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

Gold Pops Higher Following U.S. GDP Contraction; FOMC Awaited

From Kitco News Wednesday January 30, 2013 8:49 AM Gold prices are trading solidly higher and near the daily high Wednesday morning, in the immediate aftermath of a weaker-than-expected U.S. gross domestic product report. Some more short covering and bargain hunting buying interest are featured. The key outside markets are also in a bullish posture for the precious metals Wednesday morning, as the U.S. dollar index is lower and crude oil prices are higher. February gold last traded up $13.20 at $1,674.00 an ounce. Spot gold was last quoted up $2.30 at $1,666.75. March Comex silver last traded up $0.496 at $31.68 an ounce. Fourth-quarter U.S. GDP contracted by 0.1% on an annual basis. It is the first U.S. GDP decline in over three years. The market place was expecting the figure to be up 1.0%. The gold and silver markets popped higher immediately following the GDP report, on ideas the weak data will prompt the Federal Reserve to adhere to is very easy money policies presently in place. The two-day FOMC meeting ends Wednesday afternoon with its official policy statement to follow. Most market watchers expect the Fed to keep U.S. monetary policy unchanged—meaning continuing asset purchases and a very accommodative stance. However, traders will also be watching for any nuances that are included in the Fed statement, which could provide early clues on when the Fed will stop its asset purchases. European stocks were mostly near unchanged Wednesday, save for a weaker Italian stock market. Euro zone consumer sentiment continues to creep higher, according to the latest figures released from the European Commission Wednesday. The Euro currency continues to rally and hit a fresh 13-month high against the U.S. dollar amid better investor sentiment toward the European Union and its handling of its sovereign debt crisis. The U.S. dollar index is lower early Wednesday and hit a fresh five-week low overnight. The dollar bears hold the solid overall near-term technical advantage, which is an underlying supportive factor for the precious metals. Nymex crude oil futures prices are firmer early Wednesday and hit a fresh 4.5-month high overnight. The crude oil bulls still have upside near-term technical momentum and that, too, is a bullish underlying factor for the metals markets. It’s very possible that as Nymex crude oil prices approach the psychological level of $100.00 it would be a bullish development for the gold and silver markets as well as most other commodity markets. Crude oil is arguably the price leader of the raw commodity sector. Other U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the ADP national employment report, and the weekly DOE energy stocks report. The London A.M. gold fixing is $1,666.25 versus the previous London P.M. fixing of $1,663.50. Technically, February gold futures bulls and bears are on a level near-term technical playing field. Prices Wednesday did push back above the key 200-day moving average. The bulls’ next upside price breakout objective is closing prices above psychological resistance at $1,700.00. Bears' next near-term downside breakout price objective is closing prices below solid technical support at the January low of $1,626.00. First resistance is seen at $1,680.00 and then at $1,686.00. First support is seen at $1,670.00 and then at the overnight low of $1,661.80. March silver bulls and bears are also on a level near-term technical playing field. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at last week’s high of $32.485 an ounce. The next downside price breakout objective for the bears is closing prices below major psychological support at $30.00. First resistance is seen at the overnight high of $31.85 and then at $32.00. Next support is seen at $31.50 and then at the overnight low of $31.25.

All the Gold in the World

It is an amazing sight when visualized - This is all the gold mined in history....

Goldman Forecasts Gold Rally - 3 month target $1825

Gold may climb over the next three months as U.S. lawmakers attempt to tackle the country’s debt ceiling and the world’s largest economy slows, Goldman Sachs Group Inc. said, advising investors to place bets on advances. “We see current prices as a good entry point to re- establish fresh longs,” analysts Damien Courvalin and Alec Phillips wrote in a Jan. 18 report. The bank reiterated a three- month target of $1,825 an ounce, as well as a forecast for prices to weaken in the second half as the U.S. economy rebounds. Gold fell 5.5 percent last quarter, the worst performance since 2008, on expectations for a recovery and potential end to central bank stimulus in the U.S. An advance to $1,825 would be consistent with rallies into debt-ceiling decisions, the analysts wrote. Since 1960, Congress has raised or revised the debt limit 79 times, according to the Treasury Department. “The uncertainty associated with these issues, combined with our economists’ forecast for weak U.S. GDP growth in the first half of 2013 following the negative impact of higher taxes will push gold” to the three-month target, they wrote. Gold, which rallied for a 12th year in 2012, traded at $1,688.50 an ounce on the Comex at 5:40 p.m. in Singapore. Holdings in exchange-traded products reached a record last month, data compiled by Bloomberg show. Most-active prices last traded above $1,825 an ounce in September 2011. Borrowing Limit The Treasury has said the U.S. will exceed its $16.4 trillion borrowing authority sometime from mid-February to early March. Financing for government agencies is set to lapse March 27, and lawmakers must pass new spending or cause a shutdown. Also in March, Congress will confront the $110 billion in automatic spending cuts, half from defense, that were postponed in a Jan. 1 tax deal. Goldman restated its outlook for lower prices in the second half of this year, a call echoed by Credit Suisse Group AG and Allan Hochreiter(Pty) Ltd., as the U.S. recovers. As growth improves, prices will likely decline even with continued central bank and exchange-traded fund demand, Goldman said.

The Fed will Take 7 Years to Procure Germany's Gold

The biggest news of the day comes from the official Buba announcement that, in its official capacity as a prudent central bank, it - as first of many - is looking to repatriate some 300 tons of gold from the New York Fed. That, however, is not today's news - that was Monday's news. What is news is that courtesy of the supplied calendar of events in the Buba statement, it will take the Fed some seven years to procure Germany's 300 tons of gold. This is the same Fed that, in its own words, holds some "216 million troy ounces of gold" or some 6720 tons, in its vault 80 feet below ground level. Putting the above in perspective, the amount of gold that Germany will have to wait 7 years for is shown in red. The amount of gold the Fed supposedly holds, is shown in yellow with a shade of tungsten. Why it will take the Fed 7 years to part with an amount of gold that is less than 5% of its total holdings is anyone's guess... unless of course, the bulk of the gold in its holdings has been rehypothecated numerous times to serve as collateral for countless counterparties, and it is no longer clear just who own what to anyone.

Gold Prices Rise After Solid Economic Reports

NEW YORK (TheStreet) -- Gold prices were climbing Thursday, coming off early session lows after a round of U.S. economic indicators reported steady improvement in the housing and labor markets. Gold dropped 70 cents, or 0.04%, on Wednesday. Gold for February delivery was adding $4.30 to $1,687.50 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,689.70 and as low as $1,666.40 an ounce, while the spot price was adding $8.10. Gold prices on the Comex division slumped at the opening of the market, but have moved into positive territory in the first couple hours of trading. "Principally today, anyway, the better economic reports that came out of the U.S. helping the dollar, pushing down gold a little bit," said Will Rhind, managing director at ETF Securities U.S. "We've come off that low as people have stepped in to buy it." The U.S. dollar index was sliding 0.14% to $79.70, while silver prices for March delivery were tacking on 15 cents to $31.70 an ounce. Housing starts rose in December to 954,000 on a seasonally adjusted annual rate, up from November's revised 851,000, according to the Census Bureau. The Labor Department reported that initial jobless claims for the week ended Jan. 12 decreased to 335,000, which also brought the four-week moving average down to 359,250. The improving housing market has suggested greater health in the overall economy, which would suggest a move out of gold -- a safe-haven against inflation and economic uncertainty -- and into other assets. Employment reports have exhibited significant sway on the yellow metal as the Federal Reserve has tied much of its monetary policy to strength in the labor market. The Fed has reiterated its commitment to continue low federal funds rates and quantitative easing measures for as long as the labor situation exhibits soft improvement. Gold has struggled to break out of its current trading range, which may be a result of major economies -- the eurozone, China, the United States -- beginning to reach some certainty in terms of expansion.

