gold bottomIn his latest interview, silver expert David Morgan has joined The Doc’s December 2013 call for a bottom in the 2 year gold & silver correction.
Morgan states that the sell-off to end 2013 which marked a double-bottom in gold was highly unusual, and marked the end of the major 2-year correction in the monetary metals. 
Morgan states that the big gains in gold, silver, & the miners in 2014 has not caught him by surprise, and that the next major bull move is underway.
Morgan’s full interview is below:

dollar collapse panicThe political and economic crisis in Ukraine has led to a currency crisis. The Ukrainian hryvnia has fallen by 50.14% against gold in 2014 and by 28% in the last four days alone. Ukrainians who own gold have protected their savings – again showing gold’s safe haven properties.
Ukraine is seeing bank runs, as central bank reserves shrink and some 7% of bank deposits were withdrawn in just 3 days.  Bank run fears mean some financial institutions operating in Ukraine closed branches and imposed limits on cash withdrawals this week.
Bail-ins are likely to be the next step taken by the authorities in Ukraine. Preparations have been or are being put in place by the international monetary and financial authorities for bail-ins. The majority of the public are unaware of these developments, the risks and the ramifications.

banker deathThe pile of dead JPMorgan employees continues to grow, as 34 year old Jason Alan Salais, who had been an Information Technology specialist at JPMorgan since 2008, has been found dead outside a Walgreens pharmacy.  

gun forcedDave Hodges from The Common Sense joins the SGTReport to discuss the very real possibility of a US military coup, and the signs which Dave says point to it, Dave reminds us that Dr. Jim Garrow told Dave on his show that “a coup is in process.”
Dave discusses EU plans to confiscate the savings accounts of its citizens, and Obama’s MyRA which is the US government’s attempt to seize OUR savings.   We also discus the lengthening list of dead Banksters about which Dave says; “This is a criminal mafia organization that’s trying to run the planet and key witnesses who might speak out are disappearing… I believe this is evidence tampering through murder.

The parabolic structure in stocks will collapse.  It’s going to take a collapse in the stock market for Yellen to reverse the taper and I think she will not only reverse it, but I think she will double down on QE. Instead of $85 billion a month, we may get $150 billion a month. 
The problem is that when a parabolic structure breaks, you can’t put it back together.
The Fed is going to make the same mistake when the bubble and stocks pop. They’re going to follow the same game plan they did in 2008. They’re going to get the same results. Liquidity is going to flow into the commodity markets. It’s going to spike commodity prices which is going to make cost of living expenses for the average person go through the roof, and that collapse is discretionary spending and that will send us down into another recession/depression that I expect will be worse than 2008, and I expect the stock market will fall below 666.

launch rocketThe price of gold and silver will both hit new highs in 2014. The price of gold goes north of $2,000, and silver will quickly go over $50. When it does, it will get a little crazy.  – Eric Sprott, Sprott Investment Management –

Since the Federal Reserve was founded, the GSR has ranged from 15 to 100.   The low-end of the range usually correlates with bull market tops in gold/silver and vice versa with the high-end.
Currently the GSR is 60, and I believe the recent movement in the GSR is signalling the possibility of a big move ahead for gold and an even bigger move for silver.

freefallAfter attempting to climb above $22 during overnight trading, silver drifted down throughout the London session, and has been hammered on the COMEX open, down over $1 to $21.01.  
Gold has also been hit hard, down over $20 from overnight highs of $1345.  
With the crisis in Ukraine escalating, the dollar has been catching a safe haven bid, and the Western Central banks have not missed their opportunity to reassert pressure on the paper metals markets. 

bitcoin goneMt.Gox CEO Mark Karpeles has just issued a public statement, assuring Mt.Gox customers that he has not fled Japan, and “kindly”asking customers to refrain from asking any questions to the Mt.Gox staff on the whereabouts of their crypto-wealth, as Karpeles has instructed his staff  “not to give any response or information“.
Well.  That should calm those pesky people wanting access to their funds considerably.  

gold & silver sold outThe U.S. Mint updated its sales figures today… and it was another whopper.
Yesterday, the U.S. Mint sold 825,500 Silver Eagles which was about two-thirds of the weekly allocation.
The total Silver Eagle for February is now 3,671,500.
Not only has this been another excellent month (so far) for Silver Eagle sales, it is an all-time record for February!

launch rocket verticalAs you will see below, there is a great deal of ‘misplaced inflation’ sitting in the stock market just waiting to find a home in silver.
The key number for silver to get back through at the moment is $23, which is the 62.8% retracement from $50 denoted on the long-term weekly plot. Once firmly back into the Fibonacci grid, market observers should watch for two important potential developments: First, a fall back through $23, and then the large round number at $20, would signal a potential waterfall decline in price, which is of course what the Western banking cartel would love to see.  They are attempting to engineer this via their faulty and fraudulent Anglo / American paper pricing mechanisms that are still referred to as markets (think COMEX, ETF’s, etc.), but so far have failed in this regard.   The second important thing to watch for is a lasting break above key Fibonacci resonance related resistance at $33. Once this is history, then it’s a forgone conclusion $50 will offer limited resistance as silver blasts off through $100 into triple digit territory. 

Reuters / Jim Urquhart

Mt Gox, once the world’s largest bitcoin exchange, has lost 744,000 bitcoins, or 6 percent of total units in circulation. Technical glitches in February have forced the trading platform to consider filing for bankruptcy.  Bitcoin Foundation members told Business Insider they are worried Mt.Gox may be insolvent: We are shocked to learn about Mt.Gox’s alleged insolvency.
Mt. Gox posted an update on its website on Tuesday stating that a “decision was taken to close all transactions for the time being,” on the grounds of “recent news reports and the potential repercussions on MtGox’s operations.”
Mark Karpeles, the chief executive of the Tokyo-based Mt Gox exchange, has resigned from the board of the Bitcoin Foundation ‘effective immediately.’ 

chinese gold rushIn order for our current level of debt-fueled prosperity to continue, the rest of the world must continue to use our dollars to trade with one another and must continue to buy our debt at ridiculously low interest rates.  Of course the number one foreign nation that we depend on to participate in our system is China.
Unfortunately, there are signs that China has now decided to start looking for a smooth exit from the game.
China dumped nearly 50 billion dollars of U.S. debt during the month of December.
So if China is not going to stockpile U.S. dollars or U.S. debt any longer, what is it going to stockpile?
It is going to stockpile gold of course In fact, China has been voraciously stockpiling gold for quite some time, and their hunger for gold appears to be growing.

fiscal cliffFundamentals for gold and silver have become the incense of reality for Westerners.  The primary focus is on how many tonnes of gold China has been importing for the past many years, the depletion of available stocks from the central bankers straw men, aka the LMBA
and COMEX, the number of coins sold by various governments to the public.
People are focusing on the price of PMs, treating gold and silver as vehicles for increasing in price relative to their cost of purchase.  It is the reason for buying and holding gold and silver that matters.  As a consequence, attention is paid to what people think should happen to the price of gold and silver, and not on the reality of what the artificially suppressed market is showing.
Know this:  It does not matter what you pay/paid for owning physical gold and silver.
Price is temporary; physical is permanent.

Understanding the dynamics behind the preference cascade is particularly important for gold and silver.  If we think about the behavior that we call investing, we can quickly discern that at present, people who place a portion of their savings into physical gold and silver are “Outliers” in terms of investing behavior among the general public.  The vast majority of people who invest do so in equities (through 401k’s, trading accounts, mutual funds, etc), and many own bonds or own funds that invest in bonds, as well.  The idea of investing your saved wealth in physical gold and silver outside the system is still a practice that is comparatively rare.  This makes all of us at SD unusual exceptions to the norm… we are the odd outliers within the larger population of investors.
At some point people will wake up and understand that although they are following the rules (and following the herd when it comes to investing advice) they are swimming against the tide, and the tide is winning.   And when this becomes plain to them, people will look around and see that there is a small group of investors who have managed to protect their saved value through physical gold and silver in their possession, and that this has insulated them, over the long term, from wealth confiscation via inflation.  When this happens, and when the obvious benefits of the behavior of these investing “outliers” becomes crystal clear to the broader population, we will see a preference cascade to end all preference cascades into the metals.

Ukraine Protests - Photo by Mstyslav ChernovWhat is happening on the streets of Kiev right now is really a proxy war between the East and the West.  On the one side you have the USSA and the EUSSR, which are quite determined to bring Ukraine under their sphere of influence.  On the other side you have Russia (the former USSR), which is quite determined to keep Ukraine out of the EU and out of NATO.  In addition, Russia is extremely concerned about the strategic natural gas pipelines that go through Ukraine that transport gas from Russia to the rest of Europe.  Ultimately, it is not in the interest of the people of Ukraine to be dominated by either side, but that is going to be what ends up happening.  The Cold War is playing out on the streets of Kiev as you read this, and this conflict is going to greatly increase tensions between the East and the West.  As these tensions continue to rise, someday soon this Cold War could actually end up sparking a real hot war between the superpowers.

gold eagleGold is marginally lower in all currencies today but holding near its strongest level in four months. Concerns about the possibility of the Chinese property bubble bursting affecting economic growth in China and the world is supporting gold.  Nervousness over Ukraine, after new acting President Turchinov warned Ukraine is close to default, is also supportive of gold at these levels.
Indian and Indonesian buyers also continue to purchase gold: “We are seeing some buying, and there are purchases from India. Other clients are still buying some quantity, about 20 to 30 kilos each time,” a gold dealer in Singapore told Reuters.
The increase in gold ETF holdings could also reflect renewed interest from investors. SPDR Gold Trust, the world’s largest gold exchange traded fund, said its holdings rose 0.41% to 801.61 tonnes on Monday from 798.31 tonnes on Friday.
Gold has risen more than 11% this year in dollar terms, 10% in euro terms and 9.1% in pound terms due to renewed safe haven demand.

U.S. Mint Silver Gold RatioAs sales of Gold Eagles remain subdued, the market continues to purchase every available Silver Eagle from the U.S. Mint.  Since the beginning of the year, the U.S. Mint has sold its Silver Eagles on a weekly allocated basis.
 in the past several weeks, 80-90% of the total allocated weekly Silver Eagle amount was sold on the first day of the week!
The U.S. Mint just updated its sales figures Monday, with an astonishing 744,500 Silver Eagles sold in one day:

silver crashExtremely interesting developments in the open interest in both gold and silver this week!!
In silver, we see the commercials going FAR more short and the large specs going far more long.  Really interesting is the price rise, yet the speculators, on the surface, are not buying up long contracts by the bucket  – but they covered so MANY short contracts that their net long position went skyrocketing upwards.  For the commercials part, both the producer merchant and the swap dealers added huge on the short side to the tune of over 12,000 new contracts total.
Notice the silver commercials added over 50 MILLION ounces net short!!
So, in my numbers world, with price rising, that tells me the commercials led the way and FORCED the speculators out of short positions.  Notice a very modest pickup of short contracts by the small specs.  Those guys know the top is near and they are getting ready to ride the rocket downhill as the commercials crash price in the coming days.