Kirill Klip.: FED Has Found ... Sorry, Created Inflation To Save Us All - Gold Celebrates ... Quietly So Far.

 Kirill Klip.:

FED Has Found ... Sorry, Created Inflation To Save Us All - Gold Celebrates ... Quietly So Far.

  "Gold and Silver are acting today like if the Chinese virus "Missing Collateral" has finally reached the London BOE vaults!

Bullish For Metals?! Missing Collateral in China, Follow The Trail of Loans, Copper and Fraud.

  In my personal opinion, we are witnessing the same game of the rehypothecation as it is happening with FED, BIS, Investment Banks and Gold. This, actually missing metal as collateral, will be the very bullish set up for the commodities markets. After initial selling due to the margin calls and unwinding of Paper Positions in the market, Mr Market will realise that all these metal accounted for the supply and demand picture is NOT there. Industrial demand will stay in place, but Supply which was supposed to be hoarded in the warehouses is missing: the collateral was used a few times for the different transactions. You can study this subject more with explanation in plane English in the very good podcast I have published yesterday: Read more."

  FED has finally "succeeded" and Inflation is raising its ugly head. Everybody mortal, apart from the DC and FED System, who has visited at least few times any grocery shop this year knows that food prices are going up. And gas, and insurance, and electricity bills, and ... yes plasma TV prices are going down and iPads, but they are not very tasty for those on food stamps.

  We have a positive resolution today in the Head and Shoulder Bullish Reversal pattern, which we have discussed before. Closing above $1,317 this week will be very important. Nobody can manipulate markets forever. Watch the headlines tomorrow: Inflation Is Back - Gold Surges On The FED News.

I Vote To End Gold Manipulation: FSA Fines Barclays For Manipulation Of Gold Price - Join Me.

Sufiy: Gold Market And The Stock Bull Topping.

TNR Gold: Shotgun Gold Project - Why Do We Need New Gold Deposits?

  "This picture above is stronger than thousand words written by the FED's hired academics and even Austrian School of Economics - it cuts through the verbal mist to the bone of Inflation definition and what it really means. It means that your FIAT money are losing it purchasing power. It happens every day, day by the day. How much you can see from the McDonald's menu from 70s.

  And below is the chart representing "Strong US Dollar Policy" in action implemented by FED from the day of its inception in 1913. Some people even think that Federal Reserve is as Federal as Federal Express, but we will not go that road today.

  Inflation is the dirty open secret of all Central Banks in the world. It creates the Inflation Tax by gradually stealing from the value of your savings and deflating the government's obligations on all social programs. It is the way for governments to finance wars and "Inflate away" their debts without taxing you "directly". Inflation follows currency debasement - organised by money printing or by QE in the iPad's century - and it is making its dirty work by itself.

  Why Gold is so important here? It is the real measure of the rate of Currency Debasement and Inflation: Gold is the Real Money, not dollars. That is why it is manipulated so heavily:

  I will address you to James Rickards' books: "Currency Wars" and "The Death of Money" to get more information in depth on these subjects and Gold Manipulation is widely discussed on the web today. Read more."

  Investment banks are starting to connect the dots even for the clients, they are themselves all-in long time ago, as I would guess, and announcing that Inflation is ... bullish for Gold.

"Upgrade comes earlier than expected…

Canaccord Genuity North American Portfolio Strategist, Martin Roberge, has lifted his rating on the Gold Sector to Overweight, due to escalating inflation risk.

The upgrade comes slightly earlier than expected as Roberge believes that the Fed is cornered…following stronger-than-expected U.S. CPI on Tuesday and the marked jump in Roberge’s CPI diffusion index, Martin believes there is a non-trivial risk that the Fed temporarily abandons its 2% inflation target.

If the Fed is willing to take an inflation risk, investors should buy inflation-protection hedges. Already, bond vigilantes are doing so byfavouring real-return bonds (RRBs) over Treasuries. Inflationary pressures fuel inflation expectations, two positive drivers for the price of gold. Lastly, investors should note that U.S. inflation jitters are brewing while monetary reflation has gone global. World central bankers are in a race to reflate before a global bear market in bonds renders their easing policies impotent.

For those who remember, this looks like 1993 all over again and  Roberge further highlights that there are many seasonal factors that could lead to a rally in gold and gold equities in H2/14:

·         Golds tend to have a strong H2 in calendar years following a gold rout
·         2014 marks the third year of the gold bear market and the 200-week average sits at $1,500/oz
·         Roberge thinks gold stocks are cheap and should protect portfolios in a correction."

  The chart above provides you with idea why we need more Gold deposits now. Even if Major Gold Miners are squeezed on margins and divesting the projects now - it is these industry's fundamentals which will drive this market forward. Falling gold prices are the best cure from the low Gold prices. Gold miners are mining the "Gold Dust" by the 90s standards.

  Number of discoveries is going down and will go down even more with Junior Miners struggling to get access to the capital now to develop their projects. Grades and sizes of discoveries are going down as well - easy stuff is all  already found or is located in not so friendly places. We have Peak Cheap Gold in place now, whatever the Gold market massaged by BIS will tell you.

  China's buying record amount of gold last couple of years will be the very strong confirmation of Gold monetary value and recent pick up in M&A activity provides very important signal for the bottom in this mining cycle:

"China continues its buying spree of copper assets all over the Globe: last month the huge Las Bambas copper project in Peru was bought by Minmetals Group for $5.85 B and now Guandong is bidding for PanAust. Reuters reports on the deal and you can notice how the activity in M&A by Chinese companies is picking up during the "soft market". It is the very important indication of the major bottom in the mining cycle: it is cheaper "to dig" for Copper and Gold on the Stock Exchanges now, when valuations of assets in the ground of listed companies are discounted by the depressed mining markets. "

  This is another reason why I personally came into the TNR Gold - Shotgun Gold project in Alaska. Gary Schellenberg and John Harrop - our VP of Explorations, have done the great job over the years exploring this project with Nova Gold and now we have 100% of it and Nova Gold has become TNR Gold's shareholder. After our drilling results in 2012 Greg Johnson the founder of Nova Gold has joined our Board and we have published the first resource estimation on the Shotgun Gold project last May.

  It was the first confirmation of my personal dream to develop the important Gold deposit and even if it is still the very early stage of project development, this dream is not limited in size by the resource model at Shotgun Gold project at this time:

"The mineralization style observed at Shotgun Ridge bears a strong resemblance to the 40 million ounce deposit at the Donlin Gold project operated by Barrick and NovaGold," stated recently appointed director Greg Johnson, "The similar age and host intrusive rocks suggest that, with continued exploration, there is significant potential to locate larger volumes of mineralization in and around Shotgun Ridge."

  We are working on the corporate structure now, which will allow to develop Shotgun Gold with the potential new strategic partner on J/V basis like we are doing with Ganfeng Lithium in International Lithium. You can find more information in the Shotgun Gold Project presentation below, on our website and give us a call to discuss it at any time.

TNR Gold Shotgun Gold Presentation, Alaska - April 2014 from Kirill Klip

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Charles Nenner to Moneynews: US Headed for Recession and It's 'Going to Be Bad'

  

  Charles Nenner talks about the potential of another recession in the U.S. and his Call must be taken seriously. Surging rates these days even before the beginning of the Tapering will put enormous pressure on the consumers and coupled with high gas prices his prediction can become true again.

Adam Hamilton: Gold and GLD Exodus Reversal MUX, TNR.v

"Adam Hamilton provides now a very compelling case for the General Equity Markets and GLD relationships and correlations and if you do not think that trees can grow straight up to the sky we are at the historical point in the markets development in the age of FED central planning now." 

Charles Nenner Research: Cycles Say Gold is Bottoming.

"If the history is of any guidance, today's BOE statement and Pound Slaughtering is the sign of things to come in the US Former Reserve Currency Of Choice Land. We will remind everybody that QE was first started by BOE and it was called as it is: Money Printing."

Money News:

Charles Nenner to Moneynews: US Headed for Recession and It's 'Going to Be Bad'

Monday, 19 Aug 2013 

By Glenn J. Kalinoski and Kathleen Walter

Technical analyst Charles Nenner didn’t mince words when asked about the United States facing another recession.

"It's going to be bad," Nenner told Newsmax TV in an exclusive interview.

"It's very scary because we didn't have a lot of growth and when this economic expansion is over, we're going to be in trouble," the founder and president of the Charles Nenner Research Center said.

Watch our exclusive video. Story continues below.

"We didn't leverage enough. Cycles go up, go down, take three and a half, four, five years, but if you almost don't jump up and then you're jumping down, then you've jumped down from a much lower level."

He said that "the economy is not going to do much this year. It's going to pick up a little bit next year into the third quarter and then it's going to be messy again."

The economy will be fairly stable until the end of next year, "then we're going back into recession," said Nenner, who correctly called the 2007 downturn.

He also warned that the economy faces other problems as well, such as deflation, commonly defined as a decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0 percent.

"Deflation is a very serious problem we can still have to deal with and that's much worse than inflation," he said. "So my fear is deflation, not inflation. Inflation will come, it will take another three years until it starts."

He added that he doesn’t see much improvement when it comes to the nation's unemployment level.

"The problem is structural," he said. "There was a lot of outsourcing and then a lot of jobs … don't need a lot of people anymore because of the Internet and IT and all of the technology. People have to think a little bit in a different way and it's going to be very hard to get the unemployment down."

The wide-ranging interview turned to the outlook for gold. "It's a short term trade because it's going to bounce around," he said.

"Until we really have inflation coming, I don't see gold going back to the highs. It will go two and a half thousand. It's just making a bottom slowly, and we are boost[ing] longer term on gold, but it will take time."

He also discussed his outlook for stocks.

"We had a target of 1,720 on the S&P, so once we were [at] about 1,700 we sold all the stocks," he said. "The sentiment [is] too extreme. The market is very risky, so we don't go in anymore. We've been out now for the last three, four months and we're just standing aside."

Gold Manipulations: GATA's Chris Powell on Suspicious Activity at the BoE & JP Morgan's Commodity Exit

  The story about "Missing 1300 Tonnes of Gold from BOE" is making its way to the mass media.  Situation for LBMA participants is getting from bad to plain desperate according to the findings by Alasdair Macleod and ZeroHedge.

ZeroHedge: "Hello Scotia Mocatta, This Is JPMorgan - We Urgently Need Some Of Your Gold"

The Great Gold Game of Musical Chairs has begun, ZeroHedge reports on dramatic gold shortages unveiling behind the scenes. We are putting all these pieces of the puzzle together here and the picture is becoming more and more clear - Mother of Shorts Squeeze is coming to the Gold market.

Alasdair Macleod: Bullion Banks Still Stuck With Massive Short Gold Position on LBMA.

Alasdair Macleod: "1300 tonnes of gold missing from the Bank of England?" GATA seeks answers.

"Alasdair Macleod talks with Max Keiser from 13.00 about Gold market, GOFO and questions whether "1300 tonnes of gold missing from the Bank of England?" If it is true, this gold was used to suppress the Gold price during the recent Special OP: Gold Wash Out. The record low COMEX Gold is indicating the Bear Squeeze in Gold coming to the market."

Alasdair Macleod: Bullion Banks Still Stuck With Massive Short Gold Position on LBMA.

"Alasdair Macleod & Bill Murphy joined The Doc this week for a special episode of the SD Weekly Metals & Markets.
Bill & Alasdair gave an extraordinary interview, and discussed:

1. The cartel's shift to attacking the metals pre-emptively prior to the release of the FOMC/NFP reports to prevent break-outs to the upside.
2. The implications of the spiking 10 year Treasury bond with over $400 Trillion in interest rate swaps held by the major banks- would the banks be able to handle a rise in Treasury rates?
3. 1,300 tons of custodial gold held by the BOE (likely owned by France, Italy, & Spain) likely leased out onto the market over the first half of 2013 were required to prevent a systemic financial collapse in the wake of the Cyprus bail-in due to collapse of confidence in the banking system throughout Europe.
4. Using Austrian Measure for Money Supply, Gold Only Up 40% Since 2000!
5. While the bullion banks have largely covered their gold & silver short COMEX positions, the bullion banks are still stuck with a massive short gold position on the LBMA, and a sudden rise in the price of gold could stimulate a crisis in the physical market in London!"

Alasdair Macleod: "1300 tonnes of gold missing from the Bank of England?" GATA seeks answers.

"Alasdair Macleod talks with Max Keiser from 13.00 about Gold market, GOFO and questions whether "1300 tonnes of gold missing from the Bank of England?" If it is true, this gold was used to suppress the Gold price during the recent Special OP: Gold Wash Out. The record low COMEX Gold is indicating the Bear Squeeze in Gold coming to the market."

Peter Schiff: Buy Gold and Silver Now, Money Printing Until We Have A Currency Crisis

  Gold market experiences  the unprecedented physical demand at these levels while Gold Miners are cutting production and putting their projects on hold. Where the Gold will come from?

Alasdair Macleod: "1300 tonnes of gold missing from the Bank of England?" GATA seeks answers.

"Alasdair Macleod talks with Max Keiser from 13.00 about Gold market, GOFO and questions whether "1300 tonnes of gold missing from the Bank of England?" If it is true, this gold was used to suppress the Gold price during the recent Special OP: Gold Wash Out. The record low COMEX Gold is indicating the Bear Squeeze in Gold coming to the market."

Market Guru - Faber Bets Big On Gold

"Investment Guru Marc Faber says he wants to have 25% of his assets in gold and own assets that are not linked to the vulnerable financial markets. "The continuing credit debt crisis will eventually lead to a sovereign wealth crisis," he says. He also foresees a rise in oil prices on the back of Middle East problems and higher China demand."

Alasdair Macleod: "1300 tonnes of gold missing from the Bank of England?" GATA seeks answers.

"Alasdair Macleod talks with Max Keiser from 13.00 about Gold market, GOFO and questions whether "1300 tonnes of gold missing from the Bank of England?" If it is true, this gold was used to suppress the Gold price during the recent Special OP: Gold Wash Out. The record low COMEX Gold is indicating the Bear Squeeze in Gold coming to the market."

Alasdair Macleod: "1300 tonnes of gold missing from the Bank of England?" GATA seeks answers.

  Alasdair Macleod talks with Max Keiser from 13.00 about Gold market, GOFO and questions whether "1300 tonnes of gold missing from the Bank of England?" If it is true, this gold was used to suppress the Gold price during the recent Special OP: Gold Wash Out. The record low COMEX Gold is indicating the Bear Squeeze in Gold coming to the market.

GATA's Bill Murphy On The Manipulated Gold Drop

"We have more and more evidence about the manipulation in the Gold market in order to save the day of the former reserve currency of choice - US Dollar.  Markets can not be manipulated forever - Gold's come back will surprise a lot of investors. China will be writing a lot of "Thank you" cards to the "clueless Bernanke"."

GATA:

Bank of England refuses comment on huge discrepancy in custodial gold reports

Submitted by cpowell on Tue, 2013-07-30 15:08. Section: Documentation

11:11a ET Tuesday, July 30, 2013

Dear Friend of GATA and Gold:

The Bank of England refuses to explain what appears to be a huge discrepancy in its accounting of the gold it holds in custody, a difference of as much as 1,200 tonnes between the total reported in the bank's annual report in February and the total reported in a "virtual tour" of the bank posted this month at the bank's Internet site:

http://www.bankofengland.co.uk/Pages/info/virtualtourapp.aspx

The discrepancy was noted by GoldMoney research director Alasdair Macleod last week during an interview with Max Keiser on the "Keiser Report" program on the Russia Today television network:

http://www.gata.org/node/12854

Responding to Macleod's assertions, your secretary/treasurer wrote to the bank's public information office Sunday seeking clarification about the bank's custodial gold.

A reply was quickly sent from the bank but it was unclear. So your secretary/treasurer wrote back asking for plain answers to these questions:

1) Will the bank confirm any difference in the amount of gold reported held in custody in February and the amount in custody reported by the new Internet site application?

2) Did Alasdair Macleod misconstrue anything about the Bank of England's custodial gold in his remarks on the "Keiser Report" program on Russia Today?

3) Is the bank declining to acknowledge changes in the amount of gold in its custody? If so, could you explain why?

4) Does the bank prefer to be reported to be declining to acknowledge substantial changes in the amount of gold in its custody?

A reply received today from the head of the bank's public and internal communications division, Chris Shadforth, provided affirmative answers to Questions 3 and 4:

"The number of bars mentioned in the app cannot be used to infer a change in the amount of custodial gold held by the Bank of England as the figure is deliberately non-specific," Shadforth wrote. "The bank will not be offering any further comment on this matter."

That is, the information provided to the public by the bank about its custody of gold is for entertainment purposes only and the facts of surreptitious intervention by central banks in the gold and currency markets are not to be discussed, in accordance with the findings of the secret March 1999 report of the International Monetary Fund, revealed by GATA last December, which related that central banks conceal their gold swaps and leases to facilitate secret market intervention:

http://www.gata.org/node/12016

So Macleod will stand uncontradicted and participants in the financial markets -- at least the few who pay attention -- may fairly assume that the smashing of the gold price in April well may have been related to a huge outflow of metal from the Bank of England's vault.

And once again the great asset of Western central banking in surreptitious market manipulation is shown to be the refusal of mainstream financial news organizations to put specific and critical questions to central banks and to report their refusals to answer.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc."

Charles Nenner Research: Cycles Say Gold is Bottoming.

 

  If the history is of any guidance, today's BOE statement and Pound Slaughtering is the sign of things to come in the US Former Reserve Currency Of Choice Land. We will remind everybody that QE was first started by BOE and it was called as it is: Money Printing. 

Kitco:

Cycles Say Gold is Bottoming

"Kitco News talks with David Gurwitz of Charles Nenner Research. Gurwitz explains how cycle research predict price movements in gold, silver and other markets. "We're very close to a bottom, and longer term we think it's going to go back to where it was," Gurwitz told Kitco News when asked about gold prices. Tune in to hear about cycles and what the data has to say about the future of gold and silver prices. Kitco News, July 3, 2013."

ZeroHedge:

Cable Carnage Following Carney's First Bank Of England Statement

"While it was not surprising that the BOE did nothing to change its rate or QE program, it was surprising (to some) that in the first official statement following the appointment of Goldman's Mark Carney as head of the Bank of England, the bank did mention that forward guidance and intermediate thresholds would likely be considered at the August assessment. Which, of course, is code for expect a major change in monetary policy. And now we also know the date, meaning that some time in August Goldman's latest central bank head will proceed doing what Goldman central bank heads do best: crush currencies in order to boost nominal, not real, returns and ensure another record Goldman bonus pool.

The full statement from the BOE:"

NSA, Michael Jackson and Max Keiser's Gold Theft In America!

"After NSA with all its "friends" spying 24/7 and Michael Jackson's latest exposure, we are just wondering now: who has the "Gold Manipulation Tapes"and who will dare to leak them first. We will not be surprised at all that it will happen very soon, but some shorts could be up to a treat."