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Gold $1773.20 DOWN $11.90
Silver $34.07 DOWN $ 0.83It didn’t take the paper thrashers long to attack gold in the last two days when our markets closed earlier.
The following link shows what the miscreants do just after the Comex session ends, throw paper (gold?) market orders into an arena where most folks have gone home for the day and trading is thin. Watch what happens when the Asians wake up.
http://www.kitco.com/charts/livegold.html
It is clear what is currently taking place: with the financial situation in Italy worsening, following on the footsteps of Greece’s troubles, our leaders are tarnishing the idea of owning and buying gold and silver by manipulating it lower.
In the current market their chances of temporarily succeeding seem in their favor. Gold is coming down off the round number of 1900 and silver has struggled in the past two days with its 50 day average at 35.05, a favorite spot for sellers to attack the metal when it approaches from below on a rally.
Some of Jim Willie’s comments from his 10-12-11 article entitled, Euroland and The Gold Recovery:
This article would be remiss not to point out that history is being made. The COMEX has decided to raise margin requirements when a falling price is occurring, for both gold & silver. Normally, the opposite is the case. Notice no USTBond margin hikes, even though an asset bubble. Policy is to tarnish the precious metals as the global monetary system continues to crumble, as the USGovt deficits head toward $2 trillion annually, and the USEconomy enters a recognized recession along with Western Europe, before renewed stimulus is attempted.
With all the destinations staring the bankers and politicians in the face, they wanted the Gold & Silver prices to be pushed down. The next upsurge will be one for the history books. With new money heading to fill holes in the bank bond bailouts, the recapitalization of numerous banks, the economic stimulus, and the government debt monetization (led by the US), the debasement of major currencies will be astounding. The Gold & Silver prices will make strong new highs repeatedly.
“Gold Miners Bump Up Their Dividends” Will the senior gold mining shares be the blue-chips of tomorrow?
Gold $1793.80 UP $39.80
Silver $34.94 UP $ 0.81The previous entry seemed to paint gold’s picture a little too negative. Mr. Armstrong was just commenting on a subjective technical look, taking into consideration how things could change with following technical chart damage.
Here are some of his recent comments:
Our long-term view in NY GOLD maintains that only a temporary high maybe in place at this time. In the event of new intraday highs developing beyond this year, then the final high could extend into2013 if we see a yearly closing above the 2011 high. On the other hand, continuing to make new highs beyond 2013 would warn of a broader rally extending into as late as 2017. However, if new intraday highs are not sustained next year, then 2011 may produce the temporary high on a closing basis as well as on a cyclical basis with a retest of support into 2012 on a year-end closing below 131050. To remain in a bullish position for 2012, gold needs to close above 143600 at year-end.
The broader price picture on gold from Martin Armstrong:
Gold on the Quarterly Level has not broken through the primary channels technically constricted from the Breakout Lines of 1985 and 1999. Our oscillators are showing that we are starting to turn down and the Entropy Model shows that this too is starting to turn down. These indications warn that a retest of support and consolidation may be necessary to rebuild a strong base of support from which to advance further in the years ahead. A Quarterly closing below 148000 will indicate that the trend will turn back down to retest support. A closing below 130900 will not indicate that a bear market could be developing into 2013 or at least a near-term consolidation. The major support begins at 111300 and a quarterly closing beneath this level will signal a sharp decline becomes possible down as far as 850000
Reap
I think the lynch mob mentality of the State has us where they want us, in court awaiting a judge’s decision based on missed reports and their excessive penalty charges. When governments in the past got caught with their legal pants down they blew up buildings and destroyed records.
When the Water Board was proven incompetent by experts provided by the company all hell broke out against the accusers. The Board even lost(destroyed) important documents. The Board even failed to acknowledge that our mill was closed and never issued a reclassification for reduced water testing thus failing to competently represent the people of California and continued their questionable personal stance against the company and especially, its president.
It’s now all left in the hands of, hopefully, a judge who represents the people of California not to punish a company and shareholders into liquidation of their prime asset for failing to file some reports.
I understand the subject matters before the court. What does it prove to put a company out of business when they could be made whole and be productive and in the process be an important employer in the County again providing jobs and State revenues?
You would think, aside from abusively regulating us all to death, that State politicians could attempt to be creative in figuring out ways to improve job growth for revenue as opposed to the ATM Debt Machine and the stealing of other peoples properties.
We must never forget that the laws that apply to our case were not voted in by the people, they were created by appointees and were crafted personally in a sense against our company because we had a president who fought for our rights as property owners and our rights to participate in running a business.
We need a Patriot to end this nonsense.
Greece is a financial time-bomb ticking away. If Greece decides to go it alone and leaves the Euro there will be massive financial consequences around the world for all connected banks and their customers. If they remain with the Euro, it will just take longer.
Will the Fed throw Greece a lifeperserver in preventing a fall-out from rippling over here? Quite possibly but at whose expense? Certainly not any of the big US banks whose crooked accounting ledgers would be laughed at out loudly by anyone who really knew what their condition was in.
People are in the streets today because they have been hosed at the expense of keeping the casino playing banks from going bust. A gigantic mistake made during the days of TARP legislation was not taking the burden off some from the strained mortgage payers in reducing their balances and payments due by 25%. Martin Armstrong has stated that this act would have prevented all the misery that families have suffered and would have stabilzed the housing market some while its downward cycle was generally in force for many years ahead. But for the banks to take a haircut to keep the economy going was too much to ask for.
