Gold And Silver About To Make A HUGE Breakout?

Published here: http://goldsilverworlds.com/price/gold-and-silver-about-to-make-a-huge-breakout/

FOMC members keep on repeating, like a mantra, that the Federal Reserve wants to hike interest rates still in 2015. Although the media is ‘hanging on the lips’ of the FOMC and U.S. Fed, it seems that the market has some other thoughts. Whatever happens in the ivory tower of central planners, rate hike or not, their mantra is going on for 5 full years now. No surprise that the market is transitioning in a state of disbelief.

One of the consequences of the rate hike hype was the crash of precious metals prices in 2013. The market truly overreacted, and sent gold, silver and miners into a truly epic bear market state.

Meantime, it seems that the precious metals complex is stabilizing. Given the growing disbelief in the interest rate hike, even precious metals bears are leaving the arena. As explained earlier this week, the number of bullish gold indicators is growing rapidly, suggesting a trend change is close.

The above observation is also reflected in the longer term precious metals charts. Recent price action is becoming more and more constructive with Gold (NYSE: GLD), Silver (NYSE: SLV) and Junior Gold Miners (NYSE: GDXJ) all pushing against their downtrend lines. Chart courtesy: Short Side Of Long.

The above chart shows that a HUGE breakout is now becoming a real possibility, and that gold traders seem to be anticipating (or speculating) that FOMC won’t rise rates in 2015, as noted by Short Side Of Long. Furthermore, if the stock market and economy weakens, more and more of the commentary could turn towards dovish views of more QE easing. One thing is for sure, hedge funds and other speculators are definitely underinvested towards this sector, as evidenced by the following chart. A strong contrarian signal !

Source: shortsideoflong.com

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Gold Price Forecast: Goldbugs Could Have the Last Laugh in 2016

Published here: http://www.profitconfidential.com/gold/gold-price-forecast-goldbugs-could-have-the-last-laugh-in-2016/
Gold Price Outlook: This Could Send Gold Prices Soaring in 2016
Gold prices had a slight rebound last week, supported by the U.S. Federal Reserve’s decision not to raise interest rates.
The yellow metal has taken quite the beating in market trading this year, as expectations of a Fed rate hike continue to mount. Higher interest rates would mean that income-generating assets will become more attractive to investors than commodities such as gold and silver, which do not generate income but instead appreciate in value over time. This would then lead to uplift for the
The post Gold Price Forecast: Goldbugs Could Have the Last Laugh in 2016 appeared first on Profit Confidential.

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China Now Fifth in World Gold Holdings

Published here: http://www.zerohedge.com/news/2015-09-30/china-now-fifth-world-gold-holdings
In his article for Bloomberg Business Ranjeetha Pakiam takes a look at China’s recent accumulations in gold and how the country now compares in the world league table on gold holdings. He observes that there is a deliberate policy of increased transparency in China “as the country improves data quality, increases its presence in commodities trading and promotes the international role of the yuan”.

• China has overtaken Russia to become the country with the fifth-largest gold hoard
• China’s accumulation of physical gold is being tipped to continue by market experts
• Monthly reporting increases Chinese transparency after years of mystery

DAILY PRICES
Today’s Gold Prices: USD 1122.50, EUR 1000.08 and GBP 739.12 per ounce.
Yesterday’s Gold Prices: USD 1124.60, EUR 1001.16 and GBP 741.36 per ounce.(LBMA AM)

Gold in GBP - 1 month
Gold closed at $1127.50 yesterday with a $4.40 loss on the day. Silver was up $0.05 at close to $14.64, a gain of 0.34%. Euro gold fell to about €1002, platinum remained at $914.

IMPORTANT NEWS
Gold ends lower for third straight session – MarketWatchPlatinum Extends Slide to Lowest Since 2008 Amid Demand Concerns – BloombergPlatinum poised for worst quarter in seven years on Volkswagen scandal – ReutersAsia shares rally, but on track for worst quarterly loss in four years – ReutersTraders Flee Emerging Markets at Fastest Pace Since 2008 – Bloomberg
IMPORTANT ANALYSIS
Banks should be afraid, disruption of financial services has only just begun – The TelegraphWorld  set for emerging market mass default warns IMF – The TelegraphBritain’s buy-to-let boom is a growing risk to the economy, could spark a house price crash – MailOnlineObama Deifies American Hegemony — Paul Craig RobertsIt’s Time to Get Your Gold Out of the U.S. – Goldseek.com
Read more News & Commentary on GoldCore.com


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Gold For Cash Through A Pawn Shop

Published here: http://goldsilverworlds.com/physical-market/gold-for-cash-through-a-pawn-shop/

It was only a couple of years ago when ‘gold for cash’ was a raging trend in the Western hemisphere. With gold prices going through the roof, and the financial crisis creating great damage for quite some households, many people found their way to gold shops in order to exchange their jewelry for cash.
That trend started to fade when gold prices came down, and central banks globally intervened in financial markets with a flood of liquidity.
Meantime, the ‘gold for cash’ phenomenon is not very visible anymore in the streets. Online, however, there are still quite some places where individuals can sell their gold and silver bars / jewelry.
A common place to offer an individual’s precious metals is a marketplace, as there are many to be found on eBay, the largest marketplace worldwide. However, with the advance of the internet, products and services can be offered across many stores in search for the most competitive bid.
Another way to offer your metal or jewelry is through a pawn shop. As explained by Wikipedia, a pawn shop offers secured loans to people, with items of personal property used as collateral. The word pawn is derived from the Latin pignus, for pledge, and the items having been pawned to the broker are themselves called pledges or pawns, or simply the collateral.
It becomes even more interesting when looking across pawn shops for the most competitive bid. One of the players offering such a service is www.pawns.com who helps find the most convenient pawn shop offering the most money for your metal.
With gold and silver making a long term bottom, we believe prices will start rising from here. Whether they will reach their all-time highs remains to be seen, but as soon as precious metals prices are on the rise again, we expect gold and silver through pawn shops to gain in popularity.

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Negative Interest Rates And Cashless Society Are Theft

Published here: http://goldsilverworlds.com/money-currency/negative-interest-rates-and-cashless-society-are-theft/

Global Gold Switzerland talks to Thomas Bachheimer, expert in financial markets and President of the European chapter at the Gold Standard Institute. This is an excerpt from the Global Gold Outlook Report (subscribe here).

Return to national currencies in the EU

When it comes to currencies, one of the favorite topics that Thomas Bachheimer tends to analyze, he believes a return to national currencies is of great benefit to nations. What exactly are the benefts of ending the Euro?

Diferent nations have diferent economic systems and their economic cycles are not in sync. In order to be competitive, nations need free exchange rates so they can devalue or increase the value of their currency as deemed appropriate. This mechanism is not available in a rigid currency system such as the Euro. The surplus countries, such as Germany, and the ailing economies, such as Greece, both sufer because they cannot adjust the value of their currency. Picture a bicycle race in a mountainous terrain: Some cyclists will still be on level ground, while some others are on a steep incline and the advanced group might have already mastered the mountain. Now, imagine that all cyclists have only one gear and thus cannot adapt to the diferent circumstances. Some cannot accelerate on the plain and others cannot shift down gears to get up the mountain. All sufer and nobody benefts. This destroys the entire cycling team – or much worse, the entire Euro area!

The European states are moving towards a cashless society. If this is the way the ECB wants to go, they could use Greece as a test case for negative interest rates, which, by the way, are nothing but theft. The frst lowering of the interest rate due to an economic reason (Greenspan in July 1996) was theft and redistributed wealth away from labor towards capital (from the hard-working to the rich). All subsequent measures (the spiral of intervention) such as QE I- III, ESM, negative interest rates, etc. are only stealing from the defenseless people by those who have planned and managed this monetary system.

Unfortunately, this is like stealing from the peoples’ bank accounts to repay debts without diluting the Euro as a whole.

Oil should be traded in gold, not U.S. dollars

According to Thomas Bachheimer, we have limited resources of oil and an unlimited measurement through the currency that is used to trade it, i.e. the US Dollar. In other words, the amount of circulated US Dollars is increasing, while the amount of oil is dropping. Given that, oil should be traded in gold.

The rationale behind that idea is that we must not trade the most important commodity of the planet with the illusion of a currency that is increased without limit or rule. There is too much playing fast and loose going around with energy prices and consumers. Producers and the investors (in oil exploration and investments) were exposed to unstable circumstances. The pricing of the oil is unfair for most market participants. This is all done to support the illusion of a fat currency that dominates world trade. Therefore, something that is not increasable, honest and independent is needed. In my opinion, we don’t necessarily need gold. We just need something that enjoys the trust of market participants. Unfortunately, I don’t know any other commodity that fulflls the same characteristics based on emergence, extraction, storage, and stock-fow ratio.

Physical gold has strong global demand

Physical gold is flowing in large quantiaties from West to East, particularly China, India and Russia. Why are those countries accumulating physical gold, and are they heading for gold-based currencies?

It is clear to all interested parties, how much gold is moving from West to East. This development started in China. The country has strong economic growth, enormous domestic demand, great export opportunities, and since 2009 they started making a move towards gold. In the beginning, these developments were noticed by the West. However, it was not considered to be important. China has increased their gold reserves from 0.8% to 1.6%. That was not considered to be very much. Only the statement made by the then governor of the Chinese Central Bank, that gold holdings of other state entities could be taken over by the central bank in a matter of seconds, suddenly made people pay attention. Since China is the biggest producer of gold in some quarters, it means the Chinese are able to buy gold relatively unnoticed in the domestic market. It shows that they are serious. Despite being able to buy gold covertly, they gathered what was possible in the world-market. There are many numbers circulating. As a result, a serious estimate regarding the quantity of the Chinese gold reserves is not possible.

It has to be said at this point that China is making a clear step into the right currency direction. However, they do it with caution. They are gradually moving in that direction. However, it’s still a long way from having a gold standard. Nevertheless, they have begun.

Regarding the heartland theory or the Silk Road, we have to understand that China’s and other countries‘ gold will establish trust for the new development bank and therefore afect the future. With all due respect to this theory, I would like to close with the following old wisdom: “He who has the gold, makes the rules.” And the gold is in Asia. This continent will set the fortunes of the world in the 21st century and I believe the downfall of the USA is therefore sealed. We can just hope that the USA will be civil enough to push the reset-button like the USSR did 25 years ago.

Source: “Global Gold talks to Thomas Bachheimer” 

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Boehner Vows to Ram through More Deficit Spending

Published here: http://goldsilverworlds.com/economy/boehner-vows-to-ram-through-more-deficit-spending/
It’s campaign season, and that means non-stop media coverage of candidate polls, quips, gaffes, tweets, emails, controversies, lies, and scandals. It all makes for a good soap opera. Unfortunately, it’s almost all irrelevant in the big picture.
The media prefer to focus on the sideshow rather than the 800-pound gorilla in the room: the looming debt crisis. Nothing that comes out of a pundit’s mouth or a Hillary Clinton email will close the $210 trillion long-term fiscal gap the U.S. now faces.
More immediately, Congress faces a likely debt ceiling debacle in the next few weeks.
First up, Members of Congress are considering full funding for Obama’s budget, and the fiscal year begins October 1st. Not surprisingly, the Obama administration’s new budget calls for spending much more than the federal government will take in. So Congress will need to raise the statutory debt limit within a few weeks in order to make that spending possible.

Disgraced Speaker Boehner Vows to Ram through More Deficit Spending before Exiting

To their credit, fiscal conservatives have just forced Speaker John Boehner (R-OH), a proponent of runaway deficit spending, to announce his resignation. But Boehner is defiantly vowing to ram through Obama’s budget and a higher debt limit before his exit in 30 days.
Meanwhile, the chief Republican in the Senate, Majority Leader Mitch McConnell, recently called efforts to rein in Obama’s spending proposals “an exercise in futility.”
If enough members of Congress raise enough of a fuss, they can still prevent a debt limit increase from going through. But the Treasury Department says the “extraordinary measures” it’s taking will only keep the government funded into November. So the threat of a default are already getting played up by the Obama administration, its apologists, and the media.
But the debt ceiling drama isn’t the debt crisis that Americans should be most concerned about. There is a near 100% chance that the government’s borrowing limit will ultimately be raised – just like it has been every other time Congress faced the specter of default. Despite some tough talk, enough politicians can be counted on to capitulate just in time to spare the country from having a government that lives strictly within its means.
Assuming the debt ceiling is eventually raised, the move will make the coming debt reckoning that much bigger. Officially, the national debt now comes in at $18.1 trillion – about equal to the nation’s total economic output for a year. Adding in all projected unfunded liabilities brings the total to about $210 trillion, as calculated by economist Lawrence Kotlikoff.
Meanwhile, demand for U.S. debt obligations appears to be on the wane. China, formerly the largest holder of U.S. government bonds, recently trimmed back its Treasury holdings by more than $140 billion. It also boosted its gold bullion reserves.
This could be the early stages of a longer-term trend that would not bode well for the bond market. “If Beijing dumped hundreds of billions of dollars of Treasuries, U.S. yields would skyrocket,” warns Bloomberg View columnist William Pesek.
The world’s largest holder of Treasuries is now Japan. Japan itself is one of the world’s most indebted nations, making its leveraged Treasury position precarious. How much longer will the Japanese be able to continue issuing debt in yen in order to fund purchases of dollar-denominated Treasuries?
And who will be able or willing to fill in the void left by waning demand from Japan and China? Europe is broke, and most of the rest of the world’s countries are too small, too poor, and/or too indebted to be a major financier of Uncle Sam’s massive spending habits. It’s difficult to see private investors flooding into Treasuries en masse without the incentive of significantly higher real interest rates.

The Fed Is Eager to Buy Government Bonds with Negative Real Yields

The problem is that the government’s financing model depends on issuing debt with a negative real yield – which is to say, an interest rate below the actual rate of inflation. The only institution with an outsized appetite for bonds that sport negative real returns is the Federal Reserve (whose balance sheet has swelled from $1 trillion to $4.5 trillion since the 2008 financial crisis). The Fed is Uncle Sam’s lender of last resort and has been the great enabler of runaway debt spending.
Since 1971, the federal government has failed to run a balanced budget 91% of the time. It’s no mere coincidence.
As financial analyst Mike Patton tells Forbes readers, “In July 1971, President Nixon ended the right to convert U.S. currency to gold and caused what became known as the ‘Nixon Shock.’ Without a gold standard, there was nothing to back the dollar, and the door was opened for increased Congressional spending.”
Absent a return to sound money and a gold standard or some other form of independent, objective restraint on Congress and the central bank, there’s little reason to believe a debt crisis can be averted. The temptation to paper over excess spending with excess currency creation is simply too great.
As the debt grows and the currency supply grows along with it – both at higher rates than the rate of economic growth – the debt crisis will likely morph into an epic inflation crisis. Prepare accordingly.

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Gold and Silver, Good and Bad Choices

Published here: http://goldsilverworlds.com/investing/gold-and-silver-good-and-bad-choices/
A few bad choices come to mind:

• 1971: President Nixon refused to exchange dollars for gold subsequent to August 15, 1971. He claimed it was “temporary” and blamed speculators. Gold prices and inflation soared.

• Mid-1990s: The Federal Reserve dramatically increased debt and the money supply and encouraged the NASDAQ “dot.com” bubble. The bubble crashed in 2000 and destroyed $Trillions in assets and retirements. Investors preferred stocks and bonds until after they crashed. Gold and silver soared after 9-11.

• 2001: “Unknown” people created the 9-11 disaster. That event became the excuse for the Patriot Act and wars in Iraq and Afghanistan. History shows that a number of empires collapsed following their attempts to conquer either Bagdad or Afghanistan. American foreign policy chose to ignore history and invade both. The costs have been outrageous with questionable results. Gold doubled and silver prices tripled between 2001 and 2006.

• 2004 – 2008: Banks and politicians encouraged the real estate bubble with easy money, “liar loans,” various derivative products, and delusions such as “real estate always goes up.” The real estate market crashed and partially caused the 2008 financial collapse. Pension underfunding, welfare expenses, food stamp participants, disability income, and the number of workers no longer in the job market have increased since then. Gold doubled and silver prices tripled between 2004 and 2008.

• 2009 – 2015: Hope and change, QE, and ZIRP have been disappointing. Those Americans in the bottom 90% are still hoping for better days but expecting little change. ZIRP has destroyed earnings from savings, damaged pension funds, and encouraged mal-investment. More ugly consequences of both QE and ZIRP will manifest in the next five years. Gold and silver will soar in the next 2 – 5 years.

The common elements in those “BAD CHOICES” were:

• Increased debt;
• Politicians;
• Bankers;
• And good timing for purchases of gold and silver.

Good Choices:

• 1971: Buy gold at $42 and silver at $1.50
• 1999: Buy gold at $280 and silver at $5.00
• 2001: Buy gold at $260 and silver at $4.15
• 2008: Buy gold at $800 and silver at $9.00
• 2015: Buy gold at $1,100 and silver at $15.00

Of course we can point to many other bad and good choices over the past 45 years. Buying gold in early January 1980 and for much of the next 19 years was probably a bad choice, so do your own research to make good choices. While trading paper currencies for gold is, in my opinion, currently a good exchange, it is not always a good choice.
SUGGESTIONS:

• Physical gold and silver instead of unbacked debt based fiat currency.
• Physical gold and silver instead of bonds that will eventually default.
• Less foreign military involvement instead of more wars, expanded military actions, and the resulting increased taxes and inflation.
• A 3^rd party not owned by bankers and the military instead of a Republicrat or a Democan.

Make your own choices. Consider real money, not the digital and paper stuff.


Gary Christenson | The Deviant Investor

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Silver Price Forecast: Yuan Devaluation Could Send Silver Prices to $50

Published here: http://www.profitconfidential.com/silver/silver-price-forecast-yuan-devaluation-could-send-silver-prices-to-dollar-50/

Yuan Devaluation Bolsters Silver Price Outlook
Although silver prices have been in decline since 2011, the yuan devaluation will likely lift precious metals to untold heights. Silver investing is a tough business. And fears of a U.S. dollar collapse in 2016 are pushing investors back towards hard assets like silver.

It may be tough to imagine silver rebounding after the rout it’s had. The grey metal is down more than 70% from its previous high in 2011—a long tumble that could shake anyone’s confidence. But there are some encouraging developments.

The post Silver Price Forecast: Yuan Devaluation Could Send Silver Prices to $50 appeared first on Profit Confidential.

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http://info.goldcore.com/how-to-store-gold-bullion-the-seven-key-must-haves-in-2014

Published here: http://www.zerohedge.com/news/2015-09-29/httpinfogoldcorecomhow-store-gold-bullion-seven-key-must-haves-2014

This is a very important story and shows how China and Russia are increasingly close and strong allies who are flexing their muscles and asserting themselves as rival superpowers to the U.S. 

The Chinese are very aware of the importance of symbolism and this appears to be a subtle show of allied force and underlines the strength of their deepening alliance with Russia.

The Waldorf-Astoria New York (Commons.wikimedia.org)

Xi Jinping & President Obama (Reuters)

[Excerpt]

Chinese President Xi Jinping leaves the White House, where he discussed the theft of commercial secrets, and heads to New York to check in tonight at the Waldorf Astoria, where his privacy is sure to be guaranteed by the hotel’s new Chinese owners.

On Sunday, Xi will be joined by Russia’s Vladimir Putin, who also picked the Waldorf for his first stay in Manhattan in a decade, according to diplomats preparing for the Eurasian leaders’ address to the annual seven-day session of the United Nations General Assembly.

Read more on the GoldCore.com blog

 

DAILY PRICES

Today’s Gold Prices: USD 1124.60, EUR 1001.16 and GBP 741.36 per ounce.
Yesterday’s Gold Prices: USD 1137.60, EUR 1016.26 and GBP 747.23 per ounce.
(LBMA AM)

Gold in USD – 1 Month

Gold ended with a loss of 1.29%, while silver slipped to as low as $14.51 and ended with a loss of 3.25% yesterday. Euro gold fell to about €1008 and platinum and palladium were also weaker.

 

IMPORTANT NEWS

Swiss Regulator Names Seven Banks in Precious Metals Probe – Bloomberg
Swiss probe 7 banks over precious metals trading – MarketWatch
Gold ends with its largest daily drop in nearly 3 weeks – MarketWatch
Stocks Fall After $800 Billion Equity Wipeout Boosts Yen, Bonds – Bloomberg
European Stocks Slide for Second Day to Inch Toward Bear Market – Bloomberg

IMPORTANT ANALYSIS

Bank of England floats cashless trial balloon – MoneyWeek
UBS Is About To Blow The Cover On A Massive Gold-Rigging Scandal – ZeroHedge
Bank of England investigated for rigging markets, covering up for banks – GATA
Putin: Do you realize what you have done? – CNBC
5 things that keep Carl Icahn up at night – CNBC

Read more News and Commentary from GoldCore.com

 

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Gold’s Trend Change: 7 Bullish Indicators

Published here: http://goldsilverworlds.com/price/golds-trend-change-7-bullish-indicators/

It is getting very exciting in the gold market! We have shown several bullish gold indicators in the last couple of weeks. Here is the thing: the number of bullish indicators keeps on growing.

First, GLD ETF, the largest exchange-tradable gold ETF, has the lowest put-to-call ratio since 2012, right after the failed attempt of gold to break through its all-time high. Chart courtesy: Bloomberg.

 

Second, the number of short positions in GLD ETF has reached long term lows. Although we are not able to show the long term chart, as it is protected material by shortsqueeze.com, we can pull up the following table. Note how the latest update from this week points to a 10% decrease of shorts compared to two weeks ago.

 

Next, the COMEX futures market shows historically low short positions by commercial traders. Readers know meantime that we attribute a high importance to this indicator, although we believe it is not a ‘stand-alone indicator.’ Next to that, mainly extreme positions carry a predictive value.

Earlier this week, we showed the 3-year COMEX chart. The 9-year shows an even clearer picture. Chart courtesy: Sharelynx.

 

 

Note how the dynamics in the COMEX market are ready for a trend change. During the uptrend, shorting power from commercial traders topped at a certain level, and increasingly less shorting power was required to turn prices lower.

During the downtrend, however, the opposite has taken place: each subsequent extreme position in commercial short positions has lead to marginally lower lows. This trend points to changing market dynamics.

At these low price levels, the number of bullish indicators keeps on growing, and that points to a trend change.

More proof is to be found in the gold miners. The mining sector is another leading indicator for the precious metals complex. Today, we are witnessing a bifurcated gold mining sector, with a couple of names outperforming in a truly explosive fasion.

Let’s summarize our 7 favorite BULLISH indicators in the gold market:

1. Quality gold miners are strongly outperforming their peers, pointing to bifurcation in the gold mining sector.
2. Shorts in GLD ETF have reached the lowest levels in years.
3. The ratio of put-to-call options in GLD ETF is as low as in 2012, right after gold’s all-time high.
4. Commercial traders in the COMEX gold futures market are at historically low levels, with marginally lower lows in the gold price.
5. The gold to S&P 500 ratio is not declining anymore.
6. Gold sentiment is so horrible that it reached truly contrarian levels.
7. With stock and bond markets peaking, the alternatives for gold investments are becoming considerably less attractive.

Source: SecularInvestor.com – Get the free gold guide

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Gold Miners: The Ultimate Contrarian Investment

Published here: http://goldsilverworlds.com/stocks/gold-miners-the-ultimate-contrarian-investment/

Let’s discuss one of the most oversold and hated investments in today’s financial market conditions – Gold Mining equities (NYSE: GDX).

Performance over three and twelve month time frames, together with sentiment and breadth readings, all indicate that the mining shares are most likely ready for a relief rally. Furthermore, the price of the mining equities has recently tested a major support level dating all the way back to year 2000. There should be buying interest right here and that is clearly seen by sky high volume in various ETFs such as (NYSE:GDX).

Returns have been quite awful to say the least, which from a contrarian perspective gives investors a chance to bet on a short term bounce, if not a long term rebound. Conditions in the Precious Metals sector are very much depressed from the historical basis, as evidenced by the following two charts.

Firstly, the 3 year compound performance for Gold Miners is now at record low levels, which we haven’t seen since the index floated in middle of 1980s. Shockingly, the mining stocks have lost almost 40% every year for the last three years running. That is some serious selling pressure, to say the least.

Gold mining compound returns over the last 3 years are horrific

Secondly, we have already discussed how Silver has lost 70% over the last 4 years. When priced in Gold (relative price), the metal has recently hit the ratio of 80 and testing very important some historical support zones.

At level of 80 Silver has become extremely cheap relative to Gold

Source: shortsideoflong.com

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Buy Gold While You Still Can!

Published here: http://www.zerohedge.com/news/2015-09-28/buy-gold-while-you-still-can

In part 1 of his 2 part report on the ever-tightening supply of physical gold, Chris Martenson describes the fascinating data that “reveals the extent of the West’s massive dis-hoarding of physical gold”. He points out the enormous and growing disconnect between the cash and physical markets for gold which, as he explains, has major repercussions for physical gold storage.

Martenson also describes how the Fed watches the price of gold very carefully, regarding it as a “golden thermometer” of market sentiment.

An important update on the supply of physical gold
by Chris Martenson

One of our long-running themes here is that the truly historic and massive flows of gold from West to East is (someday) going to stop, for the simple reason that there will be no more physical bullion left to move.

It’s just a basic supply vs. demand issue.  At current rates of flow, sooner or later the West will entirely run out of physical gold to sell to China and India.  Although long before that hard limit, we suspect that the remaining holders of gold in the West will cease their willingness to part with their gold.

So the date at which “the West runs out of gold to sell” is somewhere between now and whenever the last willing Western seller parts with their last ounce.  As each day passes, we get closer and closer to that fateful moment.

Read more on Chris Martenson’s PeakProsperity

 

DAILY PRICES
Today’s Gold Prices: USD 1137.60, EUR 1016.26 and GBP 747.23 per ounce.
Friday’s Gold Prices: USD 1145.50, EUR 1027.63 and GBP 752.18 per ounce.
(LBMA AM)

Gold in EUR – 1 Month

Gold closed at $1146.60 with a 0.61% gain on the week.  Silver closed at $15.08, down $0.05 and down just 0.46% for the week.  Euro gold fell to about €1023 and platinum lost $7 to $945.

Read more on the GoldCore.com blog

IMPORTANT NEWS

Gold steady after earlier losses amid worries over U.S. rate hike timing – Reuters
Gold ends lower, but posts a gain for the week – MarketWatch
Gold eases as Yellen remarks on rates boost dollar – Reuters
Gold Bears Grow Weary as Options Ratio Drops to Three-Year Low – Bloomberg
Banks Discuss Shifts to How London Gold Traded for 300 Years – Bloomberg

 

IMPORTANT ANALYSIS

A Comex Bank Run For Scotia Mocatta – TF Metals Report
In cash we trust – abolish it and you invite tyranny – Financial Times [paywall]
Congress and the Fed Refuse to Learn From Their Mistakes – Ron Paul Institute
What If This Retail Silver Investment Shortage Doesn’t End? – SilverSeek.com
Thoughts from the Frontline – Balloons in Search of Needles – GoldSeek.com

Read more News & Commentary on GoldCore.com

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Divergence Drivers and the Dollar

Published here: http://www.zerohedge.com/news/2015-09-27/divergence-drivers-and-dollar

The main thrust of our bullish US dollar outlook is the divergence in monetary policy trajectories. We do not think the divergence has peaked and anticipate it to persist through next year and into 2017.   

 

Since the Federal Reserve finished QE3, the divergence has been driven by easing of policy by the European Central Bank and the Bank of Japan, and a broad number of high and medium income countries, including China. We expect the Fed to participate in the divergence by raising rates.  It has been particularly challenging this year to time the Fed's lift-off, but the vast majority of Fed officials still anticipate it taking place this year. Of course, some doubt this, and a few Fed officials prefer to wait until next year, but fund managers, corporate treasurers, pension managers and debt managers recognize the risks of a move this year.  And investment is just as much about risk management as it is about securities analysis.  

 

We thought it helpful to frame this week's discussion about the macro-developments in terms of the divergence meme.  On balance, we expect the developments in the week ahead to strengthen the theme.  Barring a surprise, which is always possible, the key US economic data is expected to to show that labor market slack continues to be absorbed, the core PCE deflator may tick up, and the consumer is still healthy in terms of real consumption and new auto sales.   

 

No fewer than eight Fed officials have speaking engagements in the week ahead.   Aside from Chicago Fed's Evans, we would be surprised if any of the speakers disagreed in tone or substance from Yellen's remarks from last week.   

 

On the other hand, the eurozone's preliminary read of September CPI may ease back to zero from 0.1% while the manufacturing PMI softened.  The ECB staff cut its growth and inflation forecasts earlier this month.   While ECB officials have indicated that it is still monitoring developments to understand if the flexibility of its asset purchases is necessary.  Evidence needs to accumulate, and that evidence is largely in the form of economic data.   The economic reports paint a picture of a region that is expanding by a little more than 1% annualized pace with no price pressures. The growth is too slow and inflation too low to allow the region to grow from under its debt burden. 

 

Before the weekend, Japan reported that August core inflation (excludes fresh food) slipped back into deflation for the first time since April 2013.  The government downgraded its economic assessment last week.   The Tankan Survey this week is expected to show minor deterioration in sentiment among the longer companies, and a somewhat more worrisome slowing in capital expenditure intentions.   

 

If there is one thing missing from a compelling case of further measures by the BOJ, it is an apparent lack of will. Governor Kuroda has consistently found a silver lining in the cloud of economic and price developments.  He pragmatically does not limit his assessment to the targeted core measure.  Instead, he has referred to price pressures being significantly stronger if energy prices were excluded.  

 

It is not clear that what an increase in the monetary base of say JPY90 trillion a year will accomplish that JPY80 trillion has failed to do to, namely core consumer prices.    Nevertheless, many expect the BOJ to announce expanding is asset purchases, not just altering the composition for operational reasons, next month.   The Tankan survey will not stand in its way if that is what it wants to do. 

 

Sweden has responded forcefully to the threat of deflation by buying government bonds and posting a negative deposit rate.  Its economic activity remains impressive with a 3% year-over-year expansion in H1.  The manufacturing PMI this week is expected to increase from 53.2 to 54.0, which would match the 12-month average.  

 

In contrast, Norway's challenge is weak economic activity, not deflation.  That was what was behind last week's rate cut that surprised many.  The manufacturing PMI has been below the 50 boom/bust level since April.  The risk lies to the downside of the Bloomberg consensus 44.0 reading (from 43.3).  The Norges Bank signaled an easing bias.  It may take a few months to act on it, but unless the data turns around, that is the most likely scenario.  

 

The Bank of England is also wrestling with the timing of its own lift-off.  The same logic that says the Fed may have missed its best opportunity to hike when it stood pat in June suggests the BOE missed its best opportunity as well.  Although the Q2 GDP revisions are not expected to be material, the UK economy does appear to have slowed in Q3.  The UK expanded average 3% growth in H2 14, and 2.75% growth in H1 15, it is set to slow toward 2.3% in the second half.  There is no pricing power, inflation, to speak of, and the wage pressure appears, at least partly, to reflect a shift in the composition of employment.  

 

Indeed, sterling has lost favor as the pendulum of market sentiment has swung away from an early BOE hike.  In fact, looking at the June 2016 short-sterling futures contracts, the hawkishness peaked in late June with an implied yield 113 bp.  On September 24, the implied yield made a new life-of-contract low (high in price) of 71 bp.  

 

Given the developments over the past couple of months, investors are particularly sensitive to developments in China.  In the week ahead the official PMIs will be reported.  If the monetary and fiscal stimulus that China has deployed can be expected to help the large state-owned sector, than the official PMI may begin to stabilize before the Caixin measure, which tends to give more weighted to smaller, private sector firms. 

 

The Shanghai Composite has spent the past four weeks chopping along the trough after falling by around 45% from the mid-June high.  As it has moved broadly sideways, its impact on other markets appears to have lessened.   However, a break of the lower end of the range, around 2980, could have a new knock-on effect.  

 

China is very much part of the divergence story, which is one of the reasons it is succumbing to the pressure to loosen the link between the yuan and the dollar.  It was not ideology, or a new passion for markets, it was good, old pragmatism.  Linking the yuan so tightly to the dollar had become increasingly a headwind while the operational conditions for joining the SDR required some tweaking of its currency regime.   

 

We continue to believe the capital outflows from China are being exaggerated.  Some of the missing capital may reflect the reform measures that allow businesses greater control over their foreign exchange earnings.  Often the decline in China's reserves are cited as if it were simply a quantity of money rather than the dollar valuation of some quantity.  More than half of the decline in China's reserves over the past year can be accounted for by valuation swings.   

 

Nevertheless, the capital outflows that do exist, suggest that a further embrace of market forces could see the yuan lag further behind the dollar in the next leg up.   With soft non-food prices, there is still plenty of scope for the PBOC to ease further, including the reserve requirements, which were a macro-prudential tool to syphon-off some of the hot money that had flowed into China previously.  

 

There are a couple of other issues that will command attention.  First is the risk of a US government shutdown, if a clean temporary spending authorization bill is not passed. by the end of the month.   House Speaker Boehner's resignation as of the end of next month gives the Republican moderates an upper hand, albeit only for a few weeks.  The mid-December debt ceiling has more disruptive potential, and Boehner's replacement may need to be bloodied by confronting the White House early in his tenure.  

 

Second, another "last" push for the Trans-Pacific Partnership (TPP) will take place this week (in Atlanta).  There are three major outstanding issues that remain divisive: dairy trade, auto manufacturing, and patent protection for pharmaceuticals.   Each passing month without an agreement pushes the issue deeper into the US national election.  Even if an agreement is reached in the coming days, which seems unlikely, Congressional support, even on the fast-track conditions, would not place for a few months.   It could split the Democratic Party.  A Biden campaign would, of course, be in favor while Clinton's base would push her away from support, and Sanders is a clear critic.  

 

Third, Europe is being challenged by a number of crises simultaneously. Russia/Ukraine is simmering while a new front has been opened by Russia escalated support for Assad.  The refugee problem, primarily from Libya and Syria, where the US and European involvement has been strong is exposing new fissures in Europe and deepening pre-existing ones.  Greece has returned Syriza to power, and implementation of the agreement with the official creditors will likely be seen as a new phase of negotiations. To this list add politics in the Iberian Peninsula.

 

Catalonia holds elections today (September 27).  Locally the election is being billed as a referendum on independence, and the head of Catalonia promises independence within 18 months if his coalition of secessionists’ win.  Early indications suggest the turnout is heavy.  The secessionists will be fought tooth and nail by Madrid, which can count on the EU and other countries for support.    A tense period lies ahead, and this is before national elections that will be held before the end of the year.   

 

Portugal will hold national elections next month.  Regardless of the electoral outcomes, we anticipate that next year, the IMF will step up its pressure on both Spain and Portugal to take more measure to boost growth potential while reducing debt.

 

The takeaway is that the near-term developments will likely strengthen the divergent forces.  Barring a particularly poor employment report (and remember that the August series is often revised up), the Fed will be guiding market expectations to still expect a hike this year.  European, Japanese, and Norwegian data will add to pressure to ease further.  The failure to reach an agreement on TPP may be dollar and yen negative if everything else could be held constant, meaning that it could be overwhelmed by the usual market noise.   Europe is facing several challenges, and a new front may open as Catalonia likely pushes harder for independence.  

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The Doomsday Vault Was Opened For The First Time Ever!

Published here: http://www.zerohedge.com/news/2015-09-27/doomsday-vault-was-opened-first-time-ever

Source: wrsc.org

Earlier this week, there was a shocking revelation the so-called ‘doomsday vault’ in Norway had to be opened for the very first time. Just 1,300 kilometers north of the arctic circle on one of the Norwegian islands of Spitsbergen, an underground vault is keeping millions of flower, plant and crop seeds in inventory to protect the world from sudden shocks.

The vault is located in/under a frozen mountain on one of the Spitsbergen islands and as the designers really seemed to have a long-term vision, even melting ice caps would ensure the vault remains above the elevated sea level.

Once again it’s great to see how Norway tries to be as independent as possible, as not only does its sovereign wealth fund have hundreds of billions of dollars to safeguard the wealth and prosperity of the country, it also is the only country having a very long-term vision as it has funded the entire construction cost  (and operating expenses) of a polar vault only used to store crop seeds. This should ensure the country (and by extrapolation the entire world) to be able to re-plant certain crops in the event of a total disaster.

Source: Croptrust.org

And that’s what’s important here. The vault was originally created to ensure the world population would always be able to have access to certain species even after a huge catastrophe and a nuclear war. In other words, this was the final rescue method before some species (or the human race) gets annihilated, hence the description of it being the ‘Doomsday Vault’.

And now the vault has been cracked for the very first time for a, with all due respect, relatively small crisis in Syria, which isn’t even a farming superpower? Why couldn’t Russia supply seeds? Or neighboring countries in the Middle East?

Source: alicefeng.net

And the total amount of seeds withdrawn isn’t really negligible either. Approximately 15% of the total inventory will be drawn down and whilst one would think the reserve will return to normalized levels, it’s baffling to see that even a small local problem is a good enough reason to loot the strategic reserves.

This would make one wonder whether or not this is another test for the mainstream media to gauge the average sentiment. In just 14 months we have seen numerous attacks from Russia in the Eastern part of Ukraine, a passenger jet that was shut down over the same region, and now hundreds of thousands of ‘refugees’ are invading Europe. They don’t go to the surrounding muslim countries, no, the refugees are going to Europe; another test of the Western mainstream media to find out how the public opinion is being steered.

And the test seems to have been succeeded. We dare to bet you didn’t know about the raid on the Doomsday Vault at all.

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Weekly Gold Market Review For September 25th

Published here: http://goldsilverworlds.com/investing/weekly-gold-market-review-september-25/

In his weekly market review, Frank Holmes of the USFunds.com summarizes this week’s strengths, weaknesses, opportunities and threats in the gold market for gold investors. Gold closed the week at $1,145.89 up $6.87 per ounce (0.60%). Gold stocks, as measured by the NYSE Arca Gold Miners Index, lost 3.13%. The U.S. Trade-Weighted Dollar Index gained 1.35% for the week. Junior miners outperformed seniors for the week as the GDM Index lost 3.13 percent, more than the S&P/TSX Venture Index’s loss of 1.53%.

Gold Market Strengths

Palladium was the best performing precious metal, rising 9.46 percent for the week. Volkswagen’s emissions scandal opens up the possibility that buyers may turn towards gasoline cars which use more palladium.

China’s net imports of gold from Hong Kong increased last month as the surprise devaluation of the yuan and inventory building before the peak consumption season spurred buying. Net purchases rose to 54.7 metric tons from 40.7 tons in July and 25.6 tons a year earlier. Gold purchases in India are poised to climb in the final quarter to the highest level since 2012, adding to signs that lower prices are spurring a resurgence of buying in Asia.

Gold traders are bullish for a second week on the view that the Fed is to remain dovish. Further, the put-to-call ratio, which represents the number of bearish options trading, compared with bullish ones, for SPDR Gold Shares is at the lowest since 2012. This is seen as a signal bears may be losing their stranglehold on the market.

Gold Market Weaknesses

Fed Chair Yellen dealt a blow to gold bulls who had pushed prices to the highest in a month. On Thursday after the market close, she said the Fed is on track to raise interest rates this year. Investors had boosted holdings in gold-backed funds to the highest in three weeks.

Platinum was the worst performing precious metal, falling 3.36 percent for the week on concern that there could be a substantial drop in platinum usage if consumers buy fewer diesel cars as a result of the Volkswagen scandal.  Share prices of South Africa’s platinum miners fell 16 percent for the week on average.

President Jacob Zuma surprised everyone this week when he redeployed the existing minister of the Department of Mineral Resources, Ngoako Ramathodi, to the role of Minister in the Department of Public Services and Administration. In his place, Zuma appointed Mosebenzi Zwane. The appointment of Zwane comes as a surprise to the industry and organized labor based on his lack of experience in mining, especially when compared to the current deputy minister.

 

Gold Market Opportunities

Morgan Stanley, Bank of America, and Citigroup are among banks that have lowered their dollar forecasts against the euro during the past two weeks. The U.S. Dollar Index has gained 0.9 percent this quarter, compared with estimates for a 2.5 percent increase. UBS also came out with a report in which they cite excessive optimism on the dollar. Their conclusion is that we could be on the cusp of a weakening dollar trend.

Jeff Christian, founder of CPM Group, announced at the Denver Gold Show that he is bullish on gold, albeit not seeing a significant rise until perhaps 2018. CPM Group analysis sees global new mined gold output continuing to rise by small amounts until 2017. Subsequent to 2017, the dip in supply will allow fundamentals to kick in, pushing the price of gold substantially higher.

A new report by UBS highlights their constructive stance on gold, especially over the longer term. The report talks about relevant factors that investors should start to consider today, especially in light of the dovish Federal Open Market Committee (FOMC) outcome. One of those factors is the possibility that U.S. equilibrium real yields settle lower versus previous cycles and versus current market expectations. That could suggest a better environment for gold than what gold market participants are currently anticipating.

 

Gold Market Threats

According to a recent report “Unwinding the Great Liquidity Cycle” by Julien Garran from Macro Strategy Partnership, the decline in global foreign exchange reserves at central banks is today almost twice as aggressive as during the Great Recession. The implications are a reversing bid for U.S. treasuries and credit when the Fed does not want interest rates to rise aggressively should there be a policy mistake.

In that same report, Garran also takes a look at the global money supply and concludes that it doesn’t shrink often, but when it does, as we see today and in the prior global financial crises, it spells trouble for global risk assets. That raises the possibility that treasuries have been such a beneficiary of the great liquidity cycle that they have lost their ability to rally during a deflationary bust. After all the Fed has stopped buying, banks are being forced to reduce repo purchases with more regulation, and foreign central banks are net sellers.  Garran recommends that investors be positioned short U.S. equity indices, long cash and long gold & gold equities.

A worrisome trend coming from presenters at this year’s Denver Gold Show is the slashing of exploration budgets, particularly by junior miners. This has implications for gold production sustainability given long discovery-to-production cycles, currently pegged at 27 years and growing due to an increasing regulatory-social-environmental gauntlet.

 

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3 Top Silver Stocks to Watch in 2016

Published here: http://www.profitconfidential.com/stock/3-top-silver-stocks-to-watch-in-2016/

I don’t think any investor is holding out for a bull run in silver or other precious metals in 2015. Thanks in part to rising interest rates and a weak economic outlook. But 2016, on the other hand, is a whole different matter. Now is the perfect time to look for the top silver stocks to watch in 2016.
Silver Prices Remain Bearish for 2015
Trading at a six-year low, silver is set to end 2015 down for a record fourth year in a row. While there may not be a lot of reasons to have silver and other precious metals on your radar right now, 2016 could be a whole other

The post 3 Top Silver Stocks to Watch in 2016 appeared first on Profit Confidential.

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Gold Outlook: Bears Showing Signs Of Fatigue

Published here: http://goldsilverworlds.com/price/gold-outlook-bears-showing-signs-of-fatigue/

Bloomberg reports today an extremely interesting insight from the options market. Based on data compiled for SPDR Gold Shares (GLD) by Bloomberg, the put-to-call ratio, or the number of bearish options trading compared with bullish ones, is at the lowest since 2012. “The open interest on puts fell to the lowest since mid-July on Sept. 21, signaling bears may be losing their stranglehold on the market.”

These data show that gold bears are finally showing signs of fatigue, if options trading is any indication.

Chart courtesy: Bloomberg

This drop comes two months after bullion dropped to a five-year low. Meantime, the narrative surrounding gold remains that an interest rate hike will put additional pressure on bullion prices. Although we do not exclude such an outcome, we firmly believe that the real interest rate is the key determining factor, i.e. interest rates combined with inflation rates.

As suggested by Richcomm Global Services, today’s “sell-off” in gold is most likely on the clarity from the Fed on a rate hike in December. “It’s clear from (Yellen’s) talk that the Fed paused in September only for the global markets’ sake. Commodities, especially bullion, should extend their sell- off.”

