6-Month Gold and Silver Charts
_____________________________
In The News Today - www.jsmineset.com
Posted October 16th, 2014 at 6:06 PM (CST) by Jim Sinclair
GEAB N�88 is available! Global systemic crisis - 2015: The world is defecting to the East
Two important facts emerge from the past four weeks' news. First, China is becoming the world's largest economic power, officially overtaking the US, based on GDP measured in purchasing power terms (IMF figures) of $17.61 trillion (compared to $17.4 trillion for the US). If the official media hasn't raised the slightest eyebrow to this information, our team believes that it's an historic event: the US is no longer the world's largest economic power and, inevitably, that changes everything !...
More...
***
In The News Today - www.jsmineset.com
Posted October 16th, 2014 at 6:06 PM (CST) by Jim Sinclair
CIDRAP: "We Believe There Is Scientific Evidence Ebola Has The Potential To Be Airborne"
Submitted by Tyler Durden on 10/13/2014 21:46 -0400
When CDC Director Tim Frieden first announced, just a week ago and very erroneously, that he was "confident we will stop Ebola in its tracks here in the United States", he hardly anticipated facing the double humiliation of not only having the first person-to-person transmission of Ebola on US soil taking place within a week, but that said transmission would impact a supposedly protected healthcare worker. He certainly did not anticipate the violent public reaction that would result when, instead of taking blame for another epic CDC blunder, one which made many wonder if last night's Walking Dead season premier was in fact non-fiction, he blamed health workers for "not following protocol."
And yet, while once again casting scapegoating and blame, the CDC sternly refuses to acknowledge something others, and not just tinfoil blog sites, are increasingly contemplating as a distinct possibility: namely that Ebola is, contrary to CDC "protocol", in fact airborne. Or as, an article posted by CIDRAP defines it, "aerosolized."
Who is CIDRAP? "The Center for Infectious Disease Research and Policy (CIDRAP; "SID-wrap") is a global leader in addressing public health preparedness and emerging infectious disease response. Founded in 2001, CIDRAP is part of the Academic Health Center at the University of Minnesota."
The full punch line from the CIDRAP report:
We believe there is scientific and epidemiologic evidence that Ebola virus has the potential to be transmitted via infectious aerosol particles both near and at a distance from infected patients, which means that healthcare workers should be wearing respirators, not facemasks.
In other words, airborne. And now the search for the next LAKE, i.e., a public company maker of powered air-purifying respirator (PAPR), begins.
More...
***
Jim's Mailbox - www.jsmineset.com
Posted October 16th, 2014 at 5:07 PM (CST) by Jim Sinclair
Jim,
QE to infinity?
CIGA Craig
Craig,
QE to Infinity, or whatever new name they decide to give it.
Jim
Fed's Bullard says QE3 could last longer than October
The Federal Reserve should consider extending its bond-buying program beyond October to see how the U.S. economic outlook evolves, said James Bullard, the president of the St. Louis Fed, on Thursday. At the moment, the Fed is buying $15 billion in securities each month. The U.S. central bank has said it expects to end its QE3 program at the end of October, but Bullard noted that the plan was always data-dependent. Bullard said the Fed cannot "abide" the drop in inflation expectations seen in the Treasury Inflation-Protected Securities. "Maybe this is a juncture where we want to invoke this clause that it is data-dependent," Bullard said in an interview with Bloomberg News.
More...
_____________________________
India's Gold Imports Soar 450% in September - www.caseyresearch.com
By Ed Steer
October 16, 2014
The Wrap
Well, dear reader, yesterday's action in the equity markets, the currencies---and the precious metals---should leave no doubt in anyone's mind that the Plunge Protection Team is not only alive and well, but was at battle stations yesterday.
Only the willfully blind, along with those whose jobs depend on them not seeing or speaking the obvious, will consider it to be free-market forces at work. And the word egregious doesn't begin to adequately describe it all, as it was a complete perversion of everything that capitalism really stands for.
As I get sick of writing---and as you're getting sick of reading---if the powers-that-be put their hands in their pockets and let the markets do what they want so desperately to do, the world's financial system would be a smoldering ruin in five business days, or less. Wednesday's price action in all things financial, before 'da boyz' stepped in at 9:40 a.m. EDT, should leave no doubt in anyone's mind that this would have been the outcome by the close of trading in New York yesterday.
It will all come tumbling down sooner or later, of course---and as I said before, the forces that prevented it from occurring, are only delaying the inevitable.
Continue reading on Casey Research.com.
Critical Reads
World economy so damaged it may need permanent Q.E.
