Gold Speculator - Precious Metal Stock Review

The Most Significant $10 of Your Life

GoldSpeculator — Wed, 08 Sep 2010 23:18:32 GMT

www.preciousmetalstockreview.com
September 8, 2010

The Golden battle lines are drawn and the first day was a bloody one.
The forward line for the bulls are drawn at $1,254, while the forward line for the bears is now $1,263.

It’s nary a $10 difference, that on any other day would not concern myself, nor the large interests currently in the thick of battle. But for now, that very narrow range is in the midst of being attacked hard and fast.

This mornings gyrations were nerve racking, but held on the upper and lower ends.

Right now long term positions are likely best held, while short term positions should have tight stops. I expect this trading range to be broken shortly and this may very well end up being the years most profitable trade if it’s played correctly.

There are several methods to trade this move, some risky, some safer. Personally I like to mix it up with stocks or ETF’s as well as options to leverage the move and really lather the icing on the cake.

The most traded October futures contract shows exactly how much volume there was at the peaks and valley of this narrow range on the 5 minute chart.
Charts tell a tale, and this one was epic!

The daily volume in this futures contract was very high. The 5th highest in three months actually. Funny enough, the largest volume day was the exact bottom near $1,160 in late July.

Please take note of the yellow highlighted areas and match it with the volume (also highlighted) on the lower portion.

It’s not hard to see the incredible battle between the Gold bulls, and Gold bears today at those chart areas. The fact is right now we have a $10 range that is being fiercely protected on both the upper and lower reaches.

It’s times like this that make the trader in me nervous, but excited at the same time with great opportunity just around the corner.

We need to see a break one way or another, and once that break is confirmed then that will likely be the trend for months.

My partial bet is already for a higher price, but that could change very quickly. The market is always right one way or another.

Gold will go higher eventually, and it looks as if it will right now, but even if we do see a correction it’s nothing more than another great sale on physical gold.

This was just a quick note, to note the incredible action today. If you’re already subscribed, be ready. There’s going to be some good money made soon, and if you’re not subscribed, it’s not too late!

Enjoy the show!
Warren

In my free, nearly weekly newsletter I include many links and charts which cannot always be viewed through sites which publish my work. If you are having difficulties viewing them please sign up in the left margin for free at http://www.preciousmetalstockreview.com/ or send an email to warren@preciousmetalstockreview.com with “subscribe” as the subject and receive the newsletter directly in your inbox, links and all. If you would like to subscribe and see what my portfolio consists of please see here.

If you found this information useful, or informative please pass it on to your friends or family.
Free Service
The free weekly newsletter “Precious Metal Stock Review” does not purport to be a financial recommendation service, nor do we profess to be a professional advisement service. Any action taken as a result of reading “Precious Metal Stock Review” is solely the responsibility of the reader. We recommend seeking professional financial advice and performing your own due diligence before acting on any information received through “Precious Metal Stock Review”.

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GLD Sham....WOW!

GoldSpeculator — Mon, 06 Sep 2010 01:21:38 GMT

www.preciousmetalstockreview.com
September 4, 2010

Ahhh, the curves life throws at you sometimes still amaze me!
I’d worked all summer in anticipation of taking a two week vacation...now. I was set to sail through the fabled Northwest Passage on a luxury icebreaker but six hours to the northern “port, if you can call it that, of Kugluktuk the ship ran aground on a large uncharted rock.

We toured around Edmonton awaiting news for a day, visiting the museum and art gallery. Alas, the news came in later that day and was bad. The ship could not free itself and the 16 day voyage was off.

Now it’s apparent that all 2010 expeditions on that particular ship are canceled since it must undergo a rigorous inspection and possibly a repair process.
There are no ports equipped to handle a ship of that size anywhere near it’s current location. It’s going to be a long journey, hopefully not tow, to a port where the ship can be accommodated. I’m guessing either Vancouver or Halifax.
The passengers who were on the ship at the time were all ok and evacuated by the Canadian coast guard almost two days later.

I knew it would be a bit of a wild trip, hence the reason to go, but I never expected the waters were quite that uncharted. In fact the maps used are from 1997, the last time the area was vaguely charted.

Apparently Paul Allen is heading through the passage as I pen this missive too. Would have been fun to run into him on his luxury $100+ million yacht, Octopus.
Maybe next year I’ll get a vacation!

I did however take it pretty easy and enjoy some rays this past week but there are a few pressing things I’d like to bring to your attention, hence the unexpected letter.

The markets were strong on the week, but volume was low making the moves higher suspect. After the Labor Day long weekend we should begin to see volume pick back up and see where these markets really want to go.
Hurricane Earl is hitting here now so Let’s get right into it before I lose my power!

Metals review

The Iraqi war is winding down but the gold war is heating up. Gold rose 0.74% for the week and continues to March higher. It’s got a steep uptrend line which can only last so long.

Right now the $1,250 area is posing resistance as it should. The $1,260 area will be tougher. It would be nice to see a base form here for at least several weeks but as I mentioned in previous letters, it seems as everyone in the mainstream is now bullish on Gold for it’s usual fall rally. That makes me extremely nervous and ready to sell my trading positions.

Please read on for some vital information on the GLD ETF, which saw nice medium volume with higher days as Gold moved up, and lower as Gold consolidated it’s gains.

Silver continued to soar and rose 4.09% for the week. It’s uptrend line is absolutely ridiculously steep and very unsustainable. That cautionary note given, silver is notoriously volatile and erratic. Looking at the recent move, the long, strong resistance area at $18.50 looks like nothing. Someone is pushing the tiny silver market higher, now. It can continue.

This move is long overdue and welcome by myself. For the next area of resistance you have to look back to the early 2008 period to see it’s bull market to date all time high of just over $21. That should be tested in very short order.
The SLV ETF has seen very strong volume on breakout move days higher which is exactly as it should be. Looking at the volume tells me this move is very sustainable for now.

Palladium continued it’s advance moving higher by 5.31% on the week. It continues to lead Platinum and has a stellar chart. Looks like the next stop will be the $550 level which could very well be seen this week, but I’d prefer to see it retest support at $520 and build a bit of a base before continuing it’s strong move higher.

One thing is sure, I wouldn’t want to be short here.

The PALL ETF saw week volume as summer winds down. Having no volume to speak of as price shoots quickly higher makes me nervous, but I still would not be short yet.

Platinum rose by 1.70% for the week after bouncing off the lower end of this $100 trading range. The 200 day moving average should pose some resistance here, but the upper limits of the trading range are all but guaranteed to be hit in the near future.

As summer winds down, so do vacations and I expect the upper limit at $1,600 to be bested on this test likely. That is, unless the general equity markets fall apart. I am happy to be here to see the start of trading after labor day, as nice as the trip through the Northwest Passage would have been.

A slight pick-up in the PPLT ETF volume as Platinum moved higher late in the week is positive. But still, volume is very, very low so I can’t read much into it.
Fundamental Review

Ben Bernanke said recently that he wasn’t as straightforward as he could have been when being questioned by congress on the failure of a major financial institution. So now this begs the question.

Is that a lie and will he be indicted like Roger Clemens?

Fat chance I’d guess. I couldn’t write a stranger story.

There were no failed banks last weekend, nor this past weekend making it a stunning two weeks in a row that the FDIC boys and girls took off.

The Senate is trying to sneak, as they usually do, a bill through which is hidden within a much larger bill. They are basically trying to give themselves the power to shut off the internet in a national emergency. I recall the Iranian elections not so long ago when the same thing occurred. Where do you live? What type of country do you want to live in? George Orwell’s 1984 rings truer every week.

It still does not compute in my mind why so many bills are passed at once to begin with. In reality every bill is a totally separate issue. If it was the case that every bill had to be scrutinized individually, we would live within a far less complex web of rules. I dare say, it would be a much better world.

The media’s controlling interests control most of the world in reality and having them be able to take this step is just too much, but I’m sure it will happen. And who’s to say what a national emergency is in the first place?

If, god forbid, a 911 event were to occur again why would the internet be shut down? This bill basically gives the US government and their keepers power to shut down any part of the internet they don’t like at any time for any reason. And if they don’t have a reason they can make one up since you won’t be able to verify it on the internet. Be prepared to say goodbye to your favourite sites where you go for truths.

The ECB held interest rates steady at 1% and reiterated their stance that they will issue UNLIMITED one-week, one-month and three-month funding until early 2011. Catch that word?

Unlimited is not a word I like to hear used by central bankers when they talk about basically printing money.

The amazing unfolding story of the trapped Chilean miners looks like, it will have a happy ending as they now can supply them with essential foods and liquids through a small drill hole. My thoughts are certainly with them still though.

It’s estimated to take up to four month for a new shaft to reach them That’s a long time to be in a cave basically. They’ll need to work on their tans once they resurface, albeit slowly.

I talked in the last letter two weeks ago about the supposed disappearing oil. It was just too hard to believe that most of the oil spilled could have simply disappeared, and if it had then what was all the stink about in the first place, and why ban off-shore drilling?

It all just seemed a bit too cozy for my liking. As it turns out, one of the scientists who was part of this government, obviously fictitious, “report” has now rescinded, and said 3/4 of the oil is still out there. I don’t know what tactics the government used in the first place to get this guy to sign off on this “report”, but this obviously poor attempt to lie by the US government is disgusting.

In my view nobody really knows how much oils out there, or where it is, at least their not admitting it. Everyone says oil floats so it would be easy to spot. Sure yes, light sweet crude oil or refined oil does float but the heavier type of oil coming from this specific well contains many other minerals and particles which would not float.

Certainly some would float but the majority of the oil would remain attached to heavier particles and be moving somewhere in the gulf largely undetected. The worst has yet to come in my view, I hope to god I’m wrong, but pretending everything is ok is wrong. I won’t be eating any shrimp for a while, I assure you of that.

Now we hear another oil rig has seen a fire. Details are sketchy as to be expected and I hope to god this one doesn’t sink. It is being reported that a mile long 100 ft wide sheen of oil was seen emanating from the rig though. Perhaps it’s another leak.

The waters fine folks! Enjoy your Labor Day long weekend in the Gulf!
This next rant is the real reason I decided to get this letter out rather than take the weekend off, and also why it’s so important to get this out to as many people as possible rather than just subscribers.

Jason Toussaint did an interview with Canada’s business channel recently. It’s a must watch interview, where he looks like a deer in headlights, with tonnes of little interesting tidbits, but what is most important is his post, and his holdings.
Jason is the “Managing Director of Exchange Traded Gold (ETG), the World Gold Council's global initiative designed to promote and develop the gold Exchange Traded Fund (ETF) and Exchange Traded Commodity (ETC) market.”

Jason states at the end of the interview when asked what he holds that; “I have some physical (gold) and I also own some gold mining shares”.

Well after that interview where he touts the fully backed allocated state of the GLD ETF shares, you’d suspect he meant GLD shares when he said “physical”.
Thanks to the GATA ladies and gentlemen, who don’t miss much, for pointing me in the right direction.

Jason does not hold GLD shares. He own the real physical gold, the kind I say every single week you must hold. Trade the GLD ETF, and own the real deal.
Neither Jason, nor any other officer or director of the World Gold Council (WGC) nor the GLD ETF itself OWN ANY SHARES IN THE ETF!

Would you invest in a company where NOT A SINGLE employee owns a single share of the company?

Neither would I.

Think about it, but that shouldn’t take long. Then run out and buy more physical metals!

Billionaire Thomas Kaplan is investing heavily in Gold as well as select miners. I’ve said it before and will say it again. Follow the money!

Well, it’s really storming hard here now and it’s just a matter of time until the power goes out so I’m going to take a nice drive out to the beach and see what this thing is all about.

Enjoy your long weekend. It’s the calm before the storm, so to speak.
Warren

In my free, nearly weekly newsletter I include many links and charts which cannot always be viewed through sites which publish my work. If you are having difficulties viewing them please sign up in the left margin for free at http://www.preciousmetalstockreview.com/ or send an email to warren@preciousmetalstockreview.com with “subscribe” as the subject and receive the newsletter directly in your inbox, links and all. If you would like to subscribe and see what my portfolio consists of please see here.

If you found this information useful, or informative please pass it on to your friends or family.

Free Service
The free weekly newsletter “Precious Metal Stock Review” does not purport to be a financial recommendation service, nor do we profess to be a professional advisement service. Any action taken as a result of reading “Precious Metal Stock Review” is solely the responsibility of the reader. We recommend seeking professional financial advice and performing your own due diligence before acting on any information received through “Precious Metal Stock Review”.

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Bust It! The Legend of George Soros

GoldSpeculator — Sun, 22 Aug 2010 00:10:35 GMT

www.preciousmetalstockreview.com
August 21, 2010

The S&P once again was rebuffed from falling markedly below the very significant 1,070 level which could mean we are heading higher once again, at least for the short term.

Markets remain a very difficult and treacherous place to ply my trade these days. Although there are exceptions.

In fact, I’ll be issuing a report in the coming days about a company I guarantee you’ve heard of and has a great business model.

They’ve just come public and the stock has been on a tear ever since. The company is very undervalued and has a long way to run in my view.

Even Friday as markets slipped lower, this stock was up over 10%...and that, after being up over 10% on Thursday as well!

There are no sure things in this world other than death and taxes, but this could very be the next one where early investors turn thousands into hundreds of thousand, or even millions.

Subscribers know I’ve been steering away from precious metals stocks as of late and focusing on the metals themselves, as well as quick moving, leading stocks. While it has been a tough go this past month, like every hot streak ends, so do cold ones and by reducing the size of trades it doesn’t hurt as much!

Let’s get right into the weeks action in metals and around the globe.

Metals review

Gold rose by 1.01% this past week. The uptrend is strong my friends, but we are soon to butt against strong resistance at the $1,240 level. If that can be surpassed then the $1,260 level should tested.

As I stated last week I am very nervous going into the post-Labor Day period since it seems so many are quite bullish on Gold. I hate going with the crowd and may have to lighten up on some Gold trading positions into further strength.

Gold always puts in a low in roughly the August period (as evidenced by the chart on the right) and moves higher towards Christmas. But this year could be different. I just have to listen to the market, and for now it says higher we go.
Also the fact that the commercial category in the COT report this past week showed an increase in short positions of 16,672. That’s huge and could foreshadow a big drop in the not too distant future.

The GLD ETF saw medium volume all week long as this steady rise in Gold continues.

Speaking of GLD, I couldn’t help notice they were sponsoring the ticker at the bottom of the big US business channels screen most of this past week which gave them huge exposure. Just remember there is no substitute for owning the physical product. GLD is a trading vehicle IMHO.

Silver slipped 0.72% for the week as the...do I have to say it!!! $18.50 level was tested and it held strong as the wall it is.

Silver simply can’t sustain a higher price than that...yet!

There is nothing else to say since the chart has support and resistance levels drawn in for you.

The SLV ETF saw medium volume all week until $18.50 was tested and price subsequently dropped which prompted higher volume days Thursday and Friday.
Platinum slipped 0.59% for the week after being rebuffed by the 50 day moving average. It looks like support at $1,500 is going to be tested and we then should see another break of the downtrend line as we saw in July. The price should jump to the $1,600 level where we could repeat this pattern again, although the third time is a charm more than you’d think, so we may finally a break of this $100 trading range.

The PPLT ETF volume was very weak all week long as summer comes to an end soon. Not many people are trading this at the moment.

Palladium rose by 1.76% on the week and remains in breakout territory. The price is testing support at the 100 day moving average right now. If that holds, then Palladium must work to move and stay above $500.

On the other hand if we break below the 100 day moving average, a test of $480, then $470 will follow. After that I’ll have to see how we are looking, but the maximum downside that I see today would be the $445 level, and that would be a stretch.

Volume in the PALL ETF was very weak and actually declined on Friday as price moved sharply lower. Summer is not over yet so I expect weak volume to remain for another couple of weeks.

FundaMental Review

Last week I mentioned that the US is basically monetizing their debt, and I suppose it’s a good thing since China is now buying less US debt and even selling it two months in a row now. Someone’s got to pick up the tab from reckless, non-sensical government spending!

You got to love the happy talk in the article link above as they say; “Demand for U.S. government debt is so strong lately that not even an apparent slowdown in China's appetite for it can stop the rally in bonds.”

Who’s buying it then? It’s the issuers. Who does the author really think he’s fooling?

Sadly, more people than I’d like to admit.

China is picking up their buying of European bonds though as a means to diversify. They have no choice. They are buying as many physical assets as they can without tipping their hat to everybody, but they can’t spend all their money on acquisitions etc, so bonds are the way to go, and they must diversify.

China even doubled their holdings of South Korean bonds this year!

Roger Clemens was Indicted this past week for lying to Congress when he denied using steroids. He could face up to 30 years in prison and face a $1.5 million fine.

Really now. Who did Roger hurt, and do we really have time, money and energy to spend on this? How about looking into

and continues to.

It angers me to see this waste when there are real serious, systemic issues that should be dealt with.

As our yearly summer festival winds down, it marks the end of summer and temperatures usually take a noticeable turn lower almost immediately. In fact even this morning has a chill to the air, but it’ll be hot like summer again by 10am.

As the end of summer lurks and most vacations wind down the FDIC is back hard to work as there were eight biggest losers this week to add to the years growing list of failed banks.

A major takeover offer of a fertilizer company was announced this week and the fertilizer company promptly rejected the offer. They are now looking for a white knight in order to benefit shareholders. The company is looking to China, with their huge cash reserves and large and increasing need for fertilizer. The bid expires mid-October and there will be fireworks between then and now.

This article is just scraping the surface. New Jersey settled claims of misleading investors in a $26 billion municipal bond sale by hiding the underfunded status of their two largest pension plans. This is the first time the SEC has sued a state. There will be many more to come I assure you, or the Feds will just shut down that division of the SEC since the Federal Governments books will be next once municipal ones become “acceptable” to investigate. Now that would be a show!

Eton Park’s hedge fund joined Paulson and Soros by buying a large amount of the GLD ETF, $800 million in fact. The big boys are really starting to get gold fever big time. But as I warn, buying GLD is useless to the small investor since it doesn’t not necessarily add to demand and decrease supply. The story is different for the big guys though.

While researching the GLD perspective some time ago I found that what’s termed a “basket” can in fact be redeemed for physical bullion. A basket consists of 100,000 shares.

That only equals $12 million as of Friday. So the new investor, Eton Park, could in theory redeem 66 baskets. Each basket would remove 10,000 oz of physical gold from the markets.

Now here is where my thinking takes a twist.

George Soros is smart. In fact much smarter than he lets on when talking about his investments. He usually talks on the first level, and thinks much deeper.
He’s

George_Soros

, namely the pound in the

Black_Wednesday

ordeal in 1992.

What’s Gold?

Gold is the ultimate and only enduring currency.

He knows what GATA, and my readers know. Gold is traded on a fractional basis which means real physical supply is much less than the amount of paper Gold traded.

If he were to, or even threaten to, cash in his 52 baskets (5.2 million shares) it would spark other large GLD investors to do the same.

That amount of gold redemption simply could not be handled. Prices would shoot markedly higher in a nano-second and he would have effectively busted the central bankers of the world along with gold depositories and Gold futures exchanges.

It would be the stuff of legends and be told for many generations to come. He would have left one of the more enviable marks in the books of history. He is not getting any younger and I am sure he ponders what his legacy will be.
Could this be his final sensational act?

This is all pure conjecture and speculation on my part, but it would not at all surprise me to see this scenario play out. I think I’d chuckle out loud all morning long from my comfy, well worn work chair.

Argentina is working on passing a bill that will curtail oil and mining extraction around their Andean Glaciers. Whether this will affect the development by the world’s largest gold miner of their Pascua Lama project is yet unclear, but I’ve long said that this particular project will be a tough on to get going.

Personally, I applaud the measure to protect the environment, but if it infringes on a previous agreement or contract I see a flaw. You simply cannot renege on deals which perhaps should not have been agreed to in the first place.

South Africa put a six-month moratorium on new prospecting licenses while they come up with fixes for some irregularities which exist in the current laws.
I didn't mention anything about the oil spill last week ( I forgot). First I must give my condolences to the family, friends and associates of

Matthew_Simmons

.

I cannot say enough good about Matthew. He was a near lone voice during this crisis, and he was honest and very knowledgeable. Perhaps he was too honest. The circumstances around his death do make me wonder slightly.

There’s no doubt he had high blood pressure, but he was found drowned in his hot-tub after what was said to be heart disease related issues. I’m certainly not trying to start some conspiracy or alarm anyone, it’s just one of those things I file in the back of my brain as odd.

Remember, one of the investors who benefitted the most from Bernie Madoff’s scheme was found in a similar condition. That was another of those kind of obscure things filed deep inside my head.

It was only last week that the government released a detailed 4 page scientific report stating most of the oil had disappeared! If you believe in that type of miracle, I pity you, and may god have mercy on your soul. I urge you to read this informative post from Jim Sinclair’s website on some of the odd events that are only now beginning to surface in regards to the Gulf Oil spills progression.

Also, there is quite a bit of evidence that the real leak is not being shown to the world. You can read all about it here and file it in your minds appropriate folder. For me, it’s one to keep my feelers out for.

Stay healthy and enjoy the remaining days of summer, and the week ahead.
Warren Bevan

In my free, nearly weekly newsletter I include many links and charts which cannot always be viewed through sites which publish my work. If you are having difficulties viewing them please sign up in the left margin for free at http://www.preciousmetalstockreview.com/ or send an email to warren@preciousmetalstockreview.com with “subscribe” as the subject and receive the newsletter directly in your inbox, links and all. If you would like to subscribe and see what my portfolio consists of please see here.
If you found this information useful, or informative please pass it on to your friends or family.

Free Service
The free weekly newsletter “Precious Metal Stock Review” does not purport to be a financial recommendation service, nor do we profess to be a professional advisement service. Any action taken as a result of reading “Precious Metal Stock Review” is solely the responsibility of the reader. We recommend seeking professional financial advice and performing your own due diligence before acting on any information received through “Precious Metal Stock Review”.

Attached Thumbnails

Gold To Fall In Fall For Once?

GoldSpeculator — Tue, 17 Aug 2010 00:19:47 GMT

www.preciousmetalstockreview.com
August 14, 2010
The Federal Reserves announcement this past week that they will monetize their debt sent markets reeling initially, but they seem to have somewhat stabilized, at least for now. This coming week will tell the tale, likely most of it to be told early Monday morning.

It’s hard to gauge though with such low volume in summer, this summer in particular.

Gold, however, is holding up very well, but I’m very nervous for once as we move closer to the post-labour day timeframe which usually is so good for Gold (details below).

Metals review

Gold only moved higher by 0.85% on the week but crossed a key technical level. By moving above, and staying above the 50 day moving average Gold will attract more buying even in these dog days of summer where volume is abysmal.

Gold is also nearing a key horizontal level at $1,220 which also happens to be the right shoulder in a short term reverse head and shoulders pattern which points to the $1,280 level if broken.

The GLD ETF saw medium volume all week as Gold moved higher. The fact is everyone is on vacation so it’s hard to interpret too much.
Bacteria can’t grow on Silver, and Silver can’t grow above $18.50 yet. Silver fell 1.84% on the week and could be headed back to the lower end of it’s range one more time at $17.50.

We are very near the fall season which does imply strength is coming in Silver as well as Gold, at least historically. If we can stay in this already high trading range between $17.50 and $18.50 then we should see a major move into the mid 20’s.

The SLV ETF saw volume that was mediocre early in the week with the larger price moves, then volume dropped off as traders headed to the beach late in the weak and the range for Silver narrowed.

Platinum dropped 3.18% which was no surprise as it approaches the lower limits of it’s range at the $1,500 level. I wouldn't initiate a trade until the lower limit was hit or come very close to.

The PPLT ETF was weak. Even the big down days saw volume under 100k.
Palladium slipped 3.39% this past week but reversed at the 50 day moving average. Palladium has traced out a nice looking up-sloping channel which I could see holding through to 2011.

Palladium remains stronger than Platinum, and a grand cheaper!

The PALL ETF had very week volume through the whole week.

I don’t know if the 50 day moving average will hold here or not but I am pretty sure the channel will hold.

Fundamental Review

If you thought bailing out a few companies was bad, how about bailing out states? This news that $26 billion is being sent to irresponsible states to help them keep 320,000 teachers and other workers is a very slippery slope.

Where does this money come from? It comes from thin air increasing the debt burden on the US government and ultimately the taxpayer. The only way out is to continue printing money and devaluing it, as has been the policy since 1913, when the Federal Reserve was created.

That $26 billion given in tax relief or something to spur private jobs would be much better spent in my view. This will cost more and more down the road making the burden on taxpayers heavier and heavier until it breaks their backs.
I cannot stress enough the trouble you will encounter holding fiat currencies as we move forward over the next several years.

The Bank of England is cutting their growth outlook and sees lower inflation in the years ahead. Their half right.

The Federal Reserve announced this week that they will buy their own debt. This is akin to saying we are printing money and the result will be hyperinflation unless we do it on a temporary basis.

A much more detailed yet simple explanation of what the

Monetization

. If you come to any other conclusion than to increase your physical bullion holdings, I suggest you scroll back to the top and re-read it until that conclusion is reached.
Don’t be fooled by the talking heads. Make your own decisions based on common sense, not fantasy.

Glen Beck has a

. It may be time to take a look at the world around and think of a better, simpler place to live. I don’t agree with everything he stands for, but the facts are the facts.

For the second week in a row we can only add one failed bank to the years list of biggest losers. I said last week that everyone needs a vacation and the FDIC is enjoying one now. The number will pick up strongly after labour day I assure you.

In Malaysia, they’ve introduced in one state, a law allowing people to use silver and gold coins in commerce, reviving a long lost tradition. That's fantastic and other similar moves are slowly occurring in other places. The question I have is, why the hell would you give up gold or silver when you can use intrinsically worthless paper?

Gold miners in Venezuela saw their export quota raised to 50% of production from 30%. Apparently the decision was come to at the request of private companies. I have to wonder if those were private Chinese companies. There is one thing for sure, if this move didn’t benefit Venezuela in some way, it would not have occurred.

This article discusses a theme I’ve been touching on for a long time now. The question is whether China is going to become the world’s next superpower by careful design or whether it’s awaiting the total collapse of the American system that’s inevitable.

I say both. It’s been clear for a long time that the current American system is flawed and has to fail. The Chinese just identified this and developed a plan to take advantage of it. They are in no rush, they are letting the ball come to them.

Another piece in the mounting mountain of evidence for China’s domination is that they just went through with the world’s biggest IPO. It’s worth $22.1 billion and in the agriculture sector. If that’s not a sign of a tidal change I don’t know what is.

If you’re a US taxpayer then this article should enrage you enough to at least send the link to your representative. Apparently Federal jobs have seen their pay increase 33% faster than inflation, with pay and benefits averaging $123,049 in 2009, up 36.9% sine 2000.

This all while the private sectors averaged half that at $61,051 up only 8.8% since 2000. Perhaps if the government payed normal compensation they could actually afford to create all the new jobs they are creating these days.

No offence to Federal employees, but most people know they, on balance, simply don’t have to work as hard as the private sector, nor fear losing their jobs nearly as much. I love working for myself but articles like this make me wonder why I didn’t just get a government job and ride it out with an early retirement, and nice pay package to boot. I love what I do, so that’s the difference.

I’m sure you know my advice...seek Federal employment! God knows there are enough new openings and new agencies.

South African gold output dropped 5.3% once again year over year during the May to June timeframe. This is nothing new as the country continuously struggles with many factors which will continue to diminish their gold output.

A nice video interview out of Asia was released regarding the FACT that many markets including Gold and Silver, are manipulated or held down. I’ve taken heat for backing GATA in the past, but I can’t help but deal with the facts, and they point to large scale manipulations across all markets.

I guarantee if you look at the facts in an unbiased open manner you will come to the same conclusion. How could it not be if it’s based on a fractional system? For fun, here is the Mad Man himself touting gold with his golden bull on top of it’s golden pyramid. The only thing that concerns me is that he says gold rallies every September, which is true and something I’ve said over and over every year. But it may be different this year if everyone knows about it now.

Also, putting the puzzle together I recall seeing the Giant Squid “bank” raise their gold target to $1,300 in the near term. It’s always best to do the opposite of them. It may be warranted to short gold into labour day this year, but we have to see how things develop.

No matter what, I will not be touching my physical hoard yet, or for years to come most likely. I may take advantage of a downswing and buy more though!
And where to store all that Gold and Silver?

Our friends Catherine Austin Fitts and Carolyn Betts wrote a great lengthy article on the methods to deal with this very envious problem.
Enjoy the weekend and week ahead while summer is still here. Thank you for reading.

Warren Bevan

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