Gold and What Moves it.
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Gold and What Moves it.
Tracking all things that relate to and affect the price of gold.
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Don Coxe: "Central Banks Are Busy At Work Creating The Next Big Bull Market In Gold" | Bull Market Thinking

I was able to connect with the legendary Don Coxe this week, chairman ofCoxe Advisors LLP, during a time in which investor sentiment in the mining and precious metals sector has reached levels of “despair and cynicism”,the likes of which Don has never seen before.

 

What was encouraging to note however, was that in response to investor sentiment, large mining companies are cutting projects and plans to build new mines—which according to Don, will extend and further heighten the next up-cycle, as well as create shortages in the metals later this decade.

 

Reflecting on the recent BMO Metals & Mining conference, Don explained that, “The new CEO of Barrick…promised that after they complete their last big project, which will be done in two years—they’re not going to be developing any new mines for a long time. You never once heard that kind of statement being made at a conference from 2003 to 2012…looking further out (because the commodity boom is still intact), we won’t be getting a new generation of mines being brought in 3-4 years from now. So the next shortages will probably develop later in this decade.”


Don further added that, “I have not seen such despair and cynicism like this before…I’ve been going to conferences for so long, and [in the past] there would be doubt expressed. But not the kind of throwing in of the towel which permeated this conference…[However], the old saying is that it’s always darkest just before the dawn…We have is pessimism now, [but] optimism will return. Optimism can be retained for a whole decade…therefore, the pullback that we’ve had is something I would regard as temporary, as painful as it is…This is the stuff of the next big bull market, but what you don’t know, is what the gestation period is.” ...

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ECRI's Achuthan: US Recession Began in Mid-2012 | Bloomberg | Safehaven.com

ECRI's Achuthan: US Recession Began in Mid-2012 | Bloomberg | Safehaven.com | Gold and What Moves it. | Scoop.it

Lakshman Achuthan, co-founder of the Economic Cycle Research Institute, told Tom Keene and Sara Eisen on "Bloomberg Surveillance" this morning that a U.S. recession "began around the middle of last year.

 

Achuthan said, "the entire West is in the yo-yo years. They have all been having growth stair stepping down. It is very weak growth with higher cycle volatility which will give you more frequent recessions." ...

Hal's insight:

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Jesse's Café Américain: The Middle Class: Death By a Thousand Cuts - Is Nothing Sacred?

Jesse's Café Américain: The Middle Class: Death By a Thousand Cuts - Is Nothing Sacred? | Gold and What Moves it. | Scoop.it

Politicians from both sides of the aisle will swear pious oaths to protect and foster the well being of the middle class.  They will say that their policies and proposals are all designed for its betterment.  And yet the state of the middle class continues to dwindle into despair and disrepair. Why is this? 

It is not because of the predominance of a right or left ideology, of taxation and deficits and austerity. It is not because of the re-emergence of a perversion of the gospel, in the predestination of prosperity. We have seen all this before. It is not because in our comfort we have lost the sense of the imperative of common cause.

It is because of the overwhelming corruption of power, and of the cynical amorality of thoroughly modern political managers who worship power and personal wealth as ends unto themselves. 

It is driven by the allure of the monied interests, and their corrupt political bargains.  It is a child of the subornation of ...

Hal's insight:

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oftwominds-Charles Hugh Smith: Unpopped Housing Bubbles Abound

oftwominds-Charles Hugh Smith: Unpopped Housing Bubbles Abound | Gold and What Moves it. | Scoop.it

History suggests that we can anticipate the eventual popping of all remaining housing bubbles.


Though much has been written about the popping of the housing bubble in the U.S. and Ireland, remarkably little has been written about the many housing bubbles that remain unpopped. As a rule, speculative bubbles pop and revert to their pre-bubble levels, so we can anticipate the eventual popping of all remaining housing bubbles. David P., proprietor of the excellent Market Daily Briefing blog, recently shared two charts depicting housing markets in the European Union.
Hal's insight:

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Indian gold buyers embrace the web - GOLD NEWS - Mineweb.com Mineweb

Indian gold buyers embrace the web - GOLD NEWS - Mineweb.com Mineweb | Gold and What Moves it. | Scoop.it


by Shivom Seth

MUMBAI (MINEWEB) - 

 

Most Indian e-commerce companies active in the jewellery segment hope to double their sales this year as online shopping continues to gain traction in the country.due to the changing lifestyles of youngsters and an increase in earning power of their parents.

 

"During the Diwali season, we saw more than around 1,500 transactions on our website over a couple of days. This year, we are looking at hitting 3,000 transactions every week,'' said Mahesh Gupta, president of HariLal Jewellers, who owns a bullion souk in Mumbai.

