Gold vaults to record high

Brien Lundin: Sometimes the little guy does win
Submitted by cpowell on Tue, 2010-05-11 23:32. Section: Daily Dispatches
Excerpted from Gold Newsletter, Alert 570By Brien LundinTuesday, May 11, 2010
http://www.goldnewsletter.com/

Silver, in particular, holds explosive potential right now. On Friday, the metal shot up 73 cents (4.13 percent) for no apparent reason. But the cause may have surfaced over the weekend, with a news story in the New York Post that the Commodity Futures Trading Commission and the Justice Department were opening civil and criminal investigations into possible manipulation of the silver market by JPMorgan Chase.
This was blockbuster news, with huge implications. Short-term, it may have prompted a short-covering rally in silver last Friday. Longer-term, it may force JPM and other major silver shorts into covering their positions ... which could very quickly force silver far higher.
There's another thing this tells us: Sometimes the little guy does win. Our good friends at GATA (the Gold Anti-Trust Action Committee), particularly Chris Powell and Bill Murphy, have worked tirelessly for over 11 years now, trying to draw attention to the manipulative activities of bullion banks and their governmental overseers in the gold and silver markets.
They deserve the undying thanks of every precious metals and mining stock investor for their unflagging dedication to the cause. They've worked hard for this ... and now the payoff may be near.
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Jim Sinclair’s Commentary
One trillion is not enough for the pan-Europe fat cat bank bailout.
That is $1 trillion more in QE. That certainly is QE to Infinity. That is certainly gold at and above $1650.

Bank Swaps, Libor Show Doubts on Europe Bailout: Credit Markets By Abigail Moses and Shannon D. Harrington

May 11 (Bloomberg) — Money markets and the cost of protecting bank bonds from losses show investors are concerned Europe’s almost $1 trillion rescue plan may not be enough to contain the region’s sovereign debt crisis.
The Markit iTraxx Financial Index of credit-default swaps on European banks and insurers rose to 38 basis points more than the Markit iTraxx Europe Index tied to investment-grade companies from 31 yesterday. While the gap narrowed from 58 basis points before European leaders agreed to the rescue plan, the bank index on average has traded 10 basis points less the past three years. A measure of banks’ reluctance to lend also rose to more than three times the level from March.
The loan package for debt-laden nations including Greece is part of an attempt to stop a decline in the euro and stave off a sovereign default that would threaten recovery from the worst global recession since the 1930s. European financial companies, which hold more than 134 billion euros ($170 billion) in Greek, Portuguese and Spanish sovereign debt, are under scrutiny by investors concerned that they’re owed too much by Europe’s most- indebted countries.
“Sovereign risk hasn’t gone away in the slightest,” said Jim Reid, head of fundamental strategy in London for Deutsche Bank AG, Germany’s biggest bank. “What this package has done is massively reduce the tail risk in European markets without necessarily changing the medium- to long-term dynamics of financial markets.”
More…

U.S. Debt Shock May Hit in 2018, Maybe as Soon as 2013: Moody's.

Breakfast with the FT: Nouriel Roubini.

Fed Restarts Currency Swaps as EU Debt Crisis Flares. Read between the lines!

US Gold Coin Sales Surge as Investors Flee Risk

Who's on the Hook for the IMF's Greek Bailout?

Fears Intensify About Greek Crisis' Impact on US

Celente on the Greece Riots

Taking Weighty Steps Making a Golden Getaway (The Mogambo Guru)

US Gold Coin Sales Soar on Economic Anxiety

Has Gold Become a New Reserve Currency?

Broader U-6 Unemployment Rate Increases to 17.1% in April

Federal Reserve opens credit line to Europe

"Freedom is not a place to visit, or a thing to be achieved. Freedom is a commitment, a way of life that will endure only as long as men love it for themselves and their children, more than their weariness, or their fear, or vain comforts." - Michael Casey, Phil’s Stock World March 27, 2010