Meantime, UBS bank came out earlier this week with a constructive outlook on gold. In a note to their clients, the bank explained three factors which point to an over-reaction in the gold market.

“First, based on internal models of UBS, it would appear that US equilibrium real rates may settle lower versus previous cycles and versus current market expectations. Second, the bank thinks that the bulk of the adjustment to the current and expected macro environment has already taken place. Third, supply and demand fundamentals suggest that the gold market is nearing equilibrium.”

Could it be that the options market has figured that the market reaction on an interest rate hike has been fully priced in meantime?

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Gold Price Outlook After Yesterday’s Rally

Published here: http://goldsilverworlds.com/price/gold-price-outlook-after-yesterdays-rally/

Gold rallied strongly yesterday on a safe haven bid amid stock market turmoil. As the stock market was sinking lower, moving closer to its August lows, gold and silver in USD moved more than 2% higher.

More interestingly, gold miners rallied more than 5% on the day.

The million dollar question is where we go from here. Let’s look at two charts to get an idea of gold’s and the miners’ outlook.

Chart-wise, the price of gold pierced a key resistance level at $1,150 USD/oz, which, until July of this year, was acting as a key support area.

Chart courtesy: StockCharts.

More importantly, the price of gold is sitting right on the trendline of triangle formation.

This is an important price level. If gold moves higher from here, we have a confirmed breakout.

A breakout is an outcome with a high probability, based on the COMEX gold positioning (as reported in the COT report, see below).

Chart courtesy: Sharelynx.

As we have said in the past, the net short positioning of commercial traders (blue bars in the center pane) is an important indicator. Every time that group of traders has held an extremely low net short position, gold tended to put in a multi-month bottom, followed by a multi-month rally.

The leverage that gold and silver miners in a breakout scenario will be huge.

The analyst team at Secular Investor has calculated valuations of quality gold miners, and they concluded that today’s situation is truly ridiculous.

Read more about Secular Investor’s gold and silver premium service, yesterday’s Alert about a junior gold miner with a calculated target price which is many multiples of today’s price, a Selection List of favorite gold and silver stocks.

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Premiums Rise and Delivery Delays Increase on Silver Coins and Bars

Published here: http://www.zerohedge.com/news/2015-09-25/premiums-rise-and-delivery-delays-increase-silver-coins-and-bars

Silver bullion coins are continuing to see rising premiums and delivery delays due to continuing very robust demand and a lack of supply of all silver bullion coins.

Premiums on silver eagles have been creeping up since mid-May (see chart below) and wholesale premiums have risen from 14% in May to over 25% this week. Silver eagles remain probably one of the best proxies for silver coin demand and also of investment and store of wealth demand for silver.

Sharelynx.com

The shortage of silver coins is due to continuing robust demand and a lack of supply of silver bullion coins. It is primarily due to a lack of coin minting capacity and of actual coin blanks or planchets.

At the same time, it should be noted that premiums are not far above the level seen in 2013 when they went over 22%. Indeed, at the height of the financial crisis in late 2008, premiums on silver eagle coins surged over 70%  (see chart below) due to sharp fall in the silver price after the Lehman collapse and the very high silver demand seen at the time.

The U.S. and Canadian Mints are rationing supply and wholesalers are waiting on allocations. For a second week in a row, the U.S Mint has reduced its weekly allocation of silver eagles – limiting sales of the silver coins since their return after temporarily selling out in July.

The allocation this week fell to 750,000 eagles, which is a large over 7% reduction at a time of high demand and delivery delays in the market. Last week’s allocation dropped by 19% to 809,500 coins from the prior week’s supply of 1 million coins. The opening week of September also saw a rationing of just 1 million coins.

These weekly inventories have been snapped up almost immediately. In the last two weeks, all available Eagles were bought in just two days.

Note: Given continuing and deepening delays for certain popular bullion coins and bars and rising premiums we believe it is important to keep our clients and subscribers aware of the most up to date premiums and availability. The prices quoted are indicative and can change at any time. The premiums quoted are for smaller orders and there are volume discounts and lower premiums on larger orders.

American Silver Eagle sales at 34,304,500 for the year continue to run at a record pace, up nearly 15% through the same time last year. In 2014 when Silver Eagle sales ended at a record 44,006,000, the coins through Sept. 21, 2014 posted sales of 29,871,000. 

Last year, the U.S. Mint also had to allocate sales but not during the traditionally quieter summer months.

Another sign of strong demand for silver is the very high demand for the  Perth Mint’s new 2016 silver kangaroo coin. The Perth Mint was quickly cleared out of the initial allocations. 

Wholesale demand was unprecedented, with current orders already far exceeding expectations. This demand has created a significant backlog, which the Perth Mint is working to resolve by making additional press time available for manufacturing.

They temporarily suspended taking orders to ensure the current backlog does not get any bigger. Moving forward they will allocate a specific number of silver coins to their authorised dealers – one of which is GoldCore.

The huge demand for the new coin is due to continuing robust demand for silver bullion in general but also due to the competitive pricing on the new coins. Also, the fact that the Kangaroos are a brand new coin and many dealers bought them knowing that bullion coin buyers and collectors will wish to acquire the new coins.

Retail bullion buyers remain the primary buyers of silver bullion today. There is chatter of some institutional buying of bullion coins and bars as well but we have yet to see evidence of this. The move higher in premiums is quite a big move up in a short period of time and is important to keep an eye on. It is interesting, that premiums began to move higher in mid May when there were suggestions that JP Morgan was buying silver in volume.

We expect the current situation to continue and possibly to deepen as silver remains undervalued.

Bullion buyers are looking at silver at near $15 per ounce, gold at over $1,150 per ounce and the gold silver ratio at 76 (1154/15.26) and they rightly see silver as good value relative to gold and indeed to stock, bond and property markets, many of which remain near all time record highs. Conversely silver is nearly 70% below its record nominal high in 2011 and 90% below its inflation adjusted high or real record high of $150 per ounce in 1980.

Mainstream retail “mom and pop” investors are not buying bullion as the lack of risk aversion has led to stocks and property again becoming the assets of choice of retail investors – as was the case in 1999 and 2007. We all know how that turned out.

The smart money is re-balancing and selling their recent outperforming assets and ‘winners’ such as stocks and buying gold and particularly silver bullion today in anticipation of higher prices.

DAILY PRICES

Today’s Gold Prices: USD 1145.50, EUR 1027.63 and GBP 752.18 per ounce.
Yesterday’s Gold Prices: USD 1134.45, EUR 1012.31 and GBP 742.73 per ounce.
(LBMA AM)

Gold in US Dollars – 1 Week

 

Gold rose over 2% yesterday or $22.80 to $1,152.90 per ounce yesterday while silver rose 34 cents or 2.3% to $15.13 per ounce. Gold also eked out further gains in euros, pounds and most major currencies.

In Singapore, gold bullion moved lower and remained weak in trading in London, remaining above the $1,140 per ounce level. Silver prices are another 0.5% lower to $15.16 today, while platinum is 0.8% lower 

Gold is lower after yesterday’s  2.1% rally, which took it back above its 100-day simple moving average at $1,149 per ounce.  Gold has not managed to close above that level since mid June. 

Gold has had a nice move up in recent days and its 14 day relative strength index is up to 58.8. This is its most elevated in a month but it is still some way from overbought territory suggesting further gains may be due prior to a pullback.

Palladium is 1% higher again today and has surged 8% this week – its biggest weekly rise since March 2013. The move this week appears to be a short squeeze and may be the precursor for the long awaited move higher in gold and silver.

The fundamental backdrop for gold remains bullish as central banks continue to add to their gold allocations and the credibility of the Federal Reserve increasingly comes into question.

Janet Yellen’s ill health over night will not help increasing doubts about the Fed’s stewardship of U.S. monetary policy and of the U.S. economy itself.  

The 69 year old faltered near the end of her presentation, pausing for a long stretch, stumbling over some words and coughing. Michael Ash, the chairman of UMass Amherst’s economics department, approached Yellen to ask if she was all right and offered to help her off stage as she concluded. The Fed blamed Ms. Yellen’s stumble on feeling dehydrated after a long day and long speech under bright light.

It sets the stage for the succession of Stanley Fischer, one of the most dovish central bankers in the world and one of the most radical proponents of uber ultra loose monetary policies. He is a strong proponent of money printing and further QE would be expected under his stewardship. 

Indeed, his radical monetary policies go as far as to advocate that central banks digitally create money in order to buy stocks and support stock market indices. His likely accession to the Fed throne will be extremely bullish for gold.

Creditor nation central banks continue to add to their gold allocations. Russia, Kazakhstan and Belarus increased  their gold reserves in August.  Kazakhstan increased their reserves for a 35th consecutive month and Russia has been adding to their gold bullion reserves since 2007.

Kazakhstan purchased about 2.1 metric tons to take its reserves to about 210.2 tons last month, while Russia boosted holdings to 1,317.7 tons from 1,288.2 tons in July, data on the IMF’s website showed. Belarus expanded its reserves to 47.1 tons as Mexico cut them for a 14th month.

