"Remember what JP Morgan himself said: "Gold is money, period." And soon it will be the only money that has any value, period. Gold, silver and their related shares are the only place to be. Stay clear of paper gold and silver and buy physical only and take possession. These paper gold and silver Ponzi schemes, like GLD, SLV, OTC derivatives and mint certificates are going to be exposed soon. Very shortly, JP Morgan will be sued in class actions by big players that have been criminally screwed in the silver markets, and this could be the catalyst that finally blows the whole precious metals fraud wide open. So load up!"
- Bob Chapman
Wednesday, June 23, 2010
Monday, June 21, 2010
Gold at new record high after Saudi reserves double
Gold prices hit on Monday a fresh record high of almost $1,265 a troy ounce following the revelation that Saudi Arabia, the world’s largest oil exporter, is sitting on more than twice as much gold as previously thought, according to new estimates.
The disclosure points to the revival of bullion as part of emerging economies’ official reserves and comes as investors pour money into the yellow metal.
The weakness of the dollar following China’s decision to make the yuan more flexible, gave bullion further momentum, analysts said. A stronger yuan makes the cost of gold for Chinese buyer cheaper, potentially increasing demand. China is the world’s second largest gold consumer, after India. It is also the largest producer.
In early trade in London, spot gold surged to $1,264.9 an ounce, up 0.7 per cent from Friday’s last quote in New York. It later pared gains to trade at $1,258. Adjusted for inflation, however, bullion is still below its all-time high of more than $2,300 set in 1980.
Traders and bankers said hedge funds remain extremely bullish on gold because they believe that, sooner or later, the central bank’s recent massive monetary expansion would translate into inflation. Some hedge funds have internal forecasts above $1,300-$1,500 for the end of the year, bankers said.
The disclosure points to the revival of bullion as part of emerging economies’ official reserves and comes as investors pour money into the yellow metal.
The weakness of the dollar following China’s decision to make the yuan more flexible, gave bullion further momentum, analysts said. A stronger yuan makes the cost of gold for Chinese buyer cheaper, potentially increasing demand. China is the world’s second largest gold consumer, after India. It is also the largest producer.
In early trade in London, spot gold surged to $1,264.9 an ounce, up 0.7 per cent from Friday’s last quote in New York. It later pared gains to trade at $1,258. Adjusted for inflation, however, bullion is still below its all-time high of more than $2,300 set in 1980.
Traders and bankers said hedge funds remain extremely bullish on gold because they believe that, sooner or later, the central bank’s recent massive monetary expansion would translate into inflation. Some hedge funds have internal forecasts above $1,300-$1,500 for the end of the year, bankers said.
Friday, June 18, 2010
Hip Hip Hooray?!?
"Do not confuse a rising stock market environment as an indication of economic stability or improvement. The Weimar Republic model illustrates how financial and social pain can be associated with a rising stock environment."
The Move to $1650 and what it Means for Producers
It is my feeling that gold is headed on this move to $1650 with its normal drama.
Let’s think about what this means to gold producers.
With gold valued at $1650 per ounce:
- 500,000 ounces = $825,000,000 less the cost of mining.
- 1,000,000 ounces = 1,650,000,000 less the cost of mining.
- 2,000,000 ounces = 3,300,000,000 less the cost of mining.
Costs:
- Underground average costs are approximately $500-$600 (assuming no derivatives or derivatives covered as international and Canadian GAAP requires derivative losses be expensed to the specific property).
- Open cut average costs are approximately $300 (again, assuming no derivatives or derivatives covered).
- On surface average costs are approximately $22-$75 (again, assuming no derivatives or derivatives covered).
- Jim Sinclair, of JSMineSet.com
Let’s think about what this means to gold producers.
With gold valued at $1650 per ounce:
- 500,000 ounces = $825,000,000 less the cost of mining.
- 1,000,000 ounces = 1,650,000,000 less the cost of mining.
- 2,000,000 ounces = 3,300,000,000 less the cost of mining.
Costs:
- Underground average costs are approximately $500-$600 (assuming no derivatives or derivatives covered as international and Canadian GAAP requires derivative losses be expensed to the specific property).
- Open cut average costs are approximately $300 (again, assuming no derivatives or derivatives covered).
- On surface average costs are approximately $22-$75 (again, assuming no derivatives or derivatives covered).
- Jim Sinclair, of JSMineSet.com
Sunday, June 13, 2010
Thursday, June 10, 2010
Time to buy? Now even China is trying to talk gold down
BEIJING -- The gold market is too small, illiquid, and volatile to be suitable for asset allocation, China's State Administration of Foreign Exchange (SAFE), said in its annual report published on Thursday.
SAFE, part of the central bank, the People's Bank of China, last year revealed its gold reserves had grown to 1,054 tonnes from 600 tonnes in 2003, mainly the result of buying up local production. It has not given any update of its holdings since then.
Good old China. Remember actions speak louder than words.
SAFE, part of the central bank, the People's Bank of China, last year revealed its gold reserves had grown to 1,054 tonnes from 600 tonnes in 2003, mainly the result of buying up local production. It has not given any update of its holdings since then.
Good old China. Remember actions speak louder than words.
Tuesday, June 8, 2010
Are Gold Prices Manipulated?
"Chris Powell Secretary/Treasurer Gold Anti-Trust Action Committee or GATA discusses the gold manipulation debate and reveals his price target for free-market gold."
BMO Has A Simple Message To Its Clients: Go To Cash Now
In a surprising development, the most bearish, and easily most comprehensive, report that we have read in a long time on the broader markets, comes from Canada of all places, via BMO's Quant/Tech desk. The report's title is simple enough: Go To Cash - In Plain English. Not much clarification needed. Here is the gist: "We advocate switching out of equity positions and going to cash. The European sovereign debt crisis appears to be nowhere near over. The global credit environment is worsening. Cost of capital is going up and availability is going down. There are large gaps between where the credit market prices risk and where the equity market is priced. Equity is lagging the deterioration in credit conditions. Moves in currency, equity and commodity markets are mirroring the moves in the credit market. Global growth, in a credit-constrained environment, will slow. Profits will be squeezed by the higher cost of capital...We advocate a zero weight toward equity, and that investors convert their equity positions to cash."
Here is a link to the original report with far more technical data.
- Tyler Durden, Zero Hedge
Here is a link to the original report with far more technical data.
- Tyler Durden, Zero Hedge
Saturday, June 5, 2010
Bill Laggner: Markets Vulnerable
Bill Laggner guest posts for KWN:
"The break in the Euro today coincides with the break in the S&P 500 and the support levels of the most recent months have been 1040 to 1050. Those levels now look vulnerable. As the stimulus wears off and the current administration does not have an encore performance, those levels may just give way finally.
The Euro dropped to multiyear lows as Hungary joined Greece in the global economic sovereign debt crisis. Like the Greeks, Hungary and other Eastern/Central European countries cope with economic contraction while debt servicing on both a private and public level remain insurmountable. Societe Generale (SocGen) rumors started overnight when several sources unveiled derivative impairment charges possibly linked to Hungary economic news which shouldn’t surprise anyone since SocGen has over $28 billion in Eastern/Central European debt exposure. To put things in perspective SocGens Eastern European exposure is roughly 60% of equity!
Other French banks remained quiet today as Trichet continues to monetize approximately $2-3 billion per day in Greek sovereign essentially bailing out his countryman’s finance houses while the Germans ask “where is our bailout”. According to latest ’09 filings some of the largest German banks are levered anywhere between 70-80X so a Greek bailout only partially removes some of the toxic waste from their respective balance sheets. No word on how much potential liability lies in the Eastern bloc but sources tell us the situation is dire indeed.
The ECB has elected to enter the QE road. In two weeks the central bank of the United States will meet and looking across the pond and seeing their european counterparts monetizing to the tune of $1 trillion dollars will Bernanke opt into more quantitative easing to stop asset prices from breaching their most recent lows?"
Bill Laggner
Bearing Fund
Friday, June 4, 2010
Dear Comrades In Golden Arms,
"If you do not see the hand of intervention in the gold market early this morning you are either wearing welders gear or are simply inept in this field.
Like the euro intervention being useless in the grand scheme of things, so is the gold intervention this morning.
Above $1224 the manipulators will lose their influence in the price of gold. We sure witnessed that last US night in the euro.
The real numbers now that you will not hear on F-TV are $1.19 and then $1.10, below which the euro will collapse. This will return us to the dark ages in Forex, but will be good for the business of Forex trading.
With regards to our newest sovereign problem, if you were Hungarian would you prefer to own gold or paper of any kind? That is assuming you had any money in the first place to buy gold."
- Jim Sinclair, of JSMineSet.com
Like the euro intervention being useless in the grand scheme of things, so is the gold intervention this morning.
Above $1224 the manipulators will lose their influence in the price of gold. We sure witnessed that last US night in the euro.
The real numbers now that you will not hear on F-TV are $1.19 and then $1.10, below which the euro will collapse. This will return us to the dark ages in Forex, but will be good for the business of Forex trading.
With regards to our newest sovereign problem, if you were Hungarian would you prefer to own gold or paper of any kind? That is assuming you had any money in the first place to buy gold."
- Jim Sinclair, of JSMineSet.com
Thursday, June 3, 2010
Gold Going to Grind Higher
“I expect it’s going to continue to grind higher. I mean the fact that there’s no legitimate currency left for any big deep pools of money, the currencies all seem to be flawed pieces of paper...I think you’ll see more central banks buy gold”
- Bill Fleckenstein referring to the price of Gold.
- Bill Fleckenstein referring to the price of Gold.
Thursday, May 27, 2010
World Collapse Explained in 3 Minutes
The sad thing is, this isn't a joke, still like the guy at the end of the video says, it's called laughing while you sink.
- Nathan McDonald, CEO of Cash2Riches
- Nathan McDonald, CEO of Cash2Riches
Gold Is The Money That Can Be Trusted
Eric King: This was from Jim Sinclair’s eblast today and I thought KWN viewers should take note of it (hat tip). Jim Sinclair: What ever the OTC derivatives do not do to the Investment Banks litigation will. Litigation is both civil and criminal. No civil suit based on derivative can ever go to judgement by jury because it will be a stone loser. Even a bench trial would present significant risk to the defendant. OTC derivatives are the basic problem about which nothing has been done and nothing will be done. That secures the final end which is gold as the only standard of value, measure and storehouse of value functioning as a medium exchange which is the complete description of what money is.
Gold is the money that can be trusted as debt is being added to debt in a pharisaical plan to cure a debt problem.
The fiat system is cooked, and there is simply no good paper currency.
The face of this world is about to change. Sir Richard Russell is correct.
Please protect yourselves because you must. I can point you in the right direction. You must take the action.
http://www.bloomberg.com/apps/news?pid=20601103&sid=apaq8bkKnrqw
Lehman Sues JPMorgan to Recover Billions of Dollars (Update1)
By Linda Sandler and David McLaughlin
May 26 (Bloomberg) -- Lehman Brothers Holdings Inc. sued JPMorgan Chase & Co. to recover tens of billions of dollars in “lost value,” accusing the bank of precipitating its downfall and preventing it from winding down in an orderly fashion.
JPMorgan, which was Lehman’s main short-term lender before its September 2008 bankruptcy, helped cause the failure by demanding more collateral as credit markets tightened during the financial crisis, Lehman said in a complaint filed today in U.S. Bankruptcy Court in New York.
The lawsuit follows a report by Lehman examiner Anton Valukas, who said in March that Lehman might have grounds for suing JPMorgan and other banks.
“On the brink of LBHI’s bankruptcy, JPMorgan leveraged its life and death power as the brokerage firm’s primary clearing bank to force LBHI into a series of one-sided agreements and to siphon billions of dollars in critically needed assets,” Lehman said in the complaint.
Lehman didn’t specify in the complaint an amount for the losses it is claiming as a result of JPMorgan’s actions.
“The lawsuit is ill conceived and the costly litigation will cause a further drain on the limited resources available to the Lehman bankruptcy estate,” Joe Evangelisti, a JPMorgan spokesman said.
“As the examiner’s report makes clear, it was the ill- advised decisions of Lehman itself and its principles to take on perilous leverage and to double-down on subprime mortgages and overpriced commercial real estate and not any conduct by JPMorgan that led to Lehman’s demise and the enormous losses to its various constituents,” he said.
The case is In re Lehman Brothers Holdings Inc., 08-13555, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
Gold is the money that can be trusted as debt is being added to debt in a pharisaical plan to cure a debt problem.
The fiat system is cooked, and there is simply no good paper currency.
The face of this world is about to change. Sir Richard Russell is correct.
Please protect yourselves because you must. I can point you in the right direction. You must take the action.
http://www.bloomberg.com/apps/news?pid=20601103&sid=apaq8bkKnrqw
Lehman Sues JPMorgan to Recover Billions of Dollars (Update1)
By Linda Sandler and David McLaughlin
May 26 (Bloomberg) -- Lehman Brothers Holdings Inc. sued JPMorgan Chase & Co. to recover tens of billions of dollars in “lost value,” accusing the bank of precipitating its downfall and preventing it from winding down in an orderly fashion.
JPMorgan, which was Lehman’s main short-term lender before its September 2008 bankruptcy, helped cause the failure by demanding more collateral as credit markets tightened during the financial crisis, Lehman said in a complaint filed today in U.S. Bankruptcy Court in New York.
The lawsuit follows a report by Lehman examiner Anton Valukas, who said in March that Lehman might have grounds for suing JPMorgan and other banks.
“On the brink of LBHI’s bankruptcy, JPMorgan leveraged its life and death power as the brokerage firm’s primary clearing bank to force LBHI into a series of one-sided agreements and to siphon billions of dollars in critically needed assets,” Lehman said in the complaint.
Lehman didn’t specify in the complaint an amount for the losses it is claiming as a result of JPMorgan’s actions.
“The lawsuit is ill conceived and the costly litigation will cause a further drain on the limited resources available to the Lehman bankruptcy estate,” Joe Evangelisti, a JPMorgan spokesman said.
“As the examiner’s report makes clear, it was the ill- advised decisions of Lehman itself and its principles to take on perilous leverage and to double-down on subprime mortgages and overpriced commercial real estate and not any conduct by JPMorgan that led to Lehman’s demise and the enormous losses to its various constituents,” he said.
The case is In re Lehman Brothers Holdings Inc., 08-13555, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
Wednesday, May 26, 2010
Inflation on its Way
"Don’t be concerned, this is not until after 2011, and it is one full pound of each."
- Jim Sinclair, JSMineset.com
- Jim Sinclair, JSMineset.com
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