So what is really happening.....

Sorry that I have been away for so long but have spent the last few months building my new pet store. Big job but going well. Now just gotta get the website going - you can check out the progress at www.petespets.ca or you can find almost all our listings on amazon.ca.

Anyway, GOLD, what has been going on? Dropped down but now seems to be heading in the right direction. But what I would really like to know as the complete layman that I am how the press manipulate the news and why? Who and why? What is the motivation. Check out the headlines on Yahoo Finance.

-Record Gold in India Seen Hurting Jewelry Demand as Rupee Slumpsat Bloomberg(Tue 5:52AM EDT)

-Turkey, Russia raise gold reserves in July as prices climb - IMFat Reuters(Tue 12:57AM EDT)

-[video] Gold is now in a bear market: Proat CNBC(Mon, Aug 26)

-[video] Why you should be selling gold: Proat CNBC(Mon, Aug 26)

Seems to me that whatever happens in the market Gold is seen as going to go down. Even if Gold goes up it's a "blip" and will drop. If it drops a 1/2% it's just the "start" of a bigger drop.

Anyway maybe just me but I just don't get the news natural negativity towards gold. Something is up.

Cheers Pete

Gold Ends Near Steady; Bullish Outside Markets Limit Selling Pressure

Tuesday February 12, 2013 1:53 PM (Kitco News) - Gold ended the U.S. day session near steady levels Tuesday. However, prices did hit another fresh five-week low overnight. Gold had seen some intensified technical selling pressure early this week, but on Tuesday the key outside markets turned bullish for gold and silver (lower U.S. dollar index, firmer crude oil prices), which brought at least a temporary halt to the downside price pressure on the precious metals. April gold last traded up $0.10 at $1,649.10 an ounce. Spot gold was last quoted up $0.10 at $1,649.00. March Comex silver last traded up $0.08 at $30.99 an ounce. The Group of 20 nations meets in Moscow on Friday and Saturday. A main topic will likely be currency values as many industrialized nations have in recent months, or longer, worked to devalue their currencies to revive their economic growth. The Group of Seven nations on Tuesday issued a statement that said their central banks were not attempting to devalue their currencies, but instead trying to boost their economic growth rates. The G-7 nations also said they will not target specific currency exchange rates. The statement was meant to head off growing concerns that “currency wars” could break out if there is not some form of agreement reached soon by the major nations, regarding currency exchange rates. The G-7 statement was mildly supportive to the precious metals and it implies that the major world economies are not going to do much to stop the devaluation of their currencies. Later there were some reports that the G-7 said their statement was misinterpreted and the group reportedly said it is concerned about the depreciation of the Japanese yen. There is still some confusion on that matter. At present, Japan is seen as the major instigator as the yen continues to plummet in value. The fact that the G-7 is attempting to “jawbone” the matter before the G-20 meeting even begins is an indicator the situation is considered serious by the G-7 countries. If the major countries cannot come to meaningful agreement on the matter and continue to work to devalue their currencies, that could become a major bullish force for the gold market. News that North Korea has detonated another nuclear bomb underground, in defiance of United Nations sanctions, had little impact on the market place Tuesday. However, North Korea’s rogue status on the world stage could quickly flare up into an international incident, which would prompt investor demand for perceived safe-haven assets like gold. The Lunar New Year celebration is occurring this week in Asia. China is on holiday all week for the celebration. That is slightly bearish for the gold market as it is limiting physical buying interest from the Chinese this week. However, there were late reports Tuesday that physical demand for gold in Asia may be picking up as the week progresses. The U.S. dollar index was lower early Tuesday but did hit another fresh four-week high overnight. The greenback bulls have gained some upside near-term technical momentum recently, but the bears still have the overall near-term technical advantage. Meantime, Nymex crude oil futures prices were firmer Tuesday. The crude oil bulls have the overall near-term technical advantage. The bullish near-term technical posture in crude oil is a supportive underlying element for the precious metals. The London P.M. gold fixing is $1,647.50 versus the previous London P.M. fixing of $1,652.00. Technically, April gold futures prices closed nearer the session high Wednesday on tepid short covering after hitting a fresh five-week low overnight. Near-term chart damage has been inflicted this week as price has seen a bearish downside “breakout” from a choppy and sideways trading range on the daily chart. Bears have the near-term technical advantage. The gold bulls’ next upside price breakout objective is to produce a close above solid technical resistance at the February high of $1,687.00. Bears' next near-term downside breakout price objective is closing prices below solid technical support at the January low of $1,627.90. First resistance is seen at Tuesday’s high of $1,653.80 and then at $1,660.00. First support is seen at Tuesday’s low of $1,649.50 and then at $1,627.90.

Gold Bullion Development Releases NI-43-101 Technical Report on Granada Gold Project with SGS Canada Granted Mandate for Preliminary Feasibility Study for a Rolling Start with an On-site Mill

VANCOUVER, Feb. 4, 2013 /CNW/ - Gold Bullion Development Corp. (TSXV: GBB) (OTCPINK: GBBFF) (the "Company" or "Gold Bullion") is pleased to provide an independent NI-43-101 Technical Report prepared in accordance with "National Instrument 43-101 - Standards of Disclosure for Mineral Projects" (NI 43-101), on its Granada Gold Property, located along the prolific Cadillac trend in North-western Quebec, 5 km south of the city of Rouyn-Noranda. The Technical Report, titled "Preliminary Economic Assessment (PEA) Granada Gold Project, Rouyn-Noranda, Abitibi, QC", dated February 4, 2013 carries an effective date of December 21, 2012. This report was prepared by SGS Canada Inc. and authored by Claude Duplessis, P.Eng., Gaston Gagnon, P.Eng., Jonathan Gagné, P.Eng. and Gilbert Rousseau, P.Eng., all Qualified Persons as defined by NI 43-101. The Technical Report is available on-line under the Company's profile on the Canadian System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com and on the Company's website at www.goldbulliondevelopmentcorp.com. Gold Bullion has given a mandate to SGS Canada Inc. to prepare a Preliminary Feasibility Study (PFS) for a Rolling Start in accordance with the following objectives; to provide grade validation for processing around 475 tonnes per day for a three year period, to begin pouring gold at the earliest opportunity and to prepare the site for a below the horizon mill with a zero discharge configuration. The PFS is also to include specific recommendations demonstrating that Gold Bullion is a good corporate citizen to ensure continued strengthening of positive relations in the surrounding community. About Gold Bullion Development Corp. Gold Bullion Development Corp. is a TSX Venture-listed junior natural resource company focusing on the exploration and development of its Granada Property near Rouyn-Noranda, Québec. Additional information on the Company's Granada gold property is available by visiting their website at www.GoldBullionDevelopmentCorp.com and on SEDAR.com. "Frank J. Basa" Frank J. Basa, P.Eng. President and Chief Executive Officer Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. SOURCE: Gold Bullion Development Corp. Frank J. Basa, P.Eng., President and CEO at 1-514-397-4000 Source: Canada Newswire (February 4, 2013 - 9:15 PM EST)

Focus Graphite and SOQUEM Confirm the High Content of Critical Rare Earth Elements at Kwyjibo with 2.95% TREO and 1.44% Cu Over 10 m at Surface

