By SRSrocco:

According to this GoldCore article posted on SD this morning, the Chinese silver demand will hit 7,700 metric tonnes in 2012Last year India’s silver demand was 4,000+ metric tonnes.  We can safely assume they should have about the same figure in 2012.

This means Indian and Chinese silver demand alone will account for 50% of global silver mine supply!!!

Max Keiser and Stacy Herbert discuss how it is that Gordon Brown’s Bottom turned into an audit the gold movement in Germany. They also discuss the mother of all bond bubbles getting set to burst and all that will be left in the Bank of England ‘gold’ vaults are a big pile of gilts. In the second half of the show, Max Keiser talks to Dominic Frisby, author of Life After the State, about Germany’s gold quest, the future of relations between the US and Germany if the gold is not there and about ‘life after the state.’

Submitted by SD reader Jack

Sometimes we need to look back in history to “connect the dots”. In 1999 Gordon Brown started selling England’s gold into the market place. This was done by auction and announced. Coordinated as if it was meant to keep prices low. Most people think Gordon Brown was just stupid. It would now appear that we have now found the reason for this market manipulation of gold at the time.

The 400 tons of gold that Gordon Brown dumped on the market between 1999 and 2001 (60% of the UK’s gold reserves) likely went DIRECTLY TO THE BULLION BANKS FOR THE SOLE PURPOSE OF MEETING THE BUNDESBANK’S 1000 TON GOLD REPATRIATION REQUEST!!

By SRSrocco:

In less than two years, the Chinese Mint has increased the production of its 1 oz Chinese Silver Panda 1233%, from 600,000 per year to 8 million in 2012.

Even though this is certainly a massive increase in just two short years…. this may only be the beginning of something really big that is being planned by the Chinese Mint.

According to Louis Golino’s article China Strives to Make Silver Pandas as Popular as American Silver Eagles“, we have just begun to see just how many Silver Pandas the Chinese plan on minting.

By Ron Paul:

Until the late 1990s, individuals interested in Austrian economics, U.S. constitutional history, and libertarian philosophy had few sources of information.  They had to spend hours scouring used book stores or the back pages of obscure libertarian periodicals to find the great works of Mises, Rothbard, Hayek, and other giants of liberty.  Local library and university collections ignored libertarian politics and economics.

Today, however, the greatest classics of libertarian thought, libertarian philosophy, and libertarian economics are available instantly to anyone with internet access.  Thanks to the internet, it is easier than ever before for liberty activists to spread news and other information regarding the evils of government power and the benefits of freedomFor the first time in human history, supporters of liberty around the world can share information across borders quickly and cheaply.  Without the filter of government censors, this information emboldens millions to question governments and promote liberty.

This is why liberty-minded Americans must do everything possible to oppose– and stop– government attempts to censor or limit the free flow of information online.

After being capped and stuffed below $1700 and $32 throughout the trading day Wednesday, gold and silver rallied overnight just prior to the London open, and have consolidated above $1700 and $32 throughout London trading and early in Thursday’s COMEX session.
With $31.50 again holding as support in silver, is the 3 week correction finally over?

On Monday, we reported that the German Financial Accountability Office had mandated the Bundesbank repatriate 150 tons of German gold from the NY Fed over the next 3 years.   While this was to be expected and even inevitable in the wake of Venezuela’s gold repatriation in 2011 as well as global rehypothecation concerns, a previously classified report leaked today has revealed a much larger German gold repatriation has already occurred- from 2000-01!!

The previously classified report reveals that the Bundesbank withdrew nearly 1,000 tons of physical gold from the Bank of England in 2000-2001, decreasing Germany’s gold holdings in London from 1,440 tons to 500 tons.

Let that sink in for a moment.  Germany withdrew 1,000 tons of physical gold from the Bank of England at the EXACT TIME that gold bottomed and began its decade long bull run.   Did Germany pull the carpet out from under the cartel gold leasing party and ignite gold’s secular bull market in 2000?

Bloomberg reports that Chinese silver demand is set to climb nearly 10% next year as investors look to preserve their wealth. Although China as the 2nd largest world economy may be in an economic slump, investors are seeking out silver as a value alternative investment.  Silver climbed 15% this year and ETF’s holding silver have gained 6.5%. Research from Beijing Antaike said that 33% of the country’s demand comes from jewellery and coins, the rest for use in photography, solar panels electrical appliances.  “Many producers and investors have hoarded the precious metal in the form of ingots or unwrought silver.” After the US Fed’s QE1, (December 2008-March 2010) silver rocketed 53%, almost twice the jump as gold, and for QE2, (ending June 2011) silver rose 24%. Morgan Stanley predicts that silver will again return more than gold after QE3 was announced this September. Chinese national statistics show that jewellery sales rose 19.3% for the first eight months compared to last year.  “I’m bullish on silver, so I personally have stockpiled 3 tons of it at home,” Yang Guohui, president at Hunan Yishui Rare & Precious Metals Recycling Co., said in Xiamen on Oct. 17. Yishui is based in Yongxing County, Hunan province, where about 20 percent of China’s silver is from, according to Huang Xiaoming, head of the local precious metals management bureau.

The legendary Jim Sinclair sent an email alert to subscribers tonight advising readers that QE∞ cannot stop even temporarily or the dollar would collapse due to the economic implications. 

Sinclair states the current bullion bank generated corrections in the metals are nearing completions, and guarantees that gold will trade above $3,500/oz. 

Economist John Williams says the latest round of “open-ended” QE has set the table for a global “dollar sell-off” and “hyperinflation” no later than 2014.  Williams says, “There’s no way the consumer can fuel the economic recovery, and there is no way we’re going to see one in the near future. The Treasury is going to have funding problems, and that means the deficit gets a lot worse.”

With the recent talk that the Fed might increase the money printing Williams charges, “The Fed’s primary concern is to keep the banking system afloat, and they’re not doing so well with that.”  Williams contends there is 12 trillion in liquid dollar assets held outside the U.S.  and states it is only a matter of time before all the Fed money printing will “trigger a sell-off . . . and that will provide the early start of the hyperinflation.”  You think the U.S. is better off today than it was in the last meltdown?  Not according to Williams, he thinks, “. . . things have gotten a lot worse.”  Join Greg Hunter as he goes One-on-One with John Williams of

In this MUST WATCH  video, Jim Rickards discusses ‘currency war games’ and how the in progress currency war between the US/West and China/Russia is likely to be played out.  Not surprisingly, GOLD plays a pivotal role in the currency war games.

The end of the current fiat monetary system is coming, and a GOLD BACKED CURRENCY will replace the fiat petro-dollar.

  • Fed leaves QE3 at $40 billion in MBS purchases/month
  • Op-twist to continue through end of 2012- bringing total long-term treasury purchases to $85 b/month
  • ZIRP to continue through MID -2015
  • Surprisingly, silver popping on the no-news

Fulll FOMC statement below:

Submitted by AGXIIK:

Governments are good at two things:  Waging war and debasing the currency.  These two actions are aided and abetted by a central bank.  And thrust into the middle of this morass of printing and war is the common man.    The middle class; the lower class; the common people are ground to dust under the jackboots of the psychopaths, deviants and escapees from insane asylum.

Richard Nixon committed the greatest  financial crimes of the last 2,000 years, one that will go down in history as the most vicious since the Roman empire began debasing their precious metal currency. Nixon will be regarded as the 20th Century’s Diocletian.  He took this country; our country, off the gold standard.  And thus began the decline and fall of the USSA Empire.
The tragedy following  this act has resulted in continual and unrelenting war with a Defense budget that cost a minimum of 25% of the entire Federal budget.  And who paid for it?   We, the long suffering middle class. 

Submitted by SD Contributor SRSrocco:

If we take a look at Freeport-McMoRan’s Q3 Report, we see that the base miners balance sheets continue to erode as costs increase while ore grades and the market price for commodities continue to decline.

Alt Investors invited The Doc & Turd Ferguson back for another round-table interview Tuesday night.  We discussed the current gold and silver corrections, our outlooks for the metals over the next 6-12 months, as well as this week’s big story that Germany will repatriate 150 tons of gold from the NY Fed.

Unlcear if as on recent occasions, there will be 7,000 policemen protecting him: Mario Draghi travels to Berlin today to meet with key German parliament members involved in the eurozone crisis policy.  This private meeting is the ECB president’s effort to defend his new bond buying plan as a legitimate instrument in its monetary policy arsenal. Germany’s legislative backing is critical for Draghi’s plan to buy up Spanish and other eurozone area government bonds. The Bundesbank president, Jens Weidmann, says the program is tantamount to financing governments by printing money, which is prohibited by the ECB’s founding treaty. ECB presidents normally give evidence to the European parliament but rarely if ever address national legislatures especially behind closed doors.  This journey is highly unusual but a critical sell for Draghi. Today’s session will be followed by a press briefing at 4pm local time by Mr. Draghi and Bundestag leader Norbert Lammert.

Submitted by Stewart Thomson:

In the current environment, it’s very difficult to envision Ben Bernanke doing anything that is fundamentally negative for gold.

The next FOMC meeting begins Tuesday, and a statement will be made Wednesday.  Some governors may make statements to the press before the meeting is adjourned, which could affect the price of gold.

A substantial move over $1800 will turn that area into a major platform of price support.  Gold has touched the $1800 price zone 3 times, and sold off strongly each time. Many institutional money have expressed a willingness to buy gold above $1800, and I believe they are sincere about doing so.  If gold trades above that “HSR platform”, you will be in the company of some very powerful investors, as you buy.

In perhaps the biggest story in gold since Hugo Chavez sent shock-waves throughout the gold market in mid 2011 (and propelled gold up $300 to a record $1915), the German Federal Accountability Office has ruled that the Bundesbank must conduct an audit on German Central Bank gold holdings, and in anticipation, has begun the repatriation of German gold from the NY Fed.   The Bundesbank will request the NY Fed ship 50 tones of German gold back to the motherland a year for the next 3 years!

It appears de Germans are about to receive a crash course in the lesson He who owns the gold makes the rules (aka possession is 999/1000ths of the law).

Assuming that the NY Fed does decide to comply with the Bundesbank’s request to keep up appearances for the other central banks, we wish the cartel luck in finding 150 tons of TUNGSTEN FREE PHYZZ over the next 3 years as the Bundesbank reportedly will PHYSICALLY VERIFY THE GOLD.   So much for the cartel plans to fill repatriation requests with  tungsten salted phyzz.

While it was likely a fat finger of the data entry variety by an employee of the bankrupt, silver’s 24 hour live chart reveals a massive $1.50 spike from $32 to $33.50 just prior to midnight eastern. 

Unfortunately for Blythe and her monkeys, the spike failed to trigger a single liquidation algo on physical silver holdings.
With the October FOMC statement due later Wednesday, perhaps a late night caption contest is in order?