Friday, January 28, 2011

Fall of Saudi Arabia to End Dollar Reserve System?

The civil unrest in Egypt is growing fiercer. Electronic communications have been shut down throughout Egypt and massive demonstrations have been planned for today. A changing of the guard in Egypt would be a massive political shift indeed, but what if the disturbances don't stop there? What if they ultimately spread to Saudi Arabia and end up bringing down the dollar reserve system?

PMO Sell Signal Clusters

Carl Swenlin talking about a trend change?

Gold and Silver Progress Report

A few bullish factors to be considered: Excellent insights in this overview. Jon

China Plays Europe Card

Jim Willie is one of my favorite writers. How does he know so much?

Thursday, January 27, 2011

Why Gold and Silver Have Declined

A few days old, but shows how banksters and governments collude to manipulate metals markets.

Four Reasons Why The Government Is Destroying The Dollar


The United States government has four interrelated motivations for destroying the value of the dollar:

1. Creating money out of thin air on a massive basis is all that stands between the current state of hidden depression, and overt depression with unemployment levels in excess of those seen in the US Great Depression of the 1930s.

2. It is the weapon of choice being used to wage currency war and reboot US economic growth.

3. It is the most effective way to meet not just current crushing debt levels, but to deal with the rapidly approaching massive generational crisis of paying for Boomer retirement promises.

4. Political survival and enhanced power for incumbent politicians.

In this article we will take a holistic approach to how individual short term, medium and long term pressures all come together to leave the government with effectively no choice but to create a high rate of inflation. If you have savings, if you rely on a pension, if you are a retiree or Boomer with retirement accounts - any one of these four fundamental motivations is individually a grave peril to your future standard of living. However, it is only when we put all four together and see how the motivations reinforce each other, that we can understand what the government has been and will be doing, and then begin the search for personal solutions.

Gold & The Bond: Facing Reality

Very interesting insights to Gold, bond markets. Definitely worth a read. Jon

A Simple Shake Could Set Silver Free

There is no more silver! Really, there isn’t any left.

There is a danger lurking in the shadows of the COMEX silver market. Prices are (generally) rising, but the supply of silver is falling, and it’s falling quickly. Why, you ask? Unfortunately, there has been confusion in the paper and physical metals market…as if silver investors hadn’t already noticed.

Panel cites roots of meltdown, but does it matter?

The article didn't surprise me, but the best part was the comments from citizens to the article.

Robert Prechter and Gerald Celente

Two interviews worth a listen. Of course Robert Prechter on markets.

Wednesday, January 26, 2011

The only thing keeping 43 million from going postal


Mining Expert Touts Physical Silver

Jan 26 2011

When investing in precious metals, buying physical metals is best, for a myriad of reasons. Even mining stocks expert David Morgan, of, agrees. In this video blog, Morgan and Michael Maloney meet up in Las Vegas, where they have advice for those who don’t want to take a gamble with their investments.

Production of Silver Eagles, the highly popular U.S. investment coins, is rapidly approaching the physical limits of their production, David and Michael agree. That’s because under the U.S. Silver Eagle Act, only domestic silver—mined in U.S. mines on U.S. soil—can be part of the Silver Eagle program.

“And the U.S. is not the biggest silver mine in the world any more by a long shot,” David says.

Many U.S. silver mines have become depleted, and mines have shut down. “And there’s the fact that U.S. mining is costly, more costly than other areas of the world,” David continues. “You’ve got labor law in certain states, you’ve got Workers’ Comp, you’ve got medical benefits, unionized labor in some cases. I’m not saying that’s good or bad; all I’m saying is that the cost out of the ground for those wage earners is higher than say if you mine in China or Mexico or Peru or other locations. So because of that you’ve got to have a rich silver mine to make it economical.”

The performance of gold and silver during the market crash of 2008 may be a precursor of things to come, Michael says, and confirms his belief that physical metals is a more secure investment than futures or stock in Exchange Traded Funds such as GLD and SLV.

“I’ve often said that Silver Eagles should develop a premium and a shortage, and they developed a huge premium back in November of ’08. They were selling a four times the spot price.

“When shortages developed worldwide of precious metals, and the markets started to crash, gold and silver went with them at first. I believe that’s because now you’ve got everybody with trading platforms, and they’ve got the ETFs like SLV and GLD on their platforms, and they’re trading that on margin, just like they’re trading everything else, and they’ve got futures contracts that they can trade. And when they get a margin call, they have to liquidate everything. So the markets plunged, and you saw silver and gold, which normally would have diverged and done the opposite—it would have been the place everybody ran to for safety—they went with the markets for the ride for a little while.

“When gold fell below 850, suddenly all these buyers came in. The physical market just completely dried up, and there was this silver rush like we have never seen. One-hundred-ounce bars were going for 18 bucks an ounce on eBay, and Silver Eagles were 35 bucks an ounce, when silver bottomed below 9 bucks in November ’08. So on the same day, if you were invested in silver ETFs, or futures contracts, your silver was worth less than 9 bucks. And if you had Silver Eagles, they were worth more than $35.”

Join Michael and David in this Vegas video blog to learn more about why silver is golden and physical metals are best.

My 13 Reasons Why Gold Still Has Further to Go

Financial history teaches that market prices are not just subject to cyclical fluctuations — mainly following the business cycle. They are also liable to much longer lasting secular trends, often spanning 15 years, 20 years or longer. These secular cycles are visible in stocks, commodities, bonds and precious metals.

The Most Predictable Financial Calamity in History

QE means the Fed basically creates money out of thin air to buy debt. The current money printing orgy is financing more than half of U.S. government right now. The first round of QE bought toxic mortgage debt and bailed out the bankers.

What was not said in the press release was much more important and may go down as one of the biggest turning points in the history of America. Bringing on QE2 meant QE1 ($1.75 trillion) failed to provide a sustained recovery. It also exposed the $12.3 trillion total spent or loaned by the Fed since the meltdown of 2008 failed to give the economy a lasting boost. The Fed did save some businesses and all the big Wall Street Banks from bankruptcy, but we now know nothing has really been fixed.

This brings me to one really important question. I put this question to a group of well-known market experts, economists, investment bankers and big thinkers. The five guys you are about to hear from have at least one major thing in common. They all predicted tough times for America when most didn’t see it coming. So, I asked them all last week to peer into the not-so-distant future for their take on “What happens when QE2 ends?”

Why Gold and Silver Will Take Off

Gold, silver, oil, and other commodities - are all starting to slide, just as I predicted. Gold down almost $100 from its recent record high. Silver down more than $3.40, nearly 10%. Other commodities are turning down also: Oil, platinum, palladium, and more.

So is this the end of their bull markets?

We're very close to a great buying opportunity in gold

Charts in historical view. Written before the breakout today.

Tuesday, January 25, 2011

Marc Faber's Most Provocative Interview Ever: Compares Obama To A Prostitute, Goes Long Treasurys

Earlier, Marc Faber appeared on Bloomberg TV, in what may go down in history as his most scandalous interview ever. When asked, in advance of the SOTU address, what he thinks of the president, Faber, who appears to have had enough with all the bullshit, propaganda, and lies, replies: "I think he's done a horrible job and I think that will continue, I think he is a dishonest person, and nothing has changed... Some politicians are more honest than others. I don't think that I have a very high regard for politicians, I have a high regard for businessmen and for people who work, and not for people who abuse the system continuously. And in comparison to other politicians, I think he came in on a platform as a president that would want to change the government in Washington, and actually he's made it worse... We foreigners, we just laugh at someone like Mr. Obama. I was very critical of Mr. Bush, but at least he had one line and he stuck to that line, and at least he set out to do a thing and he was relatively straight on the thing that he did. He may have been wrong, but at least he didn't change his mind continuously, and didn't prostitute himself." If nothing else, how many other people do you know who will compare, in front of a live Bloomberg audience, the president of the formerly greatest country in the world to a whore?

Insider selling to buying ratio: 2,842 to 1

Since last week the ratio of selling to buying was #Ref!, it could really only go up. And it has. In the week ending January 21, the S&P 500 saw 2 insider buys (Tiffany and Fastenal for a total of $131,227) and 60 insider sales, worth $373 million, for a total insider sell-to-buy ratio of 2,842x. The biggest selling occurred in Discovery Communications ($101 million), Tiffany (where the $54 million just modestly offset the $119,259 in buying), Apollo Group ($44.8 million), McKesson ($40 million), and Hewlett-Packard ($25 million). So just like the government's definition of inflation, where if you strip away everything you have deflation, absent all the selling in the last year, which now amount to about $20 billion, there has been nothing but insider buying.

