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

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

Rainbow Resources acquires Graphite properties

Rainbow Secures Strategic Position in Slocan Valley Flake Graphite Region

(via Thenewswire.ca)
GOLD VIKING DRILLING PREPARATIONS UNDERWAY
TORONTO, ONTARIO, May 17, 2012 -- Rainbow Resources Inc. (TSX VENTURE: RBW) ("Rainbow" or the "Company") is pleased to report that it has acquired, through staking, a strategic land position consisting of two claim blocks covering over 40 square kilometres in the heart of the Valhalla high-grade Metamorphic Complex (see attached map). This under-explored area in the Slocan Mining Division of southeast British Columbia, west and south of the Company's flagship Big Strike Gold-Silver Project, hosts the only producing natural flake graphite mine in western North America. The mine is operated by privately-held Eagle Graphite Corporation which has recently added to its large claim holdings in the Valhalla region.
Prospecting has already commenced on Rainbow's graphite claims in conjunction with prospecting on nearby Big Strike areas. Rainbow is also in possession of historical airborne survey information which will be of immense help in exploration of the graphite claims.
"From Eagle Graphite's potential world-class deposit, 21 km due west of our soon-to-be-drilled Gold Viking Property where we have numerous gold and silver targets, flake graphite occurrences have been reported over a broad area stretching nearly 30 km north-south," stated Rainbow President David W. Johnston. "It appears that this part of the West Kootenay region has undergone some very unique geological processes that have created extremely favourable conditions for high quality, near-surface flake graphite. The host rocks are ideal. There is strong potential for additional flake graphite deposits throughout this area, and Eagle Graphite's processing plant is already in place.
"Rainbow has the boots on the ground and the right geological team to take advantage of this graphite opportunity very close to our flagship Big Strike Gold-Silver Project where our near-term focus is on advancing several key holdings - past high-grade producers that have never been previously drilled," continued Johnston. "The strategic steps we've just taken have further solidified our position as an exploration leader in the Slocan Valley-
West Kootenay region with excellent opportunities for significant gold, silver and graphite discoveries."
Rainbow Graphite Claim Block #1
Rainbow holds a strategic 12.5-km-long claim block, totalling 2,100 hectares, beginning 5 km northeast of Eagle Graphite's mill site (14 km southeast of the mine site) and immediately north of Anglo-Swiss Resources' Blu Starr Property. Anglo-Swiss reported May 9, 2012, that up to 15% graphite has been mapped in outcrop over the northern part of Blu Starr and appears to be associated with a 3-km-long electromagnetic (EM) anomaly identified in an airborne geophysical survey completed in 2010. Less than 25% of the property was covered by the airborne survey.
Rainbow Graphite Claim Block #2
Rainbow holds another strategic claim block, 9-km-wide and also totalling 2,100 hectares, contiguous to the southern boundary of the Blu Starr Property.
Gold Viking and International Property Updates
Ground conditions are now favourable for drilling and initial site preparations are underway for a first-ever drill program at Rainbow's highly prospective Gold Viking Property adjacent to the Village of Slocan. Gold Viking, one of several Big Strike Project properties that Rainbow will be focusing on over the coming months, is part of the same geological system as the contiguous Ottawa Mines which produced 1.8 million ounces of silver in the 1900's at an average grade of 2,113 g/t or 61.6 ounces per ton.
Rainbow's Gold Viking and Ottawa properties have never been previously drilled despite historical high-grade production from both. A total of nine drill sites have been proposed for the north side of Springer Creek at Gold Viking to test coincident strong airborne conductors and soil geochemical anomalies across the central portion of the property where a geological contact for silver and gold mineralization trends in a north to northwesterly direction. Each of the drill sites will allow for multiple holes to be completed. Drilling will commence immediately upon receipt of permits.
Rainbow has also staked an additional 60 hectares to extend the western boundary of the Gold Viking Property which is situated at the eastern extremity of the Valhalla Metamorphic Complex, 21 km due east of Eagle Graphite's deposit. Eagle Graphite holds claims contiguous to the southwest portion of Gold Viking.
Ground conditions are gradually improving at Rainbow's International Silver Property, 70 km north of Gold Viking, where upcoming drilling will explore a potentially rich vein system dominated by quartz with irregular massive sulphide bodies of galena, pyrite and sphalerite that could extend near-surface for several kilometres.
Qualified Person
Rainbow's disclosure of a technical or scientific nature in this news release has been reviewed and approved by Mr. Jim Decker, P.Eng., a Director of Rainbow Resources, who serves as a Qualified Person under the definition of National Instrument 43-101.
Rainbow's shares are listed for trading on the TSX Venture Exchange under the symbol
RBW.V. Rainbow currently has 33,923,163 common shares issued and outstanding.
For further information: President David W. Johnston - (403) 701-2781.

GOLD & SILVER CRITICALLY OVERSOLD ON STRONG SUPPORT, DOLLAR OVERSTRETCHED...

From Clive Maund:

“Gold and silver now critically oversold at strong support, dollar overstretched…
Please be aware that we could see a really big bounce in Gold and Silver here, and possibly an important reversal…Gold and silver are right at strong support at their September lows, and critically oversold short-term as shown by their RSI indicators…the Dollar is showing signs that it is about to react after an incredible 13 up days in a row (trading days), with a very large white candle appearing on its chart on Tuesday, followed by a candle that approximates to a bearish “hanging man” – it is critically overbought on its RSI so its certainly a good time for it to take a breather…the “talking heads” on the major financial networks were starting to grudgingly acknowledge the possibility of QE coming to the rescue of the world economy, and it is quite clear that the moment the markets get the scent of the spigots being opened we could see a humongous rally, especially in the trampled down commodities sector…
Right now we are heading towards deflation – this is why the markets are going cold turkey…they are clamouring for another fix – everything now depends on how long our illustrious leaders can hold out before caving in to their demands…we must watch carefully for the first real signs of them doing so, this will be the point the tide turns…the charts suggest that there is a possibility of this occurring very soon”

You can subscribe (for a fee) to see the full article and all of Clive Maund's technical analysis here:
http://www.clivemaund.com/

Gold Stocks Ready to Bounce?

