SD readers know that we hold our friend Eric Sprott in the highest regard as one of the few who called the secular gold bull market at the very beginning (along with Jim Sinclair).  Eric has also called this the decade of silver, first stated that the economic recovery has no clothes, and recently kicked off the gold repatriation trend in early October with his research that the Central banks have no gold left.

Eric is one of our very favorite speakers on the metals, and for those unable to attend this year’s Investorium in Manhattan, Mr. Sprott’s full MUST WATCH presentation is below:

By Deepcaster

What are the Keys to Success? It seems intuitively obvious, and is in keeping with our experiences as a practitioners operating in many countries over several decades, that four factors drive relative growth: …competitiveness, indebtedness, culture and luck. In a study that we did … we show how we measured each of these and how they predicted subsequent growth, … focus on one of the components of our ‘Formula for Economic Success; –self-sufficiency–…”

There are many commonly accepted Indicators essential to successful Investing in countries other than one’s own. They include political stability, Reasonable and Enforceable Rules of Law, Reasonable Transparency and a positive Pro-Business Climate.  But perhaps the Most Important Indicator – the degree of Self-Reliance of those nations and individuals in those Nations is not well recognized.  Bridgewater Associates’ Ray Dalio has done Investors and Citizens of all Nations a Great Service by identifying Self-Sufficiency as the Key Trait of Economically Successful Nations and Individuals in those Nations.

The Tylers at ZH have discovered a 1968 memo from the BOE archives sent by the Bank of England to the Federal Reserve revealing that the Fed sent at least 172 bad delivery gold bars to London in the late 1960′s for safekeeping for the German Bundesbank as repayment for swaps.

The memo reveals that London assayers discovered that the Fed through Johnson Matthey sent the Deutsche Bundesbank 172 ”bad delivery” gold bars, and the ”out-turn of the re-melting showed a loss in fine ounces terms four times greater than the gross weight loss”.

The memo also indicates that the Bank of England was willing to keep the discovery private due to the fact that the gold was to be held for the Bundesbank.  A declassified report discovered several weeks ago indicates that the Bundesbank subsequently repatriated 2/3rds of this gold in question from 2000-01.

By Marshall Swing:

Silver COT Report 11/9/12

Commercial paper added a large 1,787 longs on the week but also covered a very large -2,267 shorts to end the week with 45.63% of all open interest, a decrease of -0.75% in their share since last week, and now stand as a group at 248,390,000 ounces net short, which is a decrease of just over 20,000,000 net short ounces from the previous week. 

By SRSrocco:

Well, the third quarter results are now out, and it looks like several of the primary silver miners stated a net income loss for the period.

The three primary silver miners produced 8.1 million ounces of silver during the third quarter of 2012 and all showed a net income loss.  Here we can see that for several of the primary silver miners, the break even cost now for producing silver is now $30 an ounce.

As costs rise, so will the break even price of silver.

The Royal Canadian Mint Silver ETR  is simply absurd. This security is a fractional bullion scam!

The new RCM paper form of silver has several embedded issues which can create the inability of the holder to actually receive the physical silver which they think they are investing in. At the end of the day, when you buy an RCM ETR thinking that you are investing in physical silver and thinking that you can take actual delivery if you want, the RCM has made it extremely burdensome to take actual delivery and can cancel your right to take delivery pretty much at its discretion. I don’t know about anyone else, but if I want to own physical bullion, I would not take the risks embedded in the Royal Canadian Mint ETR. It is nothing more than another version of the fractional ownership paper scam. Wash, rinse, repeat!

The Fed issued a statement Friday morning that they are delaying the implementation of the Basel III capital rules which were to go into effect January 1st. 
Apparently JPM and Goldman whined that they were not ready for the implementation of the new rules, so they have been postponed indefinitely.  Is anyone surprised?

Full Federal Reserve statement below:

U.S. regulators on Friday delayed the effective date of a global agreement on greater bank capital buffers reached in response to the financial crisis of 2008.

In his latest update, Greg Mannarino discusses his outlook on crude oil, and why it is black gold.

Mannarino examines the terminal phase of the US dollar’s decline, which means that not only gold and silver, but oil will soon go super-nova priced in US dollars. 

Mannarino states that the middle class will not be able to cope with the rising cost of food and energy as the Fed’s QE policies continue throughout Bronco’s 2nd term, and the remainer of the middle class’ wealth is distributed to Wall Street.

Paul Mylchreest’s latest Thunder Road Report examines various cyclical indications pointing towards a loss in momentum of the artificial recovery facilitated by Fed stimulus/printing actions.

2013 is shaping up to need another major push on the global reflation trade in the form of colossal amounts of money printing by central banks.When in doubt, it’s fairly certain that central banks can be counted on todo even more of the same. They are also facing an additional headwind which has been overlooked. Beginning next year, new regulations (Dodd-Frank, etc) will require an additional one trillion dollars plus of collateral toback the $648 trillion OTC derivatives market.

Full Thunder Road Report Below:

*Update: Silver now up nearly $1 and closing in on $33 with a last of $32.89

After trading down overnight after once again being pushed back exactly at the cartel’s hard $32.50 cap Thursday afternoon,silver has just made a vertical move from $32.15 to $32.89, slicing through it’s $32.50 cap.

After the vertical move is exhausted, look for silver to potentially retest $32.50, and then extend its gains throughout the remainder of Friday’s trading.  Keep an eye out for an access market raid however, as the bullion banks will likely throw the kitchen sick at the metal in order to prevent a weekly close above the crucial level.

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Get Your Phyzz From The Doc

Kitco News’ Daniela Cambone has released an interview with Scotia Bank’s VP of Commodities Patricia Mohr on the Basel III regulations going into effect on January 1st 2013, in which gold will be reclassified as a tier 1 asset.  As gold regains full status as a financial asset (meaning along with cash and treasuries, gold will be able to be used to meet margin calls), the metal should see substantial new demand from the banking sector.

Full interview below:

Gold is 3.35% higher and silver 4.53% higher this week in US dollars in the aftermath of Obama’s re-election.  Gold in euros looks set to break out above €1,400/oz and is 4.1% higher and in sterling gold has risen 3.7% so far this week. Silver is 5.25% higher in euros and 4.8% higher in pounds. Gold and silver are set for higher weekly closes in all fiat currencies which may negate the recent bearish short term technical picture and set the precious metals up for the traditional yearend rally.  The data clearly shows that November is gold’s strongest month and one of silver’s strongest months. December, January and February are also strong months – prior to a period of weakness is often seen in March.