Italy’s politics were turned upside down yesterday after the election resulted in the dissident, 5-Star Movement of comic Beppe Grillo creating the strongest party in the country, but left no group with a clear majority in parliament. This political uncertainty weighed on the euro as Italy is the Eurozone’s 3rd largest economy. Bullion’s gains were limited as investors await the Federal Reserve chief Ben Bernanke’s semi-annual testimony to U.S. Congress before the Senate Banking Committee today, and tomorrow he visits the U.S. Housing Financial Services Committee. A dovish statement from Bernanke will support gold.  European stocks declined as Italy’s inconclusive parliamentary election renewed concern that the region’s sovereign-debt crisis will deepen. This follows falls on Wall Street yesterday and Asian falling overnight. Huge complacency and even denial about the debt crisis and suggestions that it had been resolved have contributed to investors selling physical gold in recent days. 

The Australian government has moved to plug a $15 billion budget deficit by seizing all funds in private accounts that have been inactive for 3 years or more.
Perhaps the Australian politicians missed the memo that it is much easier to steal from citizens when they don’t even realize the theft is occurring (see quantitative easing and inflation). 

HOUSEHOLDS face losing up to $109 million from their family savings as the Federal government moves to seize cash from inactive bank accounts.

SILVER-RUSHThis past summer, Discovery Channel cameras rolled as the world’s best-known deep-sea recovery team, Odyssey Marine Exploration (OME), successfully recovered approximately 48 tons of silver bullion from the SS Gairsoppa – making it the deepest and heaviest cargo recovery in history.

SILVER RUSH, a new three-part series narrated by Mike Rowe, tells the story of one of the greatest deep-sea treasure quests of all time. The series will take viewers on board Odyssey’s flagship, the Odyssey Explorer, as it launches its most audacious operation ever — locate and excavate three shipwrecks worth as much as a billion dollars all in one season. But will they be able to complete the entire recovery effort in just 90 days before punishing storms roll in?

5Vast amounts of Chinese and Indian silver must have been in the COMEX whirlpool before silver trading migrated to Canada after the Silver Purchase Act of 1934 and FDR’s EO 6814 on August 9, 1934 due to a 50% profits tax. Today the Hong Kong Mercantile Exchange has the usual names found at its site—Bache, Warburg, Morgan, HSBC; and Rothschild in the background.

In this excellent interview with the Sound Money Campaign, gold & silver mining analyst Jay Taylor states that The REAL Prices in the Monetary Metals Will Rise Again, Despite Gold’s “Death Cross” and Bankster Manipulation, and that pricing Gold in Dollars is a Fraudulent Measure The FED Needs You to Believe

Taylor’s full interview is below:

Ben Davies Hinde CapitalIn this MUST LISTEN interview, GoldMoney’s Alasdair Macleod talks to Ben Davies, co-founder and CEO of Hinde Capital. They talk about the recent weakness in the gold price and factors that will propel gold higher.

Ben Davies states that revaluing gold and backing the monetary system with it could be one of the least disruptive ways out of the credit mess. The continuance of debt monetisation on the other hand has the potential to cause a hyperinflationary collapse. Davies is especially pessimistic about Japan, and sees a lot of trouble ahead and talks about Fukushima as a turning point for the country. He also talks about the dire straits the British pound is in.

Davies discusses the recent disappointing performance of gold bullion in light of all the monetary inflation around the globe. However, he points out that the physical market is fairly tight which usually occurs around a price bottom. They also talk about the pressure on the gold mining industry, China’s accumulation of gold, Comex gold data and the possibility of another banking crisis.

Davies’ full interview is below:

swat milk raidWhile I oppose most gun control proposals, there is one group of Americans I do believe should be disarmed: federal agents. The use of force by federal agents to enforce unjust and unconstitutional laws is one of the major, albeit overlooked, threats to liberty. Too often Americans are victimized by government force simply for engaging in commercial transactions disproved of by Congress and the federal bureaucracy.

For example, the offices of Rawesome Foods in Venice, California, have been repeatedly raided by armed federal and state agents, and Rawesome’s founder, 65-year old James Stewart, has been imprisoned. What heinous crime justified this action? Rawesome sold unpasteurized (raw) milk and cheese to willing customers – in a state where raw milk is legal! You cannot even drink milk from a cow without a federal permit!

imagesGuest Post by Bill H.

Can a barrel of oil “default”?  A bushel of wheat?  Gold or Silver?  Of course not but these are, in today’s upside down backwards world considered “risk assets”.  How whacked out have we become?  Sovereign governments that just 20 years ago would have been taken out back to the financial “disciplinary woodshed” are considered AAA rated or close to it, but physical commodities are risk assets.

The pound weakened against the dollar, the euro and especially gold as currency markets reacted to Moody’s decision to downgrade Britain from AAA citing “continuing weakness in the UK’s medium-term growth outlook” and concerns over massive debt levels in the UK.

Market reaction has been muted with bonds reasonably firm and the FTSE higher. However, the move was already priced in. What is not priced in is a series of cuts which seem very likely given the appalling finances in the UK.  This will lead to weaker gilts, higher borrowing costs for the UK, inflation and a continuing fall in the pound against gold.  Gold is nearly 2% higher in sterling so far in 2013 after the 2.2% gain in 2012 and 10.5% gain in 2011.

While you won’t hear it even mentioned on CNN, ABC, CBS, or even Fox News, the biggest story across the US this weekend was the ‘Day of Resistance’, as thousands of Americans gathered across the US on Saturday the 23rd (.223) to protest the Obama administration’s war on the 2nd amendment.

gold bear market cnbcSubmitted by Deepcaster:

All Investment Cognoscenti know that The Fed’s “Communication Policy” is aimed at Financial and Market Ends, not at Truth. (Here, should we rely on The Fed’s earlier expressed “Guidance,” or this week’s “Scaling Back” Hint? They can not both be True.)  Indeed that Policy could well be paraphrased “Tell whatever Lie you need to, to achieve your Goals.”

Those recently released Minutes, for example, achieved a Primary Fed Goal of blowing the Gold and Silver Prices down through Major Resistance, and a Secondary one of cooling somewhat inflated Equities and Commodities Prices.   As leader of The Cartel (Note 1) a Cornerstone of The Fed’s Policy is, and has long been, to suppress Gold and Silver Prices, lest they further devalue their Fiat Currencies and Treasury Securities, and so they will not alarm the Hoi Polloi about the intensifying Price Inflation (e.g., 9.24% in the U.S. – Note 2) which their Ongoing Monetary Inflation is increasingly producing.

In the latest Keiser Report, Max Keiser and Stacy Herbert compare the real financial suicide machine that is the global financial markets to the hypothetical euthanasia coaster that would kill its passengers after an allegedly fun and euphoric ride induces GLOC – G-force induced Loss Of Consciousness. In the financial markets this is achieved by churning clients so rapidly or front running them at faster than the speed of light. In the second half of the show, Max Keiser talks to professor and economist, Constantin Gurdgiev, about the liquidation of IBRC, the bank formerly known as Anglo Irish and how it is that the bank came to collapse in the first place.

sprottIn the midst of the latest epic cartel paper gold and silver raid this week, legendary precious metals expert Eric Sprott sat down with The Doc for an exclusive, MUST LISTEN interview. 
In one of his best and most shocking interviews ever, Eric discusses the latest gold and silver raid, his take on the platinum & palladium markets, the Bundesbank’s recent gold repatriation request and the correlation with massive physical gold buying in Asia, and his view on how the endgame of the Western financial/ debt crisis will play out.

Sprott stated that the Treasury Department’s 2012 GAAP budget deficit report was an astonishing $6.9 Trillion, and this has not been reported in 1 single major news outlet!  He also stated that the US government may be exporting German gold from the NY Fed to China, and that despite their recent apparent success, he expects that one day soon the cartel will be brought to their knees simply by traders standing for delivery of physical metal.

Eric Sprott’s full MUST LISTEN audio interview with The Doc is below:

m9Submitted by Morris Hubbartt:

The public’s level of ownership has declined to a level not seen since the lows of 2008. This indicates gold is probably making a major market bottom.

GDXJ has moved lower, with gigantic volume. This type of selling has driven the key RSI indicator to historical lows.   A rule of thumb is that once RSI goes below 25, buy orders can be placed.   Bearish analysts think that GDXJ has broken down from major support, but I think this is a huge bear trap.  Sentiment, climactic volume, and oscillator action suggest that junior gold stocks are about to reverse and surge higher, stunning the bears!

goldCOTBy SD Contributor Marshall Swing:

Gold & Silver COT Report 2/24/13:

Commercials added 2,026 additional long contracts to their total on the week after tremendous gains last week and covered a huge 6,815 shorts to end the week with 47.11% of all open interest, a huge decrease of 2.35% in their share since last week, and now stand as a group at 189,780,000 ounces net short, which is a decrease of over 44 million net short ounces from the previous week!!!

nuclearSubmitted by Stewart Thomson:

Gold revaluation and money printing are the nuclear weapons arsenal held by government treasury departments.

Gold is going higher, much higher.  It’s going higher because government treasury departments are moving away from quantitative easing involving bonds, and towards QE involving gold.  The gold bears will be destroyed, and everything they made you afraid of will seem ridiculous, in hindsight.  There will be no currency war, but there will be co-ordinated devaluation of all G20 currencies against gold, just like there was in the 1930s.

I consider the idea that the gold bull market is over to be “beyond ridiculous”.  I would argue that for all practical government intents and purposes, it’s barely startedBen Bernanke will soon have a hard decision to make.  He can either accelerate QE, or he can pout in a corner, while President Obama dons a gold revaluation mask.

Zeal022213BSubmitted by Adam Hamilton, Zeal

Gold got crushed this week in what can only be described as a capitulation.  Cascading selling took on a life of its own as the yellow metal knifed through multiple key support lines.  Newsflow exacerbated gold’s free fall, as extreme fear tainted everything with a heavy pall of bearishness.  Gold bears were euphoric, coming out in droves to pronounce doom on the metal.  But capitulations are actually very bullish events.

sprottLegendary precious metals expert Eric Sprott sat down with The Doc for an exclusive interview to discuss the Bundesbank’s gold repatriation request last month, and the correlation with massive physical gold buying in Asia. 

Eric pointed out that the US government exported 30% of US annual gold production to Hong Kong in December alone, and stated that as there is no excess gold available in the US, all of his analysis suggests that the US gov’t may be exporting the German, Dutch, & Austrian gold reserves held at the NY Fed to China in an attempt to kick the can and forestall the inevitable financial collapse a little longer.

Eric Sprott’s Shocking interview with The Doc is below:


ViaMat, one of the world’s leading precious metals storage firms (used by BullionVault & GoldMoney as primary storage provider) has just notified  US customers that effective April 30th 2013, it will discontinue private storage of precious metals for all clients with a US tax liability.   Clients have until April 30th to notify Via Mat International where they would like their physical bullion dispatched to.

All signs point to an imminent escalation in capital controls in the US, just as we predicted last year as the controls were issued by Southern Euro-zone members such as Italy. 

gold repatriationTaking inspiration from George Orwell’s “1984,” renowned BMO advisor Don Coxe has coined the expression “Weakness is Strength” to describe the current economic situation. In a far-ranging interview with The Gold Report, Coxe explains how an international regime of weak currencies has set the scene for a upsurge in the price of gold shares and believes that gold will return as a preferred hedge against loss of value because inflation is inevitable.