silver shortageGermany recently announced it was moving some of its gold back to the homeland. Investment manager Tom Cloud says, “People are starting to pull away and take care of themselves. . . . You don’t want to be the last guy holding the bag.” In his 35 years of investing, Cloud says, “I am now seeing countries buying gold that are talking to me. . . We have banks buying the heaviest they have ever bought.
When it comes to silver, Cloud contends, “There is a real shortage out there. . . . You’ve got industrial buyers competing with the investor.” Cloud predicts, “There will be a time we’ll see a parabolic rise in the price of gold and silver, but we’re not there yet.” Join Greg Hunter as he goes One-on-One with Tom Cloud of CloudHardAssets.com.

hyperinflationLegendary gold trader Jim Sinclair sent subscribers a shocking and MUST READ email alert last night regarding the possibility that the dollar as reserve currency will enter the initial stages of hyperinflation by mid-year, and the effects the debasement of the dollar will have on gold.
Sinclair states that by midyear of 2013 the US Federal Reserve will have to make a decision in order to keep the US bond market which is US interest rates at the low levels that have been promised until employment has made a sustained recovery and that The Fed’s defense of the US bond market is demanded by the huge pile of original and old OTC derivatives that still haunt the monetary system as specific performance contracts with any financing floating in cyber space. This could drop the US dollar below .7200 to .5600 on the USDX in a short period of time.

Sinclair states that the effects of the Fed’s increased pace of quantitative easing will lead to severe cost push inflation, a derivative of hyperinflation running from mid 2013 through 2017, and that This will be the entrance to the second phase of the gold market ascendancy. Gold got to $1900 on threatened systemic failure. Gold will go to $3500 and above on pure monetary fiat currency concerns.

Jim Sinclair’s full MUST READ alert on the imminent cost-push inflation/hyperinflation of the US dollar due to QE∞ is below:

The Morgue’s Jamie Dimon blasted financial regulation in the wake of the 2008 financial crisis today at Davos, dropping this beauty of a quote:  Businesses can be opaque. They are complex. You don’t know how aircraft engines work either

Dimon also stated new financial regulations have made things (sheople fleecing) more complicated for The Morgue. 

Dimon’s full statement at Davos below:

gold bank runThe Doc and Turd Ferguson from TFMetalsReport sat down with AltInvestors last night for another round table interview focusing on the implications of the Bundesbank’s recent gold repatriation request. 
Doc and TF discussed the beginnings of a gold bank run and how other nations such as the Netherlands could step in line in front of the Germans by demanding delivery of their gold immediately, how CNBC’s recent discussion of Germany’s gold repatriation inadvertently admitted in the MSM everything that GATA has alleged about Central Bank gold leasing for over a decade, and how a full blown currency war is developing as we speak

Full interview is below:

HSBC has quietly moved into acquiring large amounts of silver bullion. The bank has secured another deal to buy silver bars from KGHM which brings their total purchases of silver from KGHM alone in the last 12 months to $876 million or PLN 3.65 billion. KGHM is one of the largest producers of silver in the world and is the second-largest producer of refined silver in the world. They produce silver bars registered under the brand KGHM HG that are attested to by “Good Delivery” certificates issued by the London Bullion Market Association and the Dubai Multi Commodities Centre. Listed metals producer KGHM signed an estimated PLN 1.67 billion deal on 2013 sales of silver to HSBC, KGHM said in a market filing yesterday. The deal puts the total value of deals between KGHM and HSBC in the last 12 months to PLN 3.65 billion or $876 million, the filing read.  KGHM is one of the largest companies in Poland and one of the largest mining & metallurgy companies in the world.

imagesWith the recent claims from an Apple contractor that a Chinese silver shortage is the culprit for the production delay in the new I-Macs, an SD reader who has recently moved to China has given SilverDoctors a MUST READ first-hand account of the retail gold and silver mania underway in mainland China. 

With the Chinese New Year less than a month away, Ichban describes Chinese demand for gold and silver in Beijing as a tidal wave, and states that the demand for gold and silver is more intense than Thanksgiving/ Black Friday mobs in the US, despite the nearly 60% premiums retail dealers are asking for silver bullion!!

Ichban gives readers a glimpse of what to expect when the mania stage of the gold and silver bull markets finally reaches the US, as he describes the scene at Chinese retail bullion stores: 
Despite these high premiums, I have never seen such frenzied buying in my life!  I am a young adult male and 40 year old Chinese women are shoving me out of the way because they are trying to buy some gold and silver!

Ichban’s full first-hand account of China’s gold and silver mania below:

Our friends at Sprott Asset Management have released an infographic on the platinum and palladium markets.  Sprott now offers exposure to platinum and palladium through its ETF’s SPPP & PPT.U. 

The infographic breaks down platinum and palladium sources of demand, production, ore grades, supply/demand imbalances (and the net supply deficit, as in silver), and historical prices.

Full info graphic below:

gold bank runAs SD readers are likely well aware, the Bundesbank last week announced the repatriation of over 600 tons of Germany’s gold reserves held at the NY Fed and the Bank of France.
The “gold conspiracy theories” have now gone mainstream with a CNBC Market Mystery segment discussing the Bundesbank’s gold repatriation over the weekend, which means it can’t be long before the conspiracy theories of empty vaults underneath the NY Fed and Fort Knox become conspiracy facts. 

CNBC’s Guy Adami:  This is a huge story in my opinion that is not a huge story now, but will be a huge story.   Why is that? Because you have to ask yourself, why would Germany decide to do this? What do they see that the rest of us don’t see that requires them to physically move this gold out of lower Manhattan and obviously in Paris, as well, back to their borders?  I think that’s really the question you have to ask, and the answer is, it can’t be anything good...

If you think Germany is going to be the last, they’re not. People will line up and do this. You talk about runs on banks? This could potentially be exactly that! Because if everybody wants their metal back at once, you better hope that A, that it’s there and B, that we’re able to do it!

Full CNBC discussion of the ramifications of Bundesbank gold repatriation is below:

1800Submitted by Stewart Thomson:

This morning the BOJ doubled their inflation target, to 2%, and announced they would begin open-ended QE in 2014.  Of even greater importance, they announced the bank would begin a new era of coordinating policy with the Japanese government.

Jens Weidmann, head of the German central bank, sounds particularly vocal, in condemning that cooperation.  He believes the BOJ is risking a global fiat currency war, which is great news for gold investors!  The April timeframe when the new super-dove takes over as head of the BOJ is becoming a key one for gold investors. It could mark the “official start” of a worldwide fiat currency war.

Furthering the case for gold, after every buy signal generated by the 14,3,3 weekly chart Stochastics indicator, gold staged an enormous rally, and one such buy signal is in play right now.  There may be a little backing and filling here, but the bottom line is that gold appears to be preparing to “head and shoulder” its way through the $1800 Maginot line in the sand!

President Obama took his oath of office and made his inauguration address yesterday.
Almost exactly 4 years ago President Obama’s first Inauguration took place – on January 20th, 2009.  Gold prices closed on his inauguration day at $857.25/oz and silver at $11.34/oz.
One month later gold had risen to $992.90/oz and silver to $14.44/oz. Thus, in the 30 days subsequent to the inauguration, gold rose nearly 16% and silver by over 27%.

Exactly 12 months later on January 20th, 2010, gold had risen to $1,111.05/oz for a gain of 29.6% in the first year after President Obama’s inauguration.  In the following 12 months, silver had risen to $17.88/oz for a gain of 57.6% in the first year after President Obama’s inaugurationA similar performance in the coming year would see gold rise from $1,690/oz to $2,190/oz, and would  see silver rise from $32/oz to a new record high of $50.24/oz.

While in reality the Fed is the market for US debt via QE∞, there is at least a thin line between the Fed’s indirect monetization of the US debt/deficit, the Bank of Japan has obliterated that thin line, announcing open ended direct monetization of JGB’s, beginning with 13 trillion in JGB monetization in January 2014

Welcome to the start of full-blown currency wars. 
Got PHYZZ?

Full announcement is below:

*Updated- shortage spreading to Silver Maples, SDBullion experiencing unprecedented demand for silver bullion

On Thursday, we alerted SD readers to the fact that the US Mint had sold out of Silver Eagles, selling over 6 million ounces over the first 9 days of sales in 2013, and was shutting down sales and production of Silver Eagles through at least 1/28, and would ration sales of eagles upon resumption of sales.

With a rapidly growing presence in the retail gold and silver market via SDBullion, we have had a unique perspective of the escalating physical silver shortage, and would like to give our readers an inside glimpse of the time-line of events evidencing a growing shortage of physical silver.

Full time-line of the developing silver shortage from a wholesale perspective is below:

Jim GrantJim Grant was back on Bloomberg today with Deirdre Bolton discussing the Fed’s QE∞ policy, and the MOPE that the Fed will end QE by the end of the year.

Regarding the impending discussion of raising the US Debt ceiling once again, Grant states:

It’s important that we lament our debt and debate the $16. something trillion that constitutes the gross debt because there are no more checks on its growth other than civil and informed discussion.  
We used to have a gold dollar, and since there is only so much gold, there could only be so many dollars.  That’s gone. 
We used to have an interest rate structure that constrained public debt because it became prohibitively expensive to borrow at rates of 6 and 7%. 
We borrow now at 2%.  If rates jumped to a measly 4% we would be spending as much on interest as on Medicare!  The distortion of interest rates thanks to the Fed’s actions has seduced us into a most dangerous complacency in regards to the debt.   Rather than raising the debt level, we should lower it by a symbolic $1!

Jim Grant’s full MUST WATCH interview is below:

By former-Congressman Ron Paul

If governments or central banks really can create wealth simply by creating money, why does poverty exist anywhere on earth?  Why haven’t successive rounds of quantitative easing by the US Fed solved our economic recession?  And if Fed money creation really works, and doesn’t create inflation, why haven’t Americans gotten richer as the money supply has grown? The truth is obvious to everyoneFiat currency is not wealth, and the creation of more fiat dollars does not mean that more rice, steel, soybeans, Ipads, or Honda Accords suddenly come into existence. The creation of new fiat currency simply strengthens a fantasy balance sheet, either by adding to cash reserves or servicing debt.  But this balance sheet wealth is an illusion, just as the notion we can continue to raise the debt limit and borrow money forever is an illusion.