Submitted by SRSrocco:

I apologize for not posting much lately, but I have been busy with other coals in the fire.  Anyhow, I still keep reading articles and blog posts and I am quite surprised at the current bearish sentiment of gold and silver.

When gold and silver sold off after the FOMC minutes (stating that they may stop buying Treasuries in 2013)… I just laughed.  Then I watched as the precious metal bugs started to get extremely nervous… thinking that the BOTTOM COULD FALL OUT.

I am so glad that I have a good understanding of the GLOBAL ENERGY MARKETS & SITUATION as it allows me to steer through all the B.S on CNBC, MSM and etc.  Things are far worse in the energy markets than the typical PUBLIC GADFLY realizes… much worse.

imagesIt appears that our bankster friends at the Bank of America have decided to use the Obama Administration’s attack on the 2nd amendment as justification for the bank to confiscate funds of their clients in the guns and ammunition industry.  

American Spirit Arms owner Joe Sirochman has revealed that his business’ assets have been confiscated by Bank of America, and a Bank of America exec gave Mr. Sirochman an explanation for the theft ofWE BELIEVE YOU SHOULD NOT BE SELLING GUNS and PARTS ON THE INTERNET.

Sirochman’s full letter below:

sprottOur friend Eric Sprott of Sprott Asset Management was interviewed by TrimTab’s Charles Biderman over the weekend.  Biderman, who previously has recommended investors purchase GLD and SLV for gold and silver exposure, receives an education on paper vs. physical by Sprott.

Sprott informs Biderman on Doc’s rule of If You Don’t Hold It, You Don’t Own It!, stating:  Always have access to your physical!

Sprott’s full interview below:

Image: Jonny O'Callaghan

Image: Jonny O’Callaghan

Equity Management Academy’s Steve Roy has released his silver forecast for 2013.  While many precious investors are panicking and throwing in the towel in the aftermath of the month long capping in gold and silver after QE4, Roy is predicting a massive year for silver in 2013.

Roy states that silver completed the 4th wave of it’s correction and placed a bottom in June 2012 and that silver’s next up wave will take the metal to $91 in 2013:

This cycle terminated in July of 2012, and the low was in June.  Note that the 1.618 extension of the Wave 3 move is $91.98; eerily close to the $91.49 price that we got earlier from the monthly chart.
This indicates to me that the rally from the low in June, and subsequent completion of the ABC correction of that wave sets us up for the next impulse wave higher.  Based on my analysis, I think silver will go above $90.00 in 2013, on its way to much higher prices later on.”

Roy’s full analysis below:

cftcThe CFTC has announced that live reporting of Swap transactions and swap dealer registration began on December 31st 2012.
Our banker friends had lobbied extensively to delay or cancel the implementation of these requirements of the Frank/Dodd legislation, whining that they would be too costly to enact.  In reality, the cockroaches did not wish to have the light of day shining in the corner where they congregate.

Jamie & Lloyd cannot be pleased.  Wasn’t lobbying the regulatory agencies part of Blythe’s new job description?

binford xlMoney manager Peter Schiff warns that Japan will likely stop buying U.S. government debt. He contends, “If the Central Bank of Japan has a choice between monetizing Japanese debt or U.S. debt, they’ll go for their own debt . . . that means the Fed has to print even more money.” Closer to home, the new debt deal also means more money printing because of even bigger deficits. According to Schiff, “The majority of the tax increases were cancelled. The spending cuts were cancelled . . . the Fed is going to have to keep buying bonds to keep interest rates from surging.” Schiff thinks talk from the Fed about stopping the $85 billion a month money printing (QE) is preposterous. Schiff says, “They can’t do it. . . . The minute they try to take the cheap money away, the phony economy is going to crumble.What’s not going to crumble is the gold and silver market. Even though precious metals have been down recently, Schiff says, “So what, buy more. Look at the sell off as an opportunity to unload more of your fiat currency and get some real money.” Join Greg Hunter as he goes One-on-One with Peter Schiff.

SilverCOTSubmitted by Marshall Swing:

Gold & Silver COT Report 1/4/13:

The commercials decreased their shorts by 6,860,000 ounces in the week ending 1/1/13 into the silver price raid, and they increased their longs for the 4th week in a row.   The commercials remain a net 226,680,000 net short in silver.

Dr. Constantin Gurdgiev has analysed the data of US Mint coin sales in December 2012 and has looked at them in their important historical context going back to 1986. He is one of the few academics in the world to have researched and written academic papers about gold.

We believe that the fall in demand is due to renewed complacency regarding the global debt crisis. It is also likely due to the fact that traditional buyers of gold coins and bars have secured their allocation to store of wealth gold bullion in recent years. It may also be because there are only a few new retail buyers coming into the bullion market in western countries – unlike in Asian countries and particularly China.

