August 18, 2022 

Gold Enters Major Bull Market


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 By Michael Miller

09/08/2009  8:01AM

Interesting to see gold price increasing when DJI is up $61.59 and PX is up $9.05. I never really understood those financial pundits who claimed that these markets worked in opposition to each other.

Gold remains the loose cannon in international and domestic finances.
 By bluejay

09/08/2009  7:56AM

Last on gold is $1002.70.

For what it's worth, below is the link to the late December 2008 WSJ article on the prediction of a US split-up:
 By bluejay

09/07/2009  11:02AM

Last on gold is $994.40.

Increasing level of insanity in government, it's not just California.

Lyndon LaRouche made the following comments in late August 2009 for Executive Intelligence Review in a article entiled, America Must Reject Obama's Sellout of the Nation by John Hoefle:

"In reappointing 'Bailout' Ben, Obama is committing himself to the continuing collapse of the dollar and the removal of the dollar as the world reserve currency." LaRouche said, "These moves will quickly and inevitably lead to the complete breakdown of the global monetary system, and civilization itself. The Fed is already bankrupt, due to the actions of Greenspan and Bernanke, and must immediately be put into bankruptcy protection. We should stop all the bailout programs, take back the bailout money already issued, and put the banks into bankruptcy protection. Without such steps, we face a complete disintegration of the system within weeks."

The complete article:
 By bluejay

09/04/2009  10:34AM

Last on gold is $994.60.

Don't believe the following excerpt, China wants its gold on Chinese soil for another very good reason: Big Wall Street banks are ruining all markets with their flood of paper products and China has had enough.

By Chris Oliver, MarketWatch
HONG KONG (MarketWatch) -- Hong Kong is pulling all its physical gold holdings from depositories in London, transferring them to a high-security depository newly built at the city's airport, in a move that won praise from local traders Thursday.

The facility, industry professionals said, would support Hong Kong's emergence as a Swiss-style trading hub for bullion and would lessen London's status as a key settlement-and-storage center.
 By bluejay

09/03/2009  10:25AM

Gold having a great day.

Last sale is $996.20
 By bluejay

09/03/2009  7:28AM

Last on gold is $981.70.

Significant news from China.

China pushes silver and gold investment to the masses
A report suggests that the Chinese government is pushing the general public into buying gold and silver bullion, which could have a dramatic effect on the markets.

Author: Lawrence Williams
Posted: Thursday , 03 Sep 2009


We are indebted again to Paul Mylchreest's Thunder Road Report for news that will bring big smiles to gold and silver investors everywhere. Apparently China is pushing the idea of buying gold and silver for investment purposes to the general population in the way that Western television sells soap powder. If 1.3 billion Chinese citizens start buying gold and silver, even in tiny quantities, imagine what that will do to the market!

The report notes that China's Central Television, the main state-owned television company, has run a news programme letting the public know how easy it is to buy precious metals as an investment. On silver investment the announcer is quoted as saying " China has introduced its first ever investment opportunity for silver bullion. The bars are available in 500g, 1kg, 2kg and 5kg with a purity of 99.9%. Figures show that gold was fifty times more expensive than silver in 2007, but now that figure has reached over seventy times. Analysts say that silver has been undervalued in recent years. They add that the metal is the right investment for individual investors and could be a good way to cash in."

What appears to have happened in China is a total relaxation of strictures on holding precious metals by the individual with the government pushing gold and silver as an investment option, seemingly at every opportunity. This is a far cry from the situation only a few years ago where the distribution of gold and silver was strictly controlled. Now, the Thunder Road Report notes that every bank will sell gold and silver bullion bars in four different sizes to individuals and gold related investments are said to be soaring in popularity.

Around a year ago, Leyshon Resources managing director, Paul Atherley, in an investor presentation in London - and no doubt delivered elsewhere in the world too - commented that some employees at the company's gold mining project in northern China would, on pay day, go to the local bank and buy a small gold bar as an investment and wealth protector. To an extent we put this down at the time to mining company hype - but this seems to be exactly the same phenomenon noted by Thunder Road. The Chinese are being converted from being the lowest per capita gold consumers in the world to a nation of small precious metals investors. Now, by next year, Chinese consumption of gold is likely to exceed that of India, which has been for years the world's biggest gold market. And one suspects that the potential for gold purchasing by individuals is only in its earliest stages. As more and more Chinese move into the cities and individual wealth grows, this trend is only likely to accelerate.

Paul ends the piece on Chinese gold and silver potential with the following comment: "Simply put, the Chinese government is trying to trigger a national gold craze...and it's working. The Chinese public now has gold trading platforms on steroids.... ...Also, for the first time in history, Chinese investors can even trade gold abroad (in London) with the swipe of a ‘Lucky Gold' card. I can't even get Bank of America to open a foreign currency account."

This may be an overstatement of the case from a precious metals bull - or it may not! Certainly if China is indeed pushing the public to buy gold then there may well be a hidden agenda here. It's unlikely they are doing it and will suddenly pull the rug out from under millions of investors. A cynic (or a raging gold bull) would suggest that this will precede a move to switch a good proportion of the country's reserves into gold which would have a huge effect on the global gold price and could prove disastrous for the dollar. Maybe it's not in China's interests to drive the dollar down too much until it has managed to divest itself of the huge dollar overhang (see the article on Chinese Sovereign Wealth Funds we published yesterday - Chinese sovereign wealth fund dumping dollars for strategic investments like gold ). The country may well already be, of course, surreptitiously building its gold reserves without reporting the build-up.

If the Chinese are indeed beginning to buy gold and silver as the quoted report suggests then this has to be a strong signal that prices are going to rise, and perhaps rise dramatically, in the relatively near future. We await comment from other China watchers for confirmation of the gold and silver buying spree, but with global gold production at best flat and probably in decline, even a small increase in Chinese buying could have a substantial impact on gold and silver prices.
 By Michael Miller

09/02/2009  7:52PM

Unlike most small gold companies, ours stays in business, paid dividends, expands its mineral claims and develops its properties by mining gold (small companies since the 1970’s usually sell stock, thereby diluting the shareholders). For several years our inventory assets) has been the source to pay the bills.

In addition to the variety of gold specimens, art pieces and jewelry in inventory, we occasionally pour gold dore from saw dust and gold crumbs. Dore is a natural unrefined product, which until a few years ago was sold to a refinery in Los Angeles. A local market took an interest in the dore and swallowed our modest supply. The supply may increase as the need for money continues and we crush specimens.

The thought hit me today, after reading the latest report from Bluejay , that some of you may like some dore. It sells at the spot price at the time of the order. We pour one to three ounce “buttons” marked with the date, weight and 16-1. (Dore is about .85 pure gold and .15 pure silver.) If no gold exists at the time of your order, you will be on a pre order list (chronologically) and called to confirm size and lock in a price before pouring a “button” for you. Credit cards accepted. Shipping and insurance not included.

Many people have asked about the mine bars we made between 1993 and 1998. The manufacturing cost presented some problems to some buyers, but the mini bars were made as fine jewelry. There were three sizes: quarter ounce, half ounce and one ounce. If you are interested in seeing these again, please write me with your thoughts on the subject.
 By bluejay

09/02/2009  1:25PM

Last on gold is $979.50.

The move on gold today is closely associated with the following article from Jim Sinclair.

Dear Comrades In Golden Arms,

All men can see these tactics whereby I conquer, but what none can see is the strategy out of which victory is evolved.
--Sun Tzu

Reported Chinese actions to unilaterally cancel OTC derivative loss debts held by state corporations whereby they purchased hedge contracts written by major American OTC derivative manufacturers and distributors is legally a unilateral novation. A novation declares an item to be invalid. Invalid means not valid. A contract which is not valid infers a form of a fraudulent contract.

Actions by the Chinese tend to follow and can be understood by learning the tenets of the teachings of Sun Tzu.

Had the West acted exactly this way rather than financing them to pay the winners when the hedge fund, Long-Term Capital, failed on OTC derivatives, there would have been financial problems but this event today would only be a modest recession and not a catastrophic depression.

MOPE(government BS) has blacked this event out while titanic pressure is being brought on the US to fall into line and pay off the winners in New York.

What happened here will pave the road of the future.

This is the most important economic event since the fall or shove into bankruptcy of Lehman.

Few understand.
 By bluejay

08/29/2009  11:00AM

Gold closed the weekend at $955.60

Antal Fekete writes another informative article relating to gold:
 By bluejay

08/29/2009  11:00AM

Gold closed the weekend at $955.60

Antal Fekete writes another informative article relating to gold:
 By bluejay

08/25/2009  10:41AM


We're in a bad economy for the use of gold in selling luxury items and in purchasing gold for industrial applications. The World Gold Council, FYI, does not support gold 100%. The headline of your referenced Bloomberg story was, as is usual of the media, to deceive the public with their inferred questionable merits of gold ownership.

Last on gold is $944.00.

The following are excerpts from a recent article entitled, US Dollar Analysis -Sea Change Coming by Stewart Thomson which appeared on the website recently:

20. If the Dow rally fails and takes out the lows at Dow 6500, I will be a buyer of any and all price weakness as it chews into new low territory. In terms of the public, I believe that will mark “the end” for this generation of retail investors. Their pipedreams of the stock market as their personal “long term wealth builder” will be 100% destroyed. Mentally and emotionally broken, they will begin a complete and total liquidation of their holdings.

21. Here is another critical point: As the above occurs, the only question is whether the bankers want to see the carcass of money from the stk mkt then flow into the bond market first, and then to gold, or immediately from the stock mkt into the gold market. To move gold to say $1500-$3000, money from the stock market would easily do that. But a US dollar currency wipeout could see money flowing from paper currencies into gold on a mass scale, which would send gold to levels like $10,000, and perhaps much higher. Using the same calculations Jim Sinclair used to put a $900 target on gold in the 1970s now yields a possible target in excess of $30,000 an ounce for gold.