Gold Stocks to Surge upto 90% This Year....

Gold will surge to new highs this year, a push upward that will cause a big rally in the depressed shares of precious metals miners, says John Hathaway, portfolio manager at New-York based Tocqueville gold fund. How good might it get for gold miners? Pretty stupendous, in his view. Mr. Hathaway believes that when gold starts to trade sustainably above the $2,000 U.S an ounce level, shares could run up by 60 per cent to 90 per cent. Read the full article here

Light at the End of the Tunnel for Gold

...With governments lacking courage for fiscal discipline, I expect that interest rates will remain in negative territory for a long time. Central bankers will continue to keep the printing presses warm as policies aren’t expected to change. I believe this will keep the Fear Trade buying gold throughout 2013. In addition, emerging market central banks have been diversifying into gold. Net official sector purchases of 425 tons year-to-date is a drastic difference compared to only a few years ago when central banks were net sellers of the precious metal. Only recently, UBS reported that in November, Russia purchased nearly 3 tons of gold and Brazil bought almost 15 tons. Iraq—a notable new buyer—bought 25 tons from August through October. Given that this is the country’s first increase since the early 2000s, “having a new buyer in the central bank space and especially from a new region is an important development,” says UBS. While the Love Trade has been subdued this year, we see light at the end of the tunnel, not a train. One recent development is the increase in mutual fund flows of $32 billion into emerging markets since the announcement of the third round of quantitative easing (QE) in the U.S. This appears to be a powerful precursor for a stronger 2013, which would reignite the Love Trade in China and India. To see the full article click here

Gold Bullion Receives Positive Preliminary Economic Assessment for Granada, Proceeding to Preliminary Feasibility Study

Gold Bullion Receives Positive Preliminary Economic Assessment for Granada, Proceeding to Preliminary Feasibility Study VANCOUVER, Dec. 21, 2012 /CNW/ - Gold Bullion Development Corp. (TSX.V: GBB) (OTCPINK: GBBFF) (the "Company" or "Gold Bullion") is pleased to announce the first economic estimates for its Granada gold property located on the prolific Cadillac trend in northwestern Quebec, 5 km south of the city of Rouyn-Noranda. The proposed combination of an open pit and underground operation has the potential to move Gold Bullion into gold production at the approximate rate of 102,000 ounces of gold per year. The Preliminary Economic Assessment (PEA) was prepared by SGS Canada Inc. - SGS Geostat business unit. The PEA is based on the measured, indicated and inferred gold resource estimation provided by SGS Geostat that was press released on November 15th 2012 in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects as defined by "NI 43-101" regulations. PEA highlights are summarized below: Assumptions Gold Price (US$/oz) - 3 years trailing average 1,470 Canadian $ to US$ rate 1.0:1.0 Mineral Resources (recovered ounces) Underground Resources (1) 387,000 Open pit Resources (2) 739,000 Mine Parameters Mill feed coming from underground mine (tonnes per day) 1,000 Mill feed coming from open-pit mine (tonnes per day) 6,500 Combined mill feed (tonnes per day) 7,500 Mine plan tonnage (tonnes) 26,400,000 Underground Mine plan mill feed grade (grams/tonne) 3.51 Open-pit Mine plan mill feed grade (grams/tonne) 1.07 Open-pit waste-to-ore ratio 5.91 Estimated gold recovery (%) 94.10 Total gold recovered (ounces) 1,126,000 Pre-production period (years) 2.00 Mine life (years) 11.00 Average annual gold production (ounces) 102,000 Costs Pre-production capital ($) 259,000,000 Average Underground cash cost per ounce (US$/oz) 1,205 Average Open-pit cash cost per ounce (US$/oz) 985 Financial Return Payback from start of production (years) 6.80 Internal Rate of Return (before tax) 10.4% Net present value, pre tax, 5.5% discount ($ disc.) 74,300,000 (All dollar figures expressed in Canadian dollars, except where indicated) Resource category Tonnes Grade (g/t) U/G(1) Measured 18,000 2.79 Indicated 1,018,000 3.74 Inferred 2,635,000 3.42 Open-pit(2) Measured 20,485,000 1.05 Indicated 2,178,000 1.27 Inferred 112,000 0.78 Note: The above chart is presenting the resource as diluted material, mineral resources that are not mineral reserves and do not have demonstrated economic viability. At the prevailing gold price on December 19th, 2012 of US$1,650 per ounce and a Canadian to U.S. dollar exchange rate of 1.00, Gold Bullion has determined that the pre-tax NPV increases to $217.8 million at a 5.50% discount rate while pre-tax IRR increases to 18.8% with payback time reduced to 4.8 years (using the same mine plan). The study was prepared as a stand-alone project, relating solely to the mineral resources deposit at Granada, and accordingly does not take into account the previously outlined potential at depth disclosed on November 26th, 2012 since it is not mineral resources. Additional work is therefore required to convert the portion of potential into mineral resources. The Scoping Study mentioned herein is a preliminary evaluation inclusive of inferred mineral resources that are too geologically speculative to infer economical considerations that would classify them into mineral reserves. It is therefore uncertain that this preliminary evaluation results in the expected outcome. The complete technical report will be filed on the Company's website (www.GoldBullionDevelopmentCorp.com) and on SEDAR (www.sedar.com) in the next 45 days. "We are very pleased to release the Preliminary Economic Assessment study on the Granada gold deposit" stated Frank J. Basa, P. Eng., President and Chief Executive Officer. "Due to the dedication and diligence of Gold Bullion's technical team and consultants, we have been able to deliver this study within just four years of developing the property and are proud to see Gold Bullion progress as a potential emerging producer of gold in the near term, creating shareholder value through successful exploration and development while continuing to seek out other worthwhile opportunities for growth." The delivery of the Scoping (PEA) Study completes the first stage of Gold Bullion's Continuous Development Program at Granada, aimed at advancing the Granada Project to commercial production, by demonstrating an economic, environmental and social gain, while simultaneously mitigating the technical, financial, and environmental risks of the Project. As mineral resources could be affected by permitting and social acceptance issues, Gold Bullion plans to hold meetings with various stakeholder groups prior to the completion of the Pre-Feasibility Study and will either be incorporating those views and recommendations into the study or retaining as recommendations to be addressed in the possible final Feasibility Study. Claude Duplessis, Eng., Gaston Gagnon, Eng. and Jonathan Gagné, Eng. are acting as the qualified persons (QP) for Gold Bullion Development Corp. in compliance with National Instrument 43-101 and have reviewed the technical contents of this press release. 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 the 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 (December 21, 2012 - 10:20 AM EST)

How Gold Miners Can Leverage the Price of Gold

...The upside to gold stocks is that investors historically have received a 2-to-1 leverage by owning gold equities instead of the commodity... ...We believe that effective management can help miners gain more leverage over the metal for their shareholders. Picture the gold price as a pulley with gold company executives applying force on one side of a rope. The more disciplined and successful the management, the bigger the potential boost in gold equity returns. The muscle that gold miners can use to increase their “multiplier effect” for shareholders is three-fold: grow production volume, expand margins or optimize capital, you want to keep showing that you can increase the return on the mine and that you can increase the cash flow available for shareholders at a particular gold price... full article here

