Jim Grant, who recently crucified the Fed in an interview with Bloomberg calling the Fed the vampire squid of vampire squids, continues to expose the corruption of the federal reserve.
In an interview today with Bloomberg Radio, Grant discussed the Fed’s intervention in the stock market, and states that the Fed is likely to intervene further with additional QE to continue the stock bubble they have inflated with funny money, and that ‘the fed owns the stock market‘.

If the Fed owns the entire equity sector, is there anyone left that believes that the fed does not also own the much more important treasury bond, gold, and silver markets?

Full interview below:

SD reader FW discusses today’s positive action in the mining sector, and shares our sentiments that the downside in gold and silver from here is minimal compared to the blast-off that will come with an official QE3 announcement later in 2012.

Mining Stocks Bounce Indicating a Bottom?

The mining stocks are catching a pretty strong bid right now.  They have been leading the bounce-back in today’s PM spot prices.  Silver bell-wheathers like Silver Wheaton are strong today, and mid-sized producers are getting a re-look as Endeavour Silver reported some nice Q1 results yesterday.  Heck, even the bloated HUI index is up.

The Eurozone is considering withholding the next Greek payment of €5.2 billion due to concerns over Greece renigging on their agreed austerity measures.
As these payments are going 100% to bailout the banks who lent Greece money and not Greece itself, things could quickly get interesting.

A quote from the greatest trader (Jesse Livermore) who ever lived seems apropos with today’s continued correction in gold and silver.  Do you have the internal fortitude to be right and sit tight, and add to your positions into price weakness?  Are you 100% sure of your fundamental convictions, or will you allow your emotions to panic you into changing your perspective and philosophy?

Gold was trading above $1900 last August on fears of a Eurozone conflagration and breakup. 
Today gold is trading at $1580 on fears of a Eurozone conflagration and breakup. 

Gold Cover Clause Guidance
By Jim Willie of GoldenJackass.com

The propaganda against gold has intensified with Munger and Gates, unqualified to be sure

that jewelry demand is down actually confirms the gold bull

investment demand is much greater than jewelry demand

to claim that gold supply is insufficient to accommodate a gold standard is rubbish

the argument actually highlights the gargantuan expansion of the monetary base

which urges a gold price an order of magnitude higher, like near $12,000/oz

a 5% gold cover clause would be perfect to set a new global trade currency in motion

actually, several new gold-backed currencies could simultaneously be launched

that way, the new currencies form the core and the US & UK would be outside looking in

the gold market is in a pitched battle still, with enormous orders being filled

the Eastern Coalition continues to drain Western cartel member banks of their gold

the cartel banks are insolvent and lately, they are suffering from illiquidity

they have wrecked sovereign bond positions and off-side FOREX positions

in the margin call, they are being forced to sell out their gold reserves for the precious cash

the gold price will rise when the East is satisfied with their gold raids in the current round

Gold hit a 4 month low today despite deepening worries that the political upheaval in Greece may sink the country into chaos and endanger the euro zone’s efforts to end the debt crisis – possibly leading to contagion and or a monetary crisis. Some decent demand from South East Asia has been reported at the $1,600/oz level and there are also reports from Reuters of a “semi-official buyer of gold” emerging “on dip below $1,600/oz”.  Gold’s weakness yesterday may have been again due to dollar strength and oil weakness – oil is now below $97 a barrel (NYMEX). It may also have been due to wholesale liquidation which created a new bout of “risk off” which has seen global equities and commodities all come under pressure. However, gold’s weakness yesterday was also contributed to by more unusual trading activity. As trading in New York got underway, there was an unusually large bout of selling with some 6,000 gold futures contracts sold in minutes and this led to gold’s initial $10 fall to the $1,615/oz level. Momentum driven algorithm trading may have then led to follow through selling and the initial sell off may have emboldened tech traders to sell more leading to the falls below $1,600/oz.

Live 24 hours gold chart [Kitco Inc.]*Update: Silver bounced at support just above $29.50, and gold has bounced temporarily at $1580.

Gold and silver continue to sell-off throughout the overnight Asian session ahead of the 3am EST London open.

Gold has broken back below $1600 plunging as low as $1588.  Gold is now hanging precariously on the bottom of its long term uptrend channel, and don’t think for a second the cartel is not fully aware of this fact.