 

He added that government or regulatory policies on gold would not help to curb gold sales or gold demand, and that most of it happens to have moved onto the net. ...

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Richard Russell - I’ve Never Seen Anything Like This In History

Richard Russell - I’ve Never Seen Anything Like This In History | Gold and What Moves it. | Scoop.it

With key global markets breaking to new all-time highs, and continued volatility in the gold market, today theGodfather of newsletter writers, Richard Russell, believes what we are witnessing right now in markets is unlike anything he’s ever seen in history.  Here is what Russell had to say to subscribers: “Yesterday history was made when the Dow rose to a new record high and finally confirmed the prior record high put in by the Transports.  The question now becomes -- what do we have here, a weird kind of bear market or a new bull market?”


“The honest answer is that in all my years of studying and dealing with the markets, I've never seen anything like the action since the 2009 bottom.  As a practice study, I rethought the whole 1920s series as if I was reconstructing the events of 1929.  Suppose, after the September, 1929 record high in the Dow, the Rails had turned up from the crash lows and had also risen to a new record high?  

 

Then suppose the Dow had followed, and the Dow had risen to a new all-time high?  Such action would have been puzzling, but what would analysts have called it?  My guess is that analysts would have simply called it “confusing and unprecedented.” ...


Hal's insight:

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Eric De Groot: Nothing Has Changed! Stock Market As Well As Irresponsibility at All-Time Highs

Eric De Groot: Nothing Has Changed! Stock Market As Well As Irresponsibility at All-Time Highs | Gold and What Moves it. | Scoop.it

The financial panic of 2008 was merely a dress rehearsal for a greater, more painful transition (panic) in 2016.  Why?  Nothing has changed!  Consumption and savings as a percentage of income are near all-time highs and lows, respectively (chart 1 and 2).  This means millions of Americans, even more than the previous cycle of 2007-2009, will be 'dangerously unprepared' when the cyclical downturns strikes with little advanced warning. ...

Hal's insight:

Click over for the rest and the full size charts. But he's saying the same thing I've been saying for a while. Nothing has changed and because of that the Piper's going to be calling for his money sooner or later and will be taking our children because the paper is worthless. How's that for mixing metaphors? :)

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Things – Market, Economic, Social, Political and Life Commentary by Peter Grandich

Peter Grandich writes:

 

"... Gold still remains on the defensive and critical to get above psychological $1,600 ASAP, especially with how it usually gets slammed around monthly employment report. The mining and exploration sector has been badly damaged and the only hope now is the sense that there is no hope. ..."

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TrimTabs Reports U.S. Economy Adds 100,000 Jobs in February - TrimTabs Money Blog

TrimTabs Reports U.S. Economy Adds 100,000 Jobs in February - TrimTabs Money Blog | Gold and What Moves it. | Scoop.it

Tax Deposits Indicate Last Month’s Employment Growth Slowest since June 2012

 

Sausalito, CA — March 6, 2013 — TrimTabs Investment Research estimates that the U.S. economy added 100,000 jobs in February, down from 135,000-155,000 jobs in January.

 

“Employment growth has gotten off to a slow start this year,” said David Santschi, Chief Executive Officer of TrimTabs.  “Real-time tax data indicates that employment growth last month was the slowest since June 2012.”

 

TrimTabs’ employment estimates are based on an analysis of daily income tax deposits to the U.S. Treasury from all salaried U.S. employees.  They are historically more accurate than the initial estimates from the Bureau of Labor Statistics.

 

In a research note, TrimTabs reported that wage and salary growth was 0.4% year-over-year in February versus 6.7% year-over-year in January.  Adjusting for the government’s data on consumer price inflation, real wages and salaries fell 1.2% year-over-year in February after rising 5.1% y-o-y in January.

 

“In making our employment estimate, we had to adjust the raw income tax withholdings data to account for a substantial degree of bonus shifting,” said Santschi.  “Bonus shifting pushed up growth in January and depressed it in February. ...

Hal's insight:

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Jim Sinclair - Paper Markets To Disappear As Gold War Rages

Jim Sinclair - Paper Markets To Disappear As Gold War Rages | Gold and What Moves it. | Scoop.it

Today legendary trader Jim Sinclair predicted the paper markets would disappear as the gold war intensifies.  Sinclair also spoke with King World News about the “end game,” how various countries are positioning themselves, and how this will impact the gold market.  Below is what Sinclair, who has been actively trading the markets for over half a century and whose father was business partners with legendary trader Jesse Livermore, had to say about what is now taking place as the gold war continues to rage.

