The Israel Deception

Is the return of Israel in the 20th century truly a work of God, or is it a result of a cosmic chess move to deceive the elect by the adversary?

Monday, October 31, 2016

Shanghai Gold Exchange expands reach into Dubai as the DGCX will now use Yuan benchmark instead of London or Comex

On Oct. 31 China's Shanghai Gold Exchange (SGE) signed an agreement with the Dubai Gold and Commodities Exchange to begin using their Yuan denominated price benchmark instead of the long-standing London and New York gold fix price.

In addition, this new agreement is just the first that the SGE is undertaking with commodity exchanges around the globe as the world's largest physical gold market begins to takeover pricing of metals in more markets.

SGE, world largest physical bullion exchange, says in other talks about similar cooperation 
Shanghai Gold Exchange and Dubai Gold and Commodities Exchange signed an agreement on Friday in Shanghai which makes the DGCX the first foreign exchange to use the SGE's renminbi-denominated gold benchmark. 
The SGE is in talks with other exchanges about similar cooperation, according to an SGE circular. 
SGE is the world's largest physical bullion exchange. The renminbi-denominated gold benchmark, also known as Shanghai Gold was launched in April this year. It is one of China's efforts to earn more say over pricing of the precious metal and increase its influence in the global gold market. 
China is among the world's largest producers, consumers and importers of gold, and it deserves pricing power that matches its position. It should have more say in an industry long dominated by London, which sets global spot prices, said analysts. - China Daily

Saturday, October 29, 2016

Forget nuclear weapons, the new Cold War is about gold and currencies

It is perhaps ironic that the American century was built upon having the most gold reserves in the world following the destruction of two World Wars, and is ending because they gave up reliance on a gold standard for trust in credit and fiat currencies.  And with the rise of Russia and China both economically and geo-politically, the new global financial powers have risen themselves on the back of the one true money.

Gold.

With all eyes on Russia’s unveiling their latest nuclear intercontinental ballistic missile (ICBM), which NATO has dubbed the “SATAN” missile, as tensions with the U.S. increase, Moscow’s most potent “weapon” may be something drastically different. 
The rapidly evolving geopolitical “weapon” brandished by Russia is an ever increasing stockpile of gold, as well as Russia’s native currency, the ruble. 
Recently, financial guru Jim Rickards, author of the book “Currency Wars,” wrote that “Russia is poised for a major comeback in its economy. Russian bonds and stocks and the Russian currency, the ruble, will all benefit.” Rickards believes a “strong turnaround” is coming within Russia, and that this comeback will benefit the ruble. 
Rickards, in his 2011 book “Currency Wars,” theorized that Russia and China could combine their gold reserves to form a global gold-backed currency to compete against the U.S. dollar. Currently, Russian reserves stand at roughly 1,500 tonnes, with Chinese reserves totaling over 1,800 tonnes (according to China — it’s likely more), which would amount to a combined total of roughly 3,300 tonnes of gold. 
The U.S. is about to lose overarching control of policymaking within the International Monetary Fund (IMF), thus the U.S. lockup on global gold is about to vanish, according to Business Insider. 
Imagine for a moment the distinctly real possibility that Russian-Chinese alliance could exercise indirect (or even direct) control over the IMF’s gold reserve of over 2,800 tonnes. Russian, Chinese and IMF gold combined would equal roughly 6,100 tonnes, and would allow for direct competition with the U.S. gold reserves, estimated at 8,100 tonnes. 
Russia and China have realized that the petrodollar is wielded by Washington as it’s weapon of choice when opposing a well-armed state, and clearly see the writing on the wall – thus working together to create a new global financial paradigm. – The Free Thought Project
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New Symbol of the Russian (Gold backed?) Ruble

Thursday, October 27, 2016

What should the real price of gold and silver be with all the paper contracts sold for each bullion ounce

With the rise of the Shanghai Gold Exchange over in Asia, there are now three primary gold markets functioning globally.  But only one is an actual physical gold market since both London (LBMA) and New York (Comex) are paper gold based derivative markets.

For years organizations like GATA have sought to prove price manipulation and the use of bullion banks by the Fed and the U.S. Treasury to keep down the paper spot price to protect these derivative contracts.  And this proof of manipulation was finally validated earlier this year with a public mia culpa by Deutsche Bank that they and others have been purposely manipulating gold prices through the use of naked shorts dumped periodically onto the gold markets.

So even with these new disclosures of price fixing and illegal market trades, one has to ask why are the central banks and government finance agencies still continuing to manipulate markets without a care that they would be prosecuted, and most importantly, is there an underlying purpose behind such mechanisms?

The answer may lie in a new interview discussing data derived from GATA analyst Adrian Douglas who suggests that the real gold price should be well over $50,000 per ounce to backstop the $14 trillion in foreign held debt, and that the 40 -100:1 paper contract to physical gold ratio currently used in the Comex is a means to keep the paper price down while protecting the debt held by foreigners, which are using held gold as collateral denominated at its true value.

Silver Doctors: GATA's Adrian Douglas has done extensive research into the paper manipulation of gold and silver.  But the precious metals world changed overnight when Jeffrey Christian from CPM Group made this startling admission at the CFTC hearing in March. 
Jeffrey Christian: And you've heard people out there saying it today, that there is just not that much physical metal out there.  There isn't.  But as the physical market uses that term, there is much more metal that that... there is a 100 times more metal (paper metal).
Precious metals are financial assets, and like currencies and T-Bills and T-Bonds, they trade in multiples of 100 times the underlying physical. 
Silver Doctors:  Adrian Douglas's research leads him to conclude that the outstanding paper metals manipulation in gold is 45:1.  Meaning there are 45 paper ounces of gold sold for every one ounce of physical gold in the vault.
Which multiplies the 'apparent' gold supply 45 times.  Therefore suppressing price to what we see today. 
Adrian Douglas:  The Supply of gold is artificially increased by this paper gold about 45 times the actual supply.  So that means when that is exposed, and people are asking for gold that isn't there, the potential is that gold's purchasing power will be multiplied by 45 times. 
Silver Doctors:  There are 45 times the amount of gold sold as there is in the bullion banks, so what is the price of gold for the bullion banker?  $56,000 an ounce.
That is because they sold 45 ounces total (at approx. $1245 per ounce) for every physical ounce they owned.  In essence, they received $56,000 for every physical ounce sold.
Now the U.S. government claims they have 261.5 million ounces of gold held in reserves, so let's take them at face value and assume the gold isn't encumbered.  People say the dollar is backed by nothing, but it actually is backed by the gold reserves they claim they have. 
Now let's consider the dollar.  We've issued $14 trillion in (debt held by foreigners) against 261.5 million ounces.  If you do the division ($14 trillion / 261.5 million) the price comes out to... 
Approximately between $53,500 - $56,000 per ounce.  The exact same amount as the LBMA and Comex selling 45 times in paper gold the number of actual physical gold held in their vaults.
It appears that the paper gold manipulation is purposely being done to protect the dollar during this era of massive money expansion, and increase in debt.  And they are using the paper derivatives markets of the Comex and LBMA to suppress the TRUE VALUE of physical gold since if it were to run free to achieve its actual value it would collapse the dollar as well as the rest of the world's fiat currency mechanisms.

Tuesday, October 25, 2016

As the dollar strengthens and the Yuan weakens, China continues its heavy buying spree of physical gold in expectation of financial crisis

Six years ago, the Middle East erupted into protests that would become known as the Arab Spring.  And while politicians in the U.S. tried to spin this event as being a revolt against 'tyrannical governments', the reality was that these and many other nations were in bondage to a stronger dollar which made it impossible for them to afford to buy wheat and other commodities to feed their people at the height of the Great Recession.

With the U.S. dollar being the sole reserve currency in which all nations must exchange their money into to be able to purchase commodities on the international market, extreme changes to the dollar have historically been the catalyst for monetary crises elsewhere.  And two of the best examples occurred in both the 1980's and 1990's when Paul Volker's interest rate hike led to a Latin American debt crisis, and the stronger dollar during the height of the Dot.com boom triggered a currency crisis in Southeast Asia.

The U.S. dollar is getting too strong for some countries. Early warning signs suggest another emerging markets currency crisis. 
Currencies in Southeast Asia are at their worst points since the region's last financial crisis in the late 1990s. Mexico and South Africa's exchange rates are at their lowest levels ever compared to the dollar, according to Capital Economics. 
The dollar's gains should make history nerds shake in their boots. Its rally in the early 1980s helped trigger Latin America's debt crisis. Fifteen years later, the greenback surged quickly again, causing Southeast Asian economies, such as Thailand, to collapse after a run on the banks ensued. 
A large scale currency crisis could be a real hit to the global economy, even the United States. The world is a lot more integrated today than it was in the 1980s and 1990s. – Money.CNN
However, unlike the way the strong dollar effected currencies in second and third world economies two and three decades ago, this new move for the dollar over the past six months is causing financial problems to first world nations such as the UK, the Eurozone, and even the second largest economy in the world, China.


In response to this, China is once again ramping up their gold buying, especially since the price was slammed down by over $70 earlier this month.  And in addition to the latest report of over $350 billion in U.S. Treasuries being sold back to the United States over the past few months, those dollar reserves are in part the currency being used to swallow up Western gold supplies.


As the dollar once again nears 100 on the weighted index, and the British Pound, Chinese Yuan, and Euro all devalue to in some cases historic levels, the chances of another regional or global monetary crisis comes to the fore, and unfortunately at a time when the world looks to already be in a new economic recession.

Sunday, October 23, 2016

Kentucky Senator proposes bill for early 2017 which would remove sales tax from purchase of gold and silver

A state Senator from Kentucky has filed a new bill that would seek to remove sales tax on the purchase of gold and silver within the state.

Scheduled for early 2017, bill BR156 is being used as an initial stage for gold and silver to become currency again within the state of Kentucky, and to promote its purchase and use by its citizens.

A Kentucky bill prefiled for the 2017 session would remove sales taxes from the purchase of gold and silver, encouraging its use and taking the first step toward breaking the Federal Reserve’s monopoly on money. 
Sen. John Schickel (R-Union) prefiled BR156 on Oct. 11. The legislation would exempt bullion or currency purchases from state sales tax. This would include gold, silver, platinum, or palladium bars, ingots or commemorative medallions for which the value depends on its metal content, not its form. It would also exempt coins or currency made of gold silver or other metals paper currency used as legal tender. 
Under the proposed legislation, the exemption would remain in place for five years. 
Imagine if you asked a grocery clerk to break a $5 bill and he charged you a 35 cent tax. Silly, right? After all, you were only exchanging one form of money for another. But that’s essentially what Kentucky’s sales tax on gold and silver does. By removing the sales tax on the exchange of gold and silver, Kentucky would treat specie as money instead of a commodity. This represents a small step toward reestablishing gold and silver as legal tender and breaking down the Fed’s monopoly on money. – Activist Post

Saturday, October 22, 2016

Gold price difference out of China now up to $5 more than in London or Comex

On Oct. 18 the spread in gold price between the Shanghai Gold Exchange (SGE) and the London/Comex gold fix was a record $5 as the Eastern physical markets continue to ever so slowly pull away from the Western paper gold markets.

The SGE is the largest physical gold market in the world, and commenced declaration of its own gold price back in April of this year.  And over the course of 2016 they have intermittently increased the spread between themselves and the purely paper markets run out of London and New York.

Shanghai Gold Exchange fix times: 10:15pm est and 2:15am est 
London gold fix times: is at 5:30am est and 10am est 
Shanghai morning fix OCT 18 (10:15 pm est last night):  $1276.80 
NY ACCESS PRICE:   $1271.50 (AT THE EXACT SAME TIME) 
Shanghai afternoon fix:  2: 15am est:  $1274.31 
NY ACCESS PRICE:   $1269.70 (AT THE EXACT SAME TIME) 
Spread between each market at both fix times:  $5 difference – Silver Doctors
As this difference in price continues to expand, it will eventually create an price evaluation where gold miners will stop selling their products to the Comex or LBMA, and find it more affordable and profitable to ship their gold to Chinese markets..  Likewise, it will also eventually lead to an arbitrage where traders will buy all the gold up in both London and New York, and then sell it to Shanghai causing an asset flight from West to East.

Thursday, October 20, 2016

How much gold and silver should an individual or family have to protect their wealth?

For those who invest, save, or stack gold and silver, the question always arises on what kind, and how much should individuals or families have to protect themselves from a financial disaster, or to protect their wealth.  The answer of course is arbitrary since no two people live under the same circumstances, but there are some general rules to help in diversifying yourself from the cycles of economic chaos.

If there is anything the last 100 years have taught us is that either by greed, corruption, natural cycles or simple chance, economies and currencies will have periods of extreme decline.  And sadly for most people, no matter how many times the financial system fails, few prepare themselves for that one time the turmoil will come to effect them, or even their entire community.

In just the past 20 years we have seen two economies go into hyperinflation, and several others experience currency crises and deep depressions.  And while the United States and most of Europe has not fully collapsed into any of these scenarios, history shows that at some point all empires fall, and all monetary systems fail.

But will it be in our lifetimes?

If the financial crisis of 2008 proved anything it is that systems can seize up and collapse in a matter of days.  Yet unlike the phantom specters of events such as Y2K or even the more recent Brexit vote, people often don't have months or years to prepare for change and must learn to make monetary preparation a lifestyle choice.

So the question still remains... how much gold and silver should individuals or families accumulate to be solvent in nearly any crisis or financial cycle change that could take place?  We know in Venezuela right now that on the streets an ounce of silver will buy enough food for a family to last 3-4 months, and a gold ounce coin will buy a house.  But more than this, when the inevitable global financial collapse comes what will you need to be able to both survive, and set the foundations to thrive in what new system emerges.

The first thing one must do is change their mindset.  When determining the amount of precious metals to own the solution is not determined in price or value, but in the number of ounces.  This is important because their values change daily, and are different in relation to the hundreds of different currencies operational around the world.

Second you must do a real evaluation of your wealth, incomes, debts, and needs.  And from there it becomes much easier to figure out what goals to set in accumulating a stack.

Thirdly you must recognize what each form of precious metals does for your portfolio and how to allocate it.  The best rule of thumb is to see the metals and metal stocks in this light.

1.  Gold - Wealth protection
2.  Silver - Barter and also Investment
3.  Mining Stocks - Speculation

Each of these are also in the correct order of risk, with gold being the least risky and mining stocks being the most volatile.

Here is a good example of how much of each metal you would need if there were no longer cash or income from employment, and the economy had moved into an inflationary spiral.

Chart courtesy of Jeff Clark

But as with all financial crises, there are no cut and dry parameters or limits to be fully covered.  As I noted today in Venezuela, only three ounces of silver would cover your food needs for one year.

In times past brokers who actually believed in precious metal ownership suggested having 5-10% of your wealth held in both gold and silver, while another 5% might be dedicated towards speculation (mining stocks).  But this adheres to the premise of value vs. ounces, and since your would be holding the metals physically in hand, ounces are the most important determinant.

As I am not a Certified Financial Planner, I can only give suggestions and thoughts based on my experiences and prognostication of future events.  And with this in mind for myself as a single unmarried individual, my minimum stacks would be like this.

10 ounces (or equal grams) of gold bullion
500 ounces of silver
$500 - $5000 in speculative mining stocks

In the end this article is not meant to determine exactly for you how much gold and silver you would need to protect your wealth and hedge against financial crises or uncertainties.  But it is a beginning from where you can assess your own situations and set some short, medium, and long-term goals because the time for buying any type of insurance is always before the disaster strikes, not while it is happening when that insurance will be far beyond your ability to afford it.



