Markets in Worry Mode; Another Long Term Bullish Factor for Gold; The MF Global Injustice
Weak earnings, Moody’s downgrade of Catalonia (still apparently a part of Spain) and a time line introduced by the New York Times for Bernanke’s eventual departure in from the Fed in 2014 have created some negative stir in the market of stocks. I am sure my regular readers are prepared for come what may, including higher volatility and the potential for flashy crashy-ness in the stock market. The Price of gold is moving opposite of a firmer dollar, meaning gold is down $15 to $1711.
Junes for a little fun…
Mr. Gold, Jim Sinclair, is bullish long term on gold as am I: “There is another change coming which is a replacement monetary system and the need for some asset on central bank’s balance sheets to have positive value, especially in the USA. Soon all that is required is a change in spread management by the gold banks and you will have whatever price the gold banks want from $3,500 to $12,400.”
Read more here: Change in spread management by bullion banks will send gold prices to $3,500-12,400 says Jim Sinclair http://shar.es/c5ANY via @sharethis
More on Gold: FLASH: German gold report reveals secret sales that likely were part of swaps | Gold Anti-Trust Action Committee: http://www.gata.org/node/11851#.UIanrlUwGlM.twitter
From Zerohedge.com, this snippet….
“German Federal auditors handed in a report slamming the Bundesbank for not inspecting their foreign held gold reserves to verify their book value. The report says the gold bars “have never been physically checked by the Bundesbank itself or other independent auditors regarding their authenticity or weight.” Instead, it relies on “written confirmations by the storage sites.” The lion’s share of Germany’s gold reserves (nearly 3,400 tons estimated at $190 billion) are housed in vaults of the US Federal Reserve, the Bank of England and the Bank of France since the post-war days, when they were worried about a Cold War Soviet invasion. The Bundesbank stated, “There is no doubt about the integrity of the foreign storage sites in this regard”. In contrast with best industry practices Germany’s gold reserves do not seem to be independently verified by a third party. Philipp Missfelder, a politician from Merkel’s own party, has asked the Bundesbank for the right to view the gold bars in Paris and London, but the central bank has denied the request, citing the lack of visitor rooms in those facilities, German’s daily Bild reported. The Bundesbank won’t let German parliament members inspect the German gold vaulted abroad because the central bank vaulting facilities supposedly lack “visiting rooms.” And yet one of those vaults, the Federal Reserve Bank of New York, offers the public tours that include “an exclusive visit to the gold vault”.
MF Global is back in the news: Corzine, banks push to end MF Global fraud lawsuit http://implode-explode.com/viewnews/2012-10-23_CorzinebankspushtoendMFGlobalfraudlawsuit.html#.UIan6Sf69xk.twitter
Reminder: The MF debacle has shown us how the banksters can filch money from segregated accounts with the ease of taking candy from a baby. Chances are good that no rule of law prevails in this situation meaning that Corzine et al shall prevail. As long as society allows Corzine and friends to get away with committing alleged financial crimes nothing is safe from confiscation whether it be a 401k, retirement, futures, or other accounts that are part of the banking/Federal Reserve system. If you hold a large majority of wealth in the aforementioned you really should be losing quite a bit of sleep and need to take action and look at hard assets and be your own Central Bank.
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Author Jim Kingsland
Market commentator with focus on Gold and Silver after long broadcast career at FNN, Bloomberg, and Fox. #RandomHouse published author on PMs. Jim has also been involved in projects for CAC and Coinplex.
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