Yra HarrisLegendary trader Yra Harris (often quoted by Jim Sinclair) says, “The currency wars are real, and the game is on.” Harris says the global currency war is what helped Volkswagen gain market share in the last few years. So, what is Japan doing? It is cutting the value of its currency so Toyota will gain market share.

The currency war is also what’s been driving gold higher. Harris says, “Is gold in a bull market? Absolutely. Is gold a tired bull for the moment? Absolutely. . . . I think you’d be crazy to sell because there are so many variables of uncertainty.” Harris goes on to predict, “What do I think is the most explosive event for gold? It is the day Draghi (President of the ECB) can no longer jawbone quantitative easing. He actually has to step up to the plate.” Harris is counting on the Fed to continue to pump out dollars. He says, “I can go to sleep at night and know one thing–the Fed will not allow deflation.” The reason is simple, according to Harris, “We live on debt in this society. Debt based societies cannot absorb a deflationary spiral.” Join Greg Hunter as he goes One-on-One with analyst and trader Yra Harris.

According to the World Gold Council’s Q4 2012 report issued today, Global gold demand in Q4 2012 reached 1,195.9 tonnes, up 4% from Q4 2011. In value terms gold demand for the quarter was 6% higher year-on-year at $66.2bn marking the highest ever Q4 total and driving annual demand in 2012 to a record value of US$236.4bn.

• Whilst Indian full year demand was down 12% on the previous year, the market performed strongly in the final quarter with total demand at 261.9t, an increase of 41% on the same period last year.
• Chinese demand was flat year-on–year, reflecting the impact of economic slowdown. However looking at Q4, total demand was up 1% on the previous quarter to 202.5t. Jewellery demand was137.0t up 1% on Q4 2011 and investment demand was 65.5t, up 2% on the previous year.
• Central bank buying for the full year rose by 17% compared to 2011, totaling 534.6t, the highest level since 1964. Central bank purchases stood at 145.0t in Q4, up 29% on the corresponding quarter in the previous year, making this the eighth consecutive quarter in which central banks have been net purchasers of gold.

Ron Paul was on Bloomberg’s Lunch Money discussing the developing currency wars.  Paul states that the currency wars have been ongoing for decades, but they are now gearing up, but that government’s always compete to devalue their fiat currencies.

Paul informs the Bloomberg host that the loss in purchasing power from currency devaluation in a currency war devastates the middle class, and cancels out any slight benefit that you might be getting temporarily in terms of trade.

Paul also states that one day soon people around the world will reject all fiat currencies, and we will move into an age where people want to buy hard assets, and that this has already started with real estate, gold, & silver

Paul’s full interview on the coming economic collapse is below:

Chaz Obama

Image: AP

In 2012, a unified, co-ordinated effort among Americans (including numerous large corporations) successfully fought off the draconian CISPA legislation. 
Der Führer has just taken matters into his own hands, signing an Executive Order titled Improving Critical Infrastructure Cybersecurity.

As if anyone didn’t see this coming- the agency charged by Obama with regulating the security of critical infrastructure: The DHS.

Coming soon to a laptop or desktop in your office/den: body cavity searches and full body scans.

Full executive order is below:

stare bastards in the eye SinclairWith sentiment among the precious metals community remaining downright terrible (to see just how bearish the current sentiment is, peruse the reader comments on today’s silver chart of the day) legendary gold trader Jim Sinclair continued his efforts tonight to convince PM investors to sit tight and be right.
Sinclair again informs readers that the gold boys (bullion bankers) will soon flip their naked short positions net long, propelling gold to $3,500 an ounces (Doc’s note: and silver likely to $90).

Sinclair states that legendary 10+ baggers will be seen in the mining shares sector, and that precious metals investors must stare the bastards in the eye and defend themselves- by simply being right and sitting tight.

For the first time ever, the legendary gold trader has advised metals investors to go ALL-IN on further price weakness!

Sinclair: Stare the Bastards in the Eye and Defend Yourself!

platinumAs most of our readers are aware, our friends at Sprott Asset Management recently launched physical platinum and palladium bullion trusts out of expectations that the metals will see substantial gains over the next decade over major supply issues.

With both platinum & palladium soaring over the past few weeks, Sprott has released a MUST READ summary of the platinum and palladium markets (Sprott compares both metals to the uranium market in 2003), and why they believe the physical metal will outperform the mining companies.