U.S. Mint data does not support the view of a dramatic, reckless,  greedy buying of gold by the fabled speculatively crazed retail buyer or the fabled ‘gold rush’ that some headline writers and media commentators have claimed is taking place.
Three consecutive years of falling demand for gold coins and the lowest demand for U.S. gold coins since 2007 shows how  those still calling gold a bubble, for very simplistic reasons, remain ill informed.

Bubbles are of course characterised by mass participation by the public and surging demand to record levels.

obamaAccording to Congress.gov, on Friday NY Congressman Jose Serrano introduced HJ Res 15, which proposes an amendment to the Constitution to repeal term limits for the office of President of the United States.
While such an amendment is highly unlikely to successfully pass the Republican House, the US is slipping closer to full-fledged banana republic status by the day. 

bernankeSubmitted by Deepcaster:

The five year chart of the CRB Index (a Broad Measure of Commodities Prices) shows three descending tops, which is suggestive of Deflation. But to conclude that Deflation is likely to be The Ruling Force in the Economy in 2013 would be a Dangerous Error.

Indeed, it is critically important for Investors to understand whether or not we are in an Inflation or Deflation, or both (we later explain how this is possible). Failure to understand The Reality about Deflation and Inflation is likely lead to poor or even lethal Investment decisions.

Here we explain The Inflation/Deflation Reality and indicate how to Profit.
In 2013, we will continue to see inflation in terms of the US dollar currency, and deflation in terms of gold.

Submitted by Morris Hubbartt:

Note how oversold gold is, compared to the euro.  A strong buy signal for gold is now in play, and the last time one like this occurred, gold doubled in price, over the next three years.    I don’t want to be predicting pies in the sky, but any rational investor can see that buying some gold here against the euro is a reasonable course of action!

Silver is one of my favorite assets to purchase on weakness, for long term capital gains. Today’s prices offer a great opportunity to do that, but remember that silver is far more volatile than gold.  Note how drastically oversold RSI and the slow Stokes are.  These powerful indicators suggest that investors who endure the pain caused by the FOMC minutes, could soon be greatly rewarded!

Zeal010413BSubmitted by Adam Hamilton:

The US Mint’s bullion coins are called American Eagles. The “bullion” distinction means their value is based solely on the spot prices of gold and silver, with no special premium for rarity. So they offer investors far more physical metal per dollar spent than expensive collectible coins. I’ve always believed maximizing one’s total gold and silver holdings is far more prudent than playing the scarcity game.

The US Mint’s production is based on real-world demand from coin dealers. When these guys have enough inventory from existing investors selling, they don’t need to order new Eagles from the Mint. So the Mint ramping up production is always a response to rising coin-dealer demand, which is in turn the result of rising investor demand for physical gold and silver. Thus the Mint’s sales data is valuable.

It is made available on a monthly basis for both gold and silver Eagles. The charts in this essay superimpose these coin sales over the daily gold and silver price action over the course of their entire secular bulls. Despite the perception of 2012 being a weak year for the precious metals, new physical demand from investors for American Eagles is actually robust to strong. This is certainly a bullish omen.

lucySD reader Cleburne writes:

Hey Doc, I just wanted to share a few thoughts with you, to see if you’ve felt the same things I’ve been feeling.  I guess it’s brought about by the dual Federal Judge dropping the JPM lawsuit (expected, but not one bit less tragic and disappointing despite, is this what Chilton had been waiting on, before declaring the same thing?)…and the fact that despite GATA, Bill Murphy’s promises of CFTC litigation, Turd’s promises of “hot, explosive, historic” action”, Sprott’s removal of another 17 MILLION oz within 4 months, QE3, and QE4…..
 
Here we languish at $30.  No matter how astronomically wonderful the fundos AND the technical chart look…..all JPM has to do (and do it they have) is pour on another 100 or 200 million ounces of shorts.  That’s all it takes to apparently stop silver prices for the entire world…

The legendary Jim Sinclair has sent another email alert to subscribers regarding the take-down in the gold and silver markets Thursday on the release of the December Fed minutes.
Sinclair states that contrary to the Fed’s MOPE attempting to convince the market that QE will be phased out in 2013 as the economy recovers, There is no practical way that QE can cease here or in Euroland without a total and final collapse of the financial system.

Sinclair points out that the entire derivatives market hinges on the Fed’s unceasing QE, as the moment QE ceases, the US bond market collapses and the Fed must debt monetize all required debt, which means if QE stops, it starts up again immediately and in a crisis mode.

Sinclair states that QE cannot stop or the world as we know it instantly ends, and that the implications to what the Fed has done cannot be talked or manipulated away.  The consequences are coming.

Full alert below: