Over the weekend we stated the gold repatriation avalanche had begun with a Netherlands citizens group joining the German Federal Accountability Office in demanding the BOE and NY Fed return their nation’s gold reserves.

We predicted that an avalanche of nations across the West would soon join Germany and Venezuela in attempting to repatriate their tungsten gold reserves from the Fed and the BOE, and it appears that avalanche is picking up momentum as Ecuador, with 26.3 tons of gold reserves, has just demanded the repatriation of one third of their foreign gold holdings ‘to support national growth‘.

This morning we posted a story about Chinese businessmen minting solid gold business cards for use bribing public officials.  Apparently business cards are not the only solid gold cards in demand, as Kazakstan’s Sberbank has announced plans to release the ultimate credit card- made entirely of solid gold, diamonds, and pearls. 
The card will cost $100,000, have a $2,000 a year fee, and will only be available for current Sberbank customers. 

The exclusive card will also carry high-end perks such as life-insurance, concierge service, and private access to airport lounges.

Man’s inherent bias is a problem that distorts how we view nearly all truth from religion, to markets, to politics, as well as nearly every other area of life.  Until we take the red pill, we are often blissfully ignorant of many facts staring ourselves in the face, and simply unable to see the truth for what it really is.

We Are Change’s Luke Rudkowski hit the streets of NYC (before they were underwater) to find out where Obama supporters really stand on his policies.  Rudkowski presented numerous Obama policies as Romney’s.  Hilarity ensued as liberals apparently emphatically hate President Obama’s policies such as the NDAA, SOPA, foreign wars, and financial bailouts when the bias is removed from their judgement. 


The Doc welcomed back Cheviot Asset Management’s Ned Naylor-Leyland for an exclusive interview Sunday regarding the German gold repatriation, and how it will affect the physical gold market going forward.
In this MUST READ interview, Naylor-Leyland stated that when you take into account the fractional reserve accounting by the bullion banks, the 50 ton annual gold repatriation number is much larger in terms of the impact on the underlying market.

Naylor-Leyland believes Germany and the other central banks storing their gold reserves at the BOE and the NY Fed are essentially SOL, stating: If you’re holding your central bank gold reserves either in the Bank of England or the NY Fed, unless you are Theseus trying to find the Minotaur, you have no chance of getting out of there with any metalThe gold ownership chain of custody is severely tarnished and it’s obvious that it’s a problem.  In light of what we know about the tightness of the physical market it appears the pressure is on, and it’s not likely to dissipate.

Full MUST READ interview with Ned Naylor-Leyland on the central bank panic out of paper and into physical gold reserves below:

After 48 hours of trading darkness, the COMEX pits are open this morning.  One wouldn’t even need the press release to know, simply a glance at the gold and silver charts would suffice.
After strong gains throughout the overnight Asian and London sessions, gold and silver were hit hard exactly on the COMEX open.
Welcome back Blythe.

*Updated: Silver did indeed hold support at $32, and subsequently pop to $32.50 as predicted

“A win by Romney is generally seen by investors as a downside risk for gold,” says Joni Teves of UBS. “Nobody wants to do anything until the elections are out of the way.”   ”The real “Romney risk” for the yellow metal has nothing to do with fiscal policy. Instead, traders and investors are focusing on the likelihood that if Mr Romney wins the November 6 election, he would replace Ben Bernanke with a more hawkish chairman of the Federal Reserve when the latter’s term expires in January 2014.  If that means a change in direction from the Fed’s current experimental and super-accommodative monetary policy, gold could suffer. Recall the sharp sell-offs earlier this year when expectations of quantitative easing were deferred.”

Gold will not suffer when there is a change and a move away from ultra, ultra loose monetary policies. As was seen in 1980, gold’s secular bull market is likely to end if the Federal Reserve again achieves positive real interest rates.  As was seen in 1980, gold will only fall towards the end of the interest rate tightening cycle – this could take many years.  Likewise, an Obama victory may be the green flag gold bulls have been waiting for.”   The 45th U.S. President is less relevant to the gold price than the wider global monetary, macroeconomic, systemic and geopolitical fundamentals – all of which remain extremely positive for gold. 

The legendary Jim Sinclair has released a rebuttal to hedge fund manager Hugh Hendry’s recent statements that gold mining companies will be nationalized and physical gold will be confiscated as the gold price passes $3,000/oz.  Sinclair states that Roosevelt’s gold confiscation of the 1930′s was a means of increasing the supply of money for Fed and Treasury discretionary use- essentially the QE of it’s day.

Sinclair states that neither gold nor gold companies will be confiscated during this bull run: Gold was not confiscated because it was going up in price. Gold’s order of confiscation came as a tool of monetary stimulation in order to create monetary creation in order to attempt to increase employment. The order of gold confiscation had nothing whatsoever to do with punishment of the gold holders. It preceded the then big run up in the gold price. Believers in confiscation, because they are incorrect on its basis, are totally wrong in predicting it.


Our friends at VisualCapitalist who routinely produce the best infographics (including an excellent gold series), have released the first of a 3 part infographic series on silver: The History of Silver.

The MUST SEE infographic discusses silver’s malleability, aesthetics, anti-bacterial properties, rarity, and concludes with an in-depth examination of silver’s history as a currency.

For thousands of years, silver was inseparable with history and currency.  Today silver is a store of wealth and absolutely essential for modern industry and technology.

Full silver infographic below:

The biggest and most destructive storm to ever hit the US East coast has left sharks swimming in New Jersey neighborhoods, Manhattan dark and underwater, the Con Edison power plant going supernova, the subway system ready for U-boats, and threatens to drop the 1% back into the 99%.

Unbelievable photos of the shocking destruction below:

Submitted by Stewart Thomson

Please make note of the fact that gold tends to bottom around the 3rdweek in October.

At the end of the month (now), spot gold seasonally tests those lows, and then begins to rise.  The seasonal chart for the gold futures price tends to make a significant low about now, and then makes a final low on approximately November 14.
The daily gold chart seems to be suggesting that gold is poised to move higher on “seasonal schedule”.  

I consider a move over $1800 to be the most technically significant event in the history of the gold bull market.
At this point in time, silver looks at least as good as gold, and probably better. The downside is likely to be strictly limited by the powerful support that sits between $30 and $31.25.

FEMA has just reported that they are preparing for Hurricane Sandy to disrupt next Tuesday’s Presidential elections.

Will Obama declare Martial Law along the US east coast due to the massive devastation and become the defacto der fuhrer by suspending elections? 

The Federal Emergency Management Agency is preparing for Hurricane Sandy to disrupt next week’s elections, agency Administrator Craig Fugate said Monday afternoon.

The Royal Canadian Mint has announced an IPO of an exchange-traded receipts (ETR) fund backed by physical silver bullion.  The initial offering is reportedly a mammoth C $100 million.   Each ETR will reportedly be priced at $20, and can be redeemed for either cash of physical silver.
While we always advocate physical bullion metal held in your own personal possession, the launch of the Canadian Mint’s silver ETR could have drastic implications on the physical silver market.