Wednesday, October 19, 2016

Former Goldman Sachs analyst who predicted 2008 crisis now telling investors to get into gold as we enter new recession

Despite the recent pullbacks in the gold price over the past month, one well respected analyst and investor stated in an interview on Oct. 19 that gold will not only go much higher during the next financial crisis that is inevitable because of negative interest rates and geo-political uncertainty, but that it is the most stable 'currency' to have your wealth stored as in what is to come.

Raoul Pal is a former Goldman Sachs analyst and trader who now owns a proprietary company called Global Macro Investor.  And while admitting he is and has never been a gold bug, he and many of his investment peers are all recommending gold as a necessity in the world's current and fragile monetary environment.

Mirror, mirror on the wall, which asset is most mispriced of all? According to a Goldman Sachs alum who predicted the financial crisis in 2008, it’s gold. 
The precious metal should be a lot more expensive when the likelihood of a global financial collapse and a move toward negative interest rates is accounted for, says Global Macro Investor founder Raoul Pal, who now sees a U.S. recession within 12 months. 
Uncertainty about Brexit and the timing of a Federal Reserve rate hike triggered a rush into the dollar, which often moves inversely to the metal. (Higher rates can work against gold, but the metal becomes a safe haven if the economy slows.) 
“As we get to negative interest rates, gold is a good place to park your cash,” said Pal, who discussed his outlook with MarketWatch in a September interview and a follow-up conversation over email. 
“I’m not a gold bug,” the former GLG Global Macro Fund co-manager — who is also watching the dollar closely — “but this is the currency I would choose now.”
Pal, an economist and strategist, also co-founded Real Vision TV, which conducts interviews with prominent investors. Many of his recent guests share his enthusiasm for gold, according to Pal. 
“All the really serious thinkers are interested in gold,” he said. - Marketwatch

Monday, October 17, 2016

China's Shanghai Gold Exchange (SGE) initiates next step towards being a part in setting global gold prices

On Oct. 17 China's Shanghai Gold Exchange (SGE) announced they will be collaborating with other global markets to allow gold pricing in Yuan to be part of the price set for derivative contracts.

In his announcement on Monday, SGE Chairman Jiao Jinpu sought to initiate the next step for China to play a large role in setting the price for the precious metal that has long been under the control of London for more than a century.

Shanghai Gold Exchange Chairman Jiao Jinpu said on Monday that the bourse will collaborate with foreign exchanges and allow them to use its yuan-denominated gold price in developing derivatives products.  
"We would collaborate with various exchanges and authorise these external exchanges to start business outside China to use it as basis for development of derivatives products," Jiao told an industry conference through an interpreter.  
Jiao was referring to the Shanghai Gold Exchange's yuan-denominated gold benchmark, which it launched in April in an ambitious move to exert more control over pricing of the metal and influence in the global bullion market. - Economic Times.India Times
In addition to the SGE's goal of being a part of the global gold and derivative price determinations, the Singapore Bullion Market Association also reported on Monday their initiation of a joint study between themselves, the LBMA, and the Intercontinental Exchange Benchmark Association (IBA) on connecting the London gold price mechanism to Asia, where China and Singapore could then have a say in the pricing of precious metals in overnight trading rather than allow bullion banks and investors to hijack the markets when U.S. and European bourses are closed.
The Singapore Bullion Market Association, London Bullion Market Association and Intercontinental Exchange Benchmark Administration (IBA) will launch a joint feasibility study on the development of "LBMA pre-AM gold price at 2 pm Singapore time", Lim Hng Kiang, minister for trade and industry and deputy chairman of the Monetary Authority of Singapore, told an industry conference on Monday. 
The study "is an important first step towards establishing a U.S. dollar price discovery mechanism for gold during Asian business hours," said Lim. "When in place, it will facilitate the timely tracking of Asian demand and allow participants in Asia to settle their trades within the same business day." 
"We hope to make a reputable gold benchmark mechanism in London available to Asian users," the Singapore Bullion Market Association's chief executive, Albert Cheng, told Reuters. - Reuters

Sunday, October 16, 2016

The only real option if you offshore your money is to keep it in gold

If you take into consideration all the extreme monetary policies and capital controls instituted by governments and central banks over the past six years you would come to the realization that offshoring some or a large portion of your wealth is no longer a luxury, but a necessity.  But in many of these controls that several governments have created to try to monitor, tax, and even confiscate one's wealth if they try to protect it from devaluation, the only real option is to transfer it into some form of asset that is outside the banking system.

And more than any other facility possible, that option is gold.

Under current U.S reporting laws, if you own gold offshore in an individual name, it is not a requirement that you report it to either the IRS or the U.S Treasury. However, if the title of the gold is held in the name of a legal entity, it must be reported but if it is held in your offshore account, it is reportable. So, owning and holding gold in an offshore account is completely legal. 
There are several reasons why people use offshore accounts to own and store gold. These include offshore confidentiality, protection, tax planning, privacy, and investment diversification among other things. A carefully planned and executed offshore account can assist you with each of the areas mentioned above. By transferring your gold to an offshore account, you are also protecting your asset to the fullest extent. 
It is easy to have some or all of your gold in an offshore account waiting for you when you need it. If in the event of a price movement you want to sell it, you can always hire a local lawyer and instruct them to act on your behalf. Considering that many countries, especially those in Asia, view gold as something in demand or money, it is often easy to sell and fetch better prices in Asian countries. 
If you choose to store your gold in a private vault facility, you also add a unique layer of privacy to your asset. This is because precious metals held in non-bank facilities, and more so gold, are not subject to government reporting. From Switzerland and Singapore to Austria and Hong Kong, there are many gold storage facilities in these privacy-friendly countries. - SMHPA
The financial system stands on the cusp of its next great crisis, with several banks this week forecasting collapse in multiple markets and infrastructures.  And whether it is in Germany with Deutsche Bank, Italy with their faltering banks, or the realization that the Fed, ECB, and Bank of Japan are out of options, the threat of bank bail-ins are now very real, as is the institution of even greater capital controls that will limit your ability to protect your wealth in the very near future.

