Archive for December, 2012

A Question From A Faithful Reader…

I do appreciate when I get questions from my research update readers… it confirms to me that you appreciate my efforts and more importantly, you are paying attention… Keep the questions coming!

 

Q: Today’s question is from David O…. When the markets in the US drop as they did this week, why does gold & silver drop? If people are liquidating stocks and have cash to buy something else, shouldn’t that make metals go up?

 

A1: The fact is that today, the world’s reserve currency is the US Dollar (although my opinion is that it’s not going to be that way for very much longer. Refer to Research on China) so today when large investors and traders sell and go to cash, they run for the USD as a flight to safety. Unfortunately, there are no safe currencies on the planet today, so when you are liquidating and going to cash, you look around and see that all the currency choices are weak and ugly due to massive over-printing by Central Banks, so if all currencies are ugly, you have to choose the least ugly of them all… and today that is the USD.

 

However, each time this happens, it’s only a temporary knee jerk reaction until investors decide to get back into the markets of their choice, then the USD resumes it’s downtrend and gold & silver resume their uptrend. (refer to Jim Rogers article today) Therefore, when the dollar rallies, the metals sell off and more and more traders dump metals and anything else and run to a quick trade in the USD.

 

A2: The most logical answer is that I believe there are still so many people today who don’t understand what money really is. Money should have and hold value, however, they have been tricked by governments to believe that the “cash” they print is money and holds value. If that were the real truth, than why would Central Banks and countries around the world be NET BUYERS of gold today? Refer to my VIP Special Reports Dated 6/9/12 & 6/14/12. Furthermore, Central Banks and Governments around the globe today are manipulating gold & silver in a last ditch effort to continue to kick the can down the road until they run out of road and that time is coming sooner than most people think….(refer to the last link of this report)

 

That’s why it’s SO IMPORTANT to take advantage of these opportunities to LOAD UP ON GOLD & SILVER ON EVERY DIP. You see David, when the dollar rallies, we all have more buying power with those dollars and when gold & silver prices come down as a result, we can take those “temporary” strong dollars and buy more of the real honest money such as the case of Gold & Silver at great discounts.

 

People love to buy things when they are on sale and when there is a FIRE SALE they buy even more to “stock up” and this correction should be viewed NO DIFFERENTLY!!

 

The only time to sell your precious metals is when every American is back to work, the housing market is in full bloom and the economy is fixed… and unfortunately my friend that is a long way away, so until then, keep stacking!!

Silver Bullets
  • Silver Will Be The #1 Pick For 2013

Silver Will Be #1 Commodity Pick of 2013

Dec. 24 (Bloomberg) — RJ O’Brien & Associates Senior Commodity Broker Phil Streible explains why he thinks silver will be the number one commodity pick for 2013. He speaks on Bloomberg Television’s “Lunch Money.”

Read More Here

Silver Bullets
  • 2012: The Calm Before The Storm!

2012: Calm Before the Storm

Red Sky at Night, Sailors Delight,

Red Sky in the Morning, Sailors take Warning!

We have a new era dawning in Global Monetary policy. It is a new day with the monetary skies already red.

Within 90 days the captains of monetary policy have steered the world into uncharted waters and on a course that history warns us against.

          Federal Reserve:      QE3 “Unlimited” and QE4 within 90 days,

          ECB:            OMT “Uncapped”,

          BOJ:             QE 10 and the newly elected Prime Minister Abe’s mandate for “Inflation at any cost”

          BOE:             UK’s newly appointed BOE Governor, Mark Carney’s Monetary Evan Rule targeting.

 

These untested and newly commissioned captains all have PhD’s from the finest Economic schools in the world, but they clearly have not studied nor grasped the key lessons of history.

OLD LESSONS BEING RELEARNED

Read More Here

 

Silver News Surfer

The Daily Report

Silver Bullets
  • Sinclair urges Investors To Hold Tight To Their Precious Metals Positions

Jim Sinclair: Stay The Course, Manipulation Will Fail!

Jim Sinclair sent subscribers an alert today, urging PM investors to stay the course in the midst of massive cartel interventions in jim-sinclairthe gold and silver markets.   Sinclair states that the downward economic spiral caused my excessive amounts of debt cannot be stopped by central interventions or media propaganda, and that there is no tool in any central bank’s tool box to fix the size of the overmuch debt problems.

Sinclair urges readers to hold tight their physical precious metals, as cartel manipulation is a sign of madness, and will ultimately fail to prevent the outcome of the economic downward spiral in progress in Western finance.