Combined tightening by the United States and China has done its worst. Global liquidity is evaporating.
What looked liked a gentle tap on the brakes by the two monetary superpowers has proved too much for a fragile world economy, still locked in "secular stagnation". The latest investor survey by Bank of America shows that fund managers no longer believe the European Central Bank will step into the breach with quantitative easing of its own, at least on a worthwhile scale.
Markets are suddenly prey to the disturbing thought that the five-and-a-half year expansion since the Lehman crisis may already be over, before Europe has regained its prior level of output. That is the chief reason why the price of Brent crude has crashed by 25pc since June. It is why yields on 10-year US Treasuries have fallen to 1.96pc, and why German Bunds are pricing in perma-slump at historic lows of 0.81pc this week.
We will find out soon whether or not this a replay of 1937 when the authorities drained stimulus too early, and set off the second leg of the Great Depression.
This is the second commentary in a row from Ambrose, but this one showed up on The Telegraph's website at 9:36 p.m. BST yesterday evening---and I found it embedded in a GATA release. It's definitely worth reading.
Read more...
Calling Russia 'threat to humanity' puts Obama's sanity in doubt - Medvedev
The Russian PM has suggested that Obama's charges against Russia were caused by a "brain aberration" and added that such rhetoric saddened him.
"I am very upset by the fact that President Obama, while speaking from the United Nations' podium and listing the threats and challenges humanity is currently facing, put Ebola in first place, the Russian Federation second and the Islamic State organization was only in the third place. I don't even want to comment on this, this is some sort of aberration in the brain," Dmitry Medvedev said in an interview with CNBC television.
The top Russian official stressed that his country was not isolating itself from the rest of the world, but sought mutually beneficial cooperation with foreign nations. "We want to communicate with all civilized peoples on friendly grounds. Of course, this includes our partners from the United States of America, but for this the situation must be leveled," Medvedev said.
However, the Russian PM also noted that the Western sanctions have inflicted considerable damage to Russia's cooperation with the US, and without cancellation of this policy there can be no return to partnership.
This news item appeared on the Russia Today website at 10:58 a.m. Moscow time on their Wednesday morning---and I thank Roy Stephens for sending it.
Read more...
When It Comes to Beheadings, ISIS Has Nothing Over Saudi Arabia
The escalation of the war against the Islamic State was triggered by widespread revulsion at the gruesome beheading of two American journalists, relayed on YouTube. Since then, two British aid workers have met a similar grisly fate. And another American has been named as next in line by his terrorist captors.
Yet, for all the outrage these executions have engendered the world over, decapitations are routine in Saudi Arabia, America's closest Arab ally, for crimes including political dissent-and the international press hardly seems to notice. In fact, since January, 59 people have had their heads lopped off in the kingdom, where "punishment by the sword" has been practiced for centuries.
The Saudi legal system is based on Islam's Sharia law. Some countries that use Sharia possess a penal code, but Saudi Arabia does not, although some activists have been calling for reform.
If you're on the squeamish side, this Newsweek story may not be for you. But, now that I've warned you, it's worth reading anyway. It was posted on their website at 12:56 p.m. EDT on Tuesday---and I thank reader A.V. for bringing it to my attention---and now to yours.
Read more...
Gold Imports by India Seen Rising More Than Fourfold Last Month
Gold imports by India, the largest user after China, probably surged more than fourfold last month on expectations declining prices would boost festival demand.
Purchases are estimated at about 95 metric tons compared with 15 tons to 20 tons in September last year, said Bachhraj Bamalwa, a director at the All India Gems & Jewellery Trade Federation. The government raised import taxes for a third time in August last year after a month earlier obliging importers to set aside 20 percent of purchases for re-export as jewelry.
India represented 25 percent of global demand in 2013. Imports of gold were valued at $3.75 billion in September, 450 percent more than a year earlier, the Commerce Ministry estimates. Buying and gifting of gold is considered auspicious and the most favorable time is the festival of Dhanteras, two days before Diwali which occurs on Oct. 23. Festivals run through November and the wedding season follows to early May.
"These are normal imports before Diwali," Bamalwa said in a phone interview from Kolkata today. "There is no abnormal feature. Prices have fallen in the international market and this is good for Indian consumers."
This gold-related news item, filed from New Delhi, appeared on the Bloomberg Internet site at 3:53 a.m. Denver time on Wednesday morning---and I found it embedded in a GATA release. Reader U.M. sent us another story on this. This one is headlined "Country's gold imports rising on price slide & festive demand"---and it showed up on Economic Times of India website at 7:02 p.m. IST on their Wednesday evening.
Read more...
