COMEXIn contrast to almost every other gold analyst, I do not believe that physical gold markets will overwhelm paper gold marketsThe price-setting mechanism will remain with paper gold markets, but it will be overwhelmingly bigger Asian paper gold markets that set the price.  Not the comex!  The comex is akin to a rotary phone, in a world of iPhones.  The comex won’t blow up, but it will become irrelevant.

silverGold and silver have just made vertical moves to the upside on the news the BLS’ Producer Price Index was up 0.5% in May on expectations of 0.1%, and a massive jump from -0.7% in April.
If the first 30 minutes of trading are any indication, we may see something today that is becoming a rather rare occurrence: gold and silver closing up on a Friday.

The past two years have not been kind to holders of the precious metals. The price of gold is down over $500/oz since the record high (nominal) price it hit in August of 2011. That’s a decline of 28%.   Silver has seen a decline of 56% over the same period.
There’s no way to sugarcoat the dismal performance of the precious metals in recent months. But a revisitation of the reasons for owning them reveals no cracks in the underlying thesis for doing so.
In fact, there are a number of new compelling developments arguing that the long heartbreak for gold and silver holders will soon be over.
Trying times like these are designed to wear you down and force weaker hands to capitulate before reversing.
We remain steadfast in our conviction that the precious metals investment thesis remains healthily intact, and that the real price action in the gold and silver story has yet to be seen.  We see increasing evidence indicating that the next big upward reversal is near at hand.

mali goldGold is not only the wealth preserver but it is the ACE in the sleeve, the trump card against the forces of Fiat currencies and the Central Banking Concept. The nation that possesses the most will be the one left standing when the dust of the once mighty Anglo-American Banking System finally crashes into the dustbin of history.
Over the last decade China has set up various Sovereign Wealth Funds through which they are purchasing vast stores of PM from the Bullion Banks themselves. The Main monster in this den of Dragons is the Sovereign Wealth Fund CIC ( China Investment Corp) an almost half a trillion dollar monster whose sole purpose was to consume worthless US dollars, and use them to buy valuable assets.

This past week we have heard that Swiss gold refiners’ delays have reached 5 weeks. It seems that the Chinese are heading the train off at the pass and purchasing Gold Ingots at point of manufacture paying more than what a refiner would pay.
Once again adding a quiver to the long list of strategic metals and rare earth mineral mines, China is cornering the market on Gold.

Former Department of Justice prosecutor Larry Klayman has filed a $3 billion class-action lawsuit in US District Court for the District of Columbia against President Obama, Eric Holder, Director of the NSA Keith Alexander, the CEO of Verizon, the NSA, Verizon Communications, the Department of Justice, and the judge of the US Foreign Intelligence Surveillance Court Robert Vinson who rubber-stamped the illegal NSA spying program for violating Plaintiffs’ constitutional rights, Plaintiffs’ reasonable expectation of privacy, free speech and association, right to be free of unreasonable searches and seizures, and due process rights.

The suit specifically alleges the defendants violated the 1st, 4th, and 5th amendments of the US Constitution, and is an outrageous breach of privacy, freedom of speech, freedom of association, and the due process rights of American citizens.

Any Verizon Communications customer is welcome to join the $3 billion class action suit.
Klayman’s full suit is below:

BeckGlenn Beck announced this evening that within the next 24 hours he will be revealing a new whistle-blower whose testimony is so shocking that Beck states It will take down the GOP, it will take down the Democrats, it will take down many members of Congress…pretty much the whole power structure.
This country is going to be rocked in the next 24 hours with some things that have been going on in Washington.  You are going to witness things in American history that have never been witnessed before. 

USMintThe recent price slump spurred demand for physical metal, with the U.S. Mint predicting last week that its gold and silver coin sales may reach a record in 2013.
The Austrian Mint sold about 2 million ounces of silver in April, compared with 8.8 million for all of 2012.
The U.S. Mint has sold 1,628,000 ounces of silver coins so far in June, according to figures on the Mint’s website. At that pace, total sales for the month would be 4,651,429 ounces, up 62.8% from a year earlier:

NSA PRISMGate whistle-blower Edward Snowden isn’t finished yet, as the former CIA operative has made explosive new claims against the global US police state Thursday, revealing evidence to the South China Morning Post in an exclusive interview Thursday that the US government has been hacking Hong Kong and Chinese computer networks since 2009.


You want to know why revolutions happen? Because little by little by little things get worse and worse. But this thing that is happening now is big. This is the key ingredient. This allows them to know everything they need to know to accomplish the above. The fact that they are doing it is proof that they are the sort of people who might use it in the way I described. In the country I live in, they also claimed it was for the safety of the people. Same in Soviet Russia. Same in East Germany. In fact, that is always the excuse that is used to surveil everyone. But it has never ONCE proven to be the reality.
Maybe Obama won’t do it. Maybe the next guy won’t, or the one after him.  Maybe this story isn’t about you. Maybe it happens 10 or 20 years from now, when a big war is happening, or after another big attack. Maybe it’s about your daughter or your son. We just don’t know yet.  But what we do know is that right now, in this moment we have a choice. Are we okay with this, or not? Do we want this power to exist, or not?

Jim Sinclair sent an email alert to subscribers Tuesday night advising that soon the bankster sharks will be eating the big shark (the Fed) and that gold will become the friend of the manipulators and the enemy of the US dollar.
Sinclair states that the banksters sense political weakness and loss of control amongst their masters at the fed, and what is soon coming is outright war called finance.

Sinclair’s full alert is below:

gold rushLots of people are comparing today’s gold market to the 1970’s.  Gold shot up to nearly $200 per ounce and crashed 9 months later to near $100 an ounce.  Of course, gold had an historic rise to $85 per ounce after that wicked pull-back.  Some, such as economist Nouriel Roubini, say “the gold rush is over,” and the seventies are not going to repeat.  The debt of today is greater by orders of magnitude from the 1970’s, and there is no end in sight.  That means gold has only one way to go (in the long term) and that’s up.  
We had a national debt of less than $1 trillion when Jimmy Carter left office.  Today, it is nearly $17 trillion, and the so-called debt ceiling is going to need to be raised–again.  Debt in the U.S government is exploding.  So is debt in the rest of the Western World, just look at Europe and Japan.
Derivatives were virtually nonexistent back the 1970’s.  Today, the official total of these debt bets is around $700 trillion, and some say it’s more than twice that much.  Pensions didn’t have funding problems back then.  Today, they are at least $1 trillion dollars in the red.  You can say the same thing for student debt—also $1 trillion in the hole.

The rest of the world has found out that the U.S. government has been listening to their phone calls and watching what they do on the Internet and they do not like it one bit.  Outrage has been pouring in from all over the planet, and one member of the European Parliament is even comparing the NSA to the Stasi.  But instead of stepping back and reevaluating our Big Brother spying methods now that they have been revealed, Barack Obama and other leading members of Congress are defiantly declaring that there is nothing wrong with these methods and that no changes will be made.  The U.S. government is going to continue to invade the privacy of the citizens of the rest of the world as much as it possibly can, and our leaders don’t seem to really care what the international response is.  And make no mistake – the goal of the U.S. intelligence community is to literally know everything about everyone. 

Silver prices peaked in April 2011 and dropped about 60% over the next 25 months. Sentiment by almost any measure is currently terrible. Few are interested in silver; most have lost money (on paper) if they bought in the last two and one half years, and the emotional pain seems considerable. It reminds me of the years after the NASDAQ crash in 2000.
So will silver drop under $15 or rally back above $50?

When we stated yesterday that the police state was in for a LONG evening last night as massive riots in Istanbul continued far into the evening, we had no idea that Turkish militarized police forces were about to engage in an act that would immediately polarize the entire nation against the Turkish government with the potential to unite the people into a civil war.
The militarized police did just that however as the video footage below shows, as Turkish cops unleashed not one, but 2 water cannons on a wheelchair protestor simply waving a flag
Footage of the cops turning their water cannon on the wheelchair protestor and today’s live feed are below:

EmptyVaultJP Morgan’s Eligible (Customer) gold inventory fell a whopping 61% today.  That’s 6.7 metric tonnes of gold taken off of JP Morgan’s inventory.  As you can see in the chart below, there are only 136,380 oz of gold left in Morgan’s Customer inventory.   Basically, JP Morgan has a little more than 4 metric tonnes of gold left in its Eligible or Customer inventory.
Furthermore, that 217,844 oz withdraw from JP Morgan’s vault accounted for 28% of its total inventory….meaning JP Morgan only has approximately 555,000 oz left in its total inventory.


Source: Chip Somodevilla/Getty Images

Source: Chip Somodevilla/Getty Images

Employees have been front-running client orders and rigging WM/Reuters rates by pushing through trades before and during the 60-second windows when the benchmarks are set, said five current and former traders, who requested anonymity because the practice is controversial.  Dealers colluded with counterparts to boost chances of moving the rates, said two of the people, who worked in the industry for a total of more than 20 years. The behavior occurred daily in the spot foreign-exchange market and has been going on for at least a decade, affecting the value of funds and derivatives and all investments.  The Financial Conduct Authority, Britain’s markets supervisor, is considering opening a probe into potential manipulation of the rates, according to a person briefed on the matter. Informed observers have long warned that the global $4.7-trillion-a-day foreign exchange market, the biggest in the financial system has all the hallmarks of a casino. The inherent conflict banks face between executing client orders and profiting from their own trades is exacerbated because most currency trading takes place away from exchanges.

“The NSA has built an infrastructure that allows it to intercept almost everything.”
“With this capability, the vast majority of human communications are automatically ingested without targeting. If I wanted to see your e-mails or your wife’s phone, all I have to do is use intercepts. I can get your e-mails, passwords, phone records, credit cards.”
Any analyst at any time can target anyone. Any selector, anywhere… I, sitting at my desk, certainly had the authorities to wiretap anyone, from you or your accountant, to a federal judge, to even the President…
To do that, the NSA specifically targets the communications of everyone.

“The great fear that I have regarding the outcome for America of these disclosures is that nothing will change. [People] won’t be willing to take the risks necessary to stand up and fight to change things… And in the months ahead, the years ahead, it’s only going to get worse. [The NSA will] say that… because of the crisis, the dangers that we face in the world, some new and unpredicted threat, we need more authority, we need more power, and there will be nothing the people can do at that point to oppose it. And it will be turnkey tyranny.”

The following are 27 quotes from Edward Snowden about U.S. government spying that should send a chill up your spine…

Are you on the list?  Are you one of the millions of Americans that have been designated a threat to national security by the U.S. government?  Will you be subject to detention when martial law is imposed during a major national emergency?  As you will see below, there is actually a list that contains the names of at least 8 million Americans known as Main Core that the U.S. intelligence community has been compiling since the 1980s.  A recent article on Washington’s Blog quoted a couple of old magazine articles that mentioned this program, and I was intrigued because I didn’t know what it was.  So I decided to look into Main Core, and what I found out was absolutely stunning – especially in light of what Edward Snowden has just revealed to the world.  It turns out that the U.S. government is not just gathering information on all of us.  The truth is that the U.S. government has used this information to create a list of threats to national security that the government would potentially watch, question or even detain during a national crisisIf you have ever been publicly critical of the government, there is a very good chance that you are on that list.

Bill MurphyIn this excellent interview with Finance & Liberty’s Elijah Johnson, GATA’s Bill Murphy discusses the CME’s recent disclaimer regarding the accuracy of their physical gold and silver reports, the potential for a bail-in collapse of the banking system here in the US, and when the gold manipulation scandal might finally join the Benghazi, IRS, PRISM, and ever-widening plethora of scandals plaguing the Obama administration.
Murphy’s full interview is below: