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The World Financial Report – November 29th, 2011

November 29, 2011

GOLD

-”Gold bears the confidence of the world’s millions, who value it far above the promises of politicians, far above the unbacked paper issued by governments as money substitutes. It has been that way through all recorded history. There is no reason to believe it will lose the confidence of people in the future.” Oakley R. Bramble

-Richard Russell: The Gold Skyrocketing Phase Still Lies Ahead. Day after day, everyone asks whether gold has topped out. Nobody ever asks whether the market has topped out. Think about it, we’re in a low inflation, low investor fear environment, a dollar that appears to have bottomed and is now firming, and still gold holds above 1700 an ounce.

This is a remarkable performance aided by heavy buying in China, India, and Asian nations. But what happens when we hit the inevitable inflation; when investors fears are on the rise? To conclude, gold is holding well in an environment that is not bullish for gold, but in due time, the environment will turn highly bullish for the yellow metal. Do not time your gold purchases. Simply continue to accumulate gold. The skyrocketing phase lies ahead, maybe one to three years. Read more here-http://tinyurl.com/85s22pq

-”My advice: We are moving closer and closer to what I call “survival period” the period where the magic of compounding turns into what will be the poison of compounding. This isn’t a time for timing. This is a time for action. Reduce your exposure to bonds and all items that provide fixed interest rates.

Similarly, reduce your exposure to stocks except the gold miners. Look to expand your positions in inflation-protected assets, especially gold.” “Those who are holding stocks in the hopes of the usual rebound are going to be terribly disappointed in the years ahead. This bear market is going to be unlike anything we’ve ever seen before.

In the end my survival vehicle will be gold. I say again, timing is hopeless. Gold will have purchasing power and true wealth as almost everything else is destroyed by this unprecedented bear market. The US Government is now so loaded with ever-growing debt that it has become a mathematical freak.

We return to different times, when rising interest rates will eat up the US government. With $55 trillion in assorted debts, the US is in no shape to deal with rising interest rates. We are in a state of reverse compounding, leading to inevitable bankruptcy on a massive scale.” Richard Russell

-Bud Conrad: Is Gold Still the Answer for Investors? Read more here-http://tinyurl.com/cn8rmjh

-Jeff Clark: Don’t Sweat the Correction in Gold. I’ve told more than one concerned investor that when the gold price falls, they should “come back in three months” and see if they’re still worried. The idea is that the daily and monthly gyrations are nothing to fret over, that the price will recover and, in time, fetch new highs. That advice has worked every time gold underwent any significant correction (except in late 2008, when one had to take a longer view than three months). Here’s proof. Read more here-http://tinyurl.com/buorcz6

-The Aden Sisters: Gold is Still Good. The gold price has actually been telling us for the past few years that the world is a scary place, even more than it was during the 2008 meltdown. The fact that gold has hardly declined in a normal downward correction (down only 16% so far) since then, after reaching record highs, reinforces that the world is tense and uncertain. Plus, with gold in other currency terms also rising to record highs, it further reinforces this (see Chart 2).

But you may remember that during the financial meltdown in 2008, all assets fell, including gold, and only the dollar and bonds held up. This is something that could happen again. We might see an accident or a meltdown at any time, which would tie in with the much awaited full downward correction in gold. Most telling during the 2008 crisis, however, was that gold fell much less than the other markets, and it ended the year on an up note. It fell almost 30% during the year but ended up about 5%.

Last time we showed you the current bull market in gold compared to other bubbles of the past. Gold is hardly near those explosive high levels, and the next chart provides yet another good example of this. Chart 3 shows the gold price above, along with its leading indicator, below, since 1968. Note the sharp steady rise in gold since 2001. It’s been an amazing rise, up 660%.

But the type of volatility gold had in the 1970s has yet to be seen. The indicator (lower chart) helps to identify volatility, as well as high and low areas in the major trend. Note the clear difference between the volatility in the 1970s and the movements since 2001. So looking at the big picture this indicator is saying that gold is near a normal high area within a major uptrend, but it has yet to experience any type of explosive action. This is likely still to come once this current period of weakness is over. Read more here-http://tinyurl.com/d8×6xdo

-Gold will shine at $3000 in 2-3 yrs: Superfund Financial. The crisis which the world is in right now is a global crises and not one emanating just from the Eurozone, says Johann Santer the COO of Superfund Financial India. From the commodity space, he is extremely bullish on gold and advices his investors to remain invested in the yellow metal. He expects gold to touch USD 3,000 per ounce in the next couple of years. Read more here-http://tinyurl.com/crzrvdx

-Jim Rickards: Gold Pullback Meaningless, It’s Headed Higher. When asked about Paul Brodsky’s thoughts on gold and his $10,000 price target, Rickards responded, “I agree completely with Paul on that. Again, I don’t want to put a stake in the ground around $10,000. My method has been to come up with a range, depending on different variables, but you end up in the same place.”

Here’s the point, whether you end up with $5,000, $7,000, Paul is saying $10,000 and that’s a perfectly respectable estimate, I could (even) see it (gold) at higher levels, $15,000 or $20,000. In other words, the price level that I have given, that is in chapter eleven of the book, is based on today’s data.

Now if you change the data, if you print even more money than we’ve printed so far, you’ll get even higher prices. But the point is Paul’s estimate is right in the middle of the range that I’ve come up with, a perfectly good estimate.

We all like our investments to go up, but if you buy gold at $1,700 and it goes to $1,500, buy more because it’s on its way to $2,000, $3,000, $4,000 and higher. The fundamental story (for gold) is completely intact, in fact it’s getting stronger. Read more here-http://tinyurl.com/d5goyhk

-Jim Rickards: Who Will Bail Out the Fed & How High for Gold? Read more here-http://tinyurl.com/6swulet

-John Embry: Get Ready for Extreme Money Creation Globally. Read more here-http://tinyurl.com/brd8enx

-John Embry: Tremendous Manipulation of Both Gold & Silver. When asked about Paul Brodsky’s view that gold is trading at an 80% discount to its real value and so reactions are irrelevant, Embry remarked, “I couldn’t agree more. I won’t make a price prediction because what you are predicting is how far currencies are going to fall in value.

They could fall to nothing and so the price of gold could be infinite. The real issue here is to be long because the trend is up. It’s been up for eleven years and it’s going to be up for a lot longer and the appreciation is going to accelerate. It’s really interesting if you watch what’s been going on for the last few years because they have controlled the rise. They can’t stop the rise, but they can control the speed of it.

The last couple of years gold has been up around 26% and guess what? They are holding it here right now and if the year ended tomorrow we would be up about the same percentage. I mean nothing that isn’t manipulated works like that.” Read more here-http://tinyurl.com/d3zx7xn

-Stephen Leeb: Expect QE3, QE4 and 40% to 50% Inflation. Read more here-http://tinyurl.com/csxhod2

-Clive Maund: Gold Market Update. Read more here-http://tinyurl.com/7covos2

-Rick Rule: Gold and the Financial Crisis. Read more here-http://tinyurl.com/6w9xa8v

-Daniel R. Amerman: Gold/Housing Ratio Falls To Historic Low. Read more here-http://tinyurl.com/cy68o85

-Tom McClellan: Why Gold Has 1-3 More Years Left Of Beating The Market. Read more here-http://tinyurl.com/8xzvszp

-Frank Holmes: The Gold Triple Play Volatility, Currencies and Europe. Read more here-http://tinyurl.com/cks9eol

-Murray Pollitt: Gold Contango. Read more here-http://www.gata.org/node/10697

-In Nervous Market, Gold Gains Respectability. “Gold is a money that governments don’t print,” said Charles Stevenson. Read more here-http://tinyurl.com/c2pqkvc

-James Turk: The Myths and Reality of Gold Confiscation. Read more here-http://tinyurl.com/7qn8ha5

-Cash for gold in the eurozone bailout. Read more here-http://www.gata.org/node/10696

-Mystery surrounds jump in central bank gold purchases. According to Reuter’ calculations, the owner of 130 of the 150 tonnes of gold bought by central banks in Q3, remains a mystery. Read more here-http://tinyurl.com/dxysdct

-Despite rising inflation, Iran advises against buying dollars or gold. Read more here-http://www.gata.org/node/10690

-Gold in India’s coffers makes government richer. The findings of a working paper by India’s central bank advise the Indian government to buy more gold to bolster the government’s kitty. Read more here-http://tinyurl.com/brlmrtn

-India gets its first gold and diamond studded jewels ATM. Not content with bullion alone, a new ATM in Mumbai also spits out diamond jewellery too. Read more here-http://tinyurl.com/d4jr5bh

-Twice in a week, Financial Times pays grudging respect to gold. Read more here-http://www.gata.org/node/10691

-Indifference, volatility cited in weekly metals review at King World News. Listen here-http://www.gata.org/node/10688

-Ford library confirms Fed letter tying Germany to gold price suppression. Read more here-http://www.gata.org/node/10686

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SILVER

Gold to silver ratio at 50 to 1 with gold at $2,000 the silver price would be $40.00

Gold to silver ratio at 40 to 1 with gold at $2,000 the silver price would be $50.00

Gold to silver ratio at 30 to 1 with gold at $2,000 the silver price would be $66.67

Gold to silver ratio at 20 to 1 with gold at $2,000 the silver price would be $100.00

Gold to silver ratio at 15 to 1 with gold at $2,000 the silver price would be $133.33

Gold to silver ratio at 50 to 1 with gold at $2,500 the silver price would be $50.00

Gold to silver ratio at 40 to 1 with gold at $2,500 the silver price would be $62.50

Gold to silver ratio at 30 to 1 with gold at $2,500 the silver price would be $83.33

Gold to silver ratio at 20 to 1 with gold at $2,500 the silver price would be $125.00

Gold to silver ratio at 15 to 1 with gold at $2,500 the silver price would be $166.67

-”It [has occurred] to me that it is financial terrorism that best describes the behavior of the manipulators in the silver market. When a world commodity, like silver, declines 30% in a matter of days [twice this year], or when it declines 7% in a day [Thursday] for no good economic reason, it is natural to wonder why that occurred. When the only plausible explanation is that the sell-offs occurred as a deliberate attempt to scare innocent holders out of the market through fear and intimidation [of further loss], is that not financial terrorism?”

“As I’ve indicated previously, the key to these sudden and sharp silver sell-offs is in the sequence of events. In every single instance, it is never a case of investors suddenly deciding to sell and that collective selling action which precipitates the price decline. Rather, it is always the case of the price first being suddenly rigged lower [at the quietest of trading times] and investors then reacting to those lower prices and selling after the price has come down.

Also, in every single instance, those who initiated the suddenly lower prices [the COMEX commercials], then reap the whirlwind of their financial terrorism by buying all the positions they were able to intimidate into being sold. Scare folks into selling so that the financial terrorists can then buy from those that had been terrorized.” “This is a crooked, rotten racket that has been going on for decades in silver.

The only difference is that it is not al Qaeda or some militant terrorist group at work, but a consortium of leading banks and firms financially terrorizing that segment of the public that has chosen to invest in silver. Instead of being organized by bin Laden, the silver terrorists are organized and protected by the CME Group.” Ted Butler via Ed Steer Casey Research-Read more here-http://tinyurl.com/792vyqk

-John Embry: Silver Update. “The fundamentals are fantastic. It’s a very small market relative to all the other markets and there is a massive paper short who has been manipulating the market violently for years, and we all know who that is.

I mean we shouldn’t be surprised that in these difficult times these guys are throwing everything at it but the kitchen sink. It’s just creating an unbelievable opportunity and when silver is trading at 5 and 10 times these levels in a few years, this will just be a bad memory.” Read more here-http://tinyurl.com/brd8enx

-Clive Maund: Silver Update. Read more here-http://tinyurl.com/ccxruql

-Louis James: Silver: Investment Demand Is Just Part of the Picture. Read more here-http://tinyurl.com/77m5r2q

-Coeur d’Alene’s CEO, Mitchell Krebs, expects the prices of silver and gold to continue rising on healthy demand even as economic uncertainty persists. Read more here-http://tinyurl.com/7qosqmr

-Hubert Moolman: Why Silver For A Monetary Collapse? Part 1. Read more here-http://tinyurl.com/6olc3zc

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CHARTS OF THE WEEK-QUOTES-QUICK HITS

-CHART OF THE WEEK: Gold Update. Today’s chart provides some long-term perspective in regards to the gold market. As today’s chart illustrates, the massive bull market in gold that began in early 2001 is alive and well. In fact, as today’s chart illustrates, the pace of the gold bull market has only increased over time.

Since peaking in early September 2011, however, gold has retreated. Each pullback has brought gold back down to support (green line) of its accelerated uptrend. Over the past two weeks, gold has declined once again and has crossed below the $1700 per ounce level and is once again testing support. Read more here-http://tinyurl.com/ce5xfku


Source: chartoftheday.com

-”You can’t just ask customers what they want and then try to give that to them. By the time you get it built, they’ll want something new.” Steve Jobs

-Global Collapse a Done Deal, says Jim Rogers. Rogers message to investors is If you think 2008 was bad, 2012 will be worse. “We’re certainly going to have more crises coming out of Europe and America; the world is in trouble.” He said everyone has spent beyond their means, public and private, “and it’s all coming home to roost.” “Last time, America quadrupled its debt. The system is much more extended now, and America cannot quadruple its debt again.” “Greece cannot double its debt again. The next time around is going to be much worse.” Read more here-http://tinyurl.com/7yu5vvn

-Eric Sprott: This Financial Crisis Will Be a lot Worse Than 2008. “I think it’s going to be a lot worse because it took a certain amount of money to bail out Lehman and all of the counterparties to Lehman. But when you have governments and sovereigns and major banks that have these issues, I just can’t imagine there is enough money to bail it out.

Of course day by day people are losing confidence in these various currencies. So I don’t think it can be solved. I don’t think there is enough money to bail it out and of course if they try we are going to end up with some kind of hyperinflation or (massive) depreciation of currencies. It’s not going to work, I just don’t think there is a solution to the problem.” Read more here-http://tinyurl.com/7ghsu5p

-PIMCO’s Chief Executive Officer Mohamed A. El-Erian said U.S. economic conditions are “terrifying” as the nation struggles to recover from recession. The odds of the U.S. returning to recession are as high as 50 percent, El-Erian said during an interview. U.S. economic growth was worse than expected and congressional policy makers are gridlocked over what to do about the economy and the deficit, which risk exacerbating an already weak recovery.

We have less economic momentum than we thought we had and we have no policy momentum.” “What’s most terrifying,” he said, “we are having this discussion about the risk of recession at a time when unemployment is already too high, at a time when a quarter of homeowners are underwater on their mortgages, at a time then the fiscal deficit is at 9 percent and at a time when interest rates are at zero.” Read more here-http://tinyurl.com/c4ry5vg

-Euro Zone Needs ‘Momentous Deal’: Credit Suisse. Euro leaders must reach “a momentous deal” toward fiscal and political union by mid- January to save the 17-nation bloc, Credit Suisse said in a note to investors. They also predicted the European Central Bank will move “more aggressively” to lower its benchmark 1.25 percent rate and provide banks with longer term funds. “In short, the fate of the euro is about to be decided,” according to the note, which was published this week. Read more here-http://tinyurl.com/bmkacto

-IMF Revamps Credit Lines for Nations Facing Shocks on Europe Debt Turmoil. The International Monetary Fund revamped its credit line program to encourage countries facing outside shocks to turn to the fund with few conditions attached, as European leaders fail to end their debt turmoil. Read more here-http://tinyurl.com/cdzj7rw

-Ben Davies: We are Seeing 2008 Style Crash Signals. “There is no doubt that we are hitting monetary and fiscal constraints. The balance sheet of the Fed is 50 times levered relative to 2007 when it was 25 times levered. That means that effectively 2% down on that portfolio and you wipe out all of the equity. Effectively, without printing more money, they (the Fed) would be insolvent.” Read more here-http://tinyurl.com/bp7yr6j

-China vice premier sees chronic global recession. A long-term global recession is certain to happen and China must focus on domestic problems, Chinese Vice Premier Wang Qishan has said. “The one thing that we can be certain of, among all the uncertainties, is that the global economic recession caused by the international financial crisis will be chronic,” Wang said.

Wang’s comments were the most bearish forecast ever by a top Chinese decision-maker about the world economy, and Beijing’s worry about a worsening global environment could translate into an impetus for pro-growth policies at home. Read more here-http://tinyurl.com/bqmgh5v

-A Few FOMC Members Said Outlook May Warrant More Easing. Some Federal Reserve policy makers said the central bank should consider easing policy further, according to minutes of their Nov. 1-2 meeting. Read more here-http://tinyurl.com/csb64q9

-Dollar Pre-Eminence Grows as Foreign Banks Double Deposits at New York Fed. Foreign bank deposits at the Federal Reserve have more than doubled to $715 billion from $350 billion since the end of 2010 amid Europe’s debt turmoil, buttressing the dollar’s status as the world’s reserve currency. Forty-seven non-U.S. banks held balances of more than $1 billion at the New York Fed as of Sept. 30, up from 22 at the end of 2010. Read more here-http://tinyurl.com/7rfywxe

-Treasury Notes Sell at Record Low Yield. Treasuries gained as the U.S. sold $29 billion in seven-year notes at a record low auction yield amid concern of contagion from the European debt crisis, pushing investors into the safety of government debt. Read more here-http://tinyurl.com/c3je8nh

-Consumer Spending Slows as Holidays Begin. Consumer spending in the U.S. rose less than forecast in October as Americans used the biggest gain in incomes in seven months to rebuild savings, indicating the biggest part of the economy may contribute less to the recovery. Read more here-http://tinyurl.com/dyglqe5

-’Company Policy: We are not hiring until Obama is gone.’ Read more here-http://tinyurl.com/79ou5ot

-Payrolls Gained in 39 U.S. States in October, Led by Illinois, California. Read more here-http://tinyurl.com/6mlg2q3

-As New Graduates Return to Nest, Economy Also Feels the Pain. Read more here-http://tinyurl.com/76ygvs7

-MF Global Missing Money May Exceed $1.2 Billion, Double Previous Estimate. Read more here-http://tinyurl.com/buq8ev8

-James Turk: MF Global Disaster to Create Another Lehman Crisis. Read more here-http://tinyurl.com/89o2cds

-Barclays CEO Pay ‘Corrosive’ for U.K. Economy, Study Says. The soaring earnings of top bankers including the chief executive officer of Barclays Plc are having a “corrosive” effect on the U.K. economy, the High Pay Commission said. Read more here-http://tinyurl.com/coby8lj

-Oil Abundance in Canada Provokes Anxiety Over Fossil Fuel Lust. Read more here-http://tinyurl.com/d88653l

-Vindicated Seismologist Says Japan Still Underestimates Threat to Reactors. Dismissed as a “nobody” by Japan’s nuclear industry, seismologist Katsuhiko Ishibashi spent two decades watching his predictions of disaster come true: First in the 1995 Kobe earthquake and then at Fukushima. He says the government still doesn’t get it. Read more here-http://tinyurl.com/7jdfp89

-U.S. Targets Iran Oil, Bank in Bid to Halt Nuclear Program. The U.S. expanded measures aimed at thwarting Iran’s nuclear program, targeting its central bank and oil industry with actions intended to cut the regime off from international financial transactions. Read more here-http://tinyurl.com/cc4j7ph

-Russia Prepares to ‘Destroy’ U.S. Shield, Medvedev Says. Russian President Dmitry Medvedev ordered the military to prepare to “destroy” the command capability of the planned U.S. missile-defense system in Europe. Read more here-http://tinyurl.com/8xsc736

-Foreign hackers targeted U.S. water plant in apparent malicious cyber attack, expert says. Read more here-http://tinyurl.com/8458nks

-Steve Jobs’ Heirs Have Reason to Sell Apple and Disney. Read more here-http://tinyurl.com/bqu3ps5

-Apple Shifts to Sharp for 2012 TVs: Jefferies. Read more here-http://tinyurl.com/btop77p

-EBay Targets Shoppers Who Want to Buy Products Shown on TV. Read more here-http://tinyurl.com/7dt6hwo

-Passengers Pay 6% More for Thanksgiving Trips as Jets Fly Full. Passengers are paying an average of 6 percent more this year for round-trip flights during the U.S. Thanksgiving holiday as airlines reduce their available seats to maintain pricing power. Read more here-http://tinyurl.com/csle8hs

-New Zealand Exodus is Biggest in a Decade. More migrants left New Zealand than arrived for the seventh month in the past eight, extending the biggest exodus in a decade, after residents were uprooted by an earthquake in the South Island city of Christchurch. Read more here-http://tinyurl.com/87jnzc9

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RARECOLOREDDIAMONDS.COM

-The Rare Colored Diamonds Historical Value Tracker system is the perfect tool for investors to view the potential future value of a rare colored diamond based on the current market trend of a particular type of diamond. Track the potential future value of colored diamonds here-http://tinyurl.com/6l4thaf

-Watch BTV interview’s of Harold Seigel on colored diamonds. Watch video here-http://tinyurl.com/62gx3du and http://tinyurl.com/6dqhwx8

-Rarecoloreddiamonds.com Featured Diamond of the Week. This week’s Diamond is a very large 2.13ct pear shape fancy pink. Very few large pinks exist today. Pear shapes are very popular for resale. I highly recommend this diamond as an excellent investment. Harold Seigel-See video of the Diamond here-http://tinyurl.com/6g37q2r

-”I think prices of large quality diamonds will get stronger and stronger because there is a limited amount of them.” Laurence Graff

-”If 10 per cent of China’s 1.3 billion population bought diamonds, there would be none left in the world,” Laurence Graff said. He added that the lack of supply concerned him, given that no new diamond mine had been discovered for 10 years. As such, he believes diamond prices will continue to go up.

While the Chinese community tends to prize gold, Graff believes mainlanders will take up the Western custom of buying diamonds for wedding or engagement rings. “A diamond is a family treasure, as it can be passed on to children and grandchildren. Diamonds would be the last thing you would throw away.” Read more here-http://tinyurl.com/cg8ks84 Watch video here-http://tinyurl.com/d8v7pqz

-Pink Diamonds Find New Best Friend: China’s Rich. Wealthy Chinese are moving their investments from stocks and bonds to one of the world’s rarest gemstones: pink diamonds. Watch more here-http://tinyurl.com/6whyfpx

-Dubai diversifies with push into diamonds. The United Arab Emirates, the world’s fourth-largest oil exporter and home to gold trading hub Dubai, is rapidly becoming a force in trade of another highly valuable commodity: diamonds. Read more here-http://tinyurl.com/dx7u8y5

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SOVEREIGN DEBT

-Portugal’s Credit Rating Cut to Junk by Fitch. Portugal’s credit rating was cut to below investment grade by Fitch Ratings due to the country’s rising debt level and weakening economy. Read more here-http://tinyurl.com/bvsehz9

-Japan ‘May Be’ Close to a Downgrade: S&P. Standard & Poor’s said Japanese Prime Minister Yoshihiko Noda’s administration hasn’t made progress in tackling the public debt burden, an indication it may be preparing to lower the nation’s sovereign grade. Read more here-http://tinyurl.com/85paoh7

-France’s AAA Status in Tatters as Yields Surge. Investors aren’t waiting for Standard & Poor’s or Moody’s Investors Service to strip France, Europe’s second-biggest economy, of its top credit rating. The extra yield demanded to lend to AAA rated France for 10 years was 158 basis points more than the German rate. Read more here-http://tinyurl.com/7w93d3t

-Merkel Rejects Euro Bonds Again After Auction. German Chancellor Angela Merkel again ruled out joint euro-area borrowing and an expanded role for the European Central Bank in fighting the debt crisis. Read more here-http://tinyurl.com/dymb8y8

-German Auction ‘Disaster‘ Stirs Crisis Contagion Concern. Germany failed to get bids for 35 percent of the 10-year bonds offered for sale today, propelling borrowing costs in Europe higher and the euro lower on concern the region’s debt crisis is driving away investors.

“This auction is nothing short of a disaster for Germany,” said Mark Grant, a managing director at Southwest Securities Inc. in Fort Lauderdale, Florida. “If the strongest nation in Europe has this kind of difficulty raising capital, one shudders concerning the upcoming auctions in other European nations.”

Turmoil that began more than two years ago in Greece and snared Ireland, Portugal, Italy and Spain has closed in on France and now risks engulfing Germany, the region’s biggest economy. Political leaders are struggling to find a fix for the crisis, with German Chancellor Angela Merkel rejecting proposals for common currency-area bonds, while the European Central Bank resists calls to boost sovereign-debt purchases. Read more here-http://tinyurl.com/ckvvpre

-Michael Pento: Failed German Auction Will Force ECB to Print. Read more here-http://tinyurl.com/cprdpyp

-BOE’s Miles Sees Risk a Country May Exit Euro Area as Debt Crisis Persists. Bank of England policy maker David Miles said there’s a risk a country may leave the 17-nation euro area and that the threat from the region’s crisis has increased uncertainty about the outlook for the U.K. economy. Read more here-http://tinyurl.com/766lj7u

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U.S. DEBT-DEFICIT

-China media says US sitting on debt ‘bomb.’ China’s state media Tuesday blasted the United States over its “ticking debt bomb” and urged American lawmakers to be more responsible after they failed to agree on deficit-cutting measures.

China is the world’s largest foreign holder of US Treasuries with a portfolio of around $1.15 trillion, prompting Beijing’s keen interest in the state of the US economy. “Washington’s political elites are obligated to muster the courage to defuse the ticking debt bomb and start to show the world they have the wisdom and determination not to further jeopardise the fragile global economic recovery,” Xinhua news agency said in a commentary. Read more here-http://tinyurl.com/8ablcv3

-U.S. Supercommittee Fails to Reach Agreement as Across-the-Board Cuts Loom. A special debt-reduction committee in the U.S. Congress failed to reach agreement, extending partisan gridlock into the 2012 election year and setting the stage for $1.2 trillion in automatic spending cuts. Read more here-http://tinyurl.com/7oep63h

-U.S. Rating Affirmed by S&P, Moody’s as Supercommittee Fails. Standard & Poor’s and Moody’s Investors Service said they won’t lower ratings on the U.S. after the congressional committee charged with finding $1.5 trillion of deficit cuts failed to reach an agreement. S&P, which stripped the U.S. of its top AAA grade on Aug. 5, said that the supercommittee’s inability to reach agreement didn’t merit another downgrade because the inaction will trigger $1.2 trillion in automatic spending cuts.

The deliberations were “not decisive,” Moody’s spokesman Eduardo Barker said after the panel issued a statement. Fitch Ratings reiterated that the talks failure would likely lead to a revision of the U.S. rating outlook to negative. Read more here-http://tinyurl.com/d2d6ts5

-Ron Paul: Balance by returning to 2004; Lenzner: Top 0.1 percent gets half of all cap gains. Read more here-http://www.gata.org/node/10693

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BANKING

-Regulators close 2 banks in Iowa, Louisiana. Regulators on Friday closed a bank in Iowa and another in Louisiana, bringing the nationwide tally of bank failures up to 90 for the year. Read more here-http://tinyurl.com/bnkbota

-The FDIC’s confidential list of “problem” banks fell for a second straight quarter, declining to 844 from 865 three months earlier, the agency said. There were 26 bank failures in the three-month period that ended Sept. 30, bringing the year’s total to 74, compared with 127 a year earlier. Read more here-http://tinyurl.com/cvugcgb

-Fed Requires Top Banks to Submit Capital Plans. The Federal Reserve told the 31 largest U.S. banks to test their loan portfolios and trading books against a deep recession and a European market shock to ensure they have enough capital to withstand losses. The most severe test scenarios outlined by the Fed today include an unemployment rate of as much as 13 percent, an 8 percent drop in gross domestic product and a 21 percent plunge in home prices. Read more here-http://tinyurl.com/74uelpr

-’Unsellable’ Real Estate Assets Threaten Survival of Smaller Spanish Banks. Spanish banks, under pressure to cut property-backed debt, hold about 30 billion euros ($41 billion) of real estate that’s “unsellable,” according to a risk adviser to Banco Santander SA and five other lenders.

I’m really worried about the small and medium-sized banks whose business is 100 percent in Spain and based on real- estate growth,” Pablo Cantos, managing partner of Madrid-based MaC Group, said in an interview. “I foresee Spain will be left with just four large banks.” Read more here-http://tinyurl.com/c3put4p

-Chinese Banks ‘Built on Quicksand’: Chanos. Chinese banks are “extremely fragile” because the lenders don’t have enough capital to offset bad loans, said Jim Chanos, president and founder of the $6 billion hedge fund Kynikos Associates Ltd.

Chinese lenders are saddled with non-performing loans accumulated in the late 1990s and early 2000s, Chanos, the short seller who predicted the collapse of Enron Corp. in 2001, said in an interview. The banks are failing to recognize the losses on the bad loans and have carried out a lending binge since 2008, said Chanos.

The Chinese banking system is built on quicksand and that’s the one thing a lot of people don’t realize,” said Chanos, who is shorting the shares of Agricultural Bank of China. “Everybody seems to think it is a free and clear open checkbook. It’s not. The banking system in China is extremely fragile.” Read more here-http://tinyurl.com/caf7ln8

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REAL ESTATE

-Sales of Existing U.S. Homes Unexpectedly Rise. Sales of previously owned homes in the U.S. unexpectedly rose in October, a sign falling prices may be attracting buyers. Purchases increased 1.4 percent to a 4.97 million annual rate, the National Association of Realtors said today in Washington. Read more here-http://tinyurl.com/cyfaqp7

-Births at 11-Year Low May Prolong Five-Year Housing Slump. Read more here-http://tinyurl.com/7lcegqw

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© 2013, Worldwide Precious Metals Canada Ltd.
www.wwpmc.com

The World Financial Report – November 29th, 2011
Posted by Worldwide Precious Metals on Tuesday, November 29, 2011


The World Financial Report – November 22th, 2011

November 22, 2011

GOLD

-”I am projecting gold at $2000 by the end of 2011 or early January, 2012. Please make a note of my gold COT chart analysis price target, which is $2330 as of July, 2012.” Morris Hubbartt

-”Throughout history, gold has protected people from the sort of turmoil that we’re seeing. It’s an important thing to own when there is this sort of volatility in stock markets and concern about currency devaluations.” Mark O’Byrne-Goldcore

-Jeff Clark: Why Gold Should Set New Highs for the Holidays. Most gold followers know the metal has a seasonal tendency to perform better in the fall and winter than in the spring and summer. Indeed, since 2001, the annual high for the gold price has occurred after Labor Day every year except two (2006 and 2008). Further, that peak was hit in November or December in seven of the last ten years. So, are we destined for new highs in the gold price between now and New Year’s Eve? Read more here-http://tinyurl.com/7ycepra

-Adam Hamilton: Gold Bull Seasonals. The bottom line is demand-driven seasonals have been a powerful force shaping this secular gold bull. A variety of income-cycle and cultural factors around the globe combine to drive major gold rallies at certain times of the year.

Though seasonals are a secondary driver that can be temporarily overridden by excessive greed or fear, they are still a fantastic tool to help time entries and exits in gold-related trades. And right now we are heading into gold’s strongest time of the year seasonally, its biggest seasonal rally.

On average throughout this secular bull, gold has soared 10.4% higher between late October and late February. The longer you wait to deploy, the less you will be able to harness these major seasonal tailwinds. And with gold far from overbought today, there is no sentiment reason not to be aggressively long. Read more here-http://tinyurl.com/855dvke

-Paul Brodsky: Gold Trading at 80% Discount to Intrinsic Value. The fundamentals are such that we feel gold is trading at what appears to us to be an almost 80% discount to its intrinsic value based on past monetary inflation. This does not even include potential future monetary inflation that we anticipate, but past monetary inflation. Read more here-http://tinyurl.com/7yjsebg

-Sean Boyd Agnico Eagle CEO: Gold Could Rise to Unimaginable Levels. When asked what he sees going forward with the price of gold, Boyd responded, “It’s still a very strong market. There was forced selling not too long ago by certain holders and that tended to spook the market. But we have been consistently sticking with the investment thesis that governments have too many obligations that they simply can’t meet and as a result we are going to see ongoing and continued debasement of paper money.”

“The flip side of that is people are looking for hard assets and gold, being one of the primary hard assets, is a major beneficiary. So we don’t see any reason to believe this upward trend in gold won’t continue. I think it will continue and we will see $2,000 shortly. So we’ve seen some volatility, I think that’s natural, but the general trend is more uncertainty, more debasement of paper currencies and gold is going to be one of the primary beneficiaries of that.”

When asked where he sees the gold bull market at this point, Boyd stated, “I believe we are in the middle of the bull run. Here we are and some people are saying gold is a bubble, but we’ve been maintaining over the last couple of years that we don’t see a lot of new people in terms of investment conferences, particularly among non-gold people. So that means we are still early in the game and gold still has a lot further to run on the upside.

When you have assets under management, which have allocations of gold at less than 1%, that means there is still much more room for gold in portfolios and we are still not there yet. If you look at India and China, combined they took down about 52% of the annual mine supply last year. That’s a fair chunk and that’s up from where it was several years ago. That trend is likely to grow.

When you layer on top of that, eventually, more and more investors are feeling they need to diversify and get exposure to metal, that’s when gold will just take off. That will be the last phase of the bull market and it may still be two or three years away depending on how quickly this all unfolds. That could take the price of gold into numbers that we can’t even imagine at the moment. Read more here-http://tinyurl.com/7xwdz9h

-Martin Armstrong: Gold Upside Take Off Only Months Away. “Basically what you are doing is you are building a sideways type of base. Eventually gold is going to take off to the upside, but largely when people begin to see the Emperor has no clothes and we’re getting close to that. I would only give it a few more months.” Read more here-http://tinyurl.com/6wqjg5o

-Eveillard: Money Printing Continues to Fuel Gold Bull. “We are nowhere near the end of the secular bull market in gold. I suspect we are not even half way through.” Read more here-http://tinyurl.com/75rbc6s

-Eveillard: If Italy Sells its Gold Here is What Will Happen. Read more here-http://tinyurl.com/7m8rfhw

-John Hathaway: Why It’s a Great Time to Buy. Read more here-http://tinyurl.com/7n9rk46

-John Hathaway: Sell Side to get Slaughtered on Bearish Gold Calls. Read more here-http://tinyurl.com/7sa6b9p

-Michael Pento: How CB Bazookas Will Impact Gold & Economy. Read more here-http://tinyurl.com/7rswtqb

-Michael Pento: Full-Blown Bond Market Crisis in 2012 & Gold. Read more here-http://tinyurl.com/7b56xw3

-Richard Russell: Accumulate Gold. Read more here-http://tinyurl.com/6wkx4ao

-John Roque: Europe is Uninvestable & Gold is the Antidote. “If I’m long gold I’m happy with it and leaving it alone. I would love to see gold consolidate a little bit, but I think given the action in gold and the volatility, it should be a hold in your portfolio. It’s the antidote to governments and fiat currencies. Gold also helps to assuage fears with regards to other assets.” Read more here-http://tinyurl.com/6uhvclb

-Alf Field: Keynote Speech at Sydney Gold Symposium. Alf’s target for gold is $4,500. It is likely that gold will be the new unit of measurement or standard of value against which the performance of other assets will be judged. The challenge will be to find assets that perform better than gold. Read more here-http://tinyurl.com/8ybaldw

-Stephen Leeb: You Have to Love Gold Here. “Gold has been very strong and now it’s consolidating. I see absolutely no evidence whatsoever that it is going to reverse. Can I say, definitely, it won’t go back to $1,600? Of course not. But is $5,000 more likely than $1,400? Yes. Is $5,000 extremely likely? Yes.” Read more here-http://tinyurl.com/7a2l7qn

-Jim Rickards: The US Won’t Give Germany its Gold. Read more here-http://tinyurl.com/7hysp6c

-Kyle Bass: “Buying Gold Is Just Buying A Put Against The Idiocy Of The Political Cycle. It’s That Simple.” Read and watch more here-http://tinyurl.com/bsw3ezm

-Gold soars to a new high in India as wedding season gets underway. With India witnessing thousands of weddings this marriage season, gold jewellery sales are set to go up in India, with the precious metal entering its strongest time of the year. Read more here-http://tinyurl.com/6slrjqy

-Negative interest rates in India driving record demand for gold. Read more here-http://www.gata.org/node/10658

-Gold Prices to Be Linked to U.S. Deficit Cuts, JPMorgan Says. Gold prices will be influenced by the ability of U.S. lawmakers to reduce the federal budget deficit, according to Colin P. Fenton, the global head of commodities research and strategy at JPMorgan Chase & Co. “The market is discounting a cut of $2 trillion, so if it’s less than $1.5 trillion, we will see gold prices surge and rise higher than $2,500,” Fenton said at a conference in New York. Read more here-http://tinyurl.com/7sy3pyv

-Gold Traders Most Bullish Since 2004 on Debt Crisis. Gold traders and analysts are the most bullish in at least seven years as investors accumulate metal at the fastest pace since August to protect their wealth from a widening European debt crisis. Read more here-http://tinyurl.com/dxr4fra

-Gold Demand Advanced 6% in Third Quarter. Gold demand rose 6 percent in the third quarter from a year earlier as Europe’s debt crisis spurred investors to accumulate the metal as a protection of wealth and push prices to a record, the World Gold Council said. Read more here-http://tinyurl.com/88yevzg

-New gold bugs are young and restless, Meet three investors who have been bullish about bullion. Read more here-http://tinyurl.com/7spu7jc

-Central banks said to be buying the dips in gold. Read more here-http://www.gata.org/node/10681

-Nationalism Replaces Crisis as Biggest Threat to Metal Supply. Read more here-http://tinyurl.com/c3nbh8m

-James Turk: Interview with Doug Casey. Watch more here-http://tinyurl.com/cev9rzh

-James Turk: Interview with Erste Bank’s Ronald-Peter Stoeferle. Watch more here-http://www.gata.org/node/10670

-Gold Standard Institute’s November newsletter. Read more here-http://www.gata.org/node/10673

-Lawrence Williams: Gold Commodity, currency or something else? A recent analysis by Julian Jessop in London examines whether gold should be considered a commodity or a currency and feels that for the moment at least it meets the parameters of indeed equating to a currency. Read more here-http://tinyurl.com/7lheglx

-Lawrence Williams: Gold and the Eurozone what happens when the Euro fails? Despite the imposition of government by non-elected technocrats already being seen, the Eurozone problems would seem to be worsening by the day and gold may offer the best form of wealth protection against global economic meltdown. Read more here-http://tinyurl.com/79ph9m7

-Alasdair Macleod: An Austrian economic view. Read more here-http://www.gata.org/node/10665

-Former German chancellor silent on Fed memo linking him to gold suppression. Read more here-http://www.gata.org/node/10668

-Haynes, Norcini review precious metals’ week at King World News. Listen here-http://www.gata.org/node/10669

-Swiss brokerage adopts GATA’s view of imaginary ‘paper gold’. Read more here-http://www.gata.org/node/10661

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SILVER

Gold to silver ratio at 50 to 1 with gold at $2,000 the silver price would be $40.00

Gold to silver ratio at 40 to 1 with gold at $2,000 the silver price would be $50.00

Gold to silver ratio at 30 to 1 with gold at $2,000 the silver price would be $66.67

Gold to silver ratio at 20 to 1 with gold at $2,000 the silver price would be $100.00

Gold to silver ratio at 15 to 1 with gold at $2,000 the silver price would be $133.33

Gold to silver ratio at 50 to 1 with gold at $2,500 the silver price would be $50.00

Gold to silver ratio at 40 to 1 with gold at $2,500 the silver price would be $62.50

Gold to silver ratio at 30 to 1 with gold at $2,500 the silver price would be $83.33

Gold to silver ratio at 20 to 1 with gold at $2,500 the silver price would be $125.00

Gold to silver ratio at 15 to 1 with gold at $2,500 the silver price would be $166.67

-CHART OF THE WEEK: Silver Surge Means Industry May Look Elsewhere. Silver prices 75 percent higher than the average for the past five years may lead manufacturers to seek alternatives for the metal used in products including solar panels, electronics and batteries, according to UBS AG. Read more here-http://tinyurl.com/bnwlkot

-”As can be seen in today’s price action, where silver declined a full dollar from last night’s close (for no legitimate reason), COT readings have little bearing on day to day price activity. I get the feeling more and more that silver is put down early in the COMEX trading day which forces it to struggle to recover the balance of the day.

