Thursday, January 30, 2014

JPM Loses 44% of its Gold in 4 days!

Another historical record withdrawal, JP Morgan had an additional 321,500 oz gold ounces removed from its vaults today.
Since last Thursday, JP Morgan has lost 44% (20 metric tons = 643,000 oz) of its gold inventories.

- Source, Silver Sufferer:

Thursday, January 23, 2014

Goldcorp Offers to Buy Osisko Mining - Is the Bottom of Gold in?

Goldcorp offered Osisko shareholders $2.4 billion in stock and cash to buy the shares of Osisko Mining (OSK). In terms of proven and potential gold in the ground, OSK is one of the best ways to play a big recovery in the price of gold and the precious metals mining industry. Goldcorp has always been the most likely buyer of Osisko so it was just a matter of time before this deal happened. For the record, Osisko is one of the bigger stock positions in the fund I manage. I have been waiting since 2010 for GG to takeover OSK. This is just the beginning.

Without going into the details of actual offer put on the table (I leave that for the super-anal analysts who give themselves brain damage scrutinizing every detail of shares vs. cash etc), I will say that in the context of where the scant number of mine acquisitions have occurred in the last 18 months, the deal appears to "fair." I also believe that Goldcorp will be forced to raise their offer if they really want to own OSK. OSK is sitting on one the newest and largest actively mined gold deposits in the world (10 million ozs proven and probable) and it is developing a second "elephant" deposit. Although the latter is still classified as "measured and indicated," it represents 7.5 million ozs that are most likely eventually going to be elevated to "proven and probable."

Large gold deposits have become very rare. Goldcorp knows this. Goldcorp's resource base was starting to get depleted, like Newmont's and Barrick's. The OSK deal offers an active 10 million ounce gold mine plus the likelihood of another 20 million ounces down the road.

Is this a fair deal? Yes, in the context of $1200 gold. But what about $2,000 gold, where gold was headed until the Federal Reserve and U.S Government were staring into the abyss and put into motion the most corrupt and intensive market intervention strategy in history in order to get gold down to where it is now and save the U.S. dollar?

Goldcorp knows where the price of gold is headed and this why they are buying Osisko now. They also probably know that the window of opportunity to buy 30 million ounces of gold in the ground at this price is quickly closing. In other words, this deal marks the turn in the massive gold and mining stock sell-off of the last two-plus years. While I expect Goldcorp to sweeten its offer, don't get caught up in the details of this transaction and miss the big picture: the bottom is in and gold is back on track to resume the upward trajectory it was on in 2011.

There is an acute shortage of physical gold in the world that can be delivered into China's voracious appetite. Last week alone 62 tonnes - a rate that greatly exceeds weekly global gold mine output - was delivered on the Shanghai Gold Exchange. Goldcorp knows this and and is putting it's money where it's mouth is. Stay away from the large mining companies and look for the ones that will be acquired - there a many that will yield 30-40x their current share price.

Don't let the thick smoke of disinformation and misinformation being blown by Wall Street and the media blind you. Follow the money...

- Source, The Golden Truth:

Tuesday, January 21, 2014

GoldMoney Launches Secure Offline Bitcoin Storage

James Turk’s GoldMoney group has launched a new digital currency company (Netagio) in the UK which will offer free secure and encrypted storage for digital currencies such as Bitcoin. Netagio will store customer’s Bitcoins securely offline to prevent unauthorized access.

If successful, the concept could be a game-changer for ex-patriates looking to relocate with their wealth as well as those attempting to escape capital controls as the Western financial system continues its slow-motion collapse...

- Read more here:

Sunday, January 19, 2014

Time to Back up the Truck and Buy Gold!

It has now been 29 months since gold last reached a new high in its current bull market cycle. The downtrend lasted 22 months (top to bottom), having bottomed on June 28th 2013 at $1180. Confirmation of the bottom came on Dec 31 when gold briefly touched $1182, and left behind a double bottom.
There have been two other corrections that lasted 6 months or more, from top to bottom: In 2006 gold declined for 6 months, and in 2008 the pullback took 8 months to bottom.
Thus a 22 month down-cycle qualifies under the Gann definition as ‘time is up’.

- Source, The Silver Doctors, read more here:

Friday, January 17, 2014

Overstock CEO Slams "Unethical" Krugman; Hopes "Bitcoin Destroys Central Banking"

Overstock CEO Patrick Byrne goes to town on Keynesian Crony Paul Krugman in this brief interview. Byrne blasts Krugman for everything from his "unethical" involvement in the Enron debacle to his present day view that "the market failed so we need more government; or freedom failed so we need more government."Noting that Krugman may have done "some great work before he went crazy," he rants against the Fed apologist for his "bitcoin is evil" comments adding that he hopes "Bitcoin can destroy central banking." Byrne pulls no punches in his attack on Krugman and his "Keynesian magic money tree theories," as he explains why the so-called 'economist' would be against a 'bounded currency'.

- Source, Zero Hedge:

Wednesday, January 15, 2014

Nigel Farage Booms "Europe Is Now Run By Big Banks, Big Business, And Big Bureaucrats"

 With Greek Prime Minister Antonis Samaras settling into his role as EU President, UKIP's Nigel Farage stunned the "Goldman Sachs puppet" with a 150-secondtirade of truthiness he has likely never experienced. Farage sarcastically remarks how Greeks "will be dancing in the streets" at Samaras' 'successful' negotiation on MiFiD reminding him that "60% of youth are unemployed and the neo-nazi party are on the march." Europe is now run by "big business, big banks, and big bureaucrats," Farage goes on, suggesting the smarmy-looking Samaras should "rename his party from New Democracy to No Democracy." People do not want a United State of Europe, the outspoken UKIP leader explains, they want a "Europe of sovereign states," and concludes ominously, "the European elections will be a watershed."

- Source, Zero Hedge:

Tuesday, January 7, 2014

The Biggest Scandal in Economic History

There is no doubt in my mind, that China wants its yuan (probably backed with gold) to be the world's next reserve currency. The US with its obscene level of debt is in no condition to keep the dollar as the world's reserve currency. Incidentally, I note that an increasing number of international commerce are now transacted in Chinese yuan. The dollar is the Achilles heel of the US.

As I've been saying, the year 2014 will be a year of tectonic changes. Bitcoin currency is becoming acceptable by an increasing number of organizations. Bitcoin is a menace to the phony dollars that are pumped out by the Fed. I know that the Fed wants to have a monopoly on the production of US money. Therefore, Bitcoin is a menace and rival to the Fed “dollars.” Therefore I expect the Fed to attempt to outlaw trading in Bitcoin.

Pity the Fed, besieged by Bitcoin and Chinese yuan. Bernanke will be happy to get back to South Carolina and out of DC ... Will the Treasury have the nerve to re-set the price of gold to $10,000 an ounce? And do we have enough gold to make a re-set worthwhile?

If it turns out that the US doesn't have the gold it claims to have. We could be looking at the biggest scandal in economic history. If we have all the gold we say we have, where's the damn audit?

- Richard Russel via King World News:

Sunday, January 5, 2014

China is Buying Gold to Become the Reserve Currency of the World

"You have to ask yourself this about the Chinese, in such dramatic contrast to us, why are they encouraging their citizens, I’m not saying not forbidding them, I’m saying actively encouraging them them on TV, etc., to buy gold?....

One reason could be that they want their citizens to (eventually) turn in some of their gold, and they (the Chinese government) will turn it into currency for them. That’s great. They are already setting up the mechanism for a gold standard.

Eric, the implications here are just phenomenal. You have to believe the Chinese have completely lost their minds in order not to believe that they are looking at gold in the multi-thousand dollar range. That’s the only way this makes sense. They are looking at gold as a central player in a new reserve currency. Who in the world would want (to hold) the dollar from a foreigners’ perspective? You (also) have this incredible alliance forming between China, Russia and Germany."

- Source, Stephen Leeb via King World News:

Friday, January 3, 2014

India's Invincible Love Story With Gold

Despite the government's ongoing efforts to cut gold imports - aimed at closing a widening current account deficit among other status-quo-questioning factors, the following brief clip from Bloomberg TV sums it all up perfectly - For this country of over one billion, "Gold is, was, and always wlll be... money." And now, following import bans and higher taxes, the government is considering restrictions on the holiest of holies - wedding gifts, and "legislating against love." 

By trying to discourage gold-buying, India's government is trying to roll-back centuries of tradition ("and an abiding love for the world's only enduring currency") and has created a major black-market for the precious metal...

- Sources: