Leeb – We Will Now See a Gold Standard Imposed in Europe
from Stephen Leeb, KingWorldNews:
With
stocks trading lower, along with gold and silver, today King World News
interviewed acclaimed money manager Stephen Leeb, Chairman & Chief
Investment Officer of Leeb Capital Management. Leeb told KWN we will
see a gold standard imposed on Europe. Leeb also said the Chinese will
move to back the yuan with gold. Here is what Leeb had to say about the
situation: “Gold is reacting to what’s going on in
Europe. It’s the last resort of liquidity for a lot of people. It’s
been the best performing major asset over the last 12 years. You have a
lot of chaos in Europe an no one knows what’s happening, so there has
been a lot of reflex selling of gold.”
Leeb Continues @ KingWorldNews.com
From
the moment we all got to peek behind the over-leveraged financial
system reality thank to Lehman's collapse, the-powers-that-be have made
every attempt to stop this whole thing unraveling. Eric Sprott humbly
suggests, when the CNBC anchor in the following clip questions recent
gold price action as evidence of something wrong in his thesis, that
just as Jim Grant opines, "All markets are manipulated" and that
Central Banks (who are desperately trying to revive the dying system
in every extreme monetary scheme possible) simply do not want to see
the price of gold rising. He then notes that Silver is likely
to be the investment of the next decade (although offers no strong
thesis other than levered gold). Shrugging off the obfuscation from
Omaha, "People who sell paper gold and paper silver can rule the
markets in the short-term but physical participants will win the day in
the long-run". Detailing some fundamental drivers for gold's advance, as
the investment of the last decade and so for those three gentlemen
(Buffett, Gates, & Munger) who missed it, I don't know that I
should respect their opinion at this point in time.
For the first time since last July, right before the market's grand plan collapse, the Dow has fallen for 6 days-in-a-row.
We could of course have just copy/pasted yesterday's end-of-day as
today was a case of deja deja vu all over again as we sold off hard
overnight (basically top-ticking right before the US day-session close),
made new overnight lows, then managed a miraculous rally into and
across the European close only to stall once again as the dip-buying
algos enabled bigger blocks to dump into momentum retail players. The European close hour saw your standard 4-sigma swing (low to high) in ES
(S&P 500 e-mini futures) but gave half of it back it its typical
VWAP reversion as for three days in a row we have dipped and tested the
S&P's 50DMA and rallied on lower volume. The USD rallied further
with the EUR ending around 1.2950 (though off its lows of the day) but once again commodities (which sold off pretty hard overnight) managed to crawl their way back higher
(closing rather interestingly at the same levels at which they opened
the European day-session). VIX ended above 20% (its highest close in a
month) and its flattest term structure in five months. Treasuries ended
the day marginally changed (-1bps 10Y, +1bps 3Y) but ended well off
their low yields of the day.
by Jason Hommel, SilverStockReport.com
It’s important to review the fundamentals from time to time. It is
important to not only study the current supply and demand for silver and
gold, but potential demand. This potential demand is the total amount
of money and/or assets that could be sold to buy silver, and is
reflected in this study. Of the two, current vs. potential, I think
potential demand is far more important, because it shows the potential
change and likely change that will increase the value of silver.
I published these figures in 2003, 2006, 2008, links to prior years can be found here.
And now here’s another update in 2012. Following each figure is the source and YEAR of the info. The source and YEAR is very important. Sometimes, the source is several years old, because this kind of data is hard to gather. For many years, it was extremely difficult to source the world bond market size, or the size of total issued and printed money. In my prior reports, I’ve seen many people re-post my work without listing a source which then makes it difficult for me to later track down current info, because when doing a google search, I encounter people just re-posting my data, without listing either the source or year! Therefore, if you copy this data, please acknowledge this as a source, and link back to www.silverstockreport.com/2012/money-chart-2012.html , and source the year! The source is important not only for future research, but so you can verify the data, and see that I’m not making these things up. There really are very many things that are completely over valued, especially when compared to real money, which is silver, and gold.
Read More @ SilverStockReport.com
With
stocks trading lower, along with gold and silver, today King World News
interviewed acclaimed money manager Stephen Leeb, Chairman & Chief
Investment Officer of Leeb Capital Management. Leeb told KWN we will
see a gold standard imposed on Europe. Leeb also said the Chinese will
move to back the yuan with gold. Here is what Leeb had to say about the
situation: “Gold is reacting to what’s going on in
Europe. It’s the last resort of liquidity for a lot of people. It’s
been the best performing major asset over the last 12 years. You have a
lot of chaos in Europe an no one knows what’s happening, so there has
been a lot of reflex selling of gold.”Leeb Continues @ KingWorldNews.com
Sprott Berates Berkshire's Buffoons And Says "All Markets Are Manipulated"
From
the moment we all got to peek behind the over-leveraged financial
system reality thank to Lehman's collapse, the-powers-that-be have made
every attempt to stop this whole thing unraveling. Eric Sprott humbly
suggests, when the CNBC anchor in the following clip questions recent
gold price action as evidence of something wrong in his thesis, that
just as Jim Grant opines, "All markets are manipulated" and that
Central Banks (who are desperately trying to revive the dying system
in every extreme monetary scheme possible) simply do not want to see
the price of gold rising. He then notes that Silver is likely
to be the investment of the next decade (although offers no strong
thesis other than levered gold). Shrugging off the obfuscation from
Omaha, "People who sell paper gold and paper silver can rule the
markets in the short-term but physical participants will win the day in
the long-run". Detailing some fundamental drivers for gold's advance, as
the investment of the last decade and so for those three gentlemen
(Buffett, Gates, & Munger) who missed it, I don't know that I
should respect their opinion at this point in time. Bank Of Spain Formally Nationalizes Bankia, Says Insolvent Bank Is "Solvent", Adds There Is No Cause For Concern
The only thing funnier than a nationalization statement spun as positive, or favorable for taxpayers, is one that has been Google translated, in this case from Spanish, courtesy of Bank of Spain, which has just formally bailed out Bankia, leaving the best for last: "In any case, BFA-Bankia is a solvent entity that continues to function quite normally and customers and depositors should have no concern." Move along. Nothing to see here. Nobody should be concerned.Net Asset Value Premiums of Certain Precious Metal Trusts and Funds - Miners Rally
Market Has Longest Losing Streak In 10 Months
For the first time since last July, right before the market's grand plan collapse, the Dow has fallen for 6 days-in-a-row.
