Fake Silver Is Flooding The Market

"If you have followed gold and silver market news over the past few years, it is likely you have seen various reports on fake gold and silver products.

In March 2012, a 1 kilo tungsten gold bar turned up in the United Kingdom.

Then in September 2012 there were reports on a slew of 10 oz tungsten gold bars bought and sold in New York's jewelry district.

The big problem with these news reports is that they have given little to no solution on how the public at large can avoid fake bullion products.

We would like to raise the general awareness of this issue both with our customers, our industry, and the general gold and silver investing public at large. With more than a year of hands on research, we have identified some of the biggest fake silver and gold counterfeit threats facing the investing public today.

This Special Report on the growing threat of fake silver and counterfeit gold products will arm you with solutions on how to best avoid being ripped off by sellers of phony bullion products."

- Source, Gold Silver:

www.goldsilver.com

China to Increase Gold Holdings

China has a way to go before catching developing countries in gold holdings per capita, sitting at just 5 grams versus 20 in developing countries.

Research from the China Gold Association shows that in April, Chinese bullion buyers made a good start buying 137 tonnes of gold, almost 100 per cent higher than the previous month.

The Association spokesman said that demand this year could reach 900 to 1,000 tonnes, although today's gold rout may see gold buyers in China tempted to pick up the pace of their purchases.

China is poised to pass India as the largest bullion consumer as early as this year after New Delhi raised import taxes and Beijing made investing easier, the Association said.

Also bullish for gold consumption, China approved its first two domestic exchange traded funds (ETF's) backed by the metal this month while India raised levies to curb demand that is feeding a current-account gap.

The two countries account for more than half of global demand.

The gold price fell US $73.50 to US $1,277.80 an ounce overnight in panicked selling.

Will Chinese bullion and gold jewellery buyers seize the opportunity to increase their holdings of the yellow metal in response to the large falls in price?

Based on recent evidence, the odds are better than not. Increasing their holdings will barely make a dent on their gold holdings per capita versus the average of developed countries. Time will tell.

- Source, Proactive Investors:

http://www.proactiveinvestors.com.hk/market_news/6936-will-chinese-gold-buyers-ratchet-up-their-holdings.html

The Chinese Gold Murders

Kyle Bass - The Next 18 Months Will Redefine Economic Orthodoxy For The West

Kyle Bass covers three critical topics in this excellent in-depth interview before turning to a very wide-ranging and interesting Q&A session. The topics he focuses on are Central bank expansion (with a mind-numbing array of awe-full numbers to explain just where the $10 trillion of freshly created money has gone), Japan's near-term outlook ("the next 18 months in Japan will redefine the economic orthodoxy of the West"), and most importantly since, as he notes, "we are investing in things that are propped up and somewhat made up,"the psychology of negative outcomes. The latter, Bass explains, is one of the most frequently discussed topics at his firm, as he points out that "denial" is extremely popular in the financial markets.

Simply put, Bass explains, we do not want to admit that there is this serious (potentially perilous) outcome that disallows the world to continue on the way it has, and that is why so many people, whether self-preserving or self-dealing, miss all the warning signs and get this wrong - "it's really important to understand that people do not want to come to the [quantitatively correct but potentially catastrophic] conclusion; and that's why things are priced the way they are in the marketplace."

2:40 Bass begins

- Source, Zero Hedge:

http://www.zerohedge.com/news/2013-06-18/kyle-bass-next-18-months-will-redefine-economic-orthodoxy-west

Boomerang: Travels in the New Third World

The Rational Market Myth

One of the myths of economics is that markets are rational. Theories are based on this assumption, and the belief that markets are rational fuels the argument against regulation. The market response to the Federal Reserve’s June 19 statement that it will taper off its bond purchases if its forecast comes true is unequivocal proof that markets are irrational.

The Federal Reserve’s statement that it “currently anticipates that it would be appropriate to moderate the monthly pace of purchases [of bonds] later this year” depends on a very big if. The if is the correctness of the Fed’s forecast of moderate economic growth and employment gains.

The Fed has not stopped purchasing $85 billion of bonds each month. So nothing real has changed. Indeed, there was no new information in the Fed’s statement. It has been known for some time that, according to the Fed, its bond purchases will gradually cease.

In response to this repeat of old information, the stock and bond markets sold off in a major way on June 19-20. This market response to the Fed’s statement indicates that the Fed’s forecast is unlikely to come true. Low interest rates and a high stock market are totally dependent on the liquidity that the Fed is injecting by printing $1,000 billion per year. If this liquidity is not injected, what will sustain the markets? If the markets crash and interest rates rise, how can the Fed expect recovery?

