Monday, January 31, 2011

Huge gold standing for delivery; problems in Egypt intensifies

Huge Gold Standing For Delivery; Problems In Egypt Intensifies
Good evening Ladies and Gentlemen:

Gold closed down today to the tune of $6.90 to $1333.80. Silver refused to tag along with the gold raid and ended up a good 24 cents to $28.17.

There is a lot of information that I will provide you to help with your understanding of the gold and silver market.

Let us head over to the gold and silver comex trading for the 31st of January.

The total gold comex open interest fell by a huge 10,026 contracts falling to 488,926 from Friday's close. This is basis Friday night. The front delivery month of February saw its open interest fall from 42,809 contracts to rest at 17,067.

Please remember that the 17,067 open interest on the front delivery month is Friday's actual open interest before delivery notices were sent out later in the evening. The next big delivery month is April and we saw its open interest rise from 296,055 to 310,079 as it absorbed 14,024 contracts due to the switching from February to April. The estimated volume today was a very respectable 186,270. The confirmed volume on Friday with those major switches was an enormous 335,895 contracts.

And now for silver:

the total silver open interest rose by 792 contracts to 124,343 from 123,501 contracts. The front delivery month of March saw its open interest rise from 64,946 to 65,639. There were no switches in silver.

This next stat is very interesting. The front options delivery month of February saw its open interest revealed at 152. February is not a delivery month so all of these open interests were from options exercised. The estimated volume today was rather good at 58,858.

The confirmed volume on Friday was huge at 83,993. The banking cartel tried to blow away the longs and failed.

CLICK HERE
to read the complete report

Eric Sprott - Expect $50 Silver, Gold Possibly $2,150 by Spring + All 100 Ounce Silver Bars Will be Gone in a Matter of Days

Eric Sprott - Expect $50 Silver, Gold Possibly $2,150 by Spring
January 28, 2011
With gold and silver rallying off the lows today, King World News interviewed Eric Sprott, Chairman of Sprott Asset Management which has $8 billion under management. When asked about the Sprott physical silver trust acquiring silver Eric stated, “We had to go into the market and buy about 15 million net ounces from third parties and it took us about ten weeks. It was a very, very long process and the one thing we can read out of it is obviously there weren’t 15 million ounces sitting around somewhere.” (Click the link above to read more)

All 100 Ounce Silver Bars Will be Gone in a Matter of Days
January 27, 2011
Today King World News interviewed one of the top gold and silver dealers in the United States about tightness in the silver market. Bill Haynes is President and owner of CMI Gold & Silver for and when asked about a shortage in silver he stated, “All of the major suppliers of 100 ounce silver bars are either weeks or months out, some will not even take orders. I had some conversations with a number of people who buy from them, had to dig through the information and some of them revealed that they thought the refineries were having trouble and the manufacturers were having trouble getting the physical product which falls right into the silver shortage.”
(Click the link above to read more)

King World News Broadcasts: 2 Jim Rickards Interviews, KWN Metals Wrap, Eric Sprott & Michael Pento

RIOTS, GOLD, CHINA & RUSSIA BUYING - Jim Rickards: KWN Expert Analyst & Sr. Managing Dir. of Omnis Inc. - Jim’s been a direct participant in many of the most significant financial events over the past 30 yrs. including the 1981 release of hostages from Iran. He was also principal negotiator for the gov. sponsored bailout of LTCM. Clients include private investment funds, investment banks and government directorates in national security and defense. He is advisor to the Committee on Foreign Investment in the US and Support Group of the Director of National Intelligence and testified before Congress on the causes of the financial crisis.


KWN Weekly Metals Market Wrap
: We have added new segments to the KWN Weekly Metals Wrap covering gold, silver, trading and a plethora of other factors affecting the precious metals markets. I am giving King World News listeners globally access to what has long been my weapons in researching where gold and silver are headed directionally along with the COT Report. We Cover the Commitment of Traders Report in detail as well as a number of other factors which can influence the gold & silver market price action.

2011 GOLD, SILVER & MORE - Eric Sprott
: Chairman, Chief Executive Officer & Portfolio Manager of Sprott Asset Management - Eric has over 35 years of experience in the investment industry and manages over $8 billion. Eric has been stunningly accurate in his writings for over a decade, and is one of the highly respected industry professionals who was able to foresee the current crisis. He chronicled the dangers of excessive leverage as well as the Fed bubbles, while correctly forecasting the tragic collapse we are enduring. Sprott Asset Management is one of the top firms in the world and has become well known for creating a gold and silver trust.

GOLD, BONDS, DEFAULT & END GAME - Michael Pento
: Senior Economist at Euro Pacific Capital - Michael is a well-established specialist in the “Austrian School” of economics. A regular on CNBC, Bloomberg, Fox Business, and other national media outlets and his market analysis can be read in most major financial publications, including the Business Insider, Wall Street Journal, etc.. Prior to joining Euro Pacific, Michael worked for a boutique investment advisory firm to create ETFs and UITs sold throughout Wall Street. Earlier in his career, he worked on the floor of the New York Stock Exchange.

DAVOS GOLD STANDARD & NEW DEPRESSION - Jim Rickards
: KWN Expert Analyst & Sr. Managing Dir. of Omnis Inc. - Jim’s been a direct participant in many of the most significant financial events over the past 30 yrs. including the 1981 release of hostages from Iran. He was also principal negotiator for the gov. sponsored bailout of LTCM. Clients include private investment funds, investment banks and government directorates in national security and defense. He is advisor to the Committee on Foreign Investm

James Turk - Gold & Silver Have Reached an Important Bottom

James Turk - Gold & Silver Have Reached an Important Bottom
With volatility continuing in gold and silver, today King World News interviewed James Turk out of Spain. When asked about the action in precious metals Turk responded, “Through Friday’s close on the LBMA, silver remained in backwardation, even by the numbers reported on the LBMA’s site. The strong bounce on Friday after the option expiration combined with the backwardation is clear evidence that silver doesn’t want to stay down here in this area and is ready to move higher.”
Turk continues:

“If we get silver above $28.70, that will reverse the trend followers from short to long. The number on gold is $1,378. This is what is going to take gold and silver to new highs. You will see open interest expanding as people who were shaken out come in and put on long positions.

You have to keep in mind Eric that this little shakeout over the last couple of weeks has done nothing to change the very bullish fundamental factors that have been driving gold and silver higher. Most significantly the CRB CCI (Continuous Commodity Index) is at record highs. There is simply too much money being printed around the world and this monetary debasement is behind the ongoing bull market in gold and silver.

There is a relationship between Brent Crude and West Texas Intermediate with WTI normally trading at a premium to Brent Crude. However, over the last couple of weeks, Brent has climbed to a huge and record premium over WTI and has remained in the high 90’s. At one point Brent was trading as much as $12 higher than WTI which is unheard of.

The significance of the way these two oils are trading is that Brent is a more accurate reflection of global oil prices and is therefore mirroring the record high prices we are seeing in the global food indexes.

Given the usual close correlation between the CCI and global crude oil prices and gold and silver, we can reasonably conclude that the correction in gold and silver is over and that the precious metals are going to start climbing higher.

As further evidence that we have reached an important low, bullish sentiment and the commitment of traders report are at levels seen at important bottoms.”

For those of you who are making monthly purchases of physical gold and silver, continue to do so and do not try to time these markets. Evidence is mounting that both gold and silver are putting in a floor to the downside near these levels. It will be interesting to see how high the next rally takes them.

Saturday, January 29, 2011

Harvey Organ's Daily Gold & Silver Report

Gold and Silver rally/Huge Problems in Egypt/Oil rises
Good morning Ladies and Gentlemen:

Before commencing, I would like to introduce to you, the latest entrants to our famous banking morgue:

We lost 3 banks last night (courtesy of Jim Sinclair)

Bank Closing Information – January 28, 2011
These links contain useful information for the customers and vendors of these closed banks.

FirstTier Bank, Louisville, CO
Evergreen State Bank, Stoughton, WI
The First State Bank, Camargo, OK

http://www.fdic.gov/

end.

Gold closed at comex closing time at $1340.70 up a huge $22.30. In the access market it finished the day a little lower at $1338.50. Silver had a banner day closing up .90 to close at $27.94. Silver and gold were hit in the access market but silve rebounded after being hit hard to close higher at 28.01 up $1.07 for the day.

I would like to go straight to comex trading and see how things of over fared and how those developments will assist you when Monday arrives.

The total gold comex open interest fell by 2226 contracts to 488,926 which is basis Thursday. As Thursday was a huge raid against silver and gold the contraction in open interest was minor. The January options expiry month has now been officially put to bed as it is now off the board. The all important front delivery month of February saw its open interest fall from 99,036 to 42,809 for a loss of 56,227 contracts. These guys switched to the next delivery month of April. This represents 4.28 million oz.