OTTAWA, ONTARIO--(Marketwire - Feb. 6, 2013) - Focus Graphite Inc. (TSX VENTURE:FMS)(OTCQX:FCSMF)(FRANKFURT:FKC) ("Focus" or the "Corporation") and partner SOQUEM Inc. ("SOQUEM") are pleased to provide an update of their 2012 exploration program at the Kwyjibo polymetallic Iron-Rare Earth Elements-Copper-(Gold) (Fe-REE-Cu-(Au)) Property ("Kwyjibo" or the "Property"), located in the Côte-Nord administrative district of Québec. The 2012 exploration program at Kwyjibo comprised of surface showing and trench re-sampling, core drilling and ground geophysical surveying. Highlights of the Josette showing and trench re-sampling program include: Josette showing: 2.95% TREO, 37.35% REOc* and 1.44 % Cu over 10 m, including a high-grade sub-zone of: 4.59% TREO, 35.58 % REOc*, and 2.62 % Cu over 2m. Trench TR-95-30: 4.13% TREO, 36.08% REOc* and 0.23 % Cu over 2 m. Trench TR-95-29: 3.58% TREO, 39.90% REOc*and 0.17% Cu over 1.5 m. *The ratio of critical rare earth elements ("REOc") is defined by The U.S. Department of Energy ("DOE") as the sum of Nd+Eu+Tb+Dy+Y oxides divided by total rare earth oxides (TREO) : REOc = ((Nd 2 O 3 +Eu 2 O 3 +Tb 2 O 3 +Dy 2 O 3 +Y 2 O 3 )/TREO)*100. The REOc ratio is the expression of the importance of those REEs sought by the industry without considering the technological challenge to recover the REE and all the costs related to a mine development. The new 2012 analytical results highlight the increasing total rare earth content of the mineralization related to the assaying of heavy rare earth elements in comparison to the 1995 analytical results. In 1995, only La, Ce and Sm were analyzed out of the suite of 17 rare earth elements at the Josette showing and in trenches TR-95-30 and TR-95-29. In 2012, 10 new channel samples were collected at the Josette showing, two new channel samples were collected from trench TR-95-30 and one chip sample was taken from trench TR-95-29. The 13 samples were analyzed for the complete range of rare earth elements (Table 1). The 2012 results confirm the high heavy rare-earth elements ("HREE") content of the mineralization at Kwyjibo as well as the high ratio of critical rare earth elements (REOc) which ranges from 32.34% to 41.14%. A map of the Kwyjibo property showing the location of Josette showing, trench TR-95-30 and trench TR-95-29 is available on the Company's website at www.focusgraphite.com. Table 1. Results of the re-sampling program at the Josette showing and at Trenches TR-95-30 and TR-95-29: Sample Length TREO HREO REOc Nd2O3 Eu2O3 Tb2O3 Dy2O3 Y2O3 Fe2O3 P2O5 Cu F Mo Au m % % % % % % % % % % % % ppm g/t Josette showing 181151 1 3,55 33,37 41,14 0,518 0,013 0,019 0,117 0,794 69,30 4,50 0,66 1,43 283 0,02 181152 1 4,55 27,42 37,54 0,722 0,024 0,021 0,124 0,819 52,40 3,51 3,40 4,49 791 0,18 181153 1 4,64 22,43 33,63 0,729 0,019 0,016 0,099 0,695 43,30 2,95 1,84 7,33 2820 0,14 181154 1 2,79 29,81 39,56 0,440 0,008 0,012 0,077 0,569 65,60 3,55 1,22 2,04 227 0,08 181155 1 3,48 29,77 39,29 0,538 0,014 0,016 0,098 0,703 51,50 2,92 1,44 6,79 775 0,10 181156 1 1,99 32,13 40,65 0,296 0,005 0,009 0,059 0,440 69,50 3,24 1,19 2,43 136 0,08 181157 1 1,97 19,28 32,34 0,342 0,004 0,006 0,038 0,246 78,50 2,52 0,48 1,14 28 0,03 181158 1 1,99 26,45 36,83 0,312 0,008 0,008 0,050 0,353 53,00 1,99 1,67 5,10 217 0,15 181159 1 2,68 24,90 35,59 0,426 0,009 0,011 0,065 0,443 50,80 2,55 1,78 5,20 363 0,08 181160 1 1,86 26,58 36,97 0,301 0,006 0,008 0,049 0,325 70,90 2,46 0,76 1,75 23 0,07 Composite 10 2,95 27,21 37,35 0,462 0,011 0,013 0,077 0,539 60,48 3,02 1,44 3,77 566 0,09 Composite 2 * 2 4,59 24,93 35,58 0,725 0,021 0,019 0,112 0,757 47,85 3,23 2,62 5,91 1805 0,16 TR-95-30 181163 1 5,49 21,34 34,06 0,956 0,016 0,019 0,114 0,765 58,30 4,31 0,18 1,44 151 n.a. 181164 1 2,78 26,92 38,11 0,472 0,009 0,012 0,074 0,491 66,60 4,27 0,28 0,96 40 n.a. Composite 2 4,13 24,13 36,08 0,714 0,013 0,016 0,094 0,628 62,45 4,29 0,23 1,20 96 n.a. TR-95-29 181166 1,5 3,58 29,30 39,90 0,611 0,012 0,017 0,105 0,683 66,80 4,86 0,17 0,79 16 n.a. n.a. = not analyzed (*) Composite of 2 meters from samples 181152 and 181153 TREO : Total rare earth oxides = La2O3+Ce2O3+Pr2O3+Nd2O3+Sm2O3+Eu2O3+Gd2O3+Tb2O3+Dy2O3+Ho2O3+Er2O3+Tm2O3+Lu2O3+Y2O3 HREO : Relative content (%) of heavy rare earth oxides = ((Tb2O3+Dy2O3+Ho2O3+Er2O3+Tm2O3+Lu2O3+Y2O3)/TREO)*100 REOc : Ratio of critical rare earth elements = ((Nd2O3+Eu2O3+Tb2O3+Dy2O3+Y2O3)/TREO)*100 The results of the rare earth elements assay program are expressed as total rare earth oxides (TREO), including yttrium oxide and ratio of critical rare earth elements (REOc*). Values of TREO (REE2O3) presented are the sum of all rare earth oxides of the lanthanide series and yttrium oxide; strictly not a rare earth element, yttrium is included in the total amount of REE because of the chemical behaviour and uses that are similar to the lanthanides. The Josette showing was re-sampled in a composite of ten (10) one-meter long channels, cut parallel to the 1995 channels. For trench TR-95-30, a new two-meter long channel was cut parallel to the trench blasted in 1995 while for trench TR-95-29, chips samples were taken over 1.5 meters intervals. The total length of the 2012 sampling channels in both trenches (TR-95-29 & TR-95-30) is less than in 1995 by 5.4 m due to destruction of portions of the original outcrops caused by the blasting done in 1995, and also because of the subsequent infilling of the trenches by blocks of rocks and dirt and the strong weathering of the outcrop in trench TR-95-29. Quality assurance / Quality control The channels were cut with a rock saw perpendicular to the main foliation of the iron-rich rock (magnetitite). All the channels are one meter long by 2.5 cm wide and vary in depth from 10 to 15 cm. For each channel, the rock samples were broken into pieces and then placed into a plastic bag. In the case of Trench TR-95-29, chips samples of 5 to 10 cm long, by 5 to 10 cm wide and 1 to 5 cm thick were collected from the weathered outcrop over 1.5 m intervals and then placed into a plastic bag. A numbered tag from the ALS laboratory was inserted into the bag prior to the sealing of the bag with a tie-wrap. The sample bags were carried to the camp by helicopter then loaded onto a float plane to Sept-Îles and sent by a carrier to ALS Laboratories ("ALS") in Val-d'Or (a certified laboratory; ISO 9001:2008 and ISO/IEC 17025:2005 for standards). The samples were analyzed for all rare earth elements, most traces and major elements. Due to the limited number of channel samples analyzed, no standard or blank were introduced except the one used by the laboratory. Rare earths and trace elements were analyzed using lithium borate fusion of the sample prior to acid dissolution and analyzed by ICP-MS (Induced-Couples Plasma Mass Spectrometry). This method is best suitable for minerals resistant to acid digestion, like some REE-bearing silicates. For REE high grades samples, a re-analysis of the pulp was performed using high sample to volume ratios in addition to Class A volumetric glassware. ALS laboratory used certified high grade rare earth reference materials as part of their standard protocol. Major elements were analyzed using a lithium borate fusion of the sample prior to acid dissolution and analyzed by ICP-AES (Induced-Couples Plasma Atomic Emission Spectrometry). REE, traces and major elements were analyzed at ALS laboratories in Vancouver. For sulphide-bearing samples, copper, lead, silver, zinc and sulphur were digested in aqua regia, then analyzed by AAS technique (Atomic Absorption Spectrometry). Gold was analyzed by fire assay and AAS with a 50g nominal sample weight. Base metals and precious metals were analyzed at ALS in Val-d'Or. 2012 core drilling program Thirty-one (31) holes (4,207 m) were drilled at Kwyjibo in 2012 with the aim of validating grades, thicknesses and continuity of the REE-Fe-Cu mineralization in the northeastern portion of the Josette horizon, where the best drilling intersections were obtained in 2011 from hole 10885-11-57 with 2.40% TREO over 48.8m and hole 10885-11-60 with 3.61% TREO over 33.1m (see Focus Metals press release dated March 13th 2012). A map of the Kwyjibo property showing the location of the 31 drill holes is available on the Company's website at www.focusgraphite.com. A total of 1,333 samples (1,249 half NQ drill core samples; 23 duplicates; 29 standard samples and 32 blank samples) were sent to ALS in Val-d'Or and Vancouver, for total rare earth elements, base metals, major elements and trace element analysis. The results from the 2012 core drilling program are pending. Surface and borehole TDEM geophysical surveys A ground time-domain electromagnetic ("TDEM") geophysical survey and a borehole Pulse-EM survey were completed by Abitibi Geophysic Inc. from Val-d'Or (Québec) in early October. A total of 75 km of lines were surveyed on five different loops that covered all significant VTEM anomalies from the 2006 survey and all known occurrences of the iron formation on the Kwyjibo Property. Thirty (30) drill holes (5.492 m), were surveyed with borehole Pulse-EM on three loops. Eight (8) holes from the 1994 to 2011 core drilling programs were also surveyed for a total of 1,219 m for the most northeastern Grabuge - Gabriel showings loop. A total of 2,089 m from 11 drill holes (1994 to 2012) were surveyed on loop that straddled the Fluorine and Josette showings grids. Finally, 2,184 m from 11 holes (1995 to 2012) were surveyed in the loop that covers most of the Josette horizon and the Josette grid. The new ground and borehole geophysical data are currently being processed and interpreted by MB Geosolution of Québec City. High-priority geophysical targets from the 2012 surveys will be followed-up though drilling in 2013. Metallurgical tests and mineralogical study A first round of metallurgical tests is planned at Kwyjibo this year. The testing will be performed on two representative samples of the mineralized iron formation (magnetitite) and the mineralized breccia in the aim to produce concentrates for critical rare earths, copper and iron. The first sample will be comprised of 80kg composite of mineralised rock from Josette showing. The second sample will consist of a 230kg composite from quarter-drill core samples from seven holes drilled below trenches TR-95-29 and TR-95-30. The contract to carry out the metallurgical testing has been awarded to COREM of Québec-City. In conjunction with the metallurgical testing, a mineralogical study will be undertaken in order to characterize the distribution of the REEs in the different REE-bearing minerals. Results from both studies are expected in the third quarter of 2013. Property Location The Kwyjibo polymetallic Iron-Rare Earth Elements-Copper-(Gold) (Fe-REE-Cu-(Au)) property, totalling 118 mining titles and covering 6,278 ha, is located 125 km northeast of Sept-Îles, in the Côte-Nord administrative district of Québec. The property is also located 25 km east of the Québec North Shore and Labrador railway line and is accessible by air from Sept-Îles. Terms of the Agreement On August 3, 2010, the Company announced the signing of an option agreement with SOQUEM Inc., a wholly-owned subsidiary of the Société générale de financement du Québec ("SGF") (in April 2011, the SGF merged with Investissement Québec), to acquire a 50% interest in the Kwyjibo property. Under the terms of the agreement, Focus could acquire a 50% interest in the Kwyjibo property, by spending up to $3 million in exploration work on the property over a period of 5 years of which $1 million had to be spent during the first 2 years. SOQUEM is the operator for the exploration work carried out on the property to date and Focus has the option to become the operator, by paying $50,000 in cash or issuing a block of common shares valued at $50,000. As of the year ended September 30, 2012 Focus had spent $3,244,173 on the Kwyjibo project (net of tax credits and mining duties) and has accordingly earned its 50% interest in the property. About Focus Graphite Focus Graphite Inc. is an emerging mid-tier junior mining development company, a technology solutions supplier and a business innovator. Focus is the owner of the Lac Knife graphite deposit located in the Côte-Nord region of northeastern Québec. The Lac Knife project hosts a NI 43-101 compliant Measured and Indicated mineral resource of 4.972 Mt grading 15.7% carbon as crystalline graphite with an additional Inferred mineral resource of 3.000 Mt grading 15.6% crystalline graphite. Focus' goal is to assume an industry leadership position by becoming a low-cost producer of technology-grade graphite. On October 29th, 2012 the Company released the results of a Preliminary Economic Analysis ("PEA") of the Lac Knife project which demonstrates that the project has robust economics and excellent potential to become a profitable producer of graphite. As a technology-oriented enterprise with a view to building long-term, sustainable shareholder value, Focus Graphite is also investing in the development of graphene applications and patents through Grafoid Inc. About SOQUEM Inc. SOQUEM Inc. is a wholly-owned subsidiary of Ressources Québec. Ressources Québec is a new Investissement Québec's subsidiary, specializes in the mining and hydrocarbon industries; it will consolidate and spur government investment in projects carried out by mining companies and the hydrocarbon sector. The technical information presented in this press release has been reviewed by Benoit Lafrance, Ph.D., Géo (Québec), Focus Vice-President of Exploration and a Qualified Person under National Instrument 43-101. Forward Looking Statements - Disclaimer This news release may contain forward looking statements, being statements which are not historical facts, and discussions of future plans and objectives. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from the Company's expectations are in our documents filed from time to time with the TSX Venture Exchange and provincial securities regulators, most of which are available at www.sedar.com Focus Graphite disclaims any intention or obligation to revise or update such statements. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Contact Information: Mr. Gary Economo President and Chief Executive Officer 613-691-1091, ext. 101 geconomo@focusgraphite.com www.focusgraphite.com Source: Marketwire Canada (February 6, 2013 - 11:53 AM EST)

Gold Traders Trying To Sniff Out Stops In Low Volume

Gold remains range-bound, with short-term traders trying to sniff out stops in both directions, says Triland Metals. Stops are pre-placed orders triggered when the market hits certain chart levels. The Comex April futures closed up $5.30 to $1,678.30 an ounce but meandered in a narrow range of $11.70 that was within Tuesday's trading band. "The stop-loss hunting continues, with gold moving from downside stops to upside stops then back to the middle," Triland says. "The short-term range seems to be $1,660 to $1,685 and until that breaks significantly, the market looks set to continue sniffing out stops. Volume has been low."

Own Physical Gold & Silver As Currency Wars Will Destroy Our Money

Gold Silver Worlds | February 3, 2013 | This article is based on a Q&A with Andy Hoffman, marketing director at Miles Franklin, the largest bullion dealer in the US. The general macro economic outlook of Andy Hoffman is based on the expectation we will see “more of the same,” including more money printing, weaker economies, higher unemployment, social unrest … and importantly weaker currencies. With the Dow Jones index almost at all-time highs (14,009 closing price on February 1st) and the VIX indicator close to all time lows (12.90 on February 1st), weakness is not reflected in equity prices. Markets are not real; they no longer exist. Every market is manipulated to levels we have never seen before. Governments have always been buying bonds. Now they admit that they are buying stocks as well; they use the exchange stabilization fund to manipulate currencies. They have so thoroughly taken over the market that they have literally destroyed volatility. That is why the metals are the safest place to be. . This is clearly an artificial situation and cannot go on forever. These conditions have continued for much longer than expected. Andy Hoffman can hardly believe the slow motion pace at which conditions are deteriorating, saying “this will continue until it stops.” Case in point is the debt situation which went from arithmetic to parabolic growth. Somewhere it will stop; the point is nobody knows when and how exactly. The first signs of higher interest rates are there in the US and Japan, with the 10 year Treasury yield moving to 2% very recently. Governments will react with even more monetary easing (QE). Japan has just announced QE11. Similarly, for gold and silver, the key question is for how long paper gold and silver (in the form of futures and ETF’s) can control the price. It will be possible until physical demand will take over. Nobody knows how long exactly when it will happen and what the (final) trigger will be. However, one thing is clear: the longer this game goes on, the stronger the reaction afterwards. There you have one of the key reasons to own physical gold and silver. The danger of today’s fiat (promise) based currencies Miles Franklin believes people should prepare for the worst case scenario when it comes to their financial assets (money in the first place). Recent research has shown that 600 paper based currencies in recorded history have ALL failed, for different reasons. Physical gold and silver exist for 5,000 years and have preserved their purchasing power. Gold has preserved historically well the purchasing power of people. More importantly perhaps, in times of financial instability like today, it increases our purchasing power. The gain in purchasing power comes from the loss in value of the currency in which gold is denominated. In fact, the gold price increase is simply the RESULT of the decrease in value of the currency in which gold is denominated. Miles Franklin sees an increasing number of people who realize they better convert their money into gold and silver. Note the difference between converting money or investing money. It could seem a subtle difference, but it is a fundamental one: gold and silver are not an investment; it is another way of saving. Andy Hoffman points to the fact that people do not say they invested their money when putting it on their bank account. Likewise, converting money into gold and silver is not an investment, it is one of the ways to hold money. It is everyone’s choice to save in real money. . The global economic scene is focused on additional monetary easing and continuing currency debasement in order to inflate their debts away. Consequently gold is set to rise higher. Precious metals owners should be rewarded with much more than only preservation of purchasing power, assuming the continuation of the current trend. The US is the most indebted nation, worldwide and historically, with declining manufacturing and labor participation rates. The only thing that makes the US strong today is that the fact that so many nations own the dollar. Today’s monetary system is historically unique given that it is backed by nothing but a promise to pay the holders of banknotes back. That is what “fiat currencies” are: promise based currency backed by nothing tangible. This is the only time in history where ALL countries globally are living on a paper based (fiat based) currency system. What we know from history is that every single fiat currency in history has collapsed. Ultimately, all these fiat currencies disappear, each in its own way. Some people believe that the Yen is going to collapse and the US dollar will be fine. Andy Hoffman classifies this as a myth, being convinced that the dollar will collapse as well. The underlying belief at Miles Franklin is that today’s gold bull market is much stronger than the one in the 70’s. In particular, the scale today is much bigger. Andy Hoffman points to some obvious differences: •The 70’s gold bull market was primarily based on US centric issues. Today’s scale is global; international trades are huge between the US, China, Japan, Europe. •The past decade marked an explosion in derivatives which resulted in an extreme leverage in the economy. •The world came off a gold standard in 1971. There was almost no debt in the 70’s compared to today, neither in the US nor in Europe. So when inflation hit in the late 70’s it was possible to raise interest rates. Today, with 16 trillion dollars in outstanding official debt and some 70 trillion in unfunded liabilities, each percent rise in interest rates results in an additional 160 billion dollars cost of debt servicing. With all this “good economic news” coming out, QE is not really decreasing, making it impossible to move interest rates go up. •Debt based currencies are simply a Ponzi scheme: the only way to keep it going is to make it bigger. That “game” goes on until confidence is lost. We are 40 now years after the start of this big Ponzi scheme. The global currency war is starting a historic break out Miles Franklin’s blog reports on a daily basis how the economic situation is evolving. The blog posts are accessible. With trustful news and global events as the underlying source of information, one of the latest blog posts “The final currency war” is a must read. It shows how the global currency war has taken off more or less openly and officially. Japan’s latest announcement to increase their monetary stimuli and their commitment to debase their currency is potentially that last trigger for the global currency war to break out. Andy Hoffman points to the suppression techniques of central banks to massively attack gold and silver, aiming to hide the underlying state of the economy. Suppression is extremely obvious and happens in full daylight. When QE3 and QE4 were announced in the US, dollar gold surged but was hit substantially almost immediately. Andy says: “They are so terrified. Gold and silver are not allowed to break out. Still the metals are up 12 years in a row. An increasing number of people know what is going on. Since December 13th, the day QE4 was announced, Miles Franklin had extremely busy weeks; sales were literally on fire. So, the price drops should act to slow down or stop the massive buying. As a bullion dealer, we can only confirm the huge disconnect between the paper and the physical market.”

Bernanke's incredible level of monetary support hasn't managed to spark sustainable economic growth

Adding fuel to the fire that was the first quarterly decline in U.S. GDP since 2009, the Federal Reserve confirmed economic growth stopped toward the end of the last year. The Bernanke Fed also made it clear that it plans to continue its latest round of quantitative easing, in which it’s buying $85 billion in Treasuries and residential mortgage-backed securities a month, and that interest rates will remain at record lows until unemployment drops. The FOMC statement also revealed the specter of disinflation; stock markets initially fell. The Fed confirmed QE is here to stay on Wednesday as they wrapped up a two-day FOMC meeting. The institution headed by Ben Bernanke will continue to purchase $40 billion in RMBS and $45 billion in Treasuries a month if “the outlook for the labor market does not improve substantially.” A troubling line in the Fed’s latest FOMC statement indicates that economic growth has stalled, a fact confirmed by fourth quarter GDP numbers which showed a 0.1% contraction in output. After blaming Hurricane Sandy for the slowdown, the Fed also revealed creeping disinflation, noting “inflation has been running somewhat below the Committee’s longer-run objective [of 2% or a little lower].” Bernanke & Co. attributed this to “transitory factors,” pointing the finger at falling energy prices. Still, the Fed made it clear it is concerned over the state of the economy. While consumption and business investment advanced and housing markets appear to be recovering, the Fed noted “downside risks to the economic outlook.” The Fed stuck to the script, once again emphasizing its new, quantitative policy outlook. The federal funds rate will remain zero-bound until the unemployment rate drops below 6.5% and inflation doesn’t run above 2.5%. According to Swiss Re‘s chief economist, Kurt Karl, the unemployment rate will fall below the Fed’s threshold next year, meaning interest rates could rise as soon as mid-2014. As has been the case recently, Bernanke faced a lone dissenter in the FOMC. In this case, it was Kansas City Fed president Esther George, who warned of QE and record-low rates’ potential to spark runaway inflation. George was following in the footsteps of Thomas Hoenig, who used to head the Kansas City Fed and had dissented consistently with Bernanke. Market reaction to Wednesday’s FOMC statement was relatively muted, with all three major U.S. stock indexes sliding marginally in its aftermath. The yield on 10-year Treasuries initially moved up, but then fell all the way to 2% by 2:38 PM in New York. Shares in major banks like JPMorgan Chase, Bank of America, Citigroup mimicked the indexes in their tepid reactions to the statement, while gold price rose to $1,682.60 an ounce. From: Forbes