play by slashing the prices of the precious metals, JP Morgan (vampire squid), experienced another ghastly withdrawal from its gold inventories today. Something quite eerie seems to be taking place as the majority of Comex gold withdrawals are coming out of the dark dungeons at JP Morgan Chase. Read More
10.29.14- Physical Silver Being Drained + A New Silver Miner Research Report
Thru today (Oct 28) the U.S. mint has sold 4,365,000 silver eagles. This is by far the highest total for October on record, with 3 business days left in the month. It remains to be seen if 2014′s yearly total will exceed last year's 42,675,000. But if November and December continue at the September/October 4 million-plus rate, 2014 will smash last year's record. Either way, the U.S. mint is selling more ounces of silver than all U.S. mines combined produce annually. Read More
10.28.14- Gold or Gunfire: Hedging Against the Collapse of the Dollar
A global economic collapse has become unavoidable, said former chief economist of the Bank of International Settlements (BIS) William White in response to the BIS' quarterly report in September 2013. Experts forecast that a global economic collapse may occur, overnight, some time at the end of 2014 or in 2015. The fact that private interests are holding the U.S. Federal Reserve and the Central Bank of England as well as the Bretton Woods institutions in a state of capture makes it improbable that the governments of the USA, UK and EU could prevent a collapse. Read More
10.27.14- Gold at $7,000 article goes viral in Chinese media
"Gold going to $7,000″, an article today in the Chinese media is going viral and one of the most viewed articles in the financial press. The article references American Jim Rickards and his concept of comparing inflation-adjusted gold prices. Most Chinese economists think that the price of gold should be approximately $ 2,400 / ounce, instead of the current $ 1,235. Read More
10.25.14- Your Personal Gold Standard
There isn't a central bank in the world that wants to go back to a gold standard. But that's not the point. The point is whether they will have to.
I've had conversations with several of the Federal Reserve Bank presidents. When you ask them point-blank, "Is there a theoretical limit to the Fed's balance sheet?" they say no. They say there are policy reasons to make it higher or lower, but that there's no limit to the amount of money you can print. Read More
10.24.14- Prepare for Global Gold Confiscation and Orwell's 1984, Warns Rickards
Microchips embedded in the arms of citizens to track their activities, the total destruction of the middle classes and a cashless economy where an authoritarian state can freeze the accounts of dissenting citizens excluding them from all economic activity….. These are all part of the cheery scenario painted by the highly respected author and IMF-insider with connections to the Pentagon, Jim Rickards in his most recent article for Agora Financial. Read More
10.23.14- Why Gold Is Undervalued...
And poised to re-price upwards from here
Gold has been in a bear market for three years. Technical analysts are asking themselves whether they should call an end to this slump on the basis of the "triple-bottom" recently made at $1180/oz, or if they should be wary of a coming downside break beneath that level. The purpose of this article is to look at the drivers of the gold price and explain why today's market value is badly reflective of gold's true worth. Read More
10.22.14- Silver Myths Smashed, Pt. 5: The 4 Little Letters Some Use to Dismiss Silver
As we finish up this Silver Myth-Smashing series, I'd like to say how I've been amazed over the past several weeks to hear so many personal accounts from folks who've been inspired to buy even more silver. To read account after account from shield brothers, charging headlong into High-Frequency-Traded firestorms, and inflicting even more silver casualties upon our common foe, is a most refreshing thing.
I've been inspired by you all, and I salute each and every one of you. Read More
10.20.14- Blood in the Streets to Create the Opportunity of the Decade
Gold stocks staged spring and summer rallies this year, but haven't able to sustain the momentum. Many have sold off sharply in recent weeks, along with gold. That makes this a good time to examine the book value of gold equities; are they objectively cheap now, or not?
By way of reminder, a price-to-book-value ratio (P/BV) shows the stock price in relation to the company's book value, which is the theoretical value of a company's assets minus liabilities. A stock is considered cheap when it's trading at a historically low P/BV, and undervalued when it's trading below book value. From the perspective of an investor, low price-to-book multiples imply opportunity and a margin of safety from potential declines in price. Read More
10.18.14- Miles Franklin All Star Silver Panel Webinar
10.17.14- The Dollar Will Be Sacrificed And Gold Will Soar
This isn't 2008. Those that are expecting fireworks for the U.S. dollar if this bear market continues are in for a rude awakening. The setup for the dollar is completely opposite to what happened leading into it's mega run in 2008. Let me explain.