Despite being long-time precious metals enthusiasts and active investors in gold and silver, we did not focus on “the other precious metals”, platinum or palladium, until very recently. Our interest in the space was ignited by a client’s request to assess investment opportunities in the debt and equity of Platinum Group Metal (PGM) mining companies – an exercise that came up almost completely dry. As long-time resource equity investors, we are familiar with the mining industry’s supply/demand cyclicality and the impact it has on commodity prices. Looking more closely at the PGM miners, the platinum and palladium industry reminds us of the uranium industry back in 2003. Like uranium, platinum and palladium are crucial to a number of important industrial applications where demand for them is relatively inelastic to price. And like uranium in 2003, palladium is also marked by an opaque, but rapidly diminishing foreign supply stockpile, which had previously balanced out the market and effectively capped the price.

Mark Dice, the man who unsuccessfully attempted to sell a Gold Maple for $25, and last week unsuccessfully attempted to give away a Gold Maple to anyone who could tell him the spot price of gold +/- 25% is back, this time standing in front of an Encinitas, California Coin Shop, attempting to sell US Silver Eagles for .99. 

After repeatedly offering to sell Silver Eagles for .99 over spot in any quantity (even offering to have the Coin Shop verify the coin’s authenticity), Dice fails once again to entice a single American to trade a $1 Federal Reserve note for an ounce of .999 silver.  
Notice we said a single American, as for the first time in any of Dice’s video’s, someone finally takes him up on his offer of (nearly) free phyzz.
The supreme irony?  The man who takes Dice up on his offer (much to his chagrin) is a European tourist.

The unbelievable full clip is below:

By SD Contributor AGXIIK:

The trade between Japan and Europe and China and Europe will be hit very hard when Europe can’t afford goods from China and Japan.  The east will suffer badly as devaluations won’t overcome the recessions and depressions in Europe.

These are real and dangerous tipping points that won’t hold back very long. The people in Italy, Greece and Spain are near the breaking point.  I doubt if the Fed will have enough money to bail out Europe when Benny is spending all his political capital in bailing out the US, although I would not be surprised if the Fed doesn’t give it a try, nonetheless.   
If we thought 2012 was the year of the epic failure, it may have been just a warmup act to 2013.

imagesIf you live in the city of Houston, TX and are selling physical gold or silver, you are now officially considered a criminal until proven otherwise, as Houston’s City Council has passed an ordinance requiring anyone selling gold or silver to be fingerprinted and photographed, as well as requiring photographs be taken of all items being sold precious metals dealers.

Misplaced laws restricting the sale and acquisition are not about deterring crime as government officials would have their citizens believe, but are about ostrasizing and restricting the use of precious metals as a wealth preservation asset.

silver waveSubmitted by Stewart Thomson:

Too much money printing can cause a currency panic.  That would be followed by institutions pulling out of the country altogether.
The reason I want own to gold is because governments are attempting to print their stock markets higher.  Gold and resource stocks will drastically outperform the global stock market indexes like the Dow and the Nikkei.

The period of drastic out-performance should have come earlier, but it didn’t, due to the implosion of Lehman.  Gold and gold stocks were beginning to go parabolic in 2008While the Lehman event delayed the parabolic move, it also made the crisis bigger, and probably greatly increased the size of the ultimate move.

On the daily chart, bonds are the most oversold, and gold is close behind.  Don’t worry, silver is in very good hands, and soon the “wild one” will be oversold too, and ready to surf the rising Fed balance sheet, to higher prices!

Platinum and palladium surged Tuesday on renewed concerns that supplies of the platinum group metals will shrink. Zimbabwe’s government has given platinum producers two years to begin refining the precious metals in Zimbabwe. This means that production of platinum will drop, because mining companies are now expected to build refineries – something which they may not do, due to the real risk of confiscation and nationalisation of assets. Both metals climbed more than 1% yesterday with platinum for April delivery rising $21.10 to settle at $1,717.2/oz. Palladium for March delivery rose $12.80 to $771.40/oz. “The worry is that it’s going to restrict production,” said James Steel, chief commodities analyst at HSBC in New York. “That was the prime motivator for the price movement today.”

hyperinflationSubmitted by SD reader BH

Venezuela devalued their currency the Bolivar by nearly 50% on Friday and it now looks like Egypt will be next.  The Venezuelan devaluation is merely a small chapter in the current global currency war.
The story in the Financial Times is headlined “Venezuelan devaluation sparks panic“.  I read the article and was surprised at the content because when I read the headline I was fooled.  OF COURSE the Venezuelans are in a panic, they just lost nearly 50% of their purchasing power over one evening!!  The “panic” that I thought would have been written about was “who’s next?”.