Weird Blip in Todays Gold and Silver Charts after Market Close

Check out these charts form just after the close of todays trading.

First todays Gold chart – drops and recovers 40 USD in an instant:

Gold is being manipulated?

Blip on Gold Chart from 2012-11-26

And now check-out the Silver chart:

Blip on Silver chart for 2012-11-26

Blip on Silver chart for 2012-11-26

Kind of funny that they happen at exactly the same time? The USDX (US Dollar index) shot-up and then recovered, in a mirror of the metals movement.

Manipulation? Foul-play? Hmmmm……

Richard Russel Fears that Money will Die

Richard Russell is convinced that we are in the End-Game of this financial regime and that money will die because of the Federal Reserve intervention and government manipulation.

Richard Russell

Richard Rusell was one of the first News Letter authors

Here is what he had to say:

“At any rate, I’m personally torn between putting all my assets into bullion gold coins or leaving half in gold and half of my assets in US dollars. Very frankly, I’m no longer even thinking of making money in the markets — I just would love to keep my purchasing power intact. On top of that, I don’t trust the government, and I don’t trust the Fed or the Treasury. In their demand to making Fed notes the only legal tender money, I believe the Fed (and the government) would stoop to any trick or law or machination to ensure that Americans must accept Fed notes as the only legal tender money.

The government (Congress?) could pass a law outlawing any transactions in gold or silver or any precious metal. The government could halt the trading of gold or gold ETFs. Or there might be a dozen tricks that the government could use that would outlaw the use of gold as legal tender. Then, there are always taxes as a barrier to even owning or trading gold. As it is, the IRS treats gold as a collectible and taxes you when you sell your gold.

So I dunno, hold all your assets in gold bullion coins? Frankly, I’m afraid to. The bankers demand that I use their rotten fiat notes as money, and believe me, the bankers (the Fed) run the country.

Thus, I am doomed to hold some dollars, and, in turn, my dollars are doomed to lose purchasing power month after month, and year after year. Talk about robbery!

What about owning stocks as a way to keep your purchasing power? Bill Gross of PIMCO thinks stocks will be a lousy investment over coming years, and he thinks bonds will be even worse.”

Well sobering thoughts indeed but according to Jim Sinclair there will be no chance of Gold-Confiscation – But does anyone really know?

© Copyright MMXII

So just why did Gold Jump 22 USD to 1,751 USD over Thanksgiving?

Gold prices could be back on their way upwards again. Last night at close of business gold prices jumped up (almost spiked up) 22 USD to close the day up at 1751.90 USD per once. It has not been there for almost 10 months so this could be a good sign for the year end.

gold has re-started it's upward journey

Gold back at 1,751 USD an once – On it’s way up once again ?

I would expect to see the last high of the 1900s’ tested again and if we are lucky could be into 2k USD Gold early next year. What a wonderful New Years gift that would be!

© Copyright MMXII

All the Gold has Gone from Western Central Bank Vaults?

Eric Sprott of Sprott Asset Management is one serious player and you would do well to listen to him whenever he speaks.


The chief of Sprott Asset Management

The man himself on Bloomberg TV

He was just on Bloomberg TV discussing his recently published paper to which the conclusion is The Western Central Banks cannot possibly have any Gold Bullion left in their vaults.

The explanation is simple – gold supply has remained constant at approximately 4,000 tonnes per year. This has remained constant since the year 2000 – no doubt about that. However the annual amount that is being purchased on the open market is going up, with almost 500 tonnes over the amount mined in a year. So how his this possible? Where is the extra 500 tonnes of Gold coming from?

Sprott alludes to the fact that the central banks are “lending” it out for cash into the market. This should really be called “selling”, because this gold is never coming back. The trick is in their accounts and book-keeping. The banks are entering this as “Gold Reserves and Gold Receivables” – Receivables being code for we sold it, but we still want to keep it on our books.

If we were to try that kind of cheap trick we would be locked-up and they would through away the key…But a central bank? No problem – That’s ok boys!

You need to watch this interview – there are a lot of good nuggets of info in there…

© Copyright MMXII

Germany Wants (a tiny bit) of it’s Gold Back

Germany wants it’s Gold Bullion Reserves back.

German gold bullion coin

German gold bullion coin

Germany has the second largest gold reserves in the world. Or at least it should do. A quick look at the Wikipedia gold reserves chart shows that as of year end 2011 total official holdings are 3,396 metric tonnes of gold.

Gold Bullion Reserves of top 10 nations

The thing is, as with most central banks (that are not BOE, or Federal Reserve) some portion of these reserves are held off-shore. This is mostly a relic of Nixons tyrannical dismantling of the gold standard back in 1971 (August 15th – A very Black Day), when gold was actually used for settlement, and if not shipped at least moved from one part of the vault to another (I kid you not).

Anyway, back to Germany. They want their gold back. Who wants their gold back? Good question, depends who you ask:

Here are the players:

* The People (Das deutsche Volk) – Would like their gold back
* The Bundesbank – Seem strangely ambivalent about the whole affair
* German Parliaments Budget Committee – pushed by the people to take action
* Germany Audit Court – pushed the Bundesbank to do something by the Parliament
* Federal Reserve Bank of New York – claim it’s too secure to audit

After years (maybe decades) of asking, they have got to the point that our good old friends at the Federal Reserve stated that it would not be possible

“in the interest of security and of the control process”.

Excuse me?

Imagine going to your bank to get a bank balance, asking to see your safe deposit box (you do have one right?), or otherwise access to your property and then being told – “No. In the interest of security and of the control process”. How would you feel? How would you react? What would you do next?

Germany is believed to have approximately 2,000 tonnes (a lot) overseas in foreign central bank (evil corp) vaults: Federal Reserve, BoE, Bank of France. Notice a connection between those names? Yeah, they are the so called *Allies* at the end of the 2nd World war (Russia strangely missing). How helpful they were to protect Germanies Gold in it’s vulnerable state after the end of the war. Here is an interesting picture of US Soldiers from 1947 in Germany getting ready to export that wealth – for safe keeping (for the record – General Patton Third Army unit – 1947):

US Soldier in 1947 removing German Gold Bullion Reserves to America

US Soldier in 1947 removing German Gold Bullion Reserves to America

Resolution – It seems that the Bundesbank (probably not the German people) are quite happy to work out the details off-line over time and determine what to do next :

“The discussions have been fruitful and the Federal Reserve has expressed a commitment to work with the Bundesbank to explore ways to address the audit observations, consistent with its own security and control processes and logistical constraints.”

It also appears that they have lots of trust in their US compatriots:

“had no doubts about our American partners, at no point in time. For us it’s a question of regularity and how we’ll proceed in the future”


With this much money at stake – how would you accept anything other than an audit? The gold have never been audited once since it was moved to US. No wonder the German people are furious about this – I know I would be.

In the meantime the Bundesbank has come up with an incredibly under whelming solution – repatriate 50 tonnes of their Gold every year for three year. Oh, so that would be a grand total of 150 tonnes…Leaving let’s see…2,000 – 150 is about 1,850 tonnes unexamined, unaudited, and unproven. There is something fishy going on here.

If you believe that the big guys (Federal Reserve, BoE, etc) really do not have any gold left anymore, and let’s suppose further that the Bundesbank either know or suspect this, then maybe this is a “get me off the hook” move. This would give the Federal Reserve time to buy Gold on the open market and ship it back to Germany – a reasonable amount. The illusion is maintained that all is well. I suspect this is what is going to happen. Maybe even the Audit court, and the German Budget Committee know this too?

Questions to ponder:
* If the gold really is gone – where is it now?
* If the gold is gone was this done with or without the knowledge/permission on the Bundesbank?
* Which countries will be next to move on this *touchy* subject?

One other thing – A similar move has been requested in Switzerland to repatriate their off-shore gold reserves. This will become very interesting because in Switzerland the people have the right to a referendum (just need 50,000 petition) on any topic they so wish….Things should be hotting up soon…

Stay tuned, buy physical gold and silver, store it wisely, and start thinking hard and deep, and take action…More about that soon


© Copyright MMXII