GOLD :

Gold is Money: EU Sanctions on Iran include gold and silver purchases.

2012-01-24T11:48:00.000-08:00

Written By Kenneth Schortgen Jr on Monday, January 23, 2012 | 9:02 AM

Think gold is not money to central banks and governments? Just look at one of the prohibitions the EU imposed on Iran recently in their economic sanctions.

Reuters report that the EU has agreed to freeze the assets of the Iranian central bank and ban all trade in gold and other precious metals with the Iranian Central Bank and other public bodies in Iran.

According to IMF data, at the last official count (in 1996), Iran had reserves of just over 168 tonnes of gold. The FT reported in March 2011 that Iran has bought large amounts of bullion on the international market to diversify away from the dollar, citing a senior Bank of England official.

Currency wars continue and are deepening. - Zerohedge

You would think that the EU would LOVE to get rid of their 'relic' metals in exchange for oil. That is, unless you realize the propaganda that gold and silver are not money is a bold faced lie.

the daily economist

2012 : OUTLOOK FOR GOLD PRICES - CCTV News

2011-12-31T00:33:00.001-08:00

Uploaded by cctvnewsenglish on 28 Dec 2011 - Gold prices have fallen 16 percent since reaching a record high, above 1,900 U.S. dollars an ounce in September. But 2012 looks to be another glittering year, with many analysts and institutions predicting gold prices will again rise.

Goldman Sachs says gold prices will continue to go up, and will average one thousand 940 dollars per ounce over the next 12 months. Meanwhile, Citigroup's metals expert says gold could appreciate to three thousand 400 dollars in the next year or two. Although gold's decline has shown extreme risk aversion on the market, the analyst at Deutsche Bank says they see a recovery in gold prices next year.

2012 Precious Metals Outlook with Jim Wyckoff

2011-12-20T00:54:00.000-08:00

Uploaded by KitcoNews on 16 Dec 2011 - As part of the Kitco News "Precious Metals Outlook 2012", Jim Wyckoff brings us this special edition of "Technically Speaking" to present us with his outlook for 2012.

European debt crisis boosting gold demand.

2011-11-22T16:36:00.001-08:00

Marcus Grubb, managing director of investment research at the World Gold Council, talks about the outlook for gold after demand rose 6 percent in the third quarter from a year earlier. He speaks with Owen Thomas on Bloomberg Television's "Countdown." (Source: Bloomberg)

Rising silver & gold demand in China.

2011-11-21T05:13:00.001-08:00

Uploaded by hjmanan on 20 Nov 2011 - Banking in China.

Gold Rush Hits US House Parties

2011-11-15T19:43:00.001-08:00

Uploaded by VOAvideo on 15 Nov 2011 - As world financial markets rise and fall, interest in gold holds fast. As interest in buying gold has spread, so has the popularity of gold parties, where participants sell their golden treasures and walk away with cash.

Gold found in South Africa mine's waste

2011-11-06T01:30:00.000-07:00

Uploaded by AlJazeeraEnglish on Nov 4, 2011 - In a single gold mine in South Africa, an expected $2.2 billion worth of gold can still be extracted from just one dump site's waste material.Using water cannons and chemical treatements, a single mine can hope to extract about 3 grams in every tonne.

It may not sound like much but if there is 140 million tonnes of waste lying around - the numbers start adding up.High prices means all the effort that goes into sourcing the precious metal may well be worth it.

Germany 4.0 Making its Mark.

2011-10-04T08:13:00.001-07:00

Uploaded by RussiaToday on 3 Oct 2011 - the return of the deutschemark is imminent.

Gold rush ravages Malaysian forest!

2011-09-30T02:07:00.000-07:00

Uploaded by AlJazeeraEnglish on 29 Sep 2011 - Malaysian forestry officials have warned that illegal mining is polluting rivers, causing soil erosion and damaging trees in the country's pristine forests.Mining for gold has been taking place in Malaysia's southern state of Johor since the 1960s, but as gold prices have soared in recent months the hunt for the precious metal has intensified.

Gold starting to lose glitter following slump.

2011-09-27T01:17:00.001-07:00

Uploaded by AlJazeeraEnglish on Sep 26, 2011 - After hitting a high of $1,900 an ounce in early September, the price of gold has fallen to just above $1,500.European policymakers are struggling to resolve the region's debt crisis, and such fears would normally drive the price of gold higher.But with the commodity already at such lofty heights, many investors now feel the only really safe bet is cash itself, and hence the selling.

Gaddafi gold-for-oil,

2011-09-21T02:40:00.001-07:00

dollar-doom plans behind Libya 'mission'?Uploaded by RussiaToday on May 5, 2011 - More speculation has been raised on the reasons for NATO's intervention in Libya. As RT's Laura Emmett reports, the organisation may have been trying to prevent Gaddafi from burying the American buck.

Gold Chart - Last 10 years

2011-09-20T00:57:00.000-07:00

the USA dollar since sept 2001 is now worth only 14.3 cents , when compared to the price of gold over the last ten years , clearly the entire world no longer trusts nor wants the USA dollar.

Gold Chart - Last 10 years

Gold ATM sure to make a mint

2011-09-03T04:42:00.000-07:00

Uploaded by ReutersVideo on 24 Sep 2010 :: As gold nears $1,300 an ounce, now $1,800+ (3rd Sept 2011) "Gold to go" unveils its first gold dispensing ATM in Europe at Madrid´s Westin Palace Hotel .

Goldvein, Virginia : Gold Prices Luring Many to Start Prospecting

2011-08-26T00:17:00.000-07:00

Uploaded by VOAvideo on Aug 25, 2011 - As gold prices continue to rise around the world, there is renewed interest in panning for gold in certain parts of the United States. In the late 1800's the state of Virginia had a thriving gold-mining industry. Today there is still gold to be found in the streams of central Virginia. The lure of easy money is drawing many to buy prospecting equipment and head into nearby streams. But as Jeff Swicord reports from Goldvein, Virginia, striking it rich is not that easy.

Gold rises as Asian markets slide

2011-08-19T12:47:00.000-07:00

Uploaded by AlJazeeraEnglish on Aug 19, 2011 - For investors in this economic climate, it seems that all that glitters is gold. The cost of the precious metal hit an all-time high on Friday after its seventh consecutive weekly gain. The metal has already risen by 14 per cent in August.It is being called a modern day gold rush, and is fueled by the dismal performance of the stock markets across Asia pacific.

Casino Capitalism Centers failures makes gold stronger.

2011-08-18T12:37:00.000-07:00

Published on Aug 18, 2011 by Euronews - The world financial markets have again been taking a beating due to renewed worries about recession and Europe's debt crisis.European bourses suffered their biggest daily fall in two and a half years - with the top 300 shares down five percent at the close.The sell off was on both sides of the Atlantic - with the Dow Jones Industrial Average down around four percent for most of the session - made worse by a decline in factory activity in the US Mid-Atlantic region and an increase in the number of Americans claiming new jobless benefits last week.

Gold Hits New Record After Chavez Announces Plan To Pull Reserves From US, European Banks

2011-08-18T12:28:00.000-07:00

Thursday, August 18, 2011

Despite a report from the World Gold Council showing that demand for the precious metal has subsided, gold soared to a new record high today on the back of another stock market plunge and an announcement from Venezuelan President Hugo Chavez that the country’s gold mining industry would be nationalized.

Gold touched a new record high of around $1827 dollars an ounce as the Dow Jones plunged by 500 points in early trading.

Gold soared to new heights even in the face of aWorld Gold Council report that said demand was down 37% year on year.

However, the report noted that there was “increasing acceptance of higher price levels” globally, which explained a modest 3% fall in recycling gold on the supply side.

Although today’s new high for gold is obviously being driven by a flight to safety as the stock market crumbles, Hugo Chavez’s announcement last night that he was to nationalize the country’s gold mining industry undoubtedly has had an impact on today’s trading.

Prison Planet - read full posting

2011 Gold Rush Is On

2011-08-11T17:19:00.000-07:00

VOAvideo on Aug 11, 2011With the price of gold hovering around $1,800 an ounce, gold buyers haven't been this busy in many years. In New York, the buyers and traders of gold have a standing room only business. VOA's Bernard Shusman in New York City reports.

Gold New High

2011-08-11T12:55:00.000-07:00

Thurs 11 Aug 2011

Market jitters cause Thai gold rush.

2011-08-11T09:56:00.000-07:00

Uploaded by AlJazeeraEnglish on Aug 10, 2011 - Thailand is taking part in the global gold rush. Concerns over the global recession and debt crisis in Europe and the US prompted many Thais to buy gold as a safe haven amid market jitters across the region. There is so much demand for it that the Thai Gold Traders Association says some shops have run out. Al Jazeera's Veronica Pedrosa reports from the capital Bangkok.

'Greek default hype part of Euro vs Dollar global currency war'.

2011-07-23T07:00:00.000-07:00

RussiaToday on Jul 22, 2011 - A major U.S. credit agency says it will downgrade the Greek debt to 'default status' as a result of the second bailout for the country. The plan agreed by EU leaders, includes both government and private loans totaling around 150 billion euros. For a broader discussion on the state of the European economy we're joined live from Germany by William Engdahl, author of 'Gods of Money'.

USD & World Trade - The Theft Under Our Nose.

2011-07-16T22:23:00.000-07:00

The US have stole the world resources by giving valueless paper in return. They stole at least USD 14 trillon worth of world resources and still the world is missing the plot. USD14 trillion is USA's total debt as at May 2011 and its growing at USD1 trillion p.a This means every year USA steals USD1 trillion worth of our resources under our nose by printing paper currency and the world is still blind to the theft.

If only the Muslim world wakes up. If only the Muslim world finds an alternative other than USD in trades between itself. It will begin to at least stop some of the thieving. If only the Muslim world becomes a common market. In trades with non Muslim countries it can first try barter trade. When that limit has been reached exchange of each others currencies. And when forced then can use yuan or euro cautiously lest they become another USD. Muslim intellect must sit and discuss solutions to this problem.

But this will never happen when we have Muslim nations in blind support of the US. Much of these nations' investments are in the US including real property. It is difficult to dethrone the USD in the light of such fundamental compromises of principles.

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BRICS credit: Local currencies to replace dollar.

2011-07-03T11:42:00.000-07:00

SANYA: Brazil, Russia, India, China and South Africa - the BRICS group of fastest growing economies - Thursday signed an agreement to use their own currencies instead of the predominant US dollar in issuing credit or grants to each other.

The agreement, the first-of-its-kind, was signed at the 3rd BRICS summit here attended by Indian Prime Minister Manmohan Singh, China's Hu Jintao, Brazil's Dilma Rousseff, Russia's Dmitry Medvedev and South Africa's Jacob Zuma.

"Our designated banks have signed a framework agreement on financial cooperation which envisages grant of credit in local currencies and cooperation in capital markets and other financial services," Manmohan Singh told reporters at a news conference with other BRICS leaders.

But the agreement is confined to credit and not trade. BRICS economies hold 40 percent of the world's currency reserves, the majority of which is still in US dollars.

The BRICS summit is being held in the coastal city of Sanya in China's Hainan island.

The joint presser was held after the leaders held deliberations on the international situation, and financial, development, climate and security issues.

Manmohan Singh said: "We have had very fruitful discussions. We have reviewed the international situation, discussed international economic, financial and trade issues, the challenges of sustainable development, food security, energy security and climate change."

The grouping is significant because it is expected to have a healthy global presence in the future as the member-countries are the fastest growing economies and are projected to contribute 48 percent to the global economy in the next decade.

At present they account for 40 percent of the world's population and 20 percent of the global Gross Domestic Product (GDP).

The Economics Times | Apr 14 2011

Gold Value Soars.

2011-06-11T01:47:00.000-07:00

VOAvideo on 10 Jun 2011 - Mounting debt in the United States and default worries in Europe remain a concern for the global economy. And recently, a United Nations report warns of a possible collapse of the dollar. Meanwhile, the value of gold is at record levels, prompting some to say that countries should consider selling their gold to pay off debt. But many experts disagree with such a strategy. VOA's Philip Alexiou has more in this report.

Why Gold Is Going Higher?

2011-06-07T12:49:00.000-07:00

While there are many reasons that gold and silver are going to keep moving higher as the fiat currencies trend lower, at our recent Casey Research Summit in Boca Raton, faculty member Mike Maloney pointed out a fact that, while obvious in hindsight, I had never heard mentioned previously.

Namely that during the last major precious metals bull market in the 1970s, only about 10% of the world could own gold – either due to legal restrictions or a lack of liquid capital.

Today, few countries prohibit gold ownership, and a far higher percentage of the world’s population has transitioned out of poverty.

China provides the most germane example, having legalized gold and silver ownership for private citizens in 2004, and through the explosive growth in national GDP that has caused Chinese gold purchases to skyrocket.

Confirming the point, the following is an excerpt from a recent Wall Street Journal article:

Read full report :

Russia Says IMF Chief Jailed For Discovering All US Gold Is Gone.

2011-06-02T04:47:00.000-07:00

May 31, 2011: Sorcha Faal, and as reported to her Western Subscribers

A new report prepared for Prime Minister Putin by the Federal Security Service (FSB) says that former International Monetary Fund (IMF) Chief Dominique Strauss-Kahn [photo with Putin top left] was charged and jailed in the US for sex crimes on May 14^th after his discovery that all of the gold held in the United States Bullion Depository located at Fort Knox [photo 2^nd left] was ‘missing and/or unaccounted’ for.

According to this FSB secret report, Strauss-Kahn had become “increasingly concerned” earlier this month after the United States began “stalling” its pledged delivery to the IMF of 191.3 tons of gold agreed to under the Second Amendment of the Articles of Agreement signed by the Executive Board in April 1978 that were to be sold to fund what are called Special Drawing Rights (SDRs) as an alternative to what are called reserve currencies.

This FSB report further states that upon Strauss-Kahn raising his concerns with American government officials close to President Obama he was ‘contacted’ by ‘rogue elements’ within the Central Intelligence Agency (CIA) who provided him ‘firm evidence’ that all of the gold reported to be held by the US ‘was gone’.

Upon Strauss-Kahn receiving the CIA evidence, this report continues, he made immediate arrangements to leave the US for Paris, but when contacted by agents working for France’s General Directorate for External Security (DGSE) that American authorities were seeking his capture he fled to New York City’s JFK airport following these agents directive not to take his cell-phone because US police could track his exact location.

Once Strauss-Kahn was safely boarded on an Air France flight to Paris, however, this FSB report says he made a ‘fatal mistake’ by calling the hotel from a phone on the plane and asking them to forwarded the cell-phone he had been told to leave behind to his French residence, after which US agents were able to track and apprehend him.

Within the past fortnight, this report continues, Strauss-Kahn reached out to his close friend and top Egyptian banker Mahmoud Abdel Salam Omar to retrieve from the US the evidence given to him by the CIA. Omar, however, and exactly like Strauss-Kahn before him, was charged yesterday by the US with a sex crime against a luxury hotel maid, a charge the FSB labels as ‘beyond belief’ due to Omar being 74-years-old and a devout Muslim.

In an astounding move puzzling many in Moscow, Putin after reading this secret FSB report today ordered posted to the Kremlin’s official website a defense of Strauss-Khan becoming the first world leader to state that the former IMF chief was a victim of a US conspiracy. Putin further stated, “It’s hard for me to evaluate the hidden political motives but I cannot believe that it looks the way it was initially introduced. It doesn’t sit right in my head.”

Interesting to note about all of these events is that one of the United States top Congressman, and 2012 Presidential candidate, Ron Paul [photo bottom left] has long stated his belief that the US government has lied about its gold reserves held at Fort Knox. So concerned had Congressman Paul become about the US government and the Federal Reserve hiding the truth about American gold reserves he put forward a bill in late 2010 to force an audit of them, but which was subsequently defeated by Obama regime forces.

When directly asked by reporters if he believed there was no gold in Fort Knox or the Federal Reserve, Congressman Paul gave the incredible reply, “I think it is a possibility.”

Also interesting to note is that barely 3 days after the arrest of Strauss-Kahn, Congressman Paul made a new call for the US to sell its gold reserves by stating, “Given the high price it is now, and the tremendous debt problem we now have, by all means, sell at the peak.”

Bizarre reports emanating from the US for years, however, suggest there is no gold to sell, and as we can read as posted in 2009 on the ViewZone.Com news site:

“In October of 2009 the Chinese received a shipment of gold bars. Gold is regularly exchanges between countries to pay debts and to settle the so-called balance of trade. Most gold is exchanged and stored in vaults under the supervision of a special organization based in London, the London Bullion Market Association (or LBMA). When the shipment was received, the Chinese government asked that special tests be performed to guarantee the purity and weight of the gold bars. In this test, four small holed are drilled into the gold bars and the metal is then analyzed.

Officials were shocked to learn that the bars were fake. They contained cores of tungsten with only a outer coating of real gold. What's more, these gold bars, containing serial numbers for tracking, originated in the US and had been stored in Fort Knox for years. There were reportedly between 5,600 to 5,700 bars, weighing 400 oz. each, in the shipment!”

