... Look, you can sit there and worry all you want. Santa's been warning you for days that things were about to get hairy. I warned you last Friday that, with the Chinese New Year, paper selloffs were bound to be more successful this week. The PM "markets" have now been driven to the same extreme oversold levels that we've seen at almost all of the bottoms/lows in the past. Though there may still be some follow-through selling as the momos attempt to take out $1600, who cares? What are you going to do? Convert your metal back into fiat? And if you do, which one? The Pig? The Euro or by extension, the Swissie? How about the yen? That'd be fun.
It all comes down to courage of conviction. Do you believe your own logic and analysis or do you believe CNBS? Do you trust your instincts or do you trust The Fed? I know you get tired of hearing it but here goes (again): You are being presented with a gift. That you can continue to accumulate physical gold and silver at $1600 and $30 is simply astonishing. Let The Forces of Darkness do their evil bidding. Five years from now, a day like today will be long forgotten. Meaningless unless you acted upon your beliefs and used this weakness to add to your stack. ...
click through for all the charts and the rest of the post.
Today John Embry told King World News that a powerful entity is now battling the powers that be in the silver market. Embry, who is Chief Investment Strategist at Sprott Asset Management also spoke about the increase in net-long contracts in the face of the declining silver price, the silver shortage, as well as the gold market. Here is what Embry had to say in this powerful interview: “I’m focused on this vicious takedown of gold and silver that’s been ongoing for the last month and a half. I’ve been following this story for the better part of 15 years and I can honestly say I don’t think I’ve ever seen a more intense, day after day takedown.
“When London opened gold and silver were driven down for about ten consecutive days. The COMEX PM close was lower than the AM opening. This just bespeaks very aggressive manipulation. The question I ask myself is, ‘What’s bothering them? Why do they feel they have to do this?’
... In December the U.S. mint was hit by another silver shortage and was forced to suspend sales of the Silver American Eagle. By January 7, sales resumed and in just a matter of a few days over 6 million Silver Eagles were sold, far exceeding totals for the entire month of January 2012. Again, the mint was forced to suspend sales.
Last time the mint ran out of silver, the silver price jumped from $34 an ounce to $49, a quick 40% rise. Back then, the silver naysayers called it everything from a fluke to a spike to a bubble. Today, however, the tone of the silver message is changing. The silver shortage is growing.
You see, unlike other precious metals, Silver’s industrial demand is skyrocketing. Silver is known to have the highest electrical and thermal conductivity of all metals. Think about that! Why are today’s cell phones more powerful than yesterday’s giant computers? Silver is playing a major ...
After a solid advance last week for gold and silver, today Michael Pento has written exclusively for King World News to let readers know about the exploding grenade which is going to send, “... increasing money flows into both gold and silver.” Here is Pento’s piece: “Japan has already suffered through 25 years of an economic malaise because they have refused to allow the free market to work its reconciliation magic. Their reliance on government borrowing and spending to rescue the economy has proven to be a miserable failure.
Because of this fact, Japanese politicians have succeeded to increase the debt to GDP ratio to 237%, which should have already caused a collapse in Japanese Government Bonds (JGBs) and the Yen. However, JGBs have held their value for two reasons: The Japanese own 92% of their sovereign debt; And, up until now, deflation has reigned over the island. ..."
Only 9 days ago we reported that orders for the one ounce Silver Eagle bullion coins by the U.S. Mint on the first day they became available (January 7th) hit a new record of nearly 4 million coins – the highest single day sale in the programme’s history.
Since then demand has apparently remained extremely strong with over 6 million coins sold in less than 2 weeks causing the Mint to have to temporarily suspend sales to its authorised dealers while it rebuilds inventory.
The Mint says it expects that no new Silver Eagles will now be available before January 28th or possibly a few days later, and will then ration coins on an allocation basis. ...
"... This latest move higher in the index must therefore be closely monitored as any change in the technical posture of this chart, will be the first sign of inflationary pressures beginning to surface in the economy at large. If, and this is a big, ""IF", the index pushes past BOTH resistance levels noted on the chart and breaks out of the channel, especially if it clears the region near 578, expect to hear increased chatter about inflation. This should especially benefit silver, which is much more sensitive to inflation pressures than is gold, or least has been if recent past is any indication.
