James Dines - Gold, Silver & A New Super-Major Bull Market

  James Dines talks about new Super-Major Bull Markets in the making, which are still invisible for the crowds. He praises Tesla Motors with its disruption of auto-market and 3D printing technology. We think that our ideas about Lithium will fit nicely in this trend.

  Original Gold Bug has recently reinstated his Buy Call on Gold. His observations are correlating nicely with the technical picture provided by Adam Hamilton in his latest piece:

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."

King World News:

"Dines:  “Remember, gold moves on its own cycle.  It has come down with the whole raw materials crash in China, and it’s dragged down every single raw material including rare earths, uranium, everything.  But gold is different.  Curiously enough we have been getting an upturn in some of these rare earths and uraniums.  They seem to be moving together for some reason.  The answer to that is probably somewhere deep in mass psychology.  

But the most important thing to remember about the geopolitical situation is that gold is a hedge against two things:  Currency debasement, in other words too much printing of phony paper money, and also geopolitical fears....

“And that’s happening in the Middle-East.  That’s expressing itself in Egypt right now.  The violence is going to get much worse.  And of course whenever there is trouble around the Suez Canal, the prices of oil and shoots up.  Why?  Because the people in those areas are uncertain about their currencies -- will they be there tomorrow?

So they swing their money into gold, and to some extent silver.  That’s what’s happening now.  Gold will move generally, but not precisely, against or opposite the stock market -- not every day but generally.  

The Dines ‘Wolf Pack’ theory says that groups of similar economic backgrounds tend to move together.  You will note that all of the metals tend to move together -- gold, silver, platinum, and palladium.  We flashed a buy signal on gold again recently, and we think they (the metals) look higher.

It depends on whether there will be peace in the Middle-East or what’s going to happen.  The area is in turmoil.  It’s historic.  The area is seething, and worse than that there is an eery collection of coincidences relating back to the 1930s.  (As an example) the popularity of Superman is an interesting resurgence.

You are also getting a re-militarization of the Far-East.  Japan, India, and the Philippines have just announced aircraft carriers to counter the aggressiveness of China.  China is still screaming for revenge for Nanking.  That area looks like a war (is coming).

So it looks like the 1930s, the rebuilding of navies -- all of this is so typical of what led up to World War II.  That of course would be very bullish for gold.  In addition to that, you also had the Fed running the printing presses like crazy during the 1930s.  That’s when this generation of economists got locked into the idea that running the printing presses and printing crazy amounts of money and going ever deeper into debt really got started.

Not many people realize that Franklin Delano Roosevelt raised the price of gold in the 1930s, and I think that was one of the key reasons there was a recovery.  But even in the 1930s, the unemployment problem was not solved until after World War II started and a lot of the population moved into the military.

Fed-head Bernanke is out of control.  Bernanke is still overspending and over-borrowing to boost the economy -- frantic, fanatical, undeterred by six straight years of spending and increasing debt.  (He has) utterly failed to increase the number of paying jobs, and still insists that even more will help.”

James Dines Interview.

Gold: Correction Could Be Over: Huge U.S. gold position liquidated by fund-WSJ tnr.v, laq.v, asm.v, ngq.to, mxr.to, bvg.v, bva.v, ura.v, abn.v, alk.ax, rvm.to, slw, mgn, epz.to, grc.to, auy, ktn.v, fvi.to, btt.v, gbn.v, cgp.v

  We take it you've hear of the phrase "We are what we eat" - our financial and regulation authorities must be all eating nuts these days. The guy with 10 million dollars "under management" can control 10% of the U.S. Gold Futures - welcome to post-crisis risk management!

  But this is nothing; the excuse for the correction in Gold will seize to be valid in time. Speaking of time, now is the time to make your shopping list of your favorite juniors. Gold has easily found buyers during recent retracement after incredible run, and now is poised for another uphill battle with the wall of worry.

  On a daily chart, we are at the same level on MACD as we were at the last correction in the beginning of August, just before Gold and junior miner's 2010 home run.

  Below on weekly chart we have a strong bullish candle, while the  STO is close to potential reversal - the way how the Gold market held this recent correction provide us with comfort that this Bull is far from over - the juniors miners in particular will ignite the next leg up.

  Geopolitical situation in the Middle East ignited by the uprising Egypt and Oil closing above 100 will spike Inflation fears all around the world - negative real rates during this stagflation phase will provide necessary fundamental support to the Gold bull market, while Silver will bring even more excitement and cherry picked juniors will bring the nostalgic memories of the fun days just before the crisis.

Reuters:

Huge U.S. gold position liquidated by fund-WSJ

LONDON | Fri Jan 28, 2011 5:44am EST

Jan 28 (Reuters) - Hedge fund SHK Asset Management liquidated a U.S. gold futures position this week valued at over $850 million, more than 10 percent of the main U.S. futures market, the Wall Street Journal reported on Friday.

As a result of the move, which was made on Monday, the number of gold contracts on CME Group Inc.'s Comex division plunged by more than 81,000, to about 500,000, in their biggest single fall ever, the WSJ reported. It said an average daily move is about 3,000 to 5,000 contracts.

Daniel Shak, who runs the $10 million fund, told the newspaper that the trade had been profitable for him for years, but it stopped working and the exchange kept raising his margin requirements, forcing him to put up more money.

Shak said that when the exchange raised it by 25 percent on Monday, he decided to cut his losses and end the trade, the newspaper said.

(Reporting by Jan Harvey; Editing by Jason Neely)"

Related articles

• Silver in Montana: Revett to roll back shares SEEKS STOCK EXCHANGE LISTING IN THE USA rvm.v, laq.v, bvg.c, bva.v, tnr.v, ng.to, grc.to, amm.to, ktn.v, gbn.v, rvm.to, mgn, asm.v, sgc.v, ngq.to, btt.v, alk.ax, nem, fcx, bvn, auy, abx, (sufiy.blogspot.com)
• HSBC and JP Morgan accused of manipulating silver market ASM.v, RVM.to, MGN, KTN.v, CUU.v, TNR.v, MAI.to, NGQ.v, FVI.to, KS.v, CZX.v, BVA.v, BVG.v, MAX.to, GRC.to, SGC.v, SSRI, SLW, SLV (sufiy.blogspot.com)
• Why and how to invest in Lithium and what Gold at 5000 USD/oz will tell us? Inflation, Inflation, Inflation. TNR.v, CZX.v, GRC.to, AMM.to, RM.v, LMR.v, SGC.v, NGQ.to, CUU.v, EPZ.to, KTN.v, GBN.v, BVA.v, BVG.v, BTT.v, ASM.v, MGN, RVM.to (sufiy.blogspot.com)
• CIBC: Los Azules, Minera Andes and TNR Gold in the report: Tne Next Leg of Growth in the Copper Supply Chain TNR.v, MAI.to, NG.to, CZX.v, ABX, FCX, BHP, TCK, BVN, AUY, RTP, LUN.to, BAJ.to, BWR.to, CS.to, EQN.to, IMN.to, NCU.to, IVN.to, WRN.to, TKO.to, QUX (sufiy.blogspot.com)
• TNR Gold: Retire Fund: Junior Gold miners could be takeover targets as gold price heads toward $1500 oz. tnr.v, grc.to, ngq.to, sgc.v, mgn, asm.v, ktn.v, epz.v, cgp.v, rvm.to, rm.v, lmr.v, laq.v, gbn.v, bva.v, bvg.v, alk.ax, nup.ax, srz.ax, usa.ax, abn.v, (sufiy.blogspot.com)
• US Dollar Collapse: Video: JP Morgan Silver Manipulation Explained tnr.v, mai.to, rvm.to, asm.v, ktn.v, cuu.v, sgc.to, grc.to, btt.v, max.to, gbn.v, abn.v, ura.v, lmr.v, laq.v, ssri, slv, slw, (sufiy.blogspot.com)
• Canada Zinc Metals: 18 mil CAD private placement with Tongling Nonferrous Metals Group Holdings Co czx.v, lun.to, tnr.v, bwr.to, cs.to, imn.to, ncu.to, tko.to, wrn.to, qux.to, rio, bls.to, tck (sufiy.blogspot.com)
• Gold and Silver in Nevada: Pinetree acquires two million La Quinta shares laq.v, bvg.c, bva.v, tnr.v, ng.to, grc.to, amm.to, ktn.v, gbn.v, rvm.to, mgn, asm.v, sgc.v, ngq.to, btt.v, alk.ax, nem, fcx, bvn, auy, abx, (sufiy.blogspot.com)
• Silver in Mexico: Avino Silver arranges $5.1-million private placement with Sprott asm.v, tnr.v, rvm.v, laq.v, bvg.c, bva.v, tnr.v, ng.to, grc.to, amm.to, ktn.v, gbn.v, rvm.to, mgn, asm.v, sgc.v, ngq.to, btt.v, alk.ax, nem, fcx, bvn, auy, abx, (sufiy.blogspot.com)
• TNR Gold: Los Azules: Minera Andes will invest US$30 millions in Los Azules. to fund a 30,000 meter drilling campaign. tnr.v, mai.to, tck, cuu.v, czx.v, lun.to, bwr.to, cs.to, imn.to, ncu.to, tko.to, wrn.to, qux.to, bls.to, bhp, fcx (sufiy.blogspot.com)
• Looking for Catalyst 2010: Reflections on QE, US Dollar, Gold, Silver, Lithium and REE, Copper and Zinc tnr.v, czx.v, rm.v, lmr.v, alk.ax, laq.v, asm.v, grc.to, sgc.v, ngq.to, ktn.v, mgn, epz.v, rvm.to, tsla, sqm, fmc, roc, lit, li.v, wlc.v, clq.v, res.v, (sufiy.blogspot.com)
• Treasuries Bubble Explained: Video: Bonds and Quantitative Easing For Dummies tnr.v, czx.v, lun.to, grc.to, ngq.to, sgc.v, mgn, asm.v, ktn.v, epz.v, cgp.v, rvm.to, rm.v, lmr.v, laq.v, gbn.v, bva.v, bvg.v, alk.ax, nup.ax, srz.ax, usa.ax, abn.v, jnn.v, ura. (sufiy.blogspot.com)
• Lithium and REE: Begining of the Bull: Jim Puplava with James Dines on Uranium, Gold and Rare Earths TNR.v, CZX.v, TSLA, RM.v, LI.v, CLQ.v, WLC.v, (sufiy.blogspot.com)
• Lithium and REE: Oil Trades Near 27-Month High as Economic Recovery May Boost Energy Demand tnr.v, lmr.v, rm.v, alk.ax, sqm, fmc, roc, lit, li.v, wlc.v, clq.v, res.v, ree, avl.to, nsany, f, gm, rno.pa, dai, byddf, hev, aone, vlnc (sufiy.blogspot.com)
• Rare Earths for Dummies - REE sector is getting Hot tnr.v,czx.v, alk.ax, avl.to, ree, mcp, appl, tm, ge, gm, quc.v, mdl.v, nsany, rno.pa, cee.v, lit, li.v, wlc.v, clq.v, fmc, sqm (sufiy.blogspot.com)
• Jon Hykawy: High on Lithium tnr.v, lmr.v, rm.v, alk.ax, sqm, fmc, roc, lit, li.v, wlc.v, clq.v, res.v, ree, avl.to, nsany, f, gm, rno.pa, dai, byddf, hev, aone, vlnc (sufiy.blogspot.com)
• Gold and Silver in Ecuador: Cornerstone authorized to recommence exploration at Flagship Shyri property in Ecuador cgp.v, laq.v, bvg.c, bva.v, tnr.v, ng.to, grc.to, amm.to, ktn.v, gbn.v, rvm.to, mgn, asm.v, sgc.v, ngq.to, btt.v, alk.ax, nem, fcx, bvn, auy (sufiy.blogspot.com)
• Huge U.S. gold position liquidated by fund-WSJ (reuters.com)
• "Meet The Man Behind The Liquidating Hedge Fund That Blew Up The Gold Market" and related posts (zerohedge.com)

Energy Security: Unrest in Egypt stirs interest in auto show’s electric cars tnr.v, czx.v, lmr.v, rm.v, alk.ax, sqm, fmc, roc, lit, li.v, wlc.v, clq.v, res.v, ree, avl.to, nsany, f, gm, rno.pa, dai, byddf, hev, aone, vlnc

Over 60% of the world's oil reserves are in the Middle East and Egypt holds the keys to this region stability. Nobody knows for sure where this Street Revolution in the Wikileaks time will lead this nation, but one thing is clear that this fire could spread very fast and, as you can guess, Oil markets are controlled by not so democratic regimes in general with their own agenda. We will doubt that the health of western consumers will be the number one concern on their mind in the future.

  This almost "perfect" Oil Demand Supply scenario from IEA on the chart above has accounted for "Crude Oil: fields to be found" - politically correct way to scream about Oil Shortage in the nearest future. Nobody was even thinking about any pressure - like Egypt eruption - on the world oil supply markets. We are not calling for panic now, but for how long can we continue to rely on the Oil map above to carry up our economies?

"Egypt on TV screens screams about Oil Age coming to an End - our recovery is too fragile to sustain the coming Oil Shock - we have the way out now and we can chose what to do next. At the certain level of Oil price all worries and concerns related to Electric Cars will be gone - you will be just happy to be able to drive."

PortlandTribune:

Unrest in Egypt stirs interest in auto show’s electric cars

Crowds swarm to clean energy cars as Mideast protests spur oil supply concerns

BY JIM REDDEN

The Portland Tribune, Jan 28, 2011

The real world intruded on the 2011 Portland International Auto Show when widespread protests erupted in Egypt just as the annual event opened at the Oregon Convention Center.

The possibility of reduced Mideast oil supplies added urgency to the daylong seminar on increasing the use of electric vehicles and plug-in hybrids that was held at the show on Friday.

One speaker, Sam Ori of the Electrification Coalition, said Portlanders already understand the need to reduce American dependence on foreign oil.

“What we need to do is sell EVs in cities other that Portland,” Ori told nearly 200 people at the EV Road Map 3 forum on the third floor of the center.

Proof of Ori’s claim was easily found on the lower two floors of the center, where 35 manufacturers were displaying around 400 new cars and trucks. People swarmed around the higher mileage vehicles, including the two all-electric Nissan Leafs making their first public appearances in Oregon.

Russell Vare, Nissan’s Regional EV Manager, found himself besieged with questions from potential buyers when he agreed to meet a reporter at one of the cars.

“I’m glad to tell people what they want to know, but I’m not a salesman,” said Vare, who was in town to participate in the forum."

Examiner.com

Why Americans should care about what happens in Egypt

This weekend the country of Egypt faces a critical juncture as thousands of citizens protest the government of President Honsi Mubarak. There is a very real possibility of the protest movement turning into a full-scale revolution that brings about a new government in the country. The result of this weekends’ events will dramatically affect the lives of approximately 80 million human beings, which is reason enough to care about the story. Still, some may need some additional motivation to pay attention to what happens in Egypt. So, with no further delay, here are three reasons every American should care about Egypt.

The Suez Canal

The country of Egypt contains a crucial choke point for transportation called the Suez Canal. The canal connects the Mediterranean Sea to the Red Sea. Without the canal, ships are forced to go all the way around the southern tip of Africa. A significant amount of oil travels through the canal, and United States warships frequently are transported through the canal. Simply put, the canal holds vital economic and strategic importance. Over 60% of the world's known oil reserves are in the Middle East. The United States imports approximately 9 to 12 million barrels of oil each day just to keep up with the massive demand of the economy, and much of that oil comes through the Suez canal. At least one United States aircraft carrier fleet is always stationed in the area.

If the Egyptian government falls into chaos, it could endanger the continued operation of the canal. If the country is taken over by a government unfriendly to the United States, it could seriously endanger the ability of the United States to use the canal.

Oil Prices

As stated above, the United States is still tremendously reliant on oil from the region. Yesterday crude oil prices spiked 4.3% on news of the unrest within in Egypt. The country of Egypt actually has very little crude oil reserves. The larger concern is that the Suez Canal could cut off transportation of crude oil from the region, or that the unrest spreads to other countries like Saudi Arabia that do have more oil. Many analysts believe the current protests in Egypt were inspired by those in Tunisia over the last month. The large-scale protest in Egypt may spur movements in other countries and cause instability in a region that is responsible for keeping American cars running. At the very least, the unrest in Egypt alone is likely to cause gas prices to rise over the next month.

Stability in the Middle East

As undemocratic as the country of Egypt may be, the United States has still viewed the nation as a source of stability in the relatively volatile Middle East over the last three decades. Egypt has a long-standing peace agreement with Israel. Egypt was supportive of the United States' first war in Iraq, and has been called a close ally in the United States' fight against terrorism in the region.

Under the best case scenario, the authoritative regime of Mubarak falls and a new, democratically-elected, peaceful government is installed in its place. However, the best case scenario may not unfold. In fact, history tells us that revolutions quite often result in an even worse government than that which was overthrown. A weaker government in Egypt may allow for a growing influence of terrorist groups within the country. Under the worst case scenario, an even more ruthless anti-Israel regime would take over - similar to what happened in Iran after the revolution in that country during the late 1970’s."

Related articles

• Peak Oil: UK is One Step Closer to Petrol Rationing tnr.v, czx.v, alk.ax, lmr.v, tsla, rm.v, nup.ax, srz.ax, usa.ax, jnn.v, abn.v, res, mcp, avl.to, quc.v, cee.v, sqm, fmc, roc, li.v, wlc.v, clq.v, lit, nsany, byddf, gm, dai, rno.pa, hev, aone, vlnc (sufiy.blogspot.com)
• Lithium Drive: How to Charge GM Volt tnr.v, czx.v, lmr.v, rm.v, alk.ax, sqm, fmc, roc, lit, li.v, wlc.v, clq.v, res.v, ree, avl.to, nsany, f, gm, rno.pa, dai, byddf, hev, aone, vlnc (sufiy.blogspot.com)
• Puru Saxena: Welcome, "Peak Oil" tnr.v, czx.v, lmr.v, rm.v, alk.ax, sqm, fmc, roc, lit, li.v, wlc.v, clq.v, res.v, ree, avl.to, nsany, f, gm, rno.pa, dai, byddf, hev, aone, vlnc (sufiy.blogspot.com)
• Peak Oil: President Obama calls for Electric Vehicles and Clean Energy in his State of the Union Address tnr.v, czx.v, lmr.v, rm.v, alk.ax, sqm, fmc, roc, lit, li.v, wlc.v, clq.v, res.v, ree, avl.to, nsany, f, gm, rno.pa, dai, byddf, hev, aone, vlnc (sufiy.blogspot.com)
• Peak Oil: Reuters: International Energy Agency Says 'Peak Oil' Began in 2006 tnr.v, czx.v, alk.ax, lmr.v, tsla, rm.v, nup.ax, srz.ax, usa.ax, jnn.v, sqm, fmc, roc, li.v, wlc.v, clq.v, lit, nsany, byddf, gm, dai, rno.pa, hev, aone, vlnc (sufiy.blogspot.com)
• Lithium Drive: Revenge of the electric car tnr.v, czx.v, lmr.v, rm.v, alk.ax, sqm, fmc, roc, lit, li.v, wlc.v, clq.v, res.v, ree, avl.to, nsany, f, gm, rno.pa, dai, byddf, hev, aone, vlnc (sufiy.blogspot.com)
• Peak Oil: Obama urges us to end our addiction to fossil fuels tnr.v, czx.v, alk.ax, lmr.v, tsla, rm.v, nup.ax, srz.ax, usa.ax, jnn.v, sqm, fmc, roc, li.v, wlc.v, clq.v, lit, nsany, byddf, gm, dai, rno.pa, hev, aone, vlnc (sufiy.blogspot.com)
• Lithium drive: Seoul Claims Commercial Electric Bus Service A World First tnr.v, lmr.v, rm.v, alk.ax, sqm, fmc, roc, lit, li.v, wlc.v, clq.v, res.v, ree, avl.to, nsany, f, gm, rno.pa, dai, byddf, hev, aone, vlnc (sufiy.blogspot.com)
• Peak Oil: What A Way To Go: Life at the end of Empire tnr.v, czx.v, alk.ax, lmr.v, tsla, rm.v, nup.ax, srz.ax, usa.ax, jnn.v, sqm, fmc, roc, li.v, wlc.v, clq.v, lit, nsany, byddf, gm, dai, rno.pa, hev, aone, vlnc (sufiy.blogspot.com)
• Lithium and REE: Oil Trades Near 27-Month High as Economic Recovery May Boost Energy Demand tnr.v, lmr.v, rm.v, alk.ax, sqm, fmc, roc, lit, li.v, wlc.v, clq.v, res.v, ree, avl.to, nsany, f, gm, rno.pa, dai, byddf, hev, aone, vlnc (sufiy.blogspot.com)
• "Fear of Suez Canal closure drives up price of crude oil futures" and related posts (personalmoneystore.com)
• Unspoken Concern Over Egyptian Uprising: Control Of Suez Canal And Price Of Gas (mediaite.com)
• Crude prices spike on Egypt worries (money.cnn.com)