What controls daily pricing is the crooked trading activity on the CME, no doubt influenced by the presence of JPMorgan’s crooked concentrated short position. I guess I’ll get tired of calling the CME and JPMorgan crooks when they stop behaving as crooks.

In the meantime, we must endure their illegal activities. While they control the next dollar or so in silver, they don’t control the next ten to twenty dollars, which should be up.” Ted Butler via Ed Steer Casey Research-Read more here-http://tinyurl.com/6uhwomt

-”Leaving aside the fact that silver is more manipulated than gold for a moment, there are some ready explanations for why silver has been somewhat of a relative drag recently. For one thing, since the September price smash, silver has not been able to penetrate to the upside its important moving averages (50 and 200 day), while gold has been able to climb or remain over all its important moving averages.

I’m not a technician or chartist, but many market participants are heavily influenced by such indicators. That makes it important to be aware of what these technical traders are up to. The fact that silver is below the moving averages while gold is above keeps these technical traders from buying silver and encourages them to buy gold.

I think this explains, more than anything, the recent relative punk price performance in silver compared to gold. But the nature of this technical moving average approach portends changes ahead.” Ted Butler via Ed Steer Casey Research-Read more here-http://tinyurl.com/7fq85fk

-”Recently, I have been suggesting the two things to watch is if JPMorgan increases its crooked concentrated short position in COMEX silver and if the short position in shares of the big silver ETF, SLV, grows. JPMorgan did increase its COMEX silver short position a couple of weeks ago and that circumstance must be closely monitored. The new short position in SLV has been released and it shows a sharp increase as well. As of Oct 31st, the short position in SLV grew by 4 million shares/oz to just over 24 million shares.

The short position in SLV now stands at 7.5% of all shares outstanding, an outrageously large amount.” “This means that 7.5% of all the shares in SLV have no silver backing, in violation of the prospectus, because the shorts don’t deposit silver. Such a large percentage of shares shorted represents fraud and manipulation in a fund that promises that metal backs each share. Worse, there is no data available, to my knowledge, as to the identity of the short sellers of shares. That means it could be that JPMorgan is the big short in SLV in addition to being the big short on the COMEX. That is crooked beyond description.

I still own shares in SLV, but I am fed up with the sponsor of this trust, BlackRock, for allowing this fraud and manipulation to continue. BlackRock, the world’s largest money manager, pretends to be above all this, just like the CME and JPMorgan. Nothing is ever these big firms’ responsibility. I am starting to think that BlackRock may be as crooked in matters related to silver, as are the CME and JPMorgan.” Ted Butler via Ed Steer Casey Research-Read more here-http://tinyurl.com/6rj4q4a

-Ted Butler: Silver Update, An Unmitigated Disaster. Read more here-http://tinyurl.com/cskpknx

-”Sales of size for silver have occurred repeatedly in the $0-$50 price zone. If you buy these sales, you don’t need a price parabola to put enormous profits in your pocket. The reversion to the mean, alone, makes you a solid winner, and the possible parabola becomes a huge bonus.” Stewart Thomson

-”Over the past week, the commercials claimed some profits on gold. That hasn’t been the case with silver, suggesting the commercials are expecting a very big move higher in the silver price.

The commercial traders are now about as net long silver as they were in 2008, when silver was trading at about $8.50.

Their stance suggests the possible upside pricing for silver is far above current levels. I have included the Chaikin money flow indicator at the top of the silver chart. It confirms the absolutely amazing bullishness action of the commercial traders. I believe the technical set up exists to see silver rise towards $100 in the next 18 months.” Morris Hubbartt

-Sean Boyd Agnico Eagle CEO: Silver did have a big run and got ahead of itself, but silver, traditionally, will follow gold higher and the upside on silver will be greater in percentage terms than it is on gold. Read more here-http://tinyurl.com/7xwdz9h

-Eric Sprott: This Will Be The Decade Of Silver. Read more here-http://tinyurl.com/cft8yla

-China reduces 2012 silver exports by 5%, could boost prices. China has cut exports of silver by 283 tonnes from the 5,670 tonnes exported in 2011, traders suggest that less exports mean tighter markets that could eventually bolster prices. Read more here-http://tinyurl.com/7ll8wep

-Investment demand to push silver to over $50/oz by late 2012. Silver prices were expected to exceed $50/oz by the end of 2012, Thomson Reuters GFMS reported in its interim silver market review. Silver prices so far this year have averaged $35.70, a rise of 88% year-on-year. GFMS said that it expected to see silver’s bull run continue, with the average price expected to be in excess of $45/oz in 2012. Read more here-http://tinyurl.com/c8h68gt

-Silver outlook bullish for 2011 and into 2012 Thomson Reuters GFMS. This year worldwide silver investment demand is expected to reach a value of $10bn on a net basis for the first time in history. Read more here-http://tinyurl.com/7bycza5

-Silver Institute Releases Silver Investment Market Report. Read more here-http://tinyurl.com/7wmfjyx

-Hubert Moolman: Silver vs. Nasdaq. Read more here-http://tinyurl.com/cshhsag

-Al Korelin interviews GATA Chairman Bill Murphy at Silver Summit. Watch more here-http://www.gata.org/node/10680

-Dimitri Speck: Price irregularities in the silver market. Read more here-http://www.gata.org/node/10660

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CHARTS OF THE WEEK-QUOTES-QUICK HITS

-CHART OF THE WEEK: Jobs, Economy Remain Dominant Concerns for Americans. Economic issues overshadow all others as Americans’ primary concerns. Thirty-six percent say unemployment or jobs and 30% say the economy in general is the most important problem facing the United States. Only one other issue, dissatisfaction with government, is above 10%.

The ongoing concern about the economy helps explain the high level of dissatisfaction with current conditions in the United States. Now, 12% of Americans are satisfied and 86% dissatisfied with the way things are going in the U.S. Satisfaction has ranged between 11% and 13% since August, slightly above Gallup’s historical low rating of 7% in October 2008. Read more here-http://tinyurl.com/7lepxo5

-41% of People Say American Dream Is Lost; 63% Say Economy Getting Worse. Read more here-http://tinyurl.com/7d6jzu3

-CHART OF THE WEEK: Citigroup Sees U.S. ‘Stall Speed’ Risk Rising. U.S. economic growth is perilously close to a “stall speed” that increases the odds of recession, according to Nathan Sheets, Citigroup Inc.’s global head of international economics. Gross domestic product rose 1.6 percent in the third quarter from the year-ago period.

The rate of expansion in the value of goods and services produced is near a 1.5 percent pace at which growth tends to give way to contraction, Sheets wrote in a Nov. 11 report. The chart shows the historical basis for his conclusion by comparing the Commerce Department’s GDP figures with recession periods, as defined by the National Bureau of Economic Research, since 1971. Read more here-http://tinyurl.com/85t7ewy

-CHART OF THE WEEK: Oil Hits $100, Is It About To Kill The Economy Again? The big news of the day: OIl has once again hit $100 per barrel. Unfortunately this comes at a time when the economy is behaving unimpressively already. And in fact, there’s a decent history of oil price spikes preceding recessions.

It’s not every recession, and not every oil surge has caused a recession, but as you can see in this chart of monthly crude prices going back a few decades, there’s definitely a relationship between the spikes, and the grey shaded bars that indicate recession. Read more here-http://tinyurl.com/c467olm

-CHART OF THE WEEK: U.S. Crude Discount Versus Brent May End Soon. Bargain prices for a benchmark grade of U.S. crude oil may soon become a thing of the past, according to John Licata, Blue Phoenix Inc.’s chief commodity strategist. As the chart shows, the discount on West Texas Intermediate crude relative to Europe’s Brent has dwindled as much as 70 percent on futures markets since Oct. 14, when the price gap peaked at a record $27.88 a barrel. Read more here-http://tinyurl.com/6sw9k2v

-CHART OF THE WEEK: North Dakota Oil Output Approaching OPEC Level. Surging crude output in the Bakken shale formation is set to make North Dakota a bigger oil producer than OPEC member Ecuador. The chart tracks North Dakota’s production, which has almost doubled in the past two years, as Ecuadorean output has stagnated. Read more here-http://tinyurl.com/czjksbk

-CHART OF THE WEEK: Gas Prices Around The World. Read more here-http://tinyurl.com/d7q7yuc

-”Europe is in one of its toughest, perhaps the toughest hour since World War Two.” Angela Merkel-German Chancellor

-”The impact of Europe is no longer a question of isolating weakness to peripheral countries, but one of how Europe’s instability/austerity is isolated from the larger world.” Steven C. Wieting- Citigroup

-”Riots could soon be the order of the day in all the countries implementing more austerity. Insolvency would bring the same results and perhaps revolution.” Bob Chapman

-”There is definitely going to be another financial crisis around the corner, because we haven’t solved any of the things that caused the previous crisis.” Mark Mobius

-Eurozone bail-out fund has to resort to buying its own debt. Europe’s €1 trillion rescue fund has been forced to buy its own debt as outside investors become increasingly concerned about the worsening eurozone sovereign debt crisis. Read more here-http://tinyurl.com/bmesr4m

-The perils of the begging bowl: Exactly 100 years ago China was ‘rescued’ by European loans. The result was a century of misery. Now the boot is on the other foot. Read more here-http://tinyurl.com/bmqvbqy

-Greece Remaining in Euro Region Is Only Choice for Country, Papademos Says. Greek Prime Minister Lucas Papademos, charged with securing international financing to avert a collapse of the economy, said keeping the euro is the only way forward for the country. Read more here-http://tinyurl.com/7dht69f

-IMF to Wait for Political Support for Greek Funds. The International Monetary Fund won’t release the next tranche of funding for Greece until there is broad political support for the measures attached to the loan, a spokesman said. Read more here-http://tinyurl.com/6tfwbel

-Banks in U.S. Facing ‘Serious Risk‘ on Contagion From Europe, Fitch Says. U.S. banks face a “serious risk” that their creditworthiness will deteriorate if Europe’s debt crisis worsens, Fitch Ratings said. “Fitch believes that unless the euro zone debt crisis is resolved in a timely and orderly manner, the broad credit outlook for the U.S. banking industry could worsen,” the New York-based rating company said in a statement. Read more here-http://tinyurl.com/c6tnezq

-Finance Job Losses Near 200,000. Job losses in the global financial services industry this year are close to surpassing 200,000 as Citigroup Inc., France’s BNP Paribas SA and Bank of America Corp. eliminate employees to reduce costs. Read more here-http://tinyurl.com/77fnhed

-Federal debt tops $15 trillion. The Treasury Department said Wednesday that federal debt now tops $15 trillion a staggering figure that has risen precipitously over the last decade. The exact debt total stood at $15.034 trillion as of the end of business Tuesday, an increase of $56 billion over Monday’s tally. All told, federal debt has risen $4.41 trillion since President Obama took office, and is nearly triple the size of the debt in 2001, when President George W. Bush landed in the White House. Read more here-http://tinyurl.com/84z2t3x

-Lance Roberts: US Debt To GDP Hits 98.9% And Rising. Read more here-http://tinyurl.com/7wpby5f

-House Approves Measure to Head Off Shutdown. The U.S. House approved a $182 billion budget measure to keep federal agencies operating past tomorrow. Read more here-http://tinyurl.com/79jp5uy

-Fed Now Largest Owner of U.S. Gov’t Debt Surpassing China. Over the past year, as the Federal Reserve massively increased its holdings of U.S. Treasury securities and entities in China marginally decreased theirs, the Fed surpassed the Chinese as the top owner of publicly held U.S. government debt. In its latest monthly report, the Federal Reserve said that as of Sept. 28, it owned $1.665 trillion in U.S. Treasury securities. That was more than double the $812 billion in U.S. Treasury securities the Fed said it owned as of Sept. 29, 2010. Read more here-http://tinyurl.com/cdnyy59

-China’s Dagong May Cut U.S. Credit Rating Again If It Adopts QE3 Program. China’s Dagong Global Credit Rating Co. may cut the U.S.’s sovereign rating for the second time since August if the world’s biggest economy conducts more large-scale asset purchases. Read more here-http://tinyurl.com/d6k5yqp

-Fed Economists: 2012 Recession Odds Top 50%. The odds of a U.S. recession in early 2012 exceed 50 percent as a result of Europe’s debt crisis, according to researchers at the Federal Reserve Bank of San Francisco. “Prudence suggests that the fragile state of the U.S. economy would not easily withstand turbulence coming across the Atlantic,” economist Travis Berge, research associate Early Elias and research advisor Oscar Jorda wrote in a paper released by the bank. “A European sovereign debt default may well sink the United States back into recession.” Read more here-http://tinyurl.com/6nk7cza

-Pimco CEO: U.S. Risks a Lost Decade. Pimco CEO, Mohamed El-Erian, explains why the U.S. risks an economic decline worse than Japan’s. Watch more here-http://tinyurl.com/c2p5ln8

-U.S. boosts estimate of auto bailout losses to $23.6B. Read more here-http://tinyurl.com/7jvoacp

-U.S. Postal Service reports massive $5 billion loss. Read more here-http://tinyurl.com/7wrpzns

-Will FHA be the next big government bailout? Read more here-http://tinyurl.com/chx4st6

-Fannie, Freddie execs score $100 million payday. Mortgage finance giants Fannie Mae and Freddie Mac received the biggest federal bailout of the financial crisis. And nearly $100 million of those tax dollars went to lucrative pay packages for top executives, filings show. The top five executives at Fannie Mae received $33.3 million in 2009 and 2010, while the top five at Freddie Mac received $28.1 million.

And each company has set pay targets of as much as $17 million for its top managers for 2011. That’s a total of $95.4 million, which will essentially be coming from taxpayers, who have been keeping the mortgage finance giants alive with regular quarterly cash infusions since the Federal Home Finance Agency (FHFA) took control of the companies in September 2008. Read more here-http://tinyurl.com/7rbs5xz

-Brent oil price could hit $200 a barrel if Iran nuclear facilities targeted. Brent oil prices could well hit $200 a barrel on rising political tensions in the Middle East if occupying regime of Israel makes a decision to attack Iran’s nuclear facilities.

The main worry among crude oil traders is that Israel launches a unilateral surprise attack to try to destroy Iran’s nuclear facilities and that Iran retaliates by closing, even if only briefly, the oil flow through the Strait of Hormuz. The strait is important because 15.5 million barrels per day of oil passes through it each day, equivalent to a third of the all seaborne traded oil. The strait has added significance because all the world’s spare production capacity, the first line of defense against supply disruptions, is in Saudi Arabia, the United Arab Emirates and Kuwait.

These exports would be constrained if the gateway was closed. “It is the $200 a barrel scenario.” says Philip Verleger, an independent consultant who correctly predicted in August 1990 the price rally after Iraq invaded Kuwait. Read more here-http://tinyurl.com/7d83jkq

-Keystone XL May Be Approved in 6 to 9 Months. Read more here-http://tinyurl.com/ckextg5

-India’s Inflation Exceeds 9% for 11th Month, Reducing Scope for Rate Pause. Read more here-http://tinyurl.com/7le9qyz

-Solar Glut Worsens as Supply Surge Cuts Prices 93%. The cost of solar cells and microchips has nowhere to go but down because of a supply glut for the commodity they’re made from, a brittle charcoal-colored semiconductor baked in ovens at 600 degrees centigrade. Read more here-http://tinyurl.com/c4dc869

-David Rosenberg On The Depression, The ECB, MF Global As A Canary In The Coalmine. All With A Surprise Ending. Read more here-http://tinyurl.com/csk5qx5

-60 Minutes: Congress Trading stock on inside information? Read and watch more here-http://tinyurl.com/d2rvhfn

-$400,000 prize offered to break up the Euro. Read more here-http://tinyurl.com/cvxjzfy

-Why Americans Won’t Do Dirty Jobs. Read more here-http://tinyurl.com/dx5hayz

-Young American Farmers Are On The Brink Of Extinction. Read more here-http://tinyurl.com/d43rkuv

-Infographic: Why Living In New York City Is Insanely Expensive. See more here-http://tinyurl.com/ckgfvmc

-80 is the new 65 when it comes to retirement, survey says. Read more here-http://tinyurl.com/7smovyf

-Middle-class areas shrinking in US: study. Read more here-http://tinyurl.com/6okaocx

-Thanksgiving Meal Cost Jumps 13% on Pricey Turkeys. The cost of a Thanksgiving dinner in the U.S. will jump 13 percent this year, the biggest gain in two decades, as prices rose for everything from turkey to green peas to milk, the American Farm Bureau Federation said.

A meal for 10 people on the holiday, which falls on Nov. 24 this year, will rise to $49.20 from $43.47 last year, the biggest increase since 1990, based on foods traditionally served including stuffing and pumpkin pie, the farm group said today in a release. Turkey was the most expensive and had the biggest gain, with a 16-pound bird up 22 percent at $21.57.

Thanksgiving meal costs are up more than the pace of food inflation in the U.S., where the government forecasts prices will increase 3.5 percent to 4.5 percent this year, the fastest since 2008. Rising commodity and energy prices boosted the cost of food eaten at home by 6.3 percent in September compared with a year earlier, according to data from the Census Bureau. Read more here-http://tinyurl.com/7e7e6np

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RARECOLOREDDIAMONDS.COM

-The Rare Colored Diamonds Historical Value Tracker system is the perfect tool for investors to view the potential future value of a rare colored diamond based on the current market trend of a particular type of diamond. Track the potential future value of colored diamonds here-http://tinyurl.com/6l4thaf

-Watch BTV interview’s of Harold Seigel on colored diamonds. Watch video here-http://tinyurl.com/62gx3du and http://tinyurl.com/6dqhwx8

-Rarecolorediamonds.com Featured Diamond of the Week. This week’s Diamond is a .24ct emerald cut fancy intense pink Argyle Diamond. Emerald cuts are very rare and the color of this diamond is very intense. Argyle pink Diamonds are an excellent investment, with the mine closing by 2018 this diamond will appreciate in value. Harold Seigel-See video of the Diamond here-http://tinyurl.com/6g37q2r

-”There are certain categories of object like rare diamonds that have a supernatural life of their own. These seem to be burning white hot at the moment with so much turmoil in the other markets.” Geoffrey Munn-Managing Director of the London jewelers Wartski

-”Sun-Drop Diamond” fetches record price at auction. A huge yellow diamond known as the “Sun-Drop Diamond” sold for 11.28 million Swiss francs or $12.36 million, a world record for a yellow diamond, at auction on Tuesday, Sotheby’s said. The yellow diamond was discovered in South Africa last year and cut and polished by New York-based Cora International which put it up for sale, Sotheby’s said. The stone had a pre-sale estimate of $11-15 million.

The buyer is a private individual who wished to remain anonymous. “It sold for a record for a yellow diamond. It was exactly within our expectation for this spectacular stone,” David Bennett, chairman of Sotheby’s jewellery department in Europe and the Middle East, told reporters after conducting the sale. “I don’t really see any crisis here at all. We sold nearly every one of the big diamonds within our expectations,” said Bennett.

“It proves the resilience of the diamond market in a time of uncertainty,” he said. The third top lot was a 4.16-carat, fancy vivid blue diamond ring, which sold to an Asian private buyer for $4.3 million or $1.02 million per carat. Yellow diamonds have become more rare and are fetching higher prices, said Hoda Esphahani, president of South African Diamond Corporation.

“I bought two yellows, one an unmounted cushion-shaped old stone and another a fancy vivid yellow set in a simple ring,” Esphahani told Reuters. “I think top vivid diamonds are still now underpriced. I think they will go much higher because they are rare,” she said. Johnny Kneller, the Antwerp-based CEO of SAFDICO, told Reuters: “The market is very hot. Times elsewhere are very bad, the world economy is very bad. But diamonds and are very much in demand and prices are quite high.” Read more here-http://tinyurl.com/d9cwf5a

- Geneva Auction Nets $61M. A cushion-shape, 79-carat, VS1, fancy yellow diamond ring sold for $3 million or $38,000 per carat. A gray diamond weighing 10.67 carats, which had been estimated at $120,000-200,000, soared to $1.19 million, a world record price for a gray diamond. Read more here-http://tinyurl.com/76y2dbo

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REAL ESTATE

-Real Estate: Why home prices won’t bottom out. Watching the U.S. home market struggle to rebound is like listening to children in the back of a car. No, we’re not there yet. Read more here-http://tinyurl.com/737fyjc

-U.S. ‘Underwater’ Homeowners Rises to 28.6%. The number of U.S. homeowners who owe more than their properties are worth climbed in the third quarter as lenders repossessed fewer houses, Zillow Inc. said. The share of borrowers with negative equity rose to 28.6 percent, up from 26.8 percent in the second quarter and 23.2 percent a year earlier, the real estate data provider said today. Last quarter’s portion was the biggest since Seattle based Zillow began tracking the measure in the first quarter of 2009, when 22.3 percent of households were underwater. Read more here-http://tinyurl.com/c5n4qo2

-Foreclosure Filings in U.S. Increase 7%. U.S. foreclosure filings rose 7 percent in October to a seven-month high as lenders started to speed up action against delinquent borrowers after a yearlong review into documentation, according to RealtyTrac Inc. Read more here-http://tinyurl.com/cmqohsv

-Foreclosure backlogs could take decades to clear out. Foreclosure sales are moving so slowly in half the states that at the current pace, it will take more than eight years on average to clear the 2.1 million homes in foreclosure or with seriously delinquent mortgages, new research shows.

In New York and New Jersey, where courts imposed new rules last fall, it would take lenders more than 50 years at their current pace to clear pipelines of homes that are seriously delinquent or already in the foreclosure process, according to LPS Applied Analytics, which collects data on nearly 40 million mortgage loans.

In Connecticut and Maryland, it would take about two decades. In Illinois and Florida, 10 and eight years, respectively. The process is moving faster in other states, where courts aren’t typically involved. In those, the time to clear foreclosure pipelines even if no other homes fall into foreclosure has remained at just under three years. Read more here-http://tinyurl.com/brxbn9f

-They Walked Away, and They’re Glad They Did. Read more here-http://tinyurl.com/bq8prxv

-Hotel Foreclosures to Have ‘Huge Increase,’ Sonnenblick Says. There will be a “huge increase’” in U.S. hotel foreclosures next year as debts come due and little financing is available, said Robert Sonnenblick, a hotel developer. Read more here-http://tinyurl.com/cns3dyg

-Mortgage rates lowest in decades, but few qualify. Mortgage rates have reached their lowest levels in six decades, making this the best time in most Americans’ lives to buy or refinance a home. For people who qualify, today’s rates could save thousands of dollars a year. Yet most people can’t take advantage.

Half of would-be buyers say they’ll never save enough for the 20 percent down payment now usually required. And shrunken home values have erased much of the equity people need to refinance.

“Low rates are great, but the real issue is that the pool of people who can get a loan or refinance is small,” said Greg McBride, Bankrate.com’s senior financial analyst. Read more here-http://tinyurl.com/cbvwama

-Sanford Weill Lists NYC Penthouse for Record $88M. Sanford Weill, the former chairman of Citigroup Inc. (C), put his Manhattan penthouse up for sale for $88 million, a potential record price for a home in the city. The 6,744-square-foot, full-floor condominium at 15 Central Park West was listed on the website of brokerage Brown Harris Stevens. Weill and his wife, Joan, paid $43.7 million for the property in 2007, according to city records. Read more here-http://tinyurl.com/8axxtju

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© 2013, Worldwide Precious Metals Canada Ltd.
www.wwpmc.com

The World Financial Report – November 22th, 2011
Posted by Worldwide Precious Metals on Tuesday, November 22, 2011


The World Financial Report – November 15th, 2011

November 15, 2011

GOLD

-“The conditions are perfect for gold.” “We have unprecedented levels of risk in markets. We still have ultra-loose monetary policy and the debasing of currencies. That’s obviously bullish for gold.” Mark O’Byrne-Goldcore

-”The buyer of gold is somebody who doesn’t trust the government to do the right thing. But there are good reasons not to trust governments today.” Jean Marie Eveillard

-Ron Paul: Gold Could Go to ‘Infinity.’ Read more here-http://video.cnbc.com/gallery/?video=3000056182

-Ben Davies: Gold & Silver to Hit New Highs Within Months. When asked about the action in gold and silver, Davies remarked, “No doubt we cleared the market from the correction over the last month. In many ways you can say that we are responding to the easing of financial conditions by central banks around the world, from the ECB to the Swiss, to the Australians.

All have cut by 25 basis points or are indicating they will supply more currency to the markets.”

All of this continues to underpin gold. Gold feels like it is grinding higher. Short-term it is overbought, but it’s managing to work off the overbought condition as the days go by and it feels like it’s ready to release higher, back up into the $1,800s.

Gold appears ready to resume trading back in the zone where it always should have been trading before the central bank intervention. There is indifference towards the metals as they have gone off the radar. There is shrugging of the shoulders as individuals and naysayers resign themselves to the reality that gold is firmly a part of the new monetary regime to come.

With Greek two year bonds at almost 90%, it really is only a matter of time before the Greeks decide voluntarily or involuntarily to leave the Euro zone. The only question that remains is who will be next? All of this is bullish for gold going forward and will continue to underpin the market, despite the skepticism.” Read more here-http://tinyurl.com/7vxyzpe

-Jean Marie Eveillard: I think the long-term secular case for gold is still in place. Some people say after an eleven or twelve year bull market, aren’t we in a bubble? There is nothing to say that after twelve years the bull market is over. Look at the bull market in Treasury notes and bonds, it’s thirty years old. So there is no particular length of time that implies that a bull market or bear market is over.”

When asked about the continued money printing, Eveillard replied, To a large extent it makes the case for gold as a substitute currency because all currencies have become suspect. The Americans are printing, the European Central Bank also has been printing and the Swiss National Bank has been printing by trying to fix the Swiss franc to the euro. Japan may print money.

They are all printing and people say, Well, the price of gold has moved up considerably over the past 12 years. I say, Yes, but even at above $1,700 gold it’s still a case of too much paper, too much debt and too little stuff with stuff being the only hard currency which is gold. Read more here-http://tinyurl.com/43p4wah

-Rick Rule: Here is Why You Will See $2,500 Gold. I believe we are going to see continued volatility. So $40 and $50 up-moves and down-moves are background noise. I think gold goes higher, it probably goes substantially higher over the next 12 months. In order to be a successful investor you need to look out 12 to 18 months and try to anticipate events that are more likely than not to occur. 12 to 18 months from now $2,500 gold wouldn’t surprise me, it’s not out of line. But given how wobbly the world is, I think the bias in gold is higher because the bias in fiat currencies is lower.” Read more here-http://tinyurl.com/774tele

-Robin Griffiths: Gold Update. “There is no euphoria in the gold market at the moment. It’s not an over-owned trade. There are still a few gold bugs and prudent people who are using gold as a hedge against paper money being overprinted, but we are nowhere near the exponential, runaway move yet. If gold were to fall back again, I would be willing to buy more and I do think that in the early part of next year we will be above $2,000. As you know, over time I have gold going hundreds of percent higher from here. Read more here-http://tinyurl.com/43pftf4

-Louise Yamada: Gold & Silver Report. Read more here-http://tinyurl.com/3mw2ksk

-John Hathaway: Generation of Gold Analysts Out to Lunch. Read more here-http://tinyurl.com/3nas72m

-Stephen Leeb: Gold Update. “I think gold is just confirming a breakout here. We have clearly had a breakout and I would not be at all surprised to see gold finish the year at $2,000. Investors are slowly coming to believe that QE3 is on the way and with inflation already close to 4%, you are starting to look at very ,very high inflation.”

“You have no safe currencies that are left, other than gold. There is nothing else that people are comfortable holding. As long as resource scarcity is there, and everything I look at says it’s there and getting worse by the day, you haven’t seen anything yet with regards to gold. Before this is over it will be a huge bull market in gold. We will have to add another digit to the gold price. Every day that goes by makes that ever more likely. Read more here-http://tinyurl.com/7e4swgr

-Michael Pento: Central Banks Sending Clear Buy Signal on Gold. It seems obvious to me that central bankers care very little for the value of their currencies and concentrate much more on the health of the banking sector. Investors would fare far better if they, in turn, concentrated on central bankers’ actions rather than their words. And their actions right now are clearly sending a buy signal on gold. Read more here-http://tinyurl.com/7knuq4z

-Michael Pento: Fed Members Think QE3 Absolutely Necessary. Read more here-http://tinyurl.com/c8ykrry

-Lawrence Williams: 30% year on year price growth for gold as economic instability continues. The latest economic news out of the Euro zone is hardly conducive to light at the end of the global economic imbroglio and thus gold and silver would seem likely to continue a steady upwards path overall.

So for the moment gold, and by association silver, looks to have a positive outlook for some time to come. We are more of the opinion that any increase in price will be steady rather than spectacular and one can’t rule out a 30% year on year rise continuing, with the occasional upwards and downwards spike, until the world is seen to have put its current economic meltdown behind it, could yet be some years away. Read more here-http://tinyurl.com/crxnkom

-Clive Maund: Gold Market Update. Read more here-http://tinyurl.com/ctuw5os

-Frank Holmes: 3 Drivers, 2 Months, 1 Gold Rally? Read more here-http://tinyurl.com/d4menum

-Peter Schiff: The Politics of Gold Investment. Read more here-http://tinyurl.com/d6bno4f

-Jim Rickards: Gold Price Suppression Will Fail Soon. Read more here-http://tinyurl.com/c5lo5aj

-HSBC: Gold to average $2025 an ounce during very volatile 2012. HSBC analyst, James Steel says the group expects the yellow metal to trade between $1,700 and $2,300 next year as safe haven buying returns and the risk on, risk off scenario continues. Read more here-http://tinyurl.com/bputg2f

-The more Western central banks pound gold down, the more China buys. Chinese gold imports from Hong Kong, a proxy for the country’s overall overseas buying, leapt to a record high in September, when monthly purchases matched almost half that for the whole of 2010. Analysts expect the September import surge to continue until the end of the year as Chinese gold buyers snap up gold in advance of Chinese New Year, China’s key gold-buying period. Read more here-http://www.gata.org/node/10650

-European bailout fund reported to want to grab Germany’s gold. Read more here-http://www.gata.org/node/10646

-German economy minister concurs that gold can’t be touched. Read more here-http://www.gata.org/node/10648

-Financial Times Deutschland joins hunt for Germany’s gold. Read more here-http://www.gata.org/node/10656

-Nigel Farage: Where is Europe’s Gold? Read more here-http://tinyurl.com/7etjdth

-Financial writer Gerald Celente interviewed by Alasdair Macleod for GoldMoney. Watch more here-http://www.gata.org/node/10634

-Canada’s Mile of Gold regains its luster. Read more here-http://www.gata.org/node/10641

-Markets mustn’t learn about our gold transactions, Bank of England says. Read more here-http://www.gata.org/node/10635

-British can petition Bank of England to come clean on gold swaps and leases. Read more here-http://www.gata.org/node/10640

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SILVER

Gold to silver ratio at 50 to 1 with gold at $2,000 the silver price would be $40.00

Gold to silver ratio at 40 to 1 with gold at $2,000 the silver price would be $50.00

Gold to silver ratio at 30 to 1 with gold at $2,000 the silver price would be $66.67

Gold to silver ratio at 20 to 1 with gold at $2,000 the silver price would be $100.00

Gold to silver ratio at 15 to 1 with gold at $2,000 the silver price would be $133.33

Gold to silver ratio at 50 to 1 with gold at $2,500 the silver price would be $50.00

Gold to silver ratio at 40 to 1 with gold at $2,500 the silver price would be $62.50

Gold to silver ratio at 30 to 1 with gold at $2,500 the silver price would be $83.33

Gold to silver ratio at 20 to 1 with gold at $2,500 the silver price would be $125.00

Gold to silver ratio at 15 to 1 with gold at $2,500 the silver price would be $166.67

-”With silver, I’d rather be a month early than a minute too late. Smart money buyers have quietly added in size to their positions on the latest price weakness. All the technical pieces are falling into place, to help you multiply your wealth with silver.” Morris Hubbartt

-John Embry: Expect $70 Silver Within Months. If you look at silver there is no bullish sentiment. The reason for this is up until now there has been a wall of paper selling that’s keeping silver trading below $35, and silver has been subject to a couple of vicious attacks recently. So I think people are uncomfortable, but at the same time people who buy physical silver, that’s all I buy, we’re delighted.

I mean it’s hard to get silver and you have to pay premiums for it. The real price of silver is in the physical market. This paper market is a complete and utter sham and when the paper market it broken, and I think we’re close to that happening, silver will double overnight into the $60 to $70 area and that could happen within months.” Read more here-http://tinyurl.com/79ppvgf

-James Turk: Interview with Eric Sprott in Munich. Read more here-http://tinyurl.com/cz3qvmg

-Robin Griffiths: Silver is a Ten or Twenty Bagger From Here. Until there is more confidence in gold, I don’t think you will find runaway confidence in silver. So on the slightly fickle trading swings it is just the higher beta play. I believe going forward that silver will be a ten or twenty bagger, one just has to tolerate the short-term volatility. Capturing the short-term volatility is so hard to do, so I basically buy silver on the big dips. In other words, just live through the volatility. I don’t know of a better way of handling it than that. Read more here-http://tinyurl.com/43pftf4

-Ben Davies: Silver Update. Silver, as ever is an interesting dynamic. I believe that the MF Global margin calls caused some damage to silver last week. I also believe that was your last chance to buy silver before we take a run at the $50 highs and even higher over the next few months. Read more here-http://tinyurl.com/7vxyzpe

-Jean Marie Eveillard: Since I tend to look at gold as substitute currency, I am more interested in gold than I am in silver, but I recognize, I acknowledge the fact that maybe there is more money to be made in the future in silver than there is in gold.” Read more here-http://tinyurl.com/43p4wah

-Stephen Leeb: This Will Drive Silver to $100 Rapidly. Here’s silver near $35, up from $20, so it’s up 75% in price in just over a year and people are bearish. To me this just means that silver is going dramatically higher. Solar is already taking 11% of silver production. How long before it takes 100%?

Solar is just on the tarmac, solar hasn’t even taken off. And we are not even talking about silver as a monetary metal. That’s basically silver’s history, that of being a monetary metal. So the question is what drives the price of silver to $100 more rapidly, monetary or industrial use or some combination?

“I’m very surprised to see a metal that is up 75% in just over a year that has very low sentiment readings. The fact that no one likes silver is even more reason to expect this thing could explode. Silver could break $50 much faster than people think. I think people are going to be stunned and still scratching their heads when they see silver go over $50, as if it weren’t even resistance.” Read more here-http://tinyurl.com/7e4swgr

-Rick Rule: Silver Update. I’m constructive towards silver. We are at the peak of buying associated with the end of Indian Festival Season. So we might experience lower physical buying coming off of that. I would also note, however, that Chinese physical demand has been extremely strong.

I’m very encouraged by what you described, which is the lack of bullish sentiment with regards to silver. My experience is that when people express a fondness for something they are already long. The fact that you have very weak sentiment means that there are probably a lot of people looking to get panicked into a market, especially if it starts to shoot higher. Read more here-http://tinyurl.com/774tele

-Clive Maund: Silver Market Update. Read more here-http://tinyurl.com/dyr8fxw

-Whistleblower Maguire, Silver Manipulation Still Ongoing. Read more here-http://tinyurl.com/3h85a4g

-Bart Chilton: There is Manipulation in the Silver Market. With many lawsuits having been filed against JP Morgan for alleged manipulation of the silver market, King World News interviewed CFTC Commissioner Bart Chilton. Commissioner Chilton was incredibly candid throughout the entire interview. As an example, when asked if there is nefarious activity (manipulation) going on or that has gone on in the silver market, Chilton responded, “I think there has been. I talked last year about this, I urged the agency to say something. Read more here-http://tinyurl.com/3oboxbm

-Bart Chilton: MF Global Disaster Should Not Have Happened. Read more here-http://tinyurl.com/3pjello

-Wall Street Journal: Where was the CFTC? Read more here-http://www.gata.org/node/10633

-GATA: CFTC’s evasion after 3 years investigating silver is answer enough. Read more here-http://www.gata.org/node/10638

-Dorothy Kosich: CFTC says silver market investigation ongoing since 2008. In spite of 2004 and 2008 investigations determining no illegal activity in the silver futures market, the CFTC says it has been continuing to investigate the issue since late 2008. Read more here-http://tinyurl.com/d7whxha

-CFTC issues update on long-running silver probe. Read more here-http://www.gata.org/node/10639

-Weekly precious metals review at King World News. Listen here-http://www.gata.org/node/10642

-Zero Hedge: Futures trading margin to get looser, not tighter. Read more here-http://www.gata.org/node/10643

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CHARTS OF THE WEEK-QUOTES-QUICK HITS

-CHART OF THE WEEK: The Fed Has Done Wonders For Traders, Savers Not So Much. There are clear winners and losers to Federal Reserve’s strongly accommodative monetary policy. According to investor Doug Short, “The past three years have been an exciting time for many professional traders and their seasoned amateur counterparts.

And it’s been a dream-come-true for institutional HFT (high frequency trading) with computerized algorithms.” But your average with investments in CDs, Treasury yields, and FDIC insured money markets have clearly lost out. What’s clear is that during periods of QE or various forms of easing (shaded in green) equities have done quite well. Read more here-http://tinyurl.com/c7ptyd9

-CHART OF THE WEEK: Insider selling on the rise. Bear signal? Stocks may have put up their best performance in years last month, and it looks like company insiders decided to cash in. In fact, there were almost $19 worth of insider stock sales in October for every $1 of insider buys, according to market research firm TrimTabs. That was way up from near record low levels of insider selling between $2 and $4 of sales for every $1 of insider buying in August and September. Read more here-http://tinyurl.com/7nodgwd

-“Italy’s debt woes signal a new, even more dangerous phase in Europe’s debt crisis.” Mohamed El-Erian-Co-CIO at PIMCO

-“The combination of the ECB’s bold moves and 4 trillion Euros in unencumbered collateral at European banks should ensure that there is no European equivalent of Lehman.” However, measures that avoid disaster are not necessarily sufficient to promote recovery.” Mark Carney-Bank of Canada Governor

-“You need 200,000 jobs basically a month, and we are not seeing that, to reduce unemployment. So it would suggest the 9 percent number is going to be with us for a long, long time. We are facing structural headwinds that have relatively little to do with a cyclical rebound.” Bill Gross-PIMCO

-James Turk: Expect Cataclysmic Events in the Coming Weeks. “We had a major development here in Europe today (Nov 9th). Yields on the ten year Italian bond soared to over 7%. The 7% hurdle is considered critical because once Greece and Ireland went over 7%, they turned to the EU for a bail out. So the thinking now is that Italy needs a bail out too, but here’s the problem.

Italy has two trillion Euros of debt. That’s greater than the total amount of debt owned by Greece, Ireland, Portugal and Spain combined. It’s the fourth largest amount of debt in the world. It’s estimated that over half of this is owned by banks around the world. Four hundred billion Euros of it is owned by the French banks alone. As I mentioned in a previous interview here, they can no longer kick the can down the road because it’s become a two ton boulder.

Clearly the two percent plus drop today by the euro against the US dollar is a warning sign that a major crisis is brewing. I mentioned before that the Dexia and MF Global collapses are not the Lehman event I’ve been expecting before year end. But the markets are telling us that a major crisis is now brewing. So be prepared for another Lehman type of collapse which will bring the financial structure to its knees. The media has been portraying these problems as a crisis of capitalism, but they have it completely wrong.

What we’re witnessing is a crisis of socialism. Governments have been making far too many promises which have been based on borrowed money coming mainly from the banks. The banks were foolish to make all of these loans, but we’ve seen this behavior before. Back in the 1970s, banks made huge loans to various countries, particularly in Latin America. The Chairman of Citibank received a lot of ridicule when he said, ‘Countries don’t go bankrupt’ and because the formal bankruptcy was not declared, a lot of those loans had to be written off.

This bring us to Italy. The EU and the IMF telling Italy that it must adopt austerity measures is advice that comes about five years too late. The Italian government cannot cut enough or fast enough to improve their financial picture. The bottom line is the fallout from Italy is going to get very bad very quickly. Read more here-http://tinyurl.com/75h8cql

-IMF’s Lagarde Warns of Risk of ‘Lost Decade.’ International Monetary Fund Managing Director Christine Lagarde warned of the risk of a “lost decade” for the global economy unless nations act together to counter threats to growth. “In our increasingly interconnected world, no country or region can go it alone,” Lagarde said in a speech to a forum in Beijing. “There are dark clouds gathering in the global economy.” Read more here-http://tinyurl.com/7p4br3j

-U.S. Approaches $15 Trillion Debt Limit. It will be the latest sobering economic milestone that few were hoping to see: The U.S. national debt any day now will soar above the $15 trillion mark. As of this writing, the total debt is $14.97 trillion, so moving beyond the symbolic $15 trillion is a foregone conclusion. When the unwelcome milestone is reached, it will come at a volatile time both in this country and abroad. Read more here-http://tinyurl.com/42q98gu

-U.S. Debt Clock. See more here-http://tinyurl.com/p3n6la

-Canadian Debt Clock. See more here-http://tinyurl.com/nefpoq

-U.S. Government starts fiscal 2012 with deficit. The federal government started fiscal 2012 the same way it ended 2011 in the red. The government ran a $95 billion deficit in October, the first month of the new fiscal year, according to preliminary estimates from the Congressional Budget Office, marking the 37th straight month the government has taken in less than it spent. Read more here-http://tinyurl.com/83qcoad

-Debt Panel at ‘Impasse’ as Dems Reject GOP Plan. A dispute has stalled efforts to reach agreement on a $1.2 trillion deficit-cutting plan by the super committee as the 12-member bipartisan panel approaches its Nov. 23 deadline. Read more here-http://tinyurl.com/d8uotox

-Jefferson County Files Biggest U.S. Municipal Bankruptcy. Jefferson County, Alabama, filed the biggest U.S. municipal bankruptcy after an agreement among elected officials and investors to refinance $3.1 billion in sewer bonds fell apart. The county, home to Birmingham, the state’s most-populous city, listed assets and debt of more than $1 billion in Chapter 9 papers filed in U.S. Bankruptcy Court in Birmingham. Read more here-http://tinyurl.com/bskjatb and http://tinyurl.com/cob8225

-Fannie Mae Seeks $7.8 Billion in Aid After Reporting Loss. Fannie Mae, one of two mortgage companies operating under U.S. conservatorship, said it will seek $7.8 billion in Treasury Department aid after reporting a third-quarter loss. The government-sponsored enterprise had a net loss of $5.1 billion for the three-month period that ended Sept. 30, driven by defaults on loans made before 2009 and derivative losses linked to a decline in interest rates, according to a Securities and Exchange Commission filing. Read more here-http://tinyurl.com/7pb9mmw

-Nebraska, Utah Banks Closed as U.S. Failures This Year Reach 87. State banking officials shut lenders in Nebraska and Utah and named the Federal Deposit Insurance Corp. as receiver, pushing this year’s U.S. failure count to 87. Regulators closed Omaha, Nebraska-based Mid City Bank Inc. and SunFirst Bank of Saint George, Utah, according to statements on the FDIC’s website. The two closures drained $62.4 million from the agency’s deposit-insurance fund. Read more here-http://tinyurl.com/d6zmndy

-How Much Money Did Angry Customers Moved Out Of Banks In Support Of Bank Transfer Day? October alone Credit Unions around the U.S. gained 650,000 new customers and $4.5 billion was moved out of major banks. Read more here-http://tinyurl.com/d5so5c9

-CHART OF THE WEEK: Older Americans are 47 times richer than young. One of the most basic tenets of the American Dream is being called into question by recent economic data. Can each new generation do better than the one before it? So far, today’s young people aren’t off to an encouraging start.

According to analysis by the Pew Research Center, younger Americans have been left behind as the oldest generation has seen wealth surge since the mid-1980s. In 1984, households headed by people age 65 and older were worth just 10 times the median net worth of households headed by people 35 and younger. But now that gap has widened to 47-to-one, marking the largest wealth gap ever recorded between the two age groups. Read more here-http://tinyurl.com/c5ar244

-Recession Drives More Americans to Poverty Wracked Neighborhoods. The number of Americans living in neighborhoods beset by extreme poverty surged in the last decade, erasing the progress of the 1990s, with the poorest areas growing more than twice as fast in suburbs as in cities.

At least 2.2 million more Americans, a 33 percent jump since 2000, live in neighborhoods where the poverty rate is 40 percent or higher, according to a study released by the Washington-based Brookings Institution. Read more here-http://tinyurl.com/87r4w2g

-CHART OF THE WEEK: Poverty rate rises under alternate Census measure. There were more than 49 million Americans living in poverty in 2010, under an alternative measure released by the Census Bureau. That’s 16% of the nation, higher than the official poverty rate of 15.2%. The official rate, released in September, showed 46.6 million people living in poverty. Read more here-http://tinyurl.com/cwx6sf3

-23 Mind-Blowing Facts About Inequality In America. Read more here-http://tinyurl.com/7exkk2y

-’I'm home!’ Adult children move back in. With job openings scarce, getting adult children to leave the nest is becoming a lot more difficult. The number of adult children who live with their parents, especially young males, has soared since the economy started heading south. Among males age 25 to 34, 19% live with their parents today, a 5 percentage point increase from 2005, according to Census data released Thursday. Read more here-http://tinyurl.com/7r5vnkf

-London Bankers See Wealth Gap. Three-quarters of London financial professionals said the gap between rich and poor is too big, according to a report by the St. Paul’s Institute, a church group that seeks to engage banks with moral questions. Read more here-http://tinyurl.com/85uspt3

-Meet The Heirs And Heiresses To The World’s Oldest Billionaires. Read more here-http://tinyurl.com/c93cuvv

-DC leads list of most shopaholic cities in America and New York doesn’t even make it into top ten. Read more here-http://tinyurl.com/bwbfmdo

-Taxi Licenses Outperform Stocks, Oil and Gold. The surging price of New York’s taxi medallions and their promise of steady cash flows have sparked investor interest in the licenses and bolstered shares of a company that finances their purchase to a four-year high. Read more here-http://tinyurl.com/75gvy4x

-Infographic: How Much Does It Really Cost To Drive To Work? See more here-http://tinyurl.com/3luvxgq

-The Extraordinary Popular Delusion of Bubble Spotting. Read more here-http://tinyurl.com/cz8p3ak

-Fukushima Cleanup Bill $14B Over 30 Years. Contaminated material from Japan’s wrecked Fukushima nuclear plant will be collected over 30 years and stored at a secure site at a cost of 1.1 trillion yen ($14 billion), according to the country’s environment ministry. Read more here-http://tinyurl.com/c4fhdgj

-Cuba Lets Residents Sell Real Estate as Castro Eases Control Over Economy. Cuba’s communist government lifted a half-century ban on residents buying and selling property as President Raul Castro eases state control over the economy. For the first time since the country’s 1959 revolution, Cubans will be able to own their main residence and one in the country.

The changes were already approved by the National Assembly and take effect Nov. 10. Easing of restriction on property ownership may spur real estate development that is needed to overcome a housing shortage that affects nearly 1 million people, said Jose Manuel Palli, the director of Miami-based U.S. Cuba Legal Forum. “This is an important first step,” Manuel said in a phone interview. “Cuba has needed to do this for years.” Read more here-http://tinyurl.com/cw8kasz

-China Credit Squeeze Prompts Suicides. Hours after a creditor and his gang of tattooed thugs hustled Zhong Maojin into a coffee shop in Wenzhou, he says he wouldn’t yield to their demands. Read more here-http://tinyurl.com/7asbptz

-Feds concerned about hackers opening prison doors. Federal authorities are concerned about new research showing U.S. prisons are vulnerable to computer hackers, who could remotely open cell doors to aid jailbreaks. Read more here-http://tinyurl.com/3u33nej

-China is World’s Biggest Cyber Thief: U.S. Report. U.S. intelligence officials called China the world’s biggest perpetrator of economic espionage in a report that says the theft of sensitive data in cyberspace is accelerating. Hackers and illicit programmers in China and Russia are pursuing American technology and industrial secrets, jeopardizing an estimated $398 billion in U.S. research spending, according to the report released today by the National Counterintelligence Executive, the agency responsible for countering foreign spying on the U.S. government. Read more here-http://tinyurl.com/3zrfq24

-Lichtenstein Work Sets $43M Record at Christie’s. Roy Lichtenstein’s 1961 painting of a man looking through a peephole sold for $43.2 million last night in New York, one of 13 records set at an auction of contemporary art by Christie’s International. Read more here-http://tinyurl.com/bwkz5mk

-Driving the one-and-only electric Rolls-Royce. Read more here-http://tinyurl.com/brhelfn

-Green Bay Packers to sell stock to fans. Read more here-http://tinyurl.com/7drocpk

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RARECOLOREDDIAMONDS.COM

-The Rare Colored Diamonds Historical Value Tracker system is the perfect tool for investors to view the potential future value of a rare colored diamond based on the current market trend of a particular type of diamond. Track the potential future value of colored diamonds here-http://tinyurl.com/6l4thaf

-Watch BTV interview’s of Harold Seigel on colored diamonds. Watch video here-http://tinyurl.com/62gx3du and http://tinyurl.com/6dqhwx8

-Rarecoloreddiamond.com Featured Diamond of the Week. This week’s Diamond is a 1.12ct cushion cut fancy intense Yellow internally flawless Diamond. The color of this diamond is sensational, it’s very intense. I highly recommend this diamond as a strong investment, it will respond well during inflationary times. Harold Seigel-See video of the Featured Diamond here-http://tinyurl.com/6g37q2r

-Diamond miners are struggling to keep pace with growing consumption in emerging economies as older mines are exhausted and producers lack new discoveries. Supplies of rough diamonds, which are turned into polished gems, are forecast to remain flat in the next five years and will fail to match demand driven by China and India, according to RBC Capital Markets.

“We’re seeing in the first half of this year a tremendous increase in demand coming out of emerging countries as well as developed countries,” said Cynthia Carroll, CEO of Anglo American. “In 2005, India and China represented about 8 percent of demand. By 2015, India, China and the Gulf will represent about close to 40 percent.” “The market is very, very strong. Demand will outstrip supply.” Read more here-http://tinyurl.com/44fwx26

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SOVEREIGN DEBT

-Europe Crisis Timeline: Maastricht to Papandreou. Following is a timeline of Europe’s debt crisis from the signing of the Maastricht Treaty to Greece’s agreement to set up a government of national unity. Read more here-http://tinyurl.com/d3egdmf

-European Banks Cutting Sovereign Bond Holdings Threatens to Worsen Crisis. BNP Paribas SA and Commerzbank AG are unloading sovereign bonds at a loss, leading European lenders in a government-debt flight that threatens to exacerbate the region’s crisis.

BNP Paribas, France’s biggest bank, booked a loss of 812 million Euros ($1 billion) in the past four months from reducing its holdings of European sovereign debt, while Commerzbank took losses as it cut its Greek, Irish, Italian, Portuguese and Spanish bonds by 22 percent to 13 billion Euros this year.

Banks are selling debt of southern European nations as investors punish companies with large holdings and regulators demand higher reserves to shoulder possible losses. The European Banking Authority is requiring lenders to boost capital by 106 billion Euros after marking their government debt to market values. The trend may undermine European leaders’ efforts to lower borrowing costs for countries such as Greece and Italy, while generating larger writedowns and capital shortfalls. Read more here-http://tinyurl.com/6rf3lbd

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JOBS

-CHART OF THE WEEK: The Scariest Jobs Chart Ever. We like to run this classic Calculated Risk chart every month after the non-farm payrolls report, but that’s because it’s so shocking to look at each time. What it does is compare every post-WWII recession, and look at the progression of job losses from the beginning of it, all the way down to the trough, and then through the comeback. As you can see, this recession hasn’t been like any other. First, the collapse in unemployment has been far deeper. Second, the comeback has been incredibly mediocre, not at all v-shaped like in past recessions. Read more here-http://tinyurl.com/bpzh997

-A Shocking 52% Of Unemployed Americans Have Exhausted Their Benefits. The jobs crisis has left so many people out of work for so long that most of America’s unemployed are no longer receiving unemployment benefits. Early last year, 75 percent were receiving checks. The figure is now 48 percent a shift that points to a growing crisis of long-term unemployment.

Nearly one-third of America’s 14 million unemployed have had no job for a year or more. Congress is expected to decide by year’s end whether to continue providing emergency unemployment benefits for up to 99 weeks in the hardest-hit states. If the emergency benefits expire, the proportion of the unemployed receiving aid would fall further. Read more here-http://tinyurl.com/brgz8e2

-7-in-10 Blame Economy for Hiring Freeze. The Obama economy is so bad that 77 percent of small business owners do not plan to hire any more workers despite all of Washington’s hype that the business climate is getting better. Worse: 64 percent of small business owners in a new survey see the nation teetering on the verge of another recession.

Most shocking of all in the survey of small and medium sized business owners is that many would like to hire more workers but can’t, and new financing rules imposed by hurting banks have made getting loans sharply more difficult than in the past. Read more here-http://tinyurl.com/cql2gwj

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REAL ESTATE

-Over 50% Of US Homeowners Are Effectively Underwater. Read more here-http://tinyurl.com/7baquln

-Home values fell in almost three-fourths of U.S. cities in the third quarter as a slowing economy deterred buyers. The median price of a single-family home decreased from a year earlier in 111 metropolitan areas out of the 150 measured, the National Association of Realtors said in a report today.

The biggest declines were in Allentown, Pennsylvania; Mobile, Alabama; and Phoenix, where the median price tumbled 18 percent. Prices in Salt Lake City dropped 15 percent. Americans are becoming more pessimistic about property values after economic growth weakened in the first half of 2011 to the slowest since the end of the recession.

The share of people who in October said they plan to purchase a home in the next six months tumbled to 3.9 percent from 4.7 percent a month earlier, the lowest reading in almost a year, according to a survey by the Conference Board in New York.

“People aren’t buying homes because they’re not sure where the economy is heading and they’re not sure about the outlook for their jobs,” said Patrick Newport, an economist at IHS Global Insight in Lexington, Massachusetts. “Confidence in real estate is pretty low.” Read more here-http://tinyurl.com/csysahx

-More than half of Florida homeowners in default are 2 years overdue. More than half of Florida homeowners in foreclosure have not made a mortgage payment in two years or more. That’s higher than the national average and one indication of why banks are paying borrowers up to $20,000 to execute a short sale.

A new report from Jacksonville-based LPS Applied Analytics found that as of September, 56 percent of Florida’s mortgages in foreclosure are 24 months or more behind in payments, compared with 39 percent nationwide. About 84 percent of Florida foreclosures are more than 18 months in arrears.

Considering recent figures that estimate the time from initial filing to auction at 676 days in Florida, LPS Senior Vice President Herb Blecher said, he’s not shocked by the mounting late payments.

In January 2010, just 19 percent of Florida’s foreclosures were 24 months or more delinquent. Blecher said the longer delinquency rates are more evidence of a foreclosure bottleneck that could hinder a housing recovery.

“The longer the homes are out there and the borrower isn’t paying, the more properties will tend to deteriorate,” Blecher said. “It’s on the high end in Florida because inventories are bigger and foreclosure processing is slower.” Florida’s courts are mired in an estimated 350,000 foreclosures. Read more here-http://tinyurl.com/3umv2v8

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© 2013, Worldwide Precious Metals Canada Ltd.
www.wwpmc.com

The World Financial Report – November 15th, 2011
Posted by Worldwide Precious Metals on Tuesday, November 15, 2011


The World Financial Report – November 8th, 2011

November 8, 2011

GOLD

-”Gold is headed into the $2000s. The mess in Europe is incurable and can only be damage controlled by QE.” Jim Sinclair

-”Inflation and interest rates in our country are about to soar and the ultimate bailout of the American citizen can only be found in gold.” Michael Pento

-”The people who own it (gold) own the ultimate money and they don’t have to depend on anybody else.” Jim Dines

-CHART OF THE WEEK: Why John Paulson Says There’s No Gold Bubble. John Paulson gave a speech last night to the Chinese Finance Association, where he discussed gold, inflation, the outlook for the economy, and what he’s investing in. A key point: He’s still a big believer in gold, and he thinks talk of a bubble is ludicrous. Why?

This picture was taken by trader and twitterer Brenna Hardman, and in it you can see what Paulson is getting at. Gold holdings as a percentage of pension and money market funds remains ultra-tiny. You can make a case about whether or not this matters or not, but the gist of his argument is that you can’t have a bubble when ownership is this tiny. Read more here-http://tinyurl.com/64gajrd

-Ben Davies: One Chart Says it All, Extremely Bullish for Gold. Ben sent KWN the above chart on gold and commented, “You really don’t need to say much when you look at the chart, it’s extremely bullish. We took the current year and pushed it forward four weeks to adjust the seasonality.

We realized that the market was working on a four week basis ahead of time and if we adjusted the seasonality by bringing it forward four weeks, readers can see that come October we were going to actually have a rally into the year end.

Historically you would tend to see a dip in October, but we already had that dip in September.” “With record buying on the Shanghai Exchange last month, this bodes well for this quarter and the Chinese New Year that will come during the January/February time frame.

With Diwali upon us now and gold in rupees looking attractive, we believe that we will see the gold market go knocking on our $2,000 target by year end. The paper side of the market has cleared and it’s created a very bullish setup on the COMEX. It allowed the physical to start taking precedence. Gold did not breach the $1,600 level again and as we discussed previously, we didn’t think that was a level it liked trading at.

There were substantial buyers there. If you blinked, you missed the opportunity to buy it several times. The power of the move back up, yet again, puts pain to the naysayers in the gold market. Many of them have been late to the party and have never really understood why the gold market is trading where it is. Read more here-http://tinyurl.com/3sqdy3l

-Aden Sisters: Gold is Shining Again. Gold fell sharply last month and it made many investors nervous. That’s because the decline was so fast and steep. But now gold is again on the rise. So what’s happening? Gold was due for some sort of downward correction following its sharp rise.

This sell-off reflected a lot of pent up pressure because the market had held up so well, and for such a long time, surging higher and higher without a normal downward correction. The slowing global economy added fuel to the fire. Gold and silver were dumped for cash. This is similar to what happened in 2008.

Nevertheless, these were still downward corrections within major bull markets. So far, we’ve seen a 16% decline in gold and 28% in silver. These were the biggest declines since 2008 when gold lost almost 30%, which was the worst correction in the bull market so far.

Again, we’d like to emphasize the importance of the major trend. It’s truly our friend, and we’ll stay invested as long as it remains intact. We’ve found over the years, it’s most profitable to buy and hold during a major uptrend. This is hard to do, especially when you first buy because the price will probably go lower before it heads higher.

This is part of it. The sweating out process, but with a plan. We’ve been recommending gold since 2002. It took several years before it was looking better, but we stuck with it, by measuring the major trend and going with it.

The current bull market in gold will turn 11 years old next February. This incredible run has been historic because gold has gained each year since 2001. It even ended 2008 on an up-note. And this year is unlikely to be an exception as its gain is still in the double digits, so far.

Chart 1 provides a good example of this bull market in gold compared to two famous bull markets of the past the huge gold run in the 1970s and the tech bubble in the 1990s. Here you can see that this current bull market has been modest in comparison, but gold is on track to jump up in a frenzied rise in the years just ahead. Read more here-

Meanwhile, gold could still decline further in the upcoming months. But once the current downward correction is clearly over, you should be well positioned and ready for the train to take-off. Use any weakness to buy the gold and silver you’ve been wanting to buy, but were waiting for a good opportunity. Read more here-http://tinyurl.com/3uolg2v

-Clive Maund: Gold Market Update. Read more here-http://tinyurl.com/63kq5ob

-John Embry: Gold & Gold Shares Waiting to be Unleashed. Read more here-http://tinyurl.com/3d3886m

-Bill Fleckenstein: One or Two Year End Game for Money Printing. When asked if gold and silver are a good buy at these levels, Fleckenstein stated, “Yeah, I mean what’s the alternative? None of this paper is worth anything and they are just going to debase it some more. I mean every day that you walk into a long position you are basically re-buying your position at the last price on the board, even though there is not a transaction. If somebody came to me and said, ‘Look, I don’t hold any,‘ I would say well you’ve got to step up and buy some.” Read more here-http://tinyurl.com/5w24bva

-Peter Schiff: Where Gold, Silver & the Dollar are Headed Next. I think we will come pretty close to hitting $2,000 on gold this year. It would be hard for gold not to be above $2,000 in 2012. I really think it would be unlikely that we wouldn’t see prices north of $2,000 next year. Read more here-http://tinyurl.com/3uehts6

-Stephen Leeb: GS Bullish, How it Will Impact Gold & Silver. When asked about the tremendous pessimism in gold, Leeb responded, “You are right about the pessimism and I just wouldn’t be surprised to find gold trading at $2,000 by the end of the year. I think the breakout is legitimate and the pullback is natural.

I don’t know where else to put money except for gold, silver and maybe a few other commodities. Even if gold doesn’t follow through, as I expect it will, it doesn’t mean a thing. There is no other currency out there that can even remotely replace gold.” Read more here-http://tinyurl.com/3bbhldj

-Andrew Clark: Gold expected to continue to advance this year and next but beware H2 2013. Research shows that over the next 12-15 months fundamentals, sentiment and an optimistic market for gold will continue to support gold prices, but the second half of 2013 remains a concern in this respect. Read more here-http://tinyurl.com/68gppa5

-Top Gold Forecasters See Rally Lasting Until March. The most accurate forecasters say gold will rebound from its biggest monthly plunge since 2008 and reach a record by March because economic growth is stagnating and Europe’s debt crisis is unresolved.

“There is a loss of trust in the entire financial system and urgent need for safe-haven investment,” said Ronald Stoeferle at Erste Group Bank AG in Vienna, the second most- accurate forecaster in the past three months. “The environment for gold is just perfect.” Read more here-http://tinyurl.com/67qpffy

-Paul Brodsky: Global Policy Makers are Getting Desperate. Any time we get closer to central bank money printing and precious metals trade off, we view that as a gift. So we take a look at paper gold trading down on a day like today, we view that as opportunity. Clearly it’s a wonderful day for buyers of physical gold and so we tend to buy on days like this.

We think there are two ways to own physical gold, one is above ground and one is below ground. So we like gold in bullion form, not claims on gold, not paper claims on gold. And of course we like miners because that’s just a property rights issue, you own shares in gold mines. So we see that (mining shares) as owning physical gold, but it happens to be below ground. Read more here-http://tinyurl.com/3hzyvn2

-China’s gold frenzy gives birth to small bourses. Read more here-http://www.gata.org/node/10616

-Royal Canadian Mint offers its own convertible gold ETF. Read more here-http://www.gata.org/node/10622

-Jeff Nielson: ‘D-Day’ near for GLD. Read more here-http://www.gata.org/node/10618

-Haynes, Norcini enthusiastic about immediate prospects for gold and silver. Listen here-http://www.gata.org/node/10624

-James Turk: What You Need to Know About Gold Suppression. Read more here-http://tinyurl.com/3s99p8d

-Alasdair Macleod: Inflation and German sensibilities. Read more here-http://www.gata.org/node/10626

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SILVER

Gold to silver ratio at 50 to 1 with gold at $2,000 the silver price would be $40.00

Gold to silver ratio at 40 to 1 with gold at $2,000 the silver price would be $50.00

Gold to silver ratio at 30 to 1 with gold at $2,000 the silver price would be $66.67

Gold to silver ratio at 20 to 1 with gold at $2,000 the silver price would be $100.00

Gold to silver ratio at 15 to 1 with gold at $2,000 the silver price would be $133.33

 

Gold to silver ratio at 50 to 1 with gold at $2,500 the silver price would be $50.00

Gold to silver ratio at 40 to 1 with gold at $2,500 the silver price would be $62.50

Gold to silver ratio at 30 to 1 with gold at $2,500 the silver price would be $83.33

Gold to silver ratio at 20 to 1 with gold at $2,500 the silver price would be $125.00

Gold to silver ratio at 15 to 1 with gold at $2,500 the silver price would be $166.67

 

-”We sold off dramatically [in the third week of September] because the commercial crooks, operating primarily on the exchanges owned by the CME Group, artificially rigged prices lower [in the middle of the night and at other thinly-traded times] to set off stops below key technical moving averages in order to force leveraged longs and other speculators to sell so that the commercials could buy.

This wasn’t confined to silver, although price rigs are invariably more extreme in silver, as many markets were affected. Within barely more than a week, copper just rallied more than 70 cents (20%) after having fallen almost a dollar in the September smash.

I can assure you that no negative or positive fundamental supply/demand development was responsible for the copper price volatility. As was the case in other commodities, the cause of volatility was paper dealings on the NYMEX/COMEX. This is all verified by changes in positions as detailed in CFTC data in the Commitment of Traders Report (COT).

It is shameful that federal regulators stand by while a few large commercial traders, led by JPMorgan, have hijacked the commodity markets with their paper trading control. Just don’t fall for any stories suggesting legitimate changes in real supply and demand are behind the unusual price movements, as those stories are a crock.” Ted Butler via Ed Steer Casey Research-Read more here-http://tinyurl.com/4xy5zle and http://tinyurl.com/3f7uvds

-Silver remains one of my favorite assets. I expect silver to trade with gold in the shorter term, followed by a “command performance”, similar to what we saw in the spring of this year. Technical patterns, sentiment, and smart money buyers indicate that silver could possibly be the best investment opportunity available to investors for many years to come. Morris Hubbartt

-”I’ve heard lots of information from people that are in the coin business that there’s almost equal interest in silver as gold in dollar terms. How can the price be 50:1 when the demand is 1:1? That can’t carry on.” Eric Sprott CEO Sprott Asset Management

-James Turk: Silver Formation Projects Spike to $60-$75 Level. Last week was absolutely spectacular with silver rising more than 13%. What’s really important, is the weekly silver chart. Silver is forming a beautiful, long-term, flag consolidation pattern.

The flagpole started in 2010 at $18 and peaked at $49 earlier this year. We are now in the flag and we can expect a breakout, I think, within the next few weeks. Here is the good part, it projects to a $60 silver price, but given the strength of this pattern, one could easily see $75. The shakeout over the past six months has put a lot of people on the sidelines.

I don’t expect that money to come back into the market until silver goes back above $43. When silver takes out $43 it should rocket just like it did earlier this year when it nearly doubled in price. Read more here-http://tinyurl.com/3k2gsm4

-Weimar inflation expert Adam Fergusson is interviewed by James Turk. Watch more here-http://www.gata.org/node/10630

-Peter Schiff: Silver Update. When asked about silver specifically, Schiff stated, “I like the chart on silver. Silver has a lot of upside here. They really couldn’t get it much below $30, that’s pretty solid support. The only real resistance is up around $50. We are going to eventually go through $50 so buy it now. Read more here-http://tinyurl.com/3uehts6

-John Embry: Silver Update. When asked about silver, Embry replied, “The action is looking very good in silver. This bounce off of $30 in the last week, trading at one point well through $35, I think it’s a precursor to a big move. I still think silver can be through $50 by year end.” Read more here-http://tinyurl.com/3d3886m

-Clive Maund: Silver Market Update. Read more here-http://tinyurl.com/6enf5ma

-Ross Beaty: “Silver, the Schizoid Metal.” Watch more here-http://tinyurl.com/6hdmdae

-Roman Baudzus: Silver price rising on increased investment demand. Read more here-http://tinyurl.com/6hbkxzn

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CHARTS OF THE WEEK-QUOTES-QUICK HITS

-CHART OF THE WEEK: Dow Jones. For some long-term perspective, today’s chart illustrates the Dow adjusted for inflation since 1925. There are several points of interest. For one, when adjusted for inflation, the bear market that concluded in the early 1980s was almost as severe as the one that concluded in the early 1930s.

Also, the inflation-adjusted Dow is up 145% since its 1929 peak and trades 74% above its 1966 peak not that spectacular of a performance considering the time frames involved. It is also interesting to note that the Dow is up 86% from its March 9, 2009 low which is actually slightly more than what the inflation-adjusted Dow gained from its 1966 peak to today. Read more here-http://tinyurl.com/6brdupf


Source: chartoftheday.com

-CHART OF THE WEEK: Inflation May Stop Rate Cuts From Lifting P/Es. Possible interest-rate cuts worldwide may fail to lift stocks to higher multiples of earnings, according to Pierre Lapointe, Brockhouse & Cooper Inc.’s chief global strategist. “Multiples are usually very depressed” when rates are negative after adjusting for inflation, Lapointe and financial economist Alex Bellefleur wrote in a report. Read more here-http://tinyurl.com/43psyhh

-CHART OF THE WEEK: Rising Misery Indexes Worsen Income-Gap Effect. Accelerating inflation and historically high unemployment are magnifying the economic effects of income inequality, according to Sean Darby, a global equity strategist at Jefferies & Co. The chart shows the U.S. misery index, which increased in September to its highest level since May 1983. The indicator is calculated by adding the 12-month percentage change in the consumer price index to the jobless rate, as compiled by the Labor Department. Read more here-http://tinyurl.com/6aeu7sw

-”The era of procrastination, of half-measures, of soothing and baffling expedients, of delays, is coming to its close. In its place we are entering a period of consequences.” Winston Churchill-Speech in the House of Commons November 12 1936

-”We live in an age of ‘urge’. We do nothing till somebody shoves us.” Will Rogers

-”European leaders are searching for a relatively quick and easy way out of the government debt bubble that has been building for decades and just started to burst a few years ago. Unfortunately, there is no quick or easy way out. Debt has to be reckoned with one way or another.

It either has to be repaid, or someone has to bear the losses on what cannot be repaid, either through default or inflation and currency debasement. If it were otherwise, everyone could be rich. The bailouts proposed for the Eurozone do not solve the underlying solvency problem. Instead, they are little more than shell games to shift losses on bad debt from bondholders to taxpayers.” Charles Biderman

-Fed Sees ‘Downside Risks’ Leaves Policy Unchanged. Federal Reserve policy makers raised their assessment of the economy while saying “significant downside risks” remain and refrained from taking any additional steps to ease monetary policy. Read more here-http://tinyurl.com/3z4pfeg

-Chicago’s Evans Casts Fed’s First Dissent Favoring More Easing Since 2007. Charles Evans has urged his Federal Reserve colleagues to inject more stimulus into the economy since September. He finally broke ranks with most of them today, casting the U.S. central bank’s first dissent in favor of further easing since December 2007. Read more here-http://tinyurl.com/6jyxrmk

-Bernanke Says More Stimulus Is ‘on the Table’ as Risks Remain. Federal Reserve Chairman Ben S. Bernanke said unemployment is still “far too high” and the Fed may take further steps to boost growth, such as buying mortgage bonds or changing the way it communicates its policy goals to the public.

Additional stimulus “remains on the table,” Bernanke said today at a press conference in Washington, declining to specify conditions that would prompt a move. “While we still expect that economic activity and labor market conditions will improve gradually over time, the pace of progress is likely to be frustratingly slow.” Read more here-http://tinyurl.com/6fgjtgq

-Fed Cuts Growth Outlook for 2012, Sees 8.6% Jobless. Federal Reserve officials lowered their outlook for U.S. economic growth in 2012 and forecast that unemployment will average from 8.5 percent to 8.7 percent in the final three months of next year. Read more here-http://tinyurl.com/67o3zx5

-Debt Increased $203 Billion in Oct. $650 for Every Man, Woman and Child in America. The federal government’s debt increased by $203,368,715,583.63 in the month of October, according to the U.S. Treasury. That equals about $650 per person for each of the 312,542,760 people the Census Bureau now estimates live in the United States.

At the end of September, the total national debt stood at $14,790,340,328,557.15, according to the Bureau of the Public Debt. By the end of October, it had risen to $14,993,709,044,140.78. The debt increased far more this October than it did last October.

Between the last day of September 2010 and the last day of October, the debt rose from $13,561,623,030,891.79 to 13,668,825,497,341.36 for an increase of $107,202,466, 449.57. October is the first month of the federal fiscal year. If the debt were to increase by an average of $203 billion for the remaining 11 months of the year, the national debt would increase by $2.436 trillion for the year. Read more here-http://tinyurl.com/66tr28h

-CHART OF THE WEEK: New Projections of the Government Budget from the GAO. Read more here-http://tinyurl.com/5wrsaoy

-US Plans To Issue $846 Billion In Treasury’s In The Next 6 Months, 35% More Than Previous Year. Read more here-http://tinyurl.com/5voar9l

-Greece’s Papandreou Seeks Euro Referendum. Greek Prime Minister George Papandreou said a referendum on Europe’s rescue package will confirm the nation’s membership of the euro as he stuck to plans to hold the vote amid signs his government may collapse. “The referendum will be a clear mandate and strong message within and outside Greece on our European course and our participation in the euro,” Papandreou told his ministers in Athens, according to an e-mailed transcript. It will “ensure this course in the most decisive way.” The cabinet voted unanimously to endorse the plan. Read more here-http://tinyurl.com/5wj6dyj

-Whispers of Return to Drachma Grow Louder in Greek Crisis. The political upheaval in Athens has suddenly made the once unspeakable Greek debt default a distinct possibility. So now it is time to ponder the once unthinkable: that Greece might end its 10-year use of the euro and return to its former currency, the drachma. Read more here-http://tinyurl.com/5u68k7j

-Greek Referendum to Hinder IMF, EU Aid. A Greek referendum on its latest bailout package will hinder the next installment of aid funds by the International Monetary Fund and the European Union, Dutch Finance Minister Jan Kees de Jager said.

“This hinders the planning of the IMF and the euro zone. It creates a problem for the whole sixth tranche,” De Jager told parliament in The Hague. “I can imagine that it will be very difficult for the IMF if there is uncertainty about the sustainability.”

The new round of political turmoil throws into doubt Greece’s ability to access the emergency funding that’s keeping its finances afloat. The IMF’s executive board was due to meet in mid-November to decide on paying its part of the sixth bailout tranche, which is worth a total of 8 billion euros ($11 billion). Read more here-http://tinyurl.com/5u943dv

-CHART OF THE WEEK: Keep This Chart Handy, And You’ll Know When Greece Is About To Blow Up. The latest rumblings are all about how the IMF won’t be paying out a dime more to Greece unless it gets its act together and resolves this referendum issue in one way or another.

The question is: How long does Greece have to pass the referendum, get the money, and pay off its debts. This chart should answer that. Sent to use from Erwan Mahe of OTCexGroup, it shows when Greece has some big debt payments due. Obviously, you can see why Greece can’t wait until next year. 12/29 looks like a pretty certain drop dead, if not before that. Read more here-http://tinyurl.com/5wsqtjk


Source: chartoftheday.com

-Bill Gross: MF Collapse May Erode Investor Confidence. Gross, manager of the world’s largest bond fund at Pacific Investment Management Co., said the collapse of MF Global Holdings Ltd. may further erode investor confidence. Investors may be “more concerned about the return of their money than the return on their money,” Gross said in San Francisco.

MF Global filed the eighth-largest U.S. bankruptcy, after failing to find a buyer over the weekend. The New York-based futures broker suffered a ratings downgrade and loss of customers after revealing it bet $6.3 billion on Italian, Spanish, Belgian, Portuguese and Irish debt, leading to the filing.

The collapse exemplifies how the banking system has become more about leveraging the returns of capital than transferring it to profitable industries, said Gross. “Over a period of years Wall Street sort of lost its way.” “We need a banking system that is attractively and conservatively capitalized.” Read more here-http://tinyurl.com/6759njq

-Bruce Krasting. A Worrying Look At Food Inflation In The Coming Year. The folks at the USDA released their projections for 2011/2012-food price inflation. The bad news is that feeding ourselves will cost 4% more in 2011. The good news is that USDA thinks prices will rise only 2.5% next year. My food inflation is closer to 10%. It depends on what you eat. For example, from the report: Meats, poultry and fish +6%, Seafood +6.5%, Beef +9%, Fresh vegetables +5%, Cooking oils +7.5%. Read more here-http://tinyurl.com/6kw3o64

-Average U.S. Sales Tax Rate Hits Record High. Tuba City, Ariz., tops list with 13.725% tax. Shoppers in Chicago and Los Angeles pay 9.75%. Read more here-http://tinyurl.com/4uqalaj

-Mark Buchanan: Credit-Default Swap Risk Bomb Is Wired to Explode. The European sovereign debt crisis stands as the latest in a long line of similar crises. Argentina in 2001. Russia in 1998. Mexico in 1994. The list goes back into history. Debt crises are about as natural as earthquakes, but this time there is something different and possibly more dangerous.

The European nations are linked in a network of debts, as Bill Marsh recently illustrated in the New York Times with a beautiful piece of graphic art. Greece and Italy are prominent; Ireland, Portugal and Spain lurk ominously nearby. France and Germany seem exposed, too, as does the U.S.

The image is like a complex wiring diagram for a ticking debt bomb. Yet what it shows may be less important than what it leaves out: a largely invisible network of ties among institutions around the world, which could ultimately cause global financial chaos. Read more here-http://tinyurl.com/5vkrkwo

-Canadian central banker says QE weakens the currency. Read more here-http://www.gata.org/node/10623

-‘Generational War’ Seen as U.S. Debt Panel May Target Children’s Programs. The elderly will likely be the most vulnerable Americans in Washington’s future budget fights. Right now, their grandchildren may be among the biggest casualties. Read more here-http://tinyurl.com/6lew3ro

-Americans ’Hooked’ on Government Benefits. Political dysfunction is often blamed for Congress’s inability to curb the U.S. budget deficit. An even bigger obstacle may be the American public. A record 49 percent of Americans live in a household where someone receives at least one type of government benefit, according to the U.S. Census Bureau.

And 63 percent of all federal spending this year will consist of checks written to individuals for which the government receives currently no services, the White House budget office estimates. That’s up from 46 percent in 1975 and 18 percent in 1940.