However we must wait to see the final open interest for February and that will occur at 1;30 pm Monday. (remember in OI we are always 1 day back) The estimated volume today was good at 303,300 considering that 56K switched. The confirmed volume on Thursday as promised to you did exceed 400,000 contracts to register a reading of 411,190.

In the silver comex open interest hardly budged down 720 contracts to 124,501. The January options expiry month is now off the board in silver as well. The front month of March saw its open interest fall marginally from 66,113 contracts to 64,946.

It will be exciting to watch this open interest throughout February as we will witness how many will stand in silver for this big delivery month. The volume on the silver comex estimated for yesterday was a very high 73,895. The confirmed volume on the day of the raid on Thursday was 65,602. The bankers did not like what they saw in silver and whacked and whacked but silver pricing remained resolute.

CLICK HERE
to read the rest of Harvey Organ's Daily Gold & Silver Report

The Truth About Markets With Max Keiser & Stacy Herbert

CLICK HERE to listen to The Truth About Markets With Max Keiser & Stacy Herbert

Thursday, January 27, 2011

Harvey Organ's Daily Gold & Silver Report - Huge raid on gold and silver/large silver deliveries/entering February gold delivery month

Huge raid on gold and silver/large silver deliveries/entering February gold delivery month:

Good evening Ladies and Gentlemen:

I am now going to emphasize this to everyone: please do not use any leverage in your investments with respect to gold and silver. You can buy silver and gold on these dips but do not leverage your bet as the banker gangsters will separate you from your hard earned dollars. You are going to see a big disconnect between the paper gold and silver and the real physical stuff. The end game is being played out due to the global rush into these precious metals instead of trusting paper.

Gold closed today at comex closing time at $1318.40 for a loss of $14.60. Silver at first resisted then succumbed on the downward pressure from gold losing 9 cents to $27.04 after rising to $27.75 early in the day.

Let us go straight to the comex trading and see the internals.

The total gold comex open interest fell by 14,825 contracts (basis yesterday). We must have had some bank short covering. The front options delivery month of January saw its OI register 13 and with only 9 deliveries today, the 333 OI of yesterday was totally bogus as I figured. The front delivery month of February which is of great interest to all, fell from 146,812 to 99,036 contracts as the February contract went off the board. Options also expired last night. The banking cartel as is their usual modus operandi of late, they raid the day after options expiry right up until first day notice which is on Monday. Notices are sent down Monday for servicing on Tuesday. Expect massive volatility from now until the 31st of January.

The estimated volume today was enormous at 350,090. My bet : the confirmed volume tomorrow may breech 400,000. The confirmed volume yesterday was also very high at 301,311 with quite a few rollovers.

and now for silver:

The total silver OI fell marginally by 1000 contracts falling from 125,229 to 124,221. The front options delivery month of January saw its OI fall from 113 to 101. We had 126 deliveries yesterday so all of the fall was due to the deliveries and many more options were exercised and revealed to us. The front March delivery month saw its OI remain resolute falling a tiny amount from 66,934 to 66,113. The estimated volume today was fair at 54,954. The confirmed volume yesterday was also mediocre at 56,023. There were no switches on the silver.

CLICK HERE
to read Harvey Organ's Full Gold & Silver Report

Do gold and silver still retain their lustre as an investment? BNN asks Eric Sprott, CEO, Sprott Asset Management.

http://watch.bnn.ca/business-day/january-2011/business-day-january-24-2011/#clip406470
Do gold and silver still retain their lustre as an investment? BNN asks Eric Sprott, CEO, Sprott Asset Management.

http://watch.bnn.ca/business-day/january-2011/business-day-january-18-2011/#clip403553
BNN speaks to David Franklin, Market Strategist at Sprott Asset Management CEO of Sprott Private Wealth.

Keiser Report: Bono money stealing inspiration (E116)


http://www.youtube.com/watch?v=bjNUYvDK99E
This time Max Keiser and co-host, Stacy Herbert, talk about accounting tweaks and super cycles. In the second half of the show, Max talks to Michael 'Woody' O'Brien about the gold standard and silver.

China Plays Europe Card, Ramifications of Chinese Dollar Swap Facility by Jim Willie

http://www.marketoracle.co.uk/Article25878.html
However, China has three advantages over the US that stand out. They have $2.65 trillion in savings, rainy day money in a war chest. They have a vast industrial base, courtesy of the US, the West, and Japan, which donated the technology for the fabled disastrous low-cost solution. They have an expanding middle class. Neither the US, the UK, nor Western Europe has anything remotely similar to these three benefit allowances. It is slowly becoming clear that the US granted the Most Favored Nation status to China in return for massive gold & silver swaps to the USGovt. The Wall Street fraud kings illicitly sold the leased bullion into the market, to sustain the American fiat paper congame, and thus a betrayal to the Chinese.

The Beijing leaders are highly motivated to unseat the Anglo bankers from their perched throne, emboldened by vengeance. The betrayal was to the American people also, since waves of jobs went to China from US shores, since the US sold not only its own Fort Knox gold inventory, but Western Europe's also, then China's to boot. Those who believe the USGovt has any gold reserves at all should donate their cerebrums to science while still alive, a euthanized suicide. The USGovt in all likelihood is in possession of less than zero gold, owing both Europe and China massive amounts. It is the American ticket to the Third World, paved by lost industry, locked by vast debt, assured by broken economic principles blessed by high priest heresy. The US banking leaders still believe the US can revive itself by the flood of more debt and stronger consumer spending, without a clue of what legitimate income means or where it comes from.

A Decade of Gaining 18% A Year, Some 'Relic' - The Lows Of This Manufactored Correction Will Be The Lowest Lows We Will See In 2011 - John Embry

A Decade of Gaining 18% A Year, Some 'Relic' - The Lows Of This Manufactored Correction Will Be The Lowest Lows We Will See In 2011 Take Advantage Of This Opportunity - John Embry Sprott Assets
http://www.sprott.com/Docs/InvestorsDigest/2011/MPLID_012811_pg003Emb.pdf

"Gold is money. Everything else is credit." - JP Morgan

Harvey Organ - Gold and silver rise with FOMC announcement/CBO adjusts budget deficit to 1.5 trillion dollars

Gold and silver rise with FOMC announcement/CBO adjusts budget deficit to 1.5 trillion dollars

Good evening Ladies and Gentlemen:

Today at 2:15 pm the Fed made their announcement and basically they announced that the economy was soft and that QEII will continue to add stimulation to the economy. I would like to inform you that the Fed will engage in QEIII and then QE iv ad nauseum . Do not be fooled that the USA is looking at ways to exit their massive infusion of cash. It cannot and will not happen. The government has receipts of 2 trillion dollars and yet spends 4 trillion dollars. The deficit must be financed somehow and it is this money that becomes the QEII, III Iv etc. Please keep this in the back of your mind and never let the boob tube change your thinking on this matter.

Let us see how things fared at the comex:

Gold closed at closing time 1:30 (comex closing time) at $1333.00 up 80 cents on the day. Silver on the other hand add a much better day rising by 32 cents to $27.13. However at 2:15 with the news of continued QEII and the revised CBO budget deficit, gold took off in the access market and right now it is trading at $1342.80. It did hit 1348.00 an hour ago. Silver this minute is trading at $ 27.62.

Here is a summary for the gold comex trading:

The total gold comex OI rose by 7049 contracts to 506,047 from yesterday's recorded open interest of 498,998. I guess the recorded drop in OI yesterday was real. The front options delivery month of January saw the strangest of all events today. It saw a massive increase in its OI from 9 contracts yesterday to 333. Many are saying this is real. It find it totally unbelievable that this quantity of exercised options were finally reported by the CME. The front February delivery month saw its open interest fall from 176,672 to 146,812 as these fellows rolled into the next big delivery month of April. I would like to point out another strange trading factoid: the volume on the February gold contract exceeded the total open interest for February. I guess the regulator boys will overlook this detail in the surveillance. The estimated volume today was normal for the end of a non delivery/entering a delivery month January entering February. The estimated volume was 224,040 contracts. The confirmed volume yesterday was a very high 306044 where we witnessed the huge 81000 drop in open interest.

On now onto our famous silver comex trading;

The total comex silver open interest saw a drop of 2999 contracts from yesterday's level of 128,228 to 125,229. I think this is very bullish for silver. The front options delivery month of January saw its open interest fall marginally from 179 to 113 contracts for a fall of 66 contracts. However yesterday's deliveries were 126 so all the fall was for these deliveries.

CLICK HERE
to read the full report

Tuesday, January 25, 2011

Stunner: Gold Standard Fully Supported By... Alan Greenspan!?



