How can we ever find honesty and safety in the system as it exists?  

Bill Holter's Answer:  

I feel your frustration but please read my piece from yesterday They'll Call It "The G-20 Massacre!". The East led by China will change the way the world turns in finance and business.  They are in the process of isolating us as they did Mr. Obama yesterday, they also did this at last year's G-20 meeting.  Please understand that this picture pose below was not by mistake or oversight, NOTHING of this importance is oversight by the Chinese.  In my opinion we will wake up to a new financial world very soon, could be next week after the current G-20.  Gold, silver and many other things will be re priced in Asian "cash" markets, the COMEX will be relegated to a bad memory of dirty pricing.  The U.S. will be forced to do business on level terms and will have to change our business model to one of real competition as opposed to one of oppression.  Relax, Mother Nature is not dead, she is just off stage readying to pull the curtain down on our fraudulent markets.  Artificially low PM prices are demoralizing only if you don't see them for what they really are, a "subsidy" for your purchases.  Keep your head up and keep on stacking, our logic is correct and the current fraud will pass!

http://www.zerohedge.com/news/2014-11-05/because-nothing-says-best-execution-dumping-15-billion-gold-futures-0030et  

Andy Hoffman's Answer:

The "who" behind precious metals suppression as well as the "why," we have been writing of every day for the past decade-plus.  Suffice to say, it is led by the U.S. government, in its defense of the (dying) dollar-denominated status quo it dominates.

As for taking out a home equity loan to buy PMs, only you can feel comfortable with what you do with your money.  However, I personally wouldn't take such a risk - as if you need to sell your metal before the "jig is up," you are exposing yourself to catastrophic losses both financially and potentially of your home.

David Schectman

Quotes of the Day

"As for me, I feel comfortable in my long-term tradition of gold and silver. After all the currencies collapse, these will be the two last men standing."

- Richard Russell, Dow Theory Letters, November 11, 2014

"In recent months, gold has sold off on Fridays. But I thought the counter-activity today was important; gold was up sharply. I check 14 gold items each day and I note that all gold items were higher. I think big money sees QE4 ahead and is protecting itself." King World News note: On Thursday the number of silver bulls plunged to an all-time low, an astonishing 26 percent below what was seen at the bottom of the 2008 collapse, and 8 percent below the previous record low set at the end of 2013. This is an incredibly important contrarian indicator and extremely bullish for the price of silver going forward."

- Richard Russell, Dow Theory Letters, November 9, 2014

Today's Featured Articles

LeMetropole Café (Yesterday remains one of those days which will be hard to forget and one for The Gold Cartel Hall of Shame record books) (Here is the Silver to Gold Ratio, the number of ounces of silver one ounce of gold can purchase. Currently it stands at 74.60 ounces of silver to 1 ounce of gold. Considering everything, that is awful high.)

King World News (Russell - Critical Moment For Gold, Stocks, Dollar & The World)

Zero Hedge (Why The Stock Market Is Detached From The Economy) (ISIS Going Back To The "Gold Standard")

Bill Holter

The "Golden" Cat Is Out Of The Bag!

November 12, 2014

Gold and silver price manipulation, "we" have talked and written about it for years.  I can still remember speaking two or three times a week with the late Harry Bingham back in 1997 and '98 regarding this topic.  No matter what "event" popped up which logically and in the past should/would have pushed the price of gold higher, we would see waterfall action instead.  Then along came Bill Murphy and Chris Powell of GATA.  They put forth all sorts of anecdotal evidence, work by Frank Veneroso, James Turk and others which made the "manipulation picture" clearer.  Each piece along the way was added to the previous pieces and made it clearer "we were right."

Of course, along the way there have been slurs and smears of GATA's work and those of us who put the pieces together shedding light on the fact that gold and silver prices were manipulated.  I must say, it was quite a frustrating experience when often times there was obvious evidence to the 3rd grade mentalities out there yet supposedly "smart" people would just turn their noses up saying "that proves nothing."  Even the latest operation last Wednesday at 12:30 AM where one week's worth of global gold production (40 tons) was sold in the tight window of and Indian holiday and Chinese/Japanese lunch break was "apologized away" as being "routine selling."  Yes, I will agree, it has "become routine" but in no way is it "right."  Selling that which does not exist is illegal, morally wrong and in this case aimed squarely at suppressing the price.  This is either "price fixing," or "collusion," both supposedly illegal.

UBS has agreed to pay a fine without of course admitting any guilt.  It is said there are several other banks negotiating their own deals in London on this same issue.  So yes, the prices of gold and silver have in fact been manipulated unless you want to say UBS and the other banks are agreeing to pay their fines out of "nuisance" and just want it to go away.  I find the timing of this very interesting.  Is this action coming out of London in an effort to show the Chinese (G-20 and the rest of the world) they are cleaning up their act?  What about here in the U.S.?  Will the CFTC stand alone and look the other way finding "nothing actionable"?  As for the 40 tons "sold" last week, do you think the Germans might be thinking "hey, we want some of that, where's our gold?  We asked for less than that for year one and only got 5 tons, was some (or all) of that 40 tons our gold?"   

In my opinion, London's action of bringing this to light now is very significant.  Not just because of the BRICS and G-20 meeting but because it comes at a time when GOFO rates spiked negatively suggesting a very tight gold supply in London.  Are the British regulators trying to get out ahead of this?  Is it possible that the vaults are close to empty?  Based on what we know of Chinese and Indian imports the last few years, Western vaults have certainly been dented badly, maybe this move by the regulators is a "tell?"  We will soon know one way or the other!

The UBS fine in my opinion is merely the tip of the iceberg and before this saga is over we will find out that gold and silver prices have been "locked" down in many other various ways.  We know about the "gold fix" being "fixed."  Now we know about UBS and LBMA dealings not being proper, the last straw will be COMEX in the "land of free and fair markets" but I wouldn't hold my breath waiting for U.S. regulators.   

This "rigging" revelation has many more and far reaching repercussions than first meets your eye.  This is not about gold, nor silver.  This is not even just about the dollar, interest rates or the Treasury markets.  This is about EVERYTHING!  First, it's about the "honesty" of Western markets which for 100 years has been held up as the reason "why" to invest in the West.  Next, it is about the standard of living in the West, particularly the U.S.  If gold and silver were allowed to rally, back in 1997 and '98, maybe the dot com bubble would never have occurred or at least to the extent that it did.  The housing crisis would not have happened because interest rates could not have been lowered the way they were.  The U.S. could not have gone $18 trillion into debt because we could not have afforded 6% interest rates on the balance.  The past economic "growth" and standard of living would have been far lower.  Elections (if not stolen) would have come out differently, people would have lived their lives differently and decisions on the allocation of capital would have been far different.  Yes, EVERYTHING "would have" been different!

So here we are and now we know.  The "lunatics" who sounded logical but were "always wrong" were right all along and for the right reasons!  What will this mean?  If as I believe, the Chinese and the rest of the world are now demanding free, fair and honest markets out of the West as a requirement to doing business and "sitting at the table," then "things" will change in a very big way!  Call it a reset, dollar devaluation, financial crisis or whatever you'd like, "it" is coming.  The standard of living in the West is about to change.  We will be required to work, and actually produce things.  No longer will we be allowed to import real goods and export as payment ...fake money.  The fake money will be devalued and with it all savings being held by institutions solvent or not.   

I want to go back to the very basics as to what "underpriced gold means."  It means that your dollars are valued too high.  It means that the interest rates you pay on everything are too low.  This means that your house is worth less than you think because new buyer's incomes can't stretch to current pricing.  It means the stocks you own are far too high and their PE ratios should be much lower.  It means that everyday goods you buy from Walmart should cost more.  Europe is living with $10 per gallon gasoline while we are under $3, how will that sit when it hits our shores?  None of these "situations" should have or could have ever happened if gold was priced higher, maybe multiples higher than it is and has been.   

