Sales of the U.S. Mint’s popular American Gold Eagle bullion coins fell to a six year low in August, while silver bullion sales remained brisk. The drop in gold sales was attributed to seasonality and the fact that the price plummet in April had brought forward demand that may have happened in August.
The Royal Canadian Mint last week reported a surge in revenue and profitability for the second quarter of 2013. Revenue increased by 93.8% to $1.05 billion and this represented the first time in the Mint’s history that quarterly revenue exceeded $1 billion.  The strong results were driven by a sharp increase in bullion demand. There was a 144% jump in Gold Maple Leaf Sales over the same period last year and a 60% surge in the the sale of Silver Maple Leaf coins to 6.4 million ounces from 4.0 million.
Silver Maple sales look like they may reach 24 million ounces in 2013 which will beat the sales of 18.1 million in 2012 and possibly the 23.1 million record seen in 2011.

our lives begin - mlkThe noises coming out of the Pentagon are getting downright creepy, a flashback to previous off-the-shelf strategy plans from the Iraq war.  Originally, it was widely reported that the Obama Administration had in mind a “punishment” strike of 50-some-odd missiles against the Syrian government.  But now, Pentagon strategists are considering a much longer, three day attack involving a considerable amount of firepower.  This is reminiscent of the “Go Big” strategy war planners debated using in Iraq.

The original attack plan was reported to call for 50 Tomahawk cruise missiles.  Word is now the Pentagon is considering the direct use of Air Force bombers, as well as far more naval-launched missile volleys from as far away as the Red Sea.

Obama has decided to use military force against Syria- apparently regardless of whether Syria turns over its chemical weapons stockpiles to international authorities as originally demanded by the US.
Ann Barnhardt, founder of the former Barnhardt Capital Management, believes the looming Middle East war will end up involving more countries than only the U.S. and Syria; Barnhardt predicts this war will be World War III.

Jamie DimonWhy would anyone expect JP Morgan to change strategies now?

It’s possible, I guess, that the banksters might decide that they can get really rich by cornering the right side of the precious metals market and by “letting” prices soar.
Then again, if the bank’s gold portfolio soars, the bank’s dollar-backed investments would likely tank. That is, protecting the dollar is probably more important to them than booking any profits on precious metals.
My assumption is that JP Morgan  is not calling the shots all by itself.
Who has more power than JP Morgan? The U.S. government. And our bankrupt government likes paper, not gold.
In fact, our government probably despises gold. And fears that one day millions of Americans will wake up and start buying the stuff in mass.

fiat cliffTaking possession of precious metals and becoming your own central bank is becoming more essential in the current state of world fiat currency unraveling.
Fiat currencies lack the hard collateral value of precious metals. Furthermore, the global financial system is quickly running out of collateral, hence signs of a growing gold shortage abound.

rocketThe massive debt bubble created by our monetary system is about to burst. The demonetization of gold and silver, has over the years diverted value from these metals, to all paper assets (such as bonds) linked to the debt-based monetary system.
The process of the devaluation of gold and silver, started by the demonetization of gold and silver, is about to reverse at a greater speed than ever before. This is similar to what happened during the late 70s, when the gold and silver price increased significantly.
However, what happened in the 70’s was just a prelude to this coming rally.

Did you know that the United Nations has had evidence that the Syrian rebels have been using sarin gas against Syrian government forces since May?  All the way back before the beginning of the summer, the UN has known that the rebels have been using sarin gas against forces loyal to Assad. This was reported by Reuters and other major news organizations around the world, but there has been an almost total blackout of this information by the big corporate news outlets in the United States
So why are they keeping the truth from us?
What you are about to read might really surprise you. 

In a move that I can only describe as the equivalent of Putin changing Obama’s political diapers for him, the Russian President has persuaded Syria to place its chemical weapons stockpile under international control.
This takes away any stated motive for Obama and John Kerry to press their dwindling cast of supporters into firing away at Syria.  Furthermore, it removes the possibility of the U.S. staging another “false flag” chemical weapons show, which is what most rational-minded observers have concluded occurred in Syria.

EmptyVaultCOMEX gold inventories are down from 11.059 million ounces at the start of the year to 7.034 million ounces today.  This is worth $9.66 billion at today’s prices meaning that a handful of billionaires or just one powerful creditor nation state with large foreign exchange reserves, such as Russia, could corner the COMEX gold market and cause a default. 
Russia’s foreign exchange reserves are at $508 billion . Mainland China still holds the largest foreign exchange reserves in the world, with US$3.4967 trillion at the end of June. It is followed by Japan, which had foreign exchange reserves of US$1.1876 trillion at the end of July.
The possibility of an attempted cornering of the bullion markets through buying and taking delivery of physical bullion remains real and would likely lead to a massive short squeeze which would see gold and silver surge to well over their inflation adjusted high of $2,500/oz and $140/oz.

When it comes to diplomacy, Russia is playing chess, Syria is playing checkers and U.S. Secretary of State John Kerry is playing tiddlywinks.  On Monday, Kerry said that Syrian President Bashar al-Assad could avoid having his country bombed into oblivion by turning over “every single bit of his chemical weapons to the international community in the next week.”  Of course Kerry just assumed that Assad would never do such a thing, but the Russians immediately pounced on his statement.  Russian Foreign Minister Sergey Lavrov quickly announced that Russia would encourage Syria to turn over their chemical weapons to international control in exchange for a guarantee that the U.S. will not attack, and subsequently Syrian Foreign Minister Walid al-Muallem stated that his government was prepared for “full cooperation with Russia to remove any pretext for aggression.”  Later on Monday, UN Secretary-General Ban Ki-moon indicated that he is thinking about asking the UN Security Council to support such a deal.
Do you know what they call such a move in chess?
Checkmate.

