By: Eric Sprott & David Baker, Sprott Asset Management - 30 November, 2012
The Basel Committee on Banking Supervision is an exclusive and somewhat mysterious entity that issues banking guidelines for the world’s largest financial institutions. It is part of the Bank of International Settlements (BIS) and is often referred to as the Central Banks’ central bank. Ever since the financial meltdown four years ago, the Basel Committee has been hard at work devising new international regulatory rules designed to minimize the potential for another large-scale financial meltdown. Full Story
By: Doug Casey and Louis James - 30 November, 2012
L: Hola Doug, what's on your mind this week? Doug: I got a letter from a reader in India – Shanmuganathan – asking some very interesting questions regarding my views on karma. Feel like talking philosophy? It will make us feel like we're back in a college dorm room, enveloped in a haze of alcohol and smoke – at least in my case. Full Story
One of the really bad things about a period of crisis, especially when there is a vacuum in terms of real convictions, is that the void tends to be filled with anything and everything. I’m going to devote this week to some of the more absurd comments and theories that have emerged as they pertain to the whole idea of a fiscal cliff, and yet another debt ceiling battle in Washington. However, before we cover the absurdities and get to the ‘fun’ stuff, we need properly arrange the facts. Full Story
WHAT A FUSS over nothing! Gold crept back Friday morning to right where it stood before last Friday's sudden 1.4% jump, trading at $1730 the ounce. That meant it also unwound half of this week's sharp 2.0% plunge from Wednesday. It also puts the gold price in US Dollars right back where it stood a month ago. Which is also where gold stood 12 months ago, at the start of December last year. Full Story
By: Richard (Rick) Mills, Ahead of the herd - 30 November, 2012
A complete breakdown of costs, an all-in cost figure, courtesy of CIBC, shows cash operating costs pegged at $700 an ounce, sustaining capital, construction capital, discovery costs and overhead at $600. Add in $200 for taxes and you get US$1500.00 as the replacement cost for an ounce of gold. Using the all-in figure provides a more accurate and definitive picture of actual mining cost and profit. Also, according to CIBC World Markets, the sustainable number gold miners need is $1,700/oz. As I write this gold is trading at $1726.00/oz. Full Story
By: Scott Wright, Zeal Intelligence - 30 November, 2012
In order to satiate the world’s growing hunger for silver, a lot of pressure has been placed on its supply chain. And with total annual supply recently exceeding 31k metric tons (1.0b ounces) for the first time ever, the suppliers of this white metal have so far made a valiant effort to meet demand. Full Story
By: The Gold Report, Ralph Aldis and Brian Hicks - 30 November, 2012
Smart companies are beginning to ignore analysts' insistence that production growth is always good, and to focus instead on growing their margins by lowering capital expenses. This is good news to U.S. Global Investors Inc.'s Brian Hicks, co-manager of the Global Resources Fund, and Ralph Aldis, senior mining analyst and portfolio manager of the Gold and Precious Metals Fund and World Precious Minerals Fund. Learn what kinds of companies attract the interest of these active managers in this Gold Report interview. Full Story
Summing up, the long-term Euro Index chart and the medium-term USD Index chart suggest that lower values might be more probable than not for the dollar in the medium term. Along with a bullish picture from the gold in Japanese yen chart, the implications here are medium-term bullish for precious metals. Full Story
By: Doug Casey and Louis James - 30 November, 2012
Doug, after conversations like the one we had last week, we often get letters from angry readers who accuse you of hating America, disloyalty, and perhaps even treason. These people don't know or understand what I do about you – that you love the idea that was America. It's the United State it has become for which you have nothing but contempt. Perhaps we should try to explain this to them? Full Story
“Too little, too late” could well describe the current plight of the 'smart money' silver investor, since many seem to be arriving late to the party when the market has not even yet entered the final phase for investment demand in either silver or gold. Of course, some investment money has trickled in to the precious metals, but to the average investor, prices are still correcting and the market’s fundamentals remain very much misunderstood. Full Story
While preparing for this week's Goldseek.com Radio, my attention was drawn to a little known economic theory proposed by a British economist 90 years ago. In 1923 Alfred Herbert Gibson published a paper regarding the negative correlation between interest rates and inflation in Banker's Magazine (White, 2011). John Maynard Keynes later coined the term Gibson’s Paradox in 1930 (Keynes, 1930). Full Story
By: Richard Daughty, The Mogambo Guru - 30 November, 2012
I was taking a much-needed break from keeping an eye on my weird neighbors, whom I suspiciously think are some of the idiots who elected the commie knot-head Obama instead of electing the religious knot-head Romney. Of course, my heart was with Ron Paul the whole time, who would have been a good president -- perhaps even a terrific president! -- forty years ago when there was still enough time to stop the suicidally-stupid deficit-spending, money-printing, entitlement-creating, government-centric, "impossibly huge government taking care of everyone," typical Democrat horse-crap nonsense. Full Story
