Today’s chart of the day examines the latest data from the World Gold Council and Deutsche Bank regarding global asset allocations across all asset classes.  11 years into their secular bull runs, gold registers at a measly 1% of global asset allocations (and this 1% is mainly paper gold such as ETF’s, unallocated accounts, and mining shares), and silver fails to even register on the chart.

When the current bull market in gold and silver finally reaches the public involvement stage, imagine the prices required to allow even a conservative 5-10% global allocation, much less match historical tops near 20-30%.


Unconventional Finance has released another interview with GATA’s Bill Murphy discussing JP Morgan’s alleged manipulation of the silver market.  Murphy states that JP Morgan’s manipulation of the silver market will soon be revealed, and states that the JPM silver scandal will be larger than LIEBORGATE and may likely result in the implosion of JP Morgan Chase.

Full interview below:

Gold edged down on a Monday as speculators took their profits as prices rallied on thin volumes on Friday to their highest in a month on technical buying.  A strong fall in the greenback triggered rapid gains in commodities and options-related buying on Friday. Tonight US Congress will meet to attempt to devise a plan to avert the US fiscal cliff which will throw the US into a spiral of tax hikes and budgetary cuts that will lead the US economy deeper into a recession this January. Another short term ‘resolution’ will almost certainly be achieved which will allow the US to keep spending like a broke drunken sailor and which will again store up far greater fiscal and monetary problems. The scale of these deep rooted structural challenges is so great that they are likely to affect the US sooner rather than later. Global investment demand for gold remains robust with the amount in exchange-traded products backed by the metal rising 0.1% to 2,606.3 metric tons.

The legendary Jim Sinclair, who yesterday advised subscribers that gold will not be confiscated in this bull market as its current function is vastly different in today’s monetary system than its role in the 1930’s, sent another alert to subscribers today clarifying that although he believes gold will not be confiscated by the government during the current bull run, GUNS WILL BE

Sinclair states that the Constitutionally protected state right to create and maintain a state defense force is under the cross-hairs of the Obama administration, and that The moment you see these state defense forces under the control of the state governor disbanded, the end has come. The Constitution will no longer exist and the next day I will be writing you from Buckreef in Tanzania.

Sinclair’s full Alert/Warning of the impending gun confiscation by the Obama administration is below:

Bloomberg’s Lunch Money segment featured an interview with McEwen Mining CEO Rob McEwen discussing his outlook on the gold and silver markets.
McEwen points out that the dollar has lost 85% of its purchasing power in the last 11 years in terms of gold.   When questioned regarding his price outlook, McEwen stated that over the medium term, gold is headed to $2,000 certainly next year, and that silver will test $50 again when gold reaches $2,000.
For his long term outlook, McEwen states that gold is headed to $5,000 and silver to $200 in the next 4 years
(we agree with McEwen on that timeline, as would the legendary Jim Sinclair).

McEwen states that its getting harder to find and mine gold and silver, mainly due to government risk of more regulations, and higher taxes. As does SD’s own SRSrocco, McEwen also points out that ore grades are declining, and that many mining projects are not coming on as advertised, and will be curtailed, greatly decreasing the supply for gold and silver in the coming years.

Full MUST WATCH interview below:

In the latest Keiser Report, Max discusses the bell ringing for the bond market top as one of the biggest private equity funds in the world is seeking ‘ordinary’ investors to assume their long term interest rate risk. In the second half, Max Keiser talks to Ian Williams of Charteris Treasury Portfolio Managers about his forecast for silver prices to rise five fold in the next 3 three years while US Treasury bonds and UK gilts will face collapse. Ian Williams also suggests that it is commercial banks rather than central banks that will return us to a new style of gold standard.

Submitted by Morris Hubbartt:

My technical analysis indicates that a major long term bottom is in place, across the entire precious metals sector.  The intermediate term gold target is $2015, but gold could move even higher before correcting significantly.   When daily CCI spikes lower, as it did recently, followed by RSI touching the 30 level, a trending move higher is very likely.    The short term target is $1850, and it could be acquired quickly.

Fundamental and technical analysis suggests higher gold stock prices are coming. What is most compelling about gold stocks is the undervaluation of the sector against gold itself.   GDX is currently as cheap as it was during the meltdown of 2008.   There is a substantial head & shoulders pattern in play now.   I am projecting that gold stocks will rise to about .44 on this ratio chart, which is almost a 50% gain from the current price.

At SD we have long emphasized to concerned gold and silver investors that government confiscation is not a legitimate risk as the metals reach full valuation at the end of the secular bull run. 
The legendary Jim Sinclair sent an email alert to subscribers this morning regarding perceived gold confiscation risks among his readers.

Sinclair stated that  There was much to be gained by gold confiscation in the 1930s because we were on a gold standard.. Gold in the 1930s was the only instruments of QE. It is not now nor will it be again in the future.  There is no reason except some sort of fear of revenge to consider confiscation of gold, gold shares or the gold ETFs now. Those that worry so much about this do not really understand what gold was under a gold standard.

Sinclair’s full MUST READ alert below: has released an excellent interview with GATA’s Bill Murphy and Jeff Nielson. Bill covers the PHYSICAL metal pouring out of Europe on its way to Asia while the U.S. government EXPORTS hundreds of millions of ounces of PHYSICAL metal to the UK in an effort to fill the LBMA’s rapidly emptying shelves. We also talk with Jeff Nielson about his incredible 3-part article ‘Silver’s Smoking Guns’.

Yahoo Finance has released an interview with Jim Rickards discussing QE∞.  Rickards states that the Fed will continue printing until the bottom falls out of the dollar, and at that point, the chickens will come home to roost, and US citizens can expect MASSIVE INFLATION OVERNIGHT.

Full interview below:

Asset manager Nick Barisheff says, “There’s never been a fiat currency in history that didn’t end in hyperinflation and complete collapse.” Barisheff thinks that Treasury Secretary Tim Geithner’s most recent call to have an “unlimited debt ceiling” for the U.S. was “just telling the truth.” That’s essentially what we have now with “open-ended” money printing by the Fed. Barisheff adds, “All it’s doing is postponing a problem . . . it makes it bigger and eventually it blows up.” Forget about remedies for the economy, it’s too late. Barisheff says, “We’ve passed the point of this getting fixed.” Barisheff thinks if the Fed’s gold holdings are ever audited, there will be a “gigantic short-covering rally . . . multiple bankruptcies . . . and a massive loss of confidence” in the dollar because much of the gold is gone or leased out. Barisheff thinks the gold price could be “easily double” right now. That’s because Barisheff believes, “What’s kept the price down is the artificial leased gold going onto the markets.” Join Greg Hunter as he goes One-on-One with Nick Barisheff, CEO of the $650 million Bullion Management Group.

Black Friday brings out the worst in the American sheople annually as they routinely stampede and riot (reports this morning in Texas of a gun being pulled over a line cutter at Sears) over things such as the IPad9 and the Samsung Galaxy 16 (wait, that’s next year).  Not surprisingly, the clips of this year’s atrocious behavior by the consumer Walmart mobs are already flowing in. 

Our one question: What do you think this group of Americans’ (or similar crowds at any other Walmart across the country) riots will look like in the wake of a dollar collapse, when it is the last 3 loaves of bread being fought over?

For a preview of how a SHTF scenario will play out across Walmarts all over the US, watch the footage below:

Brazil’s aggressive efforts to weaken its currency by buying dollars – about $132 billion since the beginning of 2008 – have left the country with the sixth biggest international reserves in the world, about 80% of which is denominated in the US currency. However, recent turmoil in currency markets and concerns over the global financial crisis and fiat currencies in general has given Brazil’s authorities even more reason to diversify their holdings.  It has frequently stated its intention to diversify assets and reduce its exposure to currency risk. Recent sharp weakness in Brazil’s real (see table) and systemic risks are leading central banks, including the BCB to diversify into gold. Brazil raised its gold holdings by 17.2 tonnes in October to 52.5 tonnes, the highest level since January 2001. The move comes on the back of Brazil’s 1.7 tonne increase in September, the country’s first significant gold purchase in a decade. However, there are concerns that the increase in the Brazilian central bank gold holdings’ and tonnage are not all that they seem.  It appears that the central bank in Brazil has not actually bought London Good Delivery bullion bars but rather fixed term gold deposits with bullion banks. Recently, the Brazilian central bank was asked about their gold reserves and about a section on gold on their website under ‘Official Reserve Assets’ lists gold as “gold (including gold deposit and, if appropriate, gold swapped)” with a footnote of “Includes available stock of financial gold plus time deposits.”

By Jim

The battle is on for delivery and verification for official gold accounts
-Evidence grows that much of it is gone, and when demanded, replaced with urgency
-It is soon to transform into a global gold war
-The German Govt gold demand to the London and NY City bankers represents a big escalation in the gold war
-The central bank coordinated QE to Infinity has brought questions of gold account location and integrity
-The Allocated Gold Account scandal is a natural event to follow the LIBOR banker scandal
-QE3 will assure a gold rise past the $2000 mark, but the new scandal will take the gold price to $5000
-The powerful gold factors are aligned and in place, led by permanent ZIRP and unlimited QE

The Austrian central bank keeps most of its 280 metric tons of gold reserves in the United Kingdom, Vice Governor Wolfgang Duchatczek was quoted as saying in the finance committee of the country’s parliament today, according to Bloomberg. Answering lawmakers’ questions, Duchatczek said 80%, or 224.4 metric tons of the metal was stored in the U.K., 17% or 48.7 metric tons in Austria and 3% in Switzerland, according to a summary of a closed-door committee meeting provided by the parliament. The reserve has been unchanged since 2007, Duchatczek was quoted as saying. The central bank has earned 300 million euros ($385 million) over the last ten years by lending the gold, he said.

Calls for Germany to repatriate its 1,536 tons of gold reserves held at the NY Fed are intensifying as Der Spiegel reports the Federal Reserve has refused to allow German inspectors to even view the country’s massive gold reservesin the interest of security and of the control process“.

We have stated repeatedly that with repatriation and/or audit requests completed or in progress by Venezuela, Germany, Switzerland, and the Netherlands, The BOE and the Fed suddenly find themselves in a heap of trouble as the situation (and confidence that the Central banks actually still hold the tungsten gold reserves on deposit) is rapidly deteriorating. 
More on the Fed’s non-compliance with German requests to view/inspect their own gold below.

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