Gold prices rallied in the mid-week session Wednesday to close at a six month high and extend a winning streak to three sessions.
Gold for April delivery advanced $23.80, or 1.8%, to settle at $1,370.50 an ounce on the Comex division of the New York Mercantile Exchange. The price was the highest since gold ended at $1,386.70 an ounce on Sept. 9. ...
-- who seems to have become the first major mining executive to speak candidly about and to acknowledge central bank intervention against the price of gold.
McEwen's comments came in response to a question during McEwen Mining's fourth-quarter and year-end financial results conference call. He was asked what he thought of the growing number of complaints about manipulation of the gold market and whether it would be good for him to complain about it to the Bank of Canada. ...
David Stockman warned King World News that investors should not buy the dip any dips in the stock market because there is going to be a massive “selling panic” in stocks. KWN takes Stockman’s warnings very seriously because he is the man former President Reagan called on in 1981, during that crisis, to become Director of the Office of Management and Budget and help save the United States from collapse. Below is what Stockman had to say in part II of a series of powerful interviews that have now been released.
Stockman: “The greatest danger is the central banks. All the central banks are out of control. They have expanded their balance sheets in a way historians someday will properly and soberly describe as lunatic....
Analysts from Noruma Securities even upgraded its outlook for gold, expecting bullion to climb over the next three years.
Gold’s Bull Days Are Back?
Gold is coming back with a vengeance, experiencing a clear recovery and grabbing the attention of market cynics. Analysts from Noruma Securities even upgraded its outlook for gold, expecting bullion to climb over the next three years, according to Barron’s.
Nomura analysts attribute their increased gold forecast to real interest rates that “don’t seem to be heading anywhere at the moment.” In addition, there appears to be “long-term demand support from Asian nominal income growth, an evolving post-QE macroeconomic environment and lower disinvestment potential.” ...
I have been adamant in stating that without Western-based investment demand for gold, the market cannot mount any sustained rallies. Asian gold buying provides the solid floor of support underneath the gold market but in and of itself, CANNOT maintain gold in a sharp bullish trend move higher. That requires concerted effort by the big Western specs.
My friend John Brimelow's reports on Asian gold demand and premiums/discounts are the best source for gauging demand for the physical metal from that corner of the world but as a gauge of Western demand, I rely on the large gold ETF, GLD in particular. It is the best bellwether we have to ...
Click through for the charts and the rest of the post.
None of the problems that caused the last financial crisis have been fixed. In fact, they have all gotten worse. The total amount of debt in the world has grown by more than 40 percent since 2007, the too big to fail banks have gotten 37 percent larger, and the colossal derivatives bubble has spiraled so far out of control that the only thing left to do is to watch the spectacular crash landing that is inevitably coming. Unfortunately, most people do not know the information that I am about to share with you in this article. Most people just assume that the politicians and the central banks have fixed the issues that caused the last great financial crisis. But the truth is that we are in far worse shape than we were back then. When this financial bubble finally bursts, the devastation that we will witness is likely to be absolutely catastrophic. ...
The Fed's policies have been an unqualified success for financiers and an abject failure for the bottom 99.5% who have to work for a living.
After five long years of politicos and the financial media glorifying the Federal Reserve's policies as god-like in their power and efficacy, let's take a quick look at the results of these vaunted policies: ZIRP (zero interest rates), (QE) quantitative easing, both of which are ways of shoving nearly limitless, nearly-free money ( a.k.a. liquidity) into the banking sector, where all this free money is supposed to filter into the global economy, working miracles of prosperity.
Let's start with a chart of the Fed's balance sheet, which reflects just how much money the Fed has created and pumped into ...
With continued chaos and uncertainty in global markets, today KWN is publishing another incredibly important piece that was written by a 60-year market veteran. The Godfather of newsletter writers, Richard Russell, exposes the devastating truth about what the United States has been reduced to. He also discussed what is happening in major market as well as what investors should be doing with their own money right now.
Russell: “The US is now actually borrowing to pay off the interest on its huge and growing debt. The Treasury continually issues bonds. But who will buy them? Can you believe it, the US is reduced to actually buying its own debt via the Federal Reserve. What does the Fed buy our debt with? It buys our own debt with money that it conjures up out of thin air by means of a bookkeeping entry. The Fed has been doing this for years and the Fed's basket of bonds is now over $4 trillion dollars worth of assorted bonds.
The continuing buying of bonds (QE), now $60 billion every meeting, has driven stocks up to overvalued levels. Companies are taking advantage of the lower rate environment in the limited period that these low rates are going to be around. ...
There is solid evidence that the Philadelphia office of the Census Bureau didn’t cheat on unemployment data only in 2010. The scam continued until I exposed it this past November.
On Nov. 19, I wrote a column that broke the news about Julius Buckmon, a Census enumerator — or data collector — who was conducting surveys in the Washington, DC, area for the Labor Department’s Current Population Survey (CPS).
The CPS — also known as the Household Survey — is what determines the nation’s monthly unemployment rate, a number recently used by the Federal Reserve to make monetary policy and by many others in government and private industry. ...
Precious metals boosters will see gold's nominal price break upward and probably get excited. They will marshal the troops for what could one day turn out to be a full fledged tout, as if the 40% decline of the last 2.5 years had never happened.