To the final fate of Strauss-Kahn it is not in our knowing, but new reports coming from the United States show his determination not to go down without a fight as he has hired what is described as a ‘crack team’ of former CIA spies, private investigators and media advisers to defend him.

To the practical effects on the global economy should it be proved that the US, indeed, has been lying about its gold reserves, Russia’s Central Bank yesterday ordered the interest rate raised from 0.25 to 3.5 percent and Putin ordered the export ban on wheat and grain crops lifted by July 1^st in a move designed to fill the Motherlands coffers with money that normally would have flowed to the US.

The American peoples ability to know the truth of these things, and as always, has been shouted out by their propaganda media organs leaving them in danger of not being prepared for the horrific economic collapse of their nation now believed will much sooner than later.

[Ed. Note: Western governments and their intelligence services actively campaign against the information found in these reports so as not to alarm their citizens about the many catastrophic Earth changes and events to come, a stance that the Sisters of Sorcha Faal strongly disagrees with in believing that it is every human beings right to know the truth. Due to our missions conflicts with that of those governments, the responses of their ‘agents’ against us has been a longstanding misinformation/misdirection campaign designed to discredit and which is addressed in the report “Who Is Sorcha Faal?”.]

source :

Gold rush: All change for the world's favourite metal.

2011-05-30T11:26:00.000-07:00

Gold's position as the ultimate storer of value has remained largely unchallenged for centuries.

The metal's rarity not only meant it became a recognised and trusted form of payment, but also bestowed upon it an almost mystical allure.

This came about not through historical accident or coincidence, but for the simple reason that nothing else fitted the bill; almost every other element is either too common, reactive, corrosive or gaseous. And most of those that aren't are just too scarce.

Throughout history emperors, kings and queens, governments, central banks and investors have trusted gold to maintain its value.

This is simply because gold is a physical asset with a finite supply, unlike cash, equities and bonds, which can be printed or issued at will.

For investors, therefore, it has always been seen primarily as a good hedge against inflation - traditionally, few people bought gold to make money, simply to protect themselves against losing it.

Price surge

But all this is changing. Gold has risen in value every year for the past 10 years, during which its price has risen fivefold to more than $1,500 an ounce.

No longer, therefore, is gold seen simply as a way to store value, but as a genuine investment opportunity offering the potential to make a serious return.

BBC 15May 2011 - read full report

Gold Price New High.

2011-04-26T06:39:00.000-07:00

Apr 25, 2011 - Is US Greenbakcs going down the drain & taking all paper monies with it?

Gold, Silver Set Record High on China Buying Bets

2011-04-25T03:26:00.000-07:00

Commodities – Metals

Spot Gold (NY Close): $1506.85 // +0.60 // +0.04%

Prices gapped higher through resistance at $1508.95, the 200% Fibonacci extension of the 3/7-3/15 downswing, to challenge the top of a rising channel in place since mid-March. A break above this boundary exposes the 238.2% Fib at $1533.44. The 200% Fib level has been recast as near-term support.

Precious metal prices soared in overnight trade following a report from Century Magazine that claimed China plans to invest some of its more than $3 trillion in FX reserves in various assets including energy and precious metals. PBOC chief ZhouXiaochuan has said the current build-up has exceeded “reasonable” levels, while independent reports have pegged the “right” amount of FX reserves for China at no more than $1.3 trillion.

Spot Silver (NY Close): $47.25 // +0.65 // +1.40%

Prices gapped above resistance at the top of a rising channel in place since late January, setting a new record high at $49.78. The metal is now in uncharted territory, making forecasting decidedly difficult, but deeply overbought relative strength studies suggest the threat of reversal is increasingly high. The channel top, now at $46.91, stands as near-term support.

The short-term directional correlation between gold and silver remains firm, suggesting the two metals will continue to move along the same trajectory. The gold/silver ratio has set a new record low however, meaning the cheaper metal is likely to continue outperforming its more expensive counterpart.

Daily FX | 25 April 2010 - read full post

GOLD RECORD HIGH

2011-04-18T01:34:00.000-07:00

Monday Apr 18, 2011

A Comeback for the Gold Standard?

2011-03-15T09:32:00.000-07:00

40 years after the U.S. abandoned the gold standard, it may be starting a comeback. As the dollar's status as reserve currency continues to waver, rivals like the precioous metals, Chinese Yuan, Euro, and SDRs are vying for top spot.

JP Morgan recently started accepting gold as collateral for clients. Today Utah legislation was introduced that would allow gold and silver coins to serve as currency. Slowly, the gold standard is making a comeback.

Fox News reports on the possible return on gold and silver as currency in America.

The Utah House was to vote as early as Thursday on legislation that would recognize gold and silver coins issued by the federal government as legal currency in the state. The coins would not replace the current paper currency but would be used and accepted voluntarily as an alternative.

The legislation, which has 12 co-sponsors, would let Utahans pay their taxes with gold and also calls for a committee to study alternative currencies for the state. It would also exempt the sale of gold from the state capital gains tax.

Wealth Wire : Read Full Report

Golden Times :: euro zone sovereign debt woes still on.

2010-12-11T08:39:00.000-08:00

...Silver, gold prices up on global crisis fears

RussiaToday | November 09, 2010 - Gold and silver surged to a record high fueld by inflation and euro zone sovereign debt woes. Gold is hovering around peak levels- exceeding the 14-hundred-dollar-per-ounce mark. Silver is also maintaining its gains, having risen to a 30 year peak. Analysts say the demand for precious metals could continue to climb - amid low interest rates, the European sovereign-debt crisis, and jitters over the global economic slowdown. RT discusses the issue with Manoj Ladwa, Senior trader at E-T-X Capital, who is in London.

Silver's Up - Keep It Up!

2010-12-07T11:42:00.000-08:00

Watch the full 101 Episode of the Keiser Report on Tuesday!

How modern banking come about:

2010-12-07T10:11:00.000-08:00

PreciousMetalsStore | April 24, 2009 - The story of the goldsmiths and the birth of fractional reserve banking from the documentary Money as Debt: a replay

The Gold Standard & Dollar History :

2010-12-03T23:23:00.000-08:00

therealweeklynews | April 04, 2008 - The value of the dollar is dropping like a rock and this video is to show how this is affecting the prices of everything from gas to milk. This is the first of several videos to show what is really happening to the economy of the United States and why this country is in a lot of trouble financially.

Gold to Silver ratio : 3 months chart - 11.25.2010

2010-11-26T03:52:00.000-08:00

UK Royal Mint :: Gold coin sales increase by 400%

2010-11-23T07:03:00.000-08:00

Sales of gold coins have soared by 400% so far this year compared
with 2009, according to the Royal Mint.

With the price of gold hitting record levels, the Mint says commemorative coins are in strong demand.

Sales of silver coins have also risen, though by a comparatively modest 20%

(Picture above) -The Royal Mint's £25 22-carat gold coin for the 2012 London Olympics

"In these days of economic uncertainty people look for something they can see as being a bit more secure," Dave Knight, director of commemorative coins at Royal Mint, told the BBC.

The price of gold, currently at about $1,400 an ounce, has consistently reached new highs during 2010 as investors have sought a haven amid economic turmoil.

BBC NEWS : 19 Nov 2010

Gold holds gains as Ireland worry eases

2010-11-18T21:00:00.000-08:00

(Reuters) - Gold prices steadied on Friday, holding onto gains from the previous session, as a cure is seen imminent for Ireland's debt crisis, which helped boost the euro.

Ireland insisted on Thursday its low rate of corporation tax was "non-negotiable" as it discusses an aid package worth tens of billions of euros from European partners and the IMF for its shattered banks.

Spot gold was little changed at $1,352.94 an ounce by 0341 GMT, on course for a 0.8-percent weekly decline.

U.S. gold futures was trading at $1,352.6.

Investors are closely watching China's monetary policy maneuver, after talks of an imminent rate hike have been circulating and caused sell-off in commodities earlier in the week.

By Rujun Shen - SINGAPORE | Thu Nov 18, 2010 : Read Full Post

America initiated Global "money laundering" of the highest order!

2010-11-18T20:08:00.000-08:00

Parasitical Capital Not Lack of Gold the Problem:

Jane D'Arista: Discusses Head of World Bank suggestion return of gold standard is grasping at straws

Financial Terrorism - Markets! Finance! Scandal! & silver market.

2010-11-10T00:30:00.000-08:00

RussiaToday | November 09, 2010 - This week Max Keiser and co-host Stacy Herbert look at the scandals of shameless Britain and Wall Street's cash cow. In the second half of the show, Max talks to David Morgan about the silver market.

Back Toward the Gold Standard?

2010-11-09T19:30:00.000-08:00

World Bank President Supports New Gold Standard :

Robert Zoellick, the president of the World Bank writes:

“The system should also consider employing gold as an international reference point of market expectations about inflation, deflation and future currency values.”

That could ignite a firestorm of controversy between economists who see a gold standard as a global stabilizer and those who see it as a job and growth-killer. What could invite more consensus is Zoellick’s call to reengineer the global financial architecture.

“The development of a monetary system to succeed ‘Bretton Woods II’ launched in 1971, will take time. But we need to begin. The scope of the changes since 1971 certainly matches those between 1945 and 1971 that prompted the shift from Bretton Woods I to II.”

Read full report:

Silver shines in gold's shadow.

2010-11-01T23:30:00.000-07:00

Is silver about to streak higher?

Silver's price has risen 8% in the past month, recently topping $20 an ounce for the first time since early 2008. The rally comes at a time when gold has been hitting new highs, on the latest round of fears that crisis-crazed central bankers will destroy the value of paper money.

The poor man's rally

Silver remains far from its own peak, set 30 years ago at a time of high inflation and a hare-brained attempt to corner the market. Unless the wheels fall completely off the global economy, silver seems unlikely to recapture its record high of $49.45 again any time soon.

Even so, silver could take on a new shine in coming months, as a slowing economy prods policymakers further out onto an easy money limb and buyers ponder just how high gold prices can go.

"Silver has been kind of going along as the poor man's gold," said Howard Simons, a strategist at Bianco Research in Chicago. "The gold-silver ratio right now is telling traders to buy silver."

Simons notes that at recent prices an ounce of gold can purchase 63 ounces of silver. Though this is hardly a historically unheard of ratio, the urge to buy the cheaper metal could push silver prices up as traders hedge their bets on gold.

Read full report :

Currency wars to short circuit role of Gold?

2010-10-25T09:32:00.000-07:00

Can the Capitalist stage manage the present economy upheaval...

Currency wars point way to managing imbalances:

Despite the truce that G20 countries made this weekend agreeing not to devalue currencies to tackle financial imbalances, some fear the US has been long involved in a currency war.

The US has waged well-known wars in Afghanistan and Iraq. Yet some say it is also waging a lesser-known battle that is just as costly and much larger in scale.

"The US is leading a financial world war to obtain foreign resources and essentially make other countries pay tribute to it,” Michael Hudson, contributor to the Financial Times, told RT.

Read full Report

Gold surge - US & Russia..

2010-10-24T10:47:00.000-07:00

RT | October, 2010, 10:21

The gold price has surged over the course of this year to beyond $1320 an ounce, with investor interest growing as concerns about currencies mount.

Gold futures, warrants, gold exchange traded funds, gold-mining shares – there are many ways invest in gold. But none offer the sheer sense of possession that having a bar in your hands does. Otkryitie analyst, Vladimir Savov says this can allow investors to strip out thinking about company management and hedge books, and simply focus on price.

“As stock analysts we tend to focus a lot on companies that produce gold, but for a retail investor when it comes to the share there are a lot more factor to keep in mind, when you think only about gold, you think only about the gold price.”

In the wake of the global financial crisis, and with concerns about currencies mounting amidst talk of quantitative easing, investors worldwide have been increasingly look for gold exposure.

But if they want exposure in Russia, they need to make sure it stays in the bank as an investment – it attracts 18% VAT once it gets taken out of the vault and becomes a present. Olga Gryazeva, Head of office, at Sberbank, says gold coins make popular presents.

“Russians mostly buy these gold coins as presents, probably because they look nice, however some of them are investment coins and they are not exposed to VAT.”

Investment analysts say up to 10% of any portfolio should be in gold, and Vladimir Savov believes that despite a recent retracement, the outlook is definitely.

“We do think that we will see higher price in the coming months. Because there is still uncertainty, people look for safe haven, the dollar could be kept at lower levels, and that is good for commodities and gold in particular.”

Long term gold bull George Soros recently described the precious metal as the “ultimate bubble,” as the metal is only really used in jewelry and J.M Keynes described it as a ‘barbarous relic’ – but as the oldest store of wealth it still retains a surety that is matched nowhere else – just don’t take it out of the bank if you are buying physical in Russia.

Currency Wars, The Point of No Return.

2010-10-16T08:32:00.000-07:00

September 24, 2010:

Gold and Silver Are Sounding The Alarm!

2010-10-15T08:23:00.000-07:00

Precious Metal Profits Will Be Epic!- October 15, 2010

Fiat Currency will have no where to go but Gold!

2010-10-08T05:40:00.000-07:00

Jim Rogers - Currency Wars:

October 07, 2010 - Global Currencies World Wide are being debased.

Nation states are debasing their currencies by printing money.

By printing money, the supply of money in the system increases.

More money in the system causes prices of important things you and I depend on in our every day life to INCREASE.

Our dollars buy less today than ever before. If you made 5 dollars in the 70s, you were paid MORE than you are today at 12 dollars.

Currency wars:

Keiser Report №79: Currency Wars Break Out

RussiaToday | September 21, 2010 - This week Max Keiser and co-host, Stacy Herbert, look at the scandals of Greenspan's 'gold warning;' currency wars breaking out; the Veterans Administration's verbal dealers with insurance brokers raking it in on dead soldiers and Carla Bruni's hopes for raking it in after her husband's (hopefully) one term. In the second half of the show, Max goes to New York to talk to Yves Smith of NakedCapitalism.com about her book, Econned, and about stability and instability in financial markets, structural imbalances,'bad equilibrium,' trillions in derivatives and Che Guevara with machine gun interfering with Potemkin companies.

Gold price hits new record high

2010-09-14T21:05:00.000-07:00

The price of gold hit a record high on Tuesday, with analysts giving a number of reasons for its rise.

Both the price of the actual metal and the price for buying it at a future date rose more than 2% to $1,274.75 an ounce.

It was the biggest one-day gain for the commodity in four months.

One of the factors spurring investors is gold's traditional role as a so-called "safe-haven" investment at times of economic uncertainty.

On the physical market, demand for both bullion and jewellery has risen ahead of the seasonal Indian wedding period and the Hindu religious festivals that begin in September

BBC News - 14 September 2010

Kelantan Gold Dinar Launch - Aug 2010

2010-09-12T10:54:00.000-07:00

Hajj Umar Ibrahim Speech -

Umar Ibrahim Vadillo - Interview - Gold Dinar

2010-09-12T10:46:00.000-07:00

IslamicEconomy | April 09, 2010 - Umar Ibrahim vadillo is one of the most outstanding and well-known proponents of the Gold Dinar Movement within the muslim world. He is the author of the ground breaking book "Return of the Gold Dinar" and has been involved in numerous initiatives across the globe to revive the gold dinar. In this interview, he higlights the importance of giving zakat in gold and why gold currency is mandatory requirement of shariah.

Islamic gold dinar gains ground

2010-09-04T09:26:00.000-07:00

Sat Sept 4, 2010 - KUALA LUMPUR: Malaysians are embracing gold dinars which were introduced last month by Kelantan to promote usage of Islamic currency as an alternative to paper money, an official said today.

The gold coins and silver dirhams were introduced in early August by PAS to coincide with the start of the Muslim holy fasting month of Ramadan.

Umar Ibrahim Vadillo, chief executive officer with Kelantan Golden Trade, said the first batch of gold and silver coins worth RM2 million had been sold out in less than a month.

"There is enormous response in Malaysia. Their reaction is unbelievable," he told reporters.

FreeMalaysiaToday :

Global Uncertainty Drives Demand For Gold

2010-08-31T12:24:00.000-07:00

VOAvideo | August 30, 2010 reports Demand for gold is expected to rise as a weak US dollar and persistent fears of a double dip recession weigh on investors. Despite falling slightly from historic highs earlier this year, the precious metal remains a safe and attractive investment. Analysts expect the price to stay strong for the rest of the year, thanks in part to accelerating demand from India and China. Mil Arcega reports.

KELANTAN LAUNCHES DINAR & DIRHAM ON 12TH AUGUST 2010

2010-08-16T12:27:00.000-07:00

Kelantan Gold Dinar Trade:

This is the first time in the last 100 years, since the fall of the Ottoman Caliphate, when a Muslim government introduces Shariah Currency. Indeed there has been four generations of Muslims who have not seen Gold Dinar and Silver Dirham; four generations of Muslims who have been divided into little national reservations and sentenced to permanent robbery first by local, then by international Masters of Riba; four generations of Muslims who haven’t known what is their Deen. The introduction of Gold Dinar and Silver Dirham in the state of Kelantan is not a new idea or experiment, it is the return to the medium of exchange that has been known for 1400 years throughout Dar al-Islam as Money of Shariah taking its legislation from Allah’s Revelation and Rasul’s Sunnah.

Link - Launch of the world Islamic Currency : Shaykh Dr Abdalqadir Assufi

Gerald Celente: Go for the gold!

2010-07-01T05:13:00.000-07:00

RTAmerica | June 30, 2010 - As the economy continues to struggle, the dollar has become more of an issue with its unstable behavior. Gerald Celente says that the dollar is an unreliable international currency and should be replaced by a more stable system. He also adds that the only stable market is gold, as the economy worsens gold's value will continue to increase.

Gold new high in America!

2010-06-20T11:34:00.000-07:00

June 18, 2010 — Ted Anderson drops by to talk with Alex about why gold is taking off the way it is and how far it may go. Now is the time to buy gold while you can before it goes to the next level.

Gold Advances to a Record in New York, London on Haven Demand.

2010-06-08T07:32:00.000-07:00

By Nicholas Larkin

June 8, 2010 (Bloomberg) -- Gold rose to a record in New York and London as investors sought an alternative to currencies amid mounting concern over Europe’s debt crisis.

Bullion also hit highs in euros, sterling and Swiss francs after the region’s common currency yesterday slipped to its lowest level in more than four years against the dollar amid speculation that debt-cutting measures by European nations will slow growth. European equities fell and Fitch Ratings said the U.K. must deepen budget cuts to protect its top credit rating.

“It shows low confidence in the euro zone,” said Bernard Sin, head of currency and metals trading at bullion refiner MKS Finance SA in Geneva. “There’s no confidence in euros, dollars and no confidence in other currencies. The only solution is to be on the safer side, which is gold.”

Gold, up 14 percent this year, is heading for its 10th consecutive annual gain, the longest winning streak since at least 1920. Bullion has outperformed other main precious and industrial metals as global equities slipped. Holdings in exchange-traded funds backed by gold reached records the past month, while coin sales from mints accelerated.

Gold futures for delivery in August gained as much as $13.70, or 1.1 percent, to $1,254.50 an ounce and traded at $1,246.60 at 8:18 a.m. on the Comex in New York. That surpassed the previous all-time high of $1,249.70 set May 14. Gold for immediate delivery in London reached $1,252.11 and was last up 0.4 percent at $1,244.57 an ounce.

‘Path Leads North’

Gold advanced this year as investors sought to safeguard their wealth against the crisis in Greece and other European countries struggling to repay debt. The metal reached a record 1,051.273 euros, 869.621 British pounds and 1,451.157 Swiss francs today.

“Gold just wants to follow one path and that path leads north,” said Edel Tully, an analyst at UBS AG in London. “Right now it’s too difficult to stand in front of a moving train.”

The metal rose to $1,248 an ounce in the morning “fixing” in London, used by some mining companies to sell output, from $1,215 at yesterday’s afternoon fixing. Prices may advance to $1,300 by the end of the month, MKS’s Sin said.

Britain is facing a fiscal challenge and needs to accelerate plans to reduce its budget deficit, Fitch Ratings said today. Interest payments on U.K. debt, rated AAA at Fitch, may reach a “staggering” 70 billion pounds ($101 billion) in five years, from 31 billion pounds in the past fiscal year, Prime Minister David Cameron said yesterday.

U.S. Recovery

“The Fitch announcement may have generated some safe-haven buying for gold,” Daniel Major, an analyst at Royal Bank of Scotland Group Plc, said today by phone.

The euro steadied against the dollar as Federal Reserve Chairman Ben S. Bernanke said Europe’s leaders are committed to avoiding a default and their bailout plan covers the obligations of Greece, Portugal and Spain “for a number of years.” The U.S. recovery is moving at a “moderate” pace, Bernanke said.

The euro slid 17 percent against the greenback this year, while the MSCI World Index of shares is down 11 percent. Returns on benchmark U.S. Treasuries have gained 4.6 percent this year.

“The gold price continues to be supported by safe-haven inflows, linked to Europe’s debt crisis and uncertainty about returns from alternative investment assets,” David Moore, a commodity strategist at Commonwealth Bank of Australia, wrote in an e-mail today.

The metal may trade at $1,050 to $1,300 an ounce for the rest of this year and may climb as high as $2,000 if the debt crisis spreads beyond Europe, possibly to the U.S., GFMS Chief Executive Officer Paul Walker said in an interview.

Stimulate Economies

Central banks and governments maintained low borrowing costs and spent trillions of dollars to stimulate economies after the worst financial crisis since the Great Depression. The U.S. estimates budget deficits will reach a record $1.6 trillion in the year ending Sept. 30.

Holdings in the SPDR Gold Trust, the biggest ETF backed by bullion, gained 13 percent this year. The fund’s assets were unchanged at 1,286.36 metric tons yesterday, its website showed. They reached a record 1,289.84 tons on June 3.

“Given current prices, it’s also reasonable to expect scrap supply to pick up pace,” UBS’s Tully said. “When gold was trading at these levels back in May, anecdotal evidence suggested that scrap flow had dramatically accelerated.”

Platinum for July delivery in New York added 0.2 percent to $1,520.50 an ounce. Palladium for September delivery rose 0.7 percent to $433.50 an ounce. Silver for July delivery was 0.8 percent higher at $18.315 an ounce.

--With assistance from Chanyaporn Chanjaroen in London and Kyoungwha Kim and Glenys Sim in Singapore. Editors: Stuart Wallace, John Deane

To contact the reporter on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net.

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net

Chinese dumping worthless currency for gold.

2010-06-08T05:07:00.000-07:00

liarpoliticians — May 17, 2010 — The Chinese population and government are dumping the worthless paper currencies of the world, which their governments just magic from nowhere, and dumping guilts, and are instead investing in gold. No matter what the price of gold is, one thing is certain, you can't print more of it like Western governments have done to their paper currencies.

Peter Schiff Buy Gold it could go to $10 000/oz

2010-06-08T04:53:00.000-07:00

PeterSchiffChannel — May 13, 2010 — Peter Schiff Buy Gold it could go to $10 000/oz CNBC:

GOLD BREAKOUT!!! Gold seeking divorce from fiat currency.

2010-05-23T02:56:00.000-07:00

Be the First to see Meltup - MELTUP

Gold strikes new record high on Europe debt woes

2010-05-12T00:16:00.000-07:00

Wed, May 12, 2010 at 11:43 | Source : Reuters

Gold struck another record high above USD 1,230 an ounce on Wednesday on safe haven buying as investors bet the euro zone debt crisis could spread beyond Greece.

Jewellers cashed in on the rally and dealers noted a pick up sales of scrap in Asia, which could curb further gains. But any correction could be limited as a USD 1-trillion European rescue package had done little to ease fears of euro zone debt contagion.

"I think sentiment is slightly bullish from here. We don't really know where the top is," said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong. "We may be talking about USD 1,250."

Spot gold hit a bid high of USD 1,234.70 an ounce before slipping to USD 1,233.10 by 0516 GMT, still up USD 1.05 from New York's notional close on Tuesday, when buying from investors helped it surpass December's record.

Gold priced in euro hit another record high on Wednesday.

Some dealers said gains in silver were partly responsible for gold's rally. The white metal jumped to a five-month high on Tuesday on buying by funds attracted by the metal's cheap prices compared to gold, platinum and palladium.

The world's largest silver-backed exchange-traded fund, the iShares Silver Trust, said its holdings rose to 9,115.15 tonnes as of May 11, up 27.43 tonnes from 9,087.72 tonnes in the previous business day.

"We've seen the worst and the market now needs a few days to consolidate. We'll probably wait again for leads from the stock markets today," said Darren Heathcote, head of trading at Investec Australia in Sydney.

The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings were unchanged at record high of 1,192.150 tonnes as of May 11.

US gold futures for June delivery added USD13.7 an ounce to USD 1,233.6 an ounce.

Japan's Nikkei average edged up 0.5 % on Wednesday, defying declines in New York but there were lingering fears the bailout package for Europe won't solve the region's deep-seated problems.

The euro dropped on persistent worries about the euro zone's ability to to deliver the drastic spending cuts and tax increases needed to tackle its debt crisis, while sterling held gains after a new UK coalition government was formed.

Gold Trading At Record High For Numerous Reasons

2010-05-11T00:08:00.000-07:00

Chuck's Commodities Blog | Tuesday May 11, 2010

Gold prices would normally retreat after the financial markets stabilize from a recent financial crisis, but not this time. Gold prices plowed ahead to close at a record high and the market continues to move higher in after hours trading. June gold futures are trading at $1,233 an ounce as I am writing.

The U.S. stock market returned to business as usual this week after a major bailout in Europe. This stock market loves it when problems are set aside to worry about in the future. The gold market is really loving this situation as gold investors know the problem down the road is just going to get bigger and that spells higher prices for gold.

Debt problems are rampant in Europe and it very questionable whether many countries can reign in spending to control the debt from spiraling out of control. Our deficits are at the same dangerous levels as many of the European countries, but luckily we are able to finance the deficits through issuing an increasing level of debt. In fact, we are also financing the bailout in Europe since a good chunk of the funds are coming from the IMF.

China is also a focal point for gold investors. Their economy grew at an annual rate of 12 percent last quarter, which is off the charts. This will inevitably lead to higher inflation or they will slow their economy. Both scenarios could be positive for gold investors. Gold would flourish in a high inflation environment, while a slowdown in China's economy would likely lead to a slowdown in the U.S. economy. We would have to issue even more debt and deficits could jump above 100 percent of GDP.

In essence, the deck is stacked for gold. Now, if you believe that the US, China and Europe will handle all their issues just right, then you might believe this is a good place to sell gold. However, I see so many IOUs floating all over the world, it almost seems like insanity. Bailout countries are bailing out other countries. It sure cheapens the value of paper money in the eyes of many investors and it is no wonder they are attracted to gold.

"Paper trading" causes Global food bubble!

2010-05-05T19:51:00.000-07:00

REASON FOR FOOD HIKE : DRIVEN BY FINANCIAL SPECULATION IN THE COMMODITY FUTURES. not supply & demand factors. Basically to compensate losses due to sub-prime market.

From wage slave to Debt Slave...

2010-02-22T23:14:00.000-08:00

'worthless' dollar & Gold 'the Savior'

2010-02-08T05:34:00.000-08:00

February 05, 2010 | Marc Faber, author of Gloom Boom and Doom Report says many Western governments would eventually follow the US 'inevitable' default suit. Outspoken investor and writer Marc Faber doesnt give America much time before it goes bust.

Gold Stocks versus Gold Bullion

2010-02-02T16:01:00.000-08:00

Steve Saville | email: sas888_hk@yahoo.com | Feb 2, 2010

Below is an excerpt from a commentary originally posted at www.speculative-investor.com on 31st January, 2010.

It is widely believed that gold stocks offer leveraged exposure to changes in the gold price, but this belief is false. At least, the historical record suggests that it is false on a long-term basis. As evidence we include, below, a chart of the BGMI/gold ratio covering the past 50 years (BGMI is short for Barrons Gold Mining Index).

The long-term BGMI/gold chart shows that there was a huge rally in gold stocks relative to gold bullion during the 1960s. This massive out-performance on the part of the stocks occurred for two main reasons. First, the gold price was fixed at $35/ounce at the time, but it was becoming increasingly clear that relentless monetary inflation was going to make it impossible to maintain 'the fix'. Consequently, the stock market began to discount the large rise in the gold price that would likely occur once the last remnants of the Gold Standard were abandoned. Second, US citizens were not permitted to own gold bullion at the time, so the only way that people in the US could speculate on a future rise in the gold price was to buy the shares of gold-mining companies.

The huge BGMI/gold rally of the 1960s was followed by a 12-year bear market that bottomed in 1980. In other words, the gold bull market of the 1970s was accompanied by a BEAR market in gold stocks relative to gold bullion. One of the most important drivers of this bear market was the fact that gold stocks had previously been bid up to extremely high levels relative to gold in anticipation of a large rise in the gold price.

Since 1980 the BGMI/gold ratio has oscillated within a horizontal range. Note, though, that it briefly moved below the bottom of this range towards the end of the 2008 market crash. In fact, in October of 2008 the BGMI/gold ratio hit a 50-year low!

The BGMI/gold ratio reflects the performance of a basket of larger-sized gold producers relative to gold bullion, so the above chart makes it clear that larger-sized gold stocks, as a group, have not provided their owners with leveraged exposure to gold over long time periods. A well-selected basket of junior gold stocks could have outperformed the BGMI by a wide margin and could potentially have provided the leveraged exposure that gold-stock investors typically seek, but the juniors tend to be a lot more risky and are therefore not appropriate for many investors.

This prompts the question: why aren't gold mining companies able to leverage gains in the gold price over the long-term? After all, shouldn't an X% gain in the gold price lead to a gain of more than X% in a gold miner's cash flow?

A number of factors have contributed to the lacklustre long-term performance of the BGMI/gold ratio, one being that the costs of gold mining tend to rise. Due to rising costs, only part of any increase in the gold price flows to miners' bottom lines. Other factors include political issues, environmental issues, and management errors, but in our opinion the single most important factor is simply that gold mines deplete. Due to the fact that gold mines experience depletion, gold mining companies must devote a lot of cash each year to exploration to prevent their total quantity of in-ground reserves from declining. Alternatively, a mining company can maintain or grow its reserves through acquisition, but this will also be costly in terms of cash or new shares; and it won't prevent reserves from declining on an industry-wide basis.

As we've mentioned in previous TSI commentaries over the past six years, the proven inability of large gold-mining stocks to leverage long-term gains in the gold price means that people who plan to hold a gold investment for many years, and who do not want to take-on the risk inherent in junior mining stocks, should accumulate gold bullion as opposed to gold stocks. From time to time, however, the major gold stocks become very under-valued relative to the bullion and therefore become good candidates for intermediate-term TRADES. October of 2008 was a classic example.

It's all a question of relative valuation. In general, for an investment in a gold stock to be justified the stock must be under-valued relative to gold bullion by enough to warrant taking on the additional risk inherent in the stock. To put it another way: a lot more things can go wrong with a gold mining company than with gold bullion, so investors should only favour the stock over the bullion if the stock's valuation implies that its additional upside potential is more than enough to compensate for the additional risk.

The major gold stocks are not as cheap relative to gold bullion today as they were in October of 2008, but in gold terms they are still close to their lows of the past 50 years. Also, in nominal currency terms they are becoming sufficiently oversold to be of interest as short- or intermediate-term trades. Having said that, we much prefer the juniors.

The Dollar Bubble.

2010-01-19T09:53:00.000-08:00

The Dollar Bubble starring Peter Schiff, Ron Paul, Marc Faber, Gerald Celente, Jim Rogers, and others. Prepare now for the U.S. dollar collapse.

Gold is money in extreme times, have they arrived?

2009-12-23T01:30:00.000-08:00

It was Alan Greenspan who said that, “gold is money in extremis”. By this all understood that when times got tough, gold became money that people could trust. But what constitutes “in extremis”?

History, with hindsight, usually finds it easy to answer such a question. Event with hindsight such a precise tool, it is of no use to investors who don’t have the privilege of using it. For instance it is clear that a year before the last war, no, almost 5 years before the last World War, it was clear that the world was on the path to the war. One year before the war started the Prime Minister of Britain came back from Germany with the cry, “Peace in our time” heralding his belief that there would be no war. On the ground, opinions were divided right up until Germany marched into Poland.

This illustrates clearly that such clarification that we are in extreme times is never easy when we only have today and tomorrow to base our decisions on. That’s where we are today.

The tool that we are left with is extrapolation, defined as “calculate approximately from known values, data, etc” according to the Concise Oxford Dictionary. Put simply, it means taking the facts, attitudes and intentions and taking them forward to assess the future likelihoods. It does not include hopes and dreams, but only present realities, those that will decide the future.

So what do we see now? The Global Economic picture

U.S.

Growth resumption is still being argued in the States with joblessness at frightening levels, but is edging closer. Consumer debt is still not under control nor are U.S. citizens of a mind to become savers and not borrowers. So consumer recovery is still not certain. The economy is in relative decay and has shown far less resilience than that of China. Interest rates are at such low levels that there is every incentive for the $ to fall as money is borrowed in the States, then sold to be invested in foreign countries. No matter how loud or long the Administration cries, ‘we want a strong $’it just ain’t going to happen.

In the Monetary System, we see a U.S. with the net external debt of the U.S. nearly tripled in the last year to $3,500 billion and it is projected to increase by nearly $1,000 billion every year for the next decade. Now add to that the role of the $ as the Global Reserve Currency and you have such a $ overhang that if the borrowed dollars came home as interest rates rose and pushed the $ stronger, surplus holders would be tempted to sell their $ surpluses into $ strength. Then where would the U.S. money supply stand? Overall the $ is in trouble!
With the $ being the tree trunk of the global money system, all the braches of that system will suffer its pain too, in a structural way.

Overall we see a massive shift of wealth and power to the East. In time it will subject the Western style money system to its power. As long as this is not recognized the world will be threatened by a potential collapse of the monetary system [just recall how even the Treasury department in the U.S. recognized that if they hadn’t stemmed the credit crunch as they did, they knew a collapse would have come]. Washington has no other choice but to print more dollars, let the world devalue the currency and service debt in ever cheaper greenbacks. This is a managed devaluation in the hope of avoiding a massive loss of confidence in the $.

China

We see in the East, China a country with a population twice the size in population of the Eurozone and U.S.A. put together. It’s growing at a double digit rate, compared to a developed West which is barely growing and facing many unknowns and fears because of the fragmentation of their economies. We see in China a synthesized approach to growth that is allowing them to build 50 cities each to hold 10 million people, sucking up world resources at an amazing rate.

It is achieving a self-sufficiency that had proved most economists very wrong. Supporting this are two factors; first the fact that the Chinese are savers not borrowers and second, they are starting from so low a disposable income level that they are considerably more resilient to economic downturns, should they come. It is building an economic empire that will overshadow the West just as Japanese goods grew from cheap transistor radios to goods that have overtaken those produced in the West [Auto industry].

Now add to that, the fact that they are controlling capital flows into China and they are refusing to let the Yuan rise. This ensures that Chinese goods will remain competitive and suck the manufacturing power out of the West. Whether you call it economic war or not, the effects are the same. After all, ‘a rose by any other name smells just as sweet’. Western economies and currencies are already carrying the wounds of this war.

India

In India we see rapid growth in urbanization and GDP but without the strong grip of China’s central government dictating growth. Nevertheless, such growth in a nation of 1.2 billion people who are providing cheap goods and personnel, is overwhelming Western competition to the roots of any economy.

Capital Controls

Cheap and easily borrowed money in the United States, alongside a falling $ have and are leading to flows of funds seeking better returns in emerging markets. These have and are bringing new rounds of capital controls in emerging markets to slow inflows of Capital. As each day passes the likelihood of more stringent controls spreading further comes closer. They are expected to follow any reversal of capital inflows and become Capital outflow controls. Failure to impose such controls and allowing currencies to appreciate on foreign exchanges destroys vital, difficult to establish, businesses.

So where “carry-trade” [or ‘hot’] money serves no good purpose in the economy of a country, it is slowly being made unwelcome by Capital Controls. Such capital flows have the power now, to destabilize an economy. The worst effect of it will come when such traders want to disinvest and the outward flow drains liquidity from the system and leaves the country economically littered with industries in economic distress and banks loathe to lend to them by way of rescue. Believe you me such damage is far worse than any inflationary dangers. But so many countries remain riveted to inflationary concerns that they are leaving themselves open to economic shocks that lower interest rates and adequate liquidity just will not cure.

Russia

Russia on Wednesday joined the list of countries eyeing new measures to stem currency speculation and appreciation. Moscow was careful to say it would not impose actual capital controls, which seek to regulate flows of funds into or out of an economy, but the measures they are considering would have exactly that effect, making it tougher or more expensive for money borrowed abroad to be brought into Russia.

Kazakhstan

Kazakhstan has introduced legislation allowing capital controls, but so far has not used them.

Indonesia

Indonesia is considering curbs on foreign holdings of short-term official debt but considers currency moves based on such flows were so far manageable.

Taiwan

Other Asian central banks have been intervening to cap gains in the value of their currencies, with Taiwan going so far as to ban foreign funds from investing in local time deposits.

Brazil

Brazil last month announced a 2% tax on foreign investment in stocks and fixed-income securities to limit the strengthening of the Real.

Summary

If the trends we are now seeing are not drastically changed when we extrapolate the situation, we cannot see the monetary system surviving in its present state. Willingly or unwillingly we will see a huge change in economic and monetary power. There is not the political will to recognize this situation, so the likelihood of the bitter consequences of these changes rising into economic conflict on a much larger scale is growing by the day. So can one trust currencies? They are after all national obligations not real value ‘in extremis’? The future looks bleak, sad to say.

So we are in extreme times and they are getting worse by the day. Looking ahead we can see nothing among the nations large or small that is capable of stopping this.

Is Gold a Thermometer of this?

This article is from a recent issue of the Gold Forecaster with Subscriber-only parts excluded. We will not disclose our forecasts on the gold price except to Subscribers.

Excerpts from GLOBAL WATCH | The Gold Forecaster by Julian D.W. Phillips | December 2009

Sudan digs for gold as prices rise

2009-12-15T19:36:00.000-08:00

At least one-quarter of Sudan could be rich territory for gold mining, making it a hot-spot for foreign companies exploring there.

In recent years, individual mining has reached unprecedented proportions and figures indicate that at least 50,000 people are believed to be working in Sudan's northern desert.

The Sudanese government has tried to discourage gold mining in the past because of the deadly risks involved.

However, it has proved a lifeline for thousands of people as the price of gold has soared.

Al Jazeera's Mohamed Vall reports.

Gold prices will keep rising, says Newmont boss Richard O'Brien

2009-12-06T08:06:00.000-08:00

NEWMONT Mining chief executive Richard O'Brien says gold may rise to $US1350 ($1454) an ounce next year and reach as high as $US1500 within two years because of the declining dollar and new investment demand.

"I'd say next year we could maybe see as much as a $150 improvement," Mr O'Brien said.

"There's still that continued push on US dollar decline -- still inflation."

Gold surged to a record for the second straight day as central banks, pension funds and individuals bought the precious metal as a hedge against currency debasement and inflation.

Gold futures touched an all-time high of $US1218.40 an ounce in New York and bullion priced in sterling, euros and Swiss francs also set records.

"The increase in demand in general for investments has more than offset that decline for jewellery," Mr O'Brien said.

"Gold could trade in a range of $US1000 to $US1500 an ounce in the next couple of years."

Shares in Newmont, the world's second-largest gold producer by sales, have gained 37 per cent this year.

Higher bullion prices may make it more difficult for the Colorado company to grow through acquisitions, Mr O'Brien said. "With the rise in the gold price, a lot of the stocks have rallied. People have access to capital again," Mr O'Brien said.

"It's probably a more difficult acquisition environment than it was a year ago."

Newmont would build on its existing deposits and projects while watching for "opportunistic" acquisitions, Mr O'Brien said.

"We're looking in places around the world where we see terrains of interest," he said, identifying Indonesia, Australia, Alaska and the Arctic, and "challenging" political areas.

"We're up for the challenge, we just have to find the right discoveries," Mr O'Brien said. Newmont aims to increase its annual production of gold by 5-10 per cent next year.

The company said in October that its gold sales this year would be about 5.2 million ounces.

"We're going to try to maintain our production profile that we have today -- that five million to 5.5 million ounces -- keep that going into the future, invest in new projects to help sustain that, and every once in a while, if we find something interesting in the market, acquire that," he said.

Mr O'Brien said he was open to collaboration with Barrick Gold in Nevada. He cited as an example the joint venture between BHP Billiton and Rio Tinto in Australian iron ore operations.

"You see in BHP and Rio, the way they've attacked the iron ore business, that there are certainly ways, without destroying value, to actually put operations together and generate synergies," Mr O'Brien said. "If there's a way to do that so that each of our shareholders comes out in a better spot, we'd be up for it."

BLOOMBERG / The Australian

Gold price slumps as dollar strengthens

2009-12-04T13:54:00.000-08:00

The gold price has slumped after surprisingly good US unemployment data sent the US dollar higher, making gold a less attractive investment.

Gold fell more than $76, or 6%, to $1,150 an ounce, down from a record high of $1,226.56 in early trading.

After figures showed the US jobless rate falling, the dollar gained 2% on the Japanese yen and 1.3% on the euro.

Gold has hit a number of record highs in recent weeks as the dollar weakened due to low interest rates in the US.

Teeth kicking'

Both the dollar and gold are seen as safe investments, but investors have preferred gold in recent months due to the weak dollar.

The US has said it will maintain low interest rates for some time, which makes the dollar less attractive.

But the sudden strengthening of the dollar has now sent the gold price sharply lower.

The dollar rose on the back of data which showed that the US unemployment rate fell in November to 10%, down from 10.2% in October.

In all, 11,000 jobs went over the month - the smallest number since the recession began in December 2007. That was far fewer than the 130,000 expected by most analysts.

The dollar rose against the euro, to $1.4889, and against the yen, to 90 yen.

"So many people have piled into gold, so this pop in the dollar is freaking people out," said Matt Zeman at LaSalle Futures Group.

"The dollar is rocking and gold is getting its teeth kicked in."

courtesy : BBC NEWS

Gold hits yet another record high

2009-12-02T22:56:00.000-08:00

The price of gold has struck yet another record high as the dollar continues to weaken.

Renewed vigour in early trading in London pushed gold to a new high of $1,217.23 an ounce. It has hit a number of new highs in recent weeks.

Other precious metals have also rallied strongly. Silver, at $19 dollars an ounce, is 5% off its all-time high.

Demand for gold is being driven by two main factors - a weak dollar and investors' appetite for safe assets.

The price of gold is not just at a record in dollar terms, but in yen, euro and sterling terms too.

Three golden rules

Gold is a commodity that investors rush to in times of uncertainty - what is often referred to as a flight to safety. This week, investors pulled their money from shares after Dubai World reignited fears about bank lending by calling for an extension on its debt repayments.

Investors with large dollar holdings - including countries' central banks - have focused on gold as a safe investment.

Michael Hewson, an analyst at CMC Markets, said central banks in China, Russia and India had all looked to protect themselves against economic uncertainty.

"It is a store of value while investors have serious doubts about the global financial system - it's something that is not going to lose its value like a currency," he said.

Another key reason behind the sharp increase in the gold price is the fall in the value of the dollar. The US has said it will maintain low interest rates for some time, which makes the dollar less attractive to investors.

The dollar has fallen by 14% against the pound this year, and by 8% against the euro.

The third reason for the rise is speculation - as the price of gold keeps rising, more investors bet that the price will keep going up.

"Pressure remains on the dollar," said Peter Fertig at Quantitative Commodity Research.

"A weaker dollar is the main driver for gold, alongside speculation that central banks may buy more."

Why the Rise in the Gold Price is Different this Time.

2009-11-03T10:21:00.001-08:00

For over more than 18 months we have watched the gold price churn below $1,000 and in the process forming three tops, before breaking out to above $1,050 in early October 2009. Why will it not fall back to well below $1,000 and possibly as far as $850 this time?

Technical Picture

Peter has given a great deal of detail below, in this issue and has warned, precisely, of the various support and resistance levels to watch out for. This information is critical for you, the subscriber, so as to help in your buying and selling considerations.

The U.S. $

For many months now too, while traders played the gold price against the U.S. $ the gold price has been precise in its inverse correlation to the $. We believe that this has mistakenly led commentators to place far too much emphasis on the $, as the inverse measure of gold.

We say this because the moves occurred at a time when many facets of the gold market were absent from the gold market, such as investment demand, low jewelry demand and central bank demand. Traders held sway over the gold price and it is they that decided that the moves of the $: € decided the price of gold. This lacked a reasonable basis to it. Why should the gold price be tied to the €? Such a relationship implies that the $ in isolation, is the most important factor in the gold market. We counter that and say, yes COMEX is a U.S. market and such traders do have enormous pricing power, but when the full force of all sides of the gold market come into play, COMEX diminishes in importance, just as the waves of the sea are of less important than tides are, to where the sea will climb on the shoreline.

Yes, the state of the $ is important in pricing gold and it is the ‘hub’ of the currency world, but to gaze at it alone is to ignore the much bigger world of gold in its entirety, acting together in synthesis, in deciding the gold price.

This is amply demonstrated by the fact that the U.S. $ is sitting not far off the same place, against the €, as it was when gold was just below $1,000. We now foresee a larger de-coupling from the $ by gold, as we move forward. Yes, the waves of the $ will ebb and flow and continue to cause traders to move the gold price against the $ as before, but the tide of investment demand and other factors in the gold market will flow and dominate these moves over time.

Why Different this Time?

As we wrote last week, while the facts of the article in the Independent [British] newspaper, informing the market that France, China, Russia and select Persian Gulf oil producers were going to price oil in a ‘new’ currency were denied, the market is convinced that this will happen in time, even if it takes another decade. The reaction in the gold market was to bring in new investment demand via bullion itself, to prompt heavier central bank selling, to slow scrap sales and to cause traders to add some more gold to their holdings.

On top of the consolidation phase the gold price has been going through over the last 18+ months, this was a breakout pointing to an end of that phase. Now it sits on top of the $1,000 level, which forms a huge support to the price.

Watershed for the Monetary System

This showed a tipping of the see-saw against confidence in the monetary system. It was due to the realization that very little is going to be done to effectively reform the currency world and bring back stability to these markets. More than that, it was the realization that world governments just don’t have the real political will to ensure a stable world currency system. There are just too many conflicts of interest for them to do so.

Meanwhile, the system decays on a broad front. The very fact that the hub of the currency world, the U.S. $ is losing favor so quickly sends out a bigger warning to investors and the global economy. Just take a look at what central banks have been doing in the last few months.

Foreign currency holdings grew by $413 billion last quarter, the most since at least 2003, to $7.3 trillion. Nations that report currency breakdowns put 63% of this new money into the € and Yen in April, May, and June. That’s the highest percentage in any quarter with more than an $80 billion increase. Until now China has expressed concern about the behavior of the $ alongside other nations but were hesitant to act like this, because of the damage it would do to the exchange rate of the $. Now the realization of the fact that the $ will weaken is prompting action.

Imagine if oil was priced in a ‘basket of currencies, that diversification would be unstoppable and the $ would face a major crisis. Now, it is only a question of when.

Some commentators are saying gold is rising because of inflation fears, but inflation is not likely to accelerate until the global recovery is strong and deflation has evaporated. And yet gold is rising.

What concerns foreign holders of the $ is its exchange rate. This means far more than U.S. goods getting cheaper and European goods getting more expensive, it means the future worth of the $ in terms of all other currencies.

e.g. If Europe sells goods to China, it prices them in the U.S. $. The buyer and seller need to price those goods in a way that allows them to budget correctly and be able to pay correctly and make their profit on the deal. If the U.S. $ [which has nothing to do with the underlying transaction] falls, then Europe gets less Euros to pay the supplier. This gives a great incentive not to use the $ in these transactions. If that trend takes off, then the $ will be used less, globally, and cause an excess of dollars to float around the system, taking it even lower. The dollar’s 37% share of new reserves fell from about a 63% average since 1999.

The point for gold is that even central banks are wary of the U.S. $ and consequently expect uncertainty to spread like the plague through other dependent currencies, as they try to keep their exports competitive in the world market. Despite it being money in earlier times only, gold remains the only money that can be exchanged when confidence is lost and still hold its value. This reality is rapidly rushing at us and is why gold is rising in price.

Need to Quantify?

Among financial professionals the need to quantify, to measure, to relate is insatiable. Look back across the last few years of the gold market. Gold was thought to move against oil. This was dropped when the facts showed differently. Gold was thought to be anti-inflationary. While it has these properties, the price is rising in the absence of inflation at the moment. Growth or the lack thereof was tied to gold’s performance, but when deflation hit and gold held its price that was dropped too. In general the gold price was thought to be a tied into something in the U.S. alone. Is this because of the myopic view of U.S. markets or is it really a reality? Clearly, Europe and the rest of the world are involved in the gold market too. In fact 90% of the world’s bullion is dealt in London!

So we have to counter this hunger to quantify and recognize that there are a huge number of times in our lives and our markets when reason and measurability are absent. The gold market is reflecting one of those times right now. When emotions creep in, many such professionals go into denial, until they can find something else to measure that emotion against. By that time the damage has often been done. The point of the Independent newspaper report was that it precipitated pent-up emotion against the U.S. $. Now the $ will be seen in that negative light, not as a strong currency dominating world currencies. It is moving to pariah status if it keeps on this road. It is too late for political ‘spin’.

When the Titanic sank, there was a point in time, when the ‘unsinkable’ ship in the passenger’s minds, changed to a sinking ship. The breakout in the gold price was just such a point in time.

yen dollar The Price of the $?

What has happened imperceptibly is a change in measuring value. Until now, everything was measured in the U.S. $. It was the ultimate measure of value for over half a century. With uncertainty, led by global central banks, other measures of value are now needed. Where can they be found, amongst other currencies?

The ailments hitting the U.S. $ can affect other currencies, all of which are controlled ultimately by their central banks and governments. If the U.S. Administration can’t hold financial confidence why should any other currency do so? The road down for the $ will eventually lead to something that cannot be debauched by governments. The actions of the Chinese and Russian central banks, tells us that they trust a ‘basket of currencies’ [which minimize the impact of any individual government] and, to some extent, gold.

For years now we have said a day will come when the gold price won’t be say $1,000, but that $1,000 will be worth an ounce of gold. We’ve arrived.