Friday, October 14, 2016

Got gold? Today the new SEC rule goes into effect allowing the government to move your non-invested cash into Treasuries

Back in 2014 the SEC passed a rule that now goes into effect on Oct. 14 where investors and pension funds who do not have their money in a security can summarily have their cash reserves moved into U.S. Treasuries rather than money market funds.

While designating this mechanism to only be used during extreme 'adverse conditions', the fact that the global financial and banking systems are teetering on another 'Lehman Moment' means that the government could co-opt your money at any time, and is a backdoor way into moving your retirement and pension assets into Treasury debt instruments to help fund the government.

Image result for government wants your retirement and pensions
The big day has finally arrived: starting today, as previewed repeatedly over the summer, the SEC's 2a-7 money fund reform adopted in 2014 officially require many prime money market mutual funds (those that invest in non-government issued assets such as short-term corporate and municipal debt) to float their net asset value. More importantly, these prime MMFs are allowed to delay client withdrawals under adverse market conditions. 
The rule aim to prevent the sort of chaos that hit the money market after Lehman Brothers Holdings Inc.’s 2008 bankruptcy, which helped spark the financial crisis. The goal is to give investors a way to monitor a fund’s health by tracking its fluctuating net asset value, and to contain the fallout that could be caused by many investors cashing out at once, the SEC wrote in the final rules. 
As as result, many Prime MMFs are and have been converting their assets to government funds, not buying CDs anymore and moving into Treasurys and agencies. As the chart below shows, nearly $1 trillion in assets have rotated out of prime money markets into government funds, as a result sending Libor rates through the roof, to the highest level since the financial crisis, with consequences that have yet to be determined. - Zerohedge
But this scheme gets even more diabolical as the new SEC rules also allow for the government to DELAY in giving you or your broker the cash funds moved into Treasuries, thus making it so you no longer have control over your own money.
Take the case of Simon Gore, treasurer of budget carrier Spirit Airlines, who has had a relatively simple job over the past several years when he took tens of millions of dollars of company cash and parked it in money-market funds. Gore told the WSJ he has moved money out of some funds and is considering his options for depositing the more than $1 billion of cash and investments on Spirit’s balance sheet. 
Gore had previously put almost all of Spirit’s cash in prime money-market funds. Now, he has shifted most of it to money funds that invest in debt issued by the federal government or agencies such as Fannie Mae and Freddie Mac, which aren’t affected by the new rules. He said the prospect of a floating net asset value - which also means client withdrawals can be delayed - caused him to think twice about prime funds. Besides facing the risk of losing money under the new rules, companies would have to record changes in the value of their cash, creating accounting headaches.
Ever since the 2008 financial crisis the government has been seeking ways to co-opt the nearly $17 trillion in individual retirement, pension, and mutual fund monies, and this, like Barack Obama's MyRA scheme, is just another backdoor way for them to do so.

How much longer can you trust your future to Wall Street or elected officials who have proven themselves to be some of the most fiscally irresponsible entities in history?

Wednesday, October 12, 2016

Analysts believe gold demand will continue higher as price expects to hit $1400 by end of year following pullback

The recent pullback, or slam down in the gold price over the past two weeks has done little to stop the demand for gold... as seen by the huge buying of physical metal, as well as ETF paper in the period following gold going down to $1260 from $1330.  And many analysts concur that the manipulated smash in the gold spot price will only continue to fuel this demand, and bring the price to over $1400 before the end of the year.

Gold prices are on the move again, settling at $1,260 per ounce at market close on Monday, according to Apmex
That's after gold prices fell 5% last week, the largest decline in the metal of Midas since 2013. "Gold prices are quite appealing after the recent correction," notes Richard Xu, portfolio manager at China-based HuaAn Gold. "In China, what we see today is that there is some demand to buy gold following its dip." 
Former U.S. Congressman Ron Paul concurred with that assessment in an appearance on CNBC last week. A healthy economy "will be fundamentally good for gold," Paul said. 
Paul says that an ongoing low-interest rate policy by the Federal Reserve will boost gold prices and that the volatile U.S. presidential race, no matter which candidate emerges victorious, won't substantially impact precious metal prices. - The Street

Tuesday, October 11, 2016

Sharia law standards for Muslim gold ownership expected to be completed by end of the year

One of the biggest and perhaps most under reported events in the gold spectrum is very close to completion as on Oct. 11, the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) announced the primary draft that would allow for gold ownership by Muslims under the stricture of Sharia Law.

Worldwide there are around 1.6 billion Muslims, many of which follow Sharia Law in their cultural and financial lifestyles.  And for centuries gold ownership was limited to both jewelry and currency, as any investment in the precious metal carried the potential of earning interest above the value of the metal, especially in areas such as futures and other paper gold markets.

But now the AAOIFI has laid out new guidelines that will become the standard under Sharia Law, and are expected to become fully functional by the end of 2016.  And with this new opportunity opening up for a significant portion of the Islamic world, expectations are that both the gold price and demand could skyrocket as nearly 25% of the world's population would have access to gold ownership and investment for the first time.

The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) plans to finalize several new standards by the end of the year, as the standard-setting body works through a revamp of its guidance for the $2 trillion industry.
Bahrain-based AAOIFI has published a draft sharia standard for gold-based products with a one month consultation period ending Nov. 9, the industry body said in a statement. The project was started last year by the World Gold Council, a London-based market development body. 
AAOIFI issues guidelines that are followed wholly or in part by Islamic financial institutions globally, a sector that has grown fast but remains fragmented across its core centers in the Middle East and Southeast Asia. - Reuters

Monday, October 10, 2016

Following four bank bail-ins last year, most Italians are hiding their cash outside of banks and buying gold

With the global shock that the Cyprus bank bail-ins did to depositor psyches back in 2013, the media has gone out of its way to hide any news of bank insolvencies that might lead to runs on the banks.  And this includes four little reported bail-ins that took place in Italy just last year.

But with the growing threat of even more Italian banks becoming insolvent, and the Damocles Sword of Deutsche Bank threatening the entire European financial system, depositors in Italy are not waiting around for the next crisis to take place, and over the past year have been taking out their cash to hide in their 'mattresses' and buying physical gold as a hedge for what they believe is coming very soon.

People in Cyprus had to find this out the hard way in early 2013. People awoke on an otherwise normal Saturday morning to the shock that the money in their bank accounts had been taken by a bail-in to recapitalize the banks. 
Not surprisingly, many Italians aren’t just waiting around to get “Cyprused.” 
I recently spent weeks on the ground in Italy investigating the ongoing banking crisis. I spoke with a prominent lawyer who told me that most Italians are now distrustful of the banks. They’re keeping a substantial portion of their savings in cash under their mattresses. They’re also buying lots of gold. 
I’ve been to Italy numerous times over the years. But this time, I saw something new. 
There were signs everywhere advertising gold bullion, like the one below. 
I think it indicates a strong demand for gold and a strong distrust of the banks. It seems to me like a slow motion bank run is already happening. This is the last thing Italy’s banking system needs. It’s further bleeding the capital in the banking system. 
I only see the situation getting worse… 
Italians are rightly afraid of bail-ins. That fear is leading them to withdraw their savings as cash and also to buy gold. This further drains the banks’ capital, making it more likely they’ll need to do a bail-in to remain solvent, which fuels even more withdrawals. It’s like a self-fulfilling prophecy. - International Man

Saturday, October 8, 2016

Recent gold take down may be part of a gambit involving China seeking to buy Deutsche Bank's gold derivative book

Last week while China's financial infrastructure was primarily closed for their annual Golden Week holiday, one or more entities slammed the gold price down by dumping billions of dollars worth of contracts on at least three separate occasions.  And without opposing buy pressure from the usual counter-parties in Asia, the price was pushed down from a high of $1317 on Oct. 3 to an inter-day low of $1246 on Friday.

1 Week Gold Prices - Gold Price Chart

However, most of the trades that created the drop of $70 over the course of four days occurred almost instantaneously, with billions in contracts being dumped onto the market in less than a minute each time.

So what was the cause and reason for this attack on the gold price, especially since there was no news or events at all during the week that would spur traders to divest their holdings in such quantities?  Speculation has been rampant in the alternative media, but nothing conclusive as to why...

until now.

On Oct. 6, well known and respected statistician and analyst Dr. Jim Willie gave an interview with Perpetual Assets to discuss the current state of the economy, and in particular events such as Deutsche Bank's insolvency and the recent takedown in gold.  And during his over two hour interview, Dr. Willie laid out a scenario regarding China's desire to buy Deutsche Bank's gold derivative book, and the pressure put on the German bank by London and the U.S. to counter the move by forcing them to sell their contracts onto the market, even at a loss.
Dr, Jim Willie: What is Deutsche Bank's biggest problem right now, outside the law? 
Will Lehr:  Their derivatives book? 
JW: It's cash.  I don't mean where they are in trouble, but rather what is their challenge.  Cash.  They are having liquidity nightmares.
So what I am hearing is that the Chinese are coming forward, and remember they are off all week for some holiday, and that's one reason that gold got slammed.  But the Chinese have offered cash... I've heard they've offered something on the order of $100 billion.   
And I go WHAT?  Just for Deutsche Bank?  And my source said no, no no, they aren't interested in the whole bank... they are interested in their gold derivatives book. 
Because what we're hearing in the buzz among bankers... you know, New York, London, and European centers is that indeed China is looking to buy their gold derivative book, and the word has it that the derivative book involves more gold than is in the Comex.   
More than what's traded in the Comex in a year. 
It's bigger than the Comex by an order of magnitude. 
Ok, so Deutsche Bank is interested in the Chinese deal, but what they're experiencing from what I'm hearing, is that the Deutsche Bank officials are being forced by London and Wall Street, to dump their derivative book.  And I don't know if it's at a loss, and I have the feeling the Wall Street and Londoners don't care whether it's at a loss, they just want this derivative book to slowly be dissolved and sold off so that the Chinese don't get it.
Fast forward to 31:20 in the video below to hear the entire story behind the Chinese gambit, and the pressure by the Western gold consortium to force Deutsche Bank to dump their derivatives onto the market to keep it out of China's hands.

Both foreign buyers and bank analysts see recent price declines in gold a fantastic buying opportunity

With gold prices falling below $1300 per ounce for the first time since July this week, many mainstream analysts who hate the monetary metal jumped on the bandwagon to say the Gold Bull Run was over, and to expect prices to decline much more than where they closed out the week.  However, this analysis is not proving itself out in the physical market where buyers of both gold and silver are using this pullback as a great buying opportunity.

In fact, several gold and silver businesses saw single day sales of several million dollars, with the U.S. Mint selling at least 1.4 million coins to dealers this week alone.

How fast things can change in the PHYSICAL markets when paper prices are smashed.
Gold Eagles, Gold Maples, Krugerrands, Phils, and even private mint 1 oz gold bars are now ALL on 1-2 week delays at the wholesale level in the US after this week’s massive rush to physical. 
Same Story In Silver: 
Wholesale premiums jumped .30 – .50 on 90% Junk Silver Coins this week, with similar increases passed on at the retail level. - Silver Doctors
Reports on tremendous buying of physical gold this week were not limited to bullion dealers as analysts from both Goldman Sachs and Merrill Lynch agreed that the recent pullback of nearly $100 will quickly be filled by foreign buyers in both China and India, as well as those who continue to see financial conditions deteriorate.
Investors should use the recent drop in gold prices as a buying opportunity, as increased volatility in the market ahead of a potential Fed interest rate hike could lead investors to seek refuge in the precious metal, according to Francisco Blanch, head of global commodities and derivatives research at Bank of America Merrill Lynch. 
"Gold is really thriving on uncertainty, and frankly, on the end of the U.S. [rate] cycle whenever that happens," said Blanch. 
The commodities expert believes that once the U.S. central bank decides to raise interest rates, potentially causing equities to sell off and the dollar to rally, investors will see gold prices stabilize and eventually trend higher. - CNBC
As you can see from the chart below, immediately following the 2008 financial crisis gold prices fell from over $1000 per ounce down to $740, only to begin their next leg up to over $1900.


Don't let the pullbacks in gold be a deterrent to sell, as the long term trends of a gold bull market, as well as financial instability, have not changed in a week's time.  And instead look at this pullback as a buying opportunity, just as it was in 2009 before the central banks began their six year programs of zero interest rates and quantitative easing.

Thursday, October 6, 2016

Federal judge rules in favor of a lawsuit against the LBMA and bullion banks for fraud and manipulation in gold and silver prices

Ever since the 2008 financial crisis, most regulators for all markets have worked with, rather than against the banks that have been found guilty of committing dozens of crimes in the financial system.  From the rigging of currency and Libor rates, money laundering to drug cartels and terrorist organizations, mortgage fraud, and even the most recent instance of millions of cases of identity theft, no one is ever charged with the crimes individuals in these banks commit, and at best are simply fined a small amount compared to the profits they garnered from their fraud.

But on Oct. 3 an interesting ruling came down from a Federal judge for the Southern district of New York where the court ruled in favor of investors that a civil case against central and bullion banks could go forward due to strong evidence of fraud and manipulation in the rigging of gold and silver prices.

MarketSlant has obtained documents regarding the London Gold Fix Scandal currently being litigated in the New York Southern District Court.
They include the Judge's initial findings in the class action suit pitting the LBMA and its member Banks vs. Entities and Individuals that trade Gold and allege they were victims of price manipulation and suppression from January 1, 2004 to June 30, 2013.
In the document dated Oct 3, 2016, presiding Judge Valerie Caproni of the US District Court, Southern District rendered her Opinion and Order in the matter. Judge Caproni has validated that much of the claims have been substantiated and therefore is recommending litigation for many of the claims brought. - Market Slant

Wednesday, October 5, 2016

London dumps 1,000 tons worth of gold contracts on Oct. 4 to allow pre-Brexit shorts to cover before price explosion

On Oct. 4 gold fell by more than $40, and nearly $100 over the past few days as the Chinese holiday provided the perfect environment for London to dump 1,000 tons of gold contracts onto the market to drive down the price.

According to long-time gold analyst Andrew Maguire, the London gold cartel facilitated a massive shorting of gold futures contracts to drop the price back down to pre-Brexit levels so that bullion banks and other insiders could cover their short positions still open after gold spiked $100 back on June 24.

Eric King:  “Andrew, we’re seeing a massive takedown in the gold and silver markets today along with the shares, what’s really happening here?  What is really taking place?” 
Andrew Maguire:  “Close to a staggering 1,000 tonnes of paper gold has been rinsed out in the paper gold markets today…. 
Andrew Maguire continues:  “That’s just below the targeted 100-day moving average that was taken out earlier today.  Before this is finished today, this will exceed over a shocking 1,000 tonnes of paper gold that will have been rinsed. 
This takedown is a complete joke, and the wholesale market is all over (on the buy side of) this paper takedown.  This is a desperate effort by Western officials to cover massive offside pre-Brexit over-the-counter short positions put on by their agent bullion banks near the $1,275 level. – King World News
Each year approximately 2500 tons of gold are produced, making this paper contract dump equivalent to 40% of the world's entire gold production for 2016.

