Following last week’s panic sell-off in gold (and resultant explosion in physical buying worldwide), one of the world’s top gold traders and recent interview guestGary Savage, shared some powerful commentary on the psychology of these buyers.
Gary said, ”The buying frenzy we’re seeing in the gold market isn’t dumb money buying at a top. This isn’t the same thing as we saw in the real estate market in 2006 and tech in 2000. That was every Tom, Dick, Harry and Jane chasing a parabolic move expecting to get rich quick with no effort. That was people looking for a free lunch.

We don’t have those kind of conditions in the metals market at this time. On the contrary gold is making new lows, not new highs. There is no parabolic move, and there never was. In a true bubble, a market will increase 200-500% in a year and a half. Oil doubled in a year and a half. The Nasdaq tripled. Gold was barely able to pull off a 170% increase over a three year period. That isn’t even vaguely parabolic.
No sir, the buying we are seeing now is a result of prices being artificially suppressed below the natural market value.
This is not dumb money buying gold. This is smart money recognizing that gold is too cheap.

beach ballGold & silver continued their impressive recoveries off last week’s smash lows this morning, as silver moved .80 vertically to the upside to $24.01 on the COMEX open, and gold jumped $10 through $1450 to $1456!
Both metals have subsequently been bushed back below resistance at $24/ $1450, and we can expect continued volatility throughout the day as today is options expiration. 
Look for both metals to continue their strong move tomorrow and next week with options expiration behind us.

redesigned $100 gold noteThe Fed announced today that the long awaited and much anticipated redesigned $100 Federal Reserve note, which contains strong overtures to gold including a golden ink well, will be released on October 8th, 2013.   The golden hued C-notes, which have been delayed since 2010 due to “production issues” have been speculated by many in the precious metals community to signify a move by the Fed back towards a gold backing for the US dollar.

Is the dollar end game and a gold revaluation less than 6 months away?

gun controlWelcome to the new Fascist Amerika where only those businesses aligning with the goals of our fascist overlords are allowed to succeed. As the WSJ has reports tonight, GE Capital has just cut off all funding to gun dealers across the US:

This month, Glenn Duncan, owner of Duncan’s Outdoor Store in Bay City, Mich., said he received a letter from GE Capital Retail Bank in which the lender said it had made “the difficult decision” to stop providing financing services to his store. Other gun dealers have received similar notices.

With the Senate failing to pass Obama’s signature gun control legislation this week, it appears that the banksters are taking the destruction of the 2nd amendment into their own hands.

big Exclusive
By Eric Dubin
Precious metals mining stocks were on fire today.  If you were looking at just the prices of gold and silver bullion, this substantial shift among the institutional money gang wouldn’t be on your radar.  The move is large enough that it’s worth pointing out.  The move is yet one more sign that the bottom for precious metals is in the rear view mirror, and that $22 silver is going to hold.

A Quick Recap

  • Cyprus: Warn the wealthy insiders, politicians, and Russians, and then steal from the remaining depositors. This will hurt confidence in banks, the EU, and the IMF.
  • Bail-in Plans: Announce that the bail-in plan (steal from depositors) is THE template to fund bank failures in the EU, Canada, USA, and New Zealand. This further reduces confidence in banks and politicians. Read A Tipping Point In The Financial System – Part 2.
  • Gold bars leaving the Comex vault: According to David Chapman, gold in Comex vaults is down about 25% since 2010. Read the whole article for some interesting insights.
  • Japanese money printing announcement on April 4, 2013. Yes, printing money (“monetary heroin”) has not worked in the past thousand years, but printing more aggressively might be successful (like treating heroin addiction with more heroin) this time.
    And, yes, it will end badly.

The United States is a deeply unhappy place.  We are a nation that is absolutely consumed by fear, stress, anger and depression.  It isn’t just our economy that is falling apart – the very fabric of society is starting to come apart at the seams and it is because of what is happening to us on the inside.  The facts and statistics that I am going to share with you in this article are quite startling.  They are clear evidence that America is a nation that is an advanced state of decline.  We are overwhelmed by fear, stress and anxiety, and much of the time the ways that we choose to deal with those emotions lead to some very self-destructive behaviors.  Americans have experienced a standard of living far beyond the wildest dreams of most societies throughout human history, and yet we are an absolutely miserable people.  Why is this?  Why is America #1 in so many negative categories?  Why are we constantly looking for ways to escape the pain of our own lives?  Why are our families falling apart?  There is vast material wealth all around us.  So why can’t we be happy?

Ron PaulBloomberg’s Market Makers interviewed Ron Paul Tuesday, with Paul discussing last week’s epic gold smash. With the Bloomberg duo attempting to goad Paul into admitting gold is not a safe asset due to the recent price volatility, the former Texas Congressman stated that he’s not concerned about the recent gold slump, he’s worried about the 100 year slump in the US dollar!  Paul points out that PHYSICAL gold demand has gone through the roof, and states for true believers the recent gold dip is an excellent buying opportunity, and that he personally bought gold last week.
Paul also discusses Bitcoin (not a fan…I’m not interested in something I can’t put in my pocket), Central bankers, the Treasury Bubble and its coming US collapse, and the future of the Republican party.
Paul’s full MUST WATCH interview is below:

20121003_grant_0The Interest Rate Observer’s Jim Grant was back on CNBC Tuesday, again discussing the manipulation of interest rates and The Fed. When asked by Maria whether The Fed is getting ready to stop QE this summer, Grant responded that “they’re just getting into it!”
On gold, Grant stated: I’m still bullish, gold is THE ALTERNATIVE to Central banking! It’s the way to get short Central banks!   The single fundamental of the gold market is aggressive, unprecedented money printing and the institution of managed currency. As long as that remains in place, you are compelled to look at an alternative to Central Banks if you are serious about retaining the money you’ve earned, the principle alternative to Central banks is the ancient monetary asset they can’t create!

Jim Grant’s full interview on the Fed & gold is below:

The Silver Institute released the 2013 World Silver Survey this morning.  The Silver Institute report saw global silver investment rise to 252.7 million ounces last year, with ETF demand hitting a record 631.4 million oz, and silver coin demand coming in at 92.7 million oz, the third highest total on record.
Industrial silver fabrication demand in 2012 dipped to 846.8 million oz.

The Silver Institute’s Full 2013 World Silver Survey is below:

The U.S. Mint is suspending sales of one-tenth oz American Eagle gold coins. The Mint says that sales are suspended as inventories are depleted and need to be replenishedDemand for one-tenth ounce gold coins is up 118% from a year earlier!
Premiums are rising on all gold and silver bullion coins and bars and there are delays developing for certain bullion products – especially silver coins and bars.