AFP Photo / Ricardo Garcia Vilanovoa

Are Syrian rebels planning a false flag chemical weapons attack on Israel?

A chemical attack may be launched on Israel by Syrian rebels from government-controlled territories as a “major provocation a number of sources have told RT.

Comex Silver 90513JP Morgan transferred 1,437,887 ounces of silver from its Registered (dealer) to its Eligible (customer) inventory.  Including this last transfer as well as 3-4 others from Scotia Mocatta during the week of July 22nd, JP Morgan increased its Eligible Silver inventories (50%) from 20.2 mil. oz to 30.2 in six weeks!

When it comes to U.S. economic or foreign policy, Dr. Jim Willie, Publisher of the Hat Trick Letter, says, “The U.S. Ship of State is sinking, and it is a derelict vessel.”  About President Obama, Dr. Willie contends, “He looks weak. He looks backed into a corner. He looks just like Fed Chief Bernanke who also has no exit strategy. They are all tied together because a lot of the actions out there are directed against the dollar.”
Dr. Willie goes on to say, “The U.S. is in an indefensible position, both with war and monetary policy.” All the QE, or money printing by the Fed, has the world on edge and outraged. Dr. Willie explains, “This is abuse of credit card by the United States. We run deficits and then say screw you all. You can just buy Treasury bonds because you have to.” According to Dr. Willie, the rest of the world is tired of the money printing by the Fed and wants to use a new currency to escape the coming global inflation of a dollar that can quickly lose its buying power. Dr. Willie says, “This is financial survival. Nations need to depart from the dollar, and the first ones that do will be the survivors, and lost ones will enter the third world.” As far as Syria, Dr. Willie says it’s not about chemical weapons, but about pipelines and our adversaries gaining economic advantage. Dr. Willie claims, “The U.S. is obstructing capitalism and commerce. That is the problem.” Join Greg Hunter as he goes One-on-One with Jim Willie.

Ladies and Gentlemen of the United States Congress:
I write today to tell you all of the deep concern held by a great many Americans about a possible US military attack on Syria.  We are tired of wars, especially in the Middle East, and want our sons and daughters brought home to defend this country and not a large part of the 93% of the world that is not US territory.
We have spent many lives, limbs, and eyes plus a great deal of the US Treasury on wars in Libya, Afghanistan, Iraq, as well as other places around the globe.  Enough is enough and it is more than time to end this spirit of military adventurism.  We are causing more problems than we are solving with this.  Our intentions may be good but it is not intentions that count in this world; it is results.
What is happening in Syria today is a tragedy and a serious problem for the Syrian people.  But it is not our problem

Have you heard about the “wonderful” employment numbers that were just released?  Last month, the unemployment rate declined to 7.3 percentSomehow this happened even though the percentage of working age Americans with a job actually declined and the number of private sector workers fell by 278,000

I want to preface my comments today by stating that the Government’s monthly employment report is a complete work of fiction.  This has been shown to be true ad nauseum by many analysts.  What really amuses me is that these supposed highly educated, highly paid Wall Street “experts” go on programs like CNBC and Bloomberg News and have a serious discussion about an economic report that is really nothing more than a statistical comic book.  It’s like watching a human version of “Family Guy.”
There’s no BS like the BLS.

Concerns about inflation and weakening currencies are leading the Chinese middle classes and wealthy to again use gold jewellery, coins and bars as a hedge and store of value.  Store of wealth buyers in China today were paying a $18 per ounce premium or 1.3% premium over COMEX gold (see table below). In recent weeks they have been willing to pay as much $30 per ounce extra for gold.
The Chinese people are concerned that the same massive inflation that is affecting India, Indonesia, Brazil and other emerging markets may eventually reach China. Jewelry, coin and bar demand and Shanghai trading volumes have all surged again in 2013 and China is on track to surpass India as  the world’s largest buyer of gold this year.   Throughout the world, those more aware of the historical record regarding paper currencies, and their dismal record at preserving wealth, continue to accumulate physical bullion.

Zeal090613AGold denominated in Indian rupees just skyrocketed up near record highs, a far cry from recent dollar-gold action.  Much of this extraordinary rally was fueled by the near-collapse of the Indian currency to new record lows against the US dollar.  India’s deepening currency crisis has major implications for domestic gold demand and thus global gold prices.  Nothing ignites gold buying like a collapsing currency!

stock market collapseThe next very few months present an extraordinary number of Mega-Market Movers and Moves Impending:
*Russian retaliation for Syria attack
*The U.S. Debt Ceiling Crisis
*The Post-German Election Eurozone Crises
*The Dwindling Physical Gold Supply vs. Demand “Crises”
*U.S. Treasury Bond Bubble Bursting Crisis
We identify the impending key market movers and indicate how Investors may best Profit and Protect:

OLYMPUS DIGITAL CAMERAThis week saw a lot of choppy volatility as the market tries to make sense of the continued Fed taper on/off saga, as well as the war drums for action in Syria.
Taper, don’t taper – Syria, no Syria, its all a big mess.

Play

silver smashIn this week’s show, The Doc & Eric Dubin cover:

-The Doc’s report on the retail physical market, including record Silver Eagle sales
-This week’s metals trading action vis-a-vis mining shares, 10 year breaks 3%, econ data
-GOFO slips into positive territory, only to go negative again while prices declined (cartel footprints)
-Military strike?  Congress? What’s up? – Meanwhile Putin threatens Russia will retaliate for any US strike on Syria
-September FOMC meeting/statement looming, expect the Fed to announce a $10-15 B taper to QE– how will it affect gold & silver?
SD Weekly Metals & Markets With The Doc & Eric Dubin is below: