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The Doc & Eric Dubin cover a lot of ground on this week’s show, including:

  • Doc’s report on physical market trends and our outlook for precious metals

  • Constructive mining shares & general metals price action despite Friday’s trading

  • Asian-based physical demand remains strong;  shortages are still being reported

  • The Fed & Treasury starting to lose their grip on the bond market, as free market forces begin to overwhelm manipulation- the bond market may well roll over before Bernanke can get out of Dodge!

polnyGold has bottomed at $1321.
I know not one person that has been willing to go on the record and post what I have posted. No individual has yet called the bottom for gold, and I have already gone on the record announcing the bottom only two days after gold hit $1321. The recent drop (just a re-test, in my view) was just four trading days and only $100 off—and folks seem to have forgotten that my Bottom call of April 18 has (so far) held beautifully! I sold my gold at $1900, as you are aware, and the $1321 bottom has not failed me.

For those of you who simply buy and hold Gold and Silver: sleep well, my friends, and know that your decision is a wise one into the year 2020, when they will top!
I have received numerous requests for an Update to the prior dates and charts posted on jsmineset.com.  I have waited this week as I have been closely watching the gold market, and I wanted to be certain of the next date I post.

Vanessa ColletteWith mining stocks’ sentiment at rock bottom- literally hitting zero (as was seen in October-Nov 2008), David Morgan joins the lovely Vanessa Collette at the World Resource Investment Conference to discuss where the metals and miners are headed to from here.
Morgan tells Collette that after April’s epic smash the miners are currently a better value than the metals, but that he expects big things ahead for both gold and silver.
Morgan discusses the last bull market in silver, which saw silver achieve 87.5% of the gains for the entire bull market in the last 7 months of the 15 year run, and states he expects a similar manic bubble to end the current massive secular gold and silver bull market.

Morgan’s must watch interview is below:

gold eagleWhen does the current unsustainable and lopsided business model of the precious metals market blow-up in a default?   To address this question, Catherine Austin Fitts, a former Wall Street insider and Assistant Secretary in the Bush I administration, takes us on a tour of the present ‘slow burn’ of Central Planning with the two key dynamics at play. Though she feels the primary trend of Gold is up over the long term, there are critical short term hurdles now hindering the central planners.
Both impact Gold. Within this context Catherine defines what she refers to as the Breakaway Civilization and how “Mr. Global” operates within it:

dollar collapseDavid Quintieri, author of “The Money GPS,” is so worried about the unfolding economic calamity he wrote a book about how to survive it.
Quintieri says, “There is no other way out but a collapse . . . the collapse isn’t coming, we’ve already begun.One sure sign the collapse is in full swing, Quintieri contends, “There’s no semblance of a free market what-so-ever, that’s completely gone. The numbers you see on TV and newspapers are completely fraudulent.” So, what do you need to do to prepare? Quintieri says, “When the collapse happens, those holding real assets are going to be the ones with all the wealth.” Don’t expect cash in the bank to help you either, Quintieri predicts, “They’re going to go money printing all the way. But it doesn’t go to the people, it goes to the banks. And whatever money’s left behind, they’re going to do a bail-in with it.” Join Greg Hunter as he goes One-on-One with David Quintieri.

graduated37 million Americans currently have outstanding student loans, and the delinquency rate on those student loans has now reached a level never seen before.  According to a new report that was just released by the U.S. Department of Education, 11 percent of all student loans are at least 90 days delinquentThat is a brand new record high, and it is almost double the rate of a decade ago.  Total student loan debt exceeds a trillion dollars, and it is now the second largest category of consumer debt after home mortgages.  The student loan debt bubble has been growing particularly rapidly in recent years.  According to the Federal Reserve, the total amount of student loan debt has risen by 275 percent since 2003.  That is a staggering figure.  Millions upon millions of young college graduates are entering the “real world” only to discover that they are already financially crippled for decades to come by oppressive student loan debt burdens.  Large numbers of young people are even putting off buying homes or getting married simply because of student loan debt.
Tuition costs at public universities have risen by 27 percent over the past five years, and there appears to be no end in sight.
So why is this happening? 

Weakness in gold and silver is leading to robust demand internationally as store of value buyers accumulate gold and silver on this dip. This is particularly the case in Asia where premiums remain robust and supply demand imbalances remain. The persistent strong demand of this week began on the price falls in April. This demand is clearly seen in the London gold and silver trading data released by the London Bullion Market Association (LBMA) yesterday. London gold trading jumped to a 20 month high in April and silver volumes surged 25% after the price falls led to an increase in physical buying, the LBMA said in a report. Trading in gold averaged 24.1 million ounces a day in the London market, the most for any month since gold reached record nominal highs in August 2011, the LBMA said in a statement yesterday as reported by Bloomberg.  The 24.1 million ounces was a 10% increase on March when 21.8 million ounces a day were traded. Silver volume surged nearly 25% to 165.2 million ounces a day, up from 132.5 million ounces in March. There were 5,395 gold transactions on average per day, the highest on record, while silver transfers at 1,007 a day were the second-highest ever, according to the report.

gold eagleJames Turk predicts, “It’s inevitable you are going to see bail-ins as we go forward from here because the capital just doesn’t exist.” He also says gold is going much higher in a scramble for tangible assets. Turk points out, “The problems we’ve been confronting the past several years haven’t gone away . . . governments have been trying to buy time, but they aren’t coming up with any solutions.”
Join Greg Hunter as he goes One-on-One with Gold expert James Turk.

 

Elijah Johnson has released an interview with Ann Barnhardt of the former Barnhardt Capital Management, who warned SD readers last summer (9 months prior to the Cyprus bail-in) that if you are still in these markets you are either stupid or on drugs!
Barnhardt, who has been under attack by the IRS, shocks by stating that Obama intends to INTENTIONALLY collapse the US economy!

Barnhardt’s full interview is below:

A new set of regulations that most people have never even heard of that was developed by an immensely powerful central banking organization that most people do not even know exists is going to have a dramatic effect on the global financial system over the next several years.  The new set of regulations is known as “Basel III”, and it was developed by the Bank for International Settlements.  The Bank for International Settlements has been called “the central bank for central banks”, and it is headquartered in Basel, Switzerland.  58 major central banks (including the Federal Reserve) belong to the Bank for International Settlements, and the decisions made in Basel often have more of an impact on the direction of the global economy than anything the president of the United States or the U.S. Congress are doing.  All you have to do is to look back at the last financial crisis to see an example of this.  Basel II and Basel 2.5 played a major role in precipitating the subprime mortgage meltdown.  Now a new set of regulations known as “Basel III” are being rolled out.  The implementation of these new regulations is beginning this year, and they will be completely phased in by 2019.  These new regulations dramatically increase capital requirements and significantly restrict the use of leverage.  Those certainly sound like good goals, the problem is that the entire global financial system is based on credit at this point, and these new regulations are going to substantially reduce the flow of credit.
The only way that the giant debt bubble that we are all living in can continue to persist is if it continues to expand.  By restricting the flow of credit, these new regulations threaten to burst the debt bubble and bring down the entire global economy.

Not that the current global financial system is sustainable by any means.  Anyone with half a brain can see that the global financial system is a pyramid scheme that is destined to collapse… but Basel III may cause it to collapse faster than it might otherwise have.

I believe 2013 will be a NEW RECORD YEAR for sales of both the Silver Eagles & Maples.
According to the Royal Canadian Mint’s newest quarterly report just released, Gold and Silver Maple Leaf sales increased substantially Q1, 2013.  During the first quarter of 2013, Silver Maple Leaf sales were up 65% at 6.6 million ounces compared to 4 million ounces during the same period last year.

The Royal Canadian Mint had a total of 18.1 million Silver Maple Leaf sales in 2012.  If the current sales trend continues, there will be an estimated 23 million Silver Maple Leaf sales for 2013 — 27% higher than 2012.
Even though first quarter 2013 Silver Maple leaf sales were impressive, the increase of Gold Maple leaf sales were even higher.  In the chart below we can see that Gold Maple leaf sales Q1, 2013 were nearly double compared to the same period last year:

Traders and speculators are watching the $1,413/oz resistance level. A daily close above this level will likely trigger the beginnings of a short squeeze. Holdings in the largest bullion-backed exchange-traded product expanded yesterday for the first time since May 9. Strong premiums for gold bars in Asia show that jewellers and investors are busy buying bullion on this dip. In Singapore, Reuters reports that “supply constraints” have sent premiums to “all time highs” at $7 to spot London prices. Animal spirits are returning to the gold market in the ‘Land of the Dragon’ in this the ‘Year of the Snake’. The volume for the Shanghai Gold Exchange’s benchmark cash contract surged to 19,599 kilograms yesterday from 15,641 kilograms the day before. In two days the volumes have nearly doubled and surged from 10,094 kilograms to 19,599 or 94%.

COMEX goldToday’s chart of the day examines the epic plunge in total COMEX gold inventories, as total COMEX registered and eligible gold holdings have nearly been sliced in half over the past 6 months, from nearly 12,000 oz to 7,961 oz, and only a few small withdrawals from breaking the previous lows sit in the 2008 panic low.

To put the COMEX gold inventory plunge in perspective, let’s just say that the 5 year inventory chart resembles silver futures at any day at 8:15am EST.

The financial system of the third largest economy on the planet is starting to come apart at the seams, and the ripple effects are going to be felt all over the globe.  Nobody knew exactly when the Japanese financial system was going to begin to implode, but pretty much everyone knew that a day of reckoning for Japan was coming eventually.  After all, the Japanese economy has been in a slump for over a decade, Japan has a debt to GDP ratio of well over 200 percent and they are spending about 50 percent of all tax revenue on debt service.  In a desperate attempt to revitalize the economy and reduce the debt burden, the Bank of Japan decided a few months ago to start pumping massive amounts of money into the economy.  At first, it seemed to be working.  Economic activity perked up and the Japanese stock market went on a tremendous run.  Unfortunately, there is also a very significant downside to pumping your economy full of money.  Investors start demanding higher returns on their money and interest rates go up.  But the Japanese government cannot afford higher interest rates.  Without super low interest rates, Japanese government finances would totally collapse.  In addition, higher interest rates in the private sector would make it much more difficult for the Japanese economy to expand.  In essence, pretty much the last thing that Japan needs right now is significantly higher interest rates, but that is exactly what the policies of the Bank of Japan are going to produce.
Are we witnessing the beginning of a colossal financial meltdown by the third largest economy on the planet?  The Bank of Japan is starting to lose control, and if Japan goes down hard the crisis could spread to Europe and North America very rapidly.

Rick Rule listed 10 key questions regarding today’s economy. They are:

10 Questions for Precious Metals Investors

  • Is the financial crisis in the Western world over?
  • Have the G20 countries balanced their budget?
  • Did the commercial banks manage to become solvent?
  • Are (real) interest rates positive or negative?

If these are the questions, then gold and silver are two good answers.

collapseJim Sinclair states this morning that the entire US and Western banking system just missed a complete collapse and full bail-in by a hair’s length at the end of the Memorial Day Weekend.

Full details on the US banking system’s narrow miss of a complete systemic collapse and a full banking holiday Tuesday are below:

In violation of the clear language set forth in the United States Constitution, in 1913, congress granted a private banking monopoly exclusive right to manufacture unlimited quantities of legal tender, which has led to the gross distortion, purpose, and dysfunction of the currency we use today.
Over the past 100-years, this arguably treasonous act of congress has severely eroded the self-reliance and sustainability of not only the United States, but also of societies and cultures throughout the world.

Why own gold and silver?  The short answer is that you own gold and silver strictly for insurance purposes.  It’s that simple.
The most astute financial minds recognize that an adequate allocation of one’s net worth apportioned to gold and silver is essential for the well being and sustainability of one’s financial future.
One must understand and respect the historical monetary role of gold and silver within the context of self-reliance, independence, wealth, and freedom to answer this question more fully. 

Jamie DimonBill Black is a former bank regulator who played a central role in prosecuting the corruption responsible for the S&L crisis of the late 1980s. He is one of America’s top experts on financial fraud. And he laments that the US has descended into a type of crony capitalism that makes continued fraud a virtual certainty – while increasingly neutering the safeguards intended to prevent and punish such abuse.
In this extensive interview with Chris Martenson, Bill explains why financial fraud is the most damaging type of fraud and also the hardest to prosecute. He also details how, through crony capitalism, it has become much more prevalent in our markets and political system.

gold eventGold appears to be entering the “summer doldrums” season, but there are some black swan issues that could add a lot of volatility to the market.
One geopolitical event that could be a game-changer for the gold price is the civil war in Syria.  Syria and Israel both have enormous military forces, and President Assad seems to be having a hard time on the domestic front.
The target of the double bottom on the gold chart is $1680, but it only “activates” if gold trades over $1500.  The Syria-Israel conflict could be the geopolitical catalyst that makes it happen.  Short covering by funds would reach almost surreal levels, in such a situation.

Singapore, Shanghai, Dubai, Turkey and western markets continue to see high premiums for gold.
Overnight the volume for the Shanghai Gold Exchange’s cash contract surged 55% to 15,641 kilograms from a two-week low of 10,094 kilograms on May 27.
The Shanghai Futures Exchange announced yesterday that they will begin after-hours trading for gold and silver futures within one or two months.
In Singapore, gold coins and bars are being sold at high premiums compared to the spot price as there is not enough supply in the market to meet the strong demand.    Reuters quoted one broker who said that most of the bullion dealers in Singapore were sold out of bullion and that “everybody is buying and no one is selling.

silver break freeSubmitted by Deepcaster:

“The Fed wants to kill all signs of inflation to hide the damage they’re doing to the middle class. First the Fed leaves food and energy out of the CPI, and then they get the Labor Department to lie about the figures. Their last trick — smash the price of gold and silver. What are they going to do when the bond market (fearful of inflation) collapses? You can’t fool all of the people all of the time.”

I promise you, when the true forces of inflation finally break loose, the Fed won’t be able to disguise what they’ve wrought. When the true forces break out — it will be a national disgrace and an emergency. “Then you will know the truth, and the truth will set you free.” The rest of this year should be something to behold.”