"Quite frankly, I have been a bit surprised that it has taken so long for the sector to see much in the way of money flows, especially with the equity market moving so strongly higher on the thesis that the global economy is recovering. If it is, especially in the case of China, then commodities as a whole would also benefit under such a scenario. ..."
... A sharp push now through the $31.50 level will spark some decent short covering and serve to bring in new momentum based buying. We will see if silver can do just that. Downside support remains slightly above the $30 level. ...
How anyone can suggest the creation of a $1 trillion platinum coin purely to circumvent checks on government spending defeats all logic and its creation would presage a flight into gold and silver.
by Lawrence Williams:
LONDON (MINEWEB) -
Far be it for me to argue with a Nobel prizewinning economist, members of Congress and however many thousands have signed the White House petition to mint it, but this whole idea of a trillion dollar platinum coin is ludicrous.
It would have to constitute the most gigantic fraud ever perpetuated by a government and probably make the U.S. dollar and the U.S. economy the laughing stock of the world. If anything, it would trigger a huge investment surge into gold and silver as all faith in government-created money would evaporate!
Firstly – why platinum? It is based on a legal technicality allowing the U.S. to mint platinum coins of any face value. However, given that $1 trillion dollars worth of platinum at current prices represents around 8 or 9 times the amount of platinum ever mined throughout history, a trillion dollar face value coin would have to bring any kind of money creation into even more disrepute than it already is. ...
Click through for the rest of Williams's article. But I agree. it's hogwash. Or is that putting lipstick on a pig?
PM Abe continued on his relentless assault on the BOJ and today he repeats his request for the bank to act on the 2% inflation target.
By Robert Jillies PM Abe continued on his relentless assault on the BOJ and today he repeats his request for the bank to act on the 2% inflation target. In addition, he mentioned that the fiscal spending will not be forever and that once growth and inflation is attained then raising taxes will be viable.
Meanwhile, bond traders are worried that the Fed may cut short QE program as early as the end of 2013 which could indicate a possible rise in interest rate to curb potential rise in inflation. This argument is based on the latest media frenzy that the US economy is on the road to recovery. Such argument is also boosted by a better economic data from the Euro zone as well as verbal confirmation from European leaders that they are out of the crisis.
In addition, China better than expected GDP numbers lend a hand to the current optimistic equities market. However, is this optimism a sustainable one? ...
Click through from the analysis on gold and silver.
Russia's central bank intends to continue buying gold, its first deputy chairman Alexei Ulyukayev said earlier this month, although he denied there is a target for gold to make up 10% of reserves.
By Ben Traynor BullionVault
London Gold market report
The US dollar gold price extended its losses from last week Monday, dipping to a near-three-week low below $1655 per ounce during London's morning trading, as stock markets ticked higher, with the FTSE 100 hitting its highest level since May 2008.
The S&P 500 meantime climbed above 1500 last week for the first time since December 2007.
Silver this morning dropped below $31 an ounce to hit a two-week low, while other commodities were broadly flat and US Treasuries gained.
Last week saw spot gold fall 1.5%, while silver was down 2.1%.
"It seems that a number of safe haven refuges like gold, the Japanese Yen, US Treasury bonds, and the Swiss Franc have all been under pressure lately," says Ed Meir, metals analyst at brokerage INTL FCStone. ...
Printed money is like heroin, the patient needs bigger and bigger doses until it finally kills him or makes him totally dysfunctional. And this is what is happening to the world economy. Government benefits are increasing and the people are in need of even greater stimulus as unemployment escalates. - Egon Von Greyerz, Matterhorn Asset Management
We are starting to see the unmistakable signs of the law of supply and demand gripping the market for physical silver. By this I mean the endless of supplies of paper fiat currency chasing after the relatively fixed supply of physical silver. Last week the U.S. Mint announced that it had run out of its initial production of 2013 Silver Eagles and that new shipments would not be available until late January. This is just one of many examples.
What this means is that we are going to see a much higher price for silver over the next several months, as the Comex paper market bullion bank manipulators begrudgingly retreat in order to allow a higher market price to possibly induce some supply from existing holders how bought at lower levels. ...