The dollar was approaching a 3 year bear market heading into late 2008 as the stock market was beginning to crash. And the bears were out in full force proclaiming the death of the dollar right at the bottom. Read More
10.16.14- Gold Prices Since 9-11
The world as we knew it changed after the dot-com crash of 2000 and especially after 9-11.
What do the charts show? Read More
10.15.14- Ted Butler's Silver Price Outlook – Why This Time Could Be Different
The Commitment of Traders Report, for positions held at the close of Comex trading on Tuesday October 7th 2014, did not change much compared to a week earlier. The reporting week included October 3d on which silver was trading at its absolute lows. According to Ted Butler these lows didn't mean much, as there was so little volume associated with them, that they were more fishing expeditions by JPMorgan and their High Frequency Trading buddies, than anything else. The powerful rallies [with high volume] off those lows pretty much negated any improvements in the COT Report that would have shown up if those rallies hadn't occurred. Read More
10.14.14- Silver Myths Smashed, Pt. 3:
So Many Myths, So Little Time
Do ya wanna know the hardest part of about writing a "Silver myth-Smashing series"? It certainly hasn't been figuring out how to dispense with the lies, that's for sure! Silver lies are all brittle eggshells, just begging to be stomped on!
No, the most difficult part is actually choosing which lie to crack open next! There are just so many of these chuckle-inducing myths, that it feels like being a little kid in a toy store. Do I take home the train set or the Batcave? No no, wait! This! A thousand times this! Read More
10.13.14- From Stocks through the Bond and into Gold
Would that be lovely? At least that's this missive's flow, so let's go!
We start with stocks as they're the sizzle at the moment from which we'll then segué via the Bond into Gold. Perhaps better put, stocks are a-sizzle as if the fat is finally being fried off its bacon. However, this bit of bacon is sufficiently flush with so much fat that the present annual period of volatility is far from correcting the crux of a contingent crash. Specific to the S&P 500: -1.5% on Tuesday, +1.8% on Wednesday, -2.1% on Thursday, -1.2% on Friday -- 'tis nothing, by historical context, but seasonal noise -- at least so far. Read More
10.11.14- David Morgan's Secret to Being Grateful, Even at $17 Silver
Manipulation and apathy can't keep silver prices down forever; there is too much demand and too much money sitting on the sidelines. In this interview with The Gold Report, Silver-Investor.com Editor David Morgan tells us why he is grateful for his balanced approach to investing and life. He also explains why he is still excited about four developers that are moving projects forward at any price.
A recent GFMS/Thomson Reuters Silver Institute World Silver Survey shows that while the price of silver dropped 23.6% in the last year, there was actually an increase in demand, particularly from China and India. Read More
10.10.14- Struggling Gold!
It has not been easy being a believer in gold over the past two years. Gold is down about 37% from its 2011 top. The biggest portion of the drop took place over two days in April 2013 when gold plunged roughly $200 from $1,564 to $1,360 when someone dumped 400 to 500 tonnes of paper gold (futures) all at once on the COMEX. The collapse triggered an avalanche of stop loss or stop sell orders adding to the downward plunge. Percentage wise it was 13%. To put this in perspective the percentage drop was not as large as the 18% drop that was seen on January 22, 1980 when gold plunged from $825 to $682 as the 1976-1980 gold bull abruptly ended. Read More
10.09.14- Silver Smashed!!
10.08.14- To buy or not to buy
If I sit back, and close my eyes and recall the exciting days of 2010 and 2011, the recurring thought that comes to me is my desire to have bought more metal when the price was low. I recall walking through an antique store in Centerville Indiana in 2001 and noticing that one dealer had hundreds of silver coins in cardboard holders on the table top for folks to look through, picking out coins for their collections—silver coins, unwatched by security or anyone except the cashier about 30 feet away who was often distracted ringing people up. The shoplifters were after better stuff. The coins were deemed not worthy of even putting in a glass case. Silver was about 4.75 per ounce then. Read More
10.07.14- Demand Explodes, Part 2: China's Coming for the West's Gold
In the past 2 days, the U.S. Mint has nearly sold the entirety of the Silver Eagles sold in the month of July! This also stretches the silver to gold sales ratio to 220 to 1 (if buffaloes are counted).
At a gold to silver ratio of 70 to 1, this means that in dollar terms, 3 times as much silver is being bought than gold!
I cannot remember such a beginning to a sales month in the history of the U.S. Mint. Read More
10.06.14- US dollar rally over as gold and silver bounce back notes Credit Agricole
Just when the consensus was absolutely convinced that the dollar could only go higher it is falling back today and precious metals are rallying. Contrarian analysis rules as we suggested it might earlier today.