Refusal to confront, or worse, Denial of, the consequences of inevitable coming Crises in an understandable response, but neither constructive nor profit-generating. Indeed, Denial virtually guarantees the Pain without the Profit. A much more constructive response is to Profit from those Crises which one cannot ameliorate. Given the Crises which are surely coming, profit Opportunities abound. And thus we shall identify a few. Full Story
This is just a friendly reminder about how bloody important it is for the HUI-Gold Ratio (HGR) leading indicator (to the precious metals sector) to maintain its higher lows status. Yesterday the goons apparently attacked ‘paper gold’ (according to sources who stand on guard for this stuff) after the HGR had become weak. A pleasant thing happened however, as the HGR did not buy the take down in nominal gold. 2 Hour chart above. Full Story
Meanwhile, as Greece continues to distract the markets, France, the other primary prop for the EU besides Germany, is now experiencing an economic contraction on par with that of 2008-2009. Indeed, France’s September’s auto sales numbers were worse than those of September 2008 (the month Lehman collapsed). The country’s PMI reading is back to April 2009 levels. Even the French Central Bank, which would hold off as long as possible before unveiling bad news, has announced the country will re-enter recession before year-end. Full Story
Counter-party risk could be devastating in the next financial crisis. If “B” owes you money and files for bankruptcy because “A” does not pay “B”, then you have counter-party risk that could be very costly. The value of gold and silver is NOT dependent upon a government or corporation paying a debt or fulfilling their promises. Gold and silver have no counter-party risk and will survive the next crisis. Full Story
Recently, the Erste Group published a 120 page report covering precious metals. The report contains an absolute treasure of analysis, figures and charts concerning gold and the gold stocks. I have selected a few of the charts which help us explain the current status of the gold stocks. Essentially, there is a huge divergence between financial performance and valuations. Ultimately, the performance of the shares over the coming months will answer the question as to the resolution of that divergence. Full Story
Recently at a local social event, I met a locksmith, and we started talking shop on the topic of securing assets with locks and the what’s what in the safe world. After a brief but very interesting conversation, I felt inspired to do a little research about the wide world of safes. What I learned was both fun and fascinating. Full Story
By: Rick Ackerman, Rick's Picks - 29 November, 2012
With the U.S. headed into deepest recession under our socialist president’s second term, we should view any significant stock-market rally as a golden opportunity to get short. Under the circumstances, yesterday’s 107-point effusion in the Dow Industrials was a mighty tempting hors d’oeuvres. Be that as it may, and as always, we’ll let purely technical indicators tell us exactly when to initiate the trade. Full Story
By: Jeff Clark, Casey Research - 28 November, 2012
Have you ever wondered what the typical Chinese gold investor thinks about our Western ideas of gold? We read month after month about demand hitting record after record in their country – how do they view our buying habits? Since 2007, China's demand for gold has risen 27% per year. Its share of global demand doubled in the same time frame, from 10% to 21%. And this occurred while prices were rising. Full Story
By: The Gold Report and Paul van Eeden - 28 November, 2012
Many goldbugs like gold as a hedge against Federal Reserve policies and high inflation. Paul van Eeden, president of Cranberry Capital, says he does not fear high inflation due to Fed policies. Van Eeden is a different kind of goldbug and in this interview with The Gold Report, he explains how his proprietary monetary measure, "The Actual Money Supply," is the reason why. Full Story
If we allow logic to be our guide in the marketplace at this point in time, it would behoove ourselves to consider the most hated sectors of the marketplace, those in which the former cheerleaders have packed up their belongings and gone home. I contest the gold and silver miners might constitute one of those areas. Full Story
In 2011, there were 1040.6 million troy oz of silver produced. Of this, 84% was used by industry and the remaining was used as an investment. Interestingly, traditional uses of silver only account for about a third of silver fabrication. These include jewelry, coins, medals, and silverware. Most silver is actually consumed in over 10,000 modern industrial applications. The vast majority of silver supply comes from recycling, net government sales, and mine production. In terms of mine production, the majority of silver comes as a by-product of mining other metals. In addition, about half of all mined silver comes from Latin America. Full Story