We could of course have just copy/pasted yesterday's end-of-day as
today was a case of deja deja vu all over again as we sold off hard
overnight (basically top-ticking right before the US day-session close),
made new overnight lows, then managed a miraculous rally into and
across the European close only to stall once again as the dip-buying
algos enabled bigger blocks to dump into momentum retail players. The European close hour saw your standard 4-sigma swing (low to high) in ES
(S&P 500 e-mini futures) but gave half of it back it its typical
VWAP reversion as for three days in a row we have dipped and tested the
S&P's 50DMA and rallied on lower volume. The USD rallied further
with the EUR ending around 1.2950 (though off its lows of the day) but once again commodities (which sold off pretty hard overnight) managed to crawl their way back higher
(closing rather interestingly at the same levels at which they opened
the European day-session). VIX ended above 20% (its highest close in a
month) and its flattest term structure in five months. Treasuries ended
the day marginally changed (-1bps 10Y, +1bps 3Y) but ended well off
their low yields of the day.US Market Wrap – 09/05/12
Submitted by RANSquawk Video on 05/09/2012 - 16:28
It’s important to review the fundamentals from time to time. It is
important to not only study the current supply and demand for silver and
gold, but potential demand. This potential demand is the total amount
of money and/or assets that could be sold to buy silver, and is
reflected in this study. Of the two, current vs. potential, I think
potential demand is far more important, because it shows the potential
change and likely change that will increase the value of silver.I published these figures in 2003, 2006, 2008, links to prior years can be found here.
And now here’s another update in 2012. Following each figure is the source and YEAR of the info. The source and YEAR is very important. Sometimes, the source is several years old, because this kind of data is hard to gather. For many years, it was extremely difficult to source the world bond market size, or the size of total issued and printed money. In my prior reports, I’ve seen many people re-post my work without listing a source which then makes it difficult for me to later track down current info, because when doing a google search, I encounter people just re-posting my data, without listing either the source or year! Therefore, if you copy this data, please acknowledge this as a source, and link back to www.silverstockreport.com/2012/money-chart-2012.html , and source the year! The source is important not only for future research, but so you can verify the data, and see that I’m not making these things up. There really are very many things that are completely over valued, especially when compared to real money, which is silver, and gold.
Read More @ SilverStockReport.com
by Brianna Panzica, Wealth Wire:
It’s no secret that Warren Buffett hasn’t been too kind to gold recently…
And his business partner Charlie Munger was even more blunt this week, when he said ”I think gold is a great thing to sew into your garments if you’re a Jewish family in Vienna in 1939, but I think civilized people don’t buy gold. They invest in productive businesses.”
But there is at least one Buffett that is more of a gold bug ala Ron Paul: the late Howard Buffett, Warren’s father.
Howard Buffett wrote a famous essay entitled “Human Freedom Rests on Gold-Redeemable Money” in which he looked at oppressive civilizations and their tendency to stray away from a gold standard.
Gold and freedom, he argued, are inevitably linked:
It’s no secret that Warren Buffett hasn’t been too kind to gold recently…And his business partner Charlie Munger was even more blunt this week, when he said ”I think gold is a great thing to sew into your garments if you’re a Jewish family in Vienna in 1939, but I think civilized people don’t buy gold. They invest in productive businesses.”
But there is at least one Buffett that is more of a gold bug ala Ron Paul: the late Howard Buffett, Warren’s father.
Howard Buffett wrote a famous essay entitled “Human Freedom Rests on Gold-Redeemable Money” in which he looked at oppressive civilizations and their tendency to stray away from a gold standard.
Gold and freedom, he argued, are inevitably linked:
“At first glance it would seem that money belongs to the world of economics and human freedom to the political sphere. But when you recall that one of the first moves by Lenin, Mussolini and Hitler was to outlaw the individual ownership of gold, you begin to sense that there may be some connection between money, redeemable in gold, and the rare prize known as human liberty.”
Read More @ WealthWire.com
by Simon Black, Sovereign Man :
When most people think of Brazil, it’s the incredible beaches that come to mind. Or the crazy parties of Carnival. Or the spectacular vistas and great weather. Or how indescribably gorgeous (and welcoming) the locals are.
But here’s a little known fact, and it’s something that sets Brazil apart from most other places: Brazil’s constitution prohibits the extradition of Brazilian citizens to other countries. This is a rare gem in the world… I’ll explain.
Read More @ SovereignMan.com
When most people think of Brazil, it’s the incredible beaches that come to mind. Or the crazy parties of Carnival. Or the spectacular vistas and great weather. Or how indescribably gorgeous (and welcoming) the locals are.
But here’s a little known fact, and it’s something that sets Brazil apart from most other places: Brazil’s constitution prohibits the extradition of Brazilian citizens to other countries. This is a rare gem in the world… I’ll explain.
Read More @ SovereignMan.com
by Simit Patel, Seeking Alpha:
Generally, the news is a massive sea of information that does more to confuse than enlighten – unless one knows what to look for. And in our current global economy, whose most defining characteristic is a global sovereign debt crisis that ensures a new international monetary agreement will be created as part of the solution, understanding gold (and to a lesser degree, silver) is vital. A global sovereign debt crisis in a world in which debt and currency are inextricably linked means the stage is set for capital to run into precious metals (and to a lesser extent, fine art) as a store of value and as a bartering mechanism. Whichever country/geographic region buys the most gold and encourages their citizens to do the same will find themselves positioned to be a major financial hub with greater demand for consumption.
With that in mind, there are two news stories worth focusing on:
1. Shanghai Futures Exchange Commences Silver Trading. Those who believe there is significant naked shorting of silver that is preventing its price from rising on the COMEX may be particularly interested in hearing that Shanghai will start to trade its own futures silver contracts starting May 10.
Read More @ SeekingAlpha.com
Generally, the news is a massive sea of information that does more to confuse than enlighten – unless one knows what to look for. And in our current global economy, whose most defining characteristic is a global sovereign debt crisis that ensures a new international monetary agreement will be created as part of the solution, understanding gold (and to a lesser degree, silver) is vital. A global sovereign debt crisis in a world in which debt and currency are inextricably linked means the stage is set for capital to run into precious metals (and to a lesser extent, fine art) as a store of value and as a bartering mechanism. Whichever country/geographic region buys the most gold and encourages their citizens to do the same will find themselves positioned to be a major financial hub with greater demand for consumption.
With that in mind, there are two news stories worth focusing on:
1. Shanghai Futures Exchange Commences Silver Trading. Those who believe there is significant naked shorting of silver that is preventing its price from rising on the COMEX may be particularly interested in hearing that Shanghai will start to trade its own futures silver contracts starting May 10.
Read More @ SeekingAlpha.com
from MarketWatch:
Portuguese workers will give up four public holidays beginning in 2013 as part of the government’s austerity drive, news reports said Wednesday. Under the agreement, two religious festivals and two other public holidays will be suspended for five years,
the BBC reported … The move cuts the total number of public holidays to
10 from 14 … Portugal received a 78 billion euro ($101.2 billion)
bailout from the European Union and the International Monetary Fund last year.
Read More @ MarketWatch
Portuguese workers will give up four public holidays beginning in 2013 as part of the government’s austerity drive, news reports said Wednesday. Under the agreement, two religious festivals and two other public holidays will be suspended for five years,
the BBC reported … The move cuts the total number of public holidays to
10 from 14 … Portugal received a 78 billion euro ($101.2 billion)
bailout from the European Union and the International Monetary Fund last year.Read More @ MarketWatch
from The Daily Bell:
Crisis escalates as insurrection breaks German control of Europe … The political dam has broken in Europe. German Chancellor Angela Merkel no longer has enough allies in the club of EU
prime ministers to impose her hairshirt agenda. Her methodical plans
are disintegrating on every front. For Germany it is a moment of truth.
Berlin has put off hard choices since the crisis began … – UK Telegraph
Dominant Social Theme: ‘Germany’ will respond magnificenty to this crisis as it has before. Long live the EU.
Free-Market Analysis: Our favorite mainstream economic reporter, Ambrose Evans-Pritchard, is out with a good analysis of the current, brewing dissolution of the euro and the EU (see above). It touches on a point that we want to make much more forcefully:
Read More @ TheDailyBell.com
Crisis escalates as insurrection breaks German control of Europe … The political dam has broken in Europe. German Chancellor Angela Merkel no longer has enough allies in the club of EU
prime ministers to impose her hairshirt agenda. Her methodical plans
are disintegrating on every front. For Germany it is a moment of truth.
Berlin has put off hard choices since the crisis began … – UK TelegraphDominant Social Theme: ‘Germany’ will respond magnificenty to this crisis as it has before. Long live the EU.
Free-Market Analysis: Our favorite mainstream economic reporter, Ambrose Evans-Pritchard, is out with a good analysis of the current, brewing dissolution of the euro and the EU (see above). It touches on a point that we want to make much more forcefully:
Read More @ TheDailyBell.com
By Melanie Gillespie, wjactv.com:
JOHNSTOWN, Pa. —
If you picked up your local paper this week, there was a full page ad inside that said gold and old coins were wanted. 6 News wanted to see how much you’re really getting and what we discovered may surprise you. We started at Cambria Coin Company to pick up some merchandise to sell. Co-owners Nick Roscos and Tom Trunk sent us with more than a dozen coins valued at about $237.
We set the bag of coins on the table and a worker for Spindle City said we had a hit. After verifying what each coin was and calculating it, he told he’d buy all of it for $91.
Read More @ wjactv.com
JOHNSTOWN, Pa. —
If you picked up your local paper this week, there was a full page ad inside that said gold and old coins were wanted. 6 News wanted to see how much you’re really getting and what we discovered may surprise you. We started at Cambria Coin Company to pick up some merchandise to sell. Co-owners Nick Roscos and Tom Trunk sent us with more than a dozen coins valued at about $237.
We set the bag of coins on the table and a worker for Spindle City said we had a hit. After verifying what each coin was and calculating it, he told he’d buy all of it for $91.
Read More @ wjactv.com
Reuters via CNBC:
Gold fell for a third day on Wednesday, touching a four-month low
and all but wiping out its gains for 2012 as the escalation in the euro
zone debt crisis prompted investors to favor dollars and German
government bonds as safe havens.
Political disarray in Greece, a change in the French presidency and renewed concerns about the resilience of the Spanish banking sector sent the euro to a 15-week low against the dollar and propelled German bond futures to record highs.
Read More @ CNBC
Gold fell for a third day on Wednesday, touching a four-month low
and all but wiping out its gains for 2012 as the escalation in the euro
zone debt crisis prompted investors to favor dollars and German
government bonds as safe havens. Political disarray in Greece, a change in the French presidency and renewed concerns about the resilience of the Spanish banking sector sent the euro to a 15-week low against the dollar and propelled German bond futures to record highs.
Read More @ CNBC
from Gold Core:
This
continues the recent meme regarding gold investors and store of wealth
bullion buyers being ‘bugs’, people or animals who ‘hide’ in ‘caves’ or
are “uncivilised” people.
Attacking the ball and not the man is a way to avoid engaging in real debate regarding the merits of gold as a diversification and as an academically and historically proven safe haven – one that has protected people both throughout history and again in recent years.
It is interesting that Roubini has not written a paper on gold nor has he conducted an interview about gold or written an article about gold in recent years. He confines his simplistic, ill informed anti gold comments to Twitter where he can be brief and not have his faulty thoughts and logic examined.
From a contrarian perspective, Roubini is a gift as his name calling and anti gold comments almost always coincide with an intermediate low in the gold price.
Read More @ GoldCore.com
This
continues the recent meme regarding gold investors and store of wealth
bullion buyers being ‘bugs’, people or animals who ‘hide’ in ‘caves’ or
are “uncivilised” people.Attacking the ball and not the man is a way to avoid engaging in real debate regarding the merits of gold as a diversification and as an academically and historically proven safe haven – one that has protected people both throughout history and again in recent years.
It is interesting that Roubini has not written a paper on gold nor has he conducted an interview about gold or written an article about gold in recent years. He confines his simplistic, ill informed anti gold comments to Twitter where he can be brief and not have his faulty thoughts and logic examined.
From a contrarian perspective, Roubini is a gift as his name calling and anti gold comments almost always coincide with an intermediate low in the gold price.
Read More @ GoldCore.com
The
political dam has broken in Europe. German Chancellor Angela Merkel no
longer has enough allies in the club of EU prime ministers to impose her
hairshirt agenda. Her methodical plans are disintegrating on every
front.
by Ambrose Evans-Pritchard, Telegraph.co.uk:
The immediate fate of Greece – and the euro – is in the hands of a
boyish motorcycle Marxist. Syriza leader deal Alexis Tsipras has vowed
to tear up the hated Memorandum, as the EU-IMF “troika” loan package is
known.
He showed no sign of backing off as he met his country’s president and began talks on the formation of an implausible Left front. “The popular verdict clearly renders the bailout null and void,” he said.
To those who warn that such defiance means an unstoppable lurch towards full default, a banking crash and EMU expulsion, he retorts that Greece has the “ultimate weapon”. It can bring down the whole European system if EU leaders refuse to soften the terms.
This bluff may be called. “Patience among the creditor countries is running out,” said Blanka Kolenikova from IHS Global Insight. Germany’s media says finance minister Wolfgang Schauble is itching to force Greece out of the euro as a salutary example, sure that Europe is strong enough to withstand the shock. This, in turn, is an illusion waiting to be punctured.
Read More @ Telegraph.co.uk
by Ambrose Evans-Pritchard, Telegraph.co.uk:
The immediate fate of Greece – and the euro – is in the hands of a
boyish motorcycle Marxist. Syriza leader deal Alexis Tsipras has vowed
to tear up the hated Memorandum, as the EU-IMF “troika” loan package is
known.He showed no sign of backing off as he met his country’s president and began talks on the formation of an implausible Left front. “The popular verdict clearly renders the bailout null and void,” he said.
To those who warn that such defiance means an unstoppable lurch towards full default, a banking crash and EMU expulsion, he retorts that Greece has the “ultimate weapon”. It can bring down the whole European system if EU leaders refuse to soften the terms.
This bluff may be called. “Patience among the creditor countries is running out,” said Blanka Kolenikova from IHS Global Insight. Germany’s media says finance minister Wolfgang Schauble is itching to force Greece out of the euro as a salutary example, sure that Europe is strong enough to withstand the shock. This, in turn, is an illusion waiting to be punctured.
Read More @ Telegraph.co.uk
by Lawrence Williams, MineWeb.com
For
whatever reason gold and silver prices have been falling recently, but
this may be irrelevant in the long term scheme of things..
Despite the gloom being felt by gold and silver investors as the price continues to be pushed downwards, the more level headed will realise that the price is still above that prevailing at the beginning of the current year and over $100 higher than at this time a year ago, which might not be considered a particularly poor performance overall.
Read More @ MineWeb.com
For
whatever reason gold and silver prices have been falling recently, but
this may be irrelevant in the long term scheme of things..Despite the gloom being felt by gold and silver investors as the price continues to be pushed downwards, the more level headed will realise that the price is still above that prevailing at the beginning of the current year and over $100 higher than at this time a year ago, which might not be considered a particularly poor performance overall.
Read More @ MineWeb.com
from The American Dream:
What would our founders say if they could see us now? Americans like
to believe that the rest of the world looks up to us, but the truth is
that the rest of the world is laughing at us. It may be very difficult
for us to admit, but the reality is that America has become a nation of
slobs. And I am not just talking about being overweight. Today,
Americans are physical, mental, emotional, moral, financial and
political slobs. We are addicted to entertainment, we are addicted to
shopping, we are addicted to food, we are addicted to prescription
drugs, and we are addicted to anything else that gives us the pleasure
that we crave. We allow our televisions to do our thinking for us and
our families are falling apart. Our lives center around pleasing
ourselves, and we have become one of the most narcissistic societies in
the history of the world. We are like a middle-aged man that has
totally let himself go. You know the guy who shows up for an important
event in sandals, sweatpants and a stained t-shirt? That is us. We are
only a shadow of what we once were as a nation, and we desperately need
to change course.
Read More @ EndOfTheAmericanDream.com
What would our founders say if they could see us now? Americans like
to believe that the rest of the world looks up to us, but the truth is
that the rest of the world is laughing at us. It may be very difficult
for us to admit, but the reality is that America has become a nation of
slobs. And I am not just talking about being overweight. Today,
Americans are physical, mental, emotional, moral, financial and
political slobs. We are addicted to entertainment, we are addicted to
shopping, we are addicted to food, we are addicted to prescription
drugs, and we are addicted to anything else that gives us the pleasure
that we crave. We allow our televisions to do our thinking for us and
our families are falling apart. Our lives center around pleasing
ourselves, and we have become one of the most narcissistic societies in
the history of the world. We are like a middle-aged man that has
totally let himself go. You know the guy who shows up for an important
event in sandals, sweatpants and a stained t-shirt? That is us. We are
only a shadow of what we once were as a nation, and we desperately need
to change course.Read More @ EndOfTheAmericanDream.com
by Patrick J. Buchanan, Lew Rockwell.com:
How Europe’s crisis resolves itself as yet remains unknown.
But with Sunday’s returns from France and Greece, the mega-trends on the Old Continent are unmistakable. And for the European Union, they are ominous.
Nationalism – be it economic nationalism or ethnic nationalism – is ascendant. Transnationalism and multiculturalism are in headlong if not irreversible retreat. The European project is itself imperiled.
Read More @ LewRockwell.com
How Europe’s crisis resolves itself as yet remains unknown.But with Sunday’s returns from France and Greece, the mega-trends on the Old Continent are unmistakable. And for the European Union, they are ominous.
Nationalism – be it economic nationalism or ethnic nationalism – is ascendant. Transnationalism and multiculturalism are in headlong if not irreversible retreat. The European project is itself imperiled.
Read More @ LewRockwell.com
from Silver Vigilante:
Here we are again, below thirty and staring $26 in the eye. In U.S.
trading today, silver touched on $29.40, easily breaking through the
touch-and-go (up) point of the prior day at $29.70. Today, $29.70 barely
existed, and straight down to $29.40 the metal went. Now, in the
aftermarket, silver is taking another beating down towards $29.00,
sitting currently (6:30pm pst) at $29.23. I expect the metal will bounce
off this number for now, but could easily be taken down through it
later on in Asia.
$26.00 is the next medium-term considerable support once the metals breaks through $29.00, as the yearly chart below will help demonstrate by showing the movement in the market over the past 14 months. You see how in March, September & December the metal was buoyed at that $26.00 price.
Read More @ SilverVigilante.com
Here we are again, below thirty and staring $26 in the eye. In U.S.
trading today, silver touched on $29.40, easily breaking through the
touch-and-go (up) point of the prior day at $29.70. Today, $29.70 barely
existed, and straight down to $29.40 the metal went. Now, in the
aftermarket, silver is taking another beating down towards $29.00,
sitting currently (6:30pm pst) at $29.23. I expect the metal will bounce
off this number for now, but could easily be taken down through it
later on in Asia.$26.00 is the next medium-term considerable support once the metals breaks through $29.00, as the yearly chart below will help demonstrate by showing the movement in the market over the past 14 months. You see how in March, September & December the metal was buoyed at that $26.00 price.
Read More @ SilverVigilante.com
from, Bloomberg :
Pacific Investment Management Co.’s Bill Gross and Jan Hatzius at Goldman Sachs Group Inc. (GS) say investors should prepare for additional bond purchases by the Federal Reserve, known as QE3, to combat a slowing U.S. economy.
A decision to buy more debt is “getting closer,” Gross,who runs the world’s largest mutual fund, wrote on Twitter yesterday. Hatzius, the chief economist at New York-based Goldman Sachs, predicted in a report the same day that the Fed will announce additional monetary easing when it meets in June.
Prospects for central bank asset purchases increased after a Labor Department report May 4 showed U.S. employers added 115,000 jobs in April, the smallest gain in six months. Europe’s debt crisis is threatening to slow global growth. Ten-year Treasury yields fell to 1.81 percent yesterday, approaching the record low of 1.67 percent set Sept. 23.
Read More @ Bloomberg.com
Pacific Investment Management Co.’s Bill Gross and Jan Hatzius at Goldman Sachs Group Inc. (GS) say investors should prepare for additional bond purchases by the Federal Reserve, known as QE3, to combat a slowing U.S. economy. A decision to buy more debt is “getting closer,” Gross,who runs the world’s largest mutual fund, wrote on Twitter yesterday. Hatzius, the chief economist at New York-based Goldman Sachs, predicted in a report the same day that the Fed will announce additional monetary easing when it meets in June.
Prospects for central bank asset purchases increased after a Labor Department report May 4 showed U.S. employers added 115,000 jobs in April, the smallest gain in six months. Europe’s debt crisis is threatening to slow global growth. Ten-year Treasury yields fell to 1.81 percent yesterday, approaching the record low of 1.67 percent set Sept. 23.
Read More @ Bloomberg.com
from TheAlexJonesChannel:
Despite the media blackout, Ron Paul is still a leading candidate in the 2012 U.S. Presidential election against President Barack Obama. On Sunday May 6 2012, the results out of Nevada and Maine marked a historical event in the history of presidential elections. He won overall 43 delegates in the two states, who he will be bringing to Tampa, Florida for the national convention. Ron Paul continues to shape national debate and the coming presidential election.
from Gold Core:
Gold hit a 4 month low today despite deepening worries that the
political upheaval in Greece may sink the country into chaos and
endanger the euro zone’s efforts to end the debt crisis – possibly
leading to contagion and or a monetary crisis. Some decent demand from
South East Asia has been reported at the $1,600/oz level and there are
also reports from Reuters of a “semi-official buyer of gold” emerging
“on dip below $1,600/oz”. Gold’s weakness yesterday may have been again
due to dollar strength and oil weakness – oil is now below $97 a barrel
(NYMEX). It may also have been due to wholesale liquidation which
created a new bout of “risk off” which has seen global equities and
commodities all come under pressure. However, gold’s weakness yesterday
was also contributed to by more unusual trading activity. As trading in
New York got underway, there was an unusually large bout of selling with
some 6,000 gold futures contracts sold in minutes and this led to
gold’s initial $10 fall to the $1,615/oz level. Momentum driven
algorithm trading may have then led to follow through selling and the
initial sell off may have emboldened tech traders to sell more leading
to the falls below $1,600/oz.
