Gold Bides Time As ‘Risk Free’ German Debt Downgraded On “Exposure to Eurozone”

Gold’s safe haven status will soon again be realized and universally accepted.  Repeated simplistic assertions that gold is a bubble will be seen as misguided and imprudent.
This is assured as we live in an era where assets previously considered risk free, such as U.S. treasuries and German bunds, are increasingly being questioned.
If ‘risk free’ European debt and even German bunds are no longer without risk, it will reverberate throughout all markets (bonds, equities, currencies, gold etc) globally, creating an increase in relative risk levels and a consequent adjustment of investment values.

It means that the record low interest rates of recent years will be no more.
Paper assets and fiat currencies look set to continue to fall against the finite and immutable currency that is gold. Especially as the risks of a global currency war and global competitive currency devaluations remains real. [Read more...]

China, Chile To Establish Strategic Partnership, Boost Trade, Launch Currency Swap and Settle In Renminbi

The dollar’s death by a thousand cuts sufferred another severe gash Tuesday as China and Chile announced the launch of a currency swap and will settle trade in Renminbi rather than dollars.
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BREAKING NEWS: Huge Worldwide Cyber Bank Raid Ongoing- Estimated €2 Billion Stolen

*Breaking Reports: Cyber Bank Raid in Progress Targeting US, UK, Euro-zone Banks*

UK’s Sky News has just reported that a huge worldwide cyber bank raid is ongoing- €60 million have been confirmed stolen through 1 server, and a total of €2 billion is estimated to have been stolen through an additional 59 servers!

Sky News is reporting that McAfee Virus has uncovered a series of financial attacks on US, UK, and Euro-zone banks with individual transfers of over €100,000 being reported.

Is this an extension of RBS’ NatWest’s complete banking system melt-down/ cash account rehypothecation, which is now in its 8th day?

Our thoughts are this is either an Iranian ‘Stuxnet’ retaliation, or a false-flag banking system lock up by the Western Central Banks themselves on which they can conveniently pin the blame for an imminent derivatives induced contagion and banking collapse. [Read more...]

SBSS 44. Future Silver Legal Tender

Dont-Tread-On.me’s Chris Duane has released Part 44 of the Silver Bullet/ Silver Shield video series:
Future Silver Legal Tender [Read more...]

Brinks’, Scotia Report Large Silver Withdrawals Tuesday

Only two silver inventory movements to report from today’s CME update, both large eligible withdrawals from Brinks’ and Scotia Mocatta.

COMEX WAREHOUSE SILVER INVENTORY UPDATE 6/26/12 [Read more...]

Jim Sinclair Takes On The Dirty Tricksters (Manipulators)

The legendary Jim Sinclair has released a missive urging those who have been the victims of manipulative naked shorting of precious metals shares to legally fight back.

Sinclair states that ‘this is a war someone capable, able and determined must fight to the end. I believe that it is my duty to take this on all out, nothing held back… I firmly believe in action on all possible fronts. We are defending an industry, the mining juniors, that really cannot defend themselves.’ [Read more...]

Ben Davies: Revolting PIIGS — a Golden Hope?

One of our favorite and most respected gold commentators, Ben Davies has released a sequel to a piece he wrote in 2011: Revolting PIIGS.  Davies discusses financial repression, the PIIGS debt crisis, and how gold relates to these issues.

From Ben Davies:

Gold has had a risk weighting of 50%, meaning an institution had to adjust its capital by 50% and then based on capital adequacy ratios mentioned below make appropriate reserve provisions. So if you had £4bn gold the institution has to provide capital as a proportion of only £2bn.  Recent developments in the US suggest that gold may actually be offered the luxury of this very same subsidy given to sovereign debt. I originally didn’t mention it because I genuinely believed it was an unlikely event that gold could be considered a risk free asset and likewise eligible as collateral, as it flies in the face of financial repression tactics; sorry surely I mean macro-prudential regulation.

Financial repression in this case refers to the coercion of the private sector to take on more sovereign debt. For example in 2009 the FSA enforced higher capital charges and take up of over £90bn of UK debt onto bank and UK based foreign bank branches.

This recent gold risk weighing development has garnered very little attention, yet it could affect a significant change in understanding and application of gold within our current money system. [Read more...]

Egan Jones Downgrades Germany to A+

Egan Jones has just downgraded GERMANY from AA- to A+!

  • Egan Jones believes Germany likely to be outvoted by other ECB members on Euro-bonds

  • Watch for EFSF & ESM to morph into banks

  • ‘We are cutting to A+’

[Read more...]

Gurdgiev On Significance of Gold Collateral to Germany’s European Redemption Fund

In the latest Keiser Report, Max talks to economist, Constantin Gurdgiev, about the significance of the gold collateral to Germany’s idea of a European Redemption Fund.

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Latest Silver Raid Takes Silver Back to $26 Handle

Live 24 hours silver chart [ Kitco Inc. ]Another day, another raid.  The latest cartel take-down has erased all of yesterday’s pop, and driven silver back below $27 again.

Nothing unexpected with options expiration this week.

On the positive side, massive buying continues to surface on any dip near $26.50.

Over the past 24 hours, the Greek Finance Minister has resigned, Cyprus requested a bailout, Moody’s downgraded 28 Spanish banks, rumors today indicate Moody’s may downgrade Spain itself to Junk status imminently…and gold and silver are pounded lower.

COUNTER-INTUITIVE!   STACK THE ARTIFICIAL SMACK!!!!
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Silver Moving into Mania Phase

SD Contributor Ich1baN discusses psychological impetuses affecting silver’s move in an upward and parabolic trend.

Silver: Moving into Mania Phase!! [Read more...]

We Are Living in a ‘Modern-Day Depression’: David Rosenberg

In this excellent interview, David Rosenberg states that most economists have misdiagnosed the current economic crisis as a double dip recession, stating “We are living in a modern-day depression”.

Rosenberg rightly points out that a record 46 million Americans are living on Food Stamps, and these electronic handouts are the only reason we don’t have bread lines like in the 1930s.

Full interview below:
[Read more...]

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Turkey, Russia, Ukraine and Kazakhstan Further Diversify Into Gold

Turkey raised its reported gold holdings by another 2% in the month of May. Turkey’s gold holding rose by 5.7 tonnes in May to total 245 tonnes, International Monetary Fund data showed, making it the latest in a string of countries to increase gold bullion reserves this year. Turkey has allowed banks to hold more of their reserves in gold to provide extra liquidity. The central bank this month raised the proportion of reserve requirements that can be held in foreign exchange to 50 percent from 45 percent, while the limit for gold was increased to 25 percent from 20 percent. The changes will add as much as $2.2 billion to gold reserves. Gold accounts for about 9.1 percent of Russia’s total reserves, 5.1 percent of Ukraine’s and 15 percent of Kazakhstan’s, according to the World Gold Council. That compares with more than 70 percent for the U.S. and Germany, the biggest bullion holders, according to Bloomberg figures. Kazakhstan plans to raise the amount of gold it holds as part of its reserves to 20 percent, Bisengaly Tadzhiyakov, deputy chairman of the country’s central bank, said earlier this month. [Read more...]

Ron Paul: Hands Off Syria! Let’s Not Fall for the Same Lies Again!

With war rhetoric against Syria ramping by the hour in the wake of Monday’s report that Libya had fired upon a Turkish search and rescue plane over Syrian airspace, Ron Paul warns Americans not to fall for the same lies again by the warmongers!

Or in the words of Dubya:  Fool me once, shame on- shame on you.  Fool me…….you can’t get fooled again.

[Read more...]