You've likely heard that the German central bank announced it will begin withdrawing part of its massive gold holdings from the United States as well as all its holdings from France. By 2020, Bundesbank says it wants half its gold reserves stored in its own vault in Germany. Why would it want to physically move the metal from New York? It's not as if US vaults are not secure, and since Germany already owns the gold, does it really matter where it sits? Full Story
It’s well known that a huge chunk of global gold production is performed by a small group of very large mining companies. These mega-miners own the world’s biggest mines, possess the deepest pipelines of projects, and for the most part have large coffers that easily support reserve renewal via organic development and acquisitions. Full Story
Among the Number of Forces which move Markets, only a few will be critical Market Movers for the next year. It will be the interplay among the following which will move the Markets. It is essential to identify these and to monitor them in order to make profitable and protective investing decisions. Full Story
Do you want to buy silver? Have you considered seasonal price patterns before jumping in with both feet? What typically has happened to the price of silver, in past years, following a March/April purchase? Does it make sense to buy now or wait to make that purchase? Full Story
By: CHRIS POWELL, Secretary/Treasurer - 29 March, 2013
Grant Williams, portfolio adviser to Vulpes Investment Management in Singapore and editor of the Things That Make You Go Hmmm. ... newsletter has posted at YouTube his brilliant presentation March 19 at the Mines and Money conference in Hong Kong, which, drawing in part of GATA's research, outlined and illustrated the Western central bank gold price suppression scheme built on the creation of a vast supply of imaginary "paper gold." Full Story
The latest financial progression of currency devaluation, asset confiscation, capital controls and ultimately political upheaval seems to have become a slippery slope that could easily decimate whatever investment funds you may currently have placed in paper assets. Full Story
The CPI, in our view, does not accurately measure inflation, which accounts for some of the discrepancy our reader is pointing out. However, the proper definition of inflation is "an increase in the quantity of money," which we've had in spades. We've not experienced the concomitant increase in prices, which is what we're addressing in this article. Full Story
Dennis polled his readers some weeks ago to find out what they think the real inflation rate is. They also shared their real life examples demonstrating that it’s much higher than the rate reported by the government. Full Story
All of which is to say that the fatal concoction of European bank troubles and a weakening euro currency along with depositor/investor mistrust of banks could easily result in another financial contagion in the coming months. And this is just the sort of thing the gold market could use to reverse its fortune. Full Story
Throughout the colorful history of organized crime in the United States, periodic eruptions of inter-gang Mafia violence have dotted the criminal landscape. When turf wars broke out between competing crime families in major cities such as New York and Chicago, the combatants would conduct their warfare from unsavory redoubts such as abandoned warehouses or low-rent hotels and apartments. In such locations, the soldiers would spend their off hours sleeping on rented mattresses until the internecine conflicts had run their course; hence the expression “going to the mattresses.” Full Story
In an earlier post I pulled the old HUI 888 skeleton out of my closet. 888 (AKA the 3 Snowmen) was a target measurement based on how the chart looked in 2010. It can be liberating to take your worst call and publicize it for the world to see. They tell me that you sell a lot of newsletters that way too. All market geniuses should try it once in a while. Full Story
Provided gold and silver can eventually reach new heights who cares what happens in the short-term? Well it does matter because as Keynes once observed in the long-run we are all dead. However, think back to 2008-9.
The gold and silver took a huge pasting in financial markets, along with just about everything else apart from bonds and cash. But the rebound in gold and silver prices came quickly, within six months and then precious metal prices headed very much higher. Full Story
Home prices are rising at the fastest pace since before the real estate crash, according to the Case-Shiller Index. Data for January showed a 10-city composite up 7.3% over the last 12 months and a 20-city index gaining 8.1%. A bullish sign for the housing market? More like a death rattle, we’d say. In our estimation, the collapse in residential real estate prices begun in 2007 is only halfway to a bottom, implying that valuations will eventually fall a further 35% from their 2007 peaks. Full Story
There were a lot of long faces at the PDAC this year. Many of the companies there were pulled off the waiting list when long standing attendee companies decided there was no point having a booth. Others have expressed surprise that few companies seemed to be trying to market financings. This was taken as complacency but it felt more like resignation to me. For the record, resignation is better if you’re a contrarian. Full Story
By: The Gold Report and Peter Krauth - 27 March, 2013
Peter Krauth, resource specialist for Money Map Press, considers the precious metals space an overarching requirement for investors. He sees value in every sector, although he admits it takes a contrarian mindset to see the opportunity among stocks that have been trending down for as long as 18 months. In this Gold Report interview, Krauth discusses the platinum group metals space, where supply-and-demand tensions will move the price of palladium up. Full Story
There is little doubt that the past two weeks have brought about dramatic changes in most circles regarding the way people look at banks, bank deposits, and the monetary situation in general. This year’s ‘Ides of March’ will no doubt go down in history as a pivotal period where once again our world changed forever. Full Story
