bitcoin silverIf a giant speculative spike occurred in food, the consequence is that poor people starve. When the price crashes, the consequence is that food producers will go bankrupt. As bad as this is, the consequences when the value of money spikes and crashes are incalculably worse.
This is because every business, including food growers, depends on a stable currency.

BernankeCentral Bankers like Allan Greenspan and Ben Bernanke know all about gold, they just don’t express it while they are central bank presidents in office.
When I asked former Dutch Central banker Nout Wellink what he would do if QE proved to be irreversible, in fear of a deflationary collapse, and QE III, IV, etc. would become apparent, he said that he would put his wealth in to physical gold because that would be the most prudent thing to do.
I thought that was a remarkable revelation from the man who in early 2011 forced a Dutch pension fund via a court order to sell most of its gold because it was “not in the interest of the people that were depending on the fund”.

fill and killGold and silver have been smashed below support at $1250 and $19 this morning on a classic post-FOMC day raid.
Gold has been smashed $30 to $1237, and silver is down nearly $1 from Wednesday’s trading with a low of $18.93 before bouncing back above $19.

December existing home sales were released last week by the National Association of Realtors.  Despite the happy headline report of a 1% gain over November, when you factor in the nearly 6% downward revision of November’s previous reported result and look at the 6-month trend in existing home sales, the market is clearly headed back down into the bear trend that started in mid-2005.
Anyone holding onto stock market positions is hereby officially forewarned to get out now.  It’s going to get ugly.  The trade that drove the SPX up at a near-parabolic rate last year and drove gold lower is going to unwind.  Don’t listen to Wall Street.  Wall Street’s only job is to take money from your pocket and put it in theirs.  Just like stocks shocked people to the upside in 2013, gold is going to shock even more people this year with its move higher.

Image: Dees Illustrations

Image: Dees Illustrations

Laurence Kotlikoff Author and Professor of Economics at Boston University joins the SGTReport to discuss the fact that the REAL DEBT of the U.S. government is now $205 TRILLION when unfunded liabilities are actually counted.
Kotlikoff warns, “We have a country that is entirely broke, fiscally broke – it’s probably in worse shape than any developed country. We are in terrible shape, even worse than Detroit because the people doing the accounting are engaged in fallacious accounting…

We havewitnessed several indications pointing towards great stress in the physical gold market.
Just like the London Gold Pool failed in 1969, the current manipulation scheme of gold (and silver prices) cannot be maintained for much longer.
I would be very surprised if the current paper gold game can be continued for another two years. This system might even fall apart in 2014. A default in gold and/or silver futures on the COMEX is a real possibility.
It has happened before in other markets. In such a scenario futures contracts holders will be cash settled.
So I expect the Comex will have to move to cash settlement rather than gold delivery at a certain point in the not too distant future. After such an event the price of gold will be set in Asian markets, like the Shanghai Gold Exchange. I expect gold to jump $1000 in a short period of time and silver prices could easily double overnight.

Jim Willie goldThe primary reason for owning the physical has been as a form of asset protection.  That has not worked well for the past few years as the value of silver and gold have been on the decline, but go beyond just the past few years, however, and the value of the PMs have done very well.
Have other asset classes performed better?  Absolutely!  It then becomes a matter of personal choice if one wants to own PMs, stocks, real estate, Bitcoin, even fiat currency.
Some assets will always outperform other assets.  Gold and silver happen to be in a class of their own, with a proven history, not always as the best protection, at times,  but proven consistently, over time.  They have no third-party counter-risk, and they are perhaps the most recognized and widely accepted assets around the world, bar none.

  • silver smashThe Fed tapers QE an additional $10 Billion to $65 billion/month
  • In light of the cumulative progress toward maximum employment and the improvement in the outlook for labor market conditions, the Committee decided to make a further measured reduction in the pace of its asset purchases.
  • Beginning in February, the Committee will add to its holdings of agency mortgage-backed securities at a pace of $30 billion per month rather than $35 billion per month, and will add to its holdings of longer-term Treasury securities at a pace of $35 billion per month rather than $40 billion per month.
  • Gold & silver smash ready to commence

Bernanke’s last FOMC statement is below:

China credit crisisGold expert Jim Sinclair emerged from a lengthy hiatus from public commentary Tuesday to warn readers that the major US markets will completely implode should Janet Yellen follow through on the Bernanke Fed’s threats to fully taper QE.
Sinclair states that should Yellen taper seriously now, the emerging markets will implode. Should the emerging markets implode, the US major markets will also implode. The dollar would lead on the downside.
Sinclair’s full MUST READ warning is below:

SD contributors including The Doc, Eric Dubin & AGXIIK will once again join SD readers for a LIVE CHAT blog for The Bernanke’s LAST FOMC statement, starting at 1:45pm EST!
Will Bernanke continue the taper before Yellen steps in, or hold serve?  Discuss the event with the SD community LIVE!

market crashOn the weekly chart of the Dow, there is a large and very bearish wedge pattern that has developed.
Many key technical indicators look like barrels full of investors, going over Niagara Falls. While a small relief rally is overdue, I would not touch the Dow on the buy-side, unless it falls to the 13,600 area.
The bottom line is that the Dow is already in trouble, after just one tapering event.
One can only imagine the real panic that US stock market investors would feel, if each subsequent tapering event is accompanied by even bigger falls in price.

Jim WillieRoyal Bank of Scotland (RBS) is heading for an £8 billion loss for 2013, rewarding senior executives massive bonuses despite losses, having to lay aside nearly $5 billion to cover potential litigation claims related to mortgage-backed securities and other high risk products sold before the financial crisis, gouging some of their business clients and now allegations of currency price fixing.
RBS is to stop providing dozens of currency benchmarks, as regulatory rate rigging probes raise doubts about the integrity of daily price fixings in the global foreign exchange and gold markets.
In a memo to clients, the bank said that it would limit its offering of foreign exchange benchmarks to a handful of price fixings, and that it would wind down its internal benchmark, called RBS Fix.

Place your bets wisely because 2014 may turn out to be quite the pivotal year for the markets.  As MSM and Wall Street continue to push the hype regarding the Great U.S. Shale Boom, serious cracks are beginning to appear in the natural gas market.
Also, in another stunning withdrawal, JP Morgan had  an additional 321,500 oz  gold ounces removed from its vaults today.  Since last Thursday, JP Morgan has lost 44% (20 metric tons = 643,000 oz) of its gold inventories.
February is going to be a big delivery month with nearly 40 metric tons standing for delivery at the Comex. 
It will be interesting to see if the Comex has the ability to settle with physical gold… or if will they be forced to settle paper gold contracts with cash only.
At some point in time, we are going to see a DEFAULT on the Comex.

RationingBrotherJohnF returns with a public silver update discussing the US Mint’s authorized dealer rationing of Silver Eagles to begin 2014.
Is the rationing a sign of a silver shortage, or is the US Mint simply incompetent?
BrotherJohnF’s Silver Update: Eagle Rationing is below:

gold MSM MopeI’m going to clear the air on this matter.  For over 2 years I’ve been writing about the impending federal takeovers of pension plans.
10 countries in the Europe and South America have engaged in pension theft, conversion or expropriation to fund government operations. 
It is quite likely that we will see more of this theft in 2014, and before the financial crisis is over, probably from the TSP.
The brokerages will be completely compliant with these actions just like the Bail-in provisions signed by the FDIC, FED Bank of Canada and BOE, as was reported here on Silver Doctors in 2013.
Like Detroit with its complete expropriation of the $11,000,000,000 in pension plan funds, the Feds will use the $1.6 trillion in the TSP as they see fit.  They are patterning this on Poland and the NDRP.  Poland recently confiscated 28 billion in Euros to reduce their country debt to 56%  of the GDP.
The government simply took the funds from the private and government pension plans WITHOUT ANY COMPENSATION. 
Surely that could never happen here!

Financial crisis fears are spiking this afternoon as one of Russia’s largest 200 banks by assets, ‘My Bank’ has reportedly halted all cash withdrawals for one week.
Officials of My Bank have refused to comment after news of the bank halting all withdrawals was leaked early Monday by a call center employee.

gun forcedThose who have been delaying moving their retirement funds out of the system on the account of early withdrawal taxes may want to take notice.
If the official 2012 year end notification an SD reader
received from the TSP  is any indication, it appears that our prediction of forced movement of 401k, IRA, private & public pension funds into US Treasury bonds may be closer than ever.
As can be clearly seen via the document below, the retired former employee of the Social Security Administration has received official notice that all future 401k contributions have been moved from his prior allocation into 100% US treasury bonds!

mali goldIt appears that we may have finally found The Bottom in this drawn out and painful decline.
Of the more encouraging signs since the first of the year has been the UP tick in the HUI and most of the mining stocks.
Is this just a blip or are we in the early stages of a reversal and rally?

And if we have found The Bottom in the shares, which ones should we consider possessing as the rally continues? C’mon in. Let’s take a look.

SGE foreign exchange gold systemAnother astounding trading week on the SGE; from January 13th to 17th physical withdrawals from the SGE vaults accounted for 60 tons of gold, with 159 tons of phyzz withdrawn year to date!
Although withdrawals are down 25 % from the previous week, the amount is still well above weekly global mine production.

snapIn this interview with Finance & Liberty’s Elijah Johnson, Greg Hunter discusses:
-Germany’s top financial regulator says that precious metals manipulation is worse than the LIBOR rigging scandal
– The Federal Reserve has NO GOLD
– Those in Washington Know We Are Headed Towards ECONOMIC Crisis
– China buying up economic power from the United States?
– Current crisis is threatening our personal liberties
Financial collapse will occur within a year, “This is a mathematical calculation that we’re headed for another financial calamity

Fukushima Radiation - University Of New South WalesMultiple independent tests have confirmed that levels of nuclear radiation are being detected on California beaches that are more than 10 times the normal level.  Many believe that this is the result of highly radioactive water from Fukushima that has crossed the Pacific Ocean and is now washing up on California beaches.  Others are blaming the radiation spikes on “natural sources”, but they can never seem to identify what those natural sources actually are.  If this radiation is from Fukushima, it is only going to get worse over time.  Every single day, another 300 tons of highly radioactive water gets released into the Pacific Ocean at Fukushima.  Some of these radioactive elements have half-lives of about 30 years, so the total amount of radioactive material in the Pacific is continually growing and it will be with us for a very long time.  As this highly radioactive water hits the west coast of the United States, a lot of that nuclear material will end up being deposited on our beaches. Scientists all over the world have told us to expect a radioactive ocean plume from Fukushima to hit our shores at some point in 2014.  As you will see below, there is evidence that this is already happening.