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?”.

Expect further rhetoric attacking the 2nd amendment, proclamations that the unemployment crisis has been solved by his administration, and complete silence on the topic of drones to be used against US Citizens at tonight’s State of the Union Address by President Obama.

Watch the full address LIVE now below:

Dorner shootoutThe week long manhunt for former LAPD Chris Dorner has come to a last stand for Chris Dorner, who is currently in a shootout with the LAPD.

*Update: 2 LAPD officers have reportedly been shot by Dorner in the shootout.

*Update 2: Chris Dorner now confirmed dead, reportedly shot by a local sheriff’s department sniper.
The residence Dorner was reportedly holed up in then conveniently caught fire, consuming all the DNA evidence in a Waco-like inferno.

silver parabolicToday’s chart of the day examines silver’s 12 year logarithmic parabolic up-trend chart that began in 2001. 
Silver is just now approaching it’s parabolic up-trend line for the first time since 2009, and only 2nd time since 2002.
The last time silver touched its parabolic uptrend line the metal rose from 8 to $50 in 3 yearsThe only other time since 2002 that silver touched it’s vertical up-trend line was in 2003, after which silver went on a tear from $3.50/oz to $21.35/oz over the next 5 years.

Silver is now approaching it’s vertical uptrend line near $32.  Should the same percentage gain be repeated as the prior two occurrences, silver would need to rise to over $200/oz by 2016-2018

myelchreestPaul Mylchreest has released the latest MUST READ Thunder Road Report titled Silver: Right Now (probably) the Best Asset in the World.
Mylchreest examines silver’s cyclical trends and charts, and suggests silver is ready to place new all-time nominal highs by this August.

For more than a century, the silver price has correlated most closely with a cycle based on the combination of two further statistically significant cycles in silver prices lasting 5.58 years and 31 years, respectively. The next peak in this combined cycle is forecast for July-August 2013, which would imply a new all-time high in the silver price in excess of US$50/oz(the current price is US$31.47/oz.). Having underperformed significantly from their most recent price relative peaks in 2011, the risk/reward trade-off for premier silver mining stocks, like Fresnillo (quoted in London) andPan American Silver (North America) looks favourable.

Myelchreest’s full MUST READ report on silver is below:

Source: Banzai7

Source: Banzai7

The next time you hear propaganda from Fed officials or the financial MSM that the Fed will end QE by the end of 2013, please recall this startling statistic:  thus far in 2013, the Fed has increased its Treasury bond holdings by $51.1 billion, while the official US debt has increased by only $47.2 billion over the same period. 
This confirms with startling clarity that the Federal Reserve is the ONLY remaining purchaser of US debt in size, and that the Fed must not only take up all of the newly issued US debt, but it must also absorb the maturing treasury bonds coming due.

QE is going to INFINITY…AND BEYOND… and will continue until one of three events occur:
1. Gold revaluation (the final deflation-fighting tool in Bernanke’s toolbox)
2. Dollar devaluation (essentially #1 just announced in dollar terms) such as Venezuela announced Friday
3. Hyperinflation of the dollar & complete systemic collapse.

Got PHYZZ??

Bloomberg’s Trish Regan and Adam Johnson interviewed TCW Group’s Komal Sri-Kumar and Bank of New York Mellon’s Michael Woolfolk about the risks from currency wars on Bloomberg Television’s “Street Smart.”  Trish Regan asks whether there is a danger that “we have massive inflation worldwide for years to come?”
The answer is yes and both agree that inflation is a real risk as is a loss of credibility by central banks.   Komal Sri-Kumar is asked what the solution is and is asked about his Op-Ed in The Financial Times in which he calls for a return to a gold standard.

He replies that a gold standard today would be no different to “how good it was from 1945 to 1971.”  “It worked, the world was in prosperity, there was economic growth and there was clearly certainty in terms of what exchange rates were.”  He warns that “even in the short term there is nothing to be gained by devaluing. We have tried that in the United States. We have been devaluing through QE1, QE2 and QE Infinity, the most recent one … we don’t have sustained economic growth.”

Reuters reports that US gold exports in December were the highest monthly totals since Sept 2011, up a massive 43% month over month. An astonishing 1/2 of all US Gold exports in December reportedly  were shipped to Hong Kong!

We are watching real US wealth flow straight to China in exchange for a few more months of normalcy bias can kicking.

bubblesFormer Assistant Treasury Secretary Dr. Paul Craig Roberts says, “I think we have three of the biggest bubbles in history. The bond market, stock market and the U.S. dollar . . . and something is going to go.” Roberts thinks, “This is possibly one of the riskiest years in Western civilization.” When it comes to recent revelations about the extensive use of drones to kill terrorists, both foreign and domestic, Dr. Roberts says, “It’s not just unconstitutional, murder is illegal.” When it comes to drone strikes on U.S. citizens suspected of terror, everyone should be concerned. Roberts says, “Now, the principle is if the government says you are guilty, you are—period. No evidence is needed for your termination.Join Greg Hunter as he goes One-on-One with Dr. Paul Craig Roberts.

By SD Contributor SRSrocco:

What is taking place in the MINERS is just SINFUL.  The Gold & Silver miners are really the money creators of the world.  To see banks get away with the facade of creating money makes me sick.  It’s like stealing the MERITS of a fallen soldier who deserves the Purple Heart for instance.

The PENDULUM always swings back — even though we might not be patient enough to see it.

FUNDAMENTALS ALWAYS WIN OUT IN THE END…… ALWAYS..