In other words, the participants in the stock and bond markets know that the markets are bubbles created by the printing press. There is no real basis for the high stock and bond prices. The prices are an artificial reality created by the printing press. Rational markets would take into account the printing press element and would price stocks and bonds at a much lower level.

- Source, Paul Craig Roberts, read the full post here:

paulcraigroberts.org

The Failure of Laissez Faire Capitalism and Economic Dissolution of the West

The Silver Bull Market is NOT Over Yet!

SNNLive spoke with David Morgan of The Morgan Report at Cambridge House International's World Resource Investment Conference 2013 in Vancouver, CA.

- Source, Cambridge House:

http://cambridgehouse.com/

Mixed Pre-1965 US Silver Coins

France Bans Shipment of Gold and Silver

In France, a new law that sending gold, silver and cash prohibits. Companies gold coins on sale and send by post can not exercise this new law work. Sites are also traders who are prevented by the new law. Operates like eBay.

In September 2011, the French government took all measures to limit. anonymous cash purchases of gold and silver Since then, every purchase of bullion with a value of more than € 450 per bank transfer happen. With the new law since June 1 this year in force is also sending by post of banknotes and precious metals restricted.

The new legislation can be found on this website , where under Chapter I, the following Article D1 of the universal postal service and the postal service obligations is:

"L'insertion the billets de banque, the pièces et de metaux precieux est interdite dans les envois postaux, y compris dans les envois à valeur déclarée, lesson envois recommandes et les envois faisant l'objet de leur formalités attestant dépôt et leur distribution. "

Loosely translated the law says that inserting banknotes, coins and precious metals is prohibited in mail. That includes insured and registered mail shipments.

- Source, Market Update:

http://www.marketupdate.nl/nieuws/goud-en-zilvermarkt/frankrijk-verbiedt-verzending-van-goud-en-zilver-via-de-post/

1 Oz Copper Chinese Year of the Dragon

Gold Sales Prohibited by Central Bank of India

Two weeks ago, with its current account getting crushed by relentless gold imports, India's finance minister Chidambaram literally begged the people to stop buying gold. Judging by the popular response, the ongoing physical shortage, and last night's increase in Indian gold import duties from 6% to 8%, appealing to people's feeling when it comes to the choice of fiat vs physical, has failed miserably. So the FinMin Chidambaram has decided to escalate. Per Reuters: "The Reserve Bank of India has advised banks against selling gold coins to retail customers, Finance Minister P. Chidambaram said on Thursday, a day after he raised gold import duty to try to ease pressure on India's bloated current account deficit." Well, if there ever was one sure way to send demand for any product through the roof (guns, ammo, etc), it is for the government to prohibit its outright sale. What follows next, almost without fail, is a panicked, chaotic buying scramble.

Gold imports by India, the world's biggest buyer of bullion, surged to 162 tonnes in May -- more than twice the monthly average in the record year of 2011.

"I think the Reserve Bank has advised banks that they should not sell gold coins," said Chidambaram, while speaking at an event in Mumbai.

Chidambaram also urged banks to advise their customers not to invest in gold.

Why? If it is not clear by now, here is the explanation: there is simply not enough gold to satisfy demand at the current artificially downward-manipulated price, no matter what propaganda script is being spun on Verizon TV at any given moment. And with India's idiotic decree, even more gold will be purchased at these prices.

Dear India - here is a simple way to limit demand: price.

Petition the central banks to allow gold to price based on price discovery, or as it is also known supply and demand. Because if gold were to cost $2000,$5000, $10,000/oz then all problems resulting from excess demand would immediately disappear and India's current account would be back to normal.

Of course this will not happen, as the crumbling facade of the imploding fiath based regime would immediately peel away. So back to gold capital controls and other ad hoc made-up measures guaranteed to not only fail but push the price of physical gold much higher.

Good luck.

- Source, Zero Hedge:

http://www.zerohedge.com/news/2013-06-06/india-central-bank-prohibits-sales-gold-coins

Wise Company 60 Serving Entrée Only Grab and Go Survival Food Kit

The Level of Physical Gold Being Traded is Shocking!

“Just look at what’s happening in the physical gold market. The LBMA reported record gold transactions in April, of plus 25%. This is the highest level since gold peaked in September of 2011. So physical trading is at the same level where it was when gold was at its peak at $1,900. That’s extraordinary. The level of physical gold trading is incredible. We are seeing the same activity now as when gold was at its peak. And it proves that all of the selling is in the paper market.

Remember, Eric, these were April figures. We have seen, and also refiners have seen much higher activity in May. So demand is even greater right now. I believe that we have seen the gold market finally turn to the upside, despite today’s pull back  It’s possible to see some consolidation before gold takes off, but the real move, when it starts and it won’t be far away, that will be massive.”

- Egon Von Greyerz via a recent King World News interview, read the full interview here:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/31_The_Current_Level_Of_Physical_Gold_Being_Traded_Is_Shocking.html

1944 Mercury Dime - 90% Silver

Bitcoin Vs Gold and Silver

We first celebrated Bitcoin Invading Mainstream Banking on January 11, then reported here on April 30 that Canada had tightened its grip on Bitcoin exchanges. In another article (with video from Mike), we posed the question: Could Bitcoin Eventually be the New World Currency?

The big deal over Bitcoin is our freedom of choice, because if digital options such as Bitcoin or U.S. dollars were equal in value as money to gold and silver, the owners of the systems wouldn't need laws to enforce a currency monopoly. Mike has already taken sides in this controversy, saying, "I'm for whatever the free market picks for currency."

Dr. Martenson agreed, wisely pointing out the ongoing "Cold War race between security professionals and hackers."

- Source, Gold Silver.com:

http://goldsilver.com/article/bitcoin-vs-gold-and-silver-mike-maloney-and-chris-martenson/

1942 Walking Liberty Half Dollar

Shortage Intensifies Gold Clients Being Denied Holdings

"Last week we had an investor being refused to take his physical gold out of a major Swiss bank. They told him that the regulatory authority prevented the bank from giving the client his physical gold. That is of course total nonsense, and eventually we helped the client to get his gold out of the bank.

Another of our clients was told by a major Swiss bank that he can only take out 100,000 Swiss francs of physical gold every six months. They blamed money laundering and terrorist activity for this decision. Yet another client was again told by a major Swiss bank that his storage fees would be going up substantially. When he complained he was told that he should convert to paper gold.

And finally, Eric, another big bank, which has an ETF, told a client who wanted to transfer gold out it that he would have to wait at least two weeks for the transfer. You just wonder why a major bank that is supposed to hold substantial amounts of physical gold needs two weeks of more to transfer gold to a client.

So all of this, Eric, points to the fact that there is a major shortage of physical gold in the banks. These banks obviously don’t want to lose customers, but their behaviour and the reluctance to deliver also points to a real shortage in the physical market."

- Egon Von Greyerz via a recent King World News Interview, read the full interview here:

http://www.kingworldnews.com/kingworldnews/King_World_News.html

Canary in the Coalmine Gold and Silver

"In general when equity prices are rising and credit spreads are tightening, the ratio of gold-to-silver prices falls as 'fear' ebbs away and confidence in a real economy returns as exemplified by the rise of risk assets. Twice before we have seen the anti-correlation of stocks and gold/silver flip to a highly correlated regime, and as Bloomberg's Chart of the Day notes, each time it suggested "stocks were due to snap". It seems a concerted push above and a 50x ratio (for gold-to-silver) tends to exhibit notably risk-off behaviour  Currently, the S&P 500 and Gold-to-Silver ratio have been highly correlated since this last rally began in stocks and as HSBC's Charles Morris notes, this suggests a 'snap' in risk assets within six months."

- Excerpt from a recent Zero Hedge article, read the full article here:

http://www.zerohedge.com/news/2013-05-21/goldsilver-canary-coalmine

Gold & Silver It Could Get Uglier

"The realistic general consensus is that the spot prices for gold and silver are no longer relevant. Yet, what remains the one price on which focus has intensified for each? There simply is no other alternative, at present. A distinction is made concerning the purchases by China, Russia, India, et al, paying a larger premium over spot gold, prior to the sell-off, and prices paid by those purchasing single ounce coins or even kilo bars, “the people,” as it were.

Purchases made by the tonne, from the countries mentioned, are not reported in a way that can be measured, and in fact, those purchases are not publicly reported. While the reports of unprecedented demand for both gold and silver on a world-wide basis in response to the attack on longs, last month, continues, we think the New World Order and its vast infrastructure, IMF, UN, Basel, central bankers, all governments in the West under its control, is not overly concerned about the man-on-the-street demand.

The next chapter has yet to be written. One thing is likely to be certain, it will get uglier."

- Excerpt from a recent Edge Trader Plus article, read the full article here:

http://edgetraderplus.com/market-commentaries/gold-and-silver-it-could-get-uglier-and-take-longer