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Archive for February, 2013

Key Charts Which Predict A Violent Move Higher In The Metals

February 28th, 2013 No comments

Rocket Launch

 

The following is a compelling piece by Kevin Wides out of Switzerland exclusively for King World News.

The powerful commentary and charts point to a very rapid move higher in the metals fast approaching.

Read more here : 

Key Charts which predict a violent move higher in the metals

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The Truth About The COMEX

February 28th, 2013 No comments

When it comes to gold, nothing comes close to holding the physical and unencumbered ownership of gold outside of the banking system.

The COMEX is a futures market. When you buy (or sell) gold over COMEX, you are not gaining (or giving up) physical ownership of a metal, but rather promising to buy (or sell) gold at some future date at a predefined price.

It is fair to say that most gold and other precious metals contracts on the COMEX do not end up being physically settled at all. They are offset beforehand. Offsetting means that you enter into a transaction opposite to the one you initially entered. If you bought a gold future for example, you sell the same contract and take your profit or loss without having any further obligation or taking possession of the metal. Most traders on the COMEX are uninterested in physical delivery; preferring to speculate on price movements in gold prices.

All open contracts for gold and silver are equivalent to 53% and 88% of the total yearly mining production. If all persons holding futures decide not to roll (offset) their position, physical settlement would be simply impossible and the house of cards called COMEX would collapse. Even if one uses the total supply for precious metals instead of the mining production the picture doesn’t really change. The open silver contracts amount to around 72% of the total yearly silver supply (Estimated by the Silver Institute). The value of the outstanding contracts in gold is higher than the total gold reserves of Switzerland and Austria together!

The counterparty to all transactions is the exchange; it steps in when an individual on the long or short side defaults. The exchange sets the initial margin.

The COMEX requires a margin. However, the margin is so tiny that to sell one million dollars worth of gold you need to deposit less than 40’000 USD.  This makes the COMEX prone to manipulation (because using little amounts the price can be moved into the desired direction). Furthermore, the induced price declines are amplified as more and more investors decide (or are forced to) to sell their positions.

Excerpt Source : The Truth About the COMEX

 

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LEADING GOLD STORAGE FIRM VIAMAT DUMPS ALL US CLIENTS

February 25th, 2013 No comments

Vault2

 

 

 

 

 

 

 

ViaMat, one of the world’s leading precious metals storage firms (used by BullionVault & GoldMoney as primary storage provider) has just notified  US customers that effective April 30th 2013, it will discontinue private storage of precious metals for all clients with a US tax liability.   Clients have until April 30th to notify Via Mat International where they would like their physical bullion dispatched to.

All signs point to an imminent escalation in capital controls in the US.

ViaMat issued this notice to clients Feb 17th:

“We are currently experiencing rapid and substantial changes in the general regulations within this business. The changes mainly relate to the tax structures and taxation systems of various countries. As a consequence of these changes VIA MAT INTERNATIONAL has taken the decision to stop offering this service at its vault [sic] outside of the US to private customers with potential US-tax liability.”

Excerpt : Leading Gold Storage Firm Viamat Dumps all US Clients

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Green Shoot Soup Anyone?

February 22nd, 2013 No comments

Central bankers trigger global share sell-off

Concerns that the world’s leading central banks may not indefinitely support global equities by printing money sparked the largest one-day sell-off in Australian stocks in almost a year and pushed the key market index below 5000.

Despite a number of upbeat profit results from key blue chip companies on the busiest day of the current reporting season, nervous investors pushed the major S&P/ASX 200 Index below 5000, wiping about $35 billion off the market, a week after it breached the key level for the first time since April 2010.

Excerpt :
Central bankers trigger global share sell-off

Telstra cuts 700 jobs from Sensis

Telstra Corp has confirmed plans to cut nearly 700 jobs from Sensis as part of a restructuring that aims to accelerate the transition of the faltering directories unit to a fully fledged digital media business.

The company told staff and unions on Thursday that as many as 698 positions could go, more than half of which would be in back-office roles that would be sent offshore.

Excerpt : Telstra cuts jobs from Sensis

Origin downgrades profits and slashes jobs

Energy producer and retailer Origin Energy predicts profits will fall further than expected in the second half as it moves to slash 850 jobs.

The downgrade comes amid cost blowouts at the company’s Australia Pacific liquefied natural gas (APLNG) project which analysts have linked to a credit rating downgrade on Thursday.

Shares in Australia’s largest electricity retailer fell more than eight per cent as investor attention focused on managing director Grant King’s pay packet and potentially losing his full year bonuses.

Excerpt : Origin downgrades profits and slashes jobs

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Currency wars: It’s starting to look a bit too much like 1931

February 21st, 2013 No comments

http://www.dreamstime.com/-image2509668

 

 

 

 

 

 

 

 

 

History may not repeat itself, but the parallels between the world economy in the 1930s and the world economy today are becoming hard to ignore. Then, as now, the world was in the grip of a severe economic downturn and painfully high unemployment. Then, as now, governments tried to restore growth and exports by devaluing their currencies and carving out trade blocs, risking a chain reaction around the world. Then, as now, the system was rudderless, unstable, and insecure – which persuaded countries to protect their own national interests, even at the expense of the collective good. The world has not yet plunged into a full-scale currency war, but the trends are not good.

Excerpt : Source -The Globe and Mail

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Gold & Silver Price Takedown February 15th: Noise vs Facts

February 19th, 2013 No comments

Negative mainstream sentiment

Interestingly, the downward pressure on gold and silver prices came exactly on the day of the G20 meeting in Moscow. Coincidentally, all news out of Moscow was positive and economic recovery appeared to be the theme of the day. Ben Bernanke admitted that the US unemployment was still high, but emphasized that the US economic recovery is underway and that it would lift the global economy up. “As a consequence,” sentiment for gold turned bearish… at least, that’s how the mainstream linked the two events together. One of the many headlines reads “Gold dips to 6-month low as Bernanke says U.S. economy is improving.”

Furthermore, an “exclusive” headline on Reuters (source) reported that the US sanctions to eliminate the gold flow from Turkey to Iran. The significant increase of gold as an “alternative”  payment method  in the “gold for gas” and “gold for oil” transactions are the result of past year’s sanctions to exclude Iran from the international payment system.

Looking from the opposite perspective, Jim Sinclair (one of the most successful people in the gold business since the 70′s) commented as  follows on JS Mineset:

The operation in gold is the same day after day. They are so blatant that the gold banks can teach the gold world a lesson on who is in charge. It is totally obvious. In 2500 years, gold has squashed those that thought themselves more powerful than the laws of nature, which is the basics for economics.

Excerpt : Source - Gold & Silver Takedown Feb 15th: Noise vs Fact

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Gold Price Cycle – When Will Gold Peak?

February 19th, 2013 No comments

Source : Wealth Daily / Joseph Cafariello

Graph Source: BigChart.com

“Of gold’s many patterns and cycles ranging from weekly, to monthly, to seasonally, none is as prominent the 21-22 month cycle that the yellow metal has steadfastly held to four times since 2005, each one arriving almost precisely on cue.”

“Important to note is the time when these new peaks began mounting their final leg to the each top. As the following graph shows, each of the four peaks (in red) had a running start ranging from two to five months prior (in green).”

“If this cycle repeats itself for a fifth consecutive time, the next spike up in gold should begin no later than this coming April, and possibly as soon as any day now.”

Read more here : Gold Price Cycle – When Will Gold Peak?

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Doug Casey interviews Peter Schiff

February 3rd, 2013 No comments


Peter’s reflections on current economic drivers fueling inflation and it’s subsequent effect on fiat currency and the gold price.

Source : Casey Research / Doug Casey

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