Miner Gold Resource Corp. starts treating gold and silver as money
Gold has become 'substitute currency,' Jean-Marie Eveillard tells King World News
Harvey Organ, Wednesday, August 17, 2011
Gold hits record close at comex/Venezuela demands its gold back stored at the B. of E
Good
evening Ladies and Gentlemen:
The fun is about to start in the gold market as Venezuela has formally
asked the Bank of England for its gold back that it deposited in England
years ago. I will comment on this in the body of my commentary.
Let us head over to the gold and silver comex and see how our precious
metals fared today. Gold finished the comex session at $1791.20 up $8.80
and this
Gold - 4 Hour chart update and comments
The ability of gold to push past $1780 set the stage for its test of the
$1,800 level. The two lines of technical resistance are noted on the price
chart. As you can see, the initial approach to $1780 saw gold encounter some
resistance from sellers trying to defend that level. After they were
unsuccessful, they then retreated towards the $1800 level from which they
are attemping to absorb the bids coming into the Comex gold pit.
Technically, the gold market is now at a crossroads of sort for the short
term price action. Volume has been shrinking as it nears $1800 which is not
part... more »
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I'm PayPal Verified Time To CMBShort
One
of the more notable events of the past few weeks is that the formerly
unbreakable IYR REIT index not only broke its unprecedented rise, but
literally imploded, plunging to levels not seen since mid-2010. Which
means it may well be time to start sniffing around into the real meat
of the underlying market: CMBS. And by the looks of things the perfect
storm for CMBS, which has so far been very resilient, save a few
jitters since the begining of August, is coming. First, the WSJ took aim at
CMBS last night, writing that "Commercial real estate could be losing
its cachet as a safe-haven investment due to concerns about the economy
and reduced access to bank financing for landlords." And now, Bloomberg follows up
with an article based on the Deutsche Bank report below, which disusses
how "Losses on securities tied to commercial-property loans are poised
to climb as lenders pull back, choking off funding to some borrowers
with debt coming due." Lastly, the recent mutiny by S&P to rate CMBS
deals which led to the pulling of a $1.5 deal by Goldman and Citi,
only means the variables in the market could easily drive away the
marginal buyers who until now had hoped the Fed would never allow the
commercial real estate market to topple, collapsing rents and
bankrupting retailers notwithstanding. As for Deutsche Bank, here is the
punchline: "The environment for commercial real estate
financing has been dramatically reshaped in the last few weeks. Capital
is more scarce and acceptable leverage limits have decreased, which
limits proceeds available to borrowers and restricts real estate
values." Translation: the levels across CMBX 1-5 are likely
about to start the mean reversion walk much higher from current
indications. We expect virtually all vintages of CMBX AJ to widen to
1,000 if not more over the next few months.Guest Post: Recent Gold Hedging Activity – a Warning Sign?
In the first quarter of 2011 (Q111), net gold hedging was reported by GFMS and Société Générale. A gold mining company may hedge its production on expectations of falling gold prices in order to lock in high prices and possibly avoid losses. As gold hits one nominal high after another, is such behavior a sign that the bull market in gold is over? To answer that question, we had a look into Boliden’s (T.BLS) latest interim report. The GFMS study mentions that in Q111, Boliden was one of the most active hedgers; it was accountable for 58% of gross hedging activity during that period. Let’s have a closer look at the company.Alasdair Macleod: The upcoming expansion of U.S. bank credit
August 17, 2011, at 10:47 am
by Jim Sinclair in the category In The News |
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by Jim Sinclair in the category In The News |
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Jim Sinclair’s Commentary
The title should be "Faltering Western World Financial System Fuels Gold Price."
Faltering Europe Fuels Gold Price Fires By Alix Stee 08/16/11 – 02:57 PM EDT
NEW YORK (TheStreet ) — Gold prices skyrocketed Tuesday to a record close as weak second quarter growth numbers out of Germany and indecisive action from EU leaders spooked investors into the safe haven.