Greece’s leftist leader says the bailout deal is dead. Greek stocks plummet to 20 year lows. The S&P 500 takes a plunge to a two-month low, rebounds to a one-month low. Fitch says greece leaving euro would be bearable while UBS legend Art Cashin explains how Greece could end up back on the drachma. Wow! The headlines went from elections to drachma in less than 48 hours.

We told you Greece was a going to be a big deal. We speak to investor Jim Rogers about real solutions.

The legendary Jim Sinclair opines on today’s vicious sell-offs in gold and silver, stating that Alf Fields is correct that the gold price has bottomed in this reaction.
Sinclair states that there is a global stock market sell off today which is totally unacceptable as it pertains to the US market in an election year. Liquidity floats all boats and all boats are screaming for that liquidity today.

From Jim Sinclair:

The Silver Institute has released the results of their silver retailer jewelry survey, which revealed a massive increase in silver jewelry sales in 2011 among the majority of retailers and demonstrated strong results on all measures.

  • -77% of jewelry retailers said their silver jewelry sales increased in 2011 with 27% having an increase of over 25%;
  • -53% of retailers rated silver jewelry as having provided the best maintained margin during the 2011 Holiday Season; and
  • -Silver jewelry represented, on average, 37% of retailer unit volume and 27% of dollar volume.

GoldSilver.com’s Victor Huerta sits down with Mexican Billionaire Hugo Salinas Price in this excellent interview.
Price discusses the tremendous shock Americans are headed towards due to the destruction of the dollar and recommends the protection of sound money such as silver for the coming currency destruction and calamity.

China’s gold imports from Hong Kong surged over 6-fold year over year in Q1, from 19,729 kg to 135,529 kg (135.53 tonnes).
Imports rose an astonishing 59% month over month!

Clearly SD readers aren’t the only ones Stacking the Smack! 

Mainland China’s gold imports from Hong Kong surged more than sixfold in the first quarter, adding to signs that the country may displace India as the world’s largest consumer of the precious metal on an annual basis.

With the first week of May in the books, US Silver Eagle sales have failed to pick up the pace from April’s weak sales which saw only 1,520,000 ounces sold, which would have been the lowest monthly sales total in several years were it not for February’s total of 1,490,000 ounces.

The Mint has sold only 335,000 Eagles month to date- on pace roughly for another 1.5 million ounce month-the 3rd such in the first 5 months of the year.

Yahoo Biz’ metals update states that silver is in bad shape trading at $29.75/ barrel.
As there are approximately 50,000 ounces of silver to a barrel, that equals $0.00055/oz.
Blythe (and The Doc) could only dream about the cartel knocking the price of silver down to $0.00055/oz.
The Doc could empty the last 34 million registered ounces from the COMEX for 2,000 federal reserve fiat notes.

Gold and silver are getting hammered this morning, as gold is flirting with new lows for the entire correction at $1610, and silver took out critical support at $30, and is now nearing $29.25.

With silver’s support breached at $30, it is now likely that silver will see $38-$38.50 which is the next strong support level, and possibly even test the double bottom placed near $26. 

While Turkey has assured the U.S. government it will cut purchases of oil from Iran by 20% this year, its total trade with the Islamic Republic increased 47% to $4.8 billion in the first quarter from a year earlier. Sanctions aimed at isolating Iran because of its nuclear program, combined with revolutions in the Middle East, have spurred a tripling in the region’s purchases of Turkish precious metals and jewels to $942 million in the first three months, from $282 million in the same period last year. This 30% increase in demand is contributing to gold remaining above $1,600/oz in what has all the hallmarks of another period of consolidation prior to higher prices. “Turkey is exporting massive quantities of gold to Iran and Arab Spring countries as citizens in those countries switch to portable wealth,” Mert Yildiz, chief economist for Turkey at Renaissance Capital, told Bloomberg on April 30. The increase in trade with Iran comes as sanctions make it harder for trading partners such as Turkey, India and China to pay in dollars and euros. Iran said in February it would accept payment in any local currency or gold. Reuters report today that Iran is accepting payments in yuan for some of the crude oil it supplies to China, the Iranian ambassador to the United Arab Emirates said on Tuesday. “Yes, that is correct,” Mohammed Reza Fayyaz told Reuters when asked to comment on an earlier report in The Financial Times.