Jim Rogers tells it like it is!

Jim Rogers: Bernanke Is Lying to Us - Tuesday, October 11, 2011

Jim Rogers tells it like it is.

In the EPJ Daily Alert, I have been pounding away at the fact that no new QE is required, that the money supply (M2) is exploding. Rogers correctly points to this money growth in the clip below.

Also, Larry Kudlow is correct in his view that the European Central Bank is likely to join the Fed in the money printing. If they do, it will be the first time ever that the world could face a massive global inflation.

Kudlow is correct that the stock market will skyrocket under these conditions and Rogers is correct that commodities will soar.

Prepare yourself for climbing prices like you have never seen before, to differing degrees both Rogers and Kudlow know what is coming.

More…

The Chinese Mean To Control The Global Gold Market

Get ready for the Pan Asian Gold Exchange, scheduled to open in June, 2012 in Kunming City, Yunman Province– the gateway to all of Southeast Asia. This is serious, as the Pan Asian Gold Exchange is a part of China’s five year plan– which means it is part of China’s strategy for dominance in global financial markets and the global economy.

Pan Asian will allow Chinese to speculate in gold futures contracts or buy physical gold through an account with a bank or broker. All 320 million customers of the giant Agricultural Bank of China will. simply be able to use their Renminbi, the Chinese currency, from their bank accounts to trade gold. Sounds bloody dangerous doesn’t it...

- Read the full story here:

http://www.forbes.com/sites/robertlenzner/2011/09/27/the-chinese-mean-to-control-the-global-gold-market/

Jewellery in Canada

Jim Sinclair - Why Gold?

During reactions in gold, the degree of gold and gold share holders pessimism is EPIC and without cause.

Why Gold?

1. Gold is a currency.
2. Gold is competitive to paper currency.
3. Gold is not a commodity
4. Gold is a barometer of fear.
5. Gold is a barometer of confidence in government.
6. Gold is insurance.
7. Gold is insurance against government gone mad.
8. Insurance is not something you trade.
9. Gold is the financial high ground when global debt problems exist.
10. Gold in your hand eliminates all counter party risk.
11. Every single currency is paper backed by nothing.

Stay the course. Nothing is solved, nor will it be.

Gold will be violent. Gold is nowhere near fully priced.

Regards,

 
Jim Sinclair

Jewellery in Canada

Gold has formed a bottom at $1535

Today’s hard overrun of MAJOR support at $1584/$1675 and down to a low of $1535 (in spite of Friday’s punch down into that major support on a low of $1631.70), produced a 105 point rally action back up to $1640, and a close of $1630. We did not expect an overrun of 1584 at worst, but today’s rally back and close into the core of the support bracket itself indicates the beginning of a bottom action has begun.

We now expect a bottom action to occur at or above today’s low of $1535. Today’s extreme sell off and hard rally action does make the possibility of a narrow bottom quite possible.

The drop from $1923.70 to $1535 has generated an impressive wall of resistance, but which could be overcome in relatively short order if gold generates a narrow V bottom followed by hard rally action. Even so, the bottom should be visibly resolved here within another 14 to 15 days at most ff we are to have a moderately fast or a fast return to a test of the recent high ($1923.70), and thereafter, higher highs.

Our internal figures remain long term bullish…

- CIGA Kenny, via JSMineset.com

Charms and Beads

Market Violence Will Create Large Bear Trap

This is a repeat of 2009 – actually even more extreme readings than 2009. We are severely oversold today. Anyone not buying here does not believe in the fundamental story. In my opinion, this will be a huge entry point by 2012.

- CIGA Eric, via JSMinset.com

China’s Gold Investment to Top Record: Cheng

Gold investment demand in China is likely to top a record 200 metric tons this year, the World Gold Council said.

The country’s investment demand surged 70 percent in 2010 to an all-time high of 187 tons, said Albert Cheng, the Far East managing director at the World Gold Council.

China’s “investment demand has picked up exponentially,” Cheng said yesterday in an interview in Montreal. “The financial crisis has triggered people to be cautious of anything they don’t understand,” boosting demand for bullion as an alternative asset.

Gold futures have surged 29 percent this year, touching a record $1,923.70 an ounce on Sept. 6. The metal climbed as escalating debt woes in Europe and the U.S. boosted demand for haven assets. India is the world’s top bullion buyer followed by China. The two countries accounted for 54 percent of world gold consumption in the second quarter, Cheng said.

The council has estimated demand from China may double in 10 years. The forecast may be “too conservative,” Cheng said.

The Pan Asia Gold Exchange (PAGE) - This is Huge!

The Pan Asia Gold Exchange (PAGE)

The Pan Asia Gold Exchange (PAGE), backed by the Chinese Government, opens for business in the next few months and is expected to be fully operational by the end of 2011. This development represents an unprecedented challenge to the entrenched institutions that effect the price of gold and at the same time supports Beijing’s ambitions for world currency reserve status. In short, there is a new gold trading market in the wings with the potential to change global supply and demand dynamics and how gold can be traded.

Here’s the background:

PAGE will allow individuals to buy physical gold from their computer at home. Initially, the 200 million or so clients of Agriculture Bank of China will be able to buy 10-ounce mini contracts on the PAGE. Later, non-Chinese will be able to purchase International Spot Contracts through the exchange.

Ultimately, PAGE will provide an alternative playing field for global gold investors who hitherto have had to rely on unsecured gold futures contracts and the bullion banks to determine the price for gold. With PAGE, a gold buyer will be able to receive a 90-day International Spot Contract and actual title to the gold he/she buys, not just a futures contract or an unsecured note from a bullion bank, or an international banking institution. The PAGE gold’s in 10 ounce bars can be delivered to the customer with little effort. The international bullion banks, have been accused for years of manipulating the gold price. Such manipulation will now be more difficult.

PAGE could pose a challenge to the near monopoly on gold price discovery currently held by the members of the London Bullion Market Association (LBMA) that include many large banks.

For years, their practice has included leasing gold often from central banks and then selling it into the market to drive the price down. Leasing and selling of gold has been a profitable game for the savvy players involved. Every game has a loser, however, and in this case it has been less sophisticated gold investors. The selling activity has often created panic among gold investors who sell at the wrong time allowing the short sellers to buy back the bullion at low prices.

PAGE provides an alternative route that bypasses the bullion banks of the LBMA.

PAGE also provides a new way for international investors to own Chinese currency — the Renminbi (RMB). Here’s how: The buyers will purchase gold contracts denominated in RMB. They can then hedge out the gold in the dollar-based gold markets. As a result, they effectively own RMB.

We see here yet another example of multiple Beijing initiatives opening the RMB to world investors. Over time, these innovations will enhance the value of the RMB and create a deeper, more liquid foreign exchange presence for the Chinese currency. PAGE is another internationalization step forward for the RMB in the direction of world reserve currency status.

The advantages of being the world reserve currency, as well as the responsibilities involved, have not been lost in the Chinese government. They won’t rush the process, but they clearly have a long term plan.

- Via JSMineset.com

John Embry interview with James Turk at GATA's Gold Rush 2011

John Embry (http://www.sprott.com) and James Turk, Director of the GoldMoney Foundation, talk about the price of gold and the US debt downgrade.

They discuss Sinclair's $1,764 level and how the majority of observers still disparage gold, even if perception is slowly changing. They explain how the physical gold market is taking charge of gold price discovery and how strong physical demand will drive the price much higher.

They talk about how the price of gold will react in another market meltdown, similar to 2008, and whether there will be a sell-off. They conclude that this time the flight to safety will be more important than the rush for liquidity and that gold is uniquely placed to act as a safe haven, especially with T-bills and other traditional safe assets discredited by US debt issues.

John and James explain how important it is to own tangible asset that are free of counterparty risk. They also talk about some relatively safer currencies like the CAD, AUD and CHF, and conclude that, although better than the US dollar, they also have their flaws.

They talk about mining stocks and how undervalued they are. They mention key levels to watch in the XAU and HUI, as signals of a start to the mining stock rally. They move on to look at sovereign debt issues and how they expect other countries, like the UK, to suffer downgrades soon as well.

John also explains that China, despite its huge potential, is not without issues and he fully expects to see a lot of instability there.

This interview was recorded on August 5 2011 in London.

Bernanke is in no position to announce another round of QE

Politically Bernanke is in no position to announce another round of QE. If he were to try this route once again, a route which has obviously been an abject failure considering that between QE1 and QE2 over $2.5 TRILLION was spent with nothing to show for it except a collapsing Dollar and rampant inflation in energy and food prices, he would unleash a firestorm of protest here in the US and certainly abroad by our largest creditors, China in particular.

- Trade Dan

Mining Share Ratio To Gold Back At Pre-QE1 Levels

Gold’s move to a new high today above $1764 has not happened for technical reasons. There are fundamental problems in the entire Western World Finance that lack solution.

Gold is heading exponentially beyond any expectations of the short of gold share hedge funds.

Weakness in gold shares is manic at this point, and the shorts will not see the top in gold they expected now or for years to come.

Respectfully,

Jim Sinclair of JSMineSet.com

The World's Debt has Grown Unsustainable!

- Picture via JSMineSet.com

Jim Sinclair interviewed by James Turk

James Turk, Director of The GoldMoney Foundation, talks to Jim Sinclair, host of http://www.jsmineset.com/, about his successful gold price predictions, US debt problems, how to ride the trend and the second phase of the gold bull. It's a gear change from arithmetic to exponential growth as public perceptions about the safety of the US dollar changes. The debt ceiling debate is a wake up call for people all over the world. The video was recorded on August 5 2011 at the GATA conference in London.

Jim Sinclair on CNN Your Money

Jim Sinclair on CNN Your Money. Note their reaction to his prediction of gold $1650. Funny times.

The Cat is Out of the Bag, Gold to Soar, Dollar to Crash

There is no functional hedge against the downgrade of US Treasuries that is sure to come with or without a default except gold.

The cat is out of the bag. The political opposition can back the present administration into a corner on the most important issue, debt.

If that is the case with debt, then what else could they do it with?

To assume there will be a default is extreme, however within a week we will know. There are those in the political opposition that might go to any length to cripple the present administration.

The only conclusion that I can come to is that you should NOT take your gold hedges off. At $1764 a runaway gold bull market becomes an exponential run away gold bull market.

After $1754 Alf and Armstrong become the predictors of note for Gold at $3000 to $12,500.

Respectfully,
Jim Sinclair of JSMineSet.com

The Die is Cast

My Dear Friends,

Have you thought about all the dramatics now taking center stage in the media? What compromise will be adopted that will allow for the US to avoid default by raising the debt ceiling?

Raising the debt ceiling is the problem and not by at means a solution. The race between dropping revenues and increasing costs will not be settled by politicians that do not even understand the problem.

The resignations of key economic personalities in the present Administration is systematic of the solid nature of the downward spiral that has gripped Western finances since the failure of OTC derivatives turned a normal recession into a long term depression.

There is no event that will turn the tide of the ramifications for poor economic management. Nothing can stop Gold, Silver, the Swiss and the Cando now.

The present drama of tax increases and spending cuts, like the release of oil, means nothing whatsoever even in the medium term.

The damage is done as the damage is cumulative. Day to day events are irrelevant. Day to day market activity is interesting but meaningless.

The die is cast. All we can hope is that gold is not headed to $12,500.

Regards,
Jim Sinclair