20121003_grant_0Jim Grant was back on CNBC comparing the ticking shot-clock in a March Madness game to the artificially low interest rates via manipulation by the Federal Reserve, allowing the Fed to stall the game without any real recovery.

Grant also discusses his belief that the problems in Cyprus cannot be contained, and stresses the point that Your money in the Western banking system is not really yours if it is needed by the state!
Grant goes on to state that This is the greatest and most perilous experiment in the history of paper money! and  This will end in immense destruction of wealth!

Full interview is below:

Alix SteelIn a report on Argentina, Bloomberg’s Alix Steel states that:
Demand for gold is so strong in Argentina, the only bank that trades gold is looking to buy bullion directly from mining companies.  A sign of things to come in other countries perhaps, as Argentina fights the highest inflation rate in the Western hemisphere.

superwomanCypriot Central Bank head Panicos Demetriades has just stated that Cyprus is making a ‘superhuman’ effort to reopen banks by Thursday.
Assuming the banks do re-open Thursday (which is probably not a very good assumption considering Cyprus is already set one of the longest bank holidays in history), we suspect Demetriades will discover that a truly superhuman effort will be required to keep Cypriot banks solvent through Friday’s close and into the weekend.

silverSilver is recovering early in Wednesday trading after being smashed to $28 overnight, with the metal already retracing half of its losses to $28.40. 

Silver appears to be stalling however at the bottom of its 4 week trading range of $28.40-$29.50, and having broken out of that range to the downside, will likely see a $27 handle before selling subsides.

*Update: silver has now retraced its entire overnight smash with a vertical move to $28.70

platinumRussia and South Africa, which together control about 80% of the world’s reserves of platinum group metals, plan to create a trading bloc similar to OPEC to control the flow of exports according to Bloomberg.

“Our goal is to coordinate our actions accordingly to expand the markets for realization of these metals,” Russian Natural Resources Minister Sergey Donskoy said yesterday in an interview at a summit of leaders from Brazil, Russia, India and South Africa in Durban. “The price depends on the structure of the market, and we will form the structure of the market.”

South Africa mines about 70 percent of the world’s platinum, while Russia leads in palladium, a platinum group metal used in autocatalysts, with about 40% of output, according to a 2012 report by Johnson Matthey Plc.

Submitted by Stewart Thomson:

Canada’s Globe & Mail newspaper recently published an article showing that gold company insiders are aggressive buyers of their own stock, at current price levels.
In the big picture, that’s great news for gold stock investors!  Unfortunately, while long term market fundamental & technical indicators suggest that gold offers tremendous value to investors, the daily charts of gold and related assets… seem to be presenting quite a different picture.


The US Mint has just updated March Silver Eagle sales for the first time since 3/21. 

TODAY = 3,356,500
March US Mint silver/gold sales ratio: 60/1!

In the wake of the Cyprus banking collapse, the US MINT HAS SOLD NEARLY 1 MILLION OUNCES OF SILVER IN 4 DAYS!!

The Cypriot case is all over the place, in all types of media. However, it is amazing how the following simple facts remain underexposed. It is one thing to look at the news; it is another thing to look at the learning that comes out of the news.
For those who are willing to see, here is what Cyprus is teaching the whole world about money, the debt crisis and gold.

Source: Banzai7

Source: Banzai7

In an interview with TheBlaze, Peter Schiff makes the case that Bernanke is attempting to re-inflate the housing bubble, and states the Fed won’t stop the monetary heroin until we die of an overdose, and that the reckless monetary counterfeiting will result in a total collapse of the US dollar!

i.e.  QE TO INFINITY until the dollar collapses into hyperinflation!

Schiff’s full interview is below:

gold vaultA survey for the World Gold Council found that just 4% of people in Italy would back plans to sell the nation’s gold reserves according to Bloomberg.
Some 52% of citizens and 61% of business people would support the use of the nation’s gold reserves to reduce debt costs, the World Gold Council said. The study by Ipsos MORI surveyed 1,009 Italian citizens aged 16-70 and 300 business leaders.

Whether to sell Italy’s national gold reserves is an interesting question. A perhaps as interesting question and more important question in the light of the Troika expropriation of bank deposits is will Italians begin to diversify some of their savings in Italian banks into gold bullion?
The answer is almost certainly yes and the recent trickle of Italian money flowing into gold bullion, including into vaults in Switzerland, is likely to become something far more substantial in the coming weeks.
Capital flows out of periphery European banks and into gold has been quite low up until now but with deposits not safe now in the European Union that is likely to change and gold is likely to be one of the beneficiaries of the huge uncertainty that the Troika has managed to create about the banks in many European countries.

Per Reuters, the European Parliament has just officially announced what ECB head DieselBOOM said did not say yesterday, which caused the market to roll over yesterday- that Cyprus is indeed a Eurozone wide template, and the Eurozone has full intentions of following the bail-in model throughout the rest of the PIIGS nations’ debt crises going forward!

In this interview with Ellis Martin, David Morgan reviews a prediction he made a month ago to subscribers of The Morgan Report. “Not to belabor Banking 101, but our quote from Eric Sprott is correct. From a legal and financial accounting standpoint, the term “deposit” is used by the banking industry in financial statements to describe the liability owed by the bank to its depositor, and not the funds that the bank holds as a result of the deposit, which are shown as an asset of the bank. (It is now the bank’s money, not yours.)”
The iceberg commeth in Europe and Cypress is just the tip of this Titanic ride.

letter from CyprusAn SD reader has submitted a boots on the ground report on the escalating crisis in Cyprus, as the entire Cypriot economy is now on the verge of collapse:

Nowhere in Cyprus accepts credit or debit cards anymore for fear of not being paid, it is CASH ONLY. Businesses have stopped functioning because they cannot pay employees OR pay for the stock they receive because the banks are closed.
If the banks remain closed, the economy will be destroyed and STOP COMPLETELY. Looting, robberies and theft are already on the rise.
If the banks open now, there will be a massive run on the bank, and the banks will FAIL loosing all of its deposits, also causing an economic crash

Submitted by Ted Butler:

I’ll save the good for a moment, but the bad and the ugly seem to permeate the silver and gold and other markets. On Wednesday, I mentioned that one reason gold and silver failed to move higher after the Cyprus news was such a rally would have interfered with a planned takedown in copper, platinum and palladium, which was evident on Monday and Tuesday. For the record, there was the expected substantial commercial buying in copper and platinum, a bit less in palladium. My point is that commercial positioning on the NYMEX/COMEX is the strongest short term price influence, way ahead of anything else, including actual news and developments in the real world of supply and demand. This is so contrary to commodity law that I believe the regulators must be thought of as corrupt.

Even worse is that silver (and gold) investors seem to be confronted on a daily basis with the proposition that the US Government is working against the interests of silver investors. While every conceivable effort is undertaken by the USG to help push bond, equity and real estate markets higher, there appears to be an effort to depress silver prices that goes beyond ugly.