goldTwo years ago Banxico bought 100 tons of gold, and in 2012, added 20 more tons. Last February, its total holdings amounted to 124.5 tons, equivalent to just 4% of Mexico’s international reserves.

However, this position has been reduced in recent months because the Mexican central bank has been consistently selling part of its gold for at least nine consecutive months (May 2012 to January 2013).
This wrong decision is compounded by the fact that the gold sold was part of the very small amount of physical bullion that Mexico had in it’s possession; bars that had been stored in Banxico’s vaults.

To be precise, the Bank of Mexico released about 36,000 ounces of gold in just a matter of months. 36,000 oz is nearly a fifth (18.5%) of the only 194,539 oz. that were in the country until April 2012, according to its own figures. 
In other words, Banxico purchased 120 tons of paper “gold”, and sold a very important part of the real metal it held!

“In fact, Italy’s already out of the Euro,” Italian comedian-turned-politician Beppe Grillo, whose Five Star movement won the biggest share of the vote in last month’s Italian election, says in an interview published by German newspaper Handelsbaltt Wednesday.

Northern European countries, he adds, will keep Italy in the Euro “until they are able to get back the funds their banks invested in Italian government bonds. Then they will drop us like a hot potato.”

Jamie DimonAfter 5 years of their investigation of silver manipulation, the WSJ reports tonight that the CFTC is having internal discussions regarding the manipulation of gold and silver on the daily London fix.

While we can’t say more, it appears that the CFTC may be trying to get in front of some big news that is reportedly scheduled to break in the very near future regarding the alleged gold and silver manipulation.

bubblesGold expert James Turk says, “Mr. Bernanke is so anti-deflation he’s willing to risk hyperinflation, and we are on this path of hyperinflation given the policies we are following.” Turk contends gold is a good value right now. Turk says, “Because it is money outside the banking system, it doesn’t have any counterparty risk, and that is very important as this crisis continues to unfold.”

Turk predicts, “Either we cut back on spending or the dollar is going to collapse. . . . Those are the two choices.” Turk’s advice, “By owning physical metal, you are preparing for what looks like a collapse of fiat currencies. In fact, I call the environment we are in now a fiat currency bubble.” Turk predicts gold will reach “$11,000” per ounce in the next five years.

Turk goes on to say, “It might come sooner. It depends on when confidence finally breaks, and we’re getting very, very close to that stage. There’s nothing holding the dollar together but confidence.” Join Greg Hunter as he goes One-on-One with James Turk.

pope electedWe are not quite sure why this qualifies as news, but as it only happens every few decades, we are sure at least a few of our readers are at least mildly interested. 

Reports indicate that white smoke has just emerged from the Sistine Chapel, meaning the Catholic Cardinals have elected their next (last?) pope on the second day of their Conclave.


JPM CEO Jamie Dimon reportedly has begun pushing for Federal Government guarantees of mortgages, stating in a recent press conference, and we quote:  If I were the dictator, I would want a government-guaranteed mortgage.”

First Presidential Cuff-links, and now if I were the dictator quotes?
Perhaps Dimon views the office of President as being so 2012?

central bankersBy Bill Holter:

The Bank of Japan announced over the weekend that they are considering buying derivatives to jump start their economy.  Oh yes, that will do it!  Print money (currency) lots and lots of it, purchase derivatives that are worthless and have zero chance of performing and book them on your balance sheet.
Yes I know, taking dead derivatives off of bank balance sheets and replacing them with Yen, Dollars or what have you will “strengthen” the selling banks balance sheet by removing the Albatross but….what about the central bank’s balance sheet?
This cannot work because all they are doing is destroying themselves!

silver marketGuest Post

While mainstream financial and a growing number of economic forecasters focus on investors fleeing the gold bullion market, I am following in the footsteps of central banks around the world.

As investors sold ETFs in February, central banks around the world added to their gold bullion reserves.

velocity of moneyNot all prices rise at the same time, nor do they rise evenly. Furthermore, the equation of exchange cannot differentiate between price changes that emanate from demand for goods and those that emanate from changes in preference for money – two effects that can produce very different results.
These unknowns are effectively wrapped up in that catch-all, velocity of circulation.

drone onBy AGXIIK:

The drone issue is a perfect example of a government run wild with power, thinking it has a mandate in its ability to murder its citizens, with the threat of terrorism as the high cover to a sky filled with weaponized UAVs.  My refrain is “Don’t Drone me, Bro’!

A government with a weapon system like this will eventually use it, even if a copy of the  Constitution is wrapped around its engine nacelle. 

stewart thomsonSubmitted by Stewart Thomson:

Big bull market moves occur with enormous negative sentiment, and it is the liquidity flows of short covering that produce the most violent jumps in price, to the upside

Those factors are in play now, but they would be “outrageously in play”, at $1400-$1450.   Have no fear of a drop to that price area.  I would not sell any holdings now, to avoid such a fall, even if I was 99% sure it would occur.
If the gold price fell to $1432, what would probably follow is a relentless rally, straight to the $2000 area.


If silver and gold prices correlate, on average, with the national debt and debt will increase until a crash/implosion/hyperinflation event restructures our economy, then you can bet on much higher silver and gold prices in the future.
Volatility will increase. Gold accelerated into a new high in 2011, and silver almost exceeded its 1980 high that same year. Both markets have been ugly, from a bull’s perspective, since then. Expect future parabolic rallies and vertical drops to become more intense in the next four years.

Expect more frightening and silly statements from Goldman Sachs et al about gold going down to $1,200, while they prepare to book fantastic profits from the rally they will encourage, when the time is right for them. The names differ, the game is the same. It hasn’t changed in hundreds of years.

If you want stress, play the futures market in silver. If you want a long-term investment, buy silver at these low prices and wait for the powers-that-be to devalue the various Dollars, Euros, and Yen that we use.

silverSubmitted by Bill Holter

“Price” follows volume…or at least it should in any real world where the markets are left unfettered to discover true and real values. 

“Crony capital” is flowing into crony bonds but hard earned capital is flowing into, not out of the precious metals that are otherwise known as “money”.  Investors are flocking to “cash” in other words, not trash cash but real money cash!
THIS is what volume flows should be telling you and as Jim Sinclair says “Gold is coming INTO the system…NOT away from it”


Submitted by Tekoa Da Silva

I had the opportunity yesterday to connect with lead counsel of the Silver Class Action Complaint, Christopher Lovell, partner of New York City law firm, Lovell Stewart Halebian Jacobson LLP. It was a fascinating interview, as Chris and his firm have won many of the largest settlements in commodity exchange act & antitrust law history, with their highest recovery being over $1.02 billion dollars.

During the interview Chris provided an update on the silver class action complaint, as well as announcing a key missing ingredient, one which may be needed for the survival of the class action silver manipulation case.

Bottom Line: The silver manipulation case is on the edge of being thrown out for good. After investing many hundreds of thousands of dollars into this case so far, Chris is humbly asking for help from the market. It appears that insider emails or a ‘canary’ may be the missing ingredient needed to keep the case alive.

ned-naylor-leyland.09.11.11As most of our readers are aware, our friend Ned Naylor-Leyland of Cheviot Asset Management along with whistle-blower Andrew Maguire have been consulting with a group of wealthy Chinese businessmen regarding the launch of a fully physical allocated silver exchange in China.

Responding to an inquiry in regards to the progress of the launch of the physical silver exchange that could literally break the back of the banking cartel, Ned informs our friend TF of TFMetalsReport that things are progressing now, with substantial domestic interest.

beach ballIn the best sign yet that the pattern has changed from the nearly month long hammering of gold and silver on the COMEX open, both metals have made vertical moves to the upside this morning, with silver popping though $29 to $29.47, and with gold jumping $15 to $1598.

Average daily trading combined volumes on the three main gold contracts on the Shanghai Gold Exchange in the first two months of the year jumped 24% on the year, according to Reuter’s calculations.
“The strong physical demand in China is the main reason behind gold’s resilience,” a Beijing-based trader told Reuters. Physical demand prospects out of China remain positive in the weeks ahead, UBS AG said  according to Bloomberg.

Sentiment is as bad as we have seen it in recent years which suggests to us that while gold may go lower in the short term – we are close to a bottom.  The global debt crisis is far from over and when it erupts anew, gold’s appeal as an important diversification and safe haven will be appreciated once again.

jim willieThe Golden Jackass Jim Willie sat down with The Doc this weekend for an extraordinary interview regarding gold, silver, and what Willie believes will soon be a massive European banking collapse. 

Willie states that a Big European Bust is Coming- evidenced by the fact that European banks received $1.2 trillion from the NY Fed in January alone!
Willie states that the coming European bust will ignite a global Gold rush, a massive short covering rally, and will result in a powerful 30% to 50% rise in the gold price!

Willie also discusses gold and silver backwardation, the recent paper raids, and whether or not the metals face the risk of a 2008 type collapse as the Western financial markets go down in flames!

Jim Willie’s first of an explosive, 2-part interview with The Doc is below:

clarityBy Ted Butler

Every once in a while, someone utters a statement that suddenly galvanizes the issue at hand.  That’s the first thing that came to my mind when I read of the US Attorney General’s words before a Senate hearing this week.

In a blinding moment of clarity, the answer to the whole “why isn’t the CFTC doing anything about the silver manipulation and JPMorgan’s stranglehold on the price” question flashed for all to see. Mr. Holder’s words couldn’t be any clearer and fit perfectly with the now-consensus view held by those who know that JPMorgan is manipulating the price of silver. The reason the CFTC is allowing JPMorgan to continue with their illegal behavior in silver is because the bank is too dam* big and powerful to rein in for fear of the unintended consequences.