Now, the cat has come gingerly crawling out of the bag and everything I and my "tinfoil hat" colleagues have told you for so long turns out to have been so.   Will the "re set" or adjustment we have been telling you of be slow and orderly or overnight and disorderly?  This I do not know.  What I do know is that it will occur and if you have not prepared for it you will never have the chance again to "catch up."  This is all about your savings and whether they will have value when you need them.  This is all about "equality" around the world.  Jim Sinclair calls it "the great leveling" which can be seen from two separate points of view.  First, if you have it ... in paper form ...it will be "leveled."  Secondly if you are a producer of goods and are not being properly compensated ...your efforts will become "leveled out" and you will be compensated.  It is really this simple folks, we have lived a lie put forth by our monetary authorities, and we wanted to believe it because it was a "good lie."  We benefitted from it and enjoyed the fruits of the lies for many years.  If you can see this and admit it to yourself now, not tomorrow (or especially next week), get cracking and protect yourself because the truth is going to hurt a whole bunch! 

The Fatal Flaw

November 11, 2014

We have several important things to say today, but let's just get the big "pink elephant" out of the room first. Which, of course, is yesterday's blatant paper PM raids, following Friday's ugly NFP report and the weekend "Catalon-astrophe" - in which 81% of Catalonians voted to secede from Spain. I have written for years of "Cartel Rule #2" - i.e., "all great PM days must be followed by horrible ones" - and yesterday's effort was no different, as evidenced by the whopping 6% plunge in the HUI mining index. To wit, since the blatant April 2013 PM raids, the HUI has had sixteen 5% up days. In the 16 subsequent trading days, it has declined on 14 by an average of 2.6%. Par for the course, particularly when one holds "paper PM investments" in lieu of the real thing. And not to "harp," but even I am in awe of the PPT's recent string of "dead ringer" algorithms on the "Dow Jones Propaganda Average" - including every day since QE supposedly "ended" on October 27^th. In other words, the stock market is no more "rising" than precious metals "falling."

To that end, secular Americans do not understand that commodities are also priced in currencies other than dollars; and in gold's case, as we discussed in 2012's "dollar-priced gold" at historically high levels. In India, for example, gold is just 25% from its all-time high; as well as 18% in Brazil, 17% in Indonesia, 15% in Japan, 13% in South Africa and 2% in Russia. In these six nations, two billion people reside, or nearly 30% of the world's population; and on a weighted average basis, their gold price is just 20% below its all-time high. Which, on an equivalency basis, would be around $1,550/oz. in America.

For the entire world, roughly 20% separates the gold price to its all-time high. And since 96% of the world's denizens live outside the U.S., the vast majority are within "striking distance" of the buying panics that characterize tops. Which, by the way, are far more aggressive than what we are seeing at today's Western bottoms - where the U.S. Mint has sold out of silver, PM backwardation is at the aforementioned 15-year highs, and the world's largest PM exchanges and ETFs are being rapidly drained of inventory. This is why we find it comical that MSM commentary - biased or otherwise - uses the "strong dollar" as an excuse for gold and silver price weakness. Conversely, if one lives in Japan, India, Russia, or South Africa - the "weak" Yen, Rupee, Rand and Ruble are driving record PM purchases. And cumulatively, there are a lot more Japanese, Indian, South African and Russian buyers than American sellers. And oh yeah, from our perch at one of America's oldest largest bullion dealers, we not only are not seeing selling, but never do.

Which brings me to the "deflation" Western Central bankers warn us of every second of every day; which, in turn, the MSM and Wall Street tell us are the reason for PM declines. I.e., the deflation that unerringly accompanies contracting economies as the entire world is experiencing today. And oh yeah, plunging stock markets, of which 1929 and 2008 are but two of hundreds of historic examples.

Sure, the majority of global stock markets are 50% or more from their all-time highs - invariably, set in either 2000 or 2007. However, "miraculously" the stock markets of three of the world's largest money printers - the U.S., UK, and Germany - are at or near record highs. Yes, a fearful "deflation" in which stocks soar to record highs. Perhaps in the Bizarro World; but until today's unprecedented money printing group never before experienced on Earth. Of course, given that "misery indices" the world round, which measure the sum of inflation and unemployment are at new all-time highs as we speak, it's quite difficult to espouse "deflation" - particularly in "need versus want" items like food, healthcare, education and insurance. And despite the recent decline in gasoline prices - which by far, have more negative ramifications than positive; ten gallons still cost Americans a whopping $30 versus just $17 a decade ago. And even if "deflation" were possible in a fiat Ponzi scheme - which it decidedly isn't - what part of gold being the best performing asset in both 1929 and 2008 are we missing? Let alone, when the 2015? 2016? collapse is principally centered on imploding currencies.

Today's principal topic is the "fatal flaw" of fiat Ponzi schemes, following up what we wrote in September's "single most Precious Metals bullish factor imaginable"; i.e., the relentless currency volatility and collapses that are worsening with each passing day.   Which, for that matter, is one of the "three death trends" we discussed last week. All three were "center stage" yesterday, as atop the currency plunges, oil prices plunged anew. And today is even worse, with oil having just broken below $77/bbl. and "the dollar" surging against nearly all currencies - including the Euro (take note, Swiss citizens), Rupee, Real, Ruble and Rand. And of course, the Japanese Yen is about to breach a seven-year low of 116/dollar on news that the second phase of the sales tax increase proposed to "pay for" Abenomics may be ditched, following an historic plunge in the Japanese government's approval rating.

Amidst this chaos, I listened to this brief commentary from the Chief Investment Officer of Saxobank of Denmark warning of a "full scale currency war between China and Japan." Ah yes, the third - and most important - of the aforementioned "death trends"; i.e., expansion of the "final currency war" as global economies implode and money printing explodes. And this is just China vs. Japan, one of countless such "wars" ongoing. Recall, just two weeks ago the U.S. warned the ECB not to take its Euro devaluation "too far," following the Euro's plunge after ECB QE was announced. And this, on the very same day the Fed "ended" QE and the Bank of Japan announced its "kamikaze" money printing initiative. Remember, a "strong dollar" - relative to other fiat currencies - is politically "unacceptable," as it yields weaker corporate earnings and job creation. And thus, it's only a matter of time before the aforementioned "full scale currency war" goes global; and when we say a "matter of time," we mean NOW; possibly starting with this month's APEC, BRICS and G-20 meetings.

To that end, this article catalyzed today's commentary of the "dangerous spiral taking hold of emerging markets" - describing in simple steps, the premise of the aforementioned "single most precious metal bullish factor imaginable." To wit, the "vicious circle" of capital destruction when fear strikes a global fiat regime causing capital to rush to the "reserve currency" like oxygen in a backdraft. 

1. Capital outflows, leading to weak investment;
2. Accordingly, exchange-rate depreciation;
3. Hence inflation, loss of purchasing power and weakening consumption;
4. Hence problems for the central bank faced with sluggish growth and inflation;
5. The sluggish growth amplifies the capital outflows.

This is indeed the "fatal flaw" of today's dying fiat regime; as the worse the global economy gets, the more capital flees illiquid currencies in favor of stronger ones. And in this case, the Fed's bluff of ending QE will only intensify flows into the dollar, given the exponential increase the world's second and third largest money printers - the ECB and Bank of Japan - are undertaking. Not to mention, if indeed China engages Japan in full-scale currency war, they will force the Fed into QE4, given that that Yuan is currently pegged to the dollar. And thus, said "vicious circle" will only grow more vicious until either a "black swan" destroys the system extraneously or the inevitable "Yellen Reversal" from within.

Either way, it's difficult to believe Westerners are not already following Easterners' lead in rushing to precious metals; particularly as shortages are occurring, as production sits on the cusp of an historic collapse. And for those wise enough to act, we hope you'll give Miles Franklin a call at 800-822-8080 and "give us a chance" to earn your business.

P.S. For anyone that still has hope for the America's political process, please watch this short video regarding the "making of" Obamacare. Afterwards, if you do NOT act to protect yourself, we will be shocked.

Radio Appearance with John Stadtmiller - November 11, 2014

November 12, 2014

Andy Hoffman joins John Stadtmiller of the Republic Broadcasting Network to discuss the stock market, zero interest rates, unemployment around the world, the U.S. dollar, gold and silver.  To listen to the interview, please click below.  

11/11 The Mystery Mounts / The Clues Build / Gold/Silver Price Explosions - www.lemetropolecafe.com

Yesterday remains one of those days, which will be hard to forget, and one for The Gold Cartel Hall of Shame record books.

As is so often the case, Friday's stunning surge in the price of gold took most everyone by surprise. After all, it was a U.S. jobs report day, which, over the years, has meant that the gold price would be under pressure. As a result of what The Gold Cartel has engineered, the gold market supply/demand fundamentals have been thrown out the window, but the technicals have been working like a charm for some time for the shorts ... at least they were for the last three weeks, until Friday.

On that day the price of gold rallied nearly $50 from low to high in the most spectacular of fashions, putting in a dramatic outside day key reversal in the process...

Le Metropole Cafe

The current correction in the price of silver has gone on for a very long time, almost four years. Gold's last all-time high was over three years ago. The current rotten market action in the old monetary metals and the mining and exploration shares is getting very stale. If you want to buy low so that you can sell high, this seems like a good time to buy.

Mark

To read the full article, please subscribe to Le Metropole Cafe.com.

Russell - Critical Moment For Gold, Stocks, Dollar & The World - kingworldnews.com

November 11, 2014

With historic patterns unfolding in global markets, the Godfather of newsletter writers, 90-year old Richard Russell, writes about the big picture for gold, stocks, the U.S. dollar, and an eventual collapse.  The 60-year market veteran also included two fantastic charts to go along with his outstanding commentary.

Russell:  "Below you see the ratio GDX to GLD (gold). The chart shows that the gold miners are now at the lowest level in the past 10 years compared to gold. This tells me that the miners are so cheap and hated and out of favor that many can be bought as perpetual warrants. The key to the whole gold picture may be when this ratio turns up and crosses above its red 200-day moving average. In the meantime, we wait and patiently watch. At this point, I'm wondering whether the ratio that you see on the chart is in the process of building a bottom.

King World News

Below is a 10-year chart of Newmont Mining. The stock hit an important low in 2009. Newmont appears to be consolidating above its 2009 low. Here again, I'm watching to see whether Newmont can reverse itself and break out above its consolidation formation. 

Continue reading on King World News.com.

Why The Stock Market Is Detached From The Economy - www.zerohedge.com

Submitted by Tyler Durden on 11/11/2014 19:13 -0500

The recent mid-term elections sent a very clear message to Washington, D.C., which was simply "the economy sucks."  While statistical economic data suggests that the economy is rapidly healing, it has only been so for a very small percentage of the players. For most American's they have only watched the "rich" prosper as the Federal Reserve put Wall Street before Main Street. Stock buybacks, dividends and acquisitions are great for those that have money invested in the financial markets, however, for the rest of America it is only a spectator sport.

The risk to the markets currently is that the wave of deflationary pressures engulfing the globe have only begun to wash back on the domestic economy. The drag on exports, combined with the potential for extremely cold winter weather, puts both economic and earnings growth rate projections at risk. With the markets in extremely overvalued territory, the risks to investors clearly outweigh the rewards over the long-term.

Continue reading on Zero Hedge.com.

***

ISIS Going Back To The "Gold Standard" - www.zerohedge.com

Submitted by Tyler Durden on 11/11/2014 10:00 -0500

It appears the terrorist organization known as Islamic State has been watching the fiasco of fiat money and reading Alan Greenspan and Ron Paul. As The Daily Mail reports, ISIS wants to introduce its own currency and plans to bring back solid gold and silver dinar coins in an attempt to solidify its makeshift caliphate. Around 1500 years after the Dinar was first introduced - made from pure gold and silver - ISIS plans to implement the change within a few weeks, changing changing from regular dinars and Lira to golden dinars and silver dirhams.

Continue reading on Zero Hedge.com.

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