TheProspectorSite.com exists to provide proof via current events and history that precious metals are one of the best ways to preserve and grow your wealth.
I’m not sure who said it but it’s worth repeating. The best time to buy silver was ten years ago, the second best time is now. This week TPS (The Prospector Site) received our share of emails asking if now is a good time to buy or wait in hopes of a silver price dip. I understand the thinking but to me personally the risk doesn’t out way the return. Over the next few hundred words I’ll explain why I feel now is the time to buy silver. ...
You'll need to click over for the rest of his post.
Gold rallied back and hard to reach 1687 - facing resistance at the top of the Bollinger band and as shorts covering happened, more buying emerge.
By Robert Jillies Short Term: Gold was initially down by $ 10.00 after the jobless claim data that was widely anticipated as the Fed tied QE with the unemployment rate. The biggest shock came from the negative reading of the Philly Fed Manufacturing and other market indicator shows that the Fed actually prop more liquidity.
Gold rallied back and hard to reach 1687 - facing resistance at the top of the Bollinger band and as shorts covering happened, more buying emerge. Our guesses were for tomorrow is as good as the Chinese GDP numbers. Short term gold powered to 1697 and resisted 1700 and that could either mean more range trading as it consolidate the recent Bull Run. We look for support at 1670 area again. Failing that we see 1665 and 1650.
Medium Term: Note on the 4 hourly chart, prices are currently at the top range and the bull camp are roaring again. It was lifeless until a quick reversal and now it’s testing to break 1700. Our assumption that prices should find support before moving higher was proven. We view that gold is well ...
What Storm?A hurricane of digital money created by central banks to purchase government debt and other dodgy assets from banks.A tidal wave of deficit spending by governments around the world. It continues, regardless of whether you call it business as usual, stimulus, payoffs, or bailouts.A perfect storm of derivatives - the weapons of mass financial destruction that continue to plague our financial system - but make $Billions (Maybe $Trillions) in profits for the huge banks.A tornado of bailouts, giveaways, loans, and currency swaps from the Federal Reserve to backstop banks, politically connected individuals and corporations, European governments and others.An approaching thunderstorm of new and higher taxes - perhaps a carbon tax, a VAT, and a wealth tax. We hope most of these will be downgraded to a hot air disturbance.A tsunami of Japanese Yen based on the election of Prime Minister Abe and his avowed intention to weaken the Yen.
... at the U.S. Mint on Monday. They sold another 13,000 ounces of gold eagles...3,000 one-ounce 24K gold buffaloes...and 300,000 silver eagles. Silver eagle sales are now through the five million coin/ounce mark at 5,082,000...along with 150,000 ounces of gold eagles and buffaloes combined to date. These are serious numbers...and we're only halfway through January.
Sometimes the answers are right in front of your face.
... Note how closely gold, silver and platinum tracked each other through 2012. However, suddenly on 1/3/13, they began to disconnect. Now, maybe there's some fundamental reason for this that I'm overlooking? Maybe, though, the beatdown at year-end and following the FOMC minutes was a deliberate washout attempt on gold and silver only? I'm going with the latter. And maybe now it's simply time for gold and silver to catch up? ...
Click through for the full analysis from TF Metals
On the heels of some wild trading action this past week in the gold, silver and stock markets, today 56-year market veteran and analyst Ron Rosen sent King World News a fascinating piece. Rosen states that we are headed for some extremely violent trading in stock markets this year, but he believes gold and silver will begin a dynamic rise in 2013. Nick Laird from ShareLynx assisted Rosen by putting together some fantastic charts for this piece.
The secret to knowing what the markets will do through time is really no secret. All we really must know is how people in the markets collectively function through time. Are there collective patterns of buying and selling? Do any of these patterns repeat through time? Do market movements from the past repeat in the future? The answer is yes, they do. This is what I have been studying for 56 years.
Before I could confidently and accurately see patterns in others taking place I had to see the patterns in myself and examine how I repeated them over and over. Until I began to fully recognize them I was not able to change and modify them. The markets consist of millions of participants who do not recognize that they are collectively repeating their patterns of buying and selling through time ...