Silver has now joined gold in experiencing a “golden cross” which likely portends much higher prices in the coming months.
A golden cross is when the 50 day moving average rises above the 200 day moving average in an upward movement. The golden cross suggests that silver prices are going higher as golden crosses normally lead to higher prices.
In the past quarter, silver surged 25% in a move that has been largely attributed to the Federal Reserve’s announcement of so-called QE3.
“QE to eternity” is obviously an important factor but the supply demand fundamentals of the physical silver market remain very favourable and this should see silver rise above the recent record nominal high of $48.44/oz either in Q4 2012 or in 2013.

By Ron Paul:
Last year the Chairman of the Federal Reserve told me that gold is not money, a position which central banks, governments, and mainstream economists have claimed is the consensus for decades. But lately there have been some high-profile defections from that consensus. As Forbes recently reported, the president of the Bundesbank (Germany’s central bank) and two highly-respected analysts at Deutsche Bank have praised gold as good money.

Why is gold good money? Because it possesses all the monetary properties that the market demands: it is divisible, portable, recognizable and, most importantly, scarce – making it a stable store of value. It is all things the market needs good money to be and has been recognized as such throughout history. Gold rose to nearly $1800 an ounce after the Fed’s most recent round of quantitative easing because the people know that gold is money when fiat money fails.

Central bankers recognize this too, even if they officially deny it.

Fed Chairman Ben Bernanke gave a speech at the Economic Club of Indiana today titled: Five Questions about the Federal Reserve and Monetary Policy.  Bernanke addressed 5 questions focusing on the risk of the Fed’s policies increasing inflation and punishing savers.
In the you-simply-cannot-make-this-stuff-up department, Bernanke claimed that savers would benefit from QE∞ because ‘most savers are also homeowners‘, and that ‘many savers own businesses and stocks‘.

Fundamentally Bernanke is 100% correct- savers will benefit from QE3- provided they are saving in the form of REAL WEALTH such as land, food, and physical gold and silverThose saving in fiat federal reserve notes and receiving social security and pensions will be decimated.

Full text of Bernanke’s remarks and defense of QE3 below:

In today’s Midday News we hear that Chicago Fed President, Charles Evans really likes infinite numbers and we review the subsequent reaction of Gold and Silver. We also hear what Fed Chairman Ben Bernanke thinks the effects of endless QE will be on the US National Debt. (You may be surprised by what Ben thinks.)


By Ted Butler

No matter how convinced I may be that silver has been manipulated downward in price by JPMorgan’s concentrated and rapidly increasing short position in COMEX futures contracts; it is vital to explore why that may be wrong. Particularly with a conviction held for a long period of time, it is important to make sure I am not missing anything basic. The best way to do that is to listen closely to those who may disagree with the silver manipulation allegations. However, uncovering the arguments against a silver manipulation is not as easy as you might think.

Last week we posted claims made by ‘bullion insider’  David R, who claimed that JPM was not intentionally manipulating the silver market, but is merely arbitraging paper vs. physical, and is net long physical silver.
Gold expert, and cartel whistle-blower Andrew Maguire has released a point-by-point rebuttal to David R’s claims, which Maguire states include some glaring inaccuracies and leave out crucial information.

The market dynamics discussed in the above commentary leads perfectly into some good member questions arising from an article posted last week on Miles Franklin blog titled The Cartel And Hedgies Are Short Paper, But Long Physical Gold

The article needs dissecting as it is accurate in just enough respects to appear credible but the author ends up both oversimplifying and misrepresenting the complex business of bullion banking. Considering the source of the information claims to be a specialist precious metals trader, there are some glaring inaccuracies which draw into question either his qualifications or his motives.
Fact, the bullion banks are indeed long a good deal of physical and it is also true that  bullion prices are set to rise, but the article is net very misleading.  By only looking at a very small piece of a much larger overall picture, it leaves one with the impression that the bullion banks main source of income is arbitraging contango. This could not be further from the truth.  Perhaps it is best to take a paragraph at a time and break down where the inaccuracies lay and what is crucially left out.

With September and it’s big gains in both gold and silver now behind us, we thought it apropos to examine a chart of the seasonal pattern for gold throughout the bull market to date, as October is one of only 4 months out of the year that has averaged a negative return for the mouth throughout the duration of the bull market since 2000.   While traders may want to lighten positions for October, holders of the physical metal should likely sit tight as November is the strongest seasonal month of the entire year, with an average monthly return exceeding 4%.

In this excellent update on the stock, dollar, oil, and gold & silver markets, former Bear Stearns trader Greg Mannarino states that the stock market is testing major resistance WITH ZERO VOLUME and is preparing to roll over.  He states equities are currently at least 50% over-valued from fair-market prices, and that the Fed is currently setting up the biggest pump & dump in the equities market that the world has ever seen!Enormous amounts are going to be created when this bubble bursts, and the majority will be STOLEN BY THE INSIDERS, AS THE GENERAL PUBLIC ARE SLAUGHTERED!

Mannarino states that we are in the midst of a currency collapse, and that rather than worrying about the latest I-phone or I-pad, people need to be worrying about SURVIVAL!

Mannarino states that the best play to avoid the coming onslaught is PHYSICAL SILVER and that after a potential short term pull-back over the next week or two, a MAJOR, MAJOR LEG UP IN SILVER IS IMMINENT!!


While we already posted the Chicago Fed President Charles Evans’ CNBC interview this morning in the gold and silver update, Evans’ comments are so shocking that they deserve their own post.

Evans explains the Fed’s dual mandate: keep unemployment low, and ensure inflation targets Wiemar Republic levels.
At least that’s what we heard.
Evans attempts to claim that the Fed is ‘justified’ in attempting to debase the dollar to sub-worthlessness, due to the high unemployment rate.

Evans claims that the only possibility inflation will increase above 2-3% is if the economy recovers, and people bid up asset prices due to the roaring economy.  Until that occurs, Evans states the Fed will continue create new accommodative policies to ‘stimulate growth’.
Folks, Evans has just unknowingly given THE PRECISE FORMULA FOR HYPERINFLATION!!  Back up the truck on all significant dips in gold and silver as it is now time to CONVERT ALL FIAT ASSETS INTO PHYSICAL GOLD AND SILVER!!!


Gold and silver have just gone vertical as the Chicago Fed President Charles Evans has just appeared on CNBC calling for QE∞ squared!
Silver has exploded nearly $1.50 to $35.50, and gold has jumped nearly $20 to a new 2012 high of $1793!!

*Updated with Evans’ CNBC interview

Factory output has shrunk for 14 consecutive months and businesses must continue to trim the fat of their organizations during these recessionary times. The report showed that 18.2 million people were jobless in September; this is an increase of 34,000 people versus the previous month. As living standards fall and livelihoods are being wretched voter anger is becoming increasingly palpable, especially in countries such as Spain and France. History provides countless lessons as to the political consequences of detached economic policies and their real effects.  Northern Europe’s gamesmanship in rewriting previously agreed banking debt support may set a dangerous precedent and tear apart the tenuous ties of trust between governments – who after all must act together if they are ever to forge a solution to their current economic plight.

Submitted by SD Contributor Marshall Swing:
Gold COT Report 9/28/12


Commercials sold off -4,296 longs and added 8,426 shorts to end the week with 56.32% of all open interest, a decrease of about +0.85% from the previous week in total open interest, and now stand as a group at 26,235,500 ounces net short, a significant increase of 1,272,200 ounces net short from the previous week. 

Gold and silver are selling off during early Monday Asian trading, which was expected after Friday afternoon’s announcement that a Federal District judge had struck down the CFTC’s position limits rule, scheduled to go into effect Oct 12th.

Silver gapped down on the 6pm EST globex open, and has continued to sell off nearly continuously in the Asian session, down to $34.28.
Gold is down a more modest $5 to $1765.
As we mentioned Friday night, the ruling explains why the commercials (cartel) have continued to massively increase their net short positions, adding another 6 million net shorts in silver this week, to a massive 258 million ounces net short!