Western nations are laying a media campaign and military logistics for a potential attack against Syria.  As the drumbeat of war sounds, collective critical thinking is most vulnerable.
Images of chemical weapons victims are abhorrent.  But consider this:  Even if we are to believe the West’s claim that Bashar al-Assad’s government is behind the chemical weapons attack, there can be no denying that the insurgent al-Qaeda “rebel” forces that started a campaign of destabilization of Syria are backed by the United States, Saudi Arabia and other Western powers.  Never mind congestive dissonance.  Most Americans are completely oblivious to this fact.
In order to sift through the fog of war, it’s important to consider multiple perspectives.  Recently, the Russian newspaper Izvestia published an interview with Syrian President Bashar al-Assad.  It was translated into multiple languages.  Given that use of chemical weapons is the purported “Casus belli” for Western intervention, it’s worthwhile examining al-Assad’s response to this specific accusation.
Click here for more on al-Assad’s response to allegations the Syrian gov’t used chemical weapons on its own people:

France, Russia and Turkey were among 15 central banks who added gold to their foreign exchange reserves in July, IMF data showed today.
Russia expanded their gold reserves for a 10th straight month in July. Russian holdings, the seventh-largest by country, gained another 6.3 metric tons to 1,002.8 tons.
Kazakhstan’s reserves also rose for a 10th straight month to 1.1 tons to about 132 tonnes. Azerbaijan added 2.009 tonnes to bring its holdings to 10.023 tonnes in July.
Turkey lifted its gold holdings by 22.5 tonnes, the biggest increase seen among 15 central banks. Turkey now has the world’s 11th-largest gold reserves as its holdings rose to 464 tonnes in July from 441.5 tonnes in June. The country’s central bank last year allowed commercial banks to hold a portion of their lira reserves in gold.
France bought 1,000 troy ounces of gold. The Bank of France has made a few such purchases in recent months.
Technical analysts say that gold’s break above $1,400 an ounce on Monday for the first time since June 7, in conjunction with its break above the 100 day moving average and a bullish “cup and handle” chart pattern, suggest more gains are in store for gold which may have bottomed out two months ago on June 28.

nuclear-bomb-KoreaTRUTH Journalist Greg Hunter from USAWatchdog joins the SGTReport to talk about everything from the Nasdaq ‘Glitch” to the lies of CFR-member mainstream mockingbirds to currency wars to the propaganda designed to take us into yet another war, this time in Syria – and potentially right into WW3.

The Obama administration seems absolutely determined to help radical Islamic jihadists that have beheaded Christians, that have massacred entire Christian villages, and that have pledged loyalty to al-Qaeda topple the Assad regime and take over Syria.  Yes, the Assad regime is horrible, but if these jihadist lunatics take control it will destabilize the entire region, make the prospect of a major regional war much more probable, and plunge the entire nation of Syria into a complete and utter nightmare.  It has been estimated that somewhere around 100,000 people have already been killed in the civil war in Syria, and now it looks like the U.S. military and the rest of NATO plan to become directly involved in the conflict.  The Obama administration is actually considering an attack on Syria even though the American people are overwhelmingly against it, Obama does not have Congressional approval to start a war, and he will never get approval for military action from the UN because it will be blocked by Russia.  This is setting up to become a colossal foreign policy disaster for the United States.

I had the chance this week to reconnect with Vishal Vyas, head of operations at India’s top bullion dealer, Pushpak Bullions Pvt. Ltd.
It was a powerful conversation, as Vishal indicated that the Indian Government and Central Bank is stepping up its fight against gold, with punitive taxation and trade controls. As a result he added, gold is now trading at elevated levels of $1800 oz. within the country. Despite these changes however, Indian families are still buying gold insmall quantities every month”.

silverInvariably, as the price of silver and gold begins moving higher, more investors will be drawn in to the mostly paper precious metals market.
Most of these buyers will be looking only at the price and could therefore be setting themselves up for a substantial disappointment. Many will simply take their losses and exit the market feeling scorned, perhaps never to return.
Those who see few alternatives, or who perhaps actually take delivery of physical metal will be faced with a steep learning curve that will hopefully be overcome by necessity at the least, and curiosity at best.
All long term precious metal investors will probably at some point end up asking themselves the following questions about the precious metals market.

Penasquito Revenue vs EarningsOne of the largest by-product silver mines in the world recorded a loss during the second quarter of 2013.  This primary gold mine located in Mexico, produced nearly 24 million ounces of by-product silver in 2012.  If we compare this mine to the top primary silver mines in the world, it ranks as the third largest.
If the price of gold or silver fell to the levels that some of the more bearish analysts have forecast, it would mean the ENTIRE WORLD’S GOLD & SILVER PRIMARY MINING INDUSTRY would be losing serious money.

What started out as a quiet and sideways week in the metals and miners, finished off explosively!
Technical gold trader Gary Savage noted in weekend commentary that Friday’s explosive finish in gold confirms yet another trading cycle, which may assault the 200 day moving average at $1500 oz. within the next two weeksHe further added that as a result of the strength of this close, he also expects a 10%-15% move in the miners this week!
We are witnessing A Historic Moment (and launchpad) For The Metals & Miners!

There is increasing evidence that another Financial and Economic Meltdown is coming and that it will be worse than the one in 2008-2009. And even respected Financial Establishment Figures like John Hussman are beginning to go public with their concerns.
Indeed, perhaps The Main Indicator – The Greatest Bubble Asset – that a Great Meltdown is coming is already signaling it is launching.

obama gun controlAs the below document reveals, the United Nations Office for Disarmament Affairs (UNODA) has convened a Disarmament Commission- tasked with solving the dilemma standing in the way of the global implementation of Agenda 21- namely the estimated 500 million weapons currently in the hands of American civilians.

We have identified several problems that must be addressed.  They are:
1. Classification of military grade weapons to be made illegal for possession
2. Creation of programs to provide reasonable compensation for voluntary surrender of said arms
3. Codification of laws to begin the restricting and strict licensing of concealable firearms4. Codification of laws to begin the restricting and strict licensing of hunting grade firearms
5. Codification of laws to restrict the sale of, and possession ammunition and components to manufacture ammunition
6. Finally, codification of laws to completely make any and all firearms illegal to own, possess, or use outside of military and law enforcement usage
7. Creation of a United Nations Police Taskforce with the specific mission of assisting member nations with the collection of weaponry from civilian hands

The UNODA’s full release is below:

This week saw a very important upward price breakout, reversing several key moving averages for the precious metals. This week’s recap also includes detailed discussion of the importance of key inventory supply indicators and negative GOFO rates.
Negative GOFO rates are all about an all-time-low LIBOR, combined with a mildly increasing Gold Lease Rate.  A GLR over 0.40% is nothing historic; therefore the “historic” negative GOFO rates are all about LIBOR’s historic lows along with some mild moves in the GLR.  I’m not saying a supply shortage does not exist.  All I’m saying is, negative GOFO rates aren’t “smoking gun” evidence of this with LIBOR at 0.39%.
Half the GOFO story is about historically low LIBOR rates, and the other half is about an increase in the Gold Lease Rate.  The next question is, what made the GLR rise? 

Perhaps its an impending default at the LBMA?

Play

On this week’s Metals & Markets The Doc & Eric Dubin discuss:

  • A break from the traditional Friday cartel bashing as gold and silver blasted higher through $1400 $24, and closed at $1398 and $24.08 respectively!
  • Triggering Friday’s precious metals rally, a weaker than expected July home sales report, coming in at 394k vs consensus of 486k, and a 13.4% decline over June- the steepest monthly drop in 3 years!
  • Silver options expiration Aug. 27:  Expect cartel to desperately attempt to defend $25.50 and then, $26.  Look for a pause and short correction in silver prior to a massive assault on $30!
  • The Doc’s report on physical market trends for the US bullion market
  • War:  When all else fails, it’s the “go to” solutionWhy would President Assad gas his own people when he knows the US has declared the use of chemical weapons as a “red line” that if crossed would likely mean escalation/intervention?   Russia may very well be correct in accusing the US backed rebels as being behind a false flag. 

 We dive in to these topics and much more in this week’s SD Weekly Metals & Markets!

falling-bearThe US stock markets have enjoyed a dazzling year, levitating to a long series of new record highs.  But this relentless advance has stalled in August, with selling pressure mounting.  Even most of the bulls readily agree that a material selloff is overdue after such a mighty run. 
But actually the odds are high this necessary retreat will extend well beyond normal pullbacks or even corrections into a new cyclical bear.

bank panicLegendary gold trader Jim Sinclair sent out an email alert this weekend advising readers that the current rally in gold and silver is the long awaited BIG ONE, that $50 silver is a given here, stating that the current move: This gold bull price phase is the one long predicted here that will return the most money to the fewest in the shortest period of time.

Sinclair states that as long anticipated, the bullion banksters have flipped and have clearly begun manipulating gold and silver to the bullish side, as the most massive move of the entire bull market lies directly ahead.
Sinclair’s full MUST READ alert is below:

5000 goldThe financial crisis has been a fixture since 2008 when Lehman failed.  The crisis became acute when QE began, and later the hyper monetary inflation was clear as permanent  In the last several months, the perma-crisis elevated in danger level, from a skein of high risk critical extreme events.
The Gold price will rise dramatically in the future from numerous powerful forces and factors.
The following factors are directly relevant as to why the Gold Price will rise to $5000 per ounce, then higher.   At the same time, the Silver price will rise multiples higher. The gains for Silver will most likely be a greater multiple than seen on the Gold price rise. The shortage for Silver is astounding and obvious to analysts and experts, except those who work for banks. The shortage for Gold is more subtle, as thousands of tons have been leased illicitly. Therefore the accounting is replete with double counting and outright missing accounts in false reporting.
The following are 13 fundamental and locked-in-stone reasons why gold will first hit, and then surpass $5,000/oz.