Gold imports soar 450% in India
The Indian government has been proved right once again in not lifting its curbs on gold. Trade deficit has widened the most in 18 months, as imports of the precious metal have surged.
Gold imports jumped about 450% to a new high of $3.75 billion in September (versus $682.5 million y/y). In August 2014, gold imports stood at $2.04 billion.
This as the trade deficit widened to $14.25 billion in September, from $10.84 billion a month before.
Falling inflation might just not be enough, say trade experts. With a muted export performance in September, the trade figures have raised concerns of worsening external account, especially if the global economy continues to remain sluggish.
I know that the headline is similar, as is part of the story, but this article goes into far more depth. It was filed from Mumbai yesterday as well---and showed up on the mineweb.com Internet site. It's the final offering of the day from Manitoba reader U.M., for which I thank her. It's worth reading.
Read more...
***
Gold Stubs Swiss National Bank's Toe, and the Financial Times Says 'Ouch!' - www.caseyresearch.com
By Ed Steer
October 15, 2014
Saudis Deploy the Oil Price Weapon Against Syria, Iran, Russia, and the U.S.
Asian stock markets continued to fall today, propelled at least in part by the adverse reaction to the Saudi announcement yesterday that they would let oil prices fall to $80 a barrel. And further reports indicate that the Saudis intend to keep oil prices low enough to force a realignment of prices not just among various grades of crude, but also for intermediate and long-term substitutes.
It is critical to remember that the Saudis have no compunction about imposing costs on other nations to maximize the value of their oil resource long term and hence the power they derive from it. The 1970s oil shock produced a nasty recession in the US and most other advanced economies and gave a further impetus to inflation, which was already hard to manage and dampened growth by discouraging investment.
The current alignment of factors gives the Saudis the opportunity to make life miserable for a long list of parties they would like to discipline, including the US.
The sharp rise in the dollar means that lowering the price of oil in dollar terms is unlikely to leave the desert kingdom worse off in local currency terms. But it undermines US energy development, both fracking and development in the Bakken, as well as more development by the majors, who were regularly criticized by analysts for how much they were spending on exploration when the math didn't pencil out well at over $100 a barrel. Countries whose oil is output is mainly heavy, sour crude, like Iran and Venezuela, find it hard to sell their oil when prices are below $100 a barrel (or at least when the dollar was weaker, but the $80 price point, even with a strong dollar, may be low enough to cause discomfort).
In other words, this is a classic case of predatory pricing: set your price low enough long enough to do real damage to competitors, and reduce their market share, not just immediately, but in the middle to long term.
This amazing commentary appeared on the nakedcapitalism.com Internet site yesterday---and it falls into the absolute must read category. My thanks got out to reader U.M. for bringing it to our attention.
Read more...
Fighting back, First Majestic delays sale of silver amid price weakness
Ninety-nine point nine percent of gold and silver mining companies and their executives are brain-dead, merely geologists and accountants, unaware of the monetary nature of their product and how their product is priced by surreptitious market intervention by central banks. But here and there certain companies and their executives have a clue, and First Majestic Silver Corp. today again proclaimed itself to have far more than a clue.
First Majestic announced that it won't sell its metal into the recent weakness in the silver futures markets. In a statement the company said:
"Silver prices declined 19 percent in the third quarter, representing the second largest quarterly decline since the financial crisis in 2008. As a result of this weakness, the company decided to temporarily suspend silver sales in an attempt to maximize future profits. This suspension of sales will result in lower revenues and earnings for the third quarter. However, it is likely that these inventories of unsold ounces will instead be sold in the fourth quarter. As of September 30, 2014, approximately 934,000 ounces of silver were held in inventory."
CEO Keith Neumeyer and his company First Majestic Silver, not being a member of The Silver Institute, can do what he wants---not like the other bought and paid for companies that are listed as members. I'm a shareholder in this company---and have been for almost as long as it has been around. I applaud this move---and so should you, as it takes real courage to lead in times like this. I just hope that there's no surprise blowback from left field in the near future. This GATA release is definitely worth reading.
Read more...
Lawrence Williams: Expect big silver price surge if gold stays positive
What a difference 10 days makes. A little over a week ago the gold market was all doom and gloom with the yellow metal crashing back below $1200 an ounce. But with a few extraneous geopolitical and global health factors positively impacting the market, and the possibility of a general stock market crash in the minds of investors, gold has seen positive action on the price front in something of a safe haven turnaround. But silver, on the other hand, has hardly moved at all. Compare the 30-day kitco gold and silver charts below - courtesy kitco.com and kitcosilver.com .
Historically, silver prices have sharply outperformed gold when precious metals prices are rising, and sharply underperformed when they are falling yet this pattern on the upside has just not yet started to appear. But if the recent gold price rise isn't just a blip then we would expect silver to start to move upwards - and move upwards fast.
After all, as we pointed out in our recent article looking at silver supply and demand - see: Silver in supply deficit but price unmoved so far there is no big surplus of silver coming to the market although admittedly there have been some strange movements in and out of the big silver ETFs which could affect short term supplies.
Most recently perhaps the most respected silver analyst, Ted Butler, who scrutinises such matters more closely than anyone else, commented "There was some unusual activity in the big silver ETF, SLV, this week as 4 million oz were withdrawn. I say unusual because deposits into and withdrawals from SLV have been somewhat counterintuitive recently, namely, deposits have come on price weakness and withdrawals on (relative) price strength. One would normally expect the opposite to occur."
The silver price will rise when JPMorgan et al are instructed to let it happen---and not before. This commentary by Lawrie appeared on the mineweb.com Internet site yesterday---and it's worth reading as well.
Read more...
_____________________________
Richest 1% own 50 percent of world wealth - Credit Suisse report -rt.com
Published time: October 14, 2014 14:36
Edited time: October 16, 2014 10:48
World wealth has reached a record $263 trillion but is concentrated in fewer hands. The richest 1 percent have accumulated more wealth, and own almost 50 percent of it, which could trigger recession, according to a new report by Credit Suisse.
The Credit Suisse Global Wealth Report, released Tuesday warns that the "abnormally high wealth income ratios" may spark a recession, as high disparity leads to economic friction.
Global wealth has grown to a record $263 trillion in mid-2014, $20.1 trillion more, and an 8.3 percent increase, over mid-2013. Household wealth has more than doubled since 2000, when the same report calculated it at $117 trillion.
Leading the money trail is the United States, dubbed 'Land of Fortunes' by the report, which again boasts the highest average wealth. It is home to 34.7 percent ($91 trillion) of global wealth. Europe's portion comes in a close second with 32.4 percent, followed by India and China's 23.7 percent share, and then the 18.9 percent concentrated in the Asia-Pacific region.
Continue reading on RT.com.
_____________________________
The Aden Forecast - adenforecast.com
Will the December low hold, or not?
Granted, gold closed a dollar below the December closing low, but for practical purposes it held. Now, here is the deal...If gold closes below $1180 and stays there, this D decline will become a clear second leg down in the bear market... a very bearish sign. It would be saying the bear market is very much alive and well.
As you can see on the chart, the next support level would then be the $1000 mark, which is both the 2008 peak area and the bottom side of the down channel.
But, on the other hand, if gold stays above $1180, the D decline will be breaking out of its bearish mode. Its decline will then be moderate, which would be a good sign.
This month and next will be the true test. Just staying above these lows will be a good thing. A rise above $1230 would be a great start to stability!
What about silver?
The leading indicator (B) is showing that gold shares could decline further to probably test the 2008 lows while the indicator reaches the low level.
That is for now, because on a bigger picture basis, gold shares are extremely oversold, the most in years. A good example is shown on Chart 22, comparing gold shares to gold. This ratio continues to bot- tom at the lower side of a 45-year down channel!
Mining Shares
The mining shares are forming a massive formation and once complete, we should see gold shares explode upward versus gold.
The leading indicator (B) is showing that gold shares could decline further to probably test the 2008 lows while the indicator reaches the low level.
That is for now, because on a bigger picture basis, gold shares are extremely oversold, the most in years. A good example is comparing gold shares to gold. This ratio continues to bottom at the lower side of a 45-year down channel!
This is a massive formation and once complete, we should see gold shares explode upward versus gold.
Latest thoughts
The U.S. dollar index has been softening. It's now below its five-week moving average for the first time since the rise began in July. If it now stays below 85.50, a downward correction will be in place and the foreign currencies will likely continue to head higher. If you still have other currencies, that'll provide a good opportunity to sell. In other words, the U.S. dollar remains poised to rise further once this downward correction ends, probably in the weeks ahead. So keep your cash in U.S. dollars.
Gold bounced up this week to a five week high, also rising clearly above its five week moving average for the first time since the July-August highs. If gold now stays above $1215 it'll be the first step of a bottoming process, which is a good sign for gold overall. Silver and gold shares are stabilizing above the lows, which is also good. But they have the pressure of the sluggish global economy and the falling stock market to deal with. Silver will begin to look better above $17.60, just as XAU will look better above 82.
To read the full article, please subscribe to The Aden Forecast.