The banks won't like it if Carney puts a harness on them and tells them it's for their own good. Neither will businesses that are denied loans, meaning politicians won't like it either. Many ordinary people will be deeply suspicious of his status as an ex-Goldman Sachs man. How long before the Canadian is made a scapegoat? Credibility is key to central banking, and Carney will have his work cut out to maintain his. There again, if everyone does end up hating him, that might suggest he's doing something right. Full Story
Back in 2009, the Royal Canadian Mint [RCM] claimed that it had lost $15 million worth of gold bullion. What ensued from the time the loss was made “public” can best be described as a ‘fumbling exercise’ where – initially - different accounts were put forward as to the reason for the loss. Finally, public catcalls regarding this loss at one of the world’s most renowned Mints led to an official investigation by the Royal Canadian Mounted Police [RCMP]. Full Story
Because of Japan’s massive public debt burden, pundits have called for the demise of the Japanese yen for years. Are the yen’s fortunes finally changing? Our analysis shows that the days of the yen being perceived as a safe haven may soon be over. Let us elaborate. Full Story
By: Chris Powell, Secretary/Treasurer, GATA - 28 November, 2012
Grant Williams, editor of the "Things That Make You Go Hmmm" letter, suggests in his letter published today that he follows GATA's work closely and gives it some credence, insofar as he notes in detail the growing demands for repatriation of central bank gold reserves held in vaults other than the owner's own. Full Story
What we are seeing now, with short term fluctuations in the price of gold is just market noise and short term trading opportunities created by the gold market high frequency traders and bullion banks. This will come to pass as the price of gold gets smoothed out and then slowly advances higher with a two steps forward one step back dance along a rising trend. All this talk about gold by mainstream media is just market noise to try and explain very short term movements in price. They have very little understanding of gold and the role it will play in the future as a store of value. Full Story
By: Rick Ackerman, Rick's Picks - 28 November, 2012
Let us say a prayer for Best Buy as the company attempts a daring overhaul. There is surprisingly good news on this front, and we’ll get to it in a moment. Suffice it to say, the stakes are extremely high, since failure could mean that ten years from now, quite a few of the things Americans buy other than food will necessarily come from Walmart, Costco and Amazon. For USA shoppers used to limitless variety, this would be Bedford Falls without George Bailey. Full Story
Several immutable Gold Rules appear to be self-evident and powerfully manifested in the modern world of banker corruption, financial market intervention, currency debasement, phony accounting, and economic deterioration, all amidst powerful incessant media propaganda, against a backdrop of endless war. The global fascism movement has taken deepest root in what during the 1960 through 1980 decade was the capitalism regions steeped in democracy. Since the Lehman Brother scuttle and the Fannie Mae adoption and the AIG black hole admission, the financial crisis that began with the housing bubble and subprime mortgage bust has turned virulent. The global financial crisis is better described as a global monetary war to defend the toxic USDollar, whose sunset can be seen. Full Story
By: Jeff Clark, Casey Research - 27 November, 2012
After a year or more of depressed prices, gold and silver stocks reversed with a vengeance. GDX (the ETF proxy for the Gold Miners Index) was up in just two months (August and September). Those who followed our lead and bought or averaged down this summer have profited handsomely. It's been a fun ride, and I'm convinced we'll see many more surges like this before it's all over. Full Story
From one perspective, the daily silver chart has become technically overbought. A number of key indicators and oscillators have risen to levels that are worrisome to some analysts. Full Story
The silver standard did not die a natural death. It was deliberately killed. A proper search for the assassins was never carried out. There was never a post-mortem. In this paper we focus on the conspiracy as it might have unfolded between the two dates: April 9, 1865 (the day General Lee of the Confederacy surrendered at Appomattox to General Grant of the Union marking the end of the War Between the States) and January 1, 1879 (Resumption Day, when payment of the victorious Union’s currency, the greenback was resumed in gold specie ̶ but not in silver). Full Story
It can not be overstated the importance SOUND MONEY plays in protecting the public's Constitutional Rights, the control of relentless government spending and the limitation of political 'reach' and growth of socialist programs. This fact was well understood even before the founding of the US Federal Reserve. Full Story
We have always put emphasis on the need to diversify while putting together your portfolio. Of various kinds of diversification, one is particularly important at the very beginning, when you decide to commit yourself to the precious metals market. This is the ability to divide your capital into three separate parts, each managed in a different way, and to stick with this structure even when the market is getting hot. Full Story
By: John Mauldin, Millennium Wave Advisors - 27 November, 2012
In today’s economic environment, we often complain about volatility and uncertainty, but there is one thing I think we can be fairly certain of: taxes are going up. I constantly try to impress upon my kids, most of whom are now adults, that ideas and actions have consequences. In today’s letter we will look at some of the consequences of an increase in taxes. Please note that this is different from arguing whether taxes should rise or fall. For all intents and purposes that debate is over. As investors, our job is to deal with reality. We must play the hand we are dealt. Taxation is a complex issue, but let’s see if a few word pictures can help us understand what we face. Full Story
By: Chris Powell, Secretary/Treasurer, GATA - 27 November, 2012
Having gotten quite curious -- curious enough even to bring lawsuits -- GATA has obtained over the years grudging admissions from the Federal Reserve, Bank of England, Bank for International Settlements, and German Bundesbank that they are secretly active in the gold market and that they will be damned if they let the world know exactly how and why they are active. If Williams, Maund, and others who contend that the gold market is completely free of surreptitious controls are so confident in their assertions because they have been made privvy to the great secrets of central banking, it would be awful nice of them to let us know. Full Story
GLD, the New York Stock Exchange-listed gold exchange-traded fund, appears to have quietly removed key investor protection with the apparent agreement of United Kingdom regulators. By imputation, the same change in regulation applies to the silver ETF SLV, though less obviously so. A revision to GLD's prospectus appears to have absolved its custodian and trustee from having to comply fully with the custody rules of the U.K. Financial Services Authority, a change that must have been undertaken with the agreement of the FSA and by implication the Bank of England, which oversees the London bullion market and is party to the London Code for Non-investment Products (the NIPS Code). Full Story
To uncover the hidden truth about the Fiscal Cliff we're going to explore seven layers of the trillion dollar a year sleight of hand which hides the real US economy, and is the actual source of the deficits. For the first time, we'll examine the hidden "math trap" that the private sector has fallen into when it comes to supporting the public sector, and the extraordinary implications for all of us, particularly long-term stock investors. Based on the math trap, we will show the staggering 40% increase in tax rates that would be needed to return the budget to 2007 levels, if this is to be done without reducing government spending. Full Story
A friend and long-time subscriber who intends to write a book about the silver manipulation asked if I could provide him with a bit of history. To my mind, the silver manipulation dates back to early 1983, when the commercial traders grew confident that they could sell any quantity of paper short contracts to the technical fund buyers on the COMEX. By that time the commercials learned that technical fund buyers would never take physical delivery and could be counted on to buy or sell based upon price signals that the commercials could easily influence and control. In essence, the game has remained remarkably similar ever since. Full Story
Since September, the Currency Wars have escalated. It isn't just because of the seminal monetary events of the Federal Reserve's QE III "unlimited" and the ECB's OMT "Uncapped". It is highly likely, more about the fact that China announced its eleventh agreement that effectively bypasses using the US dollar with China's strategic trading partners. The latest agreement with Russia places trading oil, in non-US dollars, into the spotlight. The infamous petrodollar has had its destructive profile raised. Full Story
By: The Gold Report, Brian Ostroff and Adrian Day - 26 November, 2012
Buy and hold or go for the tenbagger? Two successful money managers, Adrian Day and Brian Ostroff, sat down with The Gold Report at the Hard Assets Conference to share their forecasts for 2013. Although the two have very different investing approaches, they came to some of the same conclusions about the future of gold. Full Story
It was a big day for the Precious Metals sector on Friday, for the dollar broke down hard from its recent uptrend, and at the same time gold broke out upside from its Head-and-Shoulders base pattern. Silver anticipated this – it broke out from its base pattern back on Tuesday. These developments have grave implications for the dollar, but at the same time are believed to mark the start of major uptrends in gold and silver. Full Story
Well how was that for the start of a new intermediate cycle? While many analysts were calling for continued losses or even a market crash I repeatedly warned traders that an intermediate degree bottom was coming and that markets routinely rally violently out of those bottoms, often generating 5-8% gains in the first 12 to 15 days. This particular intermediate bottom has already gained 5% in just the first five days. Full Story
By: Rick Ackerman, Rick's Picks - 26 November, 2012
Apple shares recovered some of their old mojo with last week’s 10% rally, lending buoyancy to a market that was already pumped full of helium for Wall Street’s traditional observance of the Thanksgiving holiday. Nearly all of the stock’s gains came on a gap-up opening last Monday, but it is important to note that AAPL held onto those gains, consolidating over several days for yet another presumptive burst in the week ahead. Full Story
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