Stunner: Gold Standard Fully Supported By... Alan Greenspan!?
You read that right. After such establishment "luminaries" as World Bank president Robert Zoellick, Warren Buffett's father Howard, Jim Grant, and, most recently, Kansas Fed president Thomas Hoenig, all voiced their support for a return to a gold standard, the most recent addition to the motley group of contrite voodoo shamans is none othe than the man who is singlehandedly responsible for America's addiction to cheap toxic credit, who spawned such destroyers of the middle class as the current Chaircreature, and who currently is the chief advisor in John Paulson's crusade to gobble up every ounce of deliverable physical in the world: former Fed Chairman - Alan Greenspan! In an interview with Fox Business, the man who refuses to go away into that good night: "We have at this particular stage a fiat money which is essentially money printed by a government and it's usually a central bank which is authorized to do so. Some mechanism has got to be in place that restricts the amount of money which is produced, either a gold standard or a currency board, because unless you do that all of history suggest that inflation will take hold with very deleterious effects on economic activity... There are numbers of us, myself included, who strongly believe that we did very well in the 1870 to 1914 period with an international gold standard." And a further stunner: Greenspan himself wonders if we really need a central bank. Now our only question: why couldn't the maestro speak as clearly and coherently during his tenure which resulted in our current near-terminal financial state. And as a reminder, courtesy of Dylan Grice, if and when we do get a return to a gold standard there would be a need to reindex the monetary base to a real time equivalent price of gold, putting the price of the precious metal at about $6,300: "The US owns nearly 263m troy ounces of gold (the world's biggest holder) while the Fed's monetary base is $1.7 trillion. So the price of gold at which the US dollars would be fully gold-backed is currently around $6,300." And here you have people worried about day trading volatility...



h/t Mike Krieger

Keiser Report: China + Yuppies = Chuppies (E115)


This time Max Keiser and co-host, Stacy Herbert, talk about China's ultimate yuppies, America's sheetmetal workers' union and a hundred trillion in new credit. In the second half of the show, Max talks to Reggie Middleton of Boombustblog.com about the foreclosure crisis and those lucky to miss out on Goldman's Facebook deal.

Saturday, January 22, 2011

Harvey Organ's The Daily Gold & Silver Report - Silver in Backwardation in London, silver OI refuses to fall/margin levels rise in silver/gold

http://harveyorgan.blogspot.com/2011/01/silver-in-backwardation-in-london.html
Silver in Backwardation in London, silver OI refuses to fall/margin levels rise in silver/gold

Good morning Ladies and Gentlemen:

Before we start our regular commentary, I would like to inform you that 4 banks entered the banking morgue last night:

1. Community South Bank of Easley South Carolina

2.United Western Bank of Denver Colorado

3. Bank of Asherville, Asherville, North Carolina

4.Enterprise Banking Company, McDonough Georgia,

I wrote to the CFTC voicing my concerns over many matters. I am open to your comments You will notice that I sent it to only 4 commissioners. I left out Bart Chilton. From: harveyorgan@rogers.com

To: GGensler@cftc.gov, somalia@cftc.gov, MDunn@cftc.gov, JSommers@cftc.gov

Subject: Position limits and elimination of exemptions. Date: 1/20/2011 9:40:56 P.M.

I am rather disappointed that you have allowed the major banking short interests to continue with their fraudulent and manipulative practices in the precious metals. You have allowed another 60 days of massive shorting by the bankers to allow for yet another public input. The public for the past 2 1/2 years have bombarded you with millions of emails with the hope that you will see the light and put position limits on silver and eliminate the phony exemptions. Mr O'Malia was the lone dissenter on your latest vote voicing his concern that the swap books on JPMorgan once opened would be a shock and that the CFTC would not know how to handle the situation. It has been my contention all along that the major short, is in reality the Chinese government who lent their hoard of silver in support of the suppression of gold. It would be difficult to suppress gold while allowing silver to advance in price. The gold was supplied by central authorities. The USA ran out of silver in 2003 and in order to receive most favoured nation status, the Chinese have done a swap with the USA with a date certain to re-swap. It is quite conceivable that the Chinese have asked for their silver back but were refused as global supplies for silver are vanishing.

Yesterday, the USA Mint announced a record 4.6 million oz of silver eagles sold in the first 3 week period of January which is a record. The USA produces 40 million oz from their mines so for the first time, the USA must import silver from the rest of the world to satisfy the mint's requirements.

The comex is witnessing massive movements of silver into and out of registered vaults signifying turmoil as this silver is putting out fires in other jurisdictions. In gold we are witnessing the opposite. How on earth is gold being settled?

What is even more troubling to me is this:

How could you even discuss position limits and the elimination of exemptions without first telling us what happened in July 2008 which caused you to bring in the enforcement division of the CFTC? Mr Chilton has decided to act unilaterally in proclaiming one trader, JPMorgan, with fraud, and from his statement to the press, major class action law suits have been initiated and filed.

It is frustrating to many of us who witness time and time again massive un-backed paper driving the commodity price of silver and gold down like today. I guess the CFTC's motto that the futures market is a price discovery mechanism is out the window. Mr Dunn has stated that he needs more manpower to try and catch manipulation. Yet when a whistle blower is presented to you and this person describes in detail the accounting of how the crime has been committed in the past and how it will happen in the future and yet you refuse to listen to this gentleman.

Mr Sprott of Sprott Asset Management is having a tough time trying to find any physical silver for his silver fund and yet the bankers massive sell huge amounts of paper silver. The SLV also has liquidated massive amounts of "paper silver". The real stuff is difficult to find in quantity.

Sooner or later, this fraud will end and I guess there is going to be a lot of explaining to do.

I urge you to do the right thing and order JPMorgan and friends to stop this massive fraud and manipulation immediately.

Harvey Organ.

Late Thursday night the CME ordered margin requirements to rise in gold and silver with a sprinkling of other commodities thrown in. The target in this matter was to a lesser extent gold but most assuredly silver.

First the announcement and commentary courtesy of Zero Hedge:

Inflationary Guerilla Tactics Resume As Comex, Nymex Hike Margins On Gold, Silver, Cracks, Spreads And Other Products

Submitted by Tyler Durden on 01/20/2011 20:11 -0500

Wonder why the smart money was rushing headlong out of gold and silver over the past few days, and especially today in the AM session? Here is your answer: in tried and true fashion the Comex just hiked margins in gold, and silver by about 6%, and threw in a few other commodities to mask things up. And unlike the last time it did it, when it could at least pretend to justify its actions with the surge in gold price, this time with the PM complex dropping, we wonder what excuse the CME will use this time. Initial and Maintenance margins were just increased in everything from 10 Tr Oz Gold Futs, Comex 100 Gold Futures, Comex Miny Gold and Silver, E-mini Gold and Silver, Comex 5000 silver futures to Silver trade at settle. Also added were Copper, Iron Ore, propane, butane, and other nat gas. Most notably, and confirming that the administration and the money printing authorities are terrified by the surge in crude, the CME also hiked margins in various refined products and coal. The official scramble to "contain" the aftermath of Bernanke's lunacy is accelerating. We wonder when REDI, Prime Brokers and E-trade will comparable collapse purchasing margin for stock trading accounts. Of course, as with all other such superficial market interventions, the impact is shallow and is overrun in a matter of days.

And no...there was absolutely no leak this time. We promise.

-END-

Please note that the raising of margin requirements came after huge raids and the price of these precious metals had been hit pretty hard. You generally raise margins when prices are reaching their pinnacle not when they have fallen off. The higher margins would have hurt our bankers in the pocket book as the total short position was getting quite high. The object of the exercise was to get a huge downdraft in the price as the bankers were getting quite desperate especially in silver. Wait until you see the open interest and you can judge for yourself..the exercise failed miserably.

Gold closed on Friday, down $5.50 to $1341.00 Silver closed down only 4 cents to $2745 much to the chagrin of our bankers. The attempted downdraft failed due to the heavy purchase of physical metals around the world. Many are starting to see the total disconnect between the paper silver and gold world from the real physical world

Let us see how things fared over at the comex yesterday.

The total gold comex open interest fell marginally by 3229 contracts to 578,484. The open interest has fallen from the very low 600 thousands to 578,000 with a drop of over$ 80.00 in gold price. The bankers needed a much larger cleansing of open interest in the gold complex.

The front options delivery month of January saw its open interest fall from 27 to 14 for a drop of 13 contracts. The deliveries on Thursday was 5 so we somehow lost 8 longs for no apparent reason. The all important front delivery month of February saw its open interest fall marginally from 244,371 to 225,141. First day notice is a week away and I will be watching this closely for you. The estimated volume for Friday was a rather robust 191,067. The confirmed volume on Thursday, the day of the monstrous raid was a huge 301,125. The banking heroes certainly had their fun supplying this massive un-backed paper.

