Posts tagged Gold
New Interview with SGT Report with Michael Krieger: The Great Awakening
Michael Krieger: It’s been a little while since my last interview with SGT Report, so I’m really pleased to be able release the recording of a chat we had last weekend. I was in an area with spotty internet connection, so you will notice some bad audio quality in the beginning, but I promise it gets better from there. It’s actually mind-boggling to think about all the topics we covered, so brace yourselves for a 27 minute political hurricane. Enjoy!
The Rise Of The Bear: 18 Signs That Russia Is Rapidly Catching Up To The United States
The Russian Bear is stronger and more powerful than it has ever been before. Sadly, most Americans don’t understand this. They still think of Russia as an “ex-superpower” that was rendered almost irrelevant when the Cold War ended. And yes, when the Cold War ended Russia was in rough shape. I got the chance to go over there in the early nineties, and at the time Russia was an economic disaster zone. Russian currency was so worthless that I joked that I could go exchange a 20 dollar bill and buy the Kremlin. But since that time Russia has roared back to life. Once Vladimir Putin became president, the Russian economy started to grow very rapidly. Today, Russia is an economic powerhouse that is blessed with an abundance of natural resources. Their debt to GDP ratio is extremely small, they actually run a trade surplus every year, and they have the second most powerful military on the entire planet. Anyone that underestimates Russia at this point is making a huge mistake. The Russian Bear is back, and today it is a more formidable adversary than it ever was at any point during the Cold War.
Just check out the following statistics. The following are 18 signs that Russia is rapidly catching up to the United States…
#1 Russia produces more oil than anyone else on the planet. The United States is in third place.
#3 Russia produces more natural gas than anyone else on the planet. The United States is in second place.
#4 Today, Russia supplies 34 percent of Europe’s natural gas needs.
Image credit: http://theeconomiccollapseblog.com
The Coming Shortage Of Physical Gold That Will Change Everything
Is the paper gold scam about to be brutally crushed by a crippling shortage of physical gold? If so, what will that do to global financial markets? According to the Reserve Bank of India, “the traded amount of ‘paper linked to gold’ exceeds by far the actual supply of physical gold: the volume on the London Bullion Market Association (LBMA) OTC market and the major Futures and Options Exchanges was OVER 92 TIMES that of the underlying Physical Market.”
In other words, there is a massive amount of paper out there, but very little actual physical gold to back it up. And right now, we are witnessing voracious hoarding of physical gold all over the globe. This is especially true in Asia. Just see this article and this article. All of this hoarding is putting a tremendous amount of pressure on those that have made all of these “paper promises”, because the truth is that there really isn’t all that much physical gold on the planet. In fact, Warren Buffett once estimated that if all of the gold in the entire world was brought into one place, it could be formed into a cube that would only be 69 feet long by 69 feet high by 69 feet wide.
As the emerging shortage of physical gold becomes increasingly apparent, the massive Ponzi scheme that the bullion banks have been running for decades is going to completely fall apart. The following is what Egon von Greyerz told King World News the other day…
Governments and central banks have, for decades, leased or sold their gold to the bullion banks. So they are very likely to own very little of the 23,000 tons that Western central banks are said to hold.
But now bullion banks also have a problem: They tried to replenish their (physical gold) coffers during the massive manipulative selling that we’ve seen over the last few months in the paper market. Although they took the price down, most of the physical (gold) that was released by selling from ETFs and hedge funds was absorbed by Asia.
So the bullion banks are still massively short of physical gold.
Right now there simply is not enough physical gold out there and the bullion banks and the central planners are starting to panic. One of the individuals that really has his hand on the pulse of what is going on is billionaire Eric Sprott…
We have seen the COMEX inventories decline rapidly. We know that all of the dealer inventory on the COMEX has already been spoken for by delivery notices, so essentially there will be zero (inventory) if they ever make the delivery.
And the central planners (also) went to India and said, ‘Look, you’ve got to do something about all of this gold buying in India.’ So we’ve had ten different steps by the Indian government to try to curb demand — a 2% tax, a 4% tax, a 6% tax, an 8% tax, and a ruling that banks couldn’t lend money for people to buy gold.
They also convinced the Jewelers Association that as of July 1st they couldn’t sell gold bars and coins. Just last week there was a new rule implemented that if you are importing gold you have to prove that a certain amount is being re-exported. We’ve probably had ten or twelve things (restrictions) happen in six months, all of which is a huge attempt to get the second biggest buyer of gold in the world, after China, to decrease consumption because the gold isn’t around.
The central planners have arranged all of these things. I think it’s just been one big scheme to try to get people dissuaded from owning gold and to cause supply to come out. As you mentioned, because of it (central planner actions) we have the gold forward rates (for gold) being negative, backwardation, and inventories plunging, all of which have been manifested because there is a shortage of gold.
Already the emerging shortage of physical gold is starting to cause some very unusual things to happen in the financial markets. A recent article by Reg Howe did a good job of explaining what we have been witnessing lately…
By undercutting normal gold lease rates, these super low interest rates have forced central banks to reduce their lease rates to nonsensical levels in order to prevent gold futures from going into overt backwardation. Recall that GOFO, the gold forward rate, is the interest rate for a given maturity less the lease rate for that maturity, and that a negative GOFO represents backwardation. See Gold Derivatives: GLD and Ass Backwardation (5/24/2010); Gold Derivatives: The Tide Turns (5/25/2009). Passing the argument that widely reported premiums for spot physical delivery represent a form of backwardation, figures from the LBMA have now shown a negative GOFO at the shorter maturities for almost three weeks (July 8 through July 25) due to a surge in lease rates, which still remain below more normal historical levels.
Indeed, this unusual event has attracted considerable attention even from those outside the narrow world of gold. See, e.g., J. Skoyles, Backwardation, negative GOFO and the gold price, The Real Asset Co. (July 24, 2013); M. Kentz, Gold futures hiccup indicates demand outpacing supply, Reuters (July 19, 2013); G. Williams, What If, Things that Make You Go Hmmm, Mauldin Economics (July 15, 2013).
The bottom line is that there is a very serious shortage of physical gold, and as this becomes increasingly apparent to the rest of the world, this is likely to cause a tremendous amount of instability in the financial markets in the months ahead.
For much more on this, please see the recent interview with Alasdair Macleod of goldmoney.com that is posted below…
Right now we are also witnessing tremendous demand for physical silver as well.
For example, the U.S. Mint is going to break the all-time record for July by a very wide margin, and it is being projected that sales of Silver Eagles will likely be above 45 million for the entire year.
And remember, unlike gold, silver is used in thousands of different consumer products. So silver is continually being used up and taken out of the overall global supply.
Image credit: http://endoftheamericandream.com
It Is Happening Again: 18 Similarities Between The Last Financial Crisis And Today
If our leaders could have recognized the signs ahead of time, do you think that they could have prevented the financial crisis of 2008? That is a very timely question, because so many of the warning signs that we saw just before and during the last financial crisis are popping up again. Many of the things that are happening right now in the stock market, the bond market, the real estate market and in the overall economic data are eerily similar to what we witnessed back in 2008 and 2009. It is almost as if we are being forced to watch some kind of a perverse replay of previous events, only this time our economy and our financial system are much weaker than they were the last time around.
So will we be able to handle a financial crash as bad as we experienced back in 2008? What if it is even worse this time? Considering the fact that we have been through this kind of thing before, you would think that our leaders would be feverishly trying to keep it from happening again and the American people would be rapidly preparing to weather the coming storm. Sadly, none of that is happening. It is almost as if they cannot even see the disaster that is staring them right in the face. But without a doubt, disaster is coming. The following are 18 similarities between the last financial crisis and today…
#1 According to the Bank of America Merrill Lynch equity strategy team, their big institutional clients are selling stock at a rate not seen “since 2008“.
#2 In 2008, stock prices had wildly diverged from where the economic fundamentals said that they should be. Now it has happened again.
#3 In early 2008, the average price of a gallon of gasoline rose substantially. It is starting to happen again. And remember, whenever the average price of a gallon of gasoline in the U.S. has risen above $3.80 during the past three years, a stock market decline has always followed.
#4 New home prices just experienced their largest two month drop since Lehman Brothers collapsed.
#5 During the last financial crisis, the mortgage delinquency rate rose dramatically. It is starting to happen again.
#6 Prior to the financial crisis of 2008, there was a spike in the number of adjustable rate mortgages. It is happening again.
#7 Just before the last financial crisis, unemployment claims started skyrocketing. Well, initial claims for unemployment benefits are rising again. Once we hit the 400,000 level, we will officially be in the danger zone.
#8 Continuing claims for unemployment benefits just spiked to the highest level since early 2009.
#9 The yield on 10 year Treasuries is now up to 2.60 percent. We also saw the yield on 10 year U.S. Treasuries rise significantly during the first half of 2008.
#10 According to Zero Hedge, “whenever the annual change in core capex, also known as Non-Defense Capital Goods excluding Aircraft shipments goes negative, the US has traditionally entered a recession”. Guess what? It is rapidly heading toward negative territory again.
#11 Average hourly compensation in the United States experienced its largest drop since 2009 during the first quarter of 2013.
#12 In the month of June, spending at restaurants fell by the most that we have seen since February 2008.
#13 Just before the last financial crisis, corporate earnings were very disappointing. Now it is happening again.
#14 Margin debt spiked just before the dot.com bubble burst, it spiked just before the financial crash of 2008, and now it is spiking again.
#15 During 2008, the price of gold fell substantially. Now it is happening again.
#16 Global business confidence is now the lowest that it has been since the last recession.
#17 Back in 2008, the U.S. national debt was rapidly rising to unsustainable levels. We are in much, much worse shape today.
#18 Prior to the last financial crisis, Federal Reserve Chairman Ben Bernanke assured the American people that home prices would not decline and that there would not be a recession. We all know what happened. Now he is once again promising that everything is going to be just fine.
Are the American people going to fall for it again?
Image credit: http://theeconomiccollapseblog.com
Massive Fire JPMorgan Gold Depot
Published by Ondertube2013 on 7/20/2013
Additional information & image credit: http://www.silverdoctors.com
*UPDATE: FDNY tweet confirms fire is in a commercial vault at JPMs old HQ of 15 Broad St.
A journalist on scene on Wall Street this evening has just sent us footage of a massive fleet of Firetrucks and ambulances in front of the JP Morgan Chase building, with fire-fighters stating they are responding to a COMMERCIAL VAULT FIRE IN THE BASEMENT!
With JPM’s gold inventory plunging 66% Friday to an all-time low of 46,000 ounces, and with reportedly over 502,000 ounces still standing against JPM for the JUNE gold contract, is the long anticipated force-majeure event in progress?
Posted by Judy Morris
JPM Eligible Gold Plummets By 66% In One Day To Just Over 1 Tonne, Total Gold At Fresh All Time Low
New Michael Krieger Interview with Gold Money: Tear Down Those Pyramids!
It’s only been a few hours since my interview with Gold Money News’ Félix Moreno was posted to youtube, but I’ve already experienced a flood of positive feedback. It’s almost impossible to fathom the tremendous ground covered. We start off discussing some of the more interesting aspects of my time on Wall Street (a topic I rarely discuss) and then move along to how Western retail gold positions are moving over to China, Russia and other savvy buyers.
The big message; however, is a very optimistic view of the future, after we depose of the cancerous forces ruling over us currently. There is absolutely zero reason to be afraid of the “New World Order.” It’s here already. It was set up behind our backs in the shadows, while most of us were firmly asleep in the matrix. The only thing we need to do now is focus our efforts on dismantling it. Looking into the future, I strongly believe that humanity does not need centralized government. We must move away from the highly pyramidical political structures we have been forced to live under and toward political decentralization. Decentralization doesn’t mean not being connected to each other. We can be more connected than ever across the planet via the internet and other modern technological resources. I also believe our children and our children’s children will look back at our political structures with complete bewilderment, and future generations and historians will view Central Banking as modern day slavery. Enjoy!
19 Reasons To Be Deeply Concerned About The Global Economy As We Enter The 2nd Half Of 2013
Is the global economic downturn going to accelerate as we roll into the second half of this year? There is turmoil in the Middle East, we are seeing things happen in the bond markets that we have not seen happen in more than 30 years, and much of Europe has already plunged into a full-blown economic depression. Sadly, most Americans will never understand what is happening until financial disaster strikes them personally. As long as they can go to work during the day and eat frozen pizza and watch reality television at night, most of them will consider everything to be just fine. Unfortunately, the truth is that everything is not fine.
The world is becoming increasingly unstable, we are living in the terminal phase of the greatest debt bubble in the history of the planet and the global financial system is even more vulnerable than it was back in 2008. Unfortunately, most people seem to only have a 48 hour attention span at best these days. They don’t have the patience to watch long-term trends develop. And the coming economic collapse is not going to happen all at once. Rather, it is like watching a very, very slow-motion train wreck happen. The coming economic nightmare is going to unfold over a number of years. Yes, there will be moments of great panic, but mostly it will be a steady decline into economic oblivion. And there are a lot of indications that the second half of this year is not going to be as good as the first half was. The following are 19 reasons to be deeply concerned about the global economy as we head into the second half of 2013…
#1 The velocity of money in the United States has plunged to an all-time low. It is extremely difficult to have an “economic recovery” if banks are not lending money and people are not spending it…
#2 The fall of the Egyptian government threatens to bring even more instability to the Middle East. In response to the events in Egypt, the price of oil rose to more than 101 dollars a barrel on Wednesday.
#3 Every time the average price of a gallon of gasoline in the United States has risen over $3.80 in the past three years, a stock market decline has always followed.
#4 As the world becomes increasingly unstable, massive citizen protest movements have been rising all over the globe…
The protests have many different origins. In Brazil people rose up against bus fares, in Turkey against a building project. Indonesians have rejected higher fuel prices, Bulgarians the government’s cronyism.
In the euro zone they march against austerity, and the Arab spring has become a perma-protest against pretty much everything. Each angry demonstration is angry in its own way.
#5 The European sovereign debt crisis is flaring up once again. This time it is Portugal’s turn to take center stage…
Image credit: http://theeconomiccollapseblog.com/
We’re Going Into the Greatest Depression: “They Will Not Be Able To Pull Off the Stimulus Game Again”1
Posted by Judy Morris
We’re Going Into the Greatest Depression: “They Will Not Be Able To Pull Off the Stimulus Game Again”
Look around and you can’t miss it.
The world is on the brink… politically, economically, financially, monetarily, and militarily.
Events are accelerating. Over the last decade trend forecaster Gerald Celente has been blaring the alarms.
If you’ve been paying attention, then you’ve heard them. You know we’re going under.
And this time they’re not going to be able to stop it.
It will be worse than the panic of ’08. It will be deeper. It will be more painful and there’s a reason why… because they will not be able to pull off the stimulus game again.
Everybody got hip to it and it didn’t work. You read even the Financial times, the major media, CNBC, Bloomberg… everyone will now admit that the stimulus only bought borrowed time. So the stimulus game doesn’t work anymore, and the governments are so in debt they can’t have the fiscal policy. So you have no monetary policy and you have no fiscal policy to stimulate the economy.
We’re going into the Greatest Depression.
But they will try to boost it some way. And that’s when I believe gold and silver prices will again skyrocket. They can stay low, I believe, for another several months… even a year. But I don’t see them staying down forever.
Read the rest at SHTFplan.com, here.
from Gold Silver Worlds:
MOSCOW EXCHANGE WILL OFFER PHYSICAL PRECIOUS METALS TRADING – A GAME CHANGER?
We have reported extensively about Russia’s love for gold, for instance here and here. The Russians are not too happy with the violent gold price crash since mid-April. It is widely known that the price decline was induced by the COMEX futures market. Russia is now leading the wave of reactions by launching a physical precious metals exchange. The exchange will start trading gold and silver by the end of this year. Platinum and palladium trading will be launched in 2014. Russia has so far only been trading futures on gold and silver, not dealing with real metals.
RTwrites: “Trading physical metals is expected to boost liquidity in the market and attract more participants.” Furthermore, “the Moscow stock exchange plans to transport precious metals from production companies, keep them in its own stores and deliver to the buyer the next day. The launch of trading in gold and silver on the Moscow exchange will boost liquidity on the market and attract more participants by these new financial instruments.”
Read More @ GoldSilverWorlds.com