Saturday, August 31, 2013

Run on Gold to Acceralte

“J.P. Morgan keeps getting called for delivery of registered gold. Their inventories are way, way down. So we have seen a precipitous drop in registered COMEX gold, which is the category of gold that would be called away for a futures contract delivery request.
There is more gold in the COMEX system -- we have 3 tons of gold but it’s not ‘registered’ gold. So this gold is not available for delivery. But if you look at that registered category of COMEX gold warehouse stocks, it really is perilously low at this point.

So we know we have a physically tight gold market, and this has typically set the stage for higher gold prices. Investors have to take a step back and ask, ‘Why would people want to have physical gold? Why would they demand delivery?’ The reality is this is a matter of trust, or in this case a lack of trust (regarding the Western fractional reserve gold system).

So the more suspicion there is of these intermediaries, the COMEX, the LBMA, banks with structured notes, this lack of trust on the part of entities with paper claims means that they want to get their hands on their physical gold and get it out of the system. In other words, trust is breaking down in the system.

And because you have this huge pyramid of credit, which is based on a very small amount of physical gold, this run on physical gold can spread very quickly. In a way it can be like a run on the gold bank. We have seen a very slow version of this throughout the summer, but if that should pick up steam for any reason, these are the exact mechanics of why gold could spike to the upside far more than anyone is betting on right now.”

- John Hathaway via King World News, read the full interview here:

Thursday, August 29, 2013

Gold Flowing East

This gold has gone out of the system and it is not coming back to the West. This will have enormous ramifications for the gold price both in the short-term and over the long-term. The tremendous amount of physical gold and silver has now been captured by other players, and these are not entities who are the ‘fast money‘ crowd.

These are Eastern central banks and people who are trying to preserve their wealth because they know what is coming. The Chinese have been dumping large amounts of dollar holdings, and in the case of the Indian people, they are desperately trying to buy gold and silver in order to protect their savings against a falling rupee.

- Keith Barron via King World News, read the full interview here:

Wednesday, August 21, 2013

Gold Now Beginning Its Long Awaited Ascent

Has gold broken out it's recent trading range? Have we begin a new bull market?

Saturday, August 17, 2013

Indian Increases Capital Controls, Bans Gold Imports

Not satisfied with raising import tariffs on gold and putting in place jarring new FX flow capital controls, it seems the war on a weakening Rupee continues. We previously discussed the unintended consequence of such actions - including the rise of the gold smuggler - but the latest total ban on the importation of gold coins and medallions is edging India closer and closer to the Argentinian edge of Cristina Fernandez totalitarianism (after the initial ban on sales in June). In an effort to "moderate outflows" of Rupee, the Indian central bank slashed the amount of money families can send out of the country per year to $75k (from $200k) and limited overseas investment to 100% of net worth (from 400%). "We will leave no stone unturned" to control the current account deficit and stabilize the rupee, the finance minister warned; which of course removes any hope that monetary easing to revive growth will occur anytime soon.

- Source, Zero Hedge, read the full article here:

Thursday, August 15, 2013

Dollar Plunges, Precious Metals Surge

Equity markets saw their highest volume in 7 weeks as the major indices plunged the most since June 20th, falling back to their lowest level in 5 weeks. 380 new 52-week lows dominated the meager 18 new 52-week highs. The early snap higher in Treasury yields (following the claims data) sparked the 'disorderly rotation' out of stocks that we have warned of and as stocks saw no significant BTFD mentality so Treasuries went modestly bid (ending the day only 5bps higher in yield) with the belly (7Y) 8bps off its intraday high yields. The USD was smashed lower as JPY and EUR strength dominated flow (and carry-unwind) which further helped push the story of the day - gold and silver - up large on the day (+2.1% and 5.6% respectively on the day). VIX surged to 14.5%, credit underperformed, as the Dow broke its 50DMA (15,280) closing near its 100DMA (15,097). Nikkei futures are -530 From yesterday's highs

Monday, August 12, 2013

Catherine Austin Fitts - The Old System is Dying

Catherine Austin Fitts of says, "I think bail-ins are coming . . . the big question is not will we be able to get out insured deposits. I think the big question is how violent will things get?" Fitts biggest worry is not financial collapse. She says, "I don't think the people who run the U.S. military or run the United States government are going to say we're happy to collapse rather than go to war. They are going to go to war. They're going to shake somebody down." Fitts goes on to add, "I think gold is the greatest form of insurance you can have during this transition period." Join Greg Hunter as he goes One-on-One with money manager Catherine Austin Fitts.