Those figures will climb in coming years. The 75 million baby boomers have only begun their long march into retirement, while President Barack Obama’s health-care overhaul will extend insurance coverage to more than 30 million additional people. Read more here-http://tinyurl.com/3mmn77b

-Some 15% of U.S. Uses Food Stamps. Nearly 15% of the U.S. population relied on food stamps in August, as the number of recipients hit 45.8 million. Food stamp rolls have risen 8.1% in the past year, the Department of Agriculture reported, though the pace of growth has slowed from the depths of the recession. Read more here-http://tinyurl.com/4ym5k83

-Financial conditions for British families falling at record level. The financial wellbeing of British families fell at the fastest rate in at least 14 years, according to data which underline how inflation and frozen wages are making life tough for many households. Read more here-http://tinyurl.com/67mzj5z

-Gas Fracking Probably Caused Earthquakes in U.K. Read more here-http://tinyurl.com/3cg4sww

-Andrew, Ruth Madoff Say Were Unaware of $65 Billion Fraud Until Confession. Read more here-http://tinyurl.com/6kh7vfv

-Italian government buys 19 Maserati supercars despite austerity cuts. Italy may be in the midst of a savage austerity drive but that has not stopped defence ministry officials ordering a fleet of armoured Maseratis to ferry themselves around Rome. Read more here-http://tinyurl.com/3wl4gns

-Organ Gangs Hit Poor to Supply Wealthy Nations. Read more here-http://tinyurl.com/6arljxc

-Israel Considers Pre-Emptive Attack On Iran. Israeli Prime Minister Benjamin Netanyahu is trying to rally support in his cabinet for an attack on Iran, according to government sources. The country’s defence minister Ehud Barak and the foreign minister Avigdor Lieberman are said to be among those backing a pre-emptive strike to neutralise Iran’s nuclear ambitions. Read more here-http://tinyurl.com/5vaxe6t

-Web Security Expert Warns Of Cyber World War. Read more here-http://tinyurl.com/436aa7n

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RARECOLOREDDIAMONDS.COM

-The Rare Colored Diamonds Historical Value Tracker system is the perfect tool for investors to view the potential future value of a rare colored diamond based on the current market trend of a particular type of diamond. Track the potential future value of colored diamonds here-http://tinyurl.com/6l4thaf

-Watch BTV interview’s of Harold Seigel on colored diamonds. Watch video here-http://tinyurl.com/62gx3du and http://tinyurl.com/6dqhwx8

-Rarecoloreddiamonds.com Featured Diamond of the Week. This week’s Diamond is a 1.36ct radiant cut fancy intense Yellow internally flawless. This Diamond will increase in price by 25% a year and in times of high inflation (1979-80) has increased by 500%. There are very few Diamonds like this available, the color is very intense. I highly recommend this Diamond as a great long term investment and a strong hedge against inflation. Harold Seigel-Watch video of the Featured Diamond here-http://tinyurl.com/6g37q2r

-Sotheby’s New York will auction a rare fancy intense pink diamond ring at its upcoming sale of Magnificent Jewels on December 7. The pink diamond ring is a cut-cornered square modified brilliant-cut diamond, of 22.17 carats, VS2 clarity, type IIa and an estimate in the region of $13 million. The entire sale is valued at $50 million and will travel to Geneva, Los Angeles and Hong Kong, before returning to Sotheby’s York Avenue galleries for public exhibition beginning December 3.

Only two-dozen diamonds of pure pink color, weighing over 10 carats, have ever appeared at auction, placing this offer in company of other noteworthy stones including The Graff Pink, which became the most expensive diamond sold at $46.2 million at Sotheby’s Geneva in 2010. Pink diamonds of significant size have historically been held in many state and royal collections, including those of England, France, Iran, Holland and Turkey. Read more here-http://tinyurl.com/5rhk54h

-A Look At The Incredible Crown Jewels Of Major Countries Around The World. Read more here-http://tinyurl.com/64kmmlx

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REAL ESTATE

-Home prices heading for triple-dip. The besieged housing market has even further to fall before home prices really hit rock bottom. According to Fiserv, a financial analytics company, home values are expected to fall another 3.6% by next June, pushing them to a new low of 35% below the peak reached in early 2006 and marking a triple dip in prices.

Several factors will be working against the housing market in the upcoming months, including an increase in foreclosure activity and sustained high unemployment, explained David Stiff, Fiserv’s chief economist. Should home values meet Fiserv’s expectations, it would make it the third and lowest trough for home prices since the housing bubble burst.

The first post-bubble bottom was hit in 2009, when prices fell to 31% below peak. The First-Time Homebuyer Credit helped perk prices up by mid-2010, but by the time the credit expired, prices fell again. In the second dip, which was reached last winter, prices were down 33% before staging a mild rally that was artificially spurred as banks slowed the processing of foreclosures following the robo-signing scandal, which found that loan servicers were rapidly signing foreclosures without properly vetting them.

Now that the scandal is mostly resolved, lenders are speeding more cases through the foreclosure pipeline and back onto the market, weighing on home prices even further. Earlier this month, RealtyTrac reported the first quarterly increase in foreclosure filings in three quarters. Even more discouraging: new default notices were up 14%. Read more here-http://tinyurl.com/4xscyuk

-More Bad News from the Housing Market. The vicious cycle in the U.S. housing market may be gaining momentum again. That’s a troubling sign for the economy. With the unemployment rate holding stubbornly above 9 percent, jobless benefits running out and home prices still in the doldrums, previously reliable U.S. homeowners are falling behind on their mortgage payments at an increasing rate.

As of September, 1.6 percent of borrowers who were paid up six months ago were already at least 90 days delinquent, according to data provider LPS Applied Analytics. That’s up from 1.3 percent in June. Delinquencies tend to rise in the latter part of the year, but the increase looks particularly sharp.

The delinquencies will ultimately add to banks’ inventory of foreclosed homes, which will weigh on house prices if and when they are brought to market. Falling house prices would boost the number of Americans who owe more on their mortgages than their homes are worth, further increasing the chances that they’ll fall behind on their payments. Read more here-http://tinyurl.com/5vapdya

-Millions of homeowners eligible for foreclosure review. Homeowners whose lenders played fast and loose with their foreclosures may be in for a payday. More than 4 million mortgage borrowers who were foreclosed on between 2009 and 2010 will have a chance to request an independent review of how their foreclosure process was handled, according to Joe Evers, the deputy comptroller for large banks at the Office of the Comptroller of the Currency. Read more here-http://tinyurl.com/3dsegps

-The 10 Cities With The Most Underwater Mortgages. Read more here-http://tinyurl.com/6a3nzcn

-Soaring Delinquency Rates Could Crush The New York Housing Markets. Read more here-http://tinyurl.com/6z5bkgj

-Foreclosures Leave Pockets of Neglect and Decay. Read more here-http://tinyurl.com/65nlguq

-H.K. Home Prices May Fall 45%: Barclays. Hong Kong’s residential property prices would drop by 35 percent to 45 percent over the next two years in the “hard landing” scenario of a deflationary economic environment, Barclays Capital Research said.

In a “soft landing,” continued mortgage rate increases and a slowing economy would drive prices 25 percent to 30 percent lower over 2012 and 2013, Andrew Lawrence and Vivien Chan, analysts at Barclays, wrote in a report dated.

“Given the economic outlook, it is difficult to see property prices and transaction volumes reverting to their long term relationship without a price correction,” the analysts wrote. “The depth of that correction depends upon the external economic environment.” Read more here-http://tinyurl.com/6xj3rog

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© 2013, Worldwide Precious Metals Canada Ltd.
www.wwpmc.com

The World Financial Report – November 8th, 2011
Posted by Worldwide Precious Metals on Tuesday, November 8, 2011


The World Financial Report – November 1st, 2011

November 1, 2011

-Clive Maund: Silver Market Update “Good Entry Point.”

-”The time window for the gold correction is coming to a close; look for $2000 by January, 2012. My chart projects that gold has a very long ways to go on the upside. What I have termed “Phase 2” is a stage of the bull market that will show investors extreme volatility. Gold is likely only at the very beginning of a new and substantial uptrend. Morris Hubbartt

-James Turk Report: Why Gold Will Go Above $11,000. Read more here

GOLD

-”The time window for the gold correction is coming to a close; look for $2000 by January, 2012. My chart projects that gold has a very long ways to go on the upside. What I have termed “Phase 2” is a stage of the bull market that will show investors extreme volatility. Gold is likely only at the very beginning of a new and substantial uptrend. Morris Hubbartt

-James Turk Report: Why Gold Will Go Above $11,000. Read more here-http://tinyurl.com/3guz6eo

-John Embry: Physical Gold Demand Crushing Manipulators. Read more here-http://tinyurl.com/3c7zzlx

-John Embry: October Gold and Silver Commentary. Read more here-http://tinyurl.com/672fk3a

-Rick Rule: Gold & Silver Surging as Takeover Mania to Begin. Read more here-http://tinyurl.com/3myoveg

-Gold May Extend Rally to Record $2,200 an Ounce, AngloGold Ashanti Says. Gold could “easily” rise to $2,200 an ounce in the next two years as costs increase and global financial concerns persist, said the chief executive officer of AngloGold Ashanti Ltd. the third-largest producer of the metal. “It costs almost $1,200 to produce an ounce of gold,” Mark Cutifani said at a conference in Perth today. “The gold price probably reflects the fundamentals of the industry.” Read more here-http://tinyurl.com/5tqfkxg

-Clive Maund: Gold Market Update. Technically the picture for gold now looks strongly bullish. Read more here-http://tinyurl.com/3av7v9k

-Jim Rickards: Extremely High Risk of US Dollar Collapse. We are running the risk of a dollar collapse with a much higher probability than anyone should be comfortable with. So this just increases the case for gold in my view.” Read more here-http://tinyurl.com/3w472o7

-Jim Rickards: Western Gold Policy Threat to National Security. When asked if the policy by the West to manipulate the gold market was unwise because Western vaults are being emptied of gold and subsequently filling Eastern vaults, Rickards replied, “Well I agree, from a national security point of view it’s reckless.

I’m not saying the Chinese shouldn’t be allowed to have any gold, they should have gold, but they should get gold in a system that is gold backed. In other words if you had a gold based monetary system then everybody would have an interest in sound money.”

“I kind of like the Russian approach, the Russians have been very candid and said, ‘We buy gold every month.’ They don’t do 100 ton blocks, it might be 5’s and 10’s, but if you look at the time series of the Central Bank of Russia, the gold reserves they go up a little bit every month and they are just continuing that way.

China is a jump phenomena where you don’t hear about them for a year and then all of the sudden they print 500 tons. You know what’s going on behind the scenes, so I don’t blame them for doing that. But what is the West thinking? So every time the market smashes gold I say, ‘Thank you’ because I just buy more at a better level.” Read more here-http://tinyurl.com/3th4o8q

-John Hathaway: Gold Price Will Soar on Failed Manipulation. Read more here-http://tinyurl.com/3k662y9

-John Hathaway: Gold Stampede Now Imminent. Read more here-http://tinyurl.com/3en9tr6

-Stephen Leeb: China Will Send Gold & Silver to the Moon. Read more here-http://tinyurl.com/3ruxtly

-Peter Schiff: Expect a Huge Rally in Gold & the Euro. Read more here-http://tinyurl.com/3j36rrq

-John Roque: What to Expect in Gold & Stocks Going Forward. Read more here-http://tinyurl.com/3hpy3dh

-Michael Pento: Destructive Fed Policies Put Floor in Gold Price. Read more here-http://tinyurl.com/3rb9gmn

-Ben Davies: Monkey business, reality, illusion, or delusion. Read more here-http://www.gata.org/node/10607

-Weldon: This is What Will Move Gold & Silver Higher. Read more here-http://tinyurl.com/3br2k3t

-Gerald Celente: Gold & Silver Bull Market Will Continue to Roar. Read more here-http://tinyurl.com/3f9p8yz

-Lawrence Williams: Camping it up in gold and silver. No metals have the divisive impact among economists, bankers and investors as gold and silver. The viewpoints of the two camps are noted and the writer’s own conclusions on where they are headed. Read more here-http://tinyurl.com/5sl42f4

-Robin Griffiths: Here is the Reason Gold Spiked $75 in 2 Days. “The Indians, at the margin, buy more gold jewelry than anyone on the planet. Diwali is the ‘festival of lights’ and it’s today. This is when they buy the jewelry. Then it is followed by the wedding season when the Indians buy even more gold. So frequently this festival makes the seasonal low for gold. The rise in the last 24 hours is Diwali, it’s the Indians doing it.” Read more here-http://tinyurl.com/4ybnhda

-India’s gold and silver imports jump 80% to $31.1bn over six months. Investors in India appear to be moving out of cash and into gold and silver. As poorly performing equities hit valuations, analysts and traders insist there is an acceleration in the investing community to asset switch into precious metals. Read more here-http://tinyurl.com/6cv5zf8

-Indians rush to buy more gold during festive period. Despite a huge jump in gold prices, Indians thronged gold markets all across the country on Monday, with serpentine queues outside retail outlets way past midnight, buying up gold coins rather than gold jewellery. Read more here-http://tinyurl.com/6fnp7pq

-Russian central bank acquiring ‘huge volumes’ of gold. Read more here-http://www.gata.org/node/10589

-Gillian Tett in the Financial Times: It would be foolish to deride or ignore GATA. Read more here-http://www.gata.org/node/10591

-Gartman Letter ’stunned’ by favorable reference to GATA by FT’s Gillian Tett. Read more here-http://www.gata.org/node/10610

-Gartman contemplating gold buy back. In his latest newsletter the much-followed independent investor, said that he is prepared to buy back the gold he sold last week because the yellow metal has returned to those levels and would likely move higher. Read more here-http://tinyurl.com/68hg5kn

-Venezuela scrambles to bring $11 bln worth of gold home. In a widely criticised move by Venezuela’s President Hugo Chavez to repatriate all of its $11 billion worth of gold held abroad, the country’s central bank currently awaits the arrival of some 17,000 gold bars from banks in the West. Read more here-http://tinyurl.com/5wpfx7b

-World’s largest gold coin unveiled in Australia. Read more here-http://tinyurl.com/66fc6yh

-Weekly metals review and Davies, Embry interviews at King World News. Read and listen here-http://www.gata.org/node/10597

-Sean Corrigan: Value can’t be calculated after governments wreck markets. Read more here-http://www.gata.org/node/10592

-Alasdair Macleod: Why sound money is a basic human right. Read more here-http://www.gata.org/node/10605

-Another day, another currency market rigging. Read more here-http://www.gata.org/node/10594

-Neil Reynolds: Paper currency has too much bull, not enough bullion. Read more here-http://www.gata.org/node/10612

-Market manipulation and the second Great Depression. Read more here-http://www.gata.org/node/10588

-Chris Powell: Where in the world is the gold? Read more here-http://www.gata.org/node/10587

-Chris Powell: Nine blows against the gold price suppression scheme. Read more here-http://www.gata.org/node/10613

-Peter Grandich: GATA slays the dragon. Read more here-http://www.gata.org/node/10601

-GATA Gold Debate: Jeff Christian now just makes it up as he goes along. Read more here-http://www.gata.org/node/10596

-GATA gold/silver suppression spat with Jeff Christian getting personal. The war of words between GATA and CPM’s Jeff Christian is getting increasingly bitter coming to a head after a debate at the Silver Summit conference in Spokane. Read and watch more here-http://tinyurl.com/6hk6nl2

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SILVER

Gold to silver ratio at 50 to 1 with gold at $2,000 the silver price would be $40.00

Gold to silver ratio at 40 to 1 with gold at $2,000 the silver price would be $50.00

Gold to silver ratio at 30 to 1 with gold at $2,000 the silver price would be $66.67

Gold to silver ratio at 20 to 1 with gold at $2,000 the silver price would be $100.00

Gold to silver ratio at 15 to 1 with gold at $2,000 the silver price would be $133.33

Gold to silver ratio at 50 to 1 with gold at $2,500 the silver price would be $50.00

Gold to silver ratio at 40 to 1 with gold at $2,500 the silver price would be $62.50

Gold to silver ratio at 30 to 1 with gold at $2,500 the silver price would be $83.33

Gold to silver ratio at 20 to 1 with gold at $2,500 the silver price would be $125.00

Gold to silver ratio at 15 to 1 with gold at $2,500 the silver price would be $166.67

-Silver is a highly volatile metal, but it could bring some serious rewards if you are patient and buy really serious weakness in the price. Commercial (smart money) buyers now appear to be even more bullish than they were at the lows of 2008! Morris Hubbartt

-”China has well over 50% of the solar industry and no doubt, as part of that strategy, has been accumulating massive amounts of silver and they will continue to do that. This is one reason that silver is certainly headed to three digits.” Stephen Leeb

-”As far as the timing of the implementation of the all-months-combined position limits [in silver], it would appear to be at least a year or two from now. Upon first hearing of the time delay, most come to the conclusion that the silver manipulation will remain a crime in force for the next year or two. Perhaps that will turn out to be the case, but I don’t think so. Markets have a way of discounting and adjusting to certain known events before enactment, even manipulated markets.

Further, a trader would garner unwanted regulatory attention were he to play over position limits up until the deadline. “Of more concern is the current level of proposed silver position limits of over 4,500 contracts (22.5 million oz). This level is three times the 1,500 contract level requested by thousands in the public comments. The question becomes is the level so high as to negate the anti-manipulative protections promised by legitimate position limits?

While I could make the case for 1,500 contracts in my sleep, the staff’s formula is a good first step in silver position limits. Everything is relative. 1,500 contracts would be a better level than 4,500 contracts, but 4,500 is a heck of a lot better than what we have now, which is no limit at all, thanks to the CME which only seems to exist to reward its biggest members and punish the public by promoting manipulative trading practices .

Certainly, JPMorgan is currently short more than three times the amount of the proposed silver position limit, so one would think they have some short covering in store or some fancy explaining to do. Time will tell, but my reaction to what just transpired is positive. Ted Butler via Ed Steer Casey Research-Read more here-http://tinyurl.com/3mmmhho

-”Conditions in the physical silver market still appear tight. Turnover, or the actual physical movement of metal into and out of the COMEX-approved silver warehouses, continues active even though the total amount remains fairly constant (at around 106 million oz). This silver turnover is much different from years’ past and not at all present in any other NYMEX/COMEX metal.

The most plausible conclusion for this unusual silver turnover is that the wholesale market is tight and operating on a hand to mouth basis.” “There was an outflow this week from the big silver ETF, SLV, of around 3.6 million ounces. With price action and trading volume fairly subdued, I’m inclined to conclude that much of this week’s metal withdrawal was not plain vanilla investor liquidation, but rather removal of metal because it was needed more urgently elsewhere. Obviously, if I am correct, this would be another indication of physical tightness.

I’d like to raise another point regarding SLV. Back during the first 30% manipulated price smash in May, some 50 to 60 million ounces were liquidated by investors and removed from the Trust. (Yes, I still believe that metal remains in strong hands). During the recent 30% price smash of a month ago, there has been no net reduction in metal holdings in the SLV.” Ted Butler via Ed Steer Casey Research-Read more here-http://tinyurl.com/6bmbhzq

-London Trader: Sovereign Silver Buying, Middle-East Shortages. On the heels of KWN reporting the Chinese buying massive amounts of gold. King World News has now interviewed the “London Trader” to get his take on the situation in silver. The source stated, “The price of silver has no reality to the paper market at all, absolutely zero reality there anymore. There is extraordinarily tight supply right now in Asia.

When you order silver there is so little available at these prices, that’s the trouble. You can order it all day long, but you are going to have to wait for it.” “Chances are you are not going to get quantity at this price. If people have physical silver they are not selling it at these levels. Supply/demand is tight and you know there is a big wait involved in getting your silver. If I put in an order for tonnage, I have to find a wholesaler that actually can source it at this price and then there is the significant wait time.

On a side note, there is a man in the United States stating publicly that there is no shortage in silver and to go to his silver group where he can get buyers all the silver they need. That is patently false. This same individual said silver was overvalued at $14. I deal in the physical market every day and I can tell you what he is saying is false. Much of this misinformation is out there because they do not want to have panicked buying from end users because it would send the price of silver skyrocketing.

The end users only use a fraction of silver in their products so it is not an issue of cost, but rather if there is a delay in delivery. “As soon as we see a delay in shipments to end users they will race each other to stock up. This will send the price of silver through the roof and break the backs of the silver shorts. It has already been made public that a firm in Canada had to wait three months for a 15 million ounce order. It was also made public that much of the silver they received was refined after the initial order was placed.

So that is the actual fact, that is how tight the silver market is today and has been for some time. All of the sudden the game has changed because you have actual investment demand increasing exponentially vs. industrial demand, competing against industrial demand to buy. All of these sovereign entities buying silver know it’s manipulated. There are shortages in the Middle-East in silver, generally it’s an incredibly tight market on the physical side.

In Shanghai we are seeing $1.50 premiums on silver and that’s every single day consistently. The tightness in the market is the reason why when the Chinese buy massive tonnage of silver they have a long wait to receive physical delivery. The end users are in line in front of them. So now the silver market is on a razor’s edge because they are trying to make sure the industrial users get their silver, otherwise all hell breaks loose.” Read more here-http://tinyurl.com/3uqcweq

-Clive Maund: Silver Market Update. Read more here-http://tinyurl.com/3gqnybv

-Worried About Silver? Listen to Eric Sprott’s Stump Speech. Read more here-http://tinyurl.com/6k6fkue

-Ryan Jordan: The Five Myths of Silver Investing. Read more here-http://tinyurl.com/6gnf3r5

-Silver Summit Report: Three Investment Approaches to the Volatile Metal. Read more here-http://tinyurl.com/6kt2t27

-Jeff Nielson: SLV and silver manipulation. Read more here-http://www.gata.org/node/10609

-Re-monetizing silver is well-supported in Mexican Congress, Hugo S-P tells KWN. Read more here-http://tinyurl.com/4xc77kd

-Silver Institute News October 2011. Read more here-http://tinyurl.com/3r4g9jh

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CHARTS OF THE WEEK-QUOTES-QUICK HITS

-CHART OF THE WEEK: Qaddafi’s Death May Mean Cheaper U.S. Gasoline. Any increase in Libyan oil production after the death of Muammar Qaddafi, the country’s former leader, may help pave the way for lower prices at U.S. gas pumps. As the chart shows, the possibility exists because gasoline futures tracked Europe’s benchmark grade of crude oil more closely than the U.S. benchmark during the past 12 months. Read more here-http://tinyurl.com/6crradx

-CHART OF THE WEEK: S&P 500 Joining 90% Club May Bring More Gains. Stocks have risen so broadly in the U.S. that the advance points toward further gains, according to Keith Lerner, chief market strategist at SunTrust Investment Services Inc. Lerner compared stocks in the Standard & Poor’s 500 Index with their average close for the past 50 days, a gauge of price trends.

This week marked the 11th time since 1991 that the proportion of shares above the average exceeded 90 percent, his Oct. 25 report said. As the chart shows, the S&P 500 gained in the 12 months after all but one of the past cases. The exception followed a 90 percent-plus reading last October and even then, the index was higher after one, three and six months.

“It’s a good sign that the momentum is that strong,” Lerner, who is based in Atlanta, said yesterday in a telephone interview. “It suggests the market is advancing with the force of the entire army, not just a few generals.” Read more here-http://tinyurl.com/664rd9u

-”In 1900 one dollar bought 14 loaves of bread. In 2010, it bought 16 slices from one 20-slice loaf. ” Neil Reynolds-The Globe and Mail-October 25 2011

-“They have to stop shooting at this elephant with a pea shooter.” Charlie Munger on EU Debt Crisis

-”Basically the painful part of austerity hasn’t even hit yet, nobody in Europe has any idea what’s going on, and social strife, if it seems bad now, will become a daily issue.” Greek Trader on Greece

-”After three years banks are still working on a mortgage plan as 22.5% of existing mortgages remain underwater. Banks are sitting on $700 billion of home equity loans and seconds at original values, not market value. This refusal needless to say totally distorts their balance sheets. ” Bob Chapman

-EU Sets 50% Greek Writedown, $1.4T in Debt Fight. European leaders persuaded bondholders to take 50 percent losses on Greek debt and boosted the firepower of the rescue fund to 1 trillion euros ($1.4 trillion), responding to global pressure to step up the fight against the financial crisis. Read more here-http://tinyurl.com/6a9ys9w

-Rogoff: Europe Pact Only Buys Time. European leaders’ agreement to expand a bailout fund to stem the region’s debt crisis only buys time as the problem worsens, Harvard University economist Kenneth Rogoff said. “They don’t have any idea what the end game is here,” Rogoff said as a compensated speaker at the Bloomberg FX11 Summit in New York. “It’s pretty darn clear the euro does not work.” Read more here-http://tinyurl.com/6xxsab8

-Monster Prediction From BofA: Another US Debt Downgrade Is Coming In Just A Few Weeks. The credit rating agencies have strongly suggested that further rating cuts are likely if Congress does not come up with a credible long-run plan. Hence, we expect at least one credit downgrade in late November or early December when the super Committee crashes. Read more here-http://tinyurl.com/6l7hzse

-U.S. Super committee Flirts With Failure. The congressional super committee seeking a long-term debt-reduction deal remains at an impasse with a deadline near, and the prospect of failure is prompting concern about further downgrades of the nation’s credit rating.

With the committee heading into what may be a make-or-break week for striking a deal over a package of at least $1.2 trillion in U.S. deficit cuts, members are deadlocked over Democrats’ insistence on tax increases, according to committee aides in Washington who spoke on condition of anonymity. Read more here-http://tinyurl.com/3zvxlrr

-Fewer Than 1 in 4 Americans Trust the U.S. Financial System. Americans are growing even more distrustful of their financial institutions. The latest figures from the quarterly Chicago Booth/Kellogg School Financial Trust Index showed that only 23% of those surveyed said they trust the country’s financial systems, down from 25% in June. The index measures trust in four areas: banks, the stock market, mutual funds and large corporations. Read more here-http://tinyurl.com/3zs553h

-Fed’s Yellen: QE3 May Be Warranted. Federal Reserve Vice Chairman Janet Yellen said a third round of large-scale securities purchases might become warranted if necessary to boost a U.S. economy challenged by unemployment and financial turmoil. Read more here-http://tinyurl.com/3ro43yh

-Roubini Sees 50% Chance of Recession in U.S., Euro-Region, U.K. Economies. There is a 50 percent chance of a recession in the U.S., the U.K. and eurozone economies in the next 12 months, said Nouriel Roubini, co-founder and chairman of Roubini Global Economics LLC. Read more here-http://tinyurl.com/3qjhy49

-Pennsylvania Governor Declares Fiscal Emergency in Capital. Pennsylvania Governor Tom Corbett declared an emergency in Harrisburg that allows him to assume financial control and name the state’s first municipal receiver. Empowered by legislation he signed Oct. 20, Corbett today said the capital city’s fiscal distress warranted such action. Read more here-http://tinyurl.com/3qqyt7j

-US States Are Facing Total Debt of Over $4 Trillion. The total of U.S. state debt, including pension liabilities, could surpass $4 trillion, with California owing the most and Vermont owing the least, a new analysis says. Read more here-http://tinyurl.com/6c6gvau

-Here Are The 10 Most Debt-Ridden States In America. Read more here-http://tinyurl.com/639s5cg

-Banks in Georgia, Florida, Colorado Shut Down by Regulators. Banks in Georgia, Florida and Colorado were shuttered by regulators and sold as U.S. lenders collapse under the weight of bad loans tied to real estate.

The four closed banks held deposits totaling about $1.89 billion, the Federal Deposit Insurance Corp. said in statements on its website. The seizures drained $358.8 million from the deposit insurance fund, the FDIC said. Regulators have shuttered 84 lenders this year and more than 400 since the start of 2007, FDIC data show. Read more here-http://tinyurl.com/5td98uh

-Payrolls Declined in 25 U.S. States, Led by North Carolina. Payrolls fell in 25 U.S. states in September, led by North Carolina and Ohio, a sign the weakness in the job market is broad-based. Employers cut staff by 22,200 in North Carolina last month and by 21,600 in Ohio, according to Labor Department data issued in Washington.

The report also showed the jobless rate decreased in 25 states. Nevada continued to lead the nation in unemployment with a rate of 13.4 percent. The economy needs to generate faster sustained job growth to lower unemployment and spur the consumer spending that makes up about 70 percent of the economy.

A Labor Department report on Oct. 7 showed employers added 103,000 payrolls last month, almost half of them telecommunications workers returning from a strike, and the jobless rate was 9.1 percent for a third month. Read more here-http://tinyurl.com/428u5p5

-Hiring Plans at U.S. Companies Slump to Weakest Since 2010, Survey Shows. U.S. companies’ hiring plans reflect the worst employment outlook since January 2010 as demand slows in the world’s largest economy, a private survey showed. Fewer companies project payrolls to rise in the next six months compared with a July survey, while more plan to cut workers, the National Association for Business Economics said in Washington. The share of firms planning to raise prices was the smallest in almost two years. Read more here-http://tinyurl.com/3btmh9k

-Nurse Making $270K on California’s OT Binge. Jean Keller earned $269,810 last year working as a nurse at a men’s prison on California’s central coast by tripling her regular pay with overtime hours. Read more here-http://tinyurl.com/6hgzvup

-U.S. Consumer Confidence Drops to 2-Year Low. Consumer confidence in the U.S. unexpectedly sank and home prices stagnated, showing why the Obama administration and some Federal Reserve policy makers are pivoting to stem a housing slump that is threatening the economic recovery. The New York-based Conference Board’s household sentiment index slumped to 39.8 in October, the lowest level since March 2009. Read more here-http://tinyurl.com/3nfxufp

-Bank of Canada Keeps 1% Policy Rate in Cutting Growth, Inflation Forecasts. Read more here-http://tinyurl.com/6kvy7jr

-These 11 Countries Can Look Forward To Blazing Hot Inflation In 2012. Read more here-http://tinyurl.com/3ld9sky

-Paul B. Farrell: EU bank failures will crash Wall Street again. 8 warnings for Washington and Occupiers. Read more here-http://tinyurl.com/3mgwpev

-Europe’s Banks Must Raise $147 Billion of Extra Capital, Authority Says. Read more here-http://tinyurl.com/3nca285

-From 1979 to 2007, average household income for the nation’s top 1% more than tripled, while middle-class incomes grew by less than 40%, according to a new report from a research arm of Congress. While those at the top have seen their incomes soar over the past three decades, middle-class and lower incomes have stagnated, the report by the Congressional Budget Office found. Read more here-http://tinyurl.com/64mfofp

-U.K. Graphic: Lowest disposable income growth in 30 years. Economic recession and growing inflation have left British homeowners with the lowest rate of disposable income growth in 30 years, according to a new study. Read more here-http://tinyurl.com/6hbpbg9

-Although most Americans don’t trust Wall Street, that hasn’t translated into full support or understanding of the Occupy Wall Street movement. Despite large majorities who think that Wall Street bankers are greedy, overpaid and dishonest, four in ten don’t have an opinion about the protests, according to a new CNN/ORC International poll released Monday.

Among those who have an opinion, the public is split on how they feel about Occupy Wall Street. Thirty-two percent of Americans say they have a favorable view of the movement that has spread from Wall Street to Chicago. Twenty-nine percent of the nation says they have an unfavorable view of Occupy Wall Street. Read more here-http://tinyurl.com/3hpqb9k

-At ‘Occupy Wall Street,’ Capitalism Is Alive and Well. Read more here-http://tinyurl.com/5v8qvmk

-The 53%: We are NOT Occupy Wall Street. Occupy Wall Street protesters might say they represent 99% of the nation, but there’s a growing number of Americans who are making it clear they are not part of the dissident crowd. They call themselves the 53% as in the 53% of Americans who pay federal income taxes.

And they are making their voices heard on Tumblr blogs, Twitter and Facebook pages devoted to stories of personal responsibility and work ethic. The number originates in the estimate that roughly 47% of Americans don’t pay federal income tax, according to the nonpartisan Tax Policy Center. The 53 percenters stress the fact that they are paying the taxes that support the government assistance the protesters say they want. Read more here-http://tinyurl.com/6kqgqnq

-Replacing $1 U.S. bill with coin could save $5.6 billion. Read more here-http://tinyurl.com/5ttp7yv

-Neil MacGregor: Coins to Credit Cards, a Short History of Money. Read more here-http://tinyurl.com/5uqjgvw

-Larry Ellison Made Steve Jobs Fall Out Of His Seat Laughing When He Told Him This Story. Read more here-http://tinyurl.com/5sbx9l5

-This Florida Man Owns 4,000 Autographed Baseballs Worth Millions. Read more here-http://tinyurl.com/6yrn9yc

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RARECOLOREDDIAMONDS.COM

-The Rare Colored Diamonds Historical Value Tracker system is the perfect tool for investors to view the potential future value of a rare colored diamond based on the current market trend of a particular type of diamond. Track the potential future value of colored diamonds here-http://tinyurl.com/6l4thaf

-Watch BTV interview’s of Harold Seigel on colored diamonds. Watch video here-http://tinyurl.com/62gx3du and http://tinyurl.com/6dqhwx8

-Rarecolorediamonds.com Featured Diamond of the Week. This week’s diamond is a .25ct round brilliant fancy intense Purplish Pink Argyle. Argyle Pink Diamonds are admired as the most concentrated form of wealth on earth. This Argyle is extremely rare, the round brilliant cut is considered the rarest for a colored diamond, very few exist. This is an excellent investment diamond that will increase in price 25% a year, when the Argyle Mine closes down in a few years these Argyle Pinks will increase exponentially in value. Harold Seigel-See the video of the Featured Diamond here-http://tinyurl.com/6g37q2r

-Strong Demand, Higher Prices at Argyle Pink Diamond Tender. Rising Asian Demand for Heart-Shape Stones. Rio Tinto Diamonds closed its Argyle pink diamond tender this past week, reporting strong Asian demand and continued price appreciation for the rare gems.

”The collection was keenly contested by investors, collectors and luxury jewelers, with the final results demonstrating significant global reach and continued strong price appreciation,” said Jean-Marc Lieberherr, Rio Tinto’s general manager for diamond sales and marketing. ”In short, the world has developed a real passion for these natural treasures.”

The collection of 55 stones mined at the Argyle mine in Australia were cut and polished in-house by Rio Tinto’s polishers in Western Australia. The collection included a record 11 heart-shaped stones, which generated strong interest, particularly from Australian and Asian bidders, according to Josephine Archer, the manager of Argyle Pink Diamonds.

The largest heart-shaped stone in the collection, a 1.31-carat fancy intense pink diamond, was sold to an unnamed buyer in China, where Archer explained Rio Tinto is investing to raise awareness and understanding about the market.

Rio Tinto reported that bidders in Japan found considerable success in the tender, including the acquisition of the Argyle Alanya, an oval-shaped, 1.06-carat, fancy vivid purplish-pink diamond. ”Japan remains the largest consumer market for pink diamonds, with all shades of pink diamonds in strong demand by Japanese jewelry designers,” the company noted. Read more here-http://tinyurl.com/6xj62nn

-World’s largest fancy vivid yellow diamond tipped to fetch 15m at auction. It is one of the most sought-after diamonds in the world and so rare it was once said to be impossible to value. But now the dazzling Cora Sun-Drop gem is tipped to make £10 million when it appears at auction next month.

Roughly the size of a woman’s thumb and 110 carats it is thought to be the largest vivid yellow pear-shaped diamond in existence. Last year The Graff Pink diamond a fancy intense pink diamond of almost 25 carats was sold for $46.1 million setting a new world record for any jewel auctioned. Read more here-http://tinyurl.com/3ranstn


-Ritchies Auctioneers in Toronto is preparing for a fine jewelry auction in November. Items include an 18-carat, fancy yellow diamond appraised at $1 million, a 78-carat fancy yellow diamond necklace appraised at $600,000. Read more here-http://tinyurl.com/66elkrh

-Christie’s Expects Sales of up to $100M at Hong Kong Jewels Auction. Autumn sale includes more than 300 diamonds. Read more here-http://tinyurl.com/63eoz68

-Graff Diamond Ring, Bulgari and Private Collections Highlight Christie’s Geneva Auction. From the “Property of a Royal House, Christie’s November sale will present three fancy yellow diamonds: a 79-carat cushion-shaped diamond ring weighing estimated $1.5 million–$2 million, a 67.54-carat, brilliant-cut diamond brooch estimated $1.4 million–$1.5 million and a 32.62-carat brilliant-cut diamond ring with an estimate of $700,000–$800,000. Read more here-http://tinyurl.com/67agtde

-The 10 Most Expensive Pieces Of Jewelry Ever Sold At Auction. Read more here-http://tinyurl.com/5s2sgma

-Takeaway Gems: World’s First Diamond ATM Launched. Read more here-http://tinyurl.com/6zavwom

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REAL ESTATE

-CHART OF THE WEEK: Falling Home Inventory Bodes Well for Builders. Homebuilders in the U.S. face less competition from sellers of existing residences than they have in years, according to Josh Levin, a Citigroup Inc. analyst. As the chart illustrates, the number of homes listed for resale declined last month to the lowest level for September since 2005, according to statistics compiled by the National Association of Realtors. Read more here-http://tinyurl.com/3q9qemb

-CHART OF THE WEEK: Here’s The Good News On House Prices. The August Case-Shiller number was a tad disappointing, as the annual decline of 3.8% was a bit worse than the 3.5% decline that analysts had expected/hoped for. But here’s the bottom line. The annual declines are getting less severe (from 4.1% in July to 3.8% in August), and obviously that’s the first step towards actual improvement. Read more here-http://tinyurl.com/6e2osar


Source: chartoftheday.com

-Home Prices in U.S. Cities Fall More-Than-Forecast 3.8%, Case-Shiller Says. Home prices in 20 U.S. cities dropped more than forecast in August, highlighting one of the obstacles facing the economic recovery in its third year. The S&P/Case-Shiller index of property values in 20 cities fell 3.8 percent from August 2010, the group said in New York. Read more here-http://tinyurl.com/6epuwjh

-U.S. Home Prices Fell 4% in August From Year Earlier, FHFA Says. U.S. home prices dropped 4 percent in August from a year earlier as the housing market struggles to stabilize, according to the Federal Housing Finance Agency. The slump was led by a 7.6 percent decrease in the region that includes Colorado and Arizona, the agency said in a report from Washington. The second-largest decline was 6.8 percent in the area that includes California. Prices are down 19 percent from an April 2007 peak, the FHFA said.

Falling home prices are crimping consumer spending and eroding confidence in real estate, making housing among the most “pressing issues” facing the U.S. central bank, Federal Reserve Bank of New York President William Dudley said in a speech yesterday. The federal government, in an effort to stabilize the market, said it will allow qualified homeowners to refinance mortgages regardless of how much their houses have dropped in value. Read more here-http://tinyurl.com/697o6rw

-Pending Sales of U.S. Existing Homes Fall 4.6%. The number of contracts to purchase previously owned U.S. homes unexpectedly fell in September as lower prices and borrowing costs failed to support demand. The 4.6 percent decrease in the index of pending home sales, the biggest since April, followed a 1.2 percent drop the previous month, the National Association of Realtors said in Washington. Read more here-http://tinyurl.com/6gz6go9

-Sales of New U.S. Homes Hits Five-Month High. Purchases of new U.S. houses rose more than forecast in September as discounted prices lured buyers in some parts of the country. Sales climbed 5.7 percent to a 313,000 annual pace, figures from the Commerce Department showed in Washington. Read more here-http://tinyurl.com/6gqe2zt

-Condo nation: Why so few Americans are buying homes. Construction of multifamily homes such as condominiums and apartment buildings surged a whopping 51 percent in September as demand for rentals continued to climb, according to the Commerce Department.

“People are moving out of Mom and Dad’s basement finally, but they are renting or buying apartments rather than homes,” said Jeffrey Greenberg, an economist with Nomura Securities International. “You have to assume another three to five years before the whole housing market recovers because of the enormous foreclosure overhang.” Read more here-http://tinyurl.com/3lusomf

-Fed’s Dudley Calls for Breaking ‘Vicious Cycle’ of Housing Price Declines. Federal Reserve Bank of New York President William C. Dudley said falling home prices pose “a serious impediment to a stronger economic recovery” and predicted “continued modest growth” for the U.S.

“Continued house price declines could lead to even more defaults, foreclosures and distress sales, undermining wealth, confidence and spending,” Dudley said in the text of remarks given at Fordham University in the Bronx. “Breaking this vicious cycle is one of the most pressing issues facing policy makers.” Read more here-http://tinyurl.com/3hnjqcb

-In the U.K. Millions may still have a mortgage in their 70s as they buy first homes later. Read more here-http://tinyurl.com/3sl6894

© 2013, Worldwide Precious Metals Canada Ltd.
www.wwpmc.com

The World Financial Report – November 1st, 2011
Posted by Worldwide Precious Metals on Tuesday, November 1, 2011


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