Quite an interesting evaluation on the disparity between Gold and Gold Stocks.

Their time may be coming.

"The opportunity is just too good to pass up. The last time these particular conditions came together, gold stocks rallied 121% in 12 months. "

Check it out:
http://www.stockhouse.com/columnists/2012/feb/14/gold-stocks--next-121--rally-starts-today

Warren Buffett: gold has no value -Gold Bug: Warren Buffet has no value!

From the Telegraph UK:

Billionaire investor Warren Buffett has dismissed gold as a valueless asset saying that it has no inherent value. In an article for Fortune magazine, Buffett said that gold investors were pining their hopes on future demand.

He warned that gold was a self-inflating bubble, created by investors desperate for a viable alternative to property and shares.

The infamous investor warned that investors in gold would be left with egg on their face when the price eventually crashed.

"Bubbles blown large enough inevitably pop," he said. "And then the old proverb is confirmed once again: "What the wise man does in the beginning, the fool does in the end."

Buffett's attack comes as private bank Coutts predicts that the gold price will hit "new highs" by the end of 2012.


Personally this is one bet I'd love to make with Buffet - I'll bet my pennies for his billions that he's wrong on this one!




See the full article here:

http://www.telegraph.co.uk/finance/personalfinance/investing/gold/9074670/Warren-Buffett-gold-has-no-value.html

Gold Rises to 7-Week High as Dollar Alternative

Gold futures rose to a seven-week high as the Federal Reserve’s pledge to keep U.S. borrowing costs low drove the dollar down, boosting demand for precious metals as alternative assets. Silver jumped to a two-month high.

The greenback fell to a six-week low against a basket of currencies. Yesterday, the Fed said that its benchmark interest rate will stay low until at least late 2014, and gold surged 2.1 percent, the most in three weeks.

The central bank’s statement “was very bullish for gold,” David Meger, the director of metal trading at Vision Financial Markets in Chicago, said in a telephone interview. “The weakness in the dollar is also helping gold.”

Gold futures for April delivery gained 1.7 percent to $1,731.50 an ounce at 10:15 a.m. on the Comex in New York. Earlier, the metal reached $1,734.50, the highest for a most- active contract since Dec. 8.

The price may “test” $1,800 next week, said Ong Yi Ling, an investment analyst at Phillip Futures Pte in Singapore.

Silver futures for March delivery climbed 1.5 percent to $33.62 an ounce on the Comex. Earlier, the metal reached $33.79, the highest since Nov. 17.

See article here:
http://www.bloomberg.com/news/2012-01-26/gold-rises-to-7-week-high-as-dollar-alternative.html

India and Iran Trade Gold for Oil!

It begins!

Very interesting development. There is apparently a deal that has happened where two banks have made an agreement to use gold instead of dollars to trade in oil. The banks reportedly involved in this deal are India’s state owned UCO Bank and Turkey’s state owned Halkbank.

This is another sign that we are heading to a Gold Standard.

You can see the full article here:

http://www.forexcrunch.com/gold-for-oil-india-and-iran-ditch-dollar-report/

Top 20 Mining Picks - Caesars Report

Caesarsreport has released its Top 20 Mining picks for 2012, looks like a few winners in there. I am quite bullish on #13, Gold Bullion Development (GBB.V) and have picked up 200,000 shares. we'll see how she does.

Caesarsreport is a highly respected information and research provider specializing in junior mining companies.

You can see their website here http://www.caesarsreport.com/

You can link to the free report here:

http://www.caesarsreport.com/freereports/CaesarsReport_MiningTop25_2012.pdf

Is this the Next Gold Buying Opportunity?

Interesting article from Thomas Paterson.

There have been 3 great gold buying opportunities in the past 3 years… is/was that the 4th?

Read it here:
http://www.goldmadesimplenews.com/gold/there-have-been-3-great-gold-buying-opportunities-in-the-past-3-years-iswas-that-the-4th-5959/

Demand For Gold Likely to Rise in China in 2012

...Chinese wealth, in short, is going to gold, and coupled with households' fear of inflation, this new debate over actively devaluing the currency means Gold Investment demand is only likely to rise again....

See the full article here

http://goldnews.bullionvault.com/china_gold_011220111

The Financial System is a Farce

Interesting read from Sprott Management. The thing to take away is simply keep, and add to, your gold, silver and precious metals. You'll need em!

As the article says "We will maintain our exposure to precious metals equities and bullion"

You can read the full article here:

http://www.sprott.com/Docs/MarketsataGlance/2012/January-2012.pdf

Nicaragua goes back to gold

Record prices for gold have led to an influx of foreign investors and the reactivation of Nicaragua’s long-dormant mining industry. Annual gold production has more than doubled in just the past three years. Gold is now the country’s No. 3 export and has helped Nicaragua post the highest economic growth rate in Central America.

You can see the full article here:

http://www.globalpost.com/dispatch/news/regions/americas/120104/nicaragua-gold-mining-boom-is-back