Cyprus put another nail in the coffin of Democracy and capitalism over the weekend. Having found that the Cyprus people and Parliament wouldn’t stand for the confiscation (THEFT) of depositors’ savings, the EU bureaucrats simply chose an option in which voting doesn’t occur. Full Story
I admit to being surprised by Cyprus. Oh, not the banking crisis or the sovereign debt crisis or the fact that its banks were eight times larger than the country itself or even the fact that the banks were bloated with Greek debt that had been written down. I wrote about all that a long time ago. What surprised me was that all the above was apparently a surprise to European leaders. Full Story
By: CHRIS POWELL, Secretary/Treasurer - 27 March, 2013
In pursuit of democracy, limited and accountable government, and free and transparent markets, GATA is up against central banks, the most powerful institutions on the planet. But they are not so much the problem, as their power is based largely on surreptitiousness and it will crumble when it is exposed. Full Story
Goldman Sachs has lowered its gold price projections and says the metal is headed to $1,200. Credit Suisse and UBS are bearish. Citigroup says the gold bull market is over.So I guess it's time to pack it in, right? Full Story
I would like to repeat the idea that it is best to subordinate yourself to markets at all times. To put your ego aside or at least check it daily to make sure it is not leading you astray. The gold bug ego for example, hardened by a solid decade-plus of relentless bull market is in my opinion too set in its ways on balance. That is because it is an ego that knows it is right. Full Story
By: Harris Kupperman, Adventures In Capitalism - 27 March, 2013
In summary, I don’t think people are giving this Cyprus bailout the full weight that it deserves. In 2007, a few Bear Stearns mortgage backed hedge funds had a bad quarter. My friends and I took notice—no one else seemed to have cared. A few months later, the whole world imploded. Cyprus is the mortgage fund of Europe. Things will now move forward in highly unpredictable ways. The whole timeline of events has now sped up. The only certainty is that the bureaucrats will forever regret their decision in Cyprus. It will cost them their jobs and their currency. The damage cannot be undone. Full Story
Banks reopen in Cyprus tomorrow but only in the technical sense of the word. Thousands of depositors will still not be able to withdraw their money due to a raft of new capital controls to prevent a fresh run on the banks, and if Iceland is a precedent these restrictions could last for many years. Full Story
Why is a song about a severely injured baby and smashed cradle sung to children at night to lull them to sleep? Apparently, because If you sing this popular lullaby often enough the nonsensical violence in the storyline fades and the rhythmically appealing sounds endure. A similar contradiction is apparent when it comes to central banks and quantitative easing (or money printing). Full Story
We will continue to monitor and publish the gold basis to see when world markets begin to shift away from trusting the banking system, when people are willing to forego a yield to avoid having to trust a counterparty. When this happens, we expect gold to move more significantly towards gold backwardation. Full Story
As of yesterday, Cyprus was on its way to becoming a distant concern, pushed off the front page by news about New Jersey’s $338 million Powerball winner and the Supreme Court’s likely endorsement of same-sex marriages. And yet, with euroland’s latest banking crisis out of the way for now, investors acted surprisingly subdued yesterday, pushing the Dow to a modest gain of 113 points. Full Story
Bloomberg reported recently that Russia is now the world's biggest gold buyer, its central bank having added 570 tonnes (18.3 million troy ounces) over the past decade. At $1,650/ounce, that's $30.1 billion worth of gold. Russia isn't alone, of course. Central banks as a group have been net buyers for at least two years now. But the 2012 data trickling out shows that the amount of tonnage being added is breaking records. Full Story
Following up on Dennis’ earlier article on the real inflation rate as described by his readers, Dennis provides actionable ideas for investors to manage their money in a high inflation environment. Full Story
Had those with money tied up in the Cypriot banking system owned gold instead, they might have been able to watch the unfolding crisis relaxing on the beach. So why isn’t gold going through the roof? Is Cyprus too small to matter? Can it happen in the U.S.? Should investors hold gold? Full Story
I’m more net long gold & silver stocks than ever, and company insiders clearly are taking a similar approach, at this point in market price and time! Be aware that insider buying doesn’t necessarily translate into an immediate parabolic move to the upside. Patience continues to be the gold stock investor’s very best friend! Full Story
We have been writing about a bullish outlook for gold, silver and precious metals mining stocks for quite some time now, even though the seemingly bad situation in these markets. This opinion is based on a sound rationale (excellent fundamental situation for precious metals and extremely negative investors’ sentiment often seen at important turnarounds, among others) but we understand that it is still hard to be bullish, looking at the charts that have been full of moves down for the last couple of weeks. Full Story
By: Peter Schiff, CEO of Euro Pacific Capital - 26 March, 2013
I believe that the United States is now following Japan into the mire. After the crash of 2008, we implemented nearly the same set of policies as did Japan in 2001. In the past two years, despite the surging stock market and apparently declining unemployment rate, the size and scope of these efforts have increased. But as is the case in Japan, we can clearly witness how the stimulus has perpetuated stagnation. Full Story
One of the biggest changes by far was the formation of the European single currency – the Euro. Prior to its existence all of today's 17 member countries had their own currencies. Italy, Spain and Greece, to name a few, were often devaluing their currencies. Doing this was one of their solutions to avoid the pain of economic mismanagement. The pain would still come to the general populace, but it looked spread out more evenly amongst its citizens through inflation. Full Story
Global investors had to muster the courage to keep calm as news of Cyprus’ proposed partial theft of all bank deposits took Wall Street by surprise, closed the country’s banks and drove the price of gold higher. The thoughtless idea was intended to capture a portion of the $31 billion in bank assets held by Russians. According to the Financial Times, Cyprus has developed a “well-earned reputation for being a haven for dirty money from Russia.” Full Story
By: The Gold Report and Don Mosher - 25 March, 2013
Don Mosher, a business consultant with B&D Capital in Vancouver, is sounding the alarm. The TSX Venture Exchange, a once-thriving exchange for junior mining companies, is struggling. Its strife is a symptom of the overregulation that is slowly killing a whole sector of the Canadian economy, forcing mining companies and their servicers out of business or to move overseas. But the death knell hasn't sounded yet, Mosher tells The Gold Report. He believes the Venture Exchange and mining in Canada can be saved, and he outlines his plan here. Full Story
Through the centuries – in historic cultures like that of Yap Island who used giant, immovable stone disks for commerce, to today's United States, whose Dollar fiat currency exists primarily in digital form – "money" is able to be exchanged for goods and services because society agrees to accept it (at a certain rate of exchange). But what happens when a society starts doubting the value of its money? Full Story
Though money pumped into the economy acts like a high tide that raises all boats, it can also result in a tidal wave of uncontrolled inflation and out-of-the-box negative real rates of return. Wealth will be won and wealth will be lost in the years ahead as the cash to things scenario unfolds. How savers position themselves will make all the difference as to which side of the wealth scoreboard they find themselves. The defining question comes down to this: “What’s your real rate of return?” Full Story
The monthly figures for the US dollar components of Austrian, or True Money Supply, for February are now in. TMS plus excess reserves amount to the quantity of money that can be drawn down without notice, including time deposits that in practice can be instantly drawn down without notice, only foregoing interest. This is shown in the long-term chart below. Full Story
Therefore, I can’t rule out further silver price stabs to the downside before a dramatic and final resolution to the upside because both stem from the same cause – the manipulation. What I can say is that while those stabs at new price lows may occur, it is mandatory that silver prices will explode at some unknown point. Full Story
It is important not to over intellectualize things. The Cyprus hype is in reality just another manifestation of hazards hard-wired into the global financial system. These hazards are created by policies that rely on credit (and debt) as economic fundamentals. In the short-term, issues like Cyprus’ proposed confiscation of depositors’ funds are just games in the casino. Will the market experience ‘Cyprus relief’ on Monday and rise to new highs or will it drop? Place your bets! Full Story
In this weekend report I would like to show you some Diamond patterns that are not widely followed by most chartists. I think the reason most don’t look for the diamond pattern is because they are somewhat complex in nature vs a triangle or wedge pattern which is very basic. They act like any other consolidation or reversal pattern depending on how many reversal points they have. Full Story
After all-night talks EU foreign ministers have agreed a new bailout package for Cyprus but one that imposes much tougher penalties on large depositors than the first deal. Depositors with more than 100,000 euros at the Cyprus Popular Bank will be wiped out while those holding more than that sum at the Bank of Cyprus will lose 40 per cent. Full Story
Show Highlights: Guest Interviews. Headline news & the Market Weatherman Report. Host answers phone calls and email questions. Guests: Peter Schiff, Euro Pacific James Turk, GoldMoney Full Story
With an astronomic and ever growing debt and derivatives overhang, there are essentially only two choices for the world economy. One is to deal with it head on, which would trigger a deflationary implosion that would create an economic wasteland leading to anarchy, riots and revolution etc. Quite clearly nobody wants that, least of all those in power. So that only leaves one other option, which is to keep things limping along for as long as possible by clamping interest rates at zero to stop debt compounding and to print whatever quantity of money is required to keep the status quo going. Full Story
I can’t tell you how many talking heads I’ve watched in the media recently touting the strong dollar. Sometimes I really wonder whether Homo sapiens are an intelligent life form. Remember this is the same species that created the Tulip mania … and the tech, and real estate bubble. Full Story
We have “Easy Al” Greenspan to thank for a new generation of reporters and economists as blissfully ignorant of the basic principles of economics as he was. Recall that during Greenspan’s tenure as Fed Chairman, he repeatedly referred to inflated property values as “wealth,” thereby encouraging millions of homeowners to spend up a storm with home-equity lucre that had fallen from the sky. We all know how that turned out. And now it’s threatening to happen all over again as 3% mortgages, courtesy of the Fed and of tax laws skewed pathologically toward housing “investment,” lift millions of underwater-property owners at least temporarily from the muck. Full Story
Yesterday the Wall Street Journal published an article entitled “ Web Money Gets Laundering Rule” an article framed in typical central bank newspeak warning of money laundering and growing “concerns” that new forms of cash bought on the Internet might be used to fund illicit activities. Full Story
With the fate of Cyprus under deliberation this weekend it is becoming apparent that the only debate is over what is the least worst option to take. The important thing for global finance is that the principle that bank deposits are safe within the European Union is about to be violated. Full Story
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