Credit Agricole European head of FX strategy Adam Myers discusses opportunities in the foreign exchange market with Manus Cranny, Anna Edwards and Mark Barton on 'Countdown'…View Video
10.04.14- Weekend Rant: Elites V Gold...
Without question, the least understood, least visible force that affects almost everyone's lives, certainly in the Western world, is that of the elites, the moneychangers, the relative handful that controls everything, from the BIS, IMF, and down to the central bankers. These individuals remain nameless and faceless, but their roots are founded by that widely known banking clan, the Rothschilds. Read More
10.03.14- 3-D printing to boost silver
Silver may often take a back seat to gold, but new demand from the tech industry is creating a robust market for this precious metal.
This year alone, the tech industry will likely demand 57% of all silver produced, which represents an all-time high.
Plus, a study prepared for the Silver Institute by the Metals Focus consultancy in London predicts that the demand will grow 5% every year through 2016. This is above the forecast growth for global GDP! Read More
10.02.14- U.S. Dollar is the Last Stop Before Gold and Silver Spike
Alan: Silver has been under pressure. We saw a little bit of a pop when Mario Draghi did his thing last week. This is an environment where precious metals should be off to the races and yet it's been down for gold… they are taking gold out to the woodshed.
David: As far as I'm concerned, and this is not about being right, or being stubborn, this is about my analysis, right or wrong. I really think this is the month where we are going to turn around, meaning that the bottoms for both metals could be tested. Silver broke below the $18.17 low that I have been talking about for a long time. The next level of support is the $17.50 area. Read More
10.01.14- New fiscal year starting point, we feel the Precious Metals bottom is here now!
The meteoric rise in the Dollar took one quarter of a year to rise from a low of 80.00 to the height of 86.335, which happened to be yesterday's high and the end of the fiscal year for the USA's government. Today, our fiat currency stands at 86.155, up 10.8 points from yesterday's close. There has been no change within the economic structure of the country with the exception of continual weakness everywhere because of the rising and export crushing rally in the Dollar and a collapsing housing market. Why the rise? It's a bankers folly at best. Treasuries have rallied a little with the 30 Year Bond rising from 134 to 138 in the quarter, but look weak as more and more nations see no reason to hold onto a product that supports a system that claims its only power is to blow things up if they don't use the fiat they demand to be used. Read More
09.30.14- Silver Is Getting Murdered... How Low Can It Go?
There's a reason they call silver the "Devil's Metal" — following its whipsaw price fluctuations can make you feel possessed by some awful demon.
Since silver is a constantly shifting monetary asset, an investment vehicle, and an industrial metal, the price cycles can leave your head spinning like Linda Blair in The Exorcist.
And by the way it's been going — I have a significant investment in physical silver myself — I'm not above channeling some dark magic to turn this thing around. Read More
09.29.14- Is It Time to Buy PM's?
I am often asked the above question several times each day. It looks like a triple bottom is shaping up in the near future.
Gold is getting close to its cost of production. The gold/silver ratio is going higher indicating that silver is the better value of the two at present. But sitting back and taking a look at the big picture consider the following top 10 list:
• Growth of the Federal Government
The followers of Lord Keynes have the controls of power firmly in hand. A larger central government = larger central power (central planning) = larger drag on the real economy. Ask any small businessman (if you can still find one) about the costs of taxes, regulations and licenses. Read More
09.27.14- Poor Man's Gold!
Silver is the Rodney Dangerfield of the precious metals. It gets no respect. Maybe this chart says why. The price noted in the chart above is as of the end of August. Today it is lower around $17.80. On an inflation-adjusted basis, silver is trading around where it was in either the late 1800's or "heavens above" back around 1780.
Some improvement. Outside of a good run in the mid-1800's and the famous Hunt Brothers spike into 1980 silver has actually been in a long-term downtrend on an inflation-adjusted basis.
Silver has thrust above the long-term downtrend channel so that is positive. It remains down roughly 65% from the high of 2011. As to the inflation adjusted 1980 high, well silver would have to reach to roughly $128 to equal that run. Read More
09.26.14- Shanghai Silver Stocks Continue To Fall As Silver Eagle Sales Explode Higher
As the manipulated paper price of silver heads lower, so are the silver inventories as the Shanghai Futures Exchange.
The silver stocks hit an all-time low today as the price of silver trades in the $17 range. At the peak, the Shanghai Futures Exchange held 1,143 metric tons of silver.
However, today only 7% of that record amount remains.
As we can see from the chart below, silver inventories declined from a high of 575 mt (metric tons) in February, to a low of 81 mt today. Read More
09.25.14- Is Silver Indicating The End Game Is Near?
Gold and silver have suffered a beating this past week. Silver has broken below support levels and at this time the bottom is uncertain. One thing that is certain is that the manipulation taking place behind the scenes is providing a prime buying opportunity. While investors are having another bad day, stackers are enjoying every minute.
It is common belief that the destruction of the currency by unfettered printing should cause a rise in PM's but the manipulation taking place has made pricing PM's a guessing game for the past ten years. Only the final destruction of the fiat empire will usher in the unrelenting rise of gold and silver to their natural free market levels. Read More
09.24.14- Do Not Let Weakness in Gold & Silver Paper Markets Lead Your Wealth Preservation Strategies Astray
A week ago, I wrote an article titled, "Do NOT Let The Strong US Dollar Illusion Lead Your Wealth Preservation Strategies Astray." Today, I am releasing the corollary to that article with this one. I strongly emphasize that just as you should not be fooled by an illusion of a strong US dollar, you should not be fooled by the pro-USD banking cartel similarly-created illusion of weak gold and silver prices in paper markets. While true that I have held a long-term bullish outlook regarding gold and silver, my immediate-outlook in recent months has been markedly bearish in gold and silver as stated on my blog, and in much greater detail in my client research reports. At the very end of last year, I wrote an article "All the Big Banks are Saying Gold Will Crash in 2014, But That's Not What Will Happen". Read More
09.23.14- Has The Gold Price Drop Run Its Course?
The gold price dropped in the last weeks, to close on Monday September 22nd at USD 1212 and EUR 942. Dollar gold is close to retest its bottom for the third time since mid-2013, a price level which was seen only in the summer of 2010. For readers seeking to understand what is going on, we are providing a comprehensive view on the gold market. We take all perspectives into account: price and chart patterns, the technical picture, sentiment, the fuures market, physical demand, gold miners, the influence of the dollar, correlation with commodities, monetary policy and inflation/deflation. Read More
09.22.14- David Morgan: US Dollar is the Last Stop Before Gold & Silver Spike
09.20.14- Gold And Silver – Current Price Is The Story
Forget all the news, all the fundamentals, all the [mostly errant] price projections. There is a reason why a picture is worth more than 1,000 words, and this is one of those times where it is best to focus on pictures of the market, over various time frames, to get a better handle on what to expect moving forward. Put to rest every so-called PMs pundit or blogger that has persistently been calling for higher prices or saying the low is in.
We keep saying that the best and most reliable indicators come from the market. Time to stop listening about what others have been saying about the market and pay closer attention to what the market is saying about others. Read More
09.19.14- The Chart Every Silver Investor Should See
There is a chart that every silver investor needs to see. Especially now, as the Fed and Central Banks continue to manipulate the precious metals lower while propping up the broader stock and bond markets. Even though precious metals sentiment is at record lows, this normally represents a turning point in the gold and silver markets.
On the other hand, the clowns on the financial networks continue to be euphoric about the broader stock markets as they head toward the heavens. The Dow Jones Industrial Average hit a new ALL TIME HIGH reaching 17,265 today. However, if we look at the chart below, we can see a troubling trend. Read More
09.18.14- Just Three Days?
So many topics to choose from today, Russia is pushing back on sanctions and has already begun to cut gas supplies to Europe. The Scottish independence vote which if "yes" means the end to a 1,000 year empire and brings into question the Anglo American banking and financial systems themselves. The ISIS situation and whether (in reality "how") we go back there with boots on the ground or not. We also have the FOMC meeting and statement coming today where we will find out whether QE will be publicly discontinued or not …I say "publicly" because the reality is such that QE will remain forever whether admittedly or in the shadows and hidden from view. We also have news of India tripling their gold demand as new physical gold exchanges open in China tomorrow. The "live" date has been pushed forward by a week or more, I can only wonder what this means because the Chinese NEVER do anything by chance or without reason. Read More
09.17.14- When Complexity Becomes Chaos
Unsound money and finance are fuel for the fires lead to panic and chaos.
Modern achievements, especially in medicine and technology (fueled by cheap energy), have made the human experience longer and easier.
Yet, at the base of it all lays the irrational man, still flinging immorality from the cages of his ongoing existential dilemma. Read More
09.16.14- The Collapse Of U.S. Silver Stocks As Public Debt Skyrockets
The U.S. Empire is in real trouble. This is due to its idiotic business model of selling quality assets while acquiring massive liabilities and debts. Of course, the U.S. Government realizes this is not a sustainable way to do business, but at least for now…. we continue to have our
Furthermore, Americans have no clue that the U.S. Dollar's world reserve currency status continues to disintegrate each passing day as more countries elect to by-pass the Dollar and trade in other currencies… especially the Chinese Yuan. Read More
09.15.14- The Silver Sentiment Cycle
In the early 1970s silver went from "ho-hum" to "enthusiasm" to "wow, who would believe it could go to $6.40?" After the 2008 crash silver went from "going back to 5 bucks" to "enthusiasm" to "wow, who would believe it could go above $45?"
As a reminder, after silver rallied to the then astounding price of $6.40 in early 1974, it crashed back to $3.80 and then traded sideways for 2 years. Less than 3 years later it had briefly traded at $50.00, due to a combination of inflation, debt and deficits, political issues, conflict with the USSR, fear, a market corner, and dollar weakness. Read More
09.13.14- Will The Real Silver Commercials Stand Up?
One of the more persistent flaws in the world's most important price discovery mechanism comes down to a simple question.
How did it come to pass that banks were given access to the commercial category of traders?
It's a given that the market is rigged to high heaven. And it's completely obvious by now how it is accomplished. They only folks left in denial about it have a direct incentive for ignoring it - usually an obvious one. Read More
09.12.14- What's Next for the Dollar and Gold?
One reason markets tend to get a little nervous in September is that it's time for investors to ponder about their asset allocation for the remainder of the year and beyond. With the markets at or near record highs and the US dollar on a roll, what could possibly go wrong? Let's look at what's next for the dollar, gold, and currencies.
A couple of highlights:
09.11.14- A Win-Win Scenario for Gold Investors
Volatility and price drops may be nerve wracking, but the bull market in gold is far from over. In fact, it has barely begun.
To understand why, it helps to look at two prior episodes in the relationship of gold and money that are most relevant to today. These episodes were a period of extreme deflation, the 1930s, and a period of extreme inflation, the 1970s. History shows that gold does well in both conditions.
…neither the inflation nor the gold price spike happened overnight. It took 15 years to play out from start to finish. Read More
09.10.14- Seven Stages Of Empire
"The idea of Gresham's law is simply that people are going to hold on to what's valued and spend what isn't valuable." - David Morgan
This week we revisit David Morgan's insights on the amazing phenomenon that played out for the first time in history over the last 100 years...the simultaneous debasement of all money on a global scale. Gresham's Law is a predictable pattern that plays out in every society as soon as the money is corrupted.
There is no greater proof than checking your pocket, and comparing your local coinage to that which you would have been using 100 years ago. Read More
09.09.14- Hold, Fold, or Be Bold?
Question: What's the best way to determine if Prozac works?
Answer: Look at your gold portfolio.
I read about two dozen articles last Thursday about the gold market, and not one of them had anything positive to say. Technical analysts, mainstream economists, industry analysts—all were bearish for various reasons and timeframes.
Why invest in gold when… Read More
09.08.14- One of the Best Precious Metals to Buy Before 2015
Back in March I spoke about the precious metal palladium, and why this rare metal was headed higher.
At the time, it traded at $780/oz. Yesterday, it was trading at $886/oz. at mid-day, so the predicted upturn played out true to form.
Still, there's another rare precious metal that's set to do as well as - or better than - palladium, but that isn't on too many investors' radar yet.
Here's why it should be...Read More
09.06.14- Silver Squelchers Part 1: And Their Interesting Associates
HSBC USA in recent years was listed on the roster of the Silver Users Association (circa 2006). HSBC, with over 8,000 offices, appears to remain at the "centre" of silver price suppression.
Sir Ewen Cameron whose family traced back into the 13th century, joined the Caledonian Bank in 1859 and afterwards was with the Bank of Hindustan, China and Japan, after which he joined the Hong Kong & Shanghai Banking Corporation—Britain's opium bank for China, and a major conduit for looting silver out of Chinese hands into the possession of the silver squelchers of The Pilgrims Society. Read More
09.05.14- Of Course The Gold Price Is Manipulated…That's The Point!
Throughout history, there have been a constant flow of schemes to try to manipulate the gold price and gold itself in terms of paper money. These have come from governments, institutions as well as from individuals. The aim has always been to either establish the value of currencies or enhance that value in terms of gold. The first key to this is to ensure that the gold price is made in the paper currency and not the price of the paper currency in gold.
At school you probably read the book called the Alchemist, where villains tried to invent formulae where they could transform lead to gold. While what they managed to do was a good confidence trick, they could not replicate gold. Read More
09.04.14- Commercials Cover $2.5 Billion in Gold Shorts in Latest Raid!
Gold has clearly been attacked this morning on a cloudy Tuesday here in the rainy Midwest of the United States.
Clearly, it is because it is raining here that gold has slid below $1,270 at this early hour. Obviously, the Chinese saw the rains coming and wanted to take advantage of this great baptism and its flood to hide their evil actions but my mission in life is to point out these deceptive practices and unmask them! Read More
09.03.14- Hold Onto Your Gold: A Supply Shortage is Coming
As metals prices boomed during the last decade, small explorers and big miners spent billions of shareholder dollars seeking new deposits. Investors wanted the high rewards of a discovery as metals soared in price. At $1,900 per ounce of gold, even mediocre finds could make money.
Richard Schodde, of MinEx Consulting, has studied past exploration cycles in detail. He says we are seeing a tightening of the sector, as the availability of capital has plummeted. Costs of exploration are coming down as companies cut back on high-salaried employees and reduce operating costs.
The following chart from MinEx shows exploration expenditures rising quickly during the boom years: Read More
09.02.14- A Warning to Those Grown Bored with Gold
I'm starting to warm once again to gold. Like many of you, Inever gave up on it, I just grew too bored to care. With the bear market in bullion about to enter its fourth year, who could be blamed for losing interest? Gold has looked so punk for so long that every time it rallies sharply, I get that nagging feeling, as you probably do, that we're about to get sandbagged for the umpteenth time. So why the change of heart? All credit to Richard "Doc" Postma, a friend and regular guest panelist with me on interviews with the (Al ) Korelin Economic Report. Doc, a physician by training, is also an astute investor and market timer. A patient sort as well, he is that rare bird who can watch and wait for months or even years while exceptional opportunities slowly take shape. Read More
09.01.14- Comex Gold Warehouses Filling Up…With Paper
Willing or unwilling; we all now dwell in the fantasy-realm previously dubbed "the Wonderland Matrix". For the small minority who still retain mental awareness; this all-encompassing illusion of propaganda is like a thick fog which blankets reality. However, for the legions of brainwashed drones in our societies, the Wonderland Matrix is reality.
Nowhere is this blanket of fog thicker than in the precious metals sector. Here perversity is a way of life, as the genesis of the Wonderland Matrix began with the fantasy-world constructed here by the propaganda of the Corporate media. Read More
08.30.14- The Secret 21 Year Gold Cycle That Leads to World Commodity Bull Market Breakouts in 2014
Get Ready for a Fall 2014 World Commodity Bull Market Breakout!
Cycle analysis indicates the third and final 7-year tidal wave of the 21 year Grand Tsunami Gold Bull Market cycle began this past July 2014; Gold has been consolidating in the 7th year of sabbatical rest within a Symmetric Triangle and one final push lower is still possible before a breakout arrives this fall 2014 that lead to World Commodity Bull Market Breakouts! Read More
08.29.14- How to Invest in Silver Today for Double-Digit Gains
If you've been watching silver for some time, you know it's been in the doghouse.
After peaking at $49 back in April 2011 the white metal is down 60%, having languished between $19 and $22 for the past two years.
But a confluence of factors is building that make today's silver prices look downright cheap.
Here's how the bull is going to run - and how you can ride it all the way up from here... Read More
08.28.14- Staring Into the Great Abyss
Is a looming war coincident with a depressed gold price and a stock market peak an example of — staring into the great abyss?
From Peter Cooper:
"A five-year regime of artificially low interest rates is responsible for a bubble in stocks, bonds, real estate, emerging markets and many other asset classes…What would you rather own when staring into the great abyss?" Read More
08.27.14- UPDATE: Shanghai Silver Warehouse Stocks Fall 24% In One Week
While the Comex utilizes highly leveraged paper contracts to control the price of silver, physical metal continues to be drained out of the Shanghai Futures Exchange. In just one week, total inventory declined by 24%.
As I mentioned in a earlier article, the Comex is more of a paper trading exchange in which the majority of contracts are settled in cash. However, the opposite is the case with the Shanghai Futures Exchange as the majority of contracts are settled with physical metal. Read More
08.26.14- More Comex Blatant Manipulation
The front month silver contract on the Shanghai Futures exchange is currently trading at an 8% premium to the LBMA price and the futures curve there is in backwardation, indicating a very tight physical market. Roughly 80% of the physical silver from the SFE vaults have been removed.
On the Moscow Exchange, silver trades at a 16.8% premium to the LBMA price. But this is what we get in the lawless United States: Read More
08.25.14- The Swiss Gold Initiative
When we first wrote about this, we actually caused a bit of a stir but the primary vote on The Swiss Gold Initiative was still over six months away. Now, with the date of the vote rapidly approaching, it is time to begin reviving this issue.
Interest is beginning to build, awareness is growing and the date of the national referendum has been set. Later this year, on November 30, the good people of Switzerland will finally get an opportunity to make their voices heard. The Swiss Gold Initiative can be roughly stated in three parts: Read More
08.23.14- Low Prices Are NOT The Reason To Own PMs
"ISIS poses a greater threat than 9/11. This is way beyond anything we have ever seen. We must prepare for everything. Get ready!" US Secretary of Defense, Chuck Hagel.
Whoa, Chuckie…back off a bit, here. Just who do you think it was that helped create the Islamic State of Iraq and the Levant, aka ISIS, fund them, train them, and provide the best weapons for them? Can you spell U S, as in a part of your title description as Secretary of Defense? Are you really telling America, and the world, that you are actually that clueless? Read More
08.22.14- Silver: As Close To A No-Brainer Investment As It Gets
Jim Rogers once quipped that he waits to invest until "there's a pile of money just sitting there in a corner and I can walk over and pick it up."
In other words, an asset that's deeply undervalued, widely ignored, with potent fundamentals ready to kick in.
Is there such an opportunity in any of the precious metals right now?
One could make a case for all of them, given the likelihood of high inflation and the mainstream largely ignoring the industry. But there's one metal in particular that I think will deliver the most fireworks… Read More
08.21.14- Think Like a Pirate
The "Saddle Ridge Hoard" of 1,400 US gold coins was recently discovered by a couple in California, buried in several old, rusty cans. The cans were happened upon by the couple who were walking their dog, and when it was all dug up, over 1,400 U.S. gold coins were recovered from them. Why would someone bury these coins during a time of the classical gold standard? Ponder this, from the throughout that timeline, up until about World War I, both gold and silver coins could be obtained from any bank by simply redeeming your certificates(your dollars) in exchange for them.
08.20.14- Big Move Brewing for Gold
A series of lower highs/higher lows often leads to the formation of a symmetrical triangle (coil). Such is the case currently with gold which has been coiling for weeks near an important price memory zone near $1300.
Since the April 2013 gold crash the $1300-$1325 area has served as a powerful magnet for price. With the coil tightening recently, the probability of a decisive breakout from the range have increased significantly – from the stockcharts.com section on symmetrical triangles:
08.19.14- Inflation Is Headed Our Way
My feelings all along were that when the ever-swelling "beneath the Middle Class" segment of Americans who subsist on unemployment and welfare checks can no longer afford the basics –medicine, housing and food – any "spark" will ignite more "Fergusons" across America.
All of us here at Miles Franklin believe that serious inflation is headed our way. We believe that the U.S. dollar may not lose relevance, but it will lose exclusivity as more and more countries start trading "outside the dollar." Read More
08.18.14- The Attack On Gold/Silver: Nothing But Shock And Awe
A pure psychological warfare operation on the metals. I received several emails and phone calls from clients and colleagues who were in a panic. My response was: "It's a mid-August Friday, the rest of the world is at happy hour or in bed. Most of the big players in this country are at the beach. India was closed last night for their Independence Day, which put a lot less demand-stress on the physical market.
Something really ugly is developing behind the scenes that is not apparent yet and that's why they smashed gold during the one of the most quiet trading periods of the year. Read More
08.16.14- Fighting The Fed Can Be Great For Your Wealth
For decades, investors have lived by the adage that you should not "fight the Fed."
In simple terms, this meant not investing in a fashion that went against the Fed's policies. If the Fed was easing, you didn't want to be short. And if the Fed was tightening, you didn't want to be long.
However, the fact of the matter is that fighting the Fed has done very well for investors. We don't mean"fighting the Fed" by buying or selling stocks based on individual Fed policies... We mean, "fighting the Fed" by owning Gold. Read More
08.15.14- Silver price steady as the London price fix ended yesterday
The London market for silver enters a new era today with the ending of the London silver price fix after 117 years.
As of today it is replaced by a new benchmark administered jointly by Thomson Reuters and the CME Group offering a superior level of transparency and reckoned to be immune to illegal price fixing that has been widely alleged to be a feature of silver prices up until now. The LBMA will accredit price participants and own the intellectual property rights. Read More
08.14.14- Black Swans on Final Approach
There are several potential disasters that could disrupt the financial and political status quo, much like what happened after an Archduke was shot 100 years ago.
Brutal Facts: From Simon Black regarding the experiences of US Navy Pilot James Stockdale in captivity in the "Hanoi Hilton" in the late 1960s.
