Eric Sprott To Buy $235 Million In Gold, Or Over 6 Metric Tonnes, As Part Of PHYS Follow-On Offering

"Eric Sprott's Physical Gold Trust (PHYS) has just announced it is issuing a follow-on offering of 18 million trust units, with an overallottment option of another 2.7 million, for a total, including the greenshoe, of 20.7 million new units. The proceeds, as expected, will be used to purchase physical gold bullion to satisfy unprecedented investor demand for a safe haven away from the central bank printing press madness. At a post-announcement per unit price of $11.40, this means Sprott will buy $235 million worth of gold in the open market. At today's gold price of $1,200 this translates into 195,833 troy ounces of gold to be acquired, or roughly 6 metric tonnes. Somehow, we don't think the LBMA will be too thrilled with this extraction of physical gold out of the controlled synthetic precious metal ponzi system."

Tyler Durden - Zero Hedge

The U.S Dollar is Next

"The present relationship, although short term, is that gold is moving in the same direction, of the US dollar. That means that as the US dollar falls markets interpret that as a relief of the euro crisis which results in longs taking profits and shorts establishing positions in gold. A softer dollar today as a product of short covering in the euro for very modest technical and fundaments tidbits means temporarily lower gold as the euro crisis has caused a rush to gold by euro holders. That relationship will stop, but the euro must cease first.

As I explained to you in detail, the next target of credit default derivatives after battering the euro is to batter the US dollar.

After the euro is done within a few sessions the relationship between the dollar and gold will return to inverse in a very big way. This I assure you. With more than 50 years in markets you learn a few things about the madness that goes on."

- Jim Sinclair

Hold your Gold!

"The very temporary MOPE illusion right now is that the most stable base of currencies in the pyramid scheme collapse is the US dollar and therefore where you should flee for safety. Unfortunately the sheeple who fail to study history don’t understand that gold is the only currency that has no liability and cannot be printed by the kingmakers. The writing is on the wall and this is it! Do not trade away your insurance for speculation. Hold your gold in hand and not in paper promises."

Looks about right

A picture is worth a thousand words.

Physical market has smashed gold paper, Sinclair tells King World News

"Eric King of King World News today got a most incisive 12-minute interview out of Jim Sinclair, chairman of Tanzanian Royalty Exploration, proprietor of JSMineSet.com, and America's "Mister Gold," in which Sinclair remarked, among other things:

-- Physical demand for gold has overwhelmed paper gold selling five times in the last two weeks and the cash market will run the gold market

-- Gold is now the leading currency.

-- While the bankruptcy of Greece is convulsing the financial markets, the bankruptcy of California is four times worse.

-- All states and nations will be bailed out by central banks with "qualitative easing to infinity."

-- The continuing pessimism about gold's prospects is a guarantee of higher prices.

-- The decline of currencies may produce a "Weimar effect" on equities, pushing them up.

-- Confidence in government currencies can evaporate overnight.

You can find the interview with Sinclair at the King World News Internet site here:"


http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2010/5/6_Jim_Sinclair.html

Chicago Tribune in 1934

This cartoon was in the Chicago Tribune in 1934. Look carefully at the plan of action in the lower left corner.

Most of the people running the government don’t remember 1934 because they were even born yet. Apparently they didn’t get history in school.

Schiff: U.S. Is Next Greece

"Peter Schiff, president of Euro Pacific Capital, says what's happening in Greece is only a prelude to what will soon be happening in America."

Schiff: U.S. Dollar Will Crash

"Peter Schiff, president of Euro Pacific Capital and author of How an Economy Grows and Why it Crashes, argues that the credit problems that plagued Greece will happen here and the U.S. dollar index will sink."

"Here is a revealing question."

Phase 2 Starts Today! - Gold & Silver Bull Market - Mike Maloney

"Hi there, this clip was filmed right after we left the Bloomberg studio in Singapore. Mike had just filmed an excellent interview that went out to millions of people who would otherwise have never heard about gold and silver, currency creation by private central banks etc. Mike dicusses many things in this clip, including awareness of the situation, the differences between this market and that of the 1970s, the fact that this is a global phenomenon, and more. Would love to hear your thoughts on what he has to say."

Ignore Gold's Sell-Off

"Jeffrey Christian, managing director of the CPM Group, says gold's recent sell-off will be short lived and that prices should resume their upward trend after investors digest the SEC's fraud accusation against Goldman Sachs."

Still Believe?

"I would add to this that Dwayne also believe in a Jobless Recovery."




- Jim Sinclair, From JSMineSet.com

Bernanke Warns: U.S. Debt Could Balloon to More Than 100% of GDP

"What is said here is a requiem for the dollar!"

Gold is the Safe Haven

"All major US cities and certainly all US States, one way or another, will be bailed out of bankruptcy. They are all heading there en masse.

The US dollar is not a safe haven."

Regards,
Jim Sinclair

Take The Gold, Leave The iPad

"Alix Steel reveals golden ways to spend $1,600 instead of buying a new Apple iPad."