By: Steve St. Angelo, SRSrocco Report - 24 July, 2015
Investors worried about the coming explosions in the financial system purchased record numbers of Gold Eagles in July. Not only are July sales of Gold Eagles the highest in 2015, they surpass all monthly totals for the past two years…. and we still have another week remaining. The reason for the big surge in the U.S. Mint’s Gold Eagle sales is due to the increasing number of financial time bombs that are now set to go off in the future. Full Story
This past Sunday night and Monday's action in gold needs to be discussed of what I believe is now a rapidly moving big picture. $2.7 billion worth of gold futures were sold in just 2 minutes Sunday night. As I have asked before, "who" could possibly "own" this much gold other than an official source? The answer of course is nearly no one other than a very small handful of ETF's. In perspective, $2.7 billion worth of gold is roughly 3% of global production. Said differently, it amounts to nearly 10 days worth of labor and production worldwide... sold in less than two minutes! Full Story
By: Adam Hamilton, Zeal Intelligence - 24 July, 2015
Gold stocks suffered a full-blown panic this past week! This exceedingly-rare magnitude of selloff was triggered by extreme futures shorting intentionally executed to force a flash crash in gold. After gold’s major multi-year support failed in this Machiavellian onslaught, gold stocks plummeted. The levels of fear were so epic that this entire sector was slammed much deeper into fundamentally-absurd price territory. Full Story
We have already written that China updated its official gold holdings. However, because there are still a lot of misunderstandings about the impact of this event on the gold market outlook, we will examine this issue in a more detailed way. Full Story
Recently we’ve been writing about the downside potential in precious metals and the danger for precious metals bulls. The gold miners and Silver have led the rout while Gold finally cracked support ($1140-$1150/oz) last week. That led to a severe selloff across the complex. As we pen this on Thursday evening it appears Friday could be a nasty day if Gold breaks below $1080/oz. Nevertheless, the odds now favor a rebound in the weeks ahead and especially in the gold miners. Full Story
By: Chris Powell, Secretary/Treasurer, GATA - 24 July, 2015
Zero Hedge tonight mocks the purported search by mainstream financial news organizations for the instigator of Sunday night's nuclear assault on the gold market, and concludes that the trail will lead either to some Indian guy trading out of the dingy basement of his parents' home in a London suburb or to the luxurious offices of the Bank for International Settlements in Basel, Switzerland, the central bank of the central banks. Of course mainstream financial news organizations would sooner interview Kim Kardashian about the gold market than ever have to direct a critical question about gold to the BIS or any other central bank. Full Story
When most people think of distressed investing, they think of buying CCC-rated bonds at 20 or 30 cents on the dollar, then maybe sitting in bankruptcy court to divvy up the capital structure, making healthy risk-adjusted returns in the end. You just need to hire a few lawyers. Distressed investors are a different breed of cat. It’s one of those countercyclical businesses, like repo men, who do well when everyone else is getting hammered. Full Story
In today’s Outside the Box, my good friend Lacy Hunt of Hoisington Investment Management reminds us that since the 1990-91 recession, the 30-year Treasury bond yield has dropped from 9% to 3%, a downward move nearly identical to the decline in the rate of inflation, which fell from just over 6% in 1990 to 0% today. Therefore, Lacy says, “(I)t was the backdrop of shifting inflationary circumstances that once again determined the trend in long-term Treasury bond yields.” Full Story
While the media and investors are focused on Greece, Puerto Rico is having a debt meltdown of its own. The U.S. territory owes lenders over $70 billion, $5.4 billion of which is due in the next 12 months. But without some form of debt restructuring, says Governor Alejandro García Padilla, it will be unable to meet its obligations. Countless municipal bond fund investors—many of them unaware they have exposure to the Caribbean island—could be affected. Full Story
The anti-gold propaganda spewing forth from all corners of the media his greater and more intense than I’ve ever seen any investment propaganda. Every time I turn on Bloomberg, FoxBiz or CNBC there’s a discussion of how useless gold is. It’s beyond surreal – it’s criminal. Full Story
