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“Sales
are good and are continuing since last 10 days. Lucknow
itself is selling about 150 kgs daily compared to
100 kgs in December,” said Lokesh Kumar Agarwal, Brijwasi Bullion and Jewellers.”
“India
Gold Extends Rise From 1-Week Low”, Reuters, 1/12/12
Tom Kendall of Credit Suisse predicts
Chinese 2012 Gold imports of 470-490 tonnes up from
245 in 2011. And Indian Gold demand has recently revived as the Reuters
Indian Gold Report above indicates.
“Ned
shared his thoughts on the new PAGE (Pan Asia Gold Exchange) launch in 2012
& the great opportunities it will provide investors, the recent pullback
in gold and silver, and what may end up taking gold to much higher levels.
“The
great thing about this new exchange in China and the philosophy behind it, is
its harking back to the old days of gold where you pay cash and get your gold…they’re
opening up a 1 to 1 fully allocated receipts market in gold. If Jeff
Christian is to be believed, there is 350 to 1 leverage [in the
Western paper gold markets]. That will give you a
0.3% coverage in terms of real metal behind your contract.
“I
think the arbitrage opportunity will manifest fairly quickly…The
chain of custody behind the [gold] price setting mechanism appears to be
breaking…the CME and comex futures market
mechanisms are clearly nonsense, [investors] are leaving in droves as you
would expect…I’ve labeled 2012 as the year of [gold]
deliverance.
“In
response to the current sell-off in gold, Ned commented, “You’ve
got to bear in mind, they’re just selling leveraged paper, no one is
selling physical. There is just a tsunami of paper selling in order to
maintain the illusion of fiat value…and it will be overcome…the
physical buying will ride over the paper selling.” (emphasis added)
Ned
Naylor-Leyland: “The Chain of Custody Behind Gold’s Price Setting
Mechanism Appears to be Breaking”
Tekoa Da Silva,
bullmarketthinking.com, 01/04/12
Note that even though the Paper Gold
Prices bounced robustly last week, prices for Physical Bounced even more.
This phenomenon – the
Increasing Divergence of Physical Prices from Paper Prices -- is quite
important.
We can expect to see this Divergence
Magnify, with Physical increasingly commanding a premium over
“Paper” as the Year proceeds.
Of Course,
this is Mainly due to Ongoing Cartel* Price Suppression of “Paper Gold”
and shares.
And it is specifically due to the fact
that it is easier for them to suppress the Price of Paper Gold and Silver
(and also Paper Shares) than it is for them to suppress the Prices of the
Physical Precious Metals.
“It
seems to me that we are getting close, we’re not there yet, but
we’re getting close to a situation where confidence is lost as it
relates to currencies and global monetary systems. We have a confidence based
global monetary system. They are debt based currencies and we
don’t have enough money with which to repay the debts.
“We
have fractional banking and there isn’t enough
reserves in our banking system to cover the debt, let alone repay depositors
should everyone come in at the same time for their money. Now we are
starting to see this play out…
“Investors
are leaving the financial marketplace.”
Paul
Brodsky: “Gold, Silver, Lost Confidence & Systemic Failure”
Eric King,
KingWorldNews.com, 01/06/12
The following are among the Key Causes
of our forecast Mega-Moves in the Precious Metals and Equities Markets:
1.
As of January 6, 2012 Investors had pulled money out of U.S. Equity
Mutual Funds for the Ninth Straight Week
2.
the recent (ostensible) pick-up in the U.S. Economy has come partly
a. from a
decline in the household savings rate (and this is not sustainable without
strong credit growth, which is not happening).
b. From a 70
cent drop in gasoline prices before Christmas – a drop which is surely
temporary given increasing Crude Prices.
3.
At $15 Trillion plus U.S. National Debt is 100% of GDP, and cannot
ever be repaid, (absent massive fiat currency depreciation) given any
reasonably likely scenario, nor can the $100 trillion plus of downstream,
unfunded liabilities be paid for.
4.
Hard landing risks in China are increasing.
5.
The Eurozone Banking System is nearly frozen – earlier this week
Eurozone Banks had re-deposited €587 at the ECB’s over night facility. Eurobanks
are not lending very much to each other. And yield on the Italian’s 10
year has risen over 7% again.
6.
And no Realistic and Effective Solution to the Eurozone Problem is on
the Horizon, notwithstanding Eurozone leaders’ Verbal Assurances to the
contrary.
The Central Bankers are responding to
these Realities by ever more Money Creation and Debt Monetization.
But this will lead to Massive Inflation
especially in Food, Energy, and the Precious Metals. (See our “Gaining
from the Inflation/Deflation Conundrum” (12/15/11) in the
“Articles by Deepcaster” cache at
deepcaster.com.)
Further Food and Energy Price Inflation
will not be Positive for Most.
But Precious Metals Price Inflation can
be utilized to protect Wealth, and Profit, Notwithstanding Cartel* Precious
Metals Price Suppression.
Consider the following examples of
taking advantage of Mega-Bank Money Creation:
1.
As we earlier forecast, the U.S.D. has blasted up and over 80 basis
USDX, in large part because no sustainable solution to Eurozone Debt
Situation has been implemented. Nor will one be anytime soon, we forecast. As
a consequence, our EUO (our leveraged short play on the Euro) play, which we
earlier recommended is looking good for our DHPS Speculators.
Whether this
Euro-Weakening/US$ Strengthening trend will continue will depend on the
extent to which U.S. Debt Saturation and related Problems are resolved.
2.
Focusing on Crude Prices one should consider that the Pro-Attack-Iran
voices will likely not reduce their intensity anytime soon.
Therefore, Greater
CB Monetization (as in the ECB’s EQE), and Overt QE3, already being
Trial-ballooned by a Fed Governor, coupled with ongoing War Tension and
prospective Supply Issues should bring greater Crude Price inflation
as we earlier indicated. Neither of these is likely to disappear any time
soon. No surprise then that Crude is already up and bouncing over $100/bbl as we write this week.
This will
dampen Activity in The Real Economy.
Result: (as
earlier Forecast) another step toward Hyper Stagflation. Just consider, e.g.,
the figures for the U.S. with CPI already at 10.99% per shadowstats.com.
**Shadowstats.com
calculates Key Statistics the way they were calculated in the 1980s and 1990s
before Official Data Manipulation began in earnest. Consider
Bogus
Official Numbers vs. Real Numbers (per
Shadowstats.com)
Annual U.S. Consumer Price Inflation reported December 16, 2011
3.39% / 10.99% (annualized November,
2011 Rate)
U.S. Unemployment reported January 6, 2012
8.5% / 22.4%
U.S. GDP Annual Growth/Decline reported December 22, 2011
1.46% /
-2.89%
U.S. M3 reported December 17, 2011 (Month of November, Y.O.Y.)
No Official Report / 2.84%
And Office Source
Disinformation continues, consider Shadowstats
comments on the January 6, 2012 release of U.S. Employment data:
“The
reported seasonally-adjusted 200,000 jobs surge in December 2011 payrolls
included a false, seasonally-adjusted gain of roughly 42,000 in the
“Couriers and Messengers” category. That gain was an
artifact of the seasonal-adjustment process and will remove itself in the
January 2012 numbers.
“The
problem is that this 42,000 gain is part of a seasonal pattern that fully reverses
itself each January…”
“December
Payroll Seasonal-Adjustment Problem”
www.shadowstats.com,
John Williams, 1/6/12
3.
The Essential Take-Away from Real Inflation Rates which are much
higher than the Bogus Official Numbers, is that to Protect Wealth and Profit,
ones Total Return (Gain plus Yield) must exceed Real Inflation. For example,
10.99% Real Inflation in the U.S. underscores the Reason the Aim of our High
Yield Portfolio is to do just that and why we just added a $5 stock with a
recent yield of 14.9%.**
4.
And most important, regarding Gold and Silver, the ultimate Wealth
Preservers with Profit Potential, James Turk of GoldMoney.com makes a quite
sensible suggestion about how to regard the recent Takedown of Precious
Metals Prices.
“Eventually
that (Negative Market Action – Ed.) erodes people’s emotions and
causes them to turn negative. In the early 1980s I worked with one of
the top commodity traders in the world. The things that (Jesse)
Livermore talked about, this guy used to put together. It was just
holding those positions for the long-term bull market and that’s how
you make the really big money. The reason so few people make the big
money, when it comes to the markets, is they let the emotion and the noise, that comes from day to day, interfere with their
long-term focus.
“You
know, Eric, the main thing is the problems that have been plaguing the
international monetary system for the past several years, they haven’t
gone away. They haven’t been solved. In fact, they are not
even being properly addressed with solutions to solve these problems.
So we have to assume we are going to continue down this same road we’ve
been on, which ultimately means currency debasement and consequently higher
metals prices.
“As
I’m fond of saying, ‘We always have to be focusing on the big
picture.‘ Particularly now when emotions
run wild six months after a correction in both of the precious metals
prices. We cannot lose sight of the big picture. The reasons for
owning gold and silver now are probably just as good as they were when gold
and silver were half the price they are today. They are still very undervalued and we still have a long way to go in
this bull market.”
Physical Gold and Silver and strong
mining company shares are The Ultimate Advantage for 2012 and beyond.
Best regards,
Deepcaster
January 13, 2011
**Note 1: Shadowstats.com calculates Key Statistics the way
they were calculated in the 1980s and 1990s before Official Data Manipulation
began in earnest. Consider
Bogus Official Numbers vs. Real Numbers (per
Shadowstats.com)
Annual U.S. Consumer Price Inflation reported August 18, 2011
3.63% 11.21%
(annualized July, 2011 Rate)
U.S. Unemployment reported September 2, 2011
9.1% 22.8%
U.S. GDP Annual Growth/Decline reported August 26, 2011
1.55% -2.83%
U.S. M3 reported August 14, 2011 (Month of July, Y.O.Y.)
No Official Report 2.44%
***Note 2: Using the above Guidelines allowed Deepcaster to make buy and sell recommendations resulting
in remarkable profits recently if acquired and liquidated when we
recommended*, approximately:
35% Profit on Double Long Gold ETN on August 23, 2011 after just 41
days (i.e. about 280% annualized!)
26% Profit on Double Long Gold ETN on August 17, 2011 after just 35
days (i.e. about 260% annualized!)
25% Profit on Gold Stock on August 8, 2011 after just 201 days (i.e.
about 45% annualized!)
38% Profit on Silver on July 18, 2011 after just 201 days (i.e. about
68% annualized!)
150% Profit on Gold Stock Calls on July 13, 2011 after just 56 days
(i.e. about 975% annualized!)
40% Profit on leveraged Short Treasuries ETF Puts on April 15, 2011
after just 3 days (i.e. about 4800% annualized!)
30% Profit on Silver on April 6, 2011 after just 98 days (i.e. about
111% annualized!)
To read our recent article -- “Essentials for Wealth Acquisition
Acceleration”, go to www.deepcaster.com and click on the
‘Articles by Deepcaster’ Cache.
Past Profitable Performance is no assurance of future Profitable
Performance.
Wealth
Preservation - Wealth Enhancement
Financial
and Geopolitical Intelligence
Gravitas,
Pietas, Virtus
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