“We will go to bed with Gold at $1,500 and wake up with it $4,000 bid…and nothing offered“- Reg Howe
This quote by Mr. Howe sounds crazy. It sounds impossible and sounds like the rantings of a raving lunatic right? Well, no it doesn’t. Actually, I believe that something resembling this will not only happen but has to happen. Logically, mathematically and just pure structurally an event very similar is locked, loaded ready for the trigger to be pulled. [Read more...]
“We will go to bed with Gold at $1,500 and wake up with it $4,000 bid…and nothing offered“- Reg Howe
Tangent Capital’s Jim Rickards was on CNBC’s Fast Money today, discussing gold in the wake of the recent smash to $1320.
Rickards called the smash a transition from weak hands at the COMEX to strong hands in China and Russia (& physical buyers across the world).
Rickards stated that the trend is up from here, although gold is likely to trade sideways for a majority of the year before climbing in Q4.
Rickards informed the CNBC shills that gold does well in periods of either inflation or deflation, and that The Fed will do everything they can. When they can’t win the battle against deflation, they devalue the currency against gold ’cause gold’s the only thing that can’t fight back.
The Currency Wars author states that If the Fed wins we’ll get inflation and gold will go up. If deflation prevails, we’ll wake up one morning and gold will be (revalued to) $4,000/oz.
Rickards’ MUST WATCH thoughts on gold are below: [Read more...]
The Fed announced today that the long awaited and much anticipated redesigned $100 Federal Reserve note, which contains strong overtures to gold including a golden ink well, will be released on October 8th, 2013. The golden hued C-notes, which have been delayed since 2010 due to “production issues” have been speculated by many in the precious metals community to signify a move by the Fed back towards a gold backing for the US dollar.
Is the dollar end game and a gold revaluation less than 6 months away? [Read more...]
Survivor of Mexican Peso Devaluation: Read the Writing on the Wall, Extricate Yourselves From Your US Dollar Positions!
In light of the recent events in Cyprus, where the banks will reportedly remain closed at least through March 26th and the likelihood that Cyprus will exit the Eurozone, re-institute the Cypriot pound and devalue the currency is growing by the minute, we thought it apropos to republish LRS’ first hand account and experiences recognizing, surviving, and even profiting from the devaluation of the Mexican Peso in the late 1970′s.
For those unfamiliar with the account of the 1976 Mexican Peso devaluation (and anyone who has not experienced a currency devaluation first-hand), this is an ABSOLUTE MUST READ as while the Cypriots may be the first, they will undoubtedly not be the last to devalue their currency before the global financial debt crisis is over.
LRS, who successfully saw the Peso devaluation coming and side-stepped loss of wealth by converting his funds into US dollars, states that Americans must:
Read the writing on the wall, and extricate yourselves from your US dollar positions. Physical gold and silver bullion and coins will be the ultimate protection and wealth preservation assets during the coming devaluation of the US dollar.
My experience with the peso devaluation makes it necessary for me to move my investments away from paper into physical gold and silver. It is going to be a very tough time for the US and I anticipate the Mexican devaluation will pale in comparison to our dollar devaluation.
LRS’ full first-hand account of the Mexican Peso devaluation is below:
A rightwing group has submitted more than 106,000 signatures to the federal authorities, seeking a vote on stopping the sale of gold reserves held by the Swiss National Bank (SNB). It also wants gold bars stored in the US to be returned.
The group, led by members of the Swiss People’s Party, the far-right Swiss Democrats and the Lega dei Ticinesi movement, is confident a nationwide vote will be called on the issue once the signatures are verified. A date still has to be set by the government. The collection of the necessary 100,000 signatures over 18 months was hard going but a last-minute effort ensured they reached the goal in time, activists said on Wednesday. People’s Party parliamentarian Luzi Stamm criticised the sale of gold reserves which started 13 years ago following a decision to abandon the gold standard.
The initiative also seeks to enshrine in the constitution a clause obliging the central bank to keep a minimum of 20 per cent of its assets in gold, twice the current level.
Submitted by Bill Holter
They can’t undo this one!
Yesterday we heard that the amounts of “theft” from Cypriot depositors may be different than originally announced. It now appears that the Cypriot Parliament will not approve the wealth confiscation of their citizens. What a strange thought, can you imagine if this bank heist doesn’t go through? If they said “aw shucks, we were just kidding”? Can you imagine the bank runs? Would you suppose that some 90++% of deposits might be withdrawn by Friday’s close?
No, this puppy (bank run panic) is pregnant, not just “a little bit” mind you but ready to deliver pregnant.
One thing that I know for a fact that this will do is increase demand for Gold and Silver.
It will be very difficult to keep the lid on contagion and panic spreading from this incident. It will be difficult because when a fire breaks out within a theater, people don’t stop to go to the restroom, people will want OUT…ALL THE WAY OUT!
“Out” as in physical, non tungstened, real physical Gold IN their hands and out of the system which is now known to even the most blind, mentally deficient, head in the sand “ignorant” as a fraud! [Read more...]
The Golden Jackass Jim Willie sat down with The Doc this weekend for an extraordinary interview regarding gold, silver, and what Willie believes will soon be a massive European banking collapse.
Willie states that a Big European Bust is Coming- evidenced by the fact that European banks received $1.2 trillion from the NY Fed in January alone!
Willie states that the coming European bust will ignite a global Gold rush, a massive short covering rally, and will result in a powerful 30% to 50% rise in the gold price!
Willie also discusses gold and silver backwardation, the recent paper raids, and whether or not the metals face the risk of a 2008 type collapse as the Western financial markets go down in flames!
Jim Sinclair: Gold Will Run to $4990, Settle into the Currency for the Greatest Economic Expansion the World Has Ever Seen!
Legendary gold trader Jim Sinclair released a truly EPIC alert to subscribers Sunday night, in which Sinclair states that gold will trade to $4,990 in the coming bull run prior to settling into a role as currency for the beginning of the greatest economic expansion in history.
Sinclair states that the coming volatility in gold (& silver) will be unprecedented, with $1500 swings in the price of gold prior to full valuation being achieved, and gold’s new status as global currency beginning.
For the first time, Sinclair gives his target for full valuation of gold of $4990/oz, and states that the return of gold to a global monetary role will usher in the greatest economic expansion the world has ever seen.
Jim Sinclair’s ultimate economic and gold prediction is below: [Read more...]
Submitted by Bill Holter
We “purport” to have just over 8.000 tons of Gold. For round numbers this is valued between $400 billion and $500 billion. The Fed has in place (probably clandestinely much more) a plan to purchase $85 billion per month of Treasury bonds that the Treasury must issue but nobody else wants to buy. $85 billion times 12 equals $1 trillion two hundred 60 billion. Numerically it is $1,260,000,000,000. The Gold “reserves” (probably close to mere fumes by now) represented the wealth accumulated by the greatest industrial nation on Earth. It took roughly 170 years to accumulate some 20,000 tons after WWII which was “officially” sold down to just over 8,000 tons by 1971.
In this MUST LISTEN interview, GoldMoney’s Alasdair Macleod talks to Ben Davies, co-founder and CEO of Hinde Capital. They talk about the recent weakness in the gold price and factors that will propel gold higher.
Ben Davies states that revaluing gold and backing the monetary system with it could be one of the least disruptive ways out of the credit mess. The continuance of debt monetisation on the other hand has the potential to cause a hyperinflationary collapse. Davies is especially pessimistic about Japan, and sees a lot of trouble ahead and talks about Fukushima as a turning point for the country. He also talks about the dire straits the British pound is in.
Davies discusses the recent disappointing performance of gold bullion in light of all the monetary inflation around the globe. However, he points out that the physical market is fairly tight which usually occurs around a price bottom. They also talk about the pressure on the gold mining industry, China’s accumulation of gold, Comex gold data and the possibility of another banking crisis.
Davies’ full interview is below:
Submitted by Stewart Thomson:
Gold revaluation and money printing are the nuclear weapons arsenal held by government treasury departments.
Gold is going higher, much higher. It’s going higher because government treasury departments are moving away from quantitative easing involving bonds, and towards QE involving gold. The gold bears will be destroyed, and everything they made you afraid of will seem ridiculous, in hindsight. There will be no currency war, but there will be co-ordinated devaluation of all G20 currencies against gold, just like there was in the 1930s.
I consider the idea that the gold bull market is over to be “beyond ridiculous”. I would argue that for all practical government intents and purposes, it’s barely started. Ben Bernanke will soon have a hard decision to make. He can either accelerate QE, or he can pout in a corner, while President Obama dons a gold revaluation mask.
Venezuela, Switzerland, Libya, Netherlands, Iran…
The announcement by the Bundesbank, the central bank of Germany, saying that it would repatriate 300 metric tons of gold held by the New York Federal Reserve raised many concerns. First, Fed attorney Scott Alvarez told Congressman Ron Paul, R-TX, during a House Subcommittee meeting in June 2011, that the Federal Reserve does not and has not held any gold bullion since 1934. Second, it appears overall trust in the United States and the global monetary system in general is waning faster than the value of the U.S. dollar. Germany also plans to repatriate all of its 374 metric tons of gold stored at the Banque de France in Paris. It is unclear what effect the Bundesbank’s move will have on the price of gold, but history tells us to prepare for a spike. [Read more...]
As expected here at SD, the latest Fed minutes are pure propaganda claiming the Fed may end QE soon as the economy is recovering more quickly than expected. This is as even Walmart’s sales are crashing.
Cue the anticipated smash in gold and silver.
and….Gold & silver dropping vertically as expected. Unbelievable.
Full Fed Minutes release is below: [Read more...]
Hint: Because it’s the Credit Default Swap of the Next Financial Crisis
Submitted by Gonzalo Lira
Credit default swaps were the insurance—the hedge—against exactly what happened in 2008: Bonds threatened to default, during the Global Financial Crisis. So the CDS’s insuring those bonds rose in value—until suddenly, they didn’t: CDS’s stopped rising in value just when the markets collectively realized that the counter-parties to those CDS contracts might not be able to pay up.
What if the price of gold is drifting not because the markets don’t trust the world’s reserve currencies to continue to devalue, but because the market doesn’t trust gold?
Since everyone with any sense realizes that this is the endgame of the current race to the bottom, gold ought to be rising dramatically, but that is not happening. Gold rose steady and strong from 2000 through September 2011—but since then it’s been drifting jaggedly.
So why would gold—which is an actual, physical commodity—be acting like credit default swaps did right before the 2008 crisis?
For the same reason: Gold buyers don’t trust the counter-parties selling gold. [Read more...]
Legendary gold trader Jim Sinclair sent subscribers a shocking and MUST READ email alert last night regarding the possibility that the dollar as reserve currency will enter the initial stages of hyperinflation by mid-year, and the effects the debasement of the dollar will have on gold.
Sinclair states that by midyear of 2013 the US Federal Reserve will have to make a decision in order to keep the US bond market which is US interest rates at the low levels that have been promised until employment has made a sustained recovery and that The Fed’s defense of the US bond market is demanded by the huge pile of original and old OTC derivatives that still haunt the monetary system as specific performance contracts with any financing floating in cyber space. This could drop the US dollar below .7200 to .5600 on the USDX in a short period of time.
Sinclair states that the effects of the Fed’s increased pace of quantitative easing will lead to severe cost push inflation, a derivative of hyperinflation running from mid 2013 through 2017, and that This will be the entrance to the second phase of the gold market ascendancy. Gold got to $1900 on threatened systemic failure. Gold will go to $3500 and above on pure monetary fiat currency concerns.
Jim Sinclair’s full MUST READ alert on the imminent cost-push inflation/hyperinflation of the US dollar due to QE∞ is below: [Read more...]