With the European banking system standing on the precipice of another liquidity crisis, and the Chinese beginning their new paradigm as a member of the IMF's SDR global currency, expectations of gold skyrocketing upward in the coming weeks or months left the bullion banks with little choice but to try to pull off a massive manipulation play to cover their several billion dollar short position that had left them vulnerable when they had bet against a Brexit vote.  And when China comes back online after their holiday ends this weekend, expect the price to climb back up over $1300 as it regains all its losses imposed upon it from yesterday's gambit.

Tuesday, October 4, 2016

Comex uses Chinese bank holiday to crush gold below $1300 and silver below $18

In recent history the West has used bank holidays, or low volume periods in Asia, to dump futures contracts worth millions and sometimes billions of ounces despite the fact that these bullion banks never provide the physical metals to support their trades.  And it is through this mechanism that the central banks often use bullion banks, and the shorting of paper contracts, to prop up the dollar when it comes under pressure.

However, it is this week in particular, from Oct, 2 - 7, that the Comex and London Gold markets can get their biggest bang for their buck in driving down gold prices thanks to little opposition from Asian buyers.

Live New York Gold Chart [Kitco Inc.]

Live 24 hours silver chart [Kitco Inc.]

With several black swans hanging over both the economy and the markets, central banks are using every measure possible to protect the dollar, especially in light of the fact that the Chinese Yuan has now become a global currency that is in direct competition with the U.S. reserve.  And unless something significant occurs between now and the end of this trading week, look for the precious metals to fall under even more extreme pressure, and be beaten down for no particular reason other than through the manipulations imposed by the bullion banks.

Monday, October 3, 2016

New head of the London Gold markets is a former employee of one of the central banks that manipulates gold prices

One of the biggest jokes going around in the U.S. is that the Treasury Department is little more than a 'trading desk' for Goldman Sachs.  That is because several of the most recent Treasury Secretaries have worked for the Wall Street giant, and their touch extends even beyond Washington and into the halls of the European Commission in Belgium.

So with this in mind it should come as no surprise that the new head of the London Gold markets is a former executive with one of the most manipulative central banks against the gold price.

One of the most interesting points in the previous article referred to the very recent appointment of a very recently departed Bank of England senior staff member, and former head of the Bank of England Foreign exchange Division, Paul Fisher, as the new ‘independent‘ chairman of the LBMA Management Committee / ‘Board’. Paul Fisher has also in the past, been the Bank of England’s representative, with observer status, on this very same LBMA Management Committee (now LBMA Board) that he is now becoming independent chairman of. Fisher is replacing outgoing LBMA Board chairman Grant Angwin, who if from Asahi Refining (formerly representing Johnson Matthey). - Bullion Star
The significance of this appointment is that London currently remains the most important gold market in the world, and has the authority to set prices two times a day.  However this power is being threatened very strongly by China, which now has the largest physical gold market in the world based in Shanghai.

And on a side note, it is also extremely interesting to see how most of the world's central banks are treating Deutsche Bank these days, especially in light of the insolvency crisis they are currently experiencing.   After all, they were the ones who informed regulators earlier this year that central banks, including the Bank of England, have been manipulating the price of gold for years.

Saturday, October 1, 2016

LBMA in process of modernizing Western gold markets with blockchain based electronic trading

With the rise of the one true physical gold market coming out of Shanghai, China in the past year, the London Bullion gold market has been seen to be both antiquated, and no longer of significant relevance as it primarily trades in paper contracts and rarely delivers physical gold.  And with their paper based trading and gold derivatives making the institution little more than a mechanism to protect fiat currencies by beating down the fair market trading of gold, the both the LBMA and other European gold markets are now looking to modernize through the potential of blockchain technologies.

The London Bullion Market Association has started negotiations with two financial technology firms to create a trading platform for precious metals, according to two people with direct knowledge of the matter. 
The partnership between Autilla Ltd. and Boat Services Ltd. was selected for further talks, according to the people, who asked not to be identified because the discussions are private. 
“It would be premature to comment at this stage as no legal agreements have been signed with any provider,” Ruth Crowell, chief executive officer of the LBMA, said in an e-mail to Bloomberg News. 
The LBMA, which represents London’s gold market, is seeking to modernize the world’s largest gold-trading hub, an over-the-counter system that clears more than $5 trillion a year. Regulators are pushing for more transparency and tighter controls. In other cities, such as New York, transactions take place on an exchange. 
The LBMA’s platform would mean deals between two parties can be posted and stored in a database, and eventually lead to the publication of a forward price curve.
Companies including the London Metal Exchange, Intercontinental Exchange Inc. and CME Group Inc. submitted proposals for the platform, people familiar with the matter said in February.- Bloomberg
And over in the rest of Europe...
Euroclear, the world’s largest Belgium-based asset and securities settlement cooperative founded by J.P Morgan & Co., attended the SIBOS Annual Conference in Geneva, Switzerland with Paxos to announce their joint project and explain the importance of a secure and efficient infrastructure in unsystematic gold markets. 
The Paxos-Euroclear gold market-focused Blockchain settlement solution will be the first of its kind and most likely the only Blockchain settlement platform to be integrated by a major market like the London Bullion Market. 
Paxos CEO Charles Cascarilla believes that a robust and secure Blockchain-based infrastructure will enable the London Bullion Market as well as other leading gold exchanges to autonomously process trades and increase the efficiency of the post-trade process. - Cointelegraph