India to promote 'Paper Gold' to curb climbing imports

Asia's third largest economy India is trying everything now to stop excessive gold imports, accounted for the high current account deficit of the country. More and more gold based schemes were being planned by government to encourage investors to join schemes without investing in the physical commodity. According to India's Mid-Year Economic Analysis tabled in Parliament Monday, gold-backed products will help the investor enjoy benefits of investment in the metal without investing in the physical commodity. India is considering schemes like gold deposits, accumulation plans, gold-linked accounts and pension products to curb demand for the precious metal. The report said "Now gold backed financial instruments in the form of modified gold deposits and gold accumulation plans, besides gold-linked accounts and pension products linked with the precious metal are some measures being considered to reduce the attraction of a direct investment in bullion and jewellery in the domestic market and check a substantial rise in imports," However, gold-linked investments would have to be monitored to see whether the overall demand for the metal actually falls, it added. The Finance Ministry's Chief Economic Advisor Raghuram Rajan told reporters: "We are worried about gold imports. It is an unproductive instrument. The way to curb holding of gold is to create more attractive financial instruments. "Some gold linked instruments have been talked about by the RBI but potentially there could be other financial instruments to attract investment." Thecurrent account deficit(CAD), which occurs when a country's total imports are greater than total exports, has been rising on the back of record trade deficits, which in October jumped to a 12-year high of $ 21 billion on the back of rising oil and gold imports. The Reserve Bank has unveiled a slew of curbs on gold purchase and financing as imports touched a record high last year, pushing up the current account deficit to a historic high of 4.2 per cent in the year. In the 2011-12 fiscal, India's gold imports stood at $ 60 billion and the quantum of import was 1,067 tonnes. A Finance Ministry official said the imports have shown signs of moderation and that gives the government hope that the CAD will be lower this fiscal. The current account deficit (CAD), which occurs when a country's total imports are greater than total exports, has been rising on the back of record trade deficits, which in October jumped to a 12-year high of USD 21 billion on the back of rising oil and gold imports. In the April-June quarter of the current fiscal, however, gold imports had contracted by 18.4 per cent year-on-year to Rs 71,912 crore ($ 13 billion). Gold imports into the country has risen considerably in the last three-four years. View article here

The Fed — And The Best Time To Buy Gold…

Sometimes you don’t have to drop a quarter to see the monkey dance. Yesterday’s announcement from Federal Reserve Chairman Ben Bernanke caught us all off guard. Instead of the ho-hum, “we’re going to keep buying bonds for infinity” – we actually got a rather strange, out-of-the-blue declaration. Today I want to take a look at the details (in as quick a manner as possible) and see what this means for our economy, our currency and, of course, our old pal gold. With gold, I also want to share the perfect time to buy… But first, let’s analyze the Fed’s latest dance. In short, the Fed will continue its monthly asset purchase totaling $85 billion (a combo of bond purchases and mortgage-backed security purchases.) But here’s the kicker, the Fed will continue its monetary monkeyshines until “the unemployment rate remains above 6-1/2 percent, inflation between one and two years ahead is projected to be no more than a half percentage point above the Committee’s 2 percent longer-run goal, and longer-term inflation expectations continue to be well anchored.” Ha! We traded one arbitrary, wand-waving set of monetary policy in for another. You and I would be hard-pressed to figure out which made-up government statistic we should follow – in other words, whose word is more reliable, the Fed number-crunchers that make whimsical monetary judgments, or the BLS number-crunchers that change the rules to the unemployment and inflation calculations at will? Either way, dear reader, you me and the monkey are stuck using the same paper dollars. Paper which, I don’t need to remind you, continually loses its purchasing power. Dollars in your pocket not buying what they used to? Let’s discuss… The World Is Catching On: U.S. Cash Is Cheap With each turn of the calendar month, the U.S. dollar loses its value. That is, with more stimulus hitting the market – to the tune of $85 billion a month – there are more dollars flooding the market. With more dollars hitting the market, each dollar loses its par value. I see this….you see this…and you better believe dollar-holders, like China, see it. Indeed, China is getting increasingly antsy when it comes to their large stash of U.S. dollars. And unless you’ve been hiding under a rock, you know that China has been doing whatever it can to diversify out of the dollar. You name it, China buys it. Energy resources like oil, coal and natural gas – to keep the houses heated, the lights on and the vehicle wheels spinning. China also buys building-block resources like iron ore and copper. Heck, China buys so many of these resources that it builds towns that no one lives in! [If you get a chance google “china ghost town” and you’ll see what I mean.] China is also in the sneaky business of hording precious metals. With the writing on the wall about the U.S. dollar – and Ben Bernanke re-emphasizing that text with every announcement – China looks to gold to preserve its purchase power. But China isn’t the only kid on the block doing this. It’s a global, precious metal trend that you’ll want to keep an eye on. Indeed, a lot of other emerging market players are, well, emerging in the gold market. Nations like South Korea, the Philippines, Kazakhstan, Ukraine – along with big players Brazil, Russia and India – have been ramping up gold purchases. In fact, according to the World Gold Council, central banks for the first three quarters of the year purchased over 370 tons of gold. With a little boost in the year end numbers we could see purchases totaling over 500 tons in 2012. That’s a lot of central bank buying, up over 10% from last year. Listening to what we squawk about here day-to-day, you’ll see that this central bank action portends the larger trend of wealth protection. Many emerging markets use the U.S. dollar as their de facto reserve (they don’t call the U.S. dollar the world reserve currency for nothing, eh?) So in an attempt to protect their nations purchase power, emerging markets are loading up on the de facto wealth protector: gold! Gold Protects Wealth – When Should You Buy It? The central bank buying spree portends a larger trend, which we squawk about here often: to protect your wealth with gold. Stated simply: you can’t print gold. So when Ben Bernanke and the Fed reduce the value of the dollar by printing as many billions as they choose, you can rest assure that they (or anyone) can’t create gold out of thin air. That’s why gold and silver, as a currency, have withstood the test of time. After all, gold is “the once and future money!” So is now the time to load up the truck? Well, instead of just running out and grabbing gold with both hands, we should take a detailed look at the best places to buy gold. View the article here

How Average Joe can save himself…and America

Jan Skoyles takes a look at how the decision to buy gold bullion and considering gold investment might be the best way for citizens of the US and UK to protest against politically motivated economic decisions which ultimately they bear the brunt of. Joe Biden went to Costco to fight for them. Obama visited a toy factory to speak out in support of them and House Minority Whip Steny Hoyer referred to them as hostages, kidnapped by the Republicans’ demands. Who am I talking about? The middle-classes. It seems they can’t fight their own battles anymore and instead represent a much favoured toy in this fiscal tug-of-war. Why are they being fought over? Because they’re the 90% who will suffer if the 1 Jan tax increases are allowed to go ahead. They’re the ones with the most to lose; too rich to sit in the governments’ cotton-wool cradle, but too poor to flee the country when it all goes kaput. They’re sitting ducks, who haven’t quite clicked onto who and what really caused the financial crisis. They suffered the most in the financial crisis, thanks to the housing crisis and high levels of personal debt. Between 2001 and 2007, according to a study by Edward N. Wolff, the middle classes owed 61 cents for each dollar of their wealth, a 50% increase from 2001. Yet they still believe in the American Dream, fed to them straight from Washington. They’re following a dream sold to them long before they were born, believing they can better themselves and their democratic country and elected government will help them do it. But this is rarely the case now. A recent study, by Wolff, found between 2007 and 2010 the median net worth of U.S. households fell by 47% i.e. their wealth went ‘poof!’ and disappeared. Even when incomes appear to be increasing, this is rarely the case in practice. Not only has the value of their possessions also gone AWOL but, as the most recent US census found real incomes remain the same as they were in the early 1970s. When the middle classes do eventually realise that the American Dream has moved nowhere since the 1970s and how much the government have been creaming off them in the longest daylight robbery ever seen, will they revolt? The chances are pretty slim I suspect. Every day I sit and discuss with people why more people aren’t getting really angry about what’s going on – the theft of savings, income and living standards declining. Is it because they haven’t realised yet or because they’re sheeple? Just following whoever’s barking the loudest and not making them think on their own. ..or worse, lying to them. Here in the UK, a recent survey showed 94% of those polled believed the UK government were working hard to slash the debt. They’re not, they’re increasing it. When it comes to the fiscal cliff in the US– we all know what‘s going to happen – a compromise. Everyone will compromise. Everyone that is except the people who are actually affected by it. They’ll just continue taking the beating they’ve been getting for the past few years, and why not? As Bill Bonner explained the other day – the further governments go, the further the voters expect them to go. But what happens when the government can’t go any further, what then? We can now see a near-global perspective when it comes to dealing with this crisis: fake it and print it. This is unlikely to change in the foreseeable future. In every election in the socialist Western world, the middle classes appear torn over the desire to protect themselves and the need to provide a safety net for those who have less than themselves and are really suffering right now. Someone needs to remind everyone around today that the ability to look after oneself and your sovereignty is a precious commodity, and one which is being rapidly lost and devalued by those who no longer care for it. I’m convinced however that once the middle-classes wake-up and realise the daylight robbery which is happening in front of their very eyes, they will be a formidable force. In the 1923 book The Irresistible Movement of Democracy, Jeremy Bentham’s work to educate the middle-classes during a campaign for parliamentary reform, is described. ‘[Bentham] instituted a school of thought and criticism which aimed to awaken the middle and intellectual classes to the need of reform. It taught the middle-classes that good government rests upon the basis of the sovereignty of the people.’ History shows that great change comes about when the people, those middle classes, rally together to educate themselves and campaign against government. Stop the Duke, Go for Gold! Is a story John Butler, of Amphora Capital, told me a while back which has played on my mind ever since. It’s a story of middle-classes fighting back at politicians, their weapon? Gold. In protest to the Duke of Wellington’s overturning of a majority Parliament (on the King’s orders), a campaign was started by the middle classes in May 1832, after a long and hard-fought fight against the Duke. Posters appeared overnight in the middle of London calling for people to ‘Stop the Duke! Go for Gold!’ in response the people drew $1.5 million in gold from the Bank of England. In June 1832 the Reform Bill received Royal Assent, the people had won. They had won by taking their money – gold – out of the hands of those who were abusing their sovereignty. Like all successful strategies, this can easily be replicated today. As is often said on this site, gold investment is not only your way of protecting your wealth from government policies but also from those who decide you no longer have the right to decide what happens to your money. Just over 70% of the American people hold savings accounts, so over two-thirds of the population are losing money thanks to negative real interest rates. It also means over two-thirds of the Americans are helping to prop up the US banking system – which in turn is supported by the Federal Reserve who are printing away not giving a thought to the US people’s savings and standards of living. The Occupy movement, whilst well intentioned will not work. Intelligent, covert protest by the middle-classes is what will make our governments sit up and pay attention. It’s our job to now tell people that good government rests on our own sovereignty and the most effective way to protest is to buy gold. Here is the link

The Gold Market Seen Through a Glass Darkly

...In December 2012, it is clear the bankers drew a ‘line in the sand’ in September 2011 to prevent another rapid ascent in the price of gold. To some, this ‘line in the sand’ presents a major barrier to gold’s advance. But, in reality, the bankers’ line in the sand represents the bankers’ desperate last ditch attempt to prevent the inevitable from happening. The systemic distress that drove gold’s 27 % rise between July and September to $1900 has not abated although the lower price of gold would imply otherwise. The present price of gold below $1800 is due solely to central bank emergency measures to contain the price of gold and China’s reluctance to let gold rise too far too fast before China can buy as much gold as possible before the next economic crisis. 2013: GOLD WAITS FOR THE END OF THE BANKERS’ CONFIDENCE GAME Speculation abounds as to the trigger event that will set off gold’s vertical ascent. It could be the collapse of the global derivatives market or a credit event such as Credit-Anstalt’s collapse in 1931, the Austrian bank owned by the Rothschilds or perhaps Japan’s inevitable descent into the deflationary conflagration it has resisted since 1990. It could be any number of events or causes. It could be triggered by a black swan event, a geopolitical crisis or a natural disaster on the level of the earthquake that struck off the coast of Japan in March 2011. Whatever the trigger, in the end the banker’s 300 hundred year-old con game will collapse from a simple lack of confidence. Read the full article here