In silver, the total open interest fell ever so slightly from 136,552 to 135,841 for a drop of only 711 contracts. The bankers knew this already by 4 pm Thursday. They called on the CME to raise margin requirements in the hope that they could be bailed out. They failed miserably as the fall in price of silver was tiny. The front options delivery month of January saw its open interest rise from 25 to 65 for a gain of 40 contracts. On Thursday, we saw only 17 deliveries so mysteriously we gained some options that were exercised for physical metal. The front delivery month of March saw its open interest remain resolute at 71,722 dropping only 241 contracts. The estimated volume yesterday was quite small at 68,916. The confirmed volume on Thursday was extremely high at 102,818.

CLICK HERE to keep reading

Eric Sprott Interviewed by David Morgan of Silver-Investor.com

http://cache.silver-investor.com/video/11-24-10-PremiumWebinar/11-24-10-PremiumWebinar.html

King World News Weekly Metals Wrap + New Interviews

KWN Weekly Metals Market Wrap: We have added new segments to the KWN Weekly Metals Wrap covering gold, silver, trading and a plethora of other factors affecting the precious metals markets. I am giving King World News listeners globally access to what has long been my weapons in researching where gold and silver are headed directionally along with the COT Report. We Cover the Commitment of Traders Report in detail as well as a number of other factors which can influence the gold & silver market price action.

2011 GOLD, SILVER & MORE - John Hathaway
: Director and Senior Managing Director of Tocqueville Asset Management - John is Portfolio Mgr. and a member of the Investment Committee at Tocqueville Asset Management L.P. He is also a Dir. of Tocqueville Mgmt. Corp., the General Partner of Tocqueville Asset Management - John has almost 4 decades of investment experience and is also known internationally for his writings about the U.S. economy, gold, silver, commodities and much more. He is one of the most respected institutional minds in the world today regarding gold. Degrees from Harvard, University of Virginia and a CFA...

BREAKING NEWS: $100 TRILLION NEW DEBT - Jim Rickards:
Senior Managing Director of Omnis Inc. - Jim has been a direct participant in many of the most significant financial events over the past 30 years including the 1981 release of hostages from Iran. He was also principal negotiator for the government sponsored bailout of LTCM. Clients include private investment funds, investment banks and government directorates in national security and defense. He is advisor to the Committee on Foreign Investment in the United States and Support Group of the Director of National Intelligence and testified before Congress on the causes of the financial crisis.

Thursday, January 20, 2011

Gold should hit $2000 this year - John Embry Sprott Asset Management's Chief Investment strategist likes gold but prefers silver and is very positive

http://www.mineweb.com/mineweb/view/mineweb/en/page96990?oid=118782&sn=2010+Detail&pid=110649

Mike Krieger Explains Why Fiat Money is Immoral - ZeroHedge.com



Mike Krieger Explains Why Fiat Money is Immoral


At the Sanford Bernstein conference several years ago Joseph Stiglitz spoke and said a good and healthy financial system is a small financial system. I couldn’t agree more. This is especially the case in a purely fiat money system. Money is too important to allow greedy children in expensive suits on Wall Street and dangerous academics at the Fed to play around with. I do not claim to know what the ideal money system is but I want to be very clear on this point. If we have a fiat system like today the banks should be the most regulated industry on the planet and operate like utilities. They are supposed to help the productive economy innovate and create wealth. They are not supposed to be parasites that suck the lifeblood out of the real economy and compose 16% of the weight in the S&P500 (only technology is bigger at 17%). Something is VERY, VERY wrong here.

Silver Spreads: Contango Crush Update - ZeroHedge.com


Silver Spreads: Contango Crush Update

A Continuation from Yesterday’s Story: Silver Contango Crushed – Short Squeeze Imminent or Position Limit Ruling Fall Out? (below)

Courtesy of FMX Connect

Silver spreads continue to sell off on Thursday. So far, any theories that weaker spreads are ultimately bullish for the physical metal have to be viewed suspiciously. We spoke with a couple of traders on the topic and our revised possibilities list is as follows:

Points

Silver spreads are being sold because..

1. There is a physical short squeeze coming.
2. The appearance of a short squeeze was manufactured as an exit strategy for a long to get out.
3. Spreads are being messed with in light of the CFTC position limit ruling.
4. Two-year silver rusts and spot silver doesn’t.

Counterpoints

1. Why is the market lower?
2. It’s an awful lot of money to spend to camouflage your selling. Millions,upon millions of dollars.
3. This theory remains entirely possible but the kind of sophisticated funds affected by the new regulation probably wouldn’t puke that way unless they were blowing out.
4. We’re no chemists, but we suspect this statement is somehow inaccurate.

For the time being, we can not discount that there is a short squeeze coming but more information is needed before we can know for certain. If a bullion dealer is selling spreads because they anticipate making delivery we think we’d probably be the last to know, that’s why we are think it is more likely than not that this a charade. Whatever the message may mean, it is certainly expensive to send.

There is one other theory worth mentioning. The most important thing to know is that history does not repeat itself but it sometimes hums a similar tune. What happened in 1997 we do not think will happen again, exactly the same way. In 97 spreads collapses and the market screamed higher, there was no misinterpretation of the signal. We think someone is being fooled or making a mistake, we just don’t know exactly how yet. There may be a sap at the table, but his identity is unclear for the time being.




FMX Exclusive: Silver Contango Crushed – Short Squeeze Imminent Or Position Limit Ruling Fall Out?





Courtesy of our friends at FMX Connect.

Silver Contango Crushed – Short Squeeze Imminent or Position Limit Ruling Fall Out?

In silver, the contango was hit hard about 3 AM this morning with 2 year futures coming in as much as 15 cents relative to spot. The Z11/Z12 futures spread settled 21.40 yesterday and the market today is 13/15. The H/Z futures spread settled 19.2 The market today is 9/11.

What could cause this?

Factually speaking, 2 reasons cause contango to collapse. The first is interest rates and interest rates would have to decrease a large amount for this type of move in the spreads. The second is delivery concerns. When a producer, bullion dealer, or speculator is short the front month, come expiration, it has a a choice: make delivery or don’t make delivery. There are 2 ways to avoid making delivery, Reissuing, which is essential covering shorts, and deferment. Deferment involves leasing the metal from someone else or rolling your short to a back month.

Last time we saw a contango move this significant was in 1997 before Warren Buffet took delivery. While more information is needed, and this could be a fake out we think the spread’s move is important. It happened during Asian hours and the Asian market has shown strong physical demand. If this continues in conjunction with higher lease rates you will more than likely see a short squeeze. There is another less exciting reason it could be happening. Additionally, it could be related to the CFTC position limit ruling. Silver position limits will be implemented in 2 tiers. The first tier is a limit on front month contracts. The 2nd tier limits the aggregate number of contacts for all back months combined. Someone could just be moving their position around to deal with the new regulatory structure. Our conclusion is that we are going to have a short squeeze or increased volatility in the spread market as major players shuffle their open interest around. Stay tuned..

Keiser Report: Corrupt Kleptocracy


This time Max Keiser and co-host, Stacy Herbert, talk about fiscal pathology, Bill Daley 'getting it done' and oil prices role in the UK trade deficit. In the second half of the show, Max talks to David Malone, author of The Debt Generation

Tuesday, January 18, 2011

Gold and Silver Rise In Price Open Interest Rises - Harvey Organ's Gold & Silver Daily Report

Tuesday, January 18, 2011
gold and silver rise in price open interest rises:

This will be short as my computer has been compromised.

I will just discuss the comex trading for today:

The total gold comex interest rose 2039 contracts to 592,817 from 590,817. The January open interest rose from 50 to 128. The front delivery month of February saw its open interest fall marginally from 277,338 to 269,770. The estimated volume for today was a rather high 188,481. The confirmed volume for friday was 230,606.

The silver comex OI rose by 1048 contracts from 135,881 to 136,929. The front January options expiry month saw its OI rise from 34 to 59. The front delivery month of Maarch was its OI rise from 73,626 to 75,575 which really shook our bankers.

The estimated volume for today was 56,551. The confirmed volume for Friday was 81,402.

There were 113 notices served for gold. The total number of notices served thus far this month total 593.

In silver, the total number of notices served equates to 28 and the total number so far this month total 431.

In gold the total number of gold oz standing in this delivery month is as follows:

59300 oz (already served) + 1500 oz (to be served) = 60,800 oz The number of gold oz standing is rising.

