Gold: Reuters: Central Banks Preparing For Coordinated Action To Provide Liquidity After Greek Election If Needed GLD, SLV

   Now FED Is To The Rescue - we will not survive another deflation.

  "Any such operation means the QE up to the infinity whatever it will be called. The action will be coordinated and must be unleashed on a truly huge scale in order to attempt to save the insolvent financial system from "the run on the banks". Battle Field will be in Europe - now Europe threatens to push all world economy into another recession. UK - the land of the brave, where all experiments with QE were started first - is already in recession technically. Austerity will be dying hard, but the Paul Krugman is now the bedside book.

  What form this operation will take is not so important: there are rumors about Silver Bullet with banking super guarantee in Europe or it could be another LTRO spiced with World Wide Coordinated FED and Central Banks swap operations - the end result is that the liquidity will be flooding the system with record low Treasury Yields. The magnitude of the action will be very important - European banking system is under capitalised by 2.9 Trillion Euros now, according to UBS.

   Gold smells any currency debasement - here we are talking about worldwide phenomena - so it will be killed first. Panic in the sector has already shaken all weak hands and once the public has realised what is coming gold will resume its uptrend."

Gold Catalyst: Eurozone finance ministers agree to 100 billion euro Spain bailout GLD, SLV

"China Rate Cut and now Spain Bailout - Massive BackStop Operation is in place, watch out the US Treasuries Sell Off and Risk On trade now - Commodities should follow Gold."


Gold Market Action Signals Massive Liquidity Back Stop Operation GLD, SLV

"As with our recent Call on Apple, nothing here will be scientifically proven - all our markets are rigged and are pure Esoteric Fiction now. Our feeling tells us that recent carnage in Gold and Gold miners, particularly, is the preparation to the Massive Liquidity Back Stop Operation."

The Gold Bug Manifesto By Paul Krugman: End This Depression Now

"We highly recommend to all investors to read this book. This is what is coming. Paul Krugman describes the insolvent financial system with the honesty affordable only to Wall Street outsider. The FIAT system can survive only by expanding the monetary base further and keep the credit running. Claims will never be met, but surprisingly enough - it is not necessary - we all can just pretend that debt will be repaid one day and service the interest enough to keep Confidence in the status quo."

Reuters:

Exclusive: Central banks ready to combat Greek market storm

Europe Bailout: IMF Readying Loan of as Much as $794 Billion for Italy, La Stampa Reports ilc.v, tnr.v, czx.v, rm.v, lmr.v, abn.v, asm.v, btt.v, bva.v, bvg.v, epz.v, fst.v, gbn.v, hao.v, jnn.v, ks.v, ktn.v, kxm.v, mgn, mxr.v, rvm.to, svb, ura.v, nup.ax, srz.ax, usa.ax

 

  Things are getting interesting - if this news will become reality we have a life line for the Italy. Will we have the Xmas party now? Market is like a coil and suppressed by all the negativity - move to the upside can be really dramatic if Risk Trade will be coming back. Disaster is so apparent in Europe now, with Japan, UK and US to follow that we have more reasons to believe that everything will put on the line to save Italy and Europe now. We will agree that in order to stop all this mess maybe 5 trillion Euro bazooka needed, which means further unprecedented credit extension, Inflation and Gold with other commodities flying high again.

Jim Puplava: Stephen Leeb: Red Alert - Peak Of Everything: Lithium, Rare Earths, Copper, Gold and Silver

"Now, we guess, that there is no any doubts that all the world will print, print and print FIAT money in order to keep insolvent system running. UK will be tested first, as usual, and is already in the next QE program, US and Europe to follow. By the way price of Gas in UK is already above 8 dollars per gallon. We almost stopped to write about Gold - nothing further to prove, time is for the Energy Transition. Lithium - Electric Cars and Hybrids. Rare Earths - Mobiles, Wind, Solar and Electric Cars with Hybrids. Silver - Solar, Mobiles and Store of value. Copper - Electric Cars and Hybrids, Charging Infrastructure, Energy Distribution. Zinc - Electric cars and Hybrids, Charging infrastructure, Energy Distribution. 

  China is on the shopping spree with its 3.2 trillion reserves now. We are following hereInternational Lithium with Ganfeng Lithium as strategic investor, Canada Zinc Metals with 36% owned by Tongling Nonferrous, TNR Gold with Canada Zinc Metals as strategic investor, TNR Gold holds 28% in International Lithium.

  Welcome to the Reflation Round 2 in case if "Europe will be saved."

Bloomberg:

IMF Readying Loan of as Much as $794 Billion for Italy, La Stampa Reports

By Tommaso Ebhardt - Nov 27, 2011

The International Monetary Fund is preparing a 600-billion euro ($794 billion) loan for Italy in case the country’s debt crisis worsens, La Stampa said.

The money would give Italy’s Prime Minister Mario Monti 12 to 18 months to implement his reforms without having to refinance the country’s existing debt, the Italian daily reported, without saying where it got the information. Monti could draw on the money if his planned austerity measures fail to stop speculation on Italian debt, La Stampa said.

Italy would pay an interest rate of 4 percent to 5 percent on the loan, the newspaper said. The amount could vary from 400 billion euros to 600 billion euros, La Stampa said.

To contact the reporter on this story: Tommaso Ebhardt in Milan at tebhardt@bloomberg.net

To contact the editor responsible for this story: Chad Thomas at cthomas16@bloomberg.net

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Decoupling the forgotten Dirty Word - Gold buying frenzy in China. GDX, HIU, XAU, AUY, FXI, TNR.v, RMK.v.

As Don Coxe has recently put it: "High unemployment in USA does not mean that everybody else became poor". We can see some encouraging signs from China: economy was based on export and it has fallen dramatically, but consumer side of things is just at the very beginning in China. Few Asian strategist start to talk about decoupling again. As you remember we were strong believers in decoupling and are seeing more and more signs confirming it. The Great Bull in commodities maybe has just a brief pause after all: to clean up the bet on over leveraged Western consumers and make a strong base for future development based on more prudent monetary system.

Gold buying frenzy in China

Source: CCTV.com
02-10-2009 17:25
As the financial markets reach some of the lowest points in decades, gold continues to shine in China. Sales of gold jewelry and Chinese New Year themed gold products are more popular than ever.
Sales of gold products reached their highest point in the beginning of this year in Beijing's major shopping centers. Beijing Caibai Shopping Mall says its revenue from gold jewelry reached nearly 330 million yuan in January, up nearly 40 percent year on year.
Wang Chunli, general manager of Beijing Caibai Shopping Mall, says, "most people are buying gold bars as part of a new year collection or as an investment."
Mr Shen, a consumer, says, "I invested in a few gold products. The markets for stocks and funds last year were terrible. So gold is enjoying good earnings. The gold I bought was only 90 yuan per gram. But now it's worth over 190 yuan per gram. So I am thinking I should invest more money in gold."
Ms Xiao, a consumer, says, "I bought this gold bar when it was only 93 yuan per gram. But the price has gone up to nearly 200 yuan per gram, so I am thinking about selling it. "
Analysts say gold is easy to store, and is the safest investment. That's why the market is seeing a surge in the number of consumers buying gold now.
World gold prices reached a record high of 1,030 US dollars per ounce last year. By year end it had dropped by 15 percent. Experts say that compared with other financial products, gold suffered the least from the financial meltdown.
Wang Lixin, Great China manager of World Gold Association says, "gold is a very solid asset. It does not belong to any countries, or governments, or institutions. And its connection to financial products is very low. Its value does not fall with stocks or funds. The overall performance of gold has been quite stable in the past. So we see lots of people diversifying their investments and putting money into gold."
A consumer says, "the financial crisis is so terrible. But the price of gold won't drop. So it could come handy if I need some cash."
Analysts say investments like stocks, bonds, and real estate are highly connected to economic performance. They rise and fall at the same time. Chinese consumers now believe gold is a very good product for holding its value.

VIX Panic is still here, but not about everything any more. DIA, GDX, DXY, TSX, CDNX, FXI.

Panic is subsiding, fearful investors in financial sector are swinging around everything is lost and we are going to double from here and distorting the real picture, accumulation is well under way in healthy sectors including materials. Just have a look on all capital raising in Gold Miners and Basic commodities. Next greed assault will be to push VIX below MA200 and greatest Irrational Delusion of US dollar as a safe heaven will be a history with chasing performance back in place.

US Dollar: Second Double Top - Treasuries are losing to Gold. DXY, HUI, XAU, GDX, AUY, SLW, TNR.v, RMK.v

Dow hit 8000 again, below 7500 will be a waterfall. Line in the sand is a new double bottom on daily chart to follow with 8000 for a rebounce rally. Treasuries are in a full moon thriller phase - Chinese must be forgetting to buy more of these stuff during their holidays. Green fellow is feeling the post holiday blues and painting a second weak double Top after November 2008. Investors are voting for a bad bank and fearful of nationalisation of all banking and insurance sector. It will be an only outcome below 7500 in the Dow, so wait for announcement of Bad Bank next week latest. Nationalisation means all shareholders in financial sector will be wiped out immediately and forget about the rally and Inflation Recovery. Bad bank is not as bad as its sounds after all. Shareholders will get a slow water torture by Inflation dilution, but will be left with a capitalist dream. Most important system will be saved for a credit flowing. How much will it cost - we do not have any idea, but Gold seams does and running out of its shadow masters this week. All charts are aligned for Obama decisive move: US Dollar to go down from second Double TOP, next week move down will show low RSI for second top, STO will turn negative again, MACD is at much lower positive momentum compare to November panic. Treasuries TLT are helping with their Bubble Bursting stage, chart to follow. Gold is very strong and finally acting as a real safe heaven. Just 1% coming out of treasuries and going into Gold market will increase Demand 100%. 8 trillion dollars are sitting on the sidelines according to some estimations, Mr Obama it is your turn to call! Bold and swiftly - we like it, Gold like it let's do it.

Gold Miners GDX is challenging MA200 to pronounce that Bull is Back.

While everybody on the Bubble vision is preoccupied in self inflicting "End of the world" and "Nowhere to hide" scenarios Gold miners are taking high by high. Silence here even from self pronounced Gold Bugs and Letter Writers, which are still hiding from their subscribers, is a very bullish sign. Gold has broken to the upside even with US Dollar still topping out at recent highs, Panic VIX is going down, markets are positioning themselves for a rally. One of the biggest (we are sure here it is The biggest) dislocation of assets in the world's history is going to be unfolded in an explosive fashion. Gold markets needs just One Percent of new money to increase Demand by 100%. Chart is showing that Fireworks in gold miners is in place very soon.

Technically speaking they are Breaking to the upside from Cup and Handle formation. MACD is at BUY, STO and RSI are positive, once MA200 broken up our ATM will be back in working order. Sector is very small, it will benefit from significant Inflow of pushed to search returns money from falling Treasuries Bubble. To spicy things up it is like a call on general equity bullishness, falling US Dollar, rising Gold price and money making machines with low oil and high Gold prices during recession suppressed earnings in general economy.

Gold break Up is the real story of the last week. GDL, GDX, HUI, XAU, SLV, AUY,

By any account it is called break Up and we were following this process for a while here. Gold has finally moved in a decisive mode even with US Dollar still holding at the recent Tops. Smart money are positioning itself for inflation protection, but the most important is that FED is ready to allow Gold to signal Inflation and END of Death talk about Deflation. Reason is very simple: banking system is insolvent as well as insurance network, with falling assets prices it will become apparent and will trigger CDS Derivatives which will collapse all financial system as we know it. By running Inflation expectations back into the system FED is not breaking any copyright of Mr Madoff: it was done for years before and it is the only way out. You are alive while you are running. Gold is aligned with Obama's dream to see his country strong again: first as an indicator of Inflation and then as a chance to come back with honest money. We will not bet on the second, but will make money on Obama's dream and first.

Technically our previous observations are confirmed by breaking up MA200 and pronouncing BUll is back! Downtreand line is broken to the Upside. MACD is at Buy with a cross over, RSI is strong in plus, STO is going Up. Retest of a break out will be in play, but it is a different message to the market place. No more uncertainty about the Gold Bull. It is well alive and ready to rock again.

Gold is ready for a Break out off MA200. GDL, GDX, HUI, XAU, SLW, AUY, SST.v, TNR.v, OK.v, MGN, FVI.v.

Gold is sitting right on MA200. All momentum indicators are positive, will it be allowed this time to scream Inflation and run from its Downtrend confirming Bull market above MA200? So many times it was trashed at important levels that we can not be sure. All other charts are aligned for a confirmation of the best indicator that Inflation is here and well alive - Gold making new high in USD. In a lot of other currencies it is already the case.

US Dollar - Bearish Engulfing? DXY, GDX, GDL, HUI, XAU, AUY, SLW, SST.v, TNR.v, OK.v, MGN.

Green fellow was celebrating Obama's Change yesterday with us. Today hang over is showing its stance on the chart. Levitation of USD is very expensive for economy. Sell off in banks could retest animportant low in general market, Gold is holding at MA200, Treasuries are selling off. Dive below MA50 in USD will make fireworks in Gold and market will rally. Trigger could be Treasury confirmation and new bailouts for banking system.

Insiders are Buying actively into Juniors. CDNX, TNR.v, SST.v, CZX.v, OK.v, CNU.v, SBB.v, RVM.to, AMM.to

* Indicators represent companies with buy only transactions divided by companies with sell only transactions of direct ownership equity securities or trust units on the public market by officers and directors (exclusive of officers and directors of subsidiaries) filed over the last 60 days. Transactions filed on Saturday and Sunday are aggregated into Friday's number. Information on this site does not constitute a buy or sell recommendation. For a more comprehensive and recent insider sentiment reading, please visit www.inkresearch.ca.

Insiders are selling for a lot of reasons, but they are buying only in one case: when value of the business which is run by them is apparent and they are expecting best return compare to other opportunities on their own investment.

Irrational Delusion Treasury Bubble. GDX, GDL, SVL, SLW, AUY,

Very shaky grounds here, still a very good chance to see Right Shoulder formed before move below 110. VIX and US Dollar is the key. Announcement about Stimulus approval of 825 billion will send this market in a tailspin.

Gold Miners GDX Very Impressive Come Back. GDX, AUY, SLW.

Gold Miners have bounced off MA50, STO at Buy, RSI is turning Positive. There is still a good chance to resolve Cup and Handle into Upside after last week correction with definitive move in Gold Up and US Dollar down.

Price of Bailouts - US Dollar collapse. Jim Sinclair has nailed it.

Rignt on the money on bouth counts: US Dollar and Naked Short Selling:

"Dear CIGAs,
$8.5 trillion is unthinkable in terms of paying back the depreciated value of financial and non financial business entity portfolios. Assume someone came to your door and asked you how your investments were going. When you explain to that person that a bad man in Toronto organized a group of really nasty people named hedge funds to naked short your shares and as a result you have lost 90% of your retirement fund, that person hands you a check to cover your loss.
Would you then characterize the money from that check as neutralized funds only filling a black hole in your balance sheet having no real economic impact on you?
That opinion, held by many, is so academic. The idea that $8.5 means nothing because it fills some black hole of losses is "form" over "substance" and simply too academic to believe. This is $8.5 trillion!
Now with that thought in mind contemplate $8.5 trillion dollars (for starters) before President Elect Obama’s fiscal stimulation for the creation of 2.5 million jobs, then a condition called, "Out of Control."

US Dollar and bailout.

Lets Play Bailout

http://www.youtube.com/watch?v=S27yitK32ds

TNR Gold TNR.v: Minera Andes MAI.v announces excellent metallurgical testing results for Los Azules

TNR Gold TNR.v has a conditional 25% back in right on 50% of the Northern part of the property. Company has recently announced that it has filed a lawsuit against "MIM Xtrata Argentina" in BC Canada to clear the status of Escorpio IV property in the proximity of Los Azules and to consider a 25% back in right "time condition" as contrary to the negotiated terms.

"At a 0.35% total copper cut-off, the Inferred Resource at Los Azules is 922 million tonnes grading 0.55% copper, containing 11.2 billion pounds of copper."

"SPOKANE, WA, Sept. 25 /CNW/ - Minera Andes Inc. (TSX: MAI and US OTC: MNEAF) is pleased to announce the receipt of excellent results from the metallurgical testing program completed as part of the Los Azules Project 43-101 Preliminary Assessment (scoping study) planned for completion by yearend. The test results show that the Los Azules ore material is amenable to conventional flotation recovery methods and that the overall metal recoveries and the copper concentrate grades are high.

Allen Ambrose, president of Minera Andes, said: "The positive metallurgical testing program shows that standard reagents and flotation methods can be used at Los Azules to produce a high quality saleable concentrate. Copper recoveries over 92% and copper concentrate grades over 30% copper indicate that flotation concentration would be the preferred process for all ore types, which are of medium hardness for grinding. Gold and silver grades are also sufficient to contribute payable precious metals to the concentrate."

US Dollar, Gold and Bailout: Barrick ABX Sees `Large-Scale' Gold Buying on Bailout

The opinion from biggest gold producer is definitely worth more then all other subprime spins in the market:

"Sept. 24 (Bloomberg) -- Barrick Gold Corp. Chairman Peter Munk said bullion prices will go higher, driven by large-scale buying by ``major, major'' holders of dollars who fear the effects of the U.S. government's bailout plan on the currency.
Central banks or sovereign wealth funds are among those likely to buy gold to diversify their investments and hedge against the risk of a weaker dollar, given the government's $700 billion plan to support the banking system, Munk said today.
``That impact on holders of U.S. dollars in China or Russia or Abu Dhabi or Kuwait is that they're going to say, `What is that going to mean for the U.S. dollar, and what alternative are we going to have?' '' Munk said in an interview in New York. ``So gold is going to have very powerful support.'' Munk, 80, founded Toronto-based Barrick in 1983 and made it the world's largest gold producer.
Gold has surged about 20 percent since Sept. 11 as investors shifted assets into precious metals as a haven after the bankruptcy of Lehman Brothers Holdings Inc. Treasury Secretary Henry Paulson plans a rescue fund to allow banks to dispose of devalued assets such as mortgage-backed securities."