Russia, Kazakhstan and Belarus are buying gold along with China due to concerns about the value of the dollar and other fiat currencies.

Read more on the GoldCore.com blog

IMPORTANT NEWS

Gold price surges to 1-mth high following Draghi comments – Bullion Desk
Kazakhstan, Russia Buy More Gold as Mexico Cuts, IMF Data Show – Bloomberg
Yellen resumes schedule after struggling to finish speech – Bloomberg
Janet Yellen cuts speech short  – CNBC
Wall Street falls sharply as Caterpillar weighs – Reuters

IMPORTANT ANALYSIS

Something has changed in the gold trade: Gartman – – CNBC
Janet Yellen Falters During Speech, Receives Medical Attention – Zero Hedge
China, economic propaganda, and the US Federal Reserve – MoneyWeek
China consumers tighten belts, a red flag for the global economy – Reuters
France signals EU treaty change to avert Brexit, warns on euro survival – The Telegraph

Read more News & Commentary on GoldCore.com

 

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Now Is The Time To Accumulate Future Gold Mining Tenbaggers

Published here: http://goldsilverworlds.com/stocks/now-is-the-time-to-accumulate-future-gold-mining-tenbaggers/

We have heard it so many times: investors need to buy low and sell high. In other words, invest when there is blood in the streets.

The precious metals sector has seen blood in the last 2 years. The question is: have investors been buying into this sector?

One thing is for sure: really smart and wealthy investors, the sorts of Stan Druckenmiller, Marc Faber, George Soros, have been accumulating gold mining stocks as the sector have been going through their worse bear market ever. The returns on their investments over the course of the following years will undoubtedly be significant … because they have done exactly what have made them super rich, i.e. buying when everyone is selling.

The key question is how to choose future tenbaggers in the gold mining space?

Although gold miners carry a very high risk (both in their operations as towards shareholders), there is a way to mitigate that risk. The key success factor is to follow successful people in the mining space, people who have proven to know how to bring a project from its exploration phase to a profitable mine. That could seem simple, but it is an extremely challenging journey. Not many entrepreneurs are able to succeed in that challenge.

One of the people who has proven to be extremely successful in the gold mining area is Keith Neumeyer. He has made First Quantum Minerals and First Majestic Silver successful, and he started those companies at the depths of the previous bear market. His first two gold miners reached billion-dollar market caps.

He now is going for a third succes with First Mining Finance (FF). It’s a mineral bank for hard asset investors, where Keith and his team will accumulate high-quality resources at dirt cheap prices due to the 4-year commodity bear market.

FF plans to do joint venturing projects, spin outs, royalties, and sell some assets to majors for much higher prices.

Below is a timeline of his new company, which began trading on April 6th of this year.

April 28th, 2015

First Mining delivers a hostile takeover bid to acquire Coastal Gold Corp (COD). With Coastal Gold management rejecting FF’s offer, Keith and his team went directly to COD shareholders, and 2 weeks later, officially announced a deal to acquire the company with shareholder support.

FF was set to have their first transaction, buying Coastal Gold Corp., a $47 million market cap company prior to the bear market, for just $11 million. This was an extreme value deal. Installation costs of the power lines alone could easily be $40 million, not to mention the $1billion worth in gold resources.

July 8th, 2015

Coastal Gold transaction closes. With the addition of the Hope Brook gold project, FF adds nearly a million ounces of high-grade gold (844,000 indicated/110,000 inferred ounces) to its mineral bank strategy.

FF paid less than $9 an ounce of gold for this project.

September 1st, 2015

An event that will likely attract major fund managers and reveal just how serious Keith Neumeyer is in building his 3rd billion-dollar company. With 19 projects owned that at the heights of the market would likely have been valued at $300 million, FF with its current market cap of less than $40 million threw out a haymaker of a press release.

FF announced the acquisition of two companies: Gold Canyon Resources (GCU) and PC Gold (PKL). Once closed, the transaction will add another 6.4 million ounces of gold to their portfolio. The Springpole project currently owned by GCU already completed a Preliminary Economic Assessment study, with an estimate of producing 217,000 ounces of gold and 1.2 million ounces of silver annually. This is one of Canada’s largest gold undeveloped gold deposits! FF is paying about $8 per ounce of gold for this project!

The Pickle Crow gold project currently owned by PKL will add a million ounces of high-grade gold. FF is paying about $6 per ounce of gold for this project!

Historically, companies pay about $50 to $100 per ounce of gold in the ground when buying a deposit.

September 18th

Looking at just the past 3 weeks, Keith has made 8 insider buys. Accumulating another 517,500 shares. First Mining Finance is trading for about 33 cents Canadian (CAD) today, with a CAD$33 million market cap.

Keith has openly stated that the objective for First Mining Finance is to create his 3rd billion dollar company. Which from today’s prices, would be a 2,930% return on investment, or in dollars, it’s like turning $1,000 into $30,000! These large gains take time, but if you look at the people running FF and the projects it holds, you can see that this business is really is being built just as Keith has described it would be.

Bear markets is where Keith Neumeyer thrives

Management is aggressively looking to increase the project portfolio of First Mining Finance while the bear market in resource stocks persists.

They are literally buying while there is blood in the streets and this elite group of resource investors is using FF as their attack vehicle.

In just 6 months, First Mining has become one of the fastest growing gold-developing companies in the world, with its core projects in the safe mining jurisdictions of Canada, the U.S., and Mexico.

In the mid-‘90s and in the early 2000s, investors with Keith were in the same boat. They owned shares of First Quantum Minerals and First Majestic Silver, with market caps of less than $30 million, only to be rewarded with gains of 10-20-30 times their investment.

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The Great Illinois Gold Rush

Published here: http://goldsilverworlds.com/physical-market/the-great-illinois-gold-rush/

There is no gold rush in Illinois. The important question is, “Why Not?”

Per Mike Shedlock (Mish) here and here:

• “Illinois is in serious financial trouble.”
• “Illinois has no current budget.”
• “The reality is Illinois is flat-out broke.”

The State Comptroller estimates that the backlog of unpaid bills will exceed $10 Billion by December. Worse, “In January [2015], Illinois’ total cumulative liability was $159 Billion.”

“Pay-Later Budgeting” has not worked. “… the state of Illinois has run deficits in every fiscal year since 2001.” The state borrowed, sold assets, underfunded retirement plans, borrowed even more money to fund retirement plans and yet pretended all was well.

Borrowing today increases the strain on future budgets and reduces available funds for future pensions, salaries, benefits, general expenses, and payoffs. Eventually the “piper will be paid.”

Mish has more to say but the message is clear.

1. Illinois is in deep trouble and getting worse each year.
2. Politicians are not addressing structural issues.
3. The current and unfunded liabilities are far too large to be paid.
4. Retiree pensions and benefits will eventually be reduced.
5. Taxes are already high and increasing taxes will not solve their problems.

It is worth noting that the members of the Illinois legislature increased their wages in the midst of this management disaster, and are paid, even without passing a budget.

Back to the important question: Where is the gold rush? Retirees, future retirees and current state workers should realize that they will inevitably lose benefits and jobs while their taxes and expenses increase. Gold, not the legislature nor the politicians, will protect their purchasing power.

But strangely, there seems to be no gold rush in Illinois for protection against their legislature, pension underfunding and loss of purchasing power.

MORE PARALLELS BETWEEN ILLINOIS AND SOVEREIGN GOVERNMENTS:

There are similarities between the state of Illinois (and others) and the US government, Greece, Spain, Italy, the EU, the UK and Japan.

• Massive government deficits every year. Check!

• Unpayable unfunded liabilities that will damage or destroy the currency, the economy, taxpayers, and the middle class. Check!

• Politicians unwilling to address structural problems. Check!

• Extend and pretend – let the next governor, mayor, president, or prime minister address the consequences of current inaction. Check!

• Retirees will be disappointed when promised benefits are either reduced or paid in a currency with such devalued purchasing power that the retirees feel robbed. Check!

• Wealth was transferred from the middle class and the state to the political and financial elite. Check!

• It will not end well. Check!

Where is the gold rush? Apparently the only rush to buy gold in any large quantity exists in Russia, China, and India, but not Illinois, the UK or the US. That will change as the consequences of bad policies are realized.

Illinois (like many other states) is facing an ugly financial future. Illinois can’t “print” money to pay their bills so eventually horrible adjustments will be made. Sovereign nations such as the US, Japan, and the UK can “print” their currencies until others refuse to accept payment in those currencies. This delays, but does not eliminate, the inevitable consequences and implosion.

CONCLUSIONS:

• A state salary or pension in Illinois (and many other states and countries) may be at risk. An alternate plan is needed.

• Politicians will “extend and pretend” instead of addressing structural problems, so those problems will become worse.

• Unpayable liabilities will not be paid.

• Consequences will be ugly and may arrive soon. Be prepared!

• Buy gold (and silver) to protect your purchasing power.