- Source, USA Watchdog:

Saturday, August 10, 2013

Jim Willie - Out of Control Chaos Coming with Shortages of Gold, Silver, Food and Gasoline

Publisher of "The Hat Trick Letter," Dr. Jim Willie, predicts, "In the United States, we are going to have shortages across the board, and that includes gold and silver. Just think food and gasoline. That's when the riots are going to start. You are going to see out of control chaos and the government stepping in to restore order. . . . Shortages and price inflation are going to drive people out of their minds." Join Greg Hunter for an in-depth One-on-One interview with Dr. Jim Willie.

- Source, USA Watchdog:

Thursday, August 8, 2013

Largest Silver Producers Face Losses at Current Prices

The largest silver mining company in the world just came out with their first half financial results and the figures were dismal. Fresnillo’s first half profits declined a staggering 60% compared to the same period last year. However, at current metal prices the largest silver producer in the world could be experiencing losses the second half of the year...

- Source, SRS Rocco, read the full report here:

Friday, August 2, 2013

Chris Martenson - Bankers Own the World

In every era, there are certain people and institutions that are held in the highest public regard as they embody the prevailing values of society. Not that long ago, Albert Einstein was a major public figure and was widely revered. Can you name a scientist that commands a similar presence today?

Today, some of the most celebrated individuals and institutions are ensconced within the financial industry; in banks, hedge funds, and private equity firms. Which is odd because none of these firms or individuals actuallymake anything, which society might point to as additive to our living standards. Instead, these financial magicians harvest value from the rest of society that has to work hard to produce real things of real value.

While the work they do is quite sophisticated and takes a lot of skill, very few of these firms direct capital to new efforts, new products, and new innovations. Instead they either trade in the secondary markets for equities, bonds, derivatives, and the like, which perform the 'service' of moving paper from one location to another while generating 'profits.' Or, in the case of banks, they create money out of thin air and lend it out – at interest of course.

"Banking was conceived in iniquity and was born in sin. The bankers own the earth. Take it away from them, but leave them the power to create money, and with the flick of the pen they will create enough deposits to buy it back again. However, take away from them the power to create money, and all the great fortunes like mine will disappear, and they ought to disappear, for this would be a happier and better world to live in. But, if you wish to remain the slaves of bankers and pay the cost of your own slavery, let them continue to create money."

~ Josiah Stamp – Bank of England Chairman, 1920s 

Because these institutions and individuals accumulate vast sums of money for their less-than-back-breaking efforts, they are well respected if not idolized by most. Many of the most successful paper-accumulators are household names. They get invited to the best parties, are lured by major networks to appear on their shows, speak at the biggest conferences, and their views and words find an easy path to the ears of millions.

But this is more than just an idle set of observations for the curious. It's actually a critically important phenomenon to be aware of. For the current configuration of financially powerful entities has, at the tail end of a decades-long debt-based money experiment, achieved an astonishing concentration of power, money, and influence.

We raise this topic because our work centers on changing the conversation towards the things that really matter while there is still time to engineer a better outcome, and that requires illuminating the status quo and having a conversation about whether it needs to be modified. Unfortunately, those at the center of the status quo are not at all interested in having any such conversation, because all of their accumulated power depends on maintaining things as they are.

Money is power.

And history has shown that power is never ceded spontaneously or willingly...

- Source, Chris Martenson of Peak Prosperity, read the full report here: