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October 19, 2011 / Hal (GT)

Greece fire bombs explode and Precious metals languish.

Good afternoon everyone.

Precious metals continue to look like they are just meandering around with some further downside possible. ExactPrice right now is showing Gold at $1,646.70 and silver is at $31.37. Platinum, still well below gold, is coming in at $1,522.50.

Greece is exploding with riots today because the citizens don’t want more austerity but want to continue to live on government promises that will never be fulfilled.

Surprisingly with all the negative news, the precious metals continue to meander this and that way. Range bound continues, but I will not be surprised if we don’t see a testing of the floor with a push down. I don’t think the price will stay down long but all we can do is watch and see. To that end you may want to watch the following video.

Thanks to @JervisCapital for the heads up on this interview: Eric Sprott: “Forces are at Work that can Move the Prices Down.”

KWN Special: Dollar Devaluation Coming, Gold to be Revalued <- be sure to read this. Here’s part that jumped out immediately to me, emphasis added by me:

“We figured you should take the monetary base and divide it by official gold holdings.  That would give you the price in terms of monetary inflation that it would be worth today.  Coincidentally, after we came up with that theory we went back and looked at what they used to use, the formula for arriving at the Bretton Woods dollar exchange value with gold at $35 and it was the same formula.  So if you were to divide base money by official gold holdings today, after QE2, you would come up with a price just north of $10,000 an ounce.”

Michael Pento – Own Gold, The Fed & ECB Have Gone Rogue <- Also from King World News.

Richard Russell – This Market is One for the History Books <- King World News is on fire with great interviews.

John Embry – Gold & Silver Close to Taking Off <- Another must read interview with John Embry on King World News:

“We just had the PPI released today at .8%, that translates to roughly 10% inflation annually.  This was a bit of a surprise because the mantra from the powers that be is that inflation is under control and if anything it’s moderating.  The fact that gold was down so much in the wake of that release just shows the degree that they kick the gold market around in a counter-intuitive sense.

So much of this volatility has been created by this ridiculous paper trading on COMEX, I mean each time that this thing gets smashed, the premium on physical rises.  So I think we are getting real close to this thing taking off.

Federal Reserve Now Backstopping $75 Trillion Of Bank Of America’s Derivatives Trades <- Hat tip to Peter Grandich.

China Stuffing ‘Operation Twist’ Down Ben Bernanke’s Throat:

China sold $36.5 billion in U.S. Treasuries to cut its holding to $1,137 billion in August. Other countries in Asia cut their holdings as well, including Hong Kong, Taiwan, and Singapore.

Paper Raids on Metals Just Drive Them East Faster: John Embry <-From Ed Steer’s Daily.

Tanzania to raise gold royalties by year end <- So, do you think they think that gold will be priced higher?

Band Of England Flirts With Extending Quantitative Easing <- This far into the relationship I don’t think you can call it flirtation. HT to @Tarik_Fehmi

Gold quantum physics – market in two simultaneous states:

The two “states” of the gold market that are battling for attention at the moment are fear, which embodied the safe haven role that gold has traditionally fallen under. And greed which is the rush for cash, or profit-taking, that has been observed as one of the main reasons for the retracement from the highs seen in August.

Lowe’s and Home Depot: Home-Improvement Sector Dampened by Weak Housing Market

The Silver Bull Market of 2012 <- From TF Metals Report. Consider this analysis a must read.

No sense in mincing words tonight. The CFTC has finally acted and silver is headed significantly higher. Maybe not tomorrow but soon. Very soon.

Beyond The Pale <- also from TF Metals Report. And yes, what took place definitely sound beyond the pale in regard to Bank of America

This Is the Gold Bull Market

German Bund sale undersubscribed as risky assets rise:

Centralized governments, also known as debt junkies, are having trouble getting their fix. Short term trend changes US Treasuries and US Dollar confirm it.


Well, those are the links I have for you today.




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