Fortunately, starting in mid-2012 Martin Armstrong expects home prices to trend higher for the following three years then more of the same later.
By 2015 it would be not a surprise to see gold near or past $5000 an ounce. In ResourceWorld Magazine’s current issue Nick Barisheff the president and CEO of Bullion Management Group Inc says that gold is on its way to $10,000.
Buy gold and silver and invest in your future.
http://news.yahoo.com/analysis-leaving-euro-carries-massive-costs-181337877.html
Bluejay, you’re right that the Judge is to represent the people of the County. Superior Court Justices are elected by the people in a general election, AND the term of Presiding Judge John P. Kennelly expires January 2013. That means that in the Nov 2012 General Election County residents will be voting for a Superior Court Justice.
Plus 1 for grass roots is a possible campaign that can affect the election results.
Is the next phase of the case before a Judge alone, or can a Jury be requested? Plus 2 for grass roots is having a Jury that that clearly understands how the $2 million fine is destroying the opportunities for a large number of residents. The County could lose mining jobs and all the secondary jobs, shop owners, builders, etc that depend on the mining jobs. The even much greater danger for mining in the County is that a finding against the Mine will Embolden the Water Board and other regulators as well as set a precedent for future abusive legal actions against all mining companies, not just the Sixteen. This will Destroy the economy of the County for a long time. I really believe that the future of mining in Sierra County is at stake here. County residents need to know what is going on, how it affects them, and what they can do about it.
Gold $1764.10 UP $26.70
Silver $34.51 UP $ 0.24
XAU/Gold Index .1185(50 AVG. .1168)Aside from Armstrong’s cycle projections, the European Central Banks unexpectedly lowered interest rates today thus resulting in demand for gold.
The whole fiat monetary system has begun slowly coming apart at the seams. Few world politicians understand what needs to be done and few, if any, will admit their ignorance. The name of the game for them is to retain their power and status by printing more money and exponentially increasing debt.
We all need to be our own central bankers. Holding physical gold and silver while reducing debt, if possible, will be the order of today for tomorrow’s survivors.
Gold has bettered its 50 day moving average line at 1730.75 and needs to stay above it for any sustained upward movement over the near term. The XAU/Gold ratio continues to remain above its 50 day average with the last being above the .1168 level. The possibility improves of the shares being better performers against the metal at current levels.
I don’t know if the Mine can get all or part of the $2 million to pay the Water Board fine. From the little information that I have about the case, I think that the State would do whatever it feels it needs to do to force the Mine to get the cash. If the Mine can get this money over a couple of years, I would suggest the following as a powerful first step. On whatever social medium the Mine is a member and in the Mountain Messenger, Sacramento Bee, etc. explain in detail how the Water Board fine came about, what happened in Court and the injustice of the fine. Then make a statement that if the Mine did not have to pay this fine, $2 million would be used to hire miners and pay salaries. So the choice that the VOTING public would have is a) do nothing and see $2 million go to the State, or b) mobilize resistance against the fine and get X number of JOBS. Of course this all depends on the ability of the Mine to get the money. If choice b) is taken, then I don’t think that the Water Board stands a chance to get a single dollar. Choice b) also buys time by delaying the whole process by a year, maybe 2, and it raises public awareness of the situation IN AN ELECTION YEAR. If successful it also sets the stage for bringing together the Mining Community and the State Regulators to negotiate a balanced set of regulations that both protects the environment and encourages mining companies to get back to the business of mining. There is enough money at $1720.90 an ounce to accomplish both these goals.
Bluejay! Thanks for your reply. The Haile Gold Mine case is seen as important and potential precedent setting case for the entire Mining Industry. It made the headlines on several International Mining websites.
I TOTALLY agree with you! The lawmakers and self-serving politicians don’t understand the economy and can’t or will not do anything useful. The $2 million is just a short term money grab that will have Very Negative consequences for the Mining Industry and the People of Sierra County for a LONG TIME to come. The County is in Real Trouble right now, and people are HURTING. As you say, the County is very rich in resources, but these half-as** politicians are unable to see past their own petty careers. They have totally bankrupted the State with the greatest natural wealth! Sierra People are HURTING and they don’t see any way out. But there is a way out….if they would organize and channel their energies into making Sierra County wealthy again and a great place to live.
Thanks to the blessings of Saint Steve (Jobs) for the first time in history, there is a chance for Real Democracy. Personal computing devices + internet = Democratic Power to the People. The “Arab Spring” and the “Occupy” movement are dramatic proofs of this. The uprising of the people in Lancaster County, South Carolina in favor of the Haile Gold Mine is an immediate demonstration of what can be done by the will of an organized populace.
I compared the demographic statistics for Lancaster County to those of Sierra County to see how their case would scale in our county. The most recent data is for Aug, 2011 from the Federal Bureau of Labor Statistics. For Lancaster: 30,252 Total Workforce; 4,591 Unemployed; 15.2% Unemployment Rate. For Sierra: 1,590 Total Workforce; 227 Unemployed; 14.3% Unemployment Rate. Lancaster is a larger county with a 1% higher rate of unemployment. So now let’s scale:
Lancaster County:
200 people complained 200/30,252 = 0.66% of Workforce
800 jobs created 800/30,252 = 2.6% resulting in a new Unemployment of 12.6%For Sierra County to scale:
0.66% X 1,590 = 10.5 people need to complain
2.6% X 1,590 = 41.3 new mining jobs need to be created.Mining in Sierra should be able to mobilize at Least 10 times as many people for a lot more than 41.3 new jobs in the whole County.
The moral of this story is that what was done in Lancaster can be done in Sierra, and so much more. The Town Hall is a device that Lancaster used to drum up support. With the higher penetration of PC’s, Macs and the internet in our County, organization and mobilization should be easier, faster and bigger. Besides the Social Media used in the Arab Spring, there is also excellent software that provides for a real time virtual Town Hall. A couple of these are GoToMeeting and GoToWebinar. Via the internet people can be organized around common issues to create a large grass roots movement. Then real face-to-face Town Halls can be scheduled with the Regulators and Lawmakers invited to “Face the Music”.
I guess that the Bottom Line is that the $2 million Water Board fine demonstrates that the Legal System and the greater overall State System is a greedy and unresponsive Dead End. The only alternative that I see is a grass roots movement which if done well is far more powerful than legal fighting. Remember, 2012 is an Election Year!
Reap and Rick, lead the way.
Gold $1720.90 UP $2.10
Silver $33.79 OFF $0.16
XAU/Gold Ratio .1158It is suspected that gold and silver will trend lower over the next weeks ahead.
Gold is experiencing resistance following recent strength as it approached the 50 day average and briefly passed it on the chart at the 1732.64 level. http://www.stockcharts.com ($gold).
Silver is backing down as well from its 50 day moving average at 35.84 while the same average has recently sold beloiw its 200 day line at 36.36 which is threatening its overall short term health.
It is expected that both metals will be inclined to be in the defensive mode as backing and filling continue during this overall resting period down from highs made made months ago.
Reap! I’ve been pushing cyber recognition of this egregious situation with scant results….but the Mine is finally offering a Facebook page….but as we know this isn’t the end of the potential; hardly even a blip on the radar.
ALL: let’s take Reap’s advice and do everything we can to energize the movement. Reap will organize us….we will multiply…to expose the crap and shut the a-holes down to a point of our recovery.
We are at the brink.
Reap
Your example in South Carolina of what can happen between mining, consideration for the environment along the will of some of its people is an excellent example of the beginnings of putting folks back to work. Career politicians have miserably failed in representing the people. Being an elected official is an honor that must be respected!
Unfortunately, for the great majority of lawmakers it’s all about them and what they can suck out of the system. This travesty has, as everyone knows, has brought a great deal of Americans to their knees and has broken up many families over money issues that these politicians, themselves, have created.
One familiar with history knows exactly how this country was built, excluding all the engineered wars around the world for the benefit of the munitions industry building killing machines.
America’s wealth came from the fields of agriculture, ranching and the mining. THAT IS THE CREATION OF REAL WEALTH, NOT A PRINTING PRESS. Now the people behind the curtain with the aid of paid-off politicians are trying to destroy America’s original fiber that supported our evolution from those early days.
Americans need to get organized to stop this vicious trend moving toward its self destruction. Reap, Town Hall Meetings are where it must begin.
The Sixteen to One Mine is a gold pocket mine that in past years has found it difficult to financially manage itself as a result of its ore placement. In our managing a feast or long enduring dry spell in the pursuit of gold, the State has kicked us around with nothing better to do adding to our burdens.
One of the most intelligent men in the world, Martin Armstrong, has repeated stated that we are over-regulated by leaders that don’t know how to manage an economy because they don’t understand it. The usual expected result is for them to trash it. Printing money and placing debt proves they are confused and don’t have a clue.
Sierra County doesn’t need outside regulators to direct how we are all going to survive. The Coutry has abundant natural resource wealth and it’s about time things changed. The people need to be told that it’s time to extract our golden treasures and be independent. Everyone needs to turn off their TV’s and reintroduce themselves to the independent creative thought process.
The sheriff with an expanded staff can run the county. We don’t need any more outside interference from career politicians who could care less about us. The CDAA visit should have awakened contry residents to what is coming. This incursion probably was one of the most shameful acts perpetuated against Sierra Country folks by the State.
California has been ruining our lives with their financial mismanagement and trying to control us like trained circus animals for way too long. What ever happened to our self respect??
Thanks to Reap, we have an idea of having town hall meeting as to see what direction we want to pursue. Either getting folks back to work and regaining some self respect, or continue doing nothing and expecting more of the same from the State politicians.
This $2 million plus suit against potentially one of the Coutry’s largest employers is nothing more than an attempt to steal property and beat down residents again with more abused power santioned by the State.
When is enough, enough???
Hey Bluejay, I’m not quite sure in which Forum category to post this. I chose yours because it demonstrates the powerful leverage that current high prices for gold can have on a Community. This ever strengthening Bull Market for the Yellow Mineral has caused a Community in South Carolina to give Very Strong support to a mining Company. Here is what I think is a very interesting article published yesterday, Friday; “Gold mine plan draws avid support … Many of 200 at hearing covet 800 jobs mine would bring”. Here’s a link to the full article: http://www.thestate.com/2011/10/28/2025954/gold-mine-draws.html
It’s about a very large open pit gold mine, Haile Gold Mine, in South Carolina. I know that this is different in at least two main areas. First, Sierra County gold is found in underground pockets of hard rock. Second, 800 new jobs is probably much larger than that which could be created in the County. But it seems that Haile faced similar problems: environmental issues; Federal and Local Government, etc. They also had the disadvantage of having the site mined by a foreign corporation. But to me, the most important point is that they had one or several “Town Meetings” in which they demonstrated that their plans for reopening the mining operations would be a great benefit to the hard hit Community. Has anything like this ever been tried in Sierra County? Like Lancaster County, Haile’s location, Sierra County has a high unemployment rate. Also like the Haile mine, the Original Sixteen to One Mine has major water issues. Strong public support forced officials to find a satisfactory compromise between improving the local economy with jobs and protecting the environment. Remember, it only took 200 people! Could a Town Hall(s) focusing on job creation in mining help overturn the $2 million fine unfairly imposed by the Water Board? Might it also greatly improve the economic future of and political support for mining in the whole County?? I’m new to mining, but “my very humble opinion” is that there is probably a large pool of pro-mining public support that can be created and tapped to improve both mining and the economy of the Sierra County.
Strong public support can be translated into another benefit, greater access to cash, both debt and equity. I own a small dormant gold mine/patented claim that seems to have good potential. So I’ve started to explore some possibilities. The first reaction that I get, which is also universal, is that the government regulations and restrictions in California are too burdensome. I feel that with strong public support the environment for mining in the State could dramatically improve. This would significantly increase the interest of possible investors.
Anyway, this is the Management Consultant half of my brain talking. Creating public support is essentially a “Basic Marketing” job. I don’t know the history, attitudes, or concepts that the local people have about gold mining. But I think that it is worth looking into. I would appreciate anyone’s feedback on this.Gold $1744.80 DOWN $0.90
Silver $35.20 UP $0.11
XAU/Gold Ratio .1193 UP .0029
Gold/Silver Ratio 49.57
XAU Index 208.20 UP 4.84
HUI Index 584.07 UP 15.84In a lackluster day for gold and silver something very interesting is happening with the gold and silver shares. The strength of the miners against gold has improved 2.5 percent at .1193 since yesterday as the last on the XAU/Gold Index has bettered the 50 day average at .1166. Usually when moving averages are penetrated they signal a change in direction. We’ll just have to wait and see if trading above an important moving average holds up which will indicate the shares could finally be starting to outperform the metal.
If this is the case, the million and millions of shares(naked shorts) that have been sold with no delivery intentions could get a real fright in the weeks and months ahead.
The above development is quite interesting with the Dollar Index at 75 last which is very near to support in the 73-74 zone. The currency is about 5 points lower since the beginning of this month.
It would certainly appear possible for support to give way with the 50-200&1000 day moving average lines all providing barriers of resistance above. The downside action under a weakening Dollar scenario, beneath its established support zone, could plummet it to the 65 level which certainly would bring buyers back into gold, silver and mining shares.
Aside from this positive short term development, it is best to keep in mind that the dark forces seem to perpetually concoct selling pressure on our group and a buying reserve should ALWAYS be maintained for bargain prices.
The opinion here is that the paper charade of consequences for gold and the shares continues to be possible from these miscreants but their days of manipulation are growing limited going into the future with a major gold exchange opening in China in July of 2012.
It is expected that when China is open for business trading volume on the Comex and in London will shrink. So, the days of rising margins for gold and affecting lower prices at the Comex, especially, may just become mute.
We should also keep in mind that Martin Armstrong’s cycle studies are indicating that gold is just not ready yet for its major push to the $5000 level and some more consolidation, with possible lower prices, could be with us for an unknown limited amount of months ahead. Mr. Armstrong expects the “big push” to begin no later than July of 2012.
Gold $1723.70 UP $19.10
Silver $33.23 DOWN $0.04Don’t think twice about replacing payment for oil with dollars hence the bogeyman may visit you, too.
(Kitco News) – U.S. Mint sales of American Eagle silver bullion coins have already broken the all-time annual record in 2011 with two months to go, reports the Silver Institute. The organization says that sales of 34,662,500 ounces in 2010 was the previous record. The Mint’s Web site currently shows that sales for 2011 to date are 36,375,500 ounces. “Monthly sales are averaging 3.7 million, and if the pace continues until year’s end, total sales could top 44 million for 2011,” says the Silver Institute in its October edition of “Silver News.”
Mike
The following comments from Bob Chapman today may address some of your curiosities:
The system is not working and no one wants to admit to it. The players do not know any other system, so they do not want to abandon the one that they have. You cannot maintain the system by creating more unpayable debt. The system that is currently functioning can’t continue to do so indefinitely.
As a result of these conditions and volatility many investors have left the markets and their assets have disappeared in a cloud of smoke. The big investment firms front running the market, naked shorting and government manipulation have driven many to cover.
Just this week we had two professional commodities traders close their accounts after having been successful for more than 20 years. They were simply tired of the manipulation and losses at the hands of their government. Over the past five years hundreds that we know of have quit. Before long there simply won’t be enough players left in the paper commodities.
Dear Bluejay, I have a Trading question for you. The relative values of international currencies fluctuate constantly, often moment to moment. Currency Traders working on the FOREX Market get very rich on split second arbitrage trades. The value of an ounce of gold in each currency also fluctuates. In contrast though, gold is traded in many different Markets. Do the FOREX currency-currency fluctuations and currency-spot.gold fluctuations occur simultaneously and in exact proportion? From a bystanders view, it seems that because currencies and gold are traded in such different markets they need not be synchronized. If they are not, even if there is only a very short time delay in the fluctuations, then there is another arbitrage opportunity: “currency A”-spot.gold-“currency B”-“currency A”. I’m interested in hearing your thoughts on this. Thanks! Ron
Bluejay,
Appreciate your thoughts on margin requirements for gold. By increasing the amount of dollars to buy 100 ounces of gold, the approach of those market players will significantly change. Do you think the market would become more speculative or less speculative? Volume will likely be less but how about volatility in pricing?Many understand that gold is the “real ” value or basis in the interchange of transactions and that paper currencies are the floating value. Does it make sense for people speculating in the paper world of gold pay the piper the same percentage of money as those who purchase physical gold?
Finally do you have an opinion on whether margins should be raised or lowered according to some other policy factors manipulated by bankers or US government regulations?
REAP
I have never made a trade in the Forex market or purchased or sold any commodity on a commodities exchange.
I would suggest either contacting Bob Chapman or Martin Armstrong for some experienced background comments.
Gold $1679.20 UP $4.70
Silver $32.49 DOWN $0.09
Gold/Silver Ratio 51.68
Xau/Gold Ratio 0.116Some strong remarks today from the International Forecaster’s Bob Chapman:
As far as we can determine the bottom in gold and silver began to be set two weeks ago, they have moved upward, but not as quickly as we had anticipated. The Working Group on Financial Markets has been attacking gold and silver still, but not with the firepower that they are capable of.
It looks like a delaying action in anticipation of further EU problems and forming an opportunity to accumulate long positions. We, via the COT commercial net short position reduction, see the big banks anticipating a strong upward move in both metals. We see such moves in spite of higher margin requirements by the criminal CME, owner of the Comex.
Government participation in manipulation of the dollar as well as gold and silver as usual emanate from the Exchange Stabilization Fund a subsidiary of the Treasury. Such antics killed off a move in gold to $2,200 and silver to test $50.00 again temporarily. We should see the major move in both metals shortly and by the end of February could see $3,000 gold and $65 to $75.00 (on silver). It depends in part on events and the government participation in the market.
Again, due to the speed of the downward move all small and medium players were again wiped out, as the banks earned large profits having rigged the results along with the government. Gold and silver will prevail and achieve much higher prices in spite of government and banking interference.
Gold $1624.80 UP $8.90
Silver $29.97 DOWN $0.70
Gold/Silver Ratio 54.21
XAU/Gold Ratio 0.114Ron Hera from Hera Research LLC has an excellent appraisal of what’s happening in the country and what Utah is doing to protect its citizens. Mr. Hera’s whole commentary along with Utah’s recent Monetary Declaration is the first piece tonight at http://www.jsmineset.com and it’s a whopper. Don’t miss this one.
Also, read http://www.martinarmstrong.org as Martin Armstrong seems to be at the top of his game with his past August commentaries concerning gold. Mr. Armstrong has been the spigot of enlightenment for those willing to relearn what they were never taught in school. The more of Mr. Armstrong you read at his site, the more intelligent perspective you will gain.
September 29, 2011, at 10:31 am
by Jim Sinclair at jsmineset.comIs There Blood In The Streets?
CIGA EricFear is the key element to control. Panic, induced by fear, generates selling. Bouts of intense selling keeps buyers disorganized just enough to prevent physical demand from overwhelming paper supply and maintain confidence in the old paradigm a little longer. Investors that recognize extreme through rare TA and money flows setups, or what traders often refer to as recognizing and buying “Blood In The Streets” survive and prosper despite ruthless, organized takedowns.
Gold $1609.20 DOWN $40.50
Silver $29.85 DOWN $ 2.03Below are a few selected comments from Bob Chapman in this morning’s International Forecaster:
The takedown of gold and silver markets over the past two weeks signified a new milestone in corruption, brazenness, arrogance and it reveals the level of evil control behind our government. This past week, in just one week, saw gold fall almost $200 and silver about $10.00. We have been involved in gold and silver for 53 years and the only event that comes close to this was October 19, 1987, when we witnessed the Bank of England sell down gold $100.00 under the orders of the Fed and the US Treasury, which borrowed the gold from the IMF. That was illegal, but that means little to the Illuminists who do as they please. Today thanks to Ronald Reagan we have the “President’s Working Group on Financial Markets,” which has legitimatized corruption to conform to the Keynesian model of corporatist fascism.
After the close on Friday we were informed, that the CME, which controls the Comex, had raised margin requirements on gold by 21%, silver 16% and in copper by 18%. In retrospect it is obvious that many banking insiders and traders knew early in the week that this momentous psychological warfare was going to be unleashed on these markets.
Your government definitely rigged these markets. Today in America and many other places as well, crime pays. What has been done to investors over this past week is not only a crime, but also a disgrace to all Americans.
Gold $1609.20 DOWN $40.50
Silver $29.85 DOWN $ 2.03Below are a few selected comments from Bob Chapman in this morning’s International Forecaster:
The takedown of gold and silver markets over the past two weeks signified a new milestone in corruption, brazenness, arrogance and it reveals the level of evil control behind our government. This past week, in just one week, saw gold fall almost $200 and silver about $10.00. We have been involved in gold and silver for 53 years and the only event that comes close to this was October 19, 1987, when we witnessed the Bank of England sell down gold $100.00 under the orders of the Fed and the US Treasury, which borrowed the gold from the IMF. That was illegal, but that means little to the Illuminists who do as they please. Today thanks to Ronald Reagan we have the “President’s Working Group on Financial Markets,” which has legitimatized corruption to conform to the Keynesian model of corporatist fascism.
After the close on Friday we were informed, that the CME, which controls the Comex, had raised margin requirements on gold by 21%, silver 16% and in copper by 18%. In retrospect it is obvious that many banking insiders and traders knew early in the week that this momentous psychological warfare was going to be unleashed on these markets.
Your government definitely rigged these markets. Today in America and many other places as well, crime pays. What has been done to investors over this past week is not only a crime, but also a disgrace to all Americans.
Gold $1657.20 DOWN $79.00
Silver $30.93 DOWN $ 4.91
Gold/Silver Ratio 53.58
XAU/Gold Ratio 0.114The CME members attacked gold, silver and copper with increased margin requirements.
Gold is now a minus 5 in a Granville down-field. The hunt is on for a low in gold. Just as a plus 19 in the preceding Granville up-field took gold to a higher high, the current down-field will lead us to a higher low within its current bull market trend.The following are comments from Kenny and Jim Sinclair at http://www.jsmineset.com:
Market Violence Will Create Large Bear Trap
September 23, 2011, at 1:49 pm
by Jim SinclairDear Extended Family,
A quote from CIGA Eric today completely encapsulates what we are experiencing in the gold market:
This is a repeat of 2009 – actually even more extreme readings than 2009. We are severely oversold today. Anyone not buying here does not believe in the fundamental story. In my opinion, this will be a huge entry point by 2012.
In conversations with Kenny we examined the worst case scenario in terms of the correctness of Eric’s comment with which we both totally agree.
Our conclusion is:
Market situations like this will be found to have held and created bear traps in several instances of similar pattern action over the past 30 years WITHOUT having continued further down to first major support. The current corrective pattern over the past 23 trading days strongly implies that the move below $1690 would continue on down to the core at $1665 at minimum as first bottom, and in the extreme to $1615, but not below $1584. This will happen prior to exhaustion and a return to the full bull trend.
So far the remaining successive levels of $2450/$2510; $2850/$2900, and $3280/$3330 are not affected.
Gold shares are being impacted by a field of problems as a result of the large short positions held in almost all. They are being taken advantage of today by pressuring the entities in hopes of causing long term holders to collapse in their commitments.
Respectfully,
JimGold $1642.70 DOWN $14.50
Silver $30.41 DOWN $ 0.52It sure would have been nice if someone had whispered into our ears that the announcement below concerning margin increases was coming out after the markets closed this past Friday. We all could have sold short gold and silver and made a tidy sum. Unfortunately for the shareholders in this group, the heavy-handed hedge funds and banks went berserk with their naked shorting slaughtering everything precious in sight.
If you believe there will be investigations taking place on the front-running of insider information, you had better think again. The regulators are paid to look the other way when it comes to the big boys. All this naked shorting causing wild swings in investor shares got started when the banks were allowed to get into the stock brokerage business.
The big banks have cleaned the clocks of our children with their house purchases in the past years, they have mismanaged depositors money, they have influenced their cronies in Washington to make us pay for their gambling losses and they are playing with our securities held in street name. Maybe, aside from naked short sales, our very own held seurities in account were used to flush everyones nerves on Friday.
Don’t buy into the Bank’s philosophy of having a paperless society. They are using our certificates as collateral for their insider trading follies. The way to get back at them is to take delivery of the shares and don’t leave more than enough money for three months check writing expenses with them. Aside, from their unnerving folks by crushing gold, silver and the shares, withdraw your excess bank funds for disposition into gold, silver and some into the senior gold shares.
23 September 2011, 4:55 p.m.
By Debbie Carlson
Of Kitco News
http://www.kitco.com/(Kitco News) – The CME Group is raising the margins needed to trade Comex gold and silver futures are being increased by 21.5% and 15.6%, respectively, and the change will take effect after the close of business on Monday, the exchange said late Friday in a press release.
The exchange is also raising copper futures margins by 17.6%.
The move by the CME Group to raise the margin needed – also known as performance bonds – to trade gold, silver and copper futures on the Comex division of the New York Mercantile Exchange comes as prices for the metals plunged during the past two days as part of a sell off in financial markets in general. The CME Group is the parent company for the Comex and Nymex.
Gold $1742.10 DOWN $38.40
Silver $36.16 DOWN $3.46
Gold/Silver Ratio 48.44
XAU/Gold Ratio 0.113 DOWN 0.007The precious metals along with the shares got zapped today once the Dow Jones Averages started to considerably get attacked with selling. The DOW closed off 391.01 today at 10,733.83.
Looking at the DOW chart, it is supected that the “powers to be” will use everything in their bag of tricks to hold it at the 10,750 level where the 1,000 day moving average line resides.
Today’s weakness in gold and silver and the precious metal shares smells of extreme market rigging. It is suspected that all the fiat cherleaders were involved: The plunge protection team, major banks and some of the major in-the-fold hedge funds.
Today’s slaughtering of our group brings back memories of the 2008 attack when major U.S. banks took the aggressive posture of selling short gold and silver while they all feared bank runs during the financial crisis. These miscreants discredit gold and silver and their companies by the use of paper products and the phony selling of shares that they do not hold.
My son compares these types of attacks as a hamster running of his wheel, a lot of noise and motion that go nowhere in long term time. The power mongers are raddling your cage in hopes of frightening you from either buying gold and silver and the shares or scaring you into selling them. Don’t fall for it!
Remember, paper products and naked shorting are forcing real assets lower. How much longer do you really think they can keep this up with banks around the world begging for more monopoly money from the U.S.? If it weren’t for the recent $2.3 trillion cash-swaps from Uncle Same, many European banks would have had to close their doors affecting in the process major U.S. banks. Who’s fooling who?
Gold $1798.20 DOWN $6.60
Silver $40.32 UP $0.58Gold completed its last Granville up-field of progressive advances at 19 about three weeks ago by advancing past the $1900 level for the first time. Eleven days ago it made another attempt at this level but retreated.
Currently, we are in a down-field of about 4 as gold pursues a resting period. Previously, these time-outs since early July have only lasted but a day or two with three cumulative down days needed to register a minus one in a down-field.
The relative strength of the gold and silver shares compared by the XAU Index to gold’s price continues to improve. The last on the $XAU:$GOLD chart from stockcharts.com is 0.123. Nine days ago the Index pushed above the 0.12 level which was considered positive. Breaching the 0.124 area where the 50 day average is located would be even better.
Overall, it appears the naked short sellers are slowly accepting the message that the gold price is for real. The greed factor is like an Arkansas tick once it gets ahold of you and these stock counterfeiters have always had a good dose of it.
well, I just viewed an article on
“fair and balanced” Fox tv news
on mines in Calif. and all the
enironmental “red tape”. I guess
the rest of the country just doesn’t understand the plight of
the mining in Calif. (or do they?)Gold $1839.70 UP $25.30
Silver $41.15 UP $ 0.86
XAU Index 218.52 UP 1.57Gold continues to bounce around, generally, between the $1800 to $1900 area.
Affecting gold today is, what will be the outcome if Greece falls?
Included below is a link to an excellent article written by Ambrose Evans-Prichard concerning the possible fate of Greece along with potential problems for Germany.
Reap
Martin Armstrong is the man that might have some answers or direction for you. Check out his website at http://www.martinarmstrong.org and maybe, send him an e-mail.
Check out his latest paper on the history of direct taxation, “Bound by the Theories of the Past.”
http://www.martinarmstrong.org/files/Bound%20to%20Past%2009-08-2011.pdf
Continue your education!
Mathematical based risk/reward summaries specifically created for the benefit of persons or companies interested in gold investment will help a beat up industry sector that remains a mystery to most financial professionals and investor/speculator folks. The old standby of reserves is mostly used; however it has become convoluted beyond value as an inclusive tool. I’ll pass today from going into the real and phony representations about “reserves” due to time constraints.
REAP, you are pondering why Gold mining died in California. The missing ingredient at the Sixteen to One and other locations is working capital, MONEY. To go forward in this discussion, the Sixteen will be the site. The analysis may be applied to other locations but not without tweaking for the most sensitive factors: geology, mineralogy history and location. What should capital look for in assessing the Sixteen or any gold mining venture?
It’s easy: return on capital; duration of time; break even , acceptable and whopping possibilities. Return will be from a cash dividend, a gold dividend or an increase in the price per share of stock. The Sixteen has 13,399,505 shares of common stock outstanding. Gold production measured in ounces or dollars must be divided by this number to gain a perspective for reward. The 2500-ounce day a few years back was valued at $1 million. Today that same day would be about $5 million or $0.35 a share.
How do the big mining companies look using a share outstanding analysis?
Below are shares outstanding from a Reuters Report.
Newmont……….…493,270,000
Barrick………….…999,330,000
Harmony Gold…..…429,810,000
Anglo American…..1,319,900,000
Goldcorp…………….736,300,000
Kinross…………….1,131,000,000I don’t have a calculator handy so you do the math regarding what it will take in gold production to use a comparison analysis of reward based on gold production. Gotta go
By education I am a Physicist/Business Consultant. One of my “hobbies” is applying mathematics to business problems. So here is an interesting question….at least to me. How much of the short term changes in the spot price of gold is caused by the degree of instability in the Stock Market?
Gold is known best as a safe haven in times of increasing risk. These days there is a long term and ever increasing risk due to possible Sovereign Debt default, deficit spending and inflation, and a growing realization of how little we can trust in the national and international financial systems. I believe that these are long term problems and will increase, or at least plateau out the price of gold for the foreseeable future. This kind of long term trend is not new and is well understood.
However, in the shorter term, say month to month, or quarter to quarter, the price of gold does fluctuate. And so does the Stock Market, but by larger deviations. The best mathematical relationship of risk, due to stock price variance, compared to the safe “risk-free” Treasuries is the Capital Asset Pricing Model, or CAPM. According to the CAPM formula the more a stock price varies from its average, the greater the risk, and the higher the return on that stock needs to be to offset that risk. The CAPM also applies to the Stock Market as a whole versus Treasuries.