Examine the 20 year log scale chart of monthly gold. I have drawn lines connecting highs and lows. The result is an expanding channel or megaphone pattern. The increasing prices are exponential (log scale chart) because of exponential increases in debt, money supply, and Keynesian craziness, although I have no graph to prove the latter. Full Story
In the early 1920s, George S. Clason wrote a series of articles about acquiring and keeping wealth that were passed out by insurance companies to their customers. In 1926, he combined these essays into a book titled, The Richest Man in Babylon. To this day, that book remains in print. Full Story
In case you thought you were smart enough to know why the Fed wants to do what it supposedly wants to do [1] MarketWatch sets you straight with the real scoop. We’ll use this as a talking point and see what comes of it… Full Story
More and more institutions are trying to make it harder for you to move your money into cash. Globally, over $5 trillion in debt currently have negative yields in nominal terms, meaning the bond literally has a negative yield when it trades. In the simplest of terms this means that investors are PAYING to own these bonds. Full Story
There is a myth prevalent today that the gold price always falls when interest rates rise. The logic is that when interest rates rise it is more expensive to hold gold, which just sits there not earning anything. And since markets discount future expectations, gold will even fall when a rise in interest rates is expected. With the Fed's Open Market Committee debating the timing of an interest rate rise to take place possibly in September, it is therefore no surprise to market commentators that the gold price continues its bear market. Only the myth is just that: a myth denied by empirical evidence. Full Story
There is a lot to go over tonight in regards to commodities and the precious metals complex. A while back I wrote a report on the commodities in general getting ready for the next possible leg down which will fuel the deflationary pressures that really took hold last about this time. That’s when the US dollar finally broke out of its massive base and charged higher topping out in March of this year and has been consolidating those gains ever since. Lets start by looking at the big base the US dollar broke out of last year at this time and the strong impulse move up as shown by the string of white candlesticks. That’s what a strong impulse move looks like when all the pent up energy finally has a change to escape. Full Story
When you think logically and or use old parameters to gauge this market, every single bone in your body probably screams out that this market should crash and burn. That is true, but what is also true is that as nothing is real, logic has no place when it comes to the illusory. How can you use logic (which is based on using real and compelling data) to judge an event that is illusory in nature? Full Story
For you stock-market buffs, here’s a blast from the past: “Plunge Protection Team.” You remember those guys? That’s the catchy nickname for a presidential group of officially sanctioned market manipulators who sprung out of Wall Street’s 1987 crash, and who have been pulling strings and pushing levers behind the scenes ever since to keep the markets from collapsing. Full Story
Instead of letting dying technologies bleed your portfolio dry, I recommend you focus on up-and-coming blockbusters in the tech sector. Like lithium-ion batteries, without which smartphones, tablets, electric cars, and many other new breakthroughs wouldn’t exist. I expect one lithium producer in particular to do great for our Yield Shark portfolio. Full Story
By: Peter Schiff, CEO of Euro Pacific Capital - 22 July, 2015
In his July 17th Blog, Let's Get Real About Gold, author and Wall Street Journal columnist Jason Zweig likened investor interest in gold with the "Pet Rock" craze of the 1970's, when consumers became convinced that a rock in a box would provide continuous companionship, elevate their social standing, and give them something hip to talk about at parties. Zweig asserts that investor faith in gold, which he argues is just another inert mineral with good marketing, is similarly irrational, and has kept people from putting money in the much more lucrative stock market. Full Story
Given that JPM seems to have all but extricated itself from it’s big short - the one it inherited from Bear Sterns in 2008 — while accumulating hundred of millions of physical ounces for it’s own warehouses… things may be very different this time around. Yes, outside market forces, the fall of the dollar, a natural disaster… these things will likely play out at some point. But for now, we are ‘blessed’ with these reports, and lower prices. Full Story
Will the author of ‘Hot Commodities’ and the man who spotted the boom in the sector before anybody else, Jim Rogers now start buying gold? He said earlier this year that he would when the bull market showed a 50 per cent retracement. That is to say the gold price had fallen to halfway between the $287 an ounce it was in 2000 to the $1,923 it reached in 2011. Full Story
By: Steve St. Angelo, SRSrocco Report - 22 July, 2015
The once great U.S. Empire is now in big trouble. Cracks are beginning to appear in the once great American Dream as the country’s economic and financial systems are on the verge of an epic collapse. Unfortunately, its citizens will be the last to know as they have totally lost the ability to distinguish between “Illusionary” and “Real” wealth. Full Story
By: Steve Saville, The Speculative Investor - 22 July, 2015
Every attempt to come up with a single number (a price index) that reflects the change in the purchasing power (PP) of money is bound to fail. The main reason is that disparate items cannot be added together and/or averaged to arrive at a sensible result. However, some price indices are less realistic than others. In particular, some well-meaning private-sector efforts to come up with a consumer price index (CPI) that does a better job than the official CPI have generated some of the least-plausible numbers. Full Story
There must be a better way! Mathematically unpayable debt, confiscations of private assets, uncontrolled government spending, unfunded liabilities, missing gold, paper gold, officially sanctioned Ponzi Schemes, pension funds on the verge of disaster, and so many more indicate there must be a better way! Full Story
Josef Goebbels implemented Bernays’ theories and techniques in crafting the infamous Nazi Germany propaganda machine. As Naom Chomsky chronicles in his preface to Bernays’ book, “Propaganda,” the U.S. Government and U.S. corporations hired Bernays in late 1920’s in order to utilize his techniques on the American public. The rest, as they say, is history…anyone remember 9/11? Full Story
This past week, we saw gold and the GDX break their 2014 lows, as we have been expecting. So, while the bears are rejoicing, many of the bulls are feeling quite heartbroken for the umpteenth time since this correction began in 2011. But, the bears should not rejoice too much or else they will soon find themselves in the same position as the bulls in 2011. I am quite confident that the roles will reverse in the not too distant future, as we are moving much closer to the end of this multi-year correction. Full Story
As a group, gold stocks are trading like the entire sector is going “off the board”. Is that going to happen? Perhaps, but I’m a solid buyer anyways! That’s the quarterly bars ratio chart of the XAU gold stocks index, versus the price of gold. It’s clear that gold stocks are trading lower now against gold than when gold was under $300 an ounce! Some analysts argue that gold is going to $5000 or more, yet they suggest investors should not buy any gold, silver, or gold stocks now. They claim that gold might fall another few hundred dollars, so it should be “avoided” until it goes to their personal price targets. Full Story
We can’t count how many articles we saw today, bemoaning gold going down. The price action is bad for gold (whatever that means). China underreported their gold holdings. No, China doesn’t care about gold. No they want the price to go down so they can buy it cheap. No, they want to convince the IMF to include the yuan (which has capital controls, by the way) into the SDR basket. No, China really intends to revalue gold (whatever that means). Full Story
Different economic schools view money differently. Even for the doctrines advocating gold as money in some way, there’s vast differences. An example is that followers of the Austrian school of economics propose that gold should be used as money generally whereas Freegolders view fiat money as the natural medium for exchange with gold as a store of value. Full Story
Greece defaulted at the end of June, and metals investors expected higher prices in July. What we expected isn’t what we got. It isn’t the first or last time markets surprised investors. Do lower spot prices mean precious metals are failing as a safe-haven investment? Full Story
The first 10 years of the bull market in gold was in hindsight plain sailing allowing us to generate profits by sticking with the trend. Alas all bull markets come to an end and so it did in 2011 when gold peaked at $1900/oz. Silver, despite having numerous industrial uses also felt the draft and fell dramatically along with the mining sector which lost approximately 70% of its value during a 3 year period of pure carnage. Full Story
Seduced by silver at the tender age of 11, David Morgan started investing in the stock market while still a teenager. A precious metals aficionado armed with degrees in finance and economics as well as engineering, he created the Silver-Investor.com website and originated The Morgan Report, a monthly that covers economic news, overall financial health of the global economy, currency problems ahead and reasons for investing in precious metals. Full Story
By: Steve Saville, The Speculative Investor - 21 July, 2015
Money is supposed to be neutral — a medium of exchange and a yardstick. It is inherently no more problematic for totally disparate countries to use a common currency than it is for totally disparate countries to use common measures of length or weight. On the contrary, there are advantages to the use of a common currency in that trading and investing are made more efficient. Full Story
In the US, Coal has become a political hot button. Consequently it is very easy to forget just how important the commodity is to global energy demand. Coal accounts for 40% of global electrical generation. It might be the single most economically sensitive commodity on the planet. With that in mind, consider that Coal ENDED a multi-decade bull market back in 2012. In fact, not only did the bull market end… but Coal has erased virtually ALL of the bull market’s gains (the green line represents the pre-bull market low). Full Story
Can we really be halfway through the year? That’s what my calendar tells me, which means it’s time for the 2015 commodities halftime report. The periodic table of commodity returns, consistently one of our most popular pieces, has been updated to reflect the first half of 2015. Click on the table for a larger image. If you’d prefer your own copy of the original, simply email us. Full Story
The amount of effort and degree of criminality involved in this latest effort to push down the price of gold with Ponzi paper is directly proportional to the severity of the economic and financial problem winding its way toward us still hidden behind fraudulent bookkeeping and propaganda. But if 2008 was the equivalent of a small roadside bomb in Afghanistan, what will soon hit our system will be like a nuclear bomb detonating in Times Square. Full Story
It must appear sweet to be an American through the eyes of the third world – all that wealth and not an ounce of common sense – outside looking in. That’s why they want in. That’s why the West has immigration problems from the Mexican border to the Mediterranean – because the poor are becoming increasingly desperate. And you can’t blame them, knowing what awaits them if they can make the hurdle – heaven is free money. Full Story
Back in May, I sent followers of this public blog a Gold Cycle Update, outlining how gold had a 75% chance of failing to rally, resulting in an unexpected downturn. And then 3 weeks later, I sent a follow up article (Approach An Endpoint), where I outlined how gold was heading for a major Investor Cycle failure below $1,136. As was predicted, the Gold sector was hammered this past week, with new lows being achieved in every nook and cranny of the precious metals complex. Full Story
For what seems like forever we have been mechanical in managing the precious metals because they have been bearish; period. This has been based on short and long-term technical indications and incomplete macro fundamentals. Gary the robot has had no difficulty whatsoever holding this stance despite Gary the human’s unwavering view that the value of gold is in its insurance and long-term retained value qualities. Full Story
We are believed to be on the verge of another deflationary downwave, similar to or more severe than the one which drove the dollar spike – and commodity slump – between July of last year and March, and caused by an intensification of the debt crisis, with increasing capital flight out of Europe and into dollar assets as the EU crumbles. More QE will not save the situation, as it is already discredited and will have no more effect than trying to inflate a tire or rubber boat that has a big hole in it. Full Story
India is meeting stiff resistance in its drive to make buying of gold jewelry more transparent and to channel demand into paper gold to stop the metal being used to hide billions of dollars of undeclared money. The jewelry trade says Modi’s plans won’t deter Indians from buying gold to keep their wealth away from the authorities. Furthermore, dealers are set to boycott tax requirements for bigger purchases. Full Story
The precious metals are in a secular bull market which will likely last 15 to 20 years, perhaps longer. Given its start in the 1999-2001 timeframe, that means the current bull should run until 2014 to 2021. According to Richard Russell all bull markets have three phases. The third phase is marked by mania and a parabolic rise into a peak that is higher than even the staunchest bull expects. Full Story
There are many opinions about what factors drive the price of gold. Among the candidates you will find: inflation rates, U.S. dollar exchange rate, real interest rate, geopolitics, oil prices, market volatility and crises, mine production, jewelry demand, speculation, technological demand, central banks’ actions, manipulation, and investment demand. We will deal with them in this and the following editions of the gold Market Overview. We will begin by rejecting production and consumption. It does mean that they do not affect the gold price; however we are interested in factors which drive the gold price. Full Story
The prices of the monetary metals cascaded downward this week, and the ratio of the gold price to the silver price rose accordingly. Many analysts and speculators are puzzled. With everything going on in the world, gold should go up. After all, China released its new gold holdings and the banking system in parts of the world (e.g. Greece) is a mess, and many central banks are printing money, etc. Full Story
Catherine Austin Fitts, former Assistant Secretary of Housing and Federal Housing Commissioner and president of Solari, Inc., publisher of the Solari Report, returns to the show. Arch Crawford, head of Crawford Perspectives, is sticking with his dire prognostication for the rest of 2015. Full Story
This recording is of the live event that took place at GoldSeek.com on Tuesday, July 14th at 11AM EST. Vanessa Collette of GoldSeek TV & Cambridge House Live moderated. Guests include: - RICK RULE: President & CEO of Sprott US Holdings - RUDI FRONK: Chairman & CEO of Seabridge Gold Inc. (NYSE: SA | TSX: SEA) - JONATHAN AWDE: President & CEO of Gold Standard Ventures Corp. (NYSE-MKT: GSV | TSX-V: GSV) Full Story
Sellers effortlessly demolished the sturdy-looking Hidden Pivot support at 1135.00 that we’d been using as a minimum downside target. This augurs more weakness over the near term, presumably to the 1125.20 target shown. (I moved ‘A’ up to the next peak to come up with this target.) A tradable bounce is very likely, since, as you may recall, it coincides with a very major Hidden Pivot support that comes from the monthly chart. Full Story
So the Chinese restate their gold reserves after six years of pretending that nothing has changed and everybody is surprised how little they now claim to have bought. None other than Bloomberg thought they might have three times that amount of gold judging by the publicly available evidence of buying. Full Story
By: Chris Powell, Secretary/Treasurer, GATA - 19 July, 2015
The problem is that these people are respectable and haven't wanted to risk their respectability with the financial establishment, with which they have been doing business. Further, these people have had business obligations to other respectable people who might have been harmed by any candor. But as "financial repression" by central banks has intensified beyond all expectation, these people's businesses now are being utterly destroyed and, being destroyed, these people no longer have much to lose by acknowledging gold price suppression. Respectability no longer is of much use to them. Full Story
Almost everyone wants to be more productive. I include myself in that group – there are lots of ways I could be more productive. When I have conversations with people I think are very productive, they almost always tell me they wish they were more productive. What more could anyone expect from them? Full Story
Despite the continued technical, paper induced bias to the downside, recent news that the US Mint has stopped silver eagle production is once again is being singled as the likely cause for the premium surges now being observed across all physical silver retail products. Full Story
Finally last Friday the People’s Bank Of China (PBOC) updated its official gold reserves, from 1,054 tonnes, a figure reported since 2009, to 1,658 tonnes. Most gold analysts expected a number substantially higher than what was just disclosed. In this post we’ll analyze the 1,658 tonnes figure. Full Story
By: Chris Powell, Secretary/Treasurer, GATA - 19 July, 2015
China's reporting also may be no less dishonest than the reporting of gold reserves by countries that think they're being honest. For any country that vaults its gold, as many do, at the Federal Reserve Bank of New York or the Bank of England, the nerve centers of gold price suppression, may not really have what it thinks it has on any particular day. Full Story
A very strong week for markets with some heavyweight stock reporting great earnings and surging, taking the Nasdaq nicely higher, although the Russell 2000 and S&P are lagging and may find some resistance. We are seeing relatively overbought readings and at resistance so some rest and retracement looks due in the week ahead but we do have some more large earnings numbers coming up and that should be very interesting and perhaps profitable. Full Story
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