Beyond the typical underlying changes in money supply there are very important silver fundamentals that will continue to push the value of physical silver higher and higher.
In this interview with Finance & Liberty’s Elijah Johnson, Mike Rivero discusses the potential for gold confiscation in the wake of a US dollar collapse, and drops the bombshell that the NSA has begun providing Central Banks Around the world with illegal confidential inside information, allowing the Fed & other friendly western central banks (& the TBTF banks that own them) to trade with illegal confidential information.
Rivero’s full interview is below:
Gold will drop hard in 2014. Why? Simple! The national debt will go down because Charles Ponzi believes ObamaCare is a good plan and that congress will cut the budget and actually produce a surplus, a weak job market is limiting gold purchases by the people on food stamps, an economist predicted that gold will drop to $496 in 2014, we expect peace in the mid-east, the Chinese will reduce their purchases of gold in 2014, and a new supply of gold has been discovered in the Sasquatch zone of California. I figure it is “an open and shut case.” Gold prices are going through the floor!
The move in gold can be very quick. I’ll give an example; We hit lows in July of this year and then in the month of August, metal prices turned around. The price of gold was going up but the mining stocks just took off. There were gains of 25%, 75%, 100% in the sector in the space of less than 20 days.
It illustrates how we can move from a market that’s operating basically on a no-bid basis where no one wants to buy, to suddenly getting into a space where no one is offering any stock and prices are forced up as a result of that. I’m quite convinced we’re going to see that again in the not too distant future, and that’s what makes it exciting in this space.”
In this excellent interview with Jan Skoyles, Ben Davies, CEO of Hinde Capital discusses the latest in the gold, silver and bitcoin markets. Davies and Skoyles break down the data on the gold and silver ETFs, check out the physical markets, explore the future of gold for China, discuss the outlook for Bitcoin and then Davies reveals a surprising new shape to certain gold ingots in the black market.
Davies, who predicted the imminent 2011 correction in silver only 3 days ahead of the top gives his views on silver today (there is massive demand at these low levels), and reminds readers that even with 2013’s massive correction (and 60% off the highs in silver), gold and silver remain the top performing asset since the Lehman collapse.
When asked his thoughts on whether the gold bubble has burst Davies replied: Gold has not had any sort of trajectory for any duration as the NASDAQ bubble, or even the recent move in silver which was in real terms hugely undervalued (just to get back to 1980’s real levels silver would need to reach $400). When people talk about gold being in a bubble, its pretty clear there has been no exponential move higher.
Actual invest-able gold is less than 0.5% of global assets ($22o trillion). In the 1960’s with the London gold pool the number was about 5%. It doesn’t take much increase in that number to see a drastic increase in the gold price.
Gold & silver have been monkey hammered this morning on no news, with gold slammed through support at $1250 gapping down to $1230, and silver smashed back under $20, with a last of $19.55!
With Bernanke’s last FOMC meeting coming next Tuesday and Wednesday, it is appearing more and more likely that the cartel is preparing to attempt to force gold and silver below their June 28th lows of $1178 and $18, and initiating a cascade of algo stop selling.
With no meaningful Government and industry association economic reports due out, the Federal Reserve good cop/bad cop comedy routine will be in full force today. Three regional Federal Reserve Bank presidents will be out today making their empty rhetorical speeches either in favor or against reducing QE. But all three represent nothing more than a modified Abbot and Costello slap-stick comedy routine.
The EU agreed new rules yesterday for bank bailouts or “bail-ins.”
The new system will take effect from 2016 but emergency resolutions can be brought forward in the event of banks failing in the interim period. The “bail-in” will require that shareholders, bondholders and importantly now depositors will all suffer ‘haircuts’ or be burnt if a financial institution is in trouble.
The European parliament confirmed in a statement overnight that depositors with more than 100,000 euros ($137,000) would be bailed in after shareholders and bondholders. It is important to note that the 100,000 figure is an arbitrary figure and there is a possibility that this figure could be reduced by an insolvent government faced with an imploding banking system.
What happens when the Dollar finally collapses (AS ALL FIAT CURRENCIES DO) including the $100 trillion in paper assets? Where are investors going to store and protect their wealth?
Because the gold and silver market are so small, any move into the precious metals will make their values increase to insane levels.
The world is awash in ENERGY IOU’s masquerading as paper assets. Gold and silver are not Energy IOU’s, as they are bought and paid for ECONOMIC ENERGY. While this may be hard to quantify with data as the future is hard to predict, we can be rest assured that what happens going forward will be directly related to Energy values and physical assets and not paper trading based on Financialization.
Business as usual in the world will be over when the impact of peak energy is finally felt. Well, let me clarify that…. the market is already feeling the pain of peak oil, but due to the Fed and Central Bank monetary printing it is being masked.
What the h*ll happens when interest rates rise? The whole thing blows up in their face.
Silver and Gold will become great stores of value and excellent investments in the future due to Peaking of the Driver of the Economy — ENERGY.
This week the the Hong Kong Census and Statistics Department officially released their trade numbers from October.
Most significant is the amount of gold net exported to the mainland, up 21 tons from 109 tons in September to 130.2 tons in October, + 19 % m/m, +446 % y/y, just shy of the all time record of 130.3 tons in March, reinforcing an upward trend that began in 2011.
Year to date Hong Kong’s net gold export to the mainland stands at 957 tons, a massive 200% increase relative to the same period in 2012.
When QE1 ended there was a substantial stock market correction, and when QE2 ended there was a substantial stock market correction. And if you will remember, the financial markets threw a massive hissy fit a few months ago when Federal Reserve Chairman Ben Bernanke suggested that the Fed may soon start tapering QE3. Clearly Wall Street does not like it when their supply of monetary heroin is interrupted. The Federal Reserve has tricked the American people into supporting quantitative easing by insisting that it is about “stimulating the economy”, but that has turned out to be a massive hoax.
So what is going to happen when the Fed starts pulling back the monetary crack and the bubble bursts?
“If you repeat a lie often enough, people will believe it.” Sadly, that appears to be the approach that the Obama administration and the mainstream media are taking with the U.S. economy. They seem to believe that if they just keep telling the American people over and over that things are getting better, eventually the American people will believe that it is actually true.
There has been absolutely no employment recovery.
The reality of the matter is that we should have seen some sort of an economic recovery by now. Those running our system have literally been mortgaging the future in a desperate attempt to try to pump up our economic numbers. The federal government has been on the greatest debt binge in U.S. history and the Federal Reserve has been printing money like crazed lunatics. All of that “stimulus” should have had some positive short-term effects on the economy.
Sadly, all of those “emergency measures” do not appear to have done much at all.
BOE Says U.S. “Could Do Today” And U.S Authorities Doing Simulation Exercises.
The U.S. already has in place plans for bail-ins in the event of banks failing. Indeed, the U.S. has conducted simulation exercises with the U.K. in recent weeks and will do so again in 2014.
On October 12, Art Murton, the FDIC official in charge of planning for resolutions, and the Bank of England’s Deputy Governor Paul Tucker, both confirmed that the U.S. system is ready to handle a big-bank collapse.
The Bank of England’s Tucker, who has worked with U.S. regulators on the cross-border hurdles to taking down an international firm said that “U.S. authorities could do it today — and I mean today.”
We know you have been to the 4th circle of hell, broken through support there, and kept dropping into the 6th circle. We know that you refer to the mining stock table on your computer as “The Red Sea”. Even self-medicating doesn’t help much, because that bottle of scotch seems comforting at first but then it reminds you that liquor companies are up 41% over the last two years. For that matter, pretty much EVERYTHING is up 41% in the last two years. Dog poop is probably up 41% in the last two years. So I tell you with complete sincerity that you have my deepest sympathies, and I am truly sorry for what you have been through. You deserved better, and instead you got one of the most bizarre devaluations any of us have ever seen.
That said, I want today to discuss a possible scenario that I have considered, and I believe it may be worthwhile for us to think it through. Please understand I am not saying or predicting this is going to happen, only that it is possible and I want to be ready if it does.
The three-part hypothesis of this post is very simple:
1. Miners have been absolutely slaughtered, diverging tremendously from the overall stock market
2. Stocks in general are overbought and may be poised for a significant correction
3. If this happens, it could take miners to truly insane lows. I want to be ready.
The experience of the last five years with huge budget deficits and zero interest rates has shown the Keynesian approach has failed: no one can claim that attempts to revive our animal spirits have succeeded. And a moment’s thought informs us of the illogicality of stimulating consumer demand and ignoring production.
Unfortunately all this spending on intangible animal spirits has been going on since the 1930s, and has resulted in a stifling debt burden for both governments and their private sectors. Instead, inflation of money and bank credit is increasingly seen as the means to postpone a debt reconciliation that can only result in widespread bankruptcies. By following economic policies that ignored the truth of Say’s Law many governments have got themselves and their citizens into a debt trap from which there is no visible escape.
This week has seen a mighty struggle as the bears tried to push the gold price below the $1200 level. However on both occasions the price rallied strongly afterwards.
Both gold and silver paper markets are currently highly vulnerable to a bear squeeze. Silver has the added problem for the shorts that industrial users, who would have budgeted 2013’s cost of silver at over $30 last December have been buying futures to lock in windfall profits. At the same time with the gold price close to production costs, mine managers have sold gold forward into price rallies to avoid operational losses.
A few more trading sessions like this are likely to undermine the confidence that shorting gold is a good substitute for shorting bonds.
JPM wants their gold back before the current fractional reserve bullion banking system breaks, prices skyrocket again and a new global currency regime takes hold.
And now, for the first time ever, they’ve cornered the Comex gold futures market in order to ensure that it happens.
“QE to infinity” is on the way out, and GDI is in. What is GDI?
It’s “gold demand to infinity”.
Inflating serial asset bubbles is no substitute for rising real incomes.
Income for the bottom 90% has been stagnant for forty years, and has declined 7% in real terms since 2000.
This stagnation is not the “new normal”: the new normal is much worse, as labor’s share of the national income has fallen off a cliff.
Why are we stuck with an economy that only generates serial credit/asset bubbles that crash with catastrophic consequences? The answer is actually fairly straightforward. Let’s start with the ideal conditions for an economy that depends on consumer spending.
In this MUST LISTEN interview, Dr. Dave Janda joins the SGTReport to WAKE UP THE MASSES about Obamacare which Dave says is, “a New World Order BOMB designed to destroy our healthcare system.”
An orthopedic surgeon and the host of ‘Operation Freedom’, Dave says, “I’ve read Obamacare several times, and I’m not even sure that Barack Obama has read Obamacare based on the things that come out of his mouth because he is so factually incorrect about the things he says.”
This conversation quickly becomes a CALL TO ACTION for every listener as Dave explains the only way to fix Obamacare: “There’s ONE solution to Obamacare and this is it, Obamacare has to be IMMEDIATELY repealed. Obamacare is about the ultimate control of the people.”
The United States is crumbling from within, engaging in self-destruction. It has been helped, actually intentionally directed by what we call the New World Order, those elitists who control the entire Western banking system. It has been the purpose of the moneychangers to overtake and destroy from within the capitalistic United States. That plan has succeeded. The New World Order has been in direct charge of the United States since 1933, when the US went bankrupt, shutting down the entire banking system and reopening it with the privately owned, [by the elites], Federal Reserve in charge.
The one asset no banker can control or diminish in value is gold and silver. Both metals are the wooden stake in the heart of all fiat. The answer, at least for us, as to why there has been such a disparity between ever-increasing world demand for gold and silver, and ever decreasing price levels for the past few years, is the control which the financial elites exert over all Western governments.
The US is at the end game of its survival. Those who are buying, accumulating, and personally holding physical gold and silver stand the best chance for economic survival when and as the US “dollar” is devalued and the financial system collapses.