In what is no doubt a propaganda piece designed to attempt to slow the gold repatriation and audit request freight train, the Bank of England has taken the unprecedented step to allow University of Nottingham chemistry Professor Martyn Poliakoff to take a video tour of the BOE’s gold vault.
Poliakoff excitedly proclaims that he has never seen this much tungsten gold (or this much of ANY element he clarifies), and states that his gut tells him that one’s first reaction is that it can’t possibly be real.
Poliakoff lets out a little too much truth in his interview (perhaps the BOE should have commissioned someone from the BBC to conduct the interview rather than a Chemistry professor?), stating that the reason the BOE and the central banks keep so much of their reserves in gold is because the value of gold is very stable compared to the value of currencies.
He also explains how the futures market really works:  Each bar has a serial number, and when people buy and trade the gold, they don’t actually take the bar home, the number is just transferred from the seller’s account to the buyer’s account. (What Poliakoff doesn’t mention is whether each bar has been rehypothecated to numerous owners as Ned Naylor-Leyland discovered was the case with Bob Pisani’s GLD bar last spring)

Poliakoff’s MUST SEE full video tour of the Bank of England’s gold vault is below:

After being knocked down on tonight’s Globex electronic session, gold and silver have made vertical moves to the upside on Monday’s Asian open, as the Asian market scoops up the cartel discount in gold and silver in the wake of Friday’s NFP beat-down.

Silver is up .30 to $33.37, and gold has moved nearly $10 off $1700 to $1710.  The week is getting off to an explosive start, and should provide plenty of excitement and upside for gold and silver with the FOMC statement due Wedneday. 

Submitted by Marshall Swing:

Gold & Silver COT Report 12/9/12

In silver, commercials unloaded 4,115 longs on the week and 2,393 shorts to end the week with 47.74% of all open interest, an  increase of 0.69% in their share since last week, and now stand as a group at 292,570,000 ounces net short, which is an increase of just over 8,600,000 net short ounces from the previous week

‘Madness 3: Addendum’ features more information from my original interviews that for whatever crazy reason hit the cutting room floor and didn’t make it into ‘The Madness of a Lost Society 3′, but should have. Jeff Nielson, Chris Duane, The Doc, Bix Weir, Fabian Calvo, and Daniel Ameduri, provide a body blow for those who still don’t believe that we are living in the final days of the Dollar as the world’s reserve currency.

Submitted by Deepcaster:

“With an inevitable day of reckoning, the U.S. financial and banking systems came literally to the brink of collapse in September 2008. To prevent the unthinkable, the Federal Reserve and the U.S. government created, spent, loaned, guaranteed, and gave away whatever money was necessary, and otherwise bailed out or acquired a number of failing large corporations

“Those actions forestalled a systemic collapse, but they did not resolve the fundamental underlying difficulties. Contrary to official GDP reporting, there has been no subsequent economic recovery.
The ultimate costs for saving the system in 2008 and beyond, comes down to inflation, which will be reflected eventually in the complete debasement of the U.S. dollar. Accordingly, actions taken during the crisis-containment of 2008, and later, brought the outside timing for the hyperinflation forecast of 2018, into 2014.
“…the U.S. dollar, as we know it, is not likely to survive until the next congressional election in 2014.

The Doc sat down with’s Chris Duane Monday to discuss the recent explosion in gold purchases, his outlook on silver, and the launch of the 2nd coin in the Silver Bullet Silver Shield series, the Trivium Medallion.

Duane states that while the big money appears to be finally waking up to the incoming tsunami of fiat devaluation, the smart money is going to silverDuane expects silver to massively outperform gold throughout the duration of the bull market, easily surpass the current in ground ratio 9-1, and potentially reach 1:1 parity with gold prior to the end of the secular bull.

Full MUST LISTEN Silver interview below:


We double down on the most destructive form of financial ineptitude with wild fire printing of FIAT currency, hollowing out our economy while exporting inflation to nearly every country.  China wisely doubles down and  doubles down again Real Money.   After the Western powers, aided by gold stealing allies like Japan, made off with well over 100,000 tons of gold China accumulated over the last 3,000 year, they are not going to let this happen again. 

Submitted by Morris Hubbartt:

The dollar’s failure is probably being masked by a gold market that feels a bit like it is “under attack”. The line in the sand that I have set for the dollar is 80.50It has closed under that key price numerous times, which indicates technical deterioration.
This “Cork In The Sea” weekly chart highlights a massive symmetrical triangle formation, with a horrific final price objective of about 50 for the USDX.   Where would gold trade if the dollar were to suffer such a catastrophic decline?  I believe it would trade above $4000 an ounce.

By SD Contributor SRSrocco:

As most of you know, there isn’t a shortage of precious metal analysis on the internet.  Everyone has their opinion.  Yes, even I.  However, there is a way to understand which analysis is the most accurate.

Of all the precious metal analysts I have come across, no one has yet presented any information on actual data of declining silver ore grades So… how in the living hell can any precious metal analyst really make a correct forecast if they don’t have the ROOT FUNDAMENTAL DATA???

To be able to find out which analysis offers the most accuracy, it must get to the root of the problem.  Unfortunately, most analysts do not try to get to the root of the problem, instead they use data taken from other sources and make their predictions and forecasts based on this spoon fed data.


With the official bogus unemployment number now at 7.7%, CNSNews has discovered that a full 73% of the new jobs created over the past 5 months are government jobs. This means that rather than benefiting the economy, nearly all the jobs supposedly created over the 2nd half of 2012 are in fact draining the REAL productive economy further.
QE to Infinity…AND BEYOND!!!

( – Seventy-three percent of the new civilian jobs created in the United States over the last five months are in government, according to official data published by the Bureau of Labor Statistics.

China’s Ministry of Industry and Information Technology has estimated that Chinese ANNUAL domestic gold demand will surpass 1,000 tons by the end of 2015.  Yes, you read that correctly.  China’s ANNUAL gold consumption is set to double in 3 years, to a pace that will see Chinese consume more gold annually that the total gold reserves of all but 6 nations in the world!

China’s Ministry of Industry and Information Technology announced that it expected Gold consumption in the country would be running at more than double national gold production by the end of 2015, more than double Chinese gold consumption forecast for 2012.

According to the MIIT statement, domestic demand is set to surpass 1000 tons by the end of 2015. It said this would ‘widen the fundamental market shortage’ and noted that the shortage of supply will persist in the coming few years as domestic gold supply ‘might only reach 450 tons by that time.

 South Korea’s Central Bank announced Wednesday that the Eastern nation purchased 14 tonnes of gold in November, matching the entire amount of physical gold reserves the nation held prior to June of 2011.   S. Korea has now increased its gold reserves 6 fold since last June to 84.4 tons!

* Bank of Korea increases gold reserves to 84.4 tonnes
* Gold holdings at 1.2 pct of total foreign reserves, up
from 0.9 pct

UBS and Nomura have suggested that gold could rise next week as the Federal Reserve may announce further easing at the FOMC meeting – on Tuesday (11/12/12) and Wednesday (12/12/12). Nomura said it is worth considering whether the FOMC will announce further easing to replace so called ‘Operation Twist’. The research house noted that gold remains at the same level as during the October meeting, which suggests gold has not yet priced in any move by the FOMC – creating an opportunity for gold bullion buyers. Regardless of whether the FOMC actually eases at this point – Nomura thinks there is a non-negligible probability – gold is likely to rise. Therefore, Nomura expects gold to rise and prices in this probability as the December meeting approaches, just as gold rose when the September meeting was approaching.