Therefore it seems reasonable to look for a similar relationship between the Market as a whole and spot prices for gold. The greater the variances in the overall Market, the greater the risk; the greater the risk the greater the flight into safe assets like Treasuries and gold; and up goes the spot gold price. If such a relationship does exist, it might be useful for mining companies with sizeable inventories of gold. Has anyone looked for a correlation between the shorter term fluctuations of gold prices and the fluctuations in the overall Stock Market, or various Stock Market Indices? Or better is anyone interested in looking for such kinds of correlations? I’d like to hear your thoughts and comments.Gold $1862.30 UP $46.00
Silver $42.29 UP $ 0.69
Platinum $1843.00 UP $23.00
Gold/Platinum Ratio 1.01
XAU/GOLD Ratio 0.121
Gold/Silver Ratio 44.04The following was stated by Jeff Clark at Casey Dispatch today:
Governments: The CME hiked margin requirements on gold twice recently and five times on silver earlier this year. At some point a hike could be one too many, prompting investors to slow down on gold and turn to the undervalued equities to capture bigger returns. Another catalyst could be a government announcing they’re lowering tax rates on miners – a shock in the current rapacious environment that could see new money pour into the sector overnight.
Gold $1816.30 OFF $57.30
Silver $41.60 Off $ 0.36
Gold/Silver Ratio 43.66
XAU/Gold Ratio 0.124 UP 0.006As gold sold off today, a positive development took place for shareholders of the senior and junior producers. The XAU/Gold ratio advanced from a positive right ascending triangle chart formation. That ratio was up 0.006 at 0.124, surpassing resistance at 0.12. This definately puts added pressure on the shorts with gold falling while being great news for the longs.
The trend of gold and silver over the shares continues to be positive, which is negative for the stocks, but the shares are saying, not so fast as we are ready, willing and able to make up for lost ground.
I was in there today trying to fill an order for a senior gold and it wasn’t easy buying shares on the bid side just below prevailing prices with gold sliding.
I believe the gold shares are sending everyone an important message, the tide may be turning.
Gold $1884.20 UP $58.80
Silver $43.25 UP $ 1.75
XAU/Gold Index 0.118
Gold/Silver Ratio 43.56Comments from the Internatioanl Forecaster yesterday: “As we predicted a week ago Wednesday that gold would bottom out Thursday and rally $200 by today(Friday). Spot gold was up $47.70 to $1,873.70, as December rose $55.70 to $1,884.80. We apologize for being off by $15.20. Spot silver rose $1.54 to $43.02 and December rose $1.78 to $43.31. This was accompanied by a statement that the ECB hasn’t ruled out PIIGS gold as collateral for gold backed euro bonds. That was the impetus for the rally. No one considered that the scale of borrowing required is so large that there probably are other ways of trying to deal with the problem rather than gold. Gold could prove to be a drop in the bucket. In this conversation the Central Bank of Ireland said, it will not disclose whether the gold reserves of Ireland, six tons, had been swapped or loaned out, which means they are long gone. What a duplicitous group.”
It seems Bob Chapman is more in touch with the short term than Martin Armstrong who stated that last week gold would be in a trading range from about $1700 and $1825.
It is strongly advised that listening to Bob Chapman will be of great benefit for those still seeking a financial education. Access to daily interviews of Mr. Chapman are available at http://www.bobchapman.blogspot.com.
The two most favored gold Indexes, HUI and XAU, continue to lag in relative strength against gold. This lagging has been in process since September of 2010. During the period gold advanced over $600 while the shares have remained, generally, stagnant.
Both Indexes are at intermediate resistance areas or just under them. The HUI has trouble in the 600 to 620 zone and up to 650 while the XAU has problems at 230. The HUI close Friday at 618.30 while the XAU closed out the week at 222.79.
Many analysts suggest that the shares are undervalued. One of these market watchers is the respected Pierre Lassonde the chairman of the Canadian royalty concern, Franco-Nevada Corporation.
The gold and silver shares for months have been under pressure from the hedge funds who have been lessening their risk to their gold positions by shorting the shares. This spread has been profitable for them but people like Jim Sinclair and Bob Chapman have been saying lately that these folks have over-stayed their welcome with the greed factor consuming their better senses.
Somewhere in the future when the adjustment is made back to reality the shares will stage an historical run. It’s just a matter of time.
Gold $1824.50 DOWN $10.60
Silver $41.57 UP $ 0.22
Gold/XAU Ratio 8.37
XAU/Gold Ratio 0.119
Gold/Silver Ratio 43.89Martin Armstrong has recently said that he expects gold to be in a $1700 to $1825 trading range. Mr. Armstrong earlier hah spoken of expected weakness in the yellow metal starting in early Septermber. Other analysts are expecting gold to be higher in the months ahead.
It’s a mixed bag of nuts over the short term with the bull trend fully intact. Caution seems to be the order of the day for new long term buying of anything gold or silver related.
The XAU Index, representing gold and silver shares along with Freeport McMoran that mines a great deal of copper plus gold and silver, is in position to gain some minor relative strength against gold.
The following is a link to a relative strength chart of the XAU compared to gold.
http://stockcharts.com/h-sc/ui?s=%24XAU%3A%24GOLD
A right ascending triangle has been forming on the chart over the past four weeks between 0.11 and 0.12. A move above the top of the triangle will be received well by patient investors of this group with higher valuations. Although the overall short term trend continues to remain bearish against the XAU with gold, its shares will benefit some from a price move above the troublesome 0.12 area and possibly, set the stage for continuing better times for shareholders in this sector.
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