Another clue will be to watch SILVER. Currently, silver is being treated as an industrial metal as much as a precious metal, which is keeping silver weak versus the GOLD. The SILVER is holding above the 200-day moving average but it needs to gather momentum to provide support to a more robust precious metal rally. In terms of the GOLD, the gold/currency charts have all rallied to reside above the 200-day, giving an area of support. The gold/swiss broke above the key moving average today. More importantly, the gold/yuan chart has been a beautiful indicator for gold. Last July, I pointed out on Santelli’s segment that the gold/yuan price of 7150 yuan to an ounce of gold was critical for that was where the gold price was when the IMF made that deal to sell 200 tons of gold to the Indian Central Bank November 2, 2009. Time to regroup and gain perspective. ...
When the Census Bureau was told in 2010 that a data collector named Julius Buckmon was falsifying information that went into the nation’s monthly unemployment report, according to a source who knows the case, it halfheartedly assigned the probe to one of its investigators .
That investigator, Rachel Ondrik, has since been charged with and convicted of fraud by the US Attorney in Maryland. She was sentenced last year to eight months in jail.
Ondrik is appealing.
You already know most of this story. Buckmon, who worked out of the Philadelphia Census office, each month falsified household surveys that could have impacted the results of the all-important jobless figures.
Buckmon claims that higher-ups told him to do so — and I’m trying to find out just how high this conspiracy went. ...
Kind of makes your head spin. Click through for the rest.
Gold peaked in August of 2011 and fell erratically into December 2013.
Was that the end of the collapse, or is there more downside coming in gold prices?
Bearish Scenario: Listen to the banks who are forecasting weak prices in 2014 and thereafter.“Nothing to see here folks, the dollar has weakened drastically since 1971, gold sells for 30 times its 1971 price, but it’s all good. Just move on and pretend… Gold will drop below $1000 before you can say 2016 elections…”
I’m not a fan of:
The bearish gold scenario when decades of Federal Reserve “printing” and US government budget deficits have all but guaranteed continued destruction of the purchasing power of the dollar.
Belief that even though dollar debasement practices have accelerated since the 2008 crash, gold prices will fall because bankers say so. ...
With gold near $1,350, and the world worried about war breaking out in Ukraine, today an acclaimed money manager spoke with King World News about $10,000 gold, Russia, China, the United States, and Ukraine. Below is what Stephen Leeb had to say in this powerful and timely interview.
Leeb: “Eric, I’m focused on geopolitical factors and how desperate the West seems to be to keep this world running. Every day that goes by there are more signs of desperation. Putin is giving no sign whatsoever of backing down in Ukraine. It’s very clear that he is going to annex the Crimea.
He will also make a run at other eastern Ukrainian enclaves where there are a lot of Russians. I think the United States and Europe are going to be left holding the bag. ....
The only way to eliminate the financial parasites is to stop subsidizing their skimming and scamming, and the only way to stop subsidizing the financial parasites is to shut down the Fed.
Before I explain how the Federal Reserve has failed America, let's do a little thought experiment. Let's imagine that instead of creating $3.2 trillion and giving it to the banking sector to play with--funding carry trades and high-frequency trading, for example--the Fed had invested in carry trades itself and returned the profits directly to taxpayers.
Before we go through the math, let's recall how a carry trade works: Financiers borrow billions at near-zero interest from the Fed and then use the free money to buy bonds in other countries where the return is (say) 5%. The financiers are skimming 4.75% or more for doing nothing other than having access to the Fed's free money.
If the bonds rise in value (because interest rates decline in the nation issuing the bonds), the financiers skim additional profit. If the trade can be ....
With continued uncertainty in markets around the world, today James Turk spoke with King World News about a loss of faith in the system, mismanaged currencies and a flight to hard assets. Turk also discussed the stock market action, which has puzzled many professionals.
Turk: “This week marks the fifth year of the bull market in stocks, Eric. It is milestone that has been receiving a lot of attention in the mainstream media and rightly so because when viewed against historical norms, five years is a long time for any bull market in stocks.
Because this bull market is long in the tooth, a large number of people are talking about the stock market being at risk of a collapse....
Today a man who has been involved in the financial markets for 50 years spoke warned King World News readers to put aside the mainstream media propaganda because the world is headed for “disaster.” He went on to discuss the implications for investors around the world and major markets. Below is what John Embry had to say.
Embry: “I’m focused on the pathetic reporting on the gold market in the West. This morning Reuters was saying that the gold price was down because of the good economic numbers reported on Friday in the United States, and Chinese selling. I do not believe for a moment that the Chinese are selling any physical gold....
The jobless rate moves up and down for the wrong reason. By government definition, the jobless rate declines when people have given up looking for jobs. And it rises when people start getting encouraged about the economy and try to re-enter the labor force.
Besides, I haven’t completely figured out yet how much this figure has been manipulated over the past few years.
Yes, it has been manipulated. I just don’t know by how much, although I think I’m starting to figure out that answer. Don’t change your channel. I might have news on this next week. ...
In part one, I explained the sequence of events that was the global financial crisis. It started in February 2007, with the first reported mortgage losses. But it wasn’t until March 2009 that stock markets plunged to their crisis lows. Today I’ll explain what happened next, and what investors should do today.
It’s easy to forget that the crisis was on a long fuse and not a short one. From the start of the crisis to the stock market bottom was a period of just over two years. If we say the epicentre of the meltdown was the stock market bottom, on 9 March 2009, then we can say “Happy 5th Birthday, Dear Financial Crisis”. But in fact it’s just over seven years since the waters originally broke at HSBC, in February 2007.
Interestingly, and perhaps worryingly, the banks are still in recovery mode. Many are shrinking their balance sheets as they continue to work off bad assets, and struggle to meet new and much tighter regulatory capital requirements. ..