FRACTIONAL Reserve Banking is not responsible for the bad practice of 'creating money', writes Paul Tustain, founder and CEO of BullionVault. It is a speed limit on money creation, put in place by a Central Bank to stop banks doing too much of what comes naturally to them. Full Story
The one consolation for insanity is that it usually tends to come full circle and deposit an appropriate amount of egg on the face(s) of the most outspoken proponents. It is no different when the discussion of our broken monetary system comes up. Although I must say, the latest stunt is bold and daring and might very well threaten the one thing that underpins the global monetary system itself, and that is confidence, mixed with a good deal of ambivalence. Full Story
For several years, Notable Independent Commentators, including Deepcaster, have warned that the Elite Central Banks’ Orgy of Fiat Currency Printing, a la QE etc, would result in Price Inflation. So it is no surprise to us that The Bond King, Bill Gross of PIMCO, with about $2 Trillion under Management, would finally warn, in his January, 2013 letter to Investors, of Impending Price Inflation in Key Commodities. Full Story
By: The Gold Report and Rick Winters - 11 January, 2013
It is difficult for retail investors to sift the wheat from the chaff in the junior miner sector. In this interview with The Gold Report, Rick Winters reveals how RMB Resources, a resource merchant bank, figures out what projects to invest in and those to pass over. Full Story
Policymakers today draw what they consider obvious conclusions from the Good War. The New Deal had been chipping away at unemployment and the economy was recovering, but then Japan’s surprise attack provided the political means for allowing the government to shift gears. Over the next four years the American economy got a heavy dose of Keynesianism, and the results prove the Keynesian case: GDP soared and unemployment all but disappeared. Full Story
By: Adam Hamilton, Zeal Intelligence - 11 January, 2013
Silver bearishness has naturally mushroomed following this metal’s rough December. A growing chorus is declaring silver’s secular bull finished, implying it must have peaked after silver’s dazzling April 2011 surge. But secular bulls climax in popular speculative manias, which dwarf the silver action of a couple springs ago. Looking at silver in real inflation-adjusted terms drives home the point its bull is far from over. Full Story
"So this is what it looks like when a society is starting to collapse," the man standing behind the counter at the hardware store said matter-of-factly. The remark had been directed at no one in particular, but generally at anyone standing nearby. As I was among that audience, I looked at him inquisitively, eliciting in return a look indicating that his observation should be intuitively obvious to even the casual observer. Full Story
By: Chris Powell, Secretary/Treasurer, GATA - 11 January, 2013
Jim Sinclair tonight calls attention to a petition started at the White House Internet site calling upon the U.S. government to audit the U.S. gold reserve -- and to account for any surreptitious ownership claims to the gold. Full Story
We at Sunshine Profits are deeply convinced that the bullish fundamentals for the precious metals market are still in place, and are not easily put off by recent corrections. But how to tell which asset will outperform the others when the market finally starts to rally strongly? You might have noticed that we quite often use various ratios on our charts – such a technique is called Relative Strength Analysis and helps an analyst tell which of the two assets (or group of assets) is likely to do better in the future. Full Story
This analysis is excerpted from part of yesterday’s subscriber update in which we presented our outlook for Gold, Silver and GDX/HUI. When making forecasts and writing outlooks, analysts must look at a multitude of things. We usually begin by examining the macro landscape via intermarket analysis. How are the various markets trending? Which are lagging? Where are the divergences? As we begin 2013, there has been an important shift in regards to precious metals that few analysts have picked up on. The rest of our analysis filters down from this discovery. Full Story
Inflationary cycles tend to result in notable bullish moves in the prices of precious metals like silver, and such times have always created powerful political factions. Furthermore, massive credit expansion and an extreme use of money printing presses provide incredible wealth-accumulating opportunities for sectors of the economy. Full Story
GoldSeek.com TV presents an exclusive interview with STANLIB (www.stanlib.com) Asset Management's resource analyst Kobus Nell. Mr. Nell discusses the fast-moving outlook for gold and platinum mining as well as the diamond industry in southern Africa with (Jonathan Roth) www.GoldSeek.com. Full Story
Having moved to the sidelines due to the uncertainty of the US Presidential election and the Fiscal Cliff negotiations (as well as the holidays), investors are beginning to creep back in the marketplace. And they’re in for a surprise. Full Story
By: Ira Epstein, The Linn Group - 10 January, 2013
Gold continues to languish as we enter the new year, which is not surprising with all the first quarter optimism generated. But the technical side will focus on last years’ lows holding, eventually promoting a test of 4th quarter highs, and then $1800. Whether we can take out the monthly highs on gold or not this year is the question. Ultimately, we think that $1800 comes out, propelling this market into the $2300-2500 area, but it may take until next year to get the markets going to that degree. In any event, accumulating on weakness still appears to be a solid long term technical approach. Full Story
How much gold is enough? How much should you allocate to dividend-paying stocks? How much should you hold in cash? How can you sort through the vast number of opportunities out there? Full Story
By: Peter Schiff, CEO of Euro Pacific Capital - 10 January, 2013
Economists who hold the popular view that expanding the money supply will provide the best medicine for our ailing economy dismiss the inflationary concerns of monetary hawks, like me, by pointing to the supposedly low inflation that has occurred during the current period of rampant Fed activism. In a recent blog post aimed specifically at me, Paul Krugman noted that the sub 2.5% increases in the Consumer Price Index (CPI) over the past few years are all that is needed to prove me wrong. Full Story
Today in 2013, the focus of the mechanics, i.e. central bankers, is still on the engine which despite trillions of dollars of credit is still in danger of completely seizing-up; and, although the bankers’ solution of even more credit (e.g. QE1, QE2, QE3, etc.) has failed to restore the automobile’s momentum, the failure to do so hasn’t stopped the mechanics’ attempts to add yet more credit to the already flooded engine. Full Story
William H. Gross (manages the largest bond fund in the world – PIMCO) has much to say about Quantitative Easing and money printing. His latest article, Money For Nothin’ Writing Checks For Free, discusses Quantitative Easing (printing money) and the inevitable consequences. He notes that central banks have printed over six trillion dollars in the last few years. This begs the question, “Why not print even more?” Full Story
Mr. Downey was appointed President and Chief Executive Officer of Elgin Mining Inc. in July 2011 bringing with him over 25 years of international experience in the resource industry. Prior to joining Elgin Mining Inc. Mr. Downey held the position of President, Chief Executive Officer and Director of Aura Minerals Inc. Mr. Downey was President, Chief Executive Officer and Director of Viceroy Exploration Ltd. before its acquisition by Yamana Gold Inc. in 2006 for $600 million. Full Story
When water turns to ice, or vapor turns to water, we have what is referred to as a Phase Equilibria change. It can be slow or it can be instantaneous. Whichever occurs, a new and completely different state of reality then exists. The markets are about to transition through such a Phase Equilibria. We have reached the End of the Beginning and a New Beginning is Near! Unfortunately the new beginning is the Beginning of the End of the Secular Bear Market Counter Rally. It isn't imminent, but it is near! Full Story
Every nation-state has a body of laws woven into the fabric of society. As Peruvian economist Hernando de Soto has commented on extensively, the stronger the rule of law, the stronger the economy. Full Story
Recently I was asked a question that I suspect has been on many investors’ minds. Here’s the question: “Is it possible that the bond market will be the market to tumble into 2014, and as it does, the general market decline is mitigated by the rotation of money out of bonds and into stocks?” Full Story
OBSERVERS of Fractional Reserve Banking have noticed that your deposit into a bank can cause the bank to offer new loans well above and beyond the size of your deposit. Those watchers often object on the grounds that this is new money which shouldn't have been created. But every one of us can easily create spending power in the same way. Full Story
GoldSeek.com will hosting a special 30 minute online event with Rick Ackerman of Rick’s Picks this coming Wednesday, January 9th starting at Noon Eastern, 9 am PST. GoldSeek.com readers will be able to attend this free online session with Rick Ackerman covering Gold Stocks in 2013, a technical look at the charts. Full Story
By: The Gold Report and Chris Mancini - 9 January, 2013
There is a war raging behind the scenes among the world's currencies. Chris Mancini, an analyst with the $400 million Gabelli Gold Fund, believes that gold will emerge the victor. In this interview with The Gold Report, Mancini makes his case for why gold is a currency and not just a relic and why his fund doesn't own bullion. Full Story
The last four or five years have been a nightmare for many investors, especially those of us investors in the natural resource stocks. Even though gold and silver rallied to new highs in 2011 most shares did not follow and have in fact greatly lagged in performance. Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 8 January, 2013
Readers may not agree with our conclusions on the confiscation of gold, but we emphasis this reality. If we are wrong you will still own your gold. If we are right and you have not taken the right steps to guard against confiscation and the personal dangers to you individually, you will lose your gold if not suffer the penalties the “Gold Confiscation Order” brings with it. Full Story
By: The Metals Report and Erica Rannestad - 8 January, 2013
Violent strikes and supply disruptions in South Africa put platinum in the headlines last year, and the metal spent 2012 selling at a discount to gold. Is a platinum discount the new normal? How will the market shift in the labor strike fallout? And will mining asteroids transform supply fundamentals? CPM Group Platinum Analyst Erica Rannestad met with The Metals Report to share her price and cost forecasts for 2013 and discuss the supply and demand trends to watch this year. Full Story
Gold functions like an alarm clock. A rising gold price usually indicates that financial uncertainty and volatility are the dominant market themes. Inflation that begins to get out of control can cause the price of gold to rise almost vertically, but during the transition period from deflation to inflation, bank stocks and financial companies tend to be the best leading indicators. Full Story
Sidetracked by the discussion over the “fiscal cliff” and possibly a New Year’s hangover, it’s time to face 2013 in earnest. Is the yen doomed? Will the euro shine? What about Asian and emerging market currencies? Will gold continue its ascent? And the greenback, will it be in the red? Full Story
The U.S. dollar showed its first sign of life in nearly a month last week when it rallied above some distinctive price peaks on the daily chart. The trend bears watching, since any significant upside progress from here would put pressure on gold and silver quotes. How likely is this to occur? The chart below leaves the matter unsettled, at least for now. Full Story
Japanese pension funds and gold-backed exchange traded products are going to more than double their gold holdings over the next two years to $1.1 billion, buying some 27 tons of gold at current prices, according to veteran World Gold Council representative Itsuo Toshima who is quoted today on Bloomberg. Full Story
Hulbert’s latest data available to Sentimetrader shows a -6.3% for gold newsletter writers. Anecdotally, a friend advises that Lance Lewis has stated that Hulbert’s HGNSI was actually down to -12.5% on January 3. The Sentimentrader data is delayed. This would mean that gold newsletter sentiment is as bad as it was during the summer when prices were 100 bucks lower. That is a bullish divergence, contrarian-wise. Full Story
By: The Gold Report and Mark Lackey - 8 January, 2013
Gold has been produced in Africa for thousands of years in places like Ghana and neighboring countries whose names have changed over the centuries. One thing that has not changed is that there's still a huge amount of gold to be found and mined in West Africa, as Mark Lackey explains in this interview with The Gold Report. That's what he likes about the area. Full Story
On Friday we wrote that the precious metals sector rallied strongly last week on the “fiscal cliff” issue “solution” and then experienced a significant correction on Thursday. The general stock market rallied as well but without such a dramatic plunge afterwards, which is clearly a bullish sign. Today, we’ll discuss the mining stocks sector and try to figure out whether this bullish outlook for stocks translates in any way into a bullish (technical) outlook for them as well. But before we move into this sector we’ll have a look at the general stock market, using S&P 500 Index as a proxy. Full Story
RIGHT AT the top of the banking pyramid you have an institution called the Bank for International Settlements (BIS), writes Paul Tustain – founder and director of BullionVault. It acts like a central bank for central banks. Germany can draw down currency from the Bank of England and deposit it into the BIS. Again, it just writes the cheque drawn on the importer's central bank, and pays it into its BIS account. You could say Germany has placed its 'Foreign Currency Reserve' at the BIS. Full Story
Call it the “shot heard round the world.” Its aim was ostensibly to reduce the U.S. budget deficit, its effect was tantamount to a bullet in the chest of the consumer recovery. Last week the U.S. working class was hit with a significant payroll tax increase, a blow which couldn’t have occurred at a worse time. Just as the economic recovery was starting to gain some traction, our elected officials took the proverbial wind out of its sails by raising taxes. A tax increase is the last thing needed when the economic undercurrents are deflationary, as they are now. This measure will eventually beget even more deflation as consumers reign in spending once they see their paychecks diminished courtesy of the U.S. Congress. Full Story
Our financial system, as it currently operates, is unsustainable. Unproductive debt cannot exponentially increase forever. I assume this is obvious to almost everyone. Jim Sinclair says, “The financial system is simply FUBAR. It is that simple. The reason to own all things gold is that simple.” FUBAR has several meanings, but my interpretation of FUBAR is: “Fiscally Unbalanced Beyond Any Reconciliation.” Full Story
Dow 20,000? We seriously doubt it, although our good friend James Tollard explained why he thought it could happen in a guest commentary here last week. What were his reasons? Okay, you’re having a little trouble remembering why he was so bullish. So are we. His arguments didn’t quite stick to our ribs. You may recall there was a lumber chart that accompanied the essay. What was that all about? Full Story
Show Highlights: Guest Interviews. Headline news & the Market Weatherman Report. Host answers phone calls and email questions. Guests: Patrick Downey ,CEO Elgin Mining Inc. Peter Schiff, Euro Pacific Full Story
Just who does the Fed think it is kidding, making noises about choking off QE and Treasury purchases? Any serious attempt to do this at the eleventh hour would crash both the bond and stockmarkets and send interest rates skyrocketing, and they know it – it would be like the Captain of the Titanic grabbing a bullhorn and announcing “You see that Iceberg over there? – we’re going to head straight at it” – actually he might as well have, for all the difference it made. Full Story
2012 wasn't a fun year for most Gold bulls. Seeing the S&P 500 outperform Gold and seeing Gold stocks get decimated through the 1st half of the year was enough to create suicidal sentiment that is now only marginally improved after another prolonged correction in the precious metals (PM) sector to end the year. But as the many calls for an end of the PM bull market by several of the same people who have been wrong / missed out the whole way up get louder, the risk in the PM sector gets lower and lower. Full Story
The New Year should see some major changes in how gold and silver are regarded in the West, if it becomes obvious that confidence in government-issued money as a medium of exchange might be misplaced. This concern is for the moment essentially limited to economists of the Austrian School. Full Story
It was a stunning start to 2013 with the fiscal cliff issue being resolved at the last possible moment as expected. Markets rallied hard and fast after gapping up leaving me on the sidelines not wanting to chase. Now we are seeing those awesome gains consolidate and we will see some great setups for higher prices come in the next few days. Full Story
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