Submitted by Stewart Thomson:

 The round number support of $1700 in gold failed Tuesday.  Technical traders often place a lot of stop-losses and short sale orders just below such uptrend lines, and that can bring substantial volatility to the market.  While stronger hands in the gold community are buyers of such breakdowns, it is often not enough to overwhelm the technical sellers, many of whom are leveraged.  Also, while the larger commercial traders tend to be buyers of trend line breaks, they often place less bids than the amount of gold offered by traders who are panicking or facing margin calls.
Their reluctance to bid for all the gold that is offered can produce even lower prices.  Many central banks have active gold buy programs that provide support to the market, and it often comes just when it seems that gold will never stop decliningI believe that gold is coiling here, and it will soon surge through $1800.

Bloomberg has released an excellent interview with one of our favorite market commentators (and perhaps the harshest and most vocal critic of the Fed outside of Ron Paul), Jim Grant.

Grant eloquently informed Bloomberg that there are no markets anymore, only interventions:
There is a systematic manipulation of values carried out by our central banks world over.  They sit on money market interest rates, they muscle around the yield curve, and they levitate asset prices on the theory that higher stock and corporate bond prices will make us happier and more inclined to spend.

When Bloomberg’s blonde responded by asking, What’s the harm? Grant responded:
We haven’t got enough time to go through every item of harm.

Grant does go on to inform the Bloomberg hosts what he expects as a result of market manipulation/intervention to infinity by the Western Central Banks:  I am expectant that these massive and unprecedented central bank musclings and interventions are going to backfire in the shape of inflation and higher interest rates. 

Grant’s Full MUST WATCH interview below:

When we first objected to the SS TSA’s unconstitutional searches at airports when they were instituted several years ago, many informed us that if we did not like gestapo’s actions, we could simply choose not to fly.  Our response?:  What will you do when the TSA installs checkpoints and searches in every bus, subway, train station, as well as checkpoints along each state border and on highways?  Simply choose to remain confined in your suburban prison cell 24/7/365?

Those who believed the TSA’s actions were about security of airlines were gravely mistaken, and our predictions appear to be fulfilling themselves, as the TSA is reportedly seeking permission from the Office of Management and Budget to begin conducting “security assessments” on highways as well as at 140 other public transportation hubs, including bus depots and train stations.

In the latest Keiser Report, Max Keiser talks to our friend Ned Naylor-Leyland of Cheviot Asset Management about the fishy smoke signals blowing at the LBMA regarding silver contracts and about the debate between inflation, deflation, hyperinflation actually being a debate about the final denouement of paper currencies. Ned also reveals that the LBMA is about ten times larger than the Comex and that BBC’s flagship program, Panorama, had interviewed him and Andrew Maguire about silver manipulation and yet have never aired the episode.

Full interview below:

Submitted by SD Contributor Marshall Swing:

Gold & Silver COT Report 11/30/12

Commercials declined 894 longs on the week and increased 712 shorts to end the week with 47.05% of all open interest, a small decrease of -0.18% in their share since last week, and now stand as a group at 283,960,000 ounces net short in silver, which is an increase of just over 8,000,000 net short ounces from the previous week

The cartel has successfully stuffed gold back under $1700, and silver under $33 on this morning’s COMEX open.

Silver is down over a dollar to $32.71, and gold was smashed $25 to $1690 It remains increasingly evident just how crucial $1730-$1750 is to gold, as once this level is taken out again to the upside, gold will pop back to its September high of $1800, and through there, will quickly move back to its all-time nominal highs near $1920 placed in August 2011 in the wake of the US downgrade.
With QE4 appearing set for next week, and a further debt downgrade likely in the coming months, gold and silver look poised to explode to the upside.

Gold vs. Berkshire

Warren Buffett’s General Re-New England Asset Management has warned that until central bank monetary policies around the world change “there will be a tendency to higher gold prices.”  General Re-New England Asset Management, a unit of Warren Buffett’s Berkshire Hathaway Inc., said gold may advance as businesses temper spending and central- bank stimulus measures fall short. Gold’s climb last year to more than $1,900 an ounce was fuelled by the expectation that government spending cuts in Europe would reduce demand for goods and services, GR-NEAM Chief Investment Officer John Gilbert wrote in a newsletter posted on the unit’s website today, as reported by Bloomberg. “There is growing evidence that the rising price of gold is a statement about the discouraging prospects for returns on productive investments,” Gilbert said.  “We hope that this analysis is wrong. We fear that it is not.

According to JPMorgan (who would know since as a primary dealer, they flip treasury take-downs to the Fed roughly 30 minutes after issuance for a handsome profit), the Federal Reserve is currently absorbing approximately 90% of new dollar-denominated fixed-income assets. 
Go back and re-read that last sentence.  That’s right, even the financial MSM is now admitting that the Fed is now nearly entirely monetizing the US deficit outright.
This is why QE4 will be announced next Wednesday (which has already been fully priced in thanks to multiple leaks from the Chicago Fed’s Evans as well as Bernanke last week) and why the Fed will ramp up outright purchases to $85 billion a month ($1.02 Trillion/yr) when operation Twist ends- there are simply no remaining buyers of US debt. 

Those who fail to see where this is headed may wish to acquire a copy of When Money Dies to grasp how the situation played out in Weimar Germany.

Apparently an SD reader now has an official alibi for the IRS as 70 gold bars worth $11.5 million were reportedly stolen from a fishing boat in Curacao Friday.
In other news, Jamie Dimon and Jon Corzine were reportedly vacationing together in the south Caribbean this week.

Armed men dressed as police boarded a fishing boat Friday in Curaçao and stole about 70 gold bars worth an estimated $11.5 million (£7.2 million), police in the southern Caribbean island said.

Fabian Calvo buys and sells $100 million worth of real estate and distressed debt a year and says, “Over 20 million houses, on any given night in America, are completely sitting vacant.” According to Calvo, the economy is being helped by “shadow stimulus.” It’s coming from millions of underwater homeowners who have stopped making mortgage payments. Calvo also says banks are not foreclosing “. . . because the inventory has been suppressed on purpose by big players.” Calvo says, “Money that would have been otherwise allocated towards a housing payment is going into consumer spending.” Join Greg Hunter of as he goes One-on-One with Fabian Calvo.

Silver guru David Morgan was on the Ellis Martin report this weekend discussing silver’s near and long-term outlook, and Morgan’s expectation for the culmination of silver’s secular bull market to see an eventual rush to silver by the general public.

Full interview below:

With gold taken down violently last Wednesday and Friday around December 1st notice, a reader has brought our attention to a piece written by legendary gold trader Jim Sinclair on April 17th, 2010, at a time when gold was trading at $1150, and the gold community was convinced the metal would crash back through $1,000. 

Sinclair urged PM investors to stay the course, and not to let any weakness in gold disturb them, because the entire derivatives market looks like the Wild West and the 40 thieves, and that Greece is not the only sovereign that has used OTC derivatives weapons of mass destruction to cheat, by the time this is over, certain states of the USA are going to get caught in the OTC web.
Rather than crash through $1,000 was many feared gold would do, Sinclair stated that a stratospheric takeoff in the price of gold was at hand.

2.5 years and nearly $800 to the upside in gold later, Sinclair’s message and urging of PM investors to stay the course has not altered nor wavered. 

Sinclair’s April 17th, 2010 commentary is below:

By Ron Paul:

Liberty always loses in the 11th hour.

As the year draws to an end, America faces yet another Congressionally-manufactured crisis which will likely end in yet another 11th hour compromise, resulting in more government growth touted as “saving” the economy.  While cutting taxes is always a good idea, setting up a ticking time bomb with a sunset provision, as the Bush tax cuts did, is terrible policy.  Congress should have just cut taxes.  But instead, we have a crisis that is sure not to go to waste.