sinclairLegendary gold trader Jim Sinclair has sent an email alert to subscribers urging PM investors to stay the course, and to prepare to defend themselves against the bullion bank cartel. 
Sinclair states that gold and silver investors can beat the devil by gold and silver non violent resistanceSinclair states that simply not selling, and refusing to capitulate in the face of continued gold and silver manipulation will be enough to beat the devil known as the bullion banking cartel. 
The most experienced gold trader among the PM community urges readers to defend themselves by refusing to trade in the paper futures markets, and by not doing anything- just be right, and sit tight.

Sinclair’s full alert is below:

CNBC financial journalist Maria Baritromo interviewed Marc Faber, a contrarian Swiss investor and publisher of the Gloom Boom and Doom Report.

“You said a minute ago that markets go up and down, doesn’t gold go up and down too?” said Baritromo.  “Yes it does go up and down but I am fearful of a systemic crisis, wars and so on and it is because I am fearful that I own gold,” said Faber.

Faber then asked Baritromo if she owned any gold.  Her response was that I own earrings and jewellery. Faber relied, “Sorry to say you are in great danger because you don’t own any gold…but you have a golden personality!”

guns4cashLiberals attempted the first gun buy-back in Seattle in 20 years last weekend.  Unfortunately for the gun-control advocates and 2nd amendment haters, hilarity ensued as the gun buy-back quickly developed into a full-fledge gun show, as gun enthusiasts and collectors swarmed the buy-back line with offers to buy the guns for cash.  To the astonishment of the Seattle PD, a large portion of those turning in their guns decided they would rather receive cold hard cash for their weapons than receive token gift cards from the Seattle Police Department to turn in their guns.  Ooops. 

Schuyler Taylor, a previous gun retailer attending the event in hopes of buying weapons, asked Why not offer them cash versus a gift card? I’m still taking the guns off the streets; they’re just going in my safe.

SLIDE_GOLD_DEFAULTHint: Because it’s the Credit Default Swap of the Next Financial Crisis

Submitted by Gonzalo Lira

Credit default swaps were the insurance—the hedge—against exactly what happened in 2008: Bonds threatened to default, during the Global Financial Crisis. So the CDS’s insuring those bonds rose in valueuntil suddenly, they didn’t: CDS’s stopped rising in value just when the markets collectively realized that the counter-parties to those CDS contracts might not be able to pay up.

What if the price of gold is drifting not because the markets don’t trust the world’s reserve currencies to continue to devalue, but because the market doesn’t trust gold?

Since everyone with any sense realizes that this is the endgame of the current race to the bottom, gold ought to be rising dramatically, but that is not happening. Gold rose steady and strong from 2000 through September 2011—but since then it’s been drifting jaggedly.
So why would gold—which is an actual, physical commodity—be acting like credit default swaps did right before the 2008 crisis?
For the same reason: Gold buyers don’t trust the counter-parties selling gold.

*Fed hints at more QE as economic recovery paused due to Hurricane Sandy
*QE to continue as long as unemployment remains above 6.5%
*Federal funds rate will remain at zero-.25% as long as unemployment remains above 6.5%
*The Committee will closely monitor incoming information on economic and financial developments in coming months. If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of Treasury and agency mortgage-backed securities, and employ its other policy tools as appropriate

Full January FOMC Statement is below:

Our friend Sean from the SGTReport has released a podcast-style 30-minute uninterrupted conversation with Harley Schlanger, historian and national Spokesperson for LaRouchePAC. Harley says America has lost its sovereignty to the City of London Banks. Our currency is being debased so quickly now in order to back TRILLIONS in derivatives exposure that hyperinflation could begin at any moment. Harley is calling for cutting off the shadow banking system from any more government-sponsored bailouts, and he says Obama MUST BE impeached if the United States is to survive. Once this is done, a return to a gold and silver backed credit based system will help restore our nation’s economic backbone.

Swiss banks, UBS and Credit Suisse, have moved to offer allocated gold and silver accounts to their clients – including high net worth, hedge funds, other banks and institutions.  The move allows these entities to take direct ownership of their bullion in allocated accounts. According to the Financial Times, the banks say that they are making the move in order to reduce exposure and risks on balance sheets and in an effort to be more transparent.  “Under more common “unallocated” gold accounts, depositors’ bullion appears on the banks’ balance sheets, forcing them to increase their capital reserves. Like their global peers, UBS and Credit Suisse are under pressure from regulators to reduce capital-intensive activities ahead of the introduction of new Basel III global banking rules.” It is more likely that the banks made the move to allocated storage due to an increased preference from their investors who are weary of continuing systemic risk.

goldAfter consolidating around $31.40 and $1665 throughout the overnight Asian and London sessions, both gold and silver have just made significant vertical moves to the upside on the COMEX open, ahead of this afternoon’s Fed announcement at 2:15pm EST.
Silver has made an .80 vertical move to the upside to $31.98, and gold added $20 to $1681, where it has paused at an exactly 1% gain, a typical capping level for the cartel. 

With allocated/rationed silver eagle sales beginning again on Monday 1/28, the US Mint reported another 300,000 silver eagles sold Tuesday, nearly 1.5 million since production was restarted Monday, and increased January’s all-time monthly sales record to an astonishing 7.42 million silver eagles, 53 times the volume of gold purchased from the US Mint in January!

BernankeSubmitted by Stewart Thomson:

Quantitative easing and “rates to zero” policy is spreading to every major economy around the world.  Horrifically, despite these enormous “fire hoses of liquidity”, gold stocks continue their unending slide.   By this point in the gold “super bull” market, most gold stock investors believed they would be wearing a crown of solid gold.
The market never ceases being a fight, and in a super-crisis, the fight becomes a “clash of the titans”.  Gold stock investors have never faced a greater challenge than they face right now, but neither have the bears.

The biggest weapon held by gold stock bulls, is the central bank of the United States, and over the next two days, the bank’s open market committee engages in key policy discussions.  The meeting culminates with the release of a statement to the public, at 2:15PM, New York time, on Wednesday.  For all practical intents and purposes, the primary driver of the gold price is the balance sheet of the central bank of the United States.

kamikazeIn the latest Keiser Report, Max Keiser and Stacy Herbert discuss Japan where the latest source of monetary inspiration is Korekiyo Takahasi, described by Ben Bernanke as the man who “brilliantly rescued” his country from the Great Depression of the 1930’s, while neglecting to mention that Takahasi was then assassinated by the army, who were angered by cuts to their wages. They also discuss the biggest Aso in Japan, finance minister Taro Aso, suggesting old people just ‘hurry up and die’ in order to save money for government. In the second half of the show, Max Keiser talks to former MI5 agent turned whistleblower, Annie Machon, about the global crackdown on the internet and the activists who live there.


As I have written in these pages before, I expect silver prices to outperform gold prices in the years ahead. That opinion hasn’t changed.

As gold prices started their flight upwards back in 2002, silver prices followed a similar pattern. Below is a price chart of monthly silver prices since 2001—when gold was trading just below $300.00 an ounce.

US regulators are reportedly pushing for criminal charges to be filed against Royal Bank of Scotland employees over LIBOR manipulation. Perhaps they should consider investigating and filing criminal charges themselves against any and all JPMorgan and BOA employees who participated in LIBOR rate fixing, as BOA and JPM’s submitted LIBOR rates were massively more extreme compared to the benchmark than Barclay’s over the same time period.

United States regulators seeking a settlement with Royal Bank of Scotland over alleged Libor manipulation want the bank to plead guilty to criminal charges in addition to paying a penalty, the Wall Street Journal reported.

imagesBill Murphy Founder of GATA sat down with Bridgitte Anderson during the Cambridge House Vancouver Resource Investment Conference.

Murphy stated that the waterfall gold and silver smashes on the COMEX open that SD readers are familiar with are terrorist attacks on the price of gold and silver!   Murphy states that the cartel’s financial market terrorism causes people to be right on a fundamental trade one moment, and the next moment to lose a fortune!

Murphy also stated that JP Morgan is hitting the wall with regards to silver supplies, and that gold and silver prices are set to explode, with silver setting all-time highs in 2013, and streaking towards $100 by the end of the year!

Murphy’s full MUST WATCH interview is below:

USMintThe US Mint restarted Silver Eagle sales via allocation/ rationing Monday, and has just updated their month-t0-date sales totals.
Despite 2 production shutdowns in January, the US Mint has sold a record breaking 7.13 million Silver Eagles in only 10 business days in January, shattering the previous monthly record set in 2011!

bubblesSubmitted by GE Christenson,

Bubbles start slowly and then accelerate to unsustainable highs (on large volume) that are largely created by greed and fear but not fundamental evaluations. Bubbles generally follow the “Pareto Principle” where approximately 80% of the price move occurs in the LAST 20% of the time.
Assuming the 80/20 “rule” and the phase 2 price change ratio of approximately 5, what could happen if gold and silver rise into another speculative bubble?

Silver began its uptrend in November 2001 at $4.01 and gold began its move in April 2001 at $255. Silver rallied to nearly $50 in 2011, and gold also rallied to a new high of about $1,900 in 2011. Assume that both surpass those highs about mid-2013 and accelerate into phase 2 thereafter. Using these assumptions, phase 1 for silver would measure 12.5 years and phase 2 could last until approximately late 2016 – early 2017. If we assume that phase 1 was a move from $4 to $50 and that represents 19% of the total move, the high could be around $250. The ratio of phase 2 ending price to beginning price would be 5:1 – reasonable.

Indications for gold suggest a similar end date and a phase 2 bubble price of perhaps $9,000 per ounce. The ratio of phase 2 ending price to beginning price would be 4.7:1 at $9,000.


Bernanke DimonWHOLESALE Gold Bullion prices climbed back above $1660 an ounce Tuesday morning, broadly in line with where they ended last week, as stocks and commodities fell slightly and the Dollar ticked higher against the Euro ahead of tomorrow’s interest rate decision from the US Federal Reserve.
“We are seeing a technical rebound following a few days of price decline,” one trader in Shanghai told newswire Reuters this morning.  “In the short run, gold is still going to drift without much conviction, though over the longer term it is still facing very heavy pressure on the upside.”  Like gold, silver regained some ground this morning after losses in recent days, climbing back above $31 an ounce.

In the US, the Federal Open Market Committee begins its two-day meeting today ahead of the Fed’s latest policy decision tomorrow.  “This week’s FOMC meeting and US non-farm payrolls [on Friday] will be key in setting gold’s price trajectory,” says a note from Barclays Capital.

gold bank runSD contributor AGXIIK warned readers months ago about the FDIC’s expanded deposit insurance which was set to expire Dec 31st, predicting that the expiring expanded deposit insurance enacted in the wake of the 2008 financial panic could trigger a bank run. 
Many scoffed at the report and its implications, due to the fact that the story received zero attention by the likes of Bloomberg, CNBC, or even ZH.

It appears that the expiring expanded FDIC insurance has in fact triggered a massive deposit withdrawal at the nation’s largest banks, as the Fed is reporting that $114 billion were withdrawn from the largest 25 US banks over the first week of January, the largest fund outflow since the 9/11 attacks, even exceeding the pace of the outflow during the 2008 financial panic!

The Financial Times has said that the Bundesbank’s move to repatriate 674 tonnes of the German gold reserves from Paris and New York to Frankfurt is a victory for openness, transparency and for those who have campaigned for transparency in the gold market for years.

The FT said that the move is important –

“not for what it says about Germany’s faith in French or American vaults; nor for the cost of shifting 674 tonnes of gold; but because it is a major victory for transparency in the gold market.”

In the latest episode of the Keiser Report, Max Keiser and Stacy Herbert discuss the American legal system that authorizes plunder, a moral code that glorifies it and a financial system that profits from it. In the second half of the show, Max Keiser talks to Professor Steven A. Ramirez, a former Enforcement Attorney at the US Securities and Exchange Commission, about the broken social contract, when that contract got broken and how to mend it.