Thursday 6 October 2011

Gold is not backed by anything

Silver Circle - Official 60second Trailer


Uploaded by SilverCircleMovie on Oct 5, 2011

"When they control the money, they control everything."

Spread the word.

http://silvercirclemovie.com

Bullish data lifts stocks and commodities

Source: GoldMoney.com
“Risk on” trades returned with a vengeance yesterday, with the news from America of faster than expected manufacturing expansion, increased factory hiring and increasing auto sales allaying fears of a “double-dip recession”. News that German chancellor Angela Merkel will back plans to recapitalise European banks has also contributed to the rise in optimism, though Moody’s downgrade of Italian banks and Italy’s sovereign credit rating has underscored the seriousness of the crisis facing the eurozone.
The Dow Jones tacked on 1.2%, with some predicting that the market bottom on Tuesday could mark a key reversal day, and the start of a bullish period for stocks. Certainly given all of the money printing by the Federal Reserve over the last few years, there’s more than enough ammunition to send stock prices higher – along with commodities, precious metals and eventually producer and then consumer goods. In fact yesterday also saw Cleveland Fed vice-president Joseph Haubrich remark that inflation in America is now running at a “sustained clip” – though of course assuring that this inflation will be “temporary”.
As Jesse’s CafĂ© Americain notes, gold and silver are for the moment defined by hedge fund computers as “risk” trades – in contrast to the summer, when gold prices were boosted by safe-haven bids. In the short-term, the dollar-price of gold is being buffeted by weakness in the euro. However, escalating inflation in America, and/or more quantitative easing from the Fed in response to a strengthening dollar (which will hurt US exports) will certainly boost gold – possibly to over $2,000 within a short period of time.
With US government debt now standing at close to $15 trillion – increasing by $162 billion in just three days – long-term the picture remains as bullish as ever for precious metals. The US government debt-to-GDP ratio now stands at 98.9%.

The European Central Bank Press Release

The European Central Bank PRESS RELEASE

6 October 2011 - Monetary policy decisions

At today’s meeting, which was held in Berlin, the Governing Council of the ECB decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 1.50%, 2.25% and 0.75% respectively.
The President of the ECB will comment on the considerations underlying these decisions at a press conference starting at 2.30 p.m. CET today.

Bank of England Maintains Bank Rate at 0.5% and Increases Size of Asset Purchase Programme by £75 billion to £275 billion

The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to increase the size of its asset purchase programme, financed by the issuance of central bank reserves, by £75 billion to a total of £275 billion.
The pace of global expansion has slackened, especially in the United Kingdom’s main export markets. Vulnerabilities associated with the indebtedness of some euro-area sovereigns and banks have resulted in severe strains in bank funding markets and financial markets more generally. These tensions in the world economy threaten the UK recovery.
In the United Kingdom, the path of output has been affected by a number of temporary factors, but the available indicators suggest that the underlying rate of growth has also moderated. The squeeze on households’ real incomes and the fiscal consolidation are likely to continue to weigh on domestic spending, while the strains in bank funding markets may also inhibit the availability of credit to consumers and businesses. While the stimulatory monetary stance and the present level of sterling should help to support demand, the weaker outlook for, and the increased downside risks to, output growth mean that the margin of slack in the economy is likely to be greater and more persistent than previously expected.
CPI inflation rose to 4.5% in August. The present elevated rate of inflation primarily reflects the increase in the standard rate of VAT in January and the impact of higher energy and import prices. Inflation is likely to rise to above 5% in the next month or so, boosted by already announced increases in utility prices. But measures of domestically generated inflation remain contained and inflation is likely to fall back sharply next year as the influence of the factors temporarily raising inflation diminishes and downward pressure from unemployment and spare capacity persists.
The deterioration in the outlook has made it more likely that inflation will undershoot the 2% target in the medium term. In the light of that shift in the balance of risks, and in order to keep inflation on track to meet the target over the medium term, the Committee judged that it was necessary to inject further monetary stimulus into the economy. The Committee therefore voted to increase the size of its asset purchase programme, financed by the issuance of central bank reserves, by £75 billion to a total of £275 billion. The Committee also voted to maintain Bank Rate at 0.5%. The Committee expects the announced programme of asset purchases to take four months to complete. The scale of the programme will be kept under review.
The minutes of the meeting will be published at 9.30am on Wednesday 19 October 2011.
Note to Editors
The previous change in Bank Rate was a reduction of 0.5 percentage points to 0.5% on 5 March 2009. A programme of asset purchases financed by the issuance of central bank reserves was initiated on 5 March 2009. The previous change in the size of that programme was an increase of £25 billion to a total of £200 billion on 5 November 2009.
Information on the Asset Purchase Facility can be found on the Bank of England website at http://www.bankofengland.co.uk/monetarypolicy/assetpurchases.htm.
Following today’s meeting of the MPC, the Governor and the Chancellor exchanged letters about the expansion of the Asset Purchase Facility. Those letters can be accessed using the links below.
pdf logo Chancellor's letter to the Governor
HM Treasury website, 6 October 2011

Bob Chapman - National Intel Report - October 4, 2011

BEST RANT EVER (CONTAINS NAUGHTY WORDS)


Uploaded by GuildF40 on Oct 5, 2011

Found his channel
http://www.youtube.com/user/FmunkMOC

Gold's New Volatility in Pictures

Published : October 06th, 2011 
Three charts showing just how violent the gold price has become...
Only 12 months ago, the gold price was so placid - quietly making new record highs above $1300 and then $1400 per ounce - that volatility in its daily swings hit the lowest level in half-a-decade.
Hardly the stuff of mania. And it only made buying gold a simpler decision for new and existing investors, especially those borrowing money to do it on the derivatives market. Whereas this summer's surge to (and sharp drop from) $1920 an ounce has already thrown a fat chunk of "hot money" out of the trade.

As you can see, leveraged speculators are fleeing the gold futures and options market at the fastest pace since Lehman Brothers blew up in Sept. 2008. Already shrinking by 40% since the new record peak of start-August, their "net long" betting on gold prices (simply the number of bullish minus bearish contracts) has crashed to barely 600 tonnes equivalent - the smallest level since mid-2009, and a level first reached at the tail-end of 2005.
Now, whichever came first - chicken or egg, price drop or hot-money flight - the end result so far this autumn is a jump in price volatility last seen at (you guessed it) Lehman Brothers' collapse.

"Key characteristics of a safe-haven asset are low price volatility and minimal risk of capital loss," notes the latest Commodities Weekly from French investment bank and bullion dealer Natixis.
"With gold price volatility doubling, and gold prices dropping by more than 10% in just three days [last week], these characteristics no longer apply to gold."
But this loss of what was apparently gold's "safe haven" status hasn't diminished demand. Quite the contrary in fact for physical gold buyers, both in Europe and the US but more critically in the world's No.2 consumer - and fastest-growing source of demand - China.
Reports from bullion bank and secure logistics contacts all point to a surge in gold buying from Asia, with large 400-ounce bars being sucked out of London for turning into kilo-bars in Switzerland to be shipped onto China. Price volatility still applies, however. With bells on.

If you've struggled over the last month with gold's new volatility, then pity buyers and sellers on the Shanghai Gold Exchange. Violence in the domestic Chinese gold price has been worse by one fifth than in US Dollar prices on the London Fix - still the global benchmark price almost 100 years after the end of Great Britain's imperial gold standard.
That's because London is still central clearing for the vast bulk of the world's gold, where it sits ready for shipping wherever else it will find a use. Increasingly, that somewhere else is China, even though it's now the world's No.1 mining producer each year. Chinese refineries lead new applications to produce London Good Delivery bars, the 400-ounce wholesale standard worldwide. Yet no Chinese-made bars should (as yet) have reached London's Good Delivery bullion vaults, despite their producers devoting themselves to gaining LGD accreditation. Because China's borders are closed to exports of gold.
This one-way traffic - into China - helped last year to plug the 360-tonne gap between China's world-beating mine output and it's galloping demand for gold. The huge volatility in Shanghai premiums over London gold is of course a function of the metal's underlying volatility. But it's clearly being extended by the logistical bottlenecks and delays that are guaranteed to hit this very physical trade, now trying to ship ever-more gold bullion from the other side of the world.

Peter Schiff - What to Expect Next for Stocks, Gold & the Dollar

With continued volatility in all global markets, including gold and silver, today King World News interviewed Peter Schiff, CEO of Europacific Capital.
Click Here For The Full King World News Interview With Peter Schiff

Platinum and palladium prices subdued by economic uncertainty

Platinum and palladium prices subdued by economic uncertainty
Source : GoldMoney.com
Platinum and palladium prices remain under pressure. In yesterday's trading session platinum fell to $1,448 per troy ounce, while palladium dropped as low as $540 per ounce – though the latter recovered slightly afterwards. The gold price is now 10% higher than the platinum price – the highest gold premium relative to platinum for two decades. Base and non-ferrous metals also came under sales pressure.

Yesterday evening the Comex gold price slid below $1,600 per troy ounce, recovering afterwards to the important technical mark of $1,610 per troy ounce. In recent trading sessions the gold price has been fluctuating between $1,610 and $1,675 per troy ounce. Consolidation is the name of the game in the gold market for the moment. The situation at the silver markets is similar. Yesterday the white metal dropped below $29 per ounce, recovering afterwards to the psychologically important mark of $30 per ounce.

At the US Congress, Federal Reserve Chairman Ben Bernanke was asked about the impact that an escalation of the European sovereign debt crisis could have on the US economy. The Fed Chairman answered that there are no safe bets; even if the American banking system hardly owned any Greek debt, and even if the US banks had been able to stock up on liquidity since the heyday of the financial crisis, a disorderly Greek default would cause new turbulences at the financial markets. In such a scenario even the US banking system would not be immune to the aftershocks from a European banking earthquake, and the financial markets would suffer a shortage of liquidity.

Should this be the case, the Fed was already prepared to implement new programmes to provide the markets with liquidity. The Fed has signed a swap-agreement with the European Central Bank (ECB) to provide the ECB with enough dollars in case of emergency, so as to avoid a crash in the interbank lending market. But in the event of a disorderly Greek default, Europe would most certainly drag the US economy down with it. It's just a question of defining the term "disorderly", since a debt default will always be a debt default – regardless of the language used to soothe financial markets’ pain.

James Turk AIER Lecture—Bullion and Beyond: A World of Choices for Gold Investors

James Turk's AIER speech
2011-OCT-04

Those who hold gold and silver who have been perturbed by the recent sharp correction in both metals cannot lose sight of the fundamentals underpinning the bull markets in these assets. James Turk's presentation in late July on behalf of the GoldMoney Foundation to the non-profit American Institute for Economic Research provides many fundamental reasons why.

James outlines why gold should be considered "money" rather than an investment, and why the fiscal policies of governments and central banks all over the world are robbing paper currencies of their purchasing power – and thus slowly but surely propelling the value of gold, silver, platinum and palladium higher. Those seeking to understand the long-term forces propelling gold prices higher would do well to watch this video.


Uploaded by AIER33 on Aug 25, 2011

The AIER lecture, Bullion and Beyond: A World of Choices for Gold Investors, was given at the E.C. Harwood Library, on July 21, 2011. Speakers at the event include:

• Gregory van Kipnis, Chairman, American Investment Services, Inc.
Introductory Seminar Remarks - What about Gold During Deflation?

• James Turk, Director GoldMoney Foundation
Physical Gold: Money for the 21st Century

• Robert Miller, CEO of Miller Mathis, a division of Rodman & Renshaw LLC
Investing in Gold Mining Stocks - An Investment Banker's Perspective

• Dave Nadig, Director of Research, IndexUniverse
Investing in Gold ETFs - Facts, Fantasies, Paranoia & Delusions

• John Barry, President & CEO, American Investment Services, Inc.
Concluding Remarks

• Questions and Answers

Bob Chapman - GodlikeProductions - October 4, 2011

Robert Kiyosaki on Conspiracy Of The Rich 2011

Robert Kiyosaki backing away from Silver ? WTF ? Is Silver Over ?


Uploaded by SilverMapleLeafs on Oct 5, 2011

http://silvermapleleafs.blogspot.com

US Mint Sells 1 Million Silver Eagles First 2 Days of October!

Yesterday we advised readers that the US Mint sold 737,000 Silver Eagles during the 1st day of October!
Sales slowed down slightly on Tuesday, but remained brisk enough to cap a 2 day sales total of over 1 Million ounces sold during the first two business days of October!
At this pace the 2010 sales record of 34,662,500 ounces will be surpassed by....tomorrow.

This is absolutely unprecedented physical investment demand for silver. If the current sales pace continues for US Mint silver products, look for the mint to soon again suspend all silver bullion production, even with the San Francisco Mint now online.

Full Article Here
Source : silverdoctors.blogspot.com