gold keySubmitted by Stewart Thomson

Gold has risen above HSR (horizontal support & resistance) at $1675, and did so while bursting above a key short term trend line.  The arrival of the gold price at key HSR, in the $1630-$1650 area, was accompanied by rampant bearishness amongst most gold investors.  The Hulbert sentiment index for gold is currently at one of the lowest points in the history of the index.
The general sentiment for gold still appears to be very negative.  That’s great news for gold, because markets tend to rise strongly, on the biggest walls of worry!

Most gold timers that I keep an eye on, are still looking to short rallies, rather than buy declines.  I think they are making a serious technical error with this strategy.  Gold is the lowest risk asset in the world.  It’s arguably the “ultimate asset”.  There are not many really good shorting opportunities in a gold bull market.

big resetIt’s official.  The Bundesbank has just invoked pure holy terror among the bullion banking cartel.  The Bundesbank will officially begin repatriating 1/2 of Germany’s gold reserves.  The real question is why now? What has changed over the past 3 months?  Is Germany preparing to leave the Euro and introduce a gold-backed Deutsche Mark?

By 2020, the Bundesbank intends to store half of Germany’s gold reserves in its own vaults in Germany. The other half will remain in storage at its partner central banks in New York and London. With this new storage plan, the Bundesbank is focusing on the two primary functions of the gold reserves: to build trust and confidence domestically, and the ability to exchange gold for foreign currencies at gold trading centres abroad within a short space of time. The withdrawal of the reserves from the storage location in Paris reflects the change in the framework conditions since the introduction of the euro. Given that France, like Germany, also has the euro as its national currency, the Bundesbank is no longer dependent on Paris as a financial centre in which to exchange gold for an international reserve currency should the need arise. As capacity has now become available in the Bundesbank’s own vaults in Germany, the gold stocks can now be relocated from Paris to Frankfurt.

Boston University Economics Professor Laurence Kotlikoff is worried about America’s dire financial situation. Dr. Kotlikoff says, “The situation is getting worse and worse and worse. We are running a massive six decade Ponzi scheme, and it’s coming to a real threatening point.” Dr.Kotlikoff calculates the real government deficit is enormous and it’s growing exponentially.

It’s $222 trillion. Last year it was $211 trillion. We grew the deficit by $11 trillion in one year,” charges Dr. Kotlikoff. He also says, “We are actually in worse shape than any developed country. . . We are using accounting that would make Bernie Madoff blush.” Kotlikoff thinks the Federal Reserve could easily lose complete control of inflation and warns, “Ben Bernanke is playing with fire here because we could have a tripling of the price level.” Join Greg Hunter as he goes One-on-One with Economist Laurence Kotlikoff.

Our friends at Visual Capitalist have released the 3rd and final infographic visualizing the silver market. 
Part 1 provided a visual overview of the History of Silver, and Part 2 gave a visual overview of supply and demand for silver.

Part 3 looks at silver as an investment- from the size of silver investment demand, to previous gains, to how to invest in physical silver.

Silver as an Investment: The Ultimate Silver Infographic

Legendary gold trader Jim Sinclair has sent an email alert to subscribers today regarding last night’s news that Germany will begin repatriating it’s gold held on deposit at the NY Fed back to the Bundesbank, as well as all 374 tons held at the Bank of France.
Sinclair states that history will look back on this salvo fired across US war financing as being the beginning of the end of the US dollar as the reserve currency of choice, and that under normal circumstances, no major central bank would insult another major central bank in the way that the Bundesbank just has.

Sinclair states that the Bundesbank repatriating its gold reserves is the most significant event in the gold market since Charles De Gaulle called the US hand that it would stand by convertibility, and that gold is headed to $2111 in the near future in the wake of the Bundesbank’s actions.

Sinclair’s full MUST READ alert below:

While Bernanke spent his afternoon today outlining why the gold standard can never work (never mind the fact that it worked perfectly for 2 centuries in America), the Bundesbank has just shattered the remaining confidence in the fractional bullion banking system, announcing that it will repatriate a portion of its gold reserves from the NY Federal Reserve, and ALL 374 tons of its gold held at the Bank of France!

In the months that followed Hugo Chavez’ 110 ton gold repatriation request in the summer of 2011, gold exploded nearly $400 as the bullion banks panicked.  As the Bundesbank’s official gold holdings held at the Fed and the Bank of France dwarf Venezuela’s 110 tons, don’t be surprised if the price of physical gold goes super-nova as Germany’s repatriation request plays out, as paper gold rehypothecated 100 times over must suddenly be conjured up in physical form.   

demonocracy-gold-10_tons-100_tonsOur friend Oto from Demonocracy.info has released another must see infographic.  Rather than depicting the US debt or deficit in $100 bills dwarfing the NY skyline and reaching the moon, Demonocracy’s latest infographic depicts the world’s entire gold supply in bullion bar form.
In the wake of the Bundesbank’s announcement that it will repatriate its gold reserves from the NY Fed and 374 tons from the Bank of Paris, this is a MUST SEE visual representation of what 374 tons (or Germany’s entire 3,400 ton gold reserves) physically looks like.

Ben Bernanke Jamie DimonThe Federal Reserve Monday issued it’s owners (JP Morgan Chase) a two separate Cease and Desist orders.  The first orders JPM to take corrective action regarding its prop-trade hedge fund known as the Chief Investment Office (CIO), and the second orders The Morgue to take corrective action regarding compliance with anti-money laundering requirements
The Office of the Comptroller reportedly also issued two similar orders against JPM Monday.

We’re sure Jamie’s conversation with Ben went something like this,  ‘You want us to do WHAT with our hedge fund?  Oh, yeah, sure Benny, we’ll get right on that.

Full release below:

The US Mint announced another 300,000 silver eagles sold Monday, bringing the 6 day sales total to an astonishing (and record pace) of 5.082 million ounces!
As silver eagle production was shutterred until January 7th, the Mint is on pace to sell nearly 15 million silver eagles in the first month of 2013, which would be a record ANNUAL sales total as recently as 2007! (9 million ounces sold for all of 2007). 

Gold climbed $5.20 or 0.31% in New York yesterday and closed at $1,668.40/oz. Silver surged to as high as $31.16 and finished with a gain of 1.94%.

The yen fell to 149,588.2 yen against gold, its lowest level since 1980. According to the data on Bloomberg, the all-time record high for gold priced in yen was 204,850 yen on January 21, 1980. 

Thus, yen gold remains 37% below the record intra-day nominal high from 1980. Given the Japanese determination to devalue the yen to escape deflation, the record nominal high will almost certainly be reached in the next year or two.

USMintThe US Mint reported another 300,000 oz of 2013 Silver Eagles sold Friday, bringing the 1 week sales total to what is believed to be a record 4.782 million ounces!

With nearly 3 full weeks remaining in 2013, the US Mint sales totals are set to shatter January 2011′s all-time monthly record of 6.422 million ounces.

We are seeing absolutely unprecedented and astonishing demand for ALL forms of physical silver over the past 3-4 weeks at SDBullion.

Bernanke lectureThe Propagandist in Chief (aka Federal Reserve Chairman Ben Bernanke) is scheduled to give a lecture at the University of Michigan’s Gerald School of Public Policy at 4pm EST today on current economic issues and the recovery.

Have your buy orders ready, and prepare to Stack the Smack if the cartel MO of raiding the metals on Bernanke speeches/ FOMC releases continues.

Watch The Bernank’s speech live below at 4pm EST

Rolling Stone’s Matt Taibbi & former financial regulator William Black discuss the government’s recent $8.5 billion settlement with TBTF banks including Bank of America and JP Morgan over foreclosure fraud and robo-signing.

Taibbi argues the government did not just bail out Wall Street, but also lied on the financial sector’s behalf, calling unhealthy banks healthy and helping banks cover up how much aid they were getting. The settlement will end an independent review of all foreclosures, meaning the banks could be avoiding billions of dollars in further penalties, in addition to criminal prosecution.

rocketThe silver story has gone mainstream in the UK, as the BBC has released a piece on the reasons for owning physical assets such as silver with Eurozone and US debts and deficits spiraling out of control.
While the piece does not touch on metals manipulation by the banking cartel, the BBC discusses a target for silver’s gains to reach 500% within the next 3 years.

Full BBC silver report below: