Zeal022213BSubmitted by Adam Hamilton, Zeal

Gold got crushed this week in what can only be described as a capitulation.  Cascading selling took on a life of its own as the yellow metal knifed through multiple key support lines.  Newsflow exacerbated gold’s free fall, as extreme fear tainted everything with a heavy pall of bearishness.  Gold bears were euphoric, coming out in droves to pronounce doom on the metal.  But capitulations are actually very bullish events.

sprottLegendary precious metals expert Eric Sprott sat down with The Doc for an exclusive interview to discuss the Bundesbank’s gold repatriation request last month, and the correlation with massive physical gold buying in Asia. 

Eric pointed out that the US government exported 30% of US annual gold production to Hong Kong in December alone, and stated that as there is no excess gold available in the US, all of his analysis suggests that the US gov’t may be exporting the German, Dutch, & Austrian gold reserves held at the NY Fed to China in an attempt to kick the can and forestall the inevitable financial collapse a little longer.

Eric Sprott’s Shocking interview with The Doc is below:

vault*Breaking

ViaMat, one of the world’s leading precious metals storage firms (used by BullionVault & GoldMoney as primary storage provider) has just notified  US customers that effective April 30th 2013, it will discontinue private storage of precious metals for all clients with a US tax liability.   Clients have until April 30th to notify Via Mat International where they would like their physical bullion dispatched to.

All signs point to an imminent escalation in capital controls in the US, just as we predicted last year as the controls were issued by Southern Euro-zone members such as Italy. 

gold repatriationTaking inspiration from George Orwell’s “1984,” renowned BMO advisor Don Coxe has coined the expression “Weakness is Strength” to describe the current economic situation. In a far-ranging interview with The Gold Report, Coxe explains how an international regime of weak currencies has set the scene for a upsurge in the price of gold shares and believes that gold will return as a preferred hedge against loss of value because inflation is inevitable.

Submitted by Bill H.

The time has finally arrived that your parents probably warned you of.  “We can’t go on spending more than we produce forever”…forever has arrived.  Believe me, if there was another way out, sequester wouldn’t even be a word.  It would even be banned from dictionaries but back in 2011 Congress needed to “buy some time”.  They in fact did.  That time however has run out.  Don’t get me wrong, I’m sure that some sort of sleight of hand “deal” will be reached in an effort to buy even more time but one must wonder whether “this time” is THE time.  THE time being when credibility, ALL credibility is lost.

Russia and China are only holding us up (carrying us a few extra rounds) to see how much more metal (money) they can bleed.  People ask me all the time “when do you think the roof will come down?”.  This is very very easy to answer…as soon as Gold or Silver don’t get delivered in return for Dollars

Guest Post

Is gold bullion becoming the commodity the mainstream media and analysts love to hate?

After all, views of the metal are becoming increasingly bearish. But I believe the most important factor as to why gold bullion is actually attractive at this point is being ignored; gold bullion becomes more valuable as the paper money created by central banks increases in circulation.

Doc’s Deal Of The Day

It’s The Last Friday Of The Month,

Which Means Small Stacker Day At SD Bullion!

 

Silver Maple                                           

Maples $2.29 Over Any Quantity!!      Canadian Bison $2.99 Over Any Quantity!!

Click The Coins For The Deals!!

imagesIn the latest Keiser Report, Max discusses the four horsemen of the bondpoclypse riding into town bringing with them the reversal of multi-decades long trends and as pipe swipers steal toilets and as supermarkets hit the limits of cost-cutting, the population confronts the high cost of backsliding trends. In the second half of the show, Max Keiser talks to former energy regulator, Chris Cook, about how we move from dollar diplomacy to gas diplomacy and a world where energy as the modern water hole where you don’t have to kill each other and a natural gas backed currency becomes a new global reserve currency in a post-dollar world.

Competitive currency devaluations are in effect a continuation of currency debasement. Debasement is simply the devaluing of one’s currency or money. In ancient and medieval history it used to be done through the clipping of gold and silver coins.
Today it is done through excessive money creation through the printing of, and indeed the electronic creations of billions and billions of dollars, pounds, euros and other fiat currencies. Indeed, today central bankers are creating billions and billions of electronic money simply by pressing a few buttons on a computer.

Currency wars are set to deepen as most industrial nations in the western world are close to insolvent and look on the verge of recessions – potentially deep ones.
The U.S. will never be able to pay its debts back and so it will attempt to inflate them away through currency devaluation. This poses risks to the global reserve currency status of the dollar – especially as the world moves to a multi polar world where India, Russia, Brazil and China exert their increasing economic and political power.

cartel taken to kneesThe Doc sat down with gold and silver expert and billionaire fund manager Eric Sprott Wednesday for the first of a series of interviews regarding the markets.
Eric warned The Doc prior to the interview that the KWN and USAWatchdog sites were maliciously attacked the day they published interviews with Sprott.  There appear to be powerful interests that would prefer to keep Eric’s thoughts on precious metals out of the public at the present, as SD also sustained a confirmed co-ordinated Apache flood DOS attack during the recording of the interview.  

With gold smashed nearly to $1550 and silver nearly to $28 Wednesday, Eric discussed the latest paper raid in the face of epic physical demand, and stated that the demand for coins has been stunning!

Sprott also stated that there is an absolute shortage in platinum and palladium, and although he still believes silver is the investment of the decade, there is no telling how high platinum and palladium could go.

With silver trading back under $30, Eric states that silver should be $100 today, that he expects it to massively outperform gold, and that he conservatively expects the metal to reach $200/oz.   Eric states that $200 shouldn’t be considered the top however, and that All we know is that the price should be up massively.  Anyone who’s been a student of the market sees these ridiculous trades, but some day these guys will be brought to their knees by people just taking delivery.

The first of Eric Sprott’s MUST READ interviews with The Doc is below:

CMEThe CFTC Thursday filed suit against the CME seeking civil monetary penalties and trading and registration bans for to CME employees, William Byrnes & Christopher Curtin for allegedly intentionally disclosing material non-public information pertaining to specific customer traders.

The suit alleges that from February 2008 to September 2010, Byrnes & Curtin intentionally disclosed material nonpublic information about CME NYMEX trading and customers to a commodity broker on nearly 80 occasions.

Full complaint from the CFTC is below:

goldrepatriationGuest Post

Venezuela, Switzerland, Libya, Netherlands, Iran…

The announcement by the Bundesbank, the central bank of Germany, saying that it would repatriate 300 metric tons of gold held by the New York Federal Reserve raised many concerns. First, Fed attorney Scott Alvarez told Congressman Ron Paul, R-TX, during a House Subcommittee meeting in June 2011, that the Federal Reserve does not and has not held any gold bullion since 1934.  Second, it appears overall trust in the United States and the global monetary system in general is waning faster than the value of the U.S. dollar.  Germany also plans to repatriate all of its 374 metric tons of gold stored at the Banque de France in Paris. It is unclear what effect the Bundesbank’s move will have on the price of gold, but history tells us to prepare for a spike.

take away punchbowlGuest Post by Bill H.

The FOMC minutes were released yesterday and said that several participants thought that pulling the punchbowl at some point would be necessary. Fat chance! No, NO CHANCE! There is no chance now just as there was no chance back in 2009 and ’10 with all of the talk of “green shoots and exit plans”. Forget about anything and everything else, if the Fed steps back then WHO will buy the Treasury’s bonds? Anyone have an answer for this one? Anyone? Buhler?