In silver: the total number of silver oz standing:

2,155,000 + 155,000 oz = 2,310,000 oz. Again this number is rising.

as for inventory movements;

In silver. the customer received 599,154 oz. but also withdrew 263,994. The dealer received 381,803 oz. The chaos in the silver comex continues.

In gold: the customer received 67,108 oz and withdrew 129 oz.


Sorry for the trouble. I am now sending my computer to fix.

I am having a great difficulty in accessing my blogsite.

Harvey

US Mint Reports January Silver Sales Hit 26 Year High -ZeroHedge.com


US Mint Reports January Silver Sales Hit 26 Year High


When we had last checked on the total silver sales by the US Mint earlier today, the amount given was 3,407,000 ounces, a number which we had earlier speculated would be a monthly record if sales were maintained at the current pace. And as the number had not been updated we assumed that "either buying interest has ceased overnight (unlikely), that the mint is not updating its numbers (likely), or, worse, that the Mint has now stopped selling any form of silver for reasons unknown." Indeed, the result was the likely one, and following a quick check today on US Mint sales confirms that sales have once again surged following the Mint's delayed update. As of today they stood at a whopping 4,588,000, or nearly 1.2 million ounces sold in a few short days. This represents the biggest monthly total sold by the US Mint going back to 1986 when the Mint disclosed its first monthly sales record... And the month is not even over yet. In other words in just the first three weeks of January, the mint has sold more silver than in any month in its history according to its public records going back 26 years.

So the bad news is that while the bulk of Scotia Mocatta's silver bars continue to be sold out (and just the Valcambi 1kg bar is shown as available), the good news is that the kind folks at BullionVault were good enough to advise us that their physical silver inventory is now back and is on line (and contrary to our previous notification, the firm's physical shortage was not in Germany but in England, where its vaults are located) so our England-based readers can go ahead and purchase at will from said location.

Keiser Report: Insane Insanity! (E113)


This week Max Keiser and co-host, Stacy Herbert, talk about the insanity of monetary policy, Jamie Dimon on municipalities going bankrupt and firearm finance in America. In the second half of the show, Max talks to economist, Shir Hever, about the what the Wikileaks cables reveal about the economy of occupation.

Monday, January 17, 2011

The Gold Standard Journal

http://goldstandardinstitute.org/GSI/wp-content/uploads/2010/06/TheGoldStandardJournal.pdf
"The reality is that the Gold Standard is NOT for the rich… just the opposite. Under Gold, a wage earner gets a true value for his work, either in Gold coins, or Silver. These coins do not depreciate, they are never defaulted on, indeed history shows that they tend to increase their buying power over the years. By contrast, paper 'legal tender' is constantly losing value… the only question being how quickly; over decades, years, or a la Zimbabwe and Weimar Germany, days! Holders of paper money always lose, the only question being how quickly; over decades, years, or days."

King World News Blog Posts

Ben Davies - Fears: Social, Economic & Financial Eventualities
January 18, 2011
With the financial world seemingly lurching from one crisis to another, Ben Davies, CEO of Hinde Capital eximanines his “fears” about social, economic and financial eventualities. This is a portion of a brand new 45 page report from Hinde Capital titled, “None Shall Sleep.”

To Read more please Click Here on Hinde Capital’s Latest HindeSight Letter discussing events for 2011.

Richard Russell - Gold Bull is Angry, Shaking Off Late-Comers

January 17, 2011
With gold and silver weaker in overnight trading, Richard Russell recently commented, “I keep wondering if we're now in the "scary correction" phase of the gold bull market. This is the juncture where gold scares hell out of everybody, prior to its final speculative phase. The gold bull is angry,...

European Silver Shortage Spreads To UK - ZeroHedge.com


European Silver Shortage Spreads To UK

On Friday we disclosed that major PM distributor, retailer and trading house BullionVault.com had run out of physical silver inventories in Germany (and possibly elsewhere) and was advising clients to seek the precious metal elsewhere. Today, we find that the UK joins Germany in what is now becoming the second round of the global silver shortage (the first one occuring in May 2010 when it was unclear just how the ECB would deal with insolvent PIIGS). Below is the warning by British BullionByPost notifying clients that the company currently has no silver bars in stock. Inventories are expected to be restocked later in February. In the meantime, as before, we urge customs agents to do a quick check of the cargo hold of all private jets (and time shares) registered to any banker making over $25 million. After all, surely the Tunisian president didn't come up with the idea to flee with 25% of Tunisia's gold entirely on his own.

THE RULING CLASS VS LIBERTY : a SGTbull07 Micro Doc


The precious metals paper ponzi will collapse suddenly and with little warning.

Friday, January 14, 2011

BullionVault.com Runs Out Of Silver In Germany - ZeroHedge.com


BullionVault.com Runs Out Of Silver In Germany


With the US Mint selling silver at an unprecedented pace, it was only a matter of time before the silver shortage would be spotted across the Atlantic, where distributors ran out of both gold and silver on a daily basis during the first time Europe became insolvent some time in early May 2010. Sure enough, BullionVault.com has announced that it has run out of silver in Germany "due to high demand." In the meantime, the CFTC's actions have succeeded in allowing the JPM's suppression of precious metals markets to continue indefinitely, yet all its actions have really done is to provide a short-lived lower cost basis for the precious metals as there is no indication demand is subsiding. At some point the margin calls will come. Then not even Gary Gensler will be able to bail out JPM (we wish we could say the same about Ben Bernanke to whom JPM's role as head of the tri-party repo clearing market is irreplaceable in maintaining an orderly shadow liquidity market).

$28 Should Hold on Silver, After Final Move Down

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/1/14_$28_Should_Hold_on_Silver,_After_Final_Move_Down.html

King World News New Interviews + Weekly Metals Wrap

FOOD RIOTS, CURRENCY DEBASEMENT & MORE - Art Cashin: Dir. of Floor Ops. UBS Financial Services & CNBC Market Commentator - Art’s been on Wall Street for over 40 years, he offers valuable insight to both investors and traders. When he started in the industry, the Dow Jones Industrial Average was actually in the 700-800 range. He shares his analysis and gives the pulse of the market from the floor of the New York Stock Exchange. Art is one of the most respected people in the world regarding analysis of the...

GOLD, SILVER, EUROPE & HYPERINFLATION - Ben Davies
: CEO & Co-Founder of Hinde Capital - Rising star Ben Davies gives an excellent interview on the recent troubles in Europe and gives KWN listeners a sneak peak of what he expects for gold going forward. Ben also discusses his upcoming piece in more detail. Davies ran trading for RBS Greenwich Capital in London where he managed a macro portfolio. Ben Davies and Mark Mahaffey, former colleagues from RBS Greenwich Capital, established Hinde Capital in early 2007, primarily to focus on the precious metals and the commodity sector.

The KWN Weekly Metals Wrap
- We have added new segments to the KWN Weekly Metals Wrap covering gold, silver, trading and a plethora of other factors affecting the precious metals markets. I am giving King World News listeners globally access to what has long been my secret weapons in researching where gold and silver are headed directionally along with the COT Report. We Cover the Commitment of Traders Report in detail as well as a number of other factors which can influence the gold and silver market price action

Thursday, January 13, 2011

Harvey Organ's Daily Report - Gold raid temporarily rebuffed, silver falls slightly..then huge raid in the access market -

Gold raid temporarily rebuffed, silver falls slightly..then huge raid in the access market.

Good evening Ladies and Gentlemen:

When Dennis Gartman opens his mouth and states that he is selling some of his gold and/or silver positions, you know for sure that a big raid is being orchestrated by our banking crooks.

To do so, on the day of the vote for position limits and removal of exemptions by the CFTC commissioners, has to rank as total "chuztpah" (translation: nerve) by JPMorgan and friends.

Gold at closing time comex rose by $1.20 to 1,386.90. Silver, however lost 28 cents to $29.25. However after the comex closed, our heroes sold massive amounts of paper with basically no counterparty as the access market is generally thin with traders.

Thus it is very easy for our crooks to knock the price down to anything they want. Right this minute at 5:45 pm est, the price of gold is: $1374.00 and silver is below 29 dollars at $28.74. Hold on to your hats as tomorrow will be an extremely violent day pitting massive buyers like the sovereign wealth funds against the sellers, the banks. All of the selling is un-backed gold and silver. Physical metals are very tight. As you can see there is huge disconnect between paper gold and silver and the real stuff.

Let us head over to the comex trading and see what transpired today:

First gold:

The total gold comex open interest rose by 1189 contracts to 589,368 from yesterday's level of 588,179. The bankers get quite worried if the total OI rises above 600,000 contracts. The front options delivery month saw its OI rise from 50 contracts to 87.

The front delivery month of February saw its OI fall ever so slightly from 297,587 to 290,364. This alarmed our bankers to no end. They want to see more contracts roll out of February and into April. The estimated volume today was a whopper: 220,267. Tomorrow this number will be even higher. Yesterday, the confirmed volume was a huge 192,602 almost 30% higher than original estimates. The volume today indicated that the bankers were intent to keep gold below the 1400 dollar level.

And now silver:

The total silver comex open interest rose by 728 contracts from 136,331 to 137,059. The front options delivery month of January saw the OI rise from 54 to 75 contracts. The front delivery month of March saw its OI surprisingly rise from 73,563 to 74,309.

Obviously we are getting no switches in the silver arena. The estimated volume today was a rather large 63,216. The confirmed volume yesterday was a very respectable 49,584. The bankers were very alarmed at the total OI and the March OI.

CLICK HERE
to the rest of Harvey Organ's Daily Gold & Silver Report

US Mint Reports Unprecedented Buying Spree Of Physical Silver - ZeroHedge.com



US Mint Reports Unprecedented Buying Spree Of Physical Silver

Three days ago we noted that in just the first week of January, the US Mint had sold 2,221,000 ounces of silver "a number which if run-rated would be an absolutely all time monthly record," A quick glance at the tally today, shows that something very scary is going on. In the subsequent three days, the number has surged by 50% and has hit 3,407,000 ounces of silver! In just the first 12 days of the month we have already surpassed the total monthly sales of 9 separate months of 2010.

And some additional observations on what is becoming a physical buying frenzy from CoinNews.net:

An increase in 2010 Silver Proof Eagles and record-approaching 2011 Silver Bullion Eagles are the most interesting aspects in the latest US Mint sales report.

The Proof Eagle coins have seen two weekly adjustments since they sold out in late December. The latest brings them up 3,644 to 860,000, which would seem like a natural stopping point. Collectors will have to wait until the July time frame for the 2011 Silver Proof Eagles to make their appearance, according to the US Mint.

2011 bullion eagles launched on January 3, 2011. Silver Eagles already have last year’s January record in their sight. The coins have raced to 3,407,000 in less than two weeks after their latest weekly pick-up of 1,322,000. Until January 2009, the silver coins had never topped the 3 million mark during the first month of a year. Those record sales totaling 3,592,500 may get clobbered in mere days. The all-time monthly high of 4,260,000 which was just set in November could be the next victim. As a side note, the 3,407,000 sold this month includes 469,500 of the 2010-dated issues. The US Mint had buyers order one 2010 Silver Eagle for every five of the 2011′s.

Bullion one-ounce 2011 Gold Eagles are running, but not sprinting like their silver counterparts. US Mint sales has their tally at 42,500 for a weekly increase of 29,000. As a comparison, buyers ordered 85,000 in January 2009. Inventory of the 2010-dated coins also remains. There were 53,000 at the start of the year. US Mint Authorized Purchasers must order one old for every four of the new ones.

Mike Krieger presents the following disturbing observation on this trend: "In the first 12 days of January 3.4 million silver eagles have been sold. I have never seen anything like this. The amount of physical being taken off the market on this paper sell off is EXTRAORDINARY. We must be VERY close to the end." Whoever has adopted JPM's legacy paper silver short position is in for some very troubling days ahead.

Paper Silver Gets Slammed

Catherine Austin Fitts on Gold, Silver and the Crash JP Morgan Idea

Catherine Austin Fitts on Gold, Silver and the Crash JP Morgan Idea
Solari.com investment adviser Catherine Austin Fitts tells http://www.FinancialSurvivalRadio.com where she thinks gold and silver is headed in 2011, and whether it's really possible to "Crash JP Morgan" by purchasing physical silver. That was a great interview with Ms. Fitts. I think that even if we can't crash JP Morgan, people should be holding physical gold and silver. Even the lame stream media is talking about inflation now.

http://www.youtube.com/watch?v=sHQADaJPwBs
Catherine Austin Fitts: We're Living In A Tapeworm Economy While Watching Tapeworm Media
http://www.youtube.com/watch?v=WRD6zTgy6J4
Catherine Austin Fitts: Are We Headed Toward Another Great Depression?
http://www.youtube.com/watch?v=IcgZBwdz51c

Quote of the Day



"Gold is the money of kings, silver is the money of gentlemen, barter is the money of peasants – but debt is the money of slaves." –Norm Franz, Money and Wealth in the New Millenium via Jim Sinclair's http://www.jsmineset.com

Silver: From $30/oz to over $500 by 2020 By: Jason Hommel, Silver Stock Report

http://news.silverseek.com/GoldIsMoney/1294902060.php

(And from $500 to $5000 by 2030!)

Silver: From $30/oz. to over $500 by 2020. In under a minute, I can tell you why that price must happen, and likely when. It seems to me that the public will one day wake up and start buying silver to protect from inflation. Thus, long before, say 10-20% of people buy silver, at least 1% of the American public will buy silver. We can calculate what might happen to the silver price when that happens.

The amount of money in US Banks is about $18 trillion. 1% of that is $180 billion.

Very little silver is left; it's mostly all been consumed, so most of what is available to buy is the annual new mine supply which is 700 million ounces.

$180 billion is $180,000 million. Divide that by 700 million, and we get an implied price of $257 per ounce. Do the math yourself. I'll wait.

But that price would mean that there is no newly mined silver left over for any industrial use, and that nobody else outside of the USA could buy any of the world's newly mined silver. Clearly that can't happen; those two groups would continue to buy silver, competing to buy, and driving up the price even more.

Thus, silver is very likely to be about $500/oz., by about the time that 1% of the American public wakes up and starts to buy silver. That will be the very beginning of the bull market in silver, when measured by "popular demand" -- and at that price, silver would still be very unpopular.

Just remember these key facts, and don't let anyone, or even yourself, trick you out of this developing bull market in silver. Don't try to time the peaks, don't wait for dips, just buy and hold real silver, not any kind of paper silver promise.

What kind of annual gains will that be? Let's see, if silver goes from $30 to $500 in ten years, the compound interest rate calculator tells us that will be an average annual gain of 32.49%, which is about the same as what silver has done in the last seven years, from $4.15 to $30, which is a gain of about 32.66% per year, on average.

Oh, by the way, the 1980 high for silver was $50/oz. That was when M3, money in the banks, was about $1.8 trillion. Today, the monetary base has increased about ten times higher. Thus, the true inflation adjusted peak for silver would be $500/oz. That just further confirms this $500 estimate.

But there are many reasons why silver should surpass the former highs.

Key reasons to surpass the former 1980's peak:

1. Silver is more scarce due to 30 more years of industrial consumption.
2. Paper silver scams are more abundant.
3. Baby Boomers will be retiring, cashing out stocks and draining pension plans that have not yet invested into silver, causing other investments to vastly under perform silver, making silver ever more attractive.
4. More trend investors today will notice the silver bull market and continued gains in the silver price, and invest in it, and carry it to further highs.
5. The US government and political leaders are spending like never before, and the people, even the world over, lack the political will to control government spending which will ruin all currencies.
6. There are no "safe" currencies to run to, leaving gold and silver as the only alternatives; and gold and silver have been in bull markets in all major currencies for 10 years now.

I'm sure you can think of many other reasons, but that's enough for now.

So, the true skeptic may ask, "Yes, but this guy is a coin dealer, he's just pushing his product because he has plenty of silver he wants to dump. Besides, what kind of argument will he come up with to sell silver after it hits $500/oz.?"

Let me answer this two part question. Yes, I do have silver! I have it, because I believe that the price will go up a lot, thus, it makes perfect sense for me to carry it as inventory. I sell it, because few people are able to buy it in bulk like we can, so I use my own stash, and industry connections, to enable others to buy it.

But what will I say after silver hits $500/oz., or nears that price?

I'll say, "Obviously this bull market in silver is just getting started. Only 1% of American public money is buying silver per year. Just wait until at least 10% of US money is buying silver in a year, the price will be well over $2500 to $5000 per oz. for silver."

But I would never make that argument now. Too few people would believe me, and they would think I'm some kind of kook. And people never do business with kooks.

And what will I say when silver nears $2000/oz.?

I'll say, "Everyone knows it only costs 4 cents to print up a $100 bill, and everything returns to its intrinsic value. But used paper, particularly smelly paper, is worth even less, which is useful only for things like lining the bottom of the cages of birds, or burning in the fireplace. Thus, the price for silver will soon only be quoted in terms of gold, and certainly not quoted in terms of any kind of paper money at all." But again, I'd never say that today, everyone would think I'm crazy.

Oops. Too late for me. But it's not too late for you to buy some silver!

=====

I strongly advise you to take possession of real gold and silver, at anywhere near today's prices, while you still can. The fundamentals indicate rising prices for decades to come, and a major price spike can happen at any time.