Read More @ GoldCore.com
Jim Sinclair’s Commentary
This is called the SWIFT system
India, Iran Sign Trade Deals By DEBIPRASAD NAYAK And BIMAN MUKHERJI
Updated May 9, 2012, 9:36 a.m. ET
MUMBAI—An Iranian trade delegation to India has sealed deals to buy shipments of rice, sugar and soybean from the South Asian country, as part of a plan for Tehran to use such pacts with India to get around U.S. financial sanctions on its oil shipments.
India has been unable to pay in full for Iranian oil imports because tightened U.S. sanctions have made it difficult to access U.S. dollars for transactions with Iran. Instead, Iran has agreed to accept payment in Indian rupees and sent a trade delegation to India this week to look for goods to buy with the money it earns.
More…
Jim Sinclair’s Commentary
ISDA Said to Begin Biggest Revision to Credit Swaps Since 2009 2012-05-09 13:03:41.638 GMT
May 9 (Bloomberg) — Credit-default swaps users will meet this week in New York and London to discuss changes to the contracts in what may become the biggest revisions since 2009, according to people familiar with the situation.
Possible changes to standard contracts, which are governed by the International Swaps and Derivatives Association, include how debt-for-equity exchanges would be treated after a bankruptcy, specifying that credit swaps only cover losses from defaults that occur after their purchase and clarifying how the date of a so-called credit event is determined, said the people, who asked not to be named because the discussions are private.
ISDA’s credit steering committee is considering the changes after the debt restructuring of Greece, the largest in history, posed the biggest test for the $26.5 trillion credit-default swaps market since banks including JPMorgan Chase & Co. created it more than a decade ago. ISDA, based in New York, last overhauled the derivatives three years ago in the ‘Big Bang’ and ‘Small Bang’ protocols that created a new set of standards to increase transparency and confidence in the market.
The May 11 meeting of the credit steering committee will begin the formal process of revamping the contracts by collecting proposed changes from the members, the people said. Any changes must be approved by users of the existing contracts because the changes will apply to those trades already executed, they said. More than 2,000 banks, hedge funds and other asset managers in the credit-swaps market in 2009 agreed to adopt the ‘Big Bang’ protocol.
More…
Jim Sinclair’s Commentary
For your information.
U.S. Millionaires Told Go Away as Tax Evasion Rule Looms By Sanat Vallikappen – May 8, 2012 11:46 PM ET
Go away, American millionaires.
That’s what some of the world’s largest wealth-management firms are saying ahead of Washington’s implementation of the Foreign Account Tax Compliance Act, known as Fatca, which seeks to prevent tax evasion by Americans with offshore accounts. HSBC Holdings Plc (HSBA), Deutsche Bank AG, Bank of Singapore Ltd. and DBS Group Holdings Ltd. (DBS) all say they have turned away business.
“I don’t open U.S. accounts, period,” said Su Shan Tan, head of private banking at Singapore-based DBS, Southeast Asia’s largest lender, who described regulatory attitudes toward U.S. clients as “Draconian.”
The 2010 law, to be phased in starting Jan. 1, 2013, requires financial institutions based outside the U.S. to obtain and report information about income and interest payments accrued to the accounts of American clients. It means additional compliance costs for banks and fewer investment options and advisers for all U.S. citizens living abroad, which could affect their ability to generate returns.
“In the long run, if Americans have less and less opportunities to invest overseas, it would be a disadvantage,” Marc Faber, the fund manager and publisher of the Gloom, Boom and Doom report, said last month in Singapore.
The almost 400 pages of proposed rules issued by the U.S. Internal Revenue Service in February create “unnecessary burdens and costs,” the Institute of International Bankers and the European Banking Federation said in an April 30 letter to the IRS, one of more than 200 submitted to the agency. The IRS plans to hold a hearing May 15 and could amend how and when some aspects of the rules are implemented. It can’t rescind the law.
More…
Jim Sinclair’s Commentary
It was the change in my own attitude toward the game that was of supreme importance to me. It taught me, little by little, the essential difference between betting on fluctuations and anticipating inevitable advances and declines, between gambling and speculating. I think it was a long step forward in my trading education when I realized at last that when old Mr. Partridge kept on telling the other customers, "Well, you know this is a bull market!" he really meant to tell them that the big money was not in the individual fluctuations but in the main movements that is, not in reading the tape but in sizing up the entire market and its trend. And right here let me say one thing: After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight! It is no trick at all to be right on the market. You always find lots of early bulls in bull markets and early bears in bear markets. I’ve known many men who were right at exactly the right time, and began buying or selling stocks when prices were at the very level which should show the greatest profit. And their experience invariably matched mine that is, they made no real money out of it. Men who can both be right and sit tight are uncommon. I found it one of the hardest things to learn. But it is only after a stock operator has firmly grasped this that he can make big money. It is literally true that millions come easier to a trader after he knows how to trade than hundreds did in the days of his ignorance. – Jesse Livermore
Jim Sinclair’s Commentary
China’s Gold Imports Jump as Country May Become Biggest User By Bloomberg News – May 8, 2012 5:25 AM ET
Mainland China’s gold imports from Hong Kong surged more than sixfold in the first quarter, adding to signs that the country may displace India as the world’s largest consumer of the precious metal on an annual basis.