 

Jim Sinclair: “The market character has now changed for gold and very few recognize that.  Gold is a trading market which involves sovereign entities, very serious sovereign entities such as China and Russia.  Recently you can even see the minor central banks such as South Korea purchasing gold. 

 

The price fixers can manipulate or play the futures or paper markets, but it’s the physical market which will determine the price of gold.  Physically is monetarily.  Paper is casino.  Because the monetary nature of gold is what’s going to create a significant increase in price, the futures markets will start moving towards cash markets. ...

Hal's insight:

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The Golden Truth: big banks are completely above the law. - Eric Holder

The Golden Truth: big banks are completely above the law.  - Eric Holder | Gold and What Moves it. | Scoop.it

... This is truly mind-blowing.  Basically, the Attorney General of the United States has said that the big banks are completely above the law.  There's nothing left for us to do.  Eric Holder has officially turned this country over to the big Wall Street banks. 

This means that Obama and Eric Holder have COMPLETELY FAILED to do the job they are elected to do.  Which is to uphold the Constitution and Rule of Law. 

The United States is OFFICIALLY a Banana Republic governed by The Rule of Banks.

Hal's insight:

Dave in Denver is right on.

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Jesse's Café Américain: The Market Price of Corruption: Real Rates, the Real Yield Curve, and the GDP Gap

Jesse's Café Américain: The Market Price of Corruption: Real Rates, the Real Yield Curve, and the GDP Gap | Gold and What Moves it. | Scoop.it

What is the market price of policy error, careerism, and corruption?

The charts are simple, but the implications are profound.

Hal's insight:

You need to click through for the full size charts.

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Azerbaijan to increase gold reserves - GOLD NEWS - Mineweb.com Mineweb

Azerbaijan to increase gold reserves - GOLD NEWS - Mineweb.com Mineweb | Gold and What Moves it. | Scoop.it

MUMBAI (Mineweb) - 

 

In January this year, Azerbaijan acquired gold bullion for the first time in more than three years.

 

An additional 1 tonne of gold was purchased by the State Oil Fund of the Republic of Azerbaijan on March 1. This was temporarily stored in the vaults of the Central Bank of the Republic of Azerbaijan.

 

Around 17,422 kilo was included into the State Oil Fund of Azerbaijan (Sofaz) investment portfolio as of March 1, 2013.

 

In a repatriation process, Sofaz had started placing its gold reserves in the vaults of the Central Bank of Azerbaijan in Baku. ...

Hal's insight:

And so the nations around the globe continue to show the need to get into gold.

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The Mexican Standoff: Gold, Banxico and the Bank of England | Jan Skoyles | Safehaven.com

The Mexican Standoff: Gold, Banxico and the Bank of England | Jan Skoyles | Safehaven.com | Gold and What Moves it. | Scoop.it

Late last month it was reported that Mexico are going to organise an audit of their gold stored at the Bank of England.

 

Financial journalist Guillermo Barba, writes that that the Mexican Superior Audit of the Federation ("ASF" in Spanish) has made an official 'recommendation' that the Bank of Mexico "should "make a physical inspection with the counterparty that has the gold under its custody, in order to be able to verify and validate its physical wholeness and the compliance with the terms and conditions of dealing with this Asset..." It was verified by the ASF that this has never been done by Banxico."

 

It turns out the Banxico, aren't really even that sure how many gold bars they own.

 

Barba's concern, along with many other individuals and countries, is that the gold may not even be there. In documents received by Barba, from Banxico, reference is made to the London Bullion Market Association which he finds 'disquieting.' This is of course down to the fractional reserve system which large bullion banks operate on. This can, of course, only survive if the countries don't come running for their gold at the same time.

 

The gold stored at the Bank of England came under (weak) media scrutiny at the beginning of the year when Germany announced that it would be bringing back some of its gold, not from the Bank of England, but from Banque de France and the ...

Hal's insight:

This issue will not go away I think unless the gold is in each country's hands. And getting it there may result in something painful.

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China Preparing To Impose Bretton Woods II Gold Standard

China Preparing To Impose Bretton Woods II Gold Standard | Gold and What Moves it. | Scoop.it

With continued volatility in the gold and silver markets, today acclaimed money manager Stephen Leeb told King World News the Chinese accumulated a remarkable 1,500 tons of gold last year, and they are preparing to demand a second Bretton Woods type meeting.  This is a stunning interview because it lays out how the bulls will win the gold war, and how China will force that victory.  Here is what Leeb had to say in this exclusive interview, which is his most powerful ever:  “The flow of power and gold is going from West to East.  China may have accumulated a staggering 1,500 tons of gold last year alone.  China’s growth is now picking up steam as well.  What is really stunning is how much the yuan has increased in terms of international transactions.”