08.13.14- The Unknown Factor: How The Global Financial System Will Collapse
One day out of the blue, the Global Financial System will collapse plunging the world's economies into a depression for which there is no recovery. The reason for this sudden collapse will be due to a factor that most analysts fail to recognize or understand.
While the mainstream media and alternative analyst community focus on the typical economic indicators, monetary system, derivatives and debt markets... the real problem for the world financial system will be the rapid change in the "PERCEPTIONS" of assets by investors and the public. This event will likely occur rather quickly - virtually overnight. Read More
08.12.14- Top 7 Reasons I'm Buying Silver Now
I remember my first drug high.
No, it wasn't from a shady deal made with a seedy character in a bad part of town. I was in the hospital, recovering from surgery, and while I wasn't in a lot of pain, the nurse suggested something to help me sleep better. I didn't really think I needed it - but within seconds of that needle puncturing my skin, I WAS IN HEAVEN.
The euphoria that struck my brain was indescribable. The fluid coursing through my veins was so powerful I've never forgotten it. I can easily see why people get hooked on drugs. Read More
08.11.14- Reportable Transactions when
08.09.14- Gold and Silver - From Manipulation to Hyperinflation
The precious metals are lynch pins. They are namanipgging and persistent counter-parties to money printing gone wild.
It's been this way for as long as commerce was semi-civilized. (Though given the amount of financial fraud, violence, and chaos in the world, the term "civilized" might need to be reconsidered)...
When prices began to fly, the point of no return will be long since passed. Read More
08.08.14- The Golden Age of Silver
08.07.14- The Best Way to Profit from Gold's Supply Crunch
I want to give you some perspective on the gold space. This pertains to any gold investor, whether in big miners (like a couple I name below), or the small, junior-space plays.
I came away from Vancouver last week, at the Sprott Natural Resource Symposium with the distinct impression that we're looking at better days ahead for gold, and soon. Gold discoveries are drying up, and really good, new plays are few and far between. We're looking down the barrel of a severe supply crunch, with many implications. Of course, you have to separate the spin from the reality of what's happening out in the field. Read More
08.06.14- Why You Should Ignore the Gold Sell Off
On July 13, gold was still around $1,340 per ounce. Since last Monday, gold has suffered a big drop, falling as low as $1,293 in a few days. Many blame the decline on hawkish comments from the Fed's Janet Yellen, who recently suggested the Fed could raise interest rates. "Higher interest rates would encourage investors to switch to assets that, unlike gold, pay interest," said the news service Reuters.
Following Thursday's news from the Ukraine, gold has rebounded from its low, but remains under $1,320 as of July 18. Rick Rule, Chairman of Sprott US Holdings Inc., recently said gold could fall back another 10% as a normal event in this market. I asked him whether this week's step down had altered his views on gold for 2014. Read More
08.05.14- Silver: Something Doesn't Add Up
One of the first things you learn when studying economics is the law of supply and demand, defined as follows:
This is ECON 101 and it's a fairly simply concept to grasp. Read More
08.04.14- If, and When, the Gates Close Forever
If you can keep your head when all about you
Nearly seven years after the world's greatest financial crisis, we remain in monetary emergency mode, an irony matched only by the last minute (literal, and relatively quiet) battening down of the monetary hatches. Read More
08.02.14- New World [Dis]Order Continues To Slip
Earlier in the year, we stated 2014 could be like 2013, price-wise, and that appears to be playing out. However, as the idiom goes: appearances can be deceiving, and it is certainly true of the chart prices for gold and silver. The natural forces of supply and demand would have PM prices much higher, if for no other reason than an inflation adjustment. It is the ongoing exertion of unnatural forces that have been dictating prices for so long.
The irony of the go-nowhere-but-down price action, since the highs of three years ago, is that the charts do not portend the unfortunate possibility of war. Read More
08.01.14- The Gold Owners' Guide To The Rest Of 2014
Over the next few weeks, I will make a series of posts on the current state of affairs as they relate to the gold market. So stay tuned to this page. . . . .
Let me start the proceedings with this - a repast on the nature of the human predicament 2014. Below is a follow-up to Richard Russell's stated concerns (scroll below) on the persistence of war and inflation in human affairs. I do not bring this line of thinking to your attention to disturb your comfort level, but to make you aware that there is more going on than the panoply of misdirection afforded us by the mainstream media. (Today's somewhat mysterious 300 point + drop in the DJIA might be trying to tell us something. Stocks are now level for the year. Gold is up over 6.5%.) Read More
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