Imports from Hong Kong were 135,529 kilograms (135.53 metric tons) between January and March, from 19,729 kilograms in the year-earlier period, according to data from the Census and Statistics Department of the Hong Kong government. Shipments in March rose 59 percent from February, yesterday’s data showed.
Demand has climbed in the world’s second-largest economy as rising incomes and curbs on property speculation boosted purchases. China may become the biggest user annually this year, according to a forecast from the producer-funded World Gold Council. Last year, total Indian demand including for jewelry and investment was 933.4 tons to China’s 769.8 tons.
“We’re looking at another solid year for Chinese demand based on these early numbers,” said Nick Trevethan, senior commodities strategist at Australia & New Zealand Banking Group Ltd. “While it’s largely related to price, negative real interest rates should keep demand strong.”
Gold has lost 15 percent from its record $1,921.15 an ounce in September as the European debt crisis, combined with reduced expectations for further monetary easing by theFederal Reserve, boosted the dollar. Spot gold traded 0.6 percent lower at $1,629.20 at 5:24 p.m. in London.
More…
Today’s Items:
Finally, Please prepare now for the escalating economic and social unrest. Good Day
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Despite the media blackout, Ron Paul is still a leading candidate in the 2012 U.S. Presidential election against President Barack Obama. On Sunday May 6 2012, the results out of Nevada and Maine marked a historical event in the history of presidential elections. He won overall 43 delegates in the two states, who he will be bringing to Tampa, Florida for the national convention. Ron Paul continues to shape national debate and the coming presidential election.
Gold hit a 4 month low today despite deepening worries that the
political upheaval in Greece may sink the country into chaos and
endanger the euro zone’s efforts to end the debt crisis – possibly
leading to contagion and or a monetary crisis. Some decent demand from
South East Asia has been reported at the $1,600/oz level and there are
also reports from Reuters of a “semi-official buyer of gold” emerging
“on dip below $1,600/oz”. Gold’s weakness yesterday may have been again
due to dollar strength and oil weakness – oil is now below $97 a barrel
(NYMEX). It may also have been due to wholesale liquidation which
created a new bout of “risk off” which has seen global equities and
commodities all come under pressure. However, gold’s weakness yesterday
was also contributed to by more unusual trading activity. As trading in
New York got underway, there was an unusually large bout of selling with
some 6,000 gold futures contracts sold in minutes and this led to
gold’s initial $10 fall to the $1,615/oz level. Momentum driven
algorithm trading may have then led to follow through selling and the
initial sell off may have emboldened tech traders to sell more leading
to the falls below $1,600/oz. Read More @ GoldCore.com
Jim Sinclair’s Commentary
This is called the SWIFT system
India, Iran Sign Trade Deals By DEBIPRASAD NAYAK And BIMAN MUKHERJI
Updated May 9, 2012, 9:36 a.m. ET
MUMBAI—An Iranian trade delegation to India has sealed deals to buy shipments of rice, sugar and soybean from the South Asian country, as part of a plan for Tehran to use such pacts with India to get around U.S. financial sanctions on its oil shipments.
India has been unable to pay in full for Iranian oil imports because tightened U.S. sanctions have made it difficult to access U.S. dollars for transactions with Iran. Instead, Iran has agreed to accept payment in Indian rupees and sent a trade delegation to India this week to look for goods to buy with the money it earns.
More…
Jim Sinclair’s Commentary
Whatever comes of this will protect the banks that have issued them.
ISDA Said to Begin Biggest Revision to Credit Swaps Since 2009 2012-05-09 13:03:41.638 GMT
May 9 (Bloomberg) — Credit-default swaps users will meet this week in New York and London to discuss changes to the contracts in what may become the biggest revisions since 2009, according to people familiar with the situation.
Possible changes to standard contracts, which are governed by the International Swaps and Derivatives Association, include how debt-for-equity exchanges would be treated after a bankruptcy, specifying that credit swaps only cover losses from defaults that occur after their purchase and clarifying how the date of a so-called credit event is determined, said the people, who asked not to be named because the discussions are private.
ISDA’s credit steering committee is considering the changes after the debt restructuring of Greece, the largest in history, posed the biggest test for the $26.5 trillion credit-default swaps market since banks including JPMorgan Chase & Co. created it more than a decade ago. ISDA, based in New York, last overhauled the derivatives three years ago in the ‘Big Bang’ and ‘Small Bang’ protocols that created a new set of standards to increase transparency and confidence in the market.
The May 11 meeting of the credit steering committee will begin the formal process of revamping the contracts by collecting proposed changes from the members, the people said. Any changes must be approved by users of the existing contracts because the changes will apply to those trades already executed, they said. More than 2,000 banks, hedge funds and other asset managers in the credit-swaps market in 2009 agreed to adopt the ‘Big Bang’ protocol.
More…
Jim Sinclair’s Commentary
For your information.
U.S. Millionaires Told Go Away as Tax Evasion Rule Looms By Sanat Vallikappen – May 8, 2012 11:46 PM ET
Go away, American millionaires.
That’s what some of the world’s largest wealth-management firms are saying ahead of Washington’s implementation of the Foreign Account Tax Compliance Act, known as Fatca, which seeks to prevent tax evasion by Americans with offshore accounts. HSBC Holdings Plc (HSBA), Deutsche Bank AG, Bank of Singapore Ltd. and DBS Group Holdings Ltd. (DBS) all say they have turned away business.
“I don’t open U.S. accounts, period,” said Su Shan Tan, head of private banking at Singapore-based DBS, Southeast Asia’s largest lender, who described regulatory attitudes toward U.S. clients as “Draconian.”
The 2010 law, to be phased in starting Jan. 1, 2013, requires financial institutions based outside the U.S. to obtain and report information about income and interest payments accrued to the accounts of American clients. It means additional compliance costs for banks and fewer investment options and advisers for all U.S. citizens living abroad, which could affect their ability to generate returns.