“The usage of the yuan in international transactions has been increasing at an unbelievable 170% per year.  That’s how fast the yuan has been increasing in terms of international transactions.  So goes the gold, so goes the power, and you can see it in the prominence the yuan is gaining.

 

The Chinese definitely have a plan here and that is to get control of gold....


Hal's insight:

China has been heading for this type of goal for a while now. It's coming sooner or later in some fashion.

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The entire Western world has now adopted "QE to infinity" with gusto « Jim Sinclair's Mineset

Jim Sinclair writes:

 

The entire Western world, once vocally critical of QE, has now adopted "QE to infinity" with gusto.

 

There is no way to avoid the consequences of debt monetization. The economic law is an axiom, and the consequences will occur.

 

Gold will trade at $3500 and above as it exercises it inherent characteristic via Gresham’s law in the BRICs central banks to balance the balance sheet of the most errant deficit. ...

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Gold bar sales in China jump twofold during Spring Festival - GOLD NEWS - Mineweb.com Mineweb

Gold bar sales in China jump twofold during Spring Festival - GOLD NEWS - Mineweb.com Mineweb | Gold and What Moves it. | Scoop.it

by Shivom Seth

MUMBAI (MINEWEB) - 

 

Though the world's second largest economy China grew at its slowest pace in 13 years in 2012, the Spring Festival celebrations by the Asian country showed that citizens were eager to leave it all behind and embark on a massive shopping spree.

 

As compared to last year, sales of gold bars for investment purposes reported a twofold increase. The decline in gold price on the international market was one of the main factors that triggered brisk sales of gold bars.

 

Retail sales at outlets monitored by the Ministry of Commerce increased 14.7% during the February 9 to February 15 period this year, as compared to the year ago festival period. Around $86 billion (539 billion yuan) worth of sales took place this year, according to the government. ...

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UK Gold hallmarking drops sharply

According to data from Birmingham assay office, hallmarking dropped to the lowest since at least 2007 as higher local prices helped curb demand.

 

BIRMINGHAM(BullionStreet): Britain's UK hallmark said country's four assay offices hallmarked 246,993 items in February, down 14% from a year earlier. 

According to data from Birmingham assay office, hallmarking dropped to the lowest since at least 2007 as higher local prices helped curb demand. 

That's the lowest on record for data going back to January 2008, when monthly figures were first collated. 

Britain's economy shrank 0.3% in the fourth quarter as exports fell and an uncertain outlook depressed company investment, government data showed on February 27. 

Gold's average of 1,048 pounds ($1,582) an ounce so far this year is 2.5% below the record quarterly average in the three months through March 2012.

"There is no doubt that hallmarking figures are still dropping in volume due to high precious metal prices," Marion Wilson, marketing director at the Birmingham assay office, said. ...

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Eating the Dow for breakfast - Adrian Ash

Eating the Dow for breakfast - Adrian Ash | Gold and What Moves it. | Scoop.it
Alternatively, you could judge the Dow in terms of the stock market's dark, benighted opposite - a lump of gold bullion. Many people do, in fact. The Dow/Gold Ratio as it's known plots the value of the 30 Dow stocks in ounces of gold.

 

Forget about the Apple effect. Not including AAPL in its 30 constituents is just one of the Dow Jones Industrial Average's many quirks.

So too is its ever-changing Dow divisor, a number seemingly picked at random to smooth out the math in the DJIA. But neither of these oddities changes the fact that this oddest of equity averages is hitting new all-time highs right now.

Signaling, if you ever doubted it, that the United States' economy is being re-forged as well.

But wait! If you think there's any link between the rise of the stock market and the health of the economy, then you might want to double-check the Dow's value in real inflation-adjusted Dollars.

Or better still, now that it's morning in America once again, adjust the Dow by the cost of eating your breakfast...

Alternatively, you could judge the Dow in terms of the stock market's dark, benighted opposite - a lump of gold bullion. Many people do, in fact. The Dow/Gold Ratio as it's known plots the value of the 30 Dow stocks in ounces of gold.

As you can see, the recent drop in gold bullion prices, plus the Dow's re-found vitality, have dented the stark trend of the last 13 years. ...

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Venezuela's Gold nationalization after Hugo Chavez

Some analysts accused that Venezuela's gold nationalization law was not written with the aim of developing a mining policy but rather with a political concept of mining.

 

CARACAS(BullionStreet): What would happened to Venezuela's gold nationalization in the post Chvez era is a multi million dollar question.

 

In September 2011, Chavez passed a law nationalizing all gold mining activity in the country and requiring private sector gold mining companies to form JVs with the state as the majority partner.

 

The untimely death of Hugo Chavez on Tuesday also raised many other questions as answers for the local mining industry, which was not immune to Chavez's penchant for nationalization.

 

Venezuela is now expected to hold presidential elections and the candidate that analysts see as likely to win is vice president Nicolas Maduro, who was verbally appointed by Chavez as his successor. 

 

Analysts said Maduro is unlikely to change any of his predecessor's policies in the short term. ...

 
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Leonard Melman: Are You Prepared for Hyperinflation?

Leonard Melman: Are You Prepared for Hyperinflation? | Gold and What Moves it. | Scoop.it

Source: Brian Sylvester of The Gold Report  (3/6/13)

 

As looming inflation, currency wars and a possible run on gold threaten to derail markets, Leonard Melman, author of The Melman Report, is setting his sights on the midtier and near-term producers that he wants to scoop up when the blood is in the streets. In this interview with The Gold Report, Melman explains why gold, silver and the companies bringing them out of the ground could do very well in the second half of 2013.

 

The Gold Report: You recently told a crowd of investors at Prospectors & Developer Association of Canada (PDAC) that precious metals are the best place to invest in an inflationary period. Why is that?

 

Leonard Melman: When prices are going up, you wouldn't want to be in housing stocks or auto financing, but you would certainly want to be in precious metals. You also might want to short the bond market. That is why you have to be aware of the direction of inflation. It is important to the concept of precious metals pricing. If you've been around for a few years, as I've been lucky enough to be, then you can easily recall a time when high inflation was the absolute key ingredient in massive previous bull markets. That is why I thoroughly look at what has led to past inflation and hyperinflation. I use four examples: the Roman Empire, the French Revolution in the late 1700s, the German hyperinflation in the 1920s and the recent catastrophe of hyperinflation in Zimbabwe. I examine whether America and other countries in the world are perhaps following the same paths that led to those previous hyperinflations.


TGR: Do you think investors are going to see hyperinflation in the foreseeable future?


LM: Not immediately. It's like a doctor looking at a patient who is showing all the early signs of cancer, but the actual tumor hasn't yet developed. It would be unwise to ignore those developing symptoms. That's where I think we are. We don't have hyperinflation yet, but many of the pathways that led to previous hyperinflations are present, and I think it would be very foolish to ignore them. ...

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Pento - The coming collapse is going to be worse than the last one.

Pento - The coming collapse is going to be worse than the last one. | Gold and What Moves it. | Scoop.it
Insight on the market action, with Zachary Karabell, River Twice Research President; Michael Pento, Pento Portfolio Strategies; Burt White, LPL Financial; and Matt Cheslock, Virtu Financial.
Hal's insight:

You'll need to click through for the video. Hat tip to www.grandich.com

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Jesse's Café Américain: Fiat Monetary Theory: The Gamblers

Jesse's Café Américain: Fiat Monetary Theory: The Gamblers | Gold and What Moves it. | Scoop.it

... As with most Ponzi schemes, modern fiat currencies are a matter of degree, belief, and tipping points.

There are always limitations in any system, and in paper money systems the debt must be balanced by real growth and investment, an organic growth that makes the rolling debt burden, which is really the basis of the money itself, sustainable and productive.    That growth must be broadly based in order to support consumption from within the system itself, and this implies income commensurate with increasing productivity.

The failure of every fiat currency has been tied to the abuse of power, in the non-organic use of created money not to increase the productive growth of the economy, but to establish monopolies, cartels, speculation, and of course, aggressive war, all in pursuit of the outsized enrichment of a relative few who define themselves as an elite.

And human nature being what it is, all paper money systems have failed within a few hundred years. ...

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First Record Dow, Then Record Gas And Grocery Prices | The Dollar Vigilante | Safehaven.com

First Record Dow, Then Record Gas And Grocery Prices | The Dollar Vigilante | Safehaven.com | Gold and What Moves it. | Scoop.it

Ben Bernanke must have been smirking and nodding smugly all day yesterday. The Dow hit an all-time high at 14,286 and closed at 14,253.77. What's even more impressive is that this is double where the Dow stood just four years ago. And it only took five and a half years and previously unmatched amounts of new money creation to do it.

 

The mainstream media would like you to believe the rising Dow is somehow tied to an improving economy. "Look," they say, "Housing and auto sales are rising...home prices are recovering...companies are hiring more...Even you skeptical radicals with your free market obsession have to admit that the central bank is doing the good it's supposed to do!" ...

 

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