Read More Here

 

Silver News Surfer

The Daily Report

Silver Bullets
  • Head & Shoulders Pattern Forming in Gold?

Is There A Massive Head-And-Shoulders Bottom Forming For Gold?

As a long-term investor, I don’t spend much time looking at or thinking about technical analysis, however, I’ll be the first to admit that it plays an important role in short-term moves for just about any market.

But, one of the things that I’ve come to learn over the years is that head-and-shoulders patterns are one of the most powerful forces in nature – perhaps as powerful as compound interest, what Albert Einstein once referred to as the most powerful force in the universe.

In any event, after watching precious metals get mauled again today for no apparent reason (this is becoming an almost daily occurrence) and, after pulling up a long-term chart for the yellow metal at INO.com, it occurred to me that there may be a developing setup for an inverse head-and-shoulders bottom as annotated below.

(click to enlarge)

Now, the good news here is that, if the other shoulder forms, that means that the correction that began 15 long months ago could soon come to an end and the gold price will f-i-n-a-l-l-y break free of its $1,550-to-$1,800 an ounce shackles.

This could put the yellow metal back up over $1,800 in relatively short order, on its way to new record highs sometime next year as many are predicting.

Contrary to popular belief, a resolution like this would make the current gold price correction about an average one when looking back over the four or five major corrections that have occurred since the secular gold bull market began a dozen years ago – about 18 months long.

Of course, the bad news here is that technical traders (and whatever other forces are currently operating in this market) might push the price even lower from its current $1,650 an ounce level. Given what’s happened over the last few weeks with support having clearly given way and long gold futures traders fleeing, that now seems more likely than not.

How much lower is the key.

At this point, a $1,600 price wouldn’t be surprising and my guess is that if it dips below that level, it won’t stay there very long.

Of course, the really bad news here is that this might not be a head-and-shoulders pattern at all. With a decisive break below about $1,550 an ounce, this could be just one more low in a series of lows, what some refer to as a bear market.

Investors in exchange traded gold funds such as the SPDR Gold Shares ETF (GLD) don’t seem to be in any hurry to sell as the gold holdings there have risen as the price has tumbled in recent months, now just two tonnes below the record 1,353 tonnes set less than two weeks ago.

While lower prices may be painful for new gold investors who made purchases at higher prices over the last year or so, this developing setup for a head-and-shoulders bottom will probably soon ease their pain.

 

Silver Bullets
  • China is Shining Brighter Than Gold

John Embry – Chinese Demand For Silver Has Exploded!

Today John Embry told King World News Chinese demand for silver has skyrocketed.  He also spoke about what to expect in 2013 for gold, silver and the global economy.  Here is what Embry, who is chief investment strategist at Sprott Asset Management, had to say:  “They are still mumbling about the fiscal cliff and there seems to be limited progress on that front.  I suspect they will get something cobbled together instead of letting this get to an extreme point because if they let this thing go over the cliff it would be disastrous.”

Read More Here

 

Silver News Surfer

The Daily Report

Silver Bullets
  • Is There Really A Silver Supply Crunch? US Mint Says Yes!

Still Think There is No Supply & Demand Issue With Silver?

December 17, 2012 By 

Authorized purchasers will be faced with a three week period during which there will be no American Silver Eagle bullion coins available to order from the United States Mint.

The Mint recently informed authorized purchasers that all remaining inventories of 2012-dated Silver Eagle bullion coins had sold out and no additional coins would be struck. Since the 2013-dated coins will not be available to order until January 7, 2013, this leaves a three week void for the Mint’s most popular bullion offering.

As with other bullion programs, the US Mint does not sell Silver Eagle bullion coins directly to the public, but distributes them through a network of authorized purchasers. The primary distributors are able to purchase the coins in bulk quantities at a price based on the market price of silver plus a fixed mark up. The coins are then resold to other bullion dealers, coin dealers, and the public.

The US Mint originally began accepting orders for the 2012 Silver Eagles from authorized purchasers on January 3, 2012. After a strong January, monthly sales trailed the levels of the prior year until October when demand started to move higher. In November, bullion sales continued their renewed strength, with sales of American Gold and Silver Eagles more than doubling the figures from the year ago period.

The strong sales in November caused the United States Mint to adjust their production plans for one ounce and one-tenth ounce American Gold Eagle bullion coins in order to avoid selling out prior to the end of the year. Apparently, the Mint did not adjust production plans for American Silver Eagle bullion coins.

Sales figures published on the Mint’s website indicate sales of 1,403,000 of the one ounce Silver Eagle bullion coins for the month of December. Year to date sales have reached 33,510,500.