“In the long run, if Americans have less and less opportunities to invest overseas, it would be a disadvantage,” Marc Faber, the fund manager and publisher of the Gloom, Boom and Doom report, said last month in Singapore.
The almost 400 pages of proposed rules issued by the U.S. Internal Revenue Service in February create “unnecessary burdens and costs,” the Institute of International Bankers and the European Banking Federation said in an April 30 letter to the IRS, one of more than 200 submitted to the agency. The IRS plans to hold a hearing May 15 and could amend how and when some aspects of the rules are implemented. It can’t rescind the law.
More…
Jim Sinclair’s Commentary
MSM with MOPE looks only at the Euro side of this reality.
It was the change in my own attitude toward the game that was of supreme importance to me. It taught me, little by little, the essential difference between betting on fluctuations and anticipating inevitable advances and declines, between gambling and speculating. I think it was a long step forward in my trading education when I realized at last that when old Mr. Partridge kept on telling the other customers, "Well, you know this is a bull market!" he really meant to tell them that the big money was not in the individual fluctuations but in the main movements that is, not in reading the tape but in sizing up the entire market and its trend. And right here let me say one thing: After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight! It is no trick at all to be right on the market. You always find lots of early bulls in bull markets and early bears in bear markets. I’ve known many men who were right at exactly the right time, and began buying or selling stocks when prices were at the very level which should show the greatest profit. And their experience invariably matched mine that is, they made no real money out of it. Men who can both be right and sit tight are uncommon. I found it one of the hardest things to learn. But it is only after a stock operator has firmly grasped this that he can make big money. It is literally true that millions come easier to a trader after he knows how to trade than hundreds did in the days of his ignorance. – Jesse Livermore
Jim Sinclair’s Commentary
This means nothing to algorithms and paper traders, but it will mean a lot to the price of gold in time.
China’s Gold Imports Jump as Country May Become Biggest User By Bloomberg News – May 8, 2012 5:25 AM ET
Mainland China’s gold imports from Hong Kong surged more than sixfold in the first quarter, adding to signs that the country may displace India as the world’s largest consumer of the precious metal on an annual basis.
Imports from Hong Kong were 135,529 kilograms (135.53 metric tons) between January and March, from 19,729 kilograms in the year-earlier period, according to data from the Census and Statistics Department of the Hong Kong government. Shipments in March rose 59 percent from February, yesterday’s data showed.
Demand has climbed in the world’s second-largest economy as rising incomes and curbs on property speculation boosted purchases. China may become the biggest user annually this year, according to a forecast from the producer-funded World Gold Council. Last year, total Indian demand including for jewelry and investment was 933.4 tons to China’s 769.8 tons.
“We’re looking at another solid year for Chinese demand based on these early numbers,” said Nick Trevethan, senior commodities strategist at Australia & New Zealand Banking Group Ltd. “While it’s largely related to price, negative real interest rates should keep demand strong.”
Gold has lost 15 percent from its record $1,921.15 an ounce in September as the European debt crisis, combined with reduced expectations for further monetary easing by theFederal Reserve, boosted the dollar. Spot gold traded 0.6 percent lower at $1,629.20 at 5:24 p.m. in London.
More…
Today’s Items:
First…
Australia To Have Record Surplus
http://www.telegraph.co.uk
http://www.uncommonwisdomdaily.com
Australia To Have Record Surplus
http://www.telegraph.co.uk
http://www.uncommonwisdomdaily.com
Australia will become the first major
economy in the developed world to record a surplus since the start of
the global financial crisis. It has benefited from a China-fueled
mining boom; thus, it now has 11 billion pound savings from the extra
revenues. So, what is the government doing? Deep tax cuts and
increasing pensions; which, will come back and bite with the slowing
down in the Chinese economy.
From cars to homes, Americans are getting
used to the idea of renting the good life; since they cannot, or will
not, buy it outright. One possible reason is the increased mobility of
our society; however, the unemployment and the number of people
dependent upon government makes that unlikely. According to Moody’s, by
late 2011 it was cheaper to rent than to own in 72% of American
metropolitan areas, up from 54% a decade ago. How long before Americans
are going to be renting cloths on their backs?
Mr. Vacinate the children till they are
dead Gates has chimed in on gold, claiming that gold prices are
psychological. He does claim that he made money on silver; however, he
appears against silver and gold. So, owning gold is psychological? How
about owing paper, or digital, based assets? The difference is like
asking if a person is hungry, would they prefer food or a small framed
picture of food? It seems more of a leap of faith, or fantasy, to own
paper than owning something physical.
Next…
As China Buys, Sellers Push Gold Down To 4 Month Lows
http://www.zerohedge.com
http://www.goldmoney.com
As China Buys, Sellers Push Gold Down To 4 Month Lows
http://www.zerohedge.com
http://www.goldmoney.com
Make no mistake, if Central Banks and
nations like China and India are buying gold, they certainly know
something that Buffett, and others, are not saying. With everyone
running away from the euro to the perceived safe harbor of the dollar,
gold and silver prices are falling for the time being. With the paper
to physical ratio so high, the hyper-inflationary crisis with the dollar
will see physical gold and silver spike big time; therefore, be your
own central bank and keep stacking.
Criminal prosecutions are at 20-year lows
for corporate securities and bank fraud. Instead, protestors, farmers,
and individuals are targeted for unfair prosecution. If one doubt
this, then why is Jon Corzine not wearing orange after claiming so much
money just vaporized? In short, justice from the Department of
Injustice today is for sale and it is expensive.
Here we go again folks, there are renewed
calls to switching to a steel-layered composition for all circulating
U.S. coin denominations. Copper, zinc, and nickel is too expensive
now. The debasing scheme would save the U.S. Mint up to $200 million
annually. So how long before we start seeing wooden nickels?
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