Friday, December 21, 2012

James Turk discusses Indian Gold Ban and the Queen's visit to BoE

James Turk discusses the Indian government attempting to curb physical gold imports and promoting paper promises for gold. James also discusses the recent "audit" of the Bank of England's gold vault by the Queen. Listen to the KWN interview here

USA Watchdog news wrap

From usawatchdog

Breaking The Set with Gerald Celente

From breakingtheset

Capital Account with Eric Fry and Joel Bowman

From CapitalAccount

Weekend Chillout - Wishing Our Gold was Here

With this weeks' stunning announcement from the Reserve Bank of Australia that 99.9% of Australia's Gold Reserves are kept at the Bank of England (read story here) it makes me wish that the gold was not  stored with our former colonial masters and was instead kept here in safe Australia.

In 2013 The Fed Will Conjure Enough Paper Money To Buy 11% Of All Existing Gold


Original source

When people throw around "trillions" (and in the case of Yen-denominated Japanese debt and/or total outstanding gross derivatives, quadrillions) with the facility that mere billions was being dispensed with as recently as 5 years ago, it is easy to lose sight of the big picture.

So what is the big picture? Well, recall the following quote from Warren Buffet's letter to investors:

"Today the world’s gold stock is about 170,000 metric tons. If all of this gold were melded together, it would form a cube of about 68 feet per side. (Picture it fitting comfortably within a baseball infield.) At $1,750 per ounce – gold’s price as I write this – its value would be $9.6 trillion....You can fondle the cube, but it will not respond."

Gold is now 7% lower, and even when netting incremental mining production in the interim since this letter was written, one can roughly say that the total value of all gold in the world is ~$9 trillion. In other words, in 2013 the Fed, alone, excluding all the other central banks, which as we pointed out earlier is vary naive, will conjure out of thin air enough 1s and 0s, equivalent to $1 trillion, or enough money to buy 11% of all the gold in existence in the world. Add all the other central banks, all of which are now engaged in "unlimited easing", and this number will likely rise to about 20% of total.

In 3 years of unlimited easing, which at this pace looks quite possible, after all all Chairmen have made it clear there will be no end to the global paper printing until 2015, enough electronic money will have been created to buy more than half of all god in existence.

In 5 years? All of it.

So, once again, which is the scarcer commodity?

David Morgan Gold & Silver Update

From silver

Oh Santa you did get my letter

From the guys at Gainsville Coins - Stacking Santa:

Assange's Christmas address from Ecuador embassy in London

From RussiaToday

The man on the frontline of the information battle, Wikileaks editor Julian Assange, has given a Christmas address. He has delivered his speech from the balcony of the Ecuadorian embassy in London, where he's been ensconsed for six months, after being granted political asylum - READ MORE

Gold and Silver Pre-Christmas Sale Doubles Down

Aren't the markets wonderful, here is me I have left my Christmas shopping to the last minute and as a reward for my procrastination the markets put on a door buster sale just for me. Happy Happy Joy Joy.

In New York trade overnight gold was sold down $20 and silver an massive $1.20 (I am old enough to remember when a 10c move in silver was huge) in a continuous rout from the start to end of the session.

No doubt the fecal cliff will be blamed, no manipulation here boys, nothing to see here, move on and keep trading.

Charts from

Kaiser Report - Battle of Wall Street

From RussiaToday

In this episode, Max Keiser and Stacy Herbert look at the shootout at the OK Bond Corral as sovereigns battle Wall Street -- which in turn battles state pension funds -- for the same piece of infinitely re-hypothecated garbage collateral. In the second half, Max Keiser talks to hedge fund manager and 'Planet Ponzi' author Mitch Feierstein about the bond market, central bank-induced deflation and the London property market.