Sincerely,

Jason Hommel
www.silverstockreport.com

China Sets Stage for Vacuuming World's Silver By: Dr. Jeffrey Lewis

http://news.silverseek.com/SilverSeek/1294854272.php

China's monetary policy is increasingly a main driver of gold and silver prices because so many Chinese can now afford metal investments and are willing to snap them up.

Recently, though, China took one of the most aggressive steps to take control of the 2011 silver supply. This year, China anticipates it will allow its currency to advance some 5% against the dollar after previously allowing for only a 3.6% advance in 2010. Such a massive increase, many believe, could tip the metals scale.

Why the Currency Matters

As the Chinese newspaper that first published the report admitted, any increase in the value of the yuan is a de facto decrease in commodities prices. Thus, each 5% uptick in the Renminbi is the inverse decrease of 4.77% in actual commodity prices. In addition, if the trend continues, that would imply that ordinary investors and speculators, alongside collectors and savers, would drive rising demand – and rising prices.

Through the first three quarters of 2010, Chinese silver exports were effectively shut off, nose diving by nearly 60%, indicative of a shifting preference for hard assets. Gold exports were nulled, and in fact, the balance turned further to the side of imports, with gold imports advancing some 500% through October. That shift, many believe, is here to stay and will not stagnate, but instead see future growth as China's purchasing power rises.

Monetary Irony

The fact of the matter is simple: both the United States, and by some measures, China, are inflating their currencies to their limits. In the United States, we've seen two quantitative easing programs on top of zero interest rate policy for many years, both pre- and post-financial crisis.

In China, the excess capital derived from their massive export economy is affecting domestic inflation, but is also paving the way for a rising middle class (consumption), and possessing such an undervalued currency leaves open the ability to revalue the Renminbi without cooling their own growth.

The difference between these two countries, though, is that China can afford to both inflate its currency and yet still allow it to rise against the US dollar, giving it a very privileged entrance into the pool for commodities that hasn't been seen since the United States, in a military agreement with Saudi Arabia, cornered the market for oil.

Mainstream Getting Behind the Movement

The mainstream media is increasingly bullish on commodities, particularly monetary metals, in an absolute reversal from their 2009-2010 headlines and hit pieces.

While some in the media are still pointing the finger towards a bubble, there really isn't much bubble to be found. Even without hyperinflation or vast changes in currency values, there will be, in the next many years to come, billions of people lifted from poverty to wealth and productivity.

What happens when these people, many of whom have experienced (relative) conditions much like the United States' “Greatest Generation,” decides to invest? They're going to seek safe haven investments, and there is no better safe haven than the limited stores of precious metals.

Dr. Jeffrey Lewis

www.silver-coin-investor.com

2011 GOLD MINING SHARES & STOCK MARKET - Bill Fleckenstein on King World News

http://kingworldnews.com/kingworldnews/Broadcast/Entries/2011/1/13_Bill_Fleckenstein.html
2011 GOLD MINING SHARES & STOCK MARKET - Bill Fleckenstein: President of Fleckenstein Capital - Bill also writes a popular column ‘Contrarian Chronicles’ for MSN Money as well as the daily Market Rap column for his Web site at Fleckenstein Capital. He is often quoted in both national and international media. Bill has appeared at one time or another in virtually all financial media including Bloomberg, CNBC, The New York Times, MSN, Marketwatch, Barron’s and more. Bill is a highly sought after speaker, successful author of “Greenspan’s Bubbles” and has been in the financial sector for over 25 years.

James Turk - Momentum Toward Hyperinflation is Accelerating via KWN

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/1/13_James_Turk_-_Momentum_Toward_Hyperinflation_is_Accelerating.html

With gold and silver strengthening off of the lows, King World News interviewed James Turk out of Spain. When asked about the action and gold and silver and increasing inflation Turk stated, “So what we’re seeing here is the money being printed by central banks around the world is going to useful and valuable tangible assets. These rocketing prices are a clear warning that the momentum toward hyperinflation is accelerating.”

Turk continues:

You have to look at the big picture here. You’ve got commodity prices up across the board, but let’s look more closely at what’s happening. Corn prices have nearly doubled since June, wheat and soy bean prices are up more than 50% since June. People can blame bad crops and bad weather, but the reality is there is too much money chasing the availability of food.


Which brings us to gold and silver, the CRB continuing commodity index is at a record high. What King World News readers need to understand is that there is a direct correlation between the CCI and gold and silver prices.

With the CCI poised to climb even higher because of the increasing attention paid to food prices being at record levels, you should understand this will translate into higher gold and silver prices going forward.

Remember, last Friday when I was talking about the black-box trend followers reversing their positions and feeding the pockets of the commercials, that’s the first half of the story. The second half of this story is that the black-box trend followers will reverse their positions once again and become buyers above $1,400 gold and $30 silver. When that buying comes in, that will be the momentum to drive both gold and silver to new highs.

Investors should continue to accumulate both gold and silver with their monthly buy programs.

Bullishness by gold traders has dropped to shockingly low levels at this point in the bull market. I would say that we will need to have an increase of almost 25% more bulls for this move in gold to crescendo.

In order for that to take place gold will have to put on one hell of a move to the upside. If the sentiment numbers turn out to be a proper guide, I would say the gold shorts are about to be butchered once again, much to the delight of hard money advocates around the globe.

Eric King

KingWorldNews.com

Keiser Report: Schizo-Psycho-Bermuda-flation (E112)


This week Max Keiser and co-host, Stacy Herbert, talk about the deepening crisis trapping America's poor and the trouble with maize prices in Mexico. In the second half of the show, Max talks to economist and author, Steve Keen, about the dangers of Minsky moments and neoclassical economists.

Harvey Organ's Daily Gold & Silver Report - gold and silver withstand another raid/gold and silver open interest continues to rise

http://harveyorgan.blogspot.com/2038/01/gold-and-silver-withstand-another.html
Good evening Ladies and Gentlemen:

Gold rose today despite repeated attacks by the bankers. It rose by $1.70 to 1385.70. Silver rose by 4 cents to close the comex session at $29.53.

All day today commodity prices were on fire. We saw platinum hit a yearly high of $1,801.00. Copper hit an all time high of $4.46 per pound. Palladium hit an all time high today of$ 809.00 per oz.

I would like to point out that West Texas Intermediate is trading at a six dollar discount to brent crude oil. Brent is a sour oil with more impurities and the light sweet crude of West Texas Intermediate. When you see this huge disparity, generally the entire oil sector rises in price. Brent OIl is trading at around 98.00 per barrel and WTI at 92.00 per barrel. All base metals were higher today joining copper. Even the foodstuffs were higher as soybeans and corn rose big time with a bullish report (less available product)

The only two commodities not to set the world on fire was gold and silver. Today , our buffoon Dennis Gartman indicated that he was now out of his gold holdings denominated in pounds. This gentlemen is a well informed and I guess the bankers told him that there is going to be a serious raid today or tomorrow. Actually, I am quite happy that he is out as this gentleman literally has made zero dollars on his gold and silver holdings for the past 12 years. And he gets invited back on CNBC to tell his version on the action of the precious metals. The bankers tell him that there is going to be a raid as his selling accentuates the raid. That is why he is usually right on the sell side. They never tell him when they are going to buy back their shorts. The bankers do not need Gartman competing with them on the buy side. Gartman generally stays on the sidelines and thus has never participated on the huge rise in gold and silver.

Let us go straight to the comex trading:

First gold:

The total gold comex open interest rose by a very healthy 3190 basis yesterday as gold withstood a huge raid. The front options delivery month of January saw its open interest fall slightly from 54 to 50. Yesterday saw 9 deliveries so most of the loss was due to options holders taking possession of a gold contract. The front delivery month of February saw its open interest fall ever so slightly from 306,173 to 297,587. The bankers would have preferred to see a greater fall in the front month as this is the month that they must be watchful over. The estimated volume on the comex today was a very healthy 176,378 and the confirmed volume yesterday was also extremely good at 189,064.

Now for silver;

The total silver comex open interest rose again by 648 contracts sending our bankers into a tizzy. The front options delivery month of January saw its OI drop from 56 to 54 for a drop of 2 contracts. We had 3 delivery notices yesterday so the bulk of the fall in OI was due to deliveries. The front delivery month of March was its OI surprisingly remain resolute at 73,563 (yesterday 73,330). The estimated volume today on the silver comex was 46,182 whereas the confirmed volume yesterday turned out to be 56,135..quite a robust number.

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Wednesday, January 12, 2011

1-12-11 Silver's Spot Price

ZeroHedge - India Gold Imports Hit Record As "Price Is No Longer A Factor"



India Gold Imports Hit Record As "Price Is No Longer A Factor"


All those who continue ridiculing gold, saying it has no utility, tend to forget one thing: it just happens to be the ultimate status symbol (especially for the nouveau riche). And who these days wants to demonstrate status (and has a lot of nouveau richness)? Why, the 2+ billion consumers who are benefiting from the biggest growth story in the world, i.e., China and India. According to the World Gold Council, gold demand in India in the last year reached a record. Per Bloomberg: "Purchases were about 800 metric tons, compared with 557 tons in 2009, Ajay Mitra, managing director for India and the Middle East at the producer-funded group, said today in a phone interview from Dubai." But how is that possible? After all gold prices surged in 2010 compared to 2009: is gold demand supposed to be inelastic? Surely you jest? Well, no: "Our assessment is demand will continue to be strong,” [Mitra] said. “Price is no longer a factor.”" Re-reading the bolded sentence a few times just may explain why PM distribution centers with actual physical inventories have suddenly become rarer than hen's teeth.

Bailouts Postponed, But Can't Prevent the "Greatest Depression," Gerald Celente Says

http://finance.yahoo.com/tech-ticker/bailouts-postponed-but-can%27t-prevent-the-%22greatest-depression%22-gerald-celente-says-535804.html

Far East Physical Gold (And Silver?) Demand Is Super Strong By Patrick A. Heller on January 11th, 2011

http://news.coinupdate.com/far-east-physical-gold-and-silver-demand-is-super-strong-0622/

Virginia Wants A Real Currency (Constitutional Money Gold & Silver)

http://lis.virginia.gov/cgi-bin/legp604.exe?111+ful+HJ557

2011 SESSION

* history | hilite | pdf | print version

11102035D
HOUSE JOINT RESOLUTION NO. 557
Offered January 12, 2011
Prefiled January 5, 2011
Establishing a joint subcommittee to study whether the Commonwealth should adopt a currency to serve as an alternative to the currency distributed by the Federal Reserve System in the event of a major breakdown of the Federal Reserve System. Report.

Tuesday, January 11, 2011

ZeroHedge Articles of Interest



Cazenove's Griffiths: "Not Owning Gold Is A Form Of Insanity And May Even Show Unhealthy Masochistic Tendencies"


Whoever said CNBC does not have good content: the biased station's European division actually has some very informed and interesting guests. Of particular note is yesterday's interview with Cazenove's technical strategist Robin Griffiths. And while the chartist tends to not be too happy with the recent stock market action (who is), the most notable item on the docket was Griffiths discussion of gold. And it was quite memorable: "I think not owning gold is a form of insanity, it may even show unhealthy masochistic tendencies, which might need medical attention. Real assets hedge paper money being printed into oblivion, so you've got to own gold and you've got to own other commodity-related investments still. Gold is far from being an overowned trade at the moment, far, far from it. Although it's been a top performer for each of the last ten years, it's still in a linear trend. Eventually it will go exponential and make more in the last little bit than the whole of the ten year trend." That pretty much covers it.


UBS Sees Silver Hitting $35 On "Physical Interest In The Metal"

It took just three months (and a 50% spike in price) for UBS to do a 180 on silver. In the firm's most recent Silver update from Dominic Schnider of Wealth Management Research, the author now says "Silver prices remain well supported and have been able to trade repeatedly above USD 30/oz." More importantly for those who are concerned that the recent all time high just north of $31 was a one time fluke, fear not: "Temporarily, prices could even hit USD 35/oz on physical interest in the metal due to firm economic activity." Bottom line: "Investors should make use of silver volatility for yield enhancement strategies At levels close to USD 25/oz, we are willing to pick up the metal." Then again, none of this should come as a surprise or even lead one to make investment decisions: after all it was just in September that the same person, in a report titled: "Price strength not on firm ground" said "We expect industrial demand to show some weakness and advise investors to avoid the metal" and concluded "We therefore prefer to be sellers at present levels and would reopen a position at or below 17.5/oz." Merely another confirmation that virtually every sellsider on Wall Street is merely a momentum riding, backward looking, chart monkey, and all those who seek original, contrarian thought are advised to stay very, very far from Wall Street "analysis."

Harvey Organ's Daily Report - Another Failed Raid In Silver & Gold

http://harveyorgan.blogspot.com/2011/01/another-failed-raid-in-silver-and-gold.html

Good evening Ladies and Gentlemen:

Gold closed up by $14.30 to close at 1:30 PM (comex closing) at $1384.00 Silver closed at $29.49 up a huge 64 cents. Today, the banking cartel has shifted a little from their normal strategy in that they start to bombard gold and silver one hour into comex trading.

Gold and silver were on fire during the evening (Japan and Middle east time zones) and the price continued on its northern trajectory even into the London time zone. It only met resistance once comex was well into its session. The raid on both silver and gold with high estimated volumes for the gold comex coming in close to 180,000 contracts. The confirmed volume will be much higher. The silver comex volume was also quite high at 53,673.

Let us go straight to the comex floor and see how things fared today:

The total gold comex open interest rose by 3,790 contracts to 584,989 which is basis Monday. The front option delivery month of January saw its open interest rise from 22 to 54 which is a mystery in itself. The most important front delivery month of February saw it's open interest decline marginally from 318,383 to 306,173 with all of the decline rolling to April. As mentioned, the estimated volume today was rather high at 179,528. The confirmed volume yesterday was also high at 158,055.

And now for silver:

The total silver comex OI fell marginally from 137,079 to 135,683 for a loss of 1396 contracts. With silver rising at the end of the day, we probably witnessed a little of the banks covering some of their shorts. The banks may be getting a little antsy on seeing the "open letter" addressed to Bylthe Masters, commander of commodities at JPMorgan. Will hedge funds begin to load up on silver contracts commencing the first of February, ready to take delivery and settling for 30% premium for cash settlement?

The front option delivery month of January saw its open interest fall from 88 to 56 for a loss of 32 contracts. The delivery notices yesterday was 32 so the entire drop in the front month was due to the delivery notices.

The estimated volume at the silver comex today as mentioned was 53,673 and the confirmed volume yesterday was 49,329. The front delivery of March saw its open interest fall a bit from 75,298 to 73,330 contracts.

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to continue reading Harvey's Daily Gold & Silver Report

Richard Russell - Gold is the Ultimate Survival Mechanism

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/1/12_Richard_Russell_-_Gold_is_the_Ultimate_Survival_Mechanism.html

With gold still consolidating gains, the Godfather of newsletter writers Richard Russell in his latest commentary stated, “The double-dip is almost here, as six cities set new lows for the period since the 2006 peaks. There is no good news in October's report." David Blitzer, managing director at S&P Case-Shiller. I've said before that as I see it, our task in the years ahead will not be building potential profits, rather it will be how to avoid losing purchasing power.”
Russell continues:

“Question -- Would you be satisfied to retain your current standard of living during the coming decade? I've thought a lot about that. After all, what are we working and struggling for? The answer is that we're working so that we can enjoy "a decent life." Isn't that what all the buying and borrowing has been about? Americans want the good life, and they've been borrowing their heads off to have it.

The question I ask myself is, "What do I have to do so that I can continue to enjoy the great American 'good life'?" What comes to mind immediately is gold and the dollar and debt. The national debt of the United States is roughly $13.9 trillion. We've carried that huge debt in an atmosphere of historically low, low interest rates. But what happens as rates rise (as they are now doing)? How will our government deal with our unmanageable mountain of debt? I'm afraid that our debts are on the way to eating us up alive.

Which is another reason to own gold. When all else is lost, or maybe I should say lost in depreciated dollars, gold will be there as it has been for over 5,000 years. Gold is the ultimate survival mechanism.

We can't pay off our national debt with higher taxes. To do that would throw the nation into a second Great Depression. The only way we can deal with the debt is through a severely devalued dollar. I can't think of any other way -- but wait, there is one. That other way is to ignore the debt, kick the can down the road. Let other presidents and other Congresses wrestle with it. Of course, I doubt if we could get away with kicking the debt down the road.. I'm not even going to talk about defaulting on our debt. That would be unthinkable, and would put the US firmly in the banana republic class. In that case, the new best-seller would be a book titled, "The US, Death of a Nation."

So far, the US has been borrowing to finance our good life and our debts. We borrow from other nations, we borrow from Social Security, we borrow from whom ever will lend us money. To make our obsessive borrowing more attractive, we will have to raise rates. And that's when the trouble begins.”

I hope King World News readers and listeners understand how important it is what Russell was saying at the end there about rising rates. The United States has such a massive debt load that we simply could not service the debt were there to be significantly higher interest rates. Make sure to protect yourself by owning physical gold.

To subscribe to Richard Russell’s Dow Theory Letters CLICK HERE.


Eric King

KingWorldNews.com