Richard Russell -get out of your dollar assets now!

And now for a Gold chart for the opposite view.

Then there's this from Harveyorgan's site: There have been rumours that certain hedge funds and sovereign wealth funds are willing to take possession of all gold and silver. In gold it is the February month and in silver it is March. If this is true, the game is over as there will be a default at the comex

which will bring on defaults at the SLV and GLD, and then a default at the Bank of England, and then all the banking system in the USA. I will be watching this closely.
So in the conclusion, we saw a massive contraction in OI with respect to gold, which is in itself extremely bullish as the cartel washed away all of our weakest longs. Those that are now standing after a month of pummelling are in strong hands.
In silver, we saw no liquidation. If the long holders here are sovereign wealth funds, then they are also in strong hands and quite capable of bringing down the usa financial system.

Why Eric Sprott sees silver as the next big investing windfall

Eric Sprott always seems to be in the right spot when it comes to investing. Now in Silver. He joins the longs.

Scotia-Mocatta Sells Out Of 1 Kilo Silver Bars

How much longer can JPMorgan keep paper from moving silver prices?

Monday, January 24, 2011

The Value Case for Silver

The prices for commodities can change quickly and wildly, and in many cases, investors can hold commodities for years without any realization of profits.

The wild cyclicality is what has kept many out of the commodities markets, and it is the reason why so many value investors choose to ignore commodities as a broad investment alternative. In respectful disagreement, making the case for a value investment in silver is a cakewalk at worst.

What Every American Needs To Understand About The Economy

As the United States debates its economic future in light of large government budget deficits, it is important that the public has a clear understanding of how the economy works. A good starting point for understanding how the economy works is to understand how it is measured.

Inside Job

This movie is coming to video soon. It may change things or at least open the eyes of many, let's hope.

Silver IS The New Gold

As a final point of fact, the above ground stockpile of silver- around 22 to 25 billion ounces and mostly jewelry and silverware at this point- has not changed much over the last half century. (Mind you, at the moment less than 1 billion are silver coins or bullion.) However, the above ground stockpile of gold has grown substantially from under 1 billion to nearly 7 billion ounces over the same time frame. Beside the fact that the above ground ratio of all silver to gold is less than 4 to 1 (and not 50: 1 as currently expressed in the price), the trend in physical gold and silver is clearly toward parity, or at least something close to it. And yet here we are with silver having recently “corrected” in price to a mere $27.50 an ounce, while gold is $1350. Silver- which could one day get awfully close to the price of gold- remains very much a screaming buy.

Melt The Witch (Updated!)

I'm going to say it flat out...SELL ALL YOUR GOLD INVESTMENTS NOW AND BUY PHYSICAL SILVER! This is not a joke and don't get me wrong, I am the biggest "gold bug" you've ever meet, but it is time we ended their evil game. The Cabal has shown their Achilles Heel over the past few years and it is not gold but the depletion of physical Silver available for delivery that will ultimately lead to their demise. Many of us figured out long ago that physical Silver will likely run out before physical gold simply due to the tiny size of the Silver market compared to Gold, but most of us have not ACTED on this knowledge to accelerate the demise of the Gold Cabal due to our affinity for Gold and all that Gold represents... sound/honest money, freedom, liberty and justice for all!

Gold Tax Rates and Collectible Tax Treatment Breakdown

The taxation laws with respect to gold are often very confusing, as the IRS considers gold a "collectible" - which renders it subject to a higher capital gains tax rate, generally speaking.

Since a lot of readers here invest in gold, we thought we'd tap gold investing guru Jeff Clark for some advice about the tax treatment of gold. If this is an area of interest to you, read on as Jeff breaks it down...

Sunday, January 23, 2011

Peak Theories On The Euro Versus The Dollar

I thought this appropriate since it shows dollar and Gold, silver charts.

Abigail Doolittle of Peak Theories shares her latest technical observations on the EURUSD. Coming at a convenient timing, following after the CFTC COT data, her outlook is diametrically opposite from that of Goldman whose LT and tactical targets are 1.55 and 1.37 respecitvely. Specifically, "I think we could see the euro hit about $1.225 between now and the end of the second quarter of this year while the dollar index may crest to between 86 and 88 in the same time period." The charts attached explain her reasoning.

Saturday, January 22, 2011

The Silver Stealers

Skull & Bones, meet the Pilgrims

An initiative to protect private property rights of American Citizens, By Charles Savoie

Friday, January 21, 2011

Which Of The Currencies Of The World Is Going To Crash First?

Last year was an absolutely fascinating time for world currency markets. The yen, the dollar and the euro all took their turns in the spotlight. Each experienced wild swings at various times, but the overall theme that we saw was that faith in paper currencies is dying. The biggest reason for this is the horrific sovereign debt crisis that has swept the globe. The United States, Japan and a whole host of European nations are all drowning in debt. The U.S. and Japan are both steamrolling toward insolvency, and several European nations would have already defaulted on their debts if they had not been bailed out. So which of the major currencies of the world is going to crash first? Will one (or more) of the big currencies fall before the end of 2011? Once one major currency collapses will the rest start to fall like dominoes? The truth is that the world has never seen a sovereign debt crisis of this magnitude in all of human history. Almost the entire globe is drowning in a sea of red ink and it has brought us right to the brink of financial disaster.

So which of the currencies of the world is going to be the first to come crashing down? Well, let's take a quick look at the yen, the euro and the dollar....

Chinese Silver Demand Surges Incredible Four Fold in Just One Year

Gold is flat and silver marginally lower despite dollar weakness this morning. Some market participants are blaming the precious metal sell off on speculation that China may take more monetary action to curb surging inflation. This is unlikely to be the reason for the sharp selloff, rather it looks like another paper driven sell off in the futures market by leveraged players on Wall Street with various motives.

Silver in backwardation

in backwardation which is an extremely important development. Most are aware that when backwardation occurs, the spot price is higher than the futures price. Backwardation happens regularly in most commodities, but it is rare in the precious metals.”

FSN metals update with David Morgan

Some good questions by folks writing in. Jon

Thursday, January 20, 2011

Inflationary Guerilla Tactics Resume As Comex

Wonder why the smart money was rushing headlong out of gold and silver over the past few days, and especially today in the AM session? Here is your answer:

Silver Investors: Pick Your Poison

For 10 years I've been hearing from the mainstream media, silver market analysts and even big time silver bugs the various reasons why Silver prices will NEVER skyrocket. There is always some GRAND REASON why my huge price projections of $7,000/oz for silver will never come true. It's gotten to the point that the BEST thing to do when one of these "oh-so-important" discoveries comes to light is to CLOSE YOUR EYES AND JUST KEEP BUYING SILVER!

Chinese puzzles

There is one possible solution to the puzzle posed by China over its strategic use of precious metals: she has far, far more gold and silver than we commonly believe. To understand why this conclusion makes sense, we must try to understand her political objectives and where her manipulation of bullion markets fits in.

20 percent correction?

Silver prices may retreat as much as 20 percent this year as soaring demand for physical metal signals a “crowded” trade, said Barry James, the chief executive officer of James Investment Research Inc.
I find this guy lacking. Why would it fall because of demand? I read further that it's the JPMorgue who is continuing to unwind it's short position. Figure that the metals will continue lower as they break under support.

Wednesday, January 19, 2011

Precious Metals: 10 Things To Know Before Jumping Into Gold And Silver

As the global economy became increasingly unstable during 2010, investors all over the world flocked to precious metals such as gold, silver, copper and platinum. The price of gold set an all-time record high last year, and gold investors were euphoric. Many analysts are projecting that prices for gold, silver and other precious metals will continue to soar throughout 2011. But does that mean that everyone should just suddenly jump into gold and silver? No, it does not. Precious metals are not for everyone. Just like any other kind of investing, it is absolutely crucial that you get educated before you get involved. Investing in precious metals is very different from other kinds of investments. There are significant hazards and pitfalls to watch out for. But if you take the time to do it right, investing in precious metals can be very rewarding, and it can potentially be a great way to protect your wealth against the tremendous inflation that is coming in the years ahead.

The following are ten key things that you should know before jumping into gold and silver....

The failure of derivatives regulation of precious metals

The regulatory failure of precious metal contracts in US derivative markets will have important systemic consequences, and nowhere is the problem becoming more obvious today than in silver. Several banks have been running a substantial short position for a considerable time. This position has been permitted to continue because of weak management by both Comex as the principal dealing exchange and by poor oversight from the US Commodity Futures Trading Commission as regulator.

Tuesday, January 18, 2011

5 Reasons Why Silver Will Outshine Gold in the Long Run

Silver was the first metal to be used as a currency more than 4,000 years ago. For millennia, silver has been viewed by the world as a form of money and as a store of value. For centuries, monetary systems around the globe relied upon the silver standard as an economic unit of account. According to Nobel Laureate and world-renowned economist, Milton Friedman, “the major monetary metal in history is silver, not gold.” Because silver is more reasonably priced, and therefore more accessible to the common man, it has been called the “poor man’s gold.” It has been said that “Gold is the money of kings; silver is the money of gentlemen; barter is the money of peasants; but debt is the money of slaves.”

January Silver sales hit 26 year high

As of today they stood at a whopping 4,588,000, or nearly 1.2 million ounces sold in a few short days.

GoldCore Comments On Silver Shortages And A Possible Price "Tipping Point"
A recent report by analyst Adrian Douglas of GATA warns of forthcoming shortages of gold and silver bullion coins and bars, and that a “tipping point” will soon be reached that could lead to a COMEX default and a short squeeze which leads to much higher prices. Douglas himself has shown in Le Metropole CafĂ© how Comex silver inventories are shrinking and are not far from ten year lows.
Tipping point

Monday, January 17, 2011

$2 Billion Enough To Bust Comex Silver Dealers In Mar 2011

Since some big players have figured it out, what an easy profit it is for them to just buy silver futures contracts and negotiate for premiums and pocket easy money in less than a month, I expect even higher number of settled contracts in cash with Mar 2011 silver futures.
Eventually, this fraud will end but until additional players – actually wanting/needing physical silver instead of USD, enters Comex playground, this shenanigans will continue.
Bust Comex

Is JPM Covering Up a Naked Silver Short Held By China As a Claim Against the Yanks?

Is China black-mailing the US with evidence of market manipulation in gold and silver? It sounds like the plot of some novel, but stranger things have happened when government goes into partnership with finance.
The story continues:
China silver short

The uses of Silver

I'm sure most would like to know all the things silver is used for in the world.

* Traditional
o Coinage
o Photography
o Silver Jewelry
o Silverware and Table Settings
* Industrial
o Batteries
o Bearings
o Brazing and Soldering
o Catalysts
o Electronics
* Emerging
o Medical Applications
o Mirrors & Coatings
o Solar Energy
o Water Purification
Silver uses are endless and growing daily. I even heard of silver being used in alchemy.
uses of silver
Demand and supply of silver

Sunday, January 16, 2011

Silver insights to JPMorgue

NIA interview with Bill Murphy, talks about the manipulation of JPMorgan, Goldman Sachs, Deutsche bank, Governments. Threats to his life. is the homepage.
NIA interview
Next is a continuing series from MrSilvergoldsilver's channel. Silver manipulation explained.
This video is on Gold, but you can take whatever is said and apply it to silver.
Cash or Gold

Saturday, January 15, 2011

Silver investing

Lets start with some videos and articles on the subject. This I feel will be the best way to secure your retirement when all else fails. Fiat money and Social security/medicare can no longer be counted on. Just type in "silver" in youtube, or google and you will find links galore!
Silver Shortage This Decade, Silver Will Be Worth More Than Gold
Soon, if not already you will discover that the whole system is a ponzi scheme! Thats right, the financial system is based on debt from credit. Here is a video to tell the story.
The big Lie
In order to understand why Gold and Silver will continue to go higher, you must understand that it is the dollar that continues to collapse. 95 percent of the dollar is gone! Lets get the story right. Americans must learn history.
Grand illusion
The commodity story will continue to grow.
Run from Bonds/stocks
The most well thought out Lesson on whats coming and how to prepare. Chris martenson tells the story.
Crash Course