Charles Hugh Smith: “Here’s Why the Status Quo is Doomed”

 

Gary Christenson | The Deviant Investor

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Signs Point to Possibility of Silver Prices Jumping 420%

Published here: http://www.profitconfidential.com/silver/signs-point-to-possibility-of-silver-prices-jumping-420-percent/

Silver is one of the most underappreciated assets in recent years, but there are signs the grey metal may jump 420% again. The last time silver prices made such extraordinary gains was from 2009 to 2011 when silver nearly topped $50.00 an ounce. The indicator that foreshadowed that rise is sounding the alarm again, saying silver prices are headed sky high.

Just to clarify, you won’t get rich overnight. Don’t believe any of those hucksters that tell you it’s possible to multiply your money in a single day; investing takes skill and patience.

Today’s

The post Signs Point to Possibility of Silver Prices Jumping 420% appeared first on Profit Confidential.

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Bank of England and LBMA Gold Bullion - The “London Float”

Published here: http://www.zerohedge.com/news/2015-09-24/bank-england-and-lbma-gold-bullion-%E2%80%9Clondon-float%E2%80%9D

 

A case study of physical gold stored in London Vaults in LBMA 400 troy ounce gold bars has been undertaken by Ronan Manly, Koos Jansen, Bron Suchecki and Nick Laird.

Nick Laird has just completed a great article replete with many interesting and important charts which further illuminate the size of the “London Float” which is the working supply of gold available to meet the gold markets daily needs and huge international demand for gold today – especially from Germany, India and China.

The size of the “London Float” is examined and brought “out of the shadows and into the light of day”.

[Please click chart to expand]

Jesse’s Cafe Americain via Sharelynx

 

Laird concludes that there is an increasing shortage of physical gold bullion in LBMA vaults and on the COMEX due to the continuing flows of gold east to “satisfy the current rampant Asian demand”.

Continue reading on the GoldCore.com blog 

 

DAILY PRICES

Today’s Gold Prices: USD 1134.45, EUR 1012.31 and GBP 742.73 per ounce.
Yesterday’s Gold Prices: USD 1124.60, EUR 1010.97 and GBP 734.77 per ounce.
(LBMA AM)

Gold in Australian Dollars – 3 Months (Reuters Eikon)

Gold rose 0.4% or $4.70 to $1,130.10 per ounce yesterday while silver fell 2 cents to $14.79 per ounce. Gold also eked out further gains in euros, pounds and most major currencies. Gold in Australian dollars has been particularly strong.

In Singapore, gold bullion ticked a little higher and maintained those gains in London, hovering just above the $1,135 per ounce level. Silver prices are another 0.3% higher to $14.94 today, while platinum is 1% higher

Palladium surged another 6% yesterday and is 0.3% down today. The move appeared to be a short squeeze and may be the precursor for the long awaited short squeeze higher in gold and silver.

 

IMPORTANT NEWS

Gold futures mark first gain in three sessions – MarketWatch
Platinum at 6-1/2-year low on VW scandal, palladium soars 6% – Reuters
U.S. factory activity stuck at near two-year low in September: Markit – Reuters
Palladium Climbs to Two-Month High as China Aims to Clean Air – Bloomberg
Gold Buying in India Seen Rising 15% as Festivals Aid Demand – Bloomberg

IMPORTANT ANALYSIS

Attack On Your Financial Freedom Is Coming – Money Week
‘Gold Only Financial Asset With No Counterparty Liability’ – Jesse’s Café Américain
Ronan Manly: Central bank gold at the Bank of England – Gold Anti-Trust Action
Louise Yamada: Major Sell Signals on All Indices – Financial Sense
The Fed just made a gigantic mess – CNBC

Read more News & Commentary on GoldCore.com

Download Essential Guide To Storing Gold Offshore

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Why Silver Wheaton Corp. (NYSE:SLW) Could Be a $40 Stock

Published here: http://www.profitconfidential.com/stock/why-silver-wheaton-corp-nyseslw-could-be-a-40-dollar-stock/

Nobody likes mining companies these days. But remember; in times of uncertainty, the greatest opportunities are born. Currently, there’s a shining star in the mining sector that remains under the radar: Silver Wheaton Corp. (NYSE:SLW).
Why Silver Wheaton Isn’t Like Any Other Miner
Based in Vancouver, Canada, Silver Wheaton is the largest precious metal streaming company. At the very core, for an upfront payment to mining companies, this firm gets the right to purchase all or a portion of their silver and/or gold production for a surprisingly low fixed price.

The post Why Silver Wheaton Corp. (NYSE:SLW) Could Be a $40 Stock appeared first on Profit Confidential.

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Trapped Central Banking and Gold

Published here: http://www.zerohedge.com/news/2015-09-23/trapped-central-banking-and-gold

By David Bryan

The future direction of the planet is between the central bank’s counter-party paper Ponzi currency or the independence of real money.

Foresighted central banker John Exter is famous for his classification of risk assets. Using Exter’s Golden Pyramid the riskiest assets are those at the bottom of the pyramid and situated at the top of the apex is gold bullion – independent from the counter-party risk of central bank’s paper and electronic currency.

Exter’s Inverted Risk Asset Pyramid (via ZeroHedge)

At the bottom of the wealth asset pyramid are over leveraged paper derivatives estimated to be a magnitude of up to six times the world’s wealth. An example of this is in Germany today where it was recently estimated that Deutsche Bank has a massive 70 trillion dollars worth of exposure to derivatives. Meanwhile, annual GDP in Germany is just 4 trillion dollars.

Warren Buffett warned of these “financial weapons of mass destruction.”

This staggering giant paper Ponzi of unpayable leveraged finance means there are multiple counter-party paper claims within complex risk structures that will bankrupt the entire counter-party paper and electronic global financial system in a derivative collapse.

The downward arrows on the Inverted Pyramid point to wealth fleeing from the perceived risk of unpayable counter-party paper to the ultimate assured protection of gold as independent money that offers the security of having a physical asset that will retain liquid disposable wealth.

Gold is the mortal enemy of the central bank counter-party paper system, to prevent the flight of capital away from the Ponzi of paper finance markets and into independent wealth, the price of gold is tightly suppressed by the central planners as documented by GATA, especially during times where there is market uncertainty or periods of geopolitical stress.

Losses from deleverage and deflation since the 2008 paper crash have been so immense that central banks counterfeit of quantitative easing has been necessary to prevent a collapse of the derivative complex.

At the same time re-inflated worldwide stock markets have become totally dependent on managed central bank intervention for life support, while gold and gold mining shares have been monkey hammered even though the physical demand for gold greatly exceeds world mining supply.

From trying to meet insatiable world demand, the Western gold pool has reached a critical level of available supply that could finally end the ability of central banks to maintain their gold price suppression.

Within the structure of a central bank counter-party paper Ponzi, central banks are trapped into a future of negative interest rates and the end of capitalism.

For capitalism to work there must be a return on capital and no amount of counterfeited money or easing can re-engineer the tragic collapse of a financial house of cards built on a pyramid of unpayable leverage or prevent gold from being independent money!

The smartest money on the planet has logically anticipated in advance the tragic end of the central bank paper Ponzi and has positioned in secure physical gold that is held in storage free from the risk of counter-party failure.

The eventual staggering monetary value of one ounce of physical gold, will be the amount of quantitative easing that is required to try and save the derivative complex which is thought to be in excess of one quadrillion dollars, plus attempts to rescue the bond markets, worldwide stock markets and the Ponzi of unallocated gold instruments where upwards of 200 claims exist for every ounce of gold sold, divided by the ounces of gold in the world.

Continue reading on the GoldCore.com blog

 

DAILY PRICES

Today’s Gold Prices: USD 1124.60, EUR 1010.97 and GBP 734.77 per ounce.
Yesterday’s Gold Prices: USD 1129.30, EUR 1009.11 and GBP 729.66 per ounce.
(LBMA AM)

Gold ended with a loss of 0.7% and fell $7.80 to $1.125.40 per ounce yesterday while silver fell 38 cents to $14.81 per ounce. Gold in sterling is testing recent resistance at the £740 per ounce level and has reached its highest price since the end of August today.

 

IMPORTANT NEWS

“Nervous funds again throw the baby out with the bath water” – GoldCore on Gold -MarketWatch
Gold under pressure as dollar gains on U.S. rate hike hopes – Reuters
Gold Miner Ready for Yellen to ‘Get on With It’ Sees Price Rally – Bloomberg
Gold futures log a second straight day of losses – MarketWatch
Asian stocks extend losses on weak China PMI survey; dollar strong – Reuters

IMPORTANT COMMENTARY

What if the Fed’s next move is to print more money? – MoneyWeek
The decline in market liquidity – Breugel
David Morgan: Conspiracy Facts Show Metal Prices Have to Rise – Streetwise Report
12 Stunning Visualizations of Gold Shows Its Rarity – Visual Capitalist
A Bullish Gold Price Forecast – Gold-Eagle

Read more News & Commentary on GoldCore.com

Download Essential Guide To Storing Gold Offshore

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