Gold for December delivery soared $27 to close at $1,785 an ounce at the Comex division of the New York Mercantile Exchange. The gold price has traded as high as $1,789.80 and as low as $1,763.60 while the spot gold price was adding a more modest $14.20, according to Kitco’s gold index.
Silver prices settled up 51 cents at $39.81 an ounce while the U.S. dollar index was adding 0.05% at $73.91.
Gold prices were popping on a slew of disappointing growth numbers out of the Eurozone. The highlight came from the revelation that Germany’s economy grew only 0.1% in the second quarter, 2.8% year-over-year. The first quarter number was also revised down. Germany is the strongest Eurozone economy and its near contraction reading weighed on its neighbors — Eurozone growth slowed to 1.7% from 2.5% in the first quarter.
Gold extended its gains after German Chancellor Merkel and French President Sarkozy failed to deliver the goods at a joint press conference this afternoon. They both rejected a common eurobond and offered limp suggestions for helping the eurozone’s almost two-year old debt crisis.
Both leaders offered up a balanced budget rule that each member’s parliament would have to pass and a financial transaction tax. Neither did anything to help stocks. "They keep going into a room and coming out with another plan to save the euro," says Chuck Butler, president of EverBank World Markets. This "weighs heavily on the euro and gives people the need to buy gold as a protection."
More…
Jim Sinclair’s Commentary
In a relative sense Canada avoided the OTC derivative debacle.
WTF: The federal budget and 50 years of Canadian debt Mar 21, 2011 – 10:06 PM ET | Last Updated: Aug 5, 2011 12:09 PM ET
In this occasional feature, the National Post tells you everything you need to know about a complicated issue. Today, the federal budget. Finance Minister Jim Flaherty is set to unveil a budget on Tuesday that analysts expect will include a $40-billion deficit, adding to speculation of whether Canada’s debt is under control or spiralling into an abyss depends on whom you ask and what numbers you use. Here, the National Post’s Tamsin MacMahon debunks the federal debt.
How big is Canada’s debt?
The Canadian Taxpayers Federation, which set up its ever-ticking massive debt clock on Parliament Hill last week, declared the country is “broke” and points out that Canada’s debt hit $563-billion, a record and one that wiped out more than a decade of steady reductions with one massive $56-billion federal budget deficit in 2010. However, Canada’s accumulated debt, or the sum of all its budget deficits, translates into about 30% of the total GDP. That makes the country a shining star among struggling G7 economies and represents a drastic decline from the mid-1990s when the federal debt-to-GDP ratio hit nearly 70%. In real dollars Canada’s debt did set a record. But adjusted for inflation, today’s federal debt pales in comparison with the records of the mid-1990s. For instance, the debt in 1996 stood at nearly $769-billion when adjusted for inflation, 25% higher than the present-day debt.
So that’s all there is to it, right?
Not exactly. Other analysts take a different approach to calculating Canada’s debt, putting the debt-to-GDP ratio anywhere from 30% to as high as 80%. For example, by looking at Canada’s gross debt, which includes the debts of provincial governments, but excludes some assets like the Canada/Quebec Pension Plan accounts, Canada’s debt-to-GDP ratio increases to closer to 65%. That increase owes much to Ontario’s skyrocketing debt, projected to be nearly $250-billion by next year (2012), and Quebec’s dismal 50% debt-to-GDP ratio. The International Monetary Fund debt calculations, in contrast, also include unfunded liabilities such as public sector pension funds. Those calculations put Canada’s debt closer to $900-billion and the country’s debt-to-GDP ratio as high as 80%. The Organization for Economic Co-operation and Development excludes employee pension plan future liabilities, but includes current public sector pension plan assets in its calculations, making Canada’s combined federal and provincial debt closer to 30%.
More…
Jim Sinclair’s Commentary
If this is the "New Normal" the USA is headed toward internal political and social strains.
A record 45.8 million American using food stamps CNNMoney
12:58 p.m. CDT, August 5, 2011
Nearly 15 percent of the U.S. population relied on food stamps in May, according to the United States Department of Agriculture.
The number of Americans using the government’s Supplemental Nutrition Assistance Program (SNAP) — more commonly referred to as food stamps — shot to an all-time high of 45.8 million in May, the USDA reported. That’s up 12% from a year ago, and 34% higher than two years ago.
The program provides monthly benefits to low-income individuals and families, which they can use at stores that accept SNAP benefits.
To qualify for food stamps, an individual’s income can’t exceed $1,174 a month or $14,088 a year — an amount that is 130 percent of the national poverty level.
The average food stamp benefit was $133.80 per person and $283.65 per household in May.
The highest concentration of food stamp users were in California, Florida, New York and Texas — where more than 3 million residents in each state received food stamps in May.
More…
August 17, 2011, at 10:39 am
by Greg Hunter in the category USAWatchdog.com | Print This Post | Email This Post
by Greg Hunter in the category USAWatchdog.com |
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By Greg Hunter’s USAWatchdog.com
Dear CIGAs,
The decision by the Fed, last week, to keep a key interest rate at near zero percent for 2 years is historic because the Fed has never done this before. This action will have profound negative effect on the U.S. dollar and its buying power. It also signals that even the Fed thinks the economy is not going to get better for at least 2 years. This action will affect every American and telegraphs a policy of inflation by the government. In November of 2009, I predicted this very path in a post called “The Fix is In.” Back then, I said, “It appears the “fix” is in as far as the road plan for the U.S. dollar and economy. The government and the Fed appear to have chosen a path of inflation for America and the world. This is not an official announced plan but it might as well be.” (Click here for the original post.)
Zero percent interest on a key Fed rate confirms my prediction right along with the rising inflation in just about everything except housing. In an extensive post about inflation this week, Theburningplatform.com said, “The storyline being sold to you by Bernanke, his Wall Street masters, and their captured puppets in Washington DC is that deflation is the great bogeyman they must slay. They make these statements from their ivory jewel encrusted towers as the real people in the real world deal with reality. The reality since Ben Bernanke announced his QE2 policy in August 2010 is:
•Unleaded gas prices are up 45%.
•Heating oil prices are up 46%.
•Corn prices are up 71%.
•Soybean prices are up 26%.
•Rice prices are up 13%.
•Pork prices are up 31%.
•Beef prices are up 25%.
•Coffee prices are up 38%.
•Sugar prices are up 48%.
•Cotton prices are up 13%.
•Gold prices are up 42%.
•Silver prices are up 115%.
•Copper prices are up 23%.
More…
Dear CIGAs,
The decision by the Fed, last week, to keep a key interest rate at near zero percent for 2 years is historic because the Fed has never done this before. This action will have profound negative effect on the U.S. dollar and its buying power. It also signals that even the Fed thinks the economy is not going to get better for at least 2 years. This action will affect every American and telegraphs a policy of inflation by the government. In November of 2009, I predicted this very path in a post called “The Fix is In.” Back then, I said, “It appears the “fix” is in as far as the road plan for the U.S. dollar and economy. The government and the Fed appear to have chosen a path of inflation for America and the world. This is not an official announced plan but it might as well be.” (Click here for the original post.)
Zero percent interest on a key Fed rate confirms my prediction right along with the rising inflation in just about everything except housing. In an extensive post about inflation this week, Theburningplatform.com said, “The storyline being sold to you by Bernanke, his Wall Street masters, and their captured puppets in Washington DC is that deflation is the great bogeyman they must slay. They make these statements from their ivory jewel encrusted towers as the real people in the real world deal with reality. The reality since Ben Bernanke announced his QE2 policy in August 2010 is:
•Unleaded gas prices are up 45%.
•Heating oil prices are up 46%.
•Corn prices are up 71%.
•Soybean prices are up 26%.
•Rice prices are up 13%.
•Pork prices are up 31%.
•Beef prices are up 25%.
•Coffee prices are up 38%.
•Sugar prices are up 48%.
•Cotton prices are up 13%.
•Gold prices are up 42%.
•Silver prices are up 115%.
•Copper prices are up 23%.
More…
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/silver/t24_ag_en_usoz_2.gif)
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