22. President Obama, Tim Geithner, and Ben Bernanke are all committed to sustained money printing and dilution of the US dollar. The key word there is “sustained”. All the chess pieces are in place for a massive revaluation of gold upwards against not only the US dollar, but against all the world’s paper currencies. Just as the central banks worked together to stick the taxpayer with trillions in worthless otc derivatives, they will the stick the taxpayer with US dollars just in time for them to watch it decline heavily.
 By cw3343

08/24/2009  3:29PM

My motive was just to solicit clarification, or information regarding the "news" item.

I was not trying to make a point about gold going higher or lower, but looking for the readers/contributers here to share thoughts and/or information.

There is so much mis-information out there that I figured you all could shed more light on that topic. Or, clarify it's legimitacy (or lack therof).

I should have put that in writing- my bad...

If anything, my guess is that it would be bullish on gold, beings that the price has held up pretty good during a period of low demand. (If the article is correct). If demand picks up just a little, then prices should pick up as well...
 By bluejay

08/23/2009  10:03AM

More of a reason for gold ownership.

Days Away From Economic Chaos?
in response to Re: Next week's US data stream by ESL
posted on Aug 22, 09 05:59PM
Some highlights from Bill Sardi's revealing article....................

Days Away From Economic Chaos?

America is just a few days away from a possible day of reckoning. I again call attention to this day, August 25, when the Federal Deposit Insurance Corporation issues its 2nd Quarter report for 2009 on the state of health of American banks...........................

The FDIC is required by law to maintain a reserve ratio, or balance divided by insured deposits, of 1.15 percent. It was at 0.27 percent as of March 31. It could be near zero at the current moment. (See 1st Quarter FDIC reserve ratio chart below).............

Hiding losses

Banks have been slow to foreclose, allowing mortgage holders a few months before their home is deemed in default and giving another 2 years before the property is foreclosed on its accounting books. This practice has been able to temporarily hide most of the banking collapse..........................

Zombie banks

The FDIC, which claimed only about 300 problem banks in the 1st Quarter of 2009, but hid the fact there were about 2000 total lame banks among its 8400 members,..................

Examination of the following FDIC chart shows geographically that most banks are not making a profit.................

FDIC's $13 billion against $220 billion liabilities

So just how much liability does the FDIC bear aggregately for its "problem banks?"

At the end of the 1st Quarter in 2009 the FDIC said that figure was $220 billion. Remember now, the FDIC had only about $13 billion to over these institutions at the time. (See chart below) This figure will likely grow beyond imagination with the issuance of the FDIC 2ndQ report..............

(ESL comment: The FDIC cannot afford to cover $220 Billion in liabilities for 300 "problem banks" without dipping into Credit Lines at the Treasury. But even that LOC may not be adequate if banks fail to resolve their balance sheet issues, sink too deeply into the red and fold. True liabilities at SIGNIFCANT risk are several $Trillion if 2000 lame banks are included as they should be. To make matters worse the number of problem and lame banks is expected to be much higher in the Aug 25th Q@ FDIC report. Get the picture?)

Banks valued by goodwill and bailout funds

So there, you can see that in addition to goodwill, the bank's capital was largely increased by bailout funds. So a dose of reality therapy will lead one to conclude that nearly all American banks are essentially insolvent.

If this leaves you feeling a bit queasy, well, you may need to reach for Dramamine when you realize the FDIC is not only broke, but it will probably announce it is tapping into its line of credit at the US Treasury Department, which is also insolvent (America is spending $1.58 trillion more than it collects in taxes this year).

Here is how Bloomberg’s Vekshin says it:

If the fund is drained, the FDIC also has the option of tapping a line of credit .................. with temporary borrowing authority of $500 billion through 2010.

The mother of all bank runs?

Now if just a small portion of American bank depositors hear that the FDIC had to tap into the US Treasury for funds, and these depositors feel their banked money is at risk and want to withdraw some of it, the mother of all bank runs could ensue. This could create the day of reckoning that many have predicted............................
 By bluejay

08/21/2009  8:18PM

Last on gold is $953.70.

The following is the closing excerpt from the summer edition of The Trends Journal by Gerald Celente. Gerald's format in trends research is to reach into the future with supporting factual trends and identify the continuing process.

Trendpost: With America deep in denial, any product, service or enterprise that facilitated "escape" would turn a profit. There were two sets of emotions in play simultaneously. Fear and Hope. Although "Hope" was winning campaign slogan for candidate Obama, and still played well in the polls, "Fear" was the dominant underlying emotion playing to the public.

Recognizing that all was not well beneath the surface, anyone selling anything would do well to understand the public's anxious, confused and depressed state of mind ... no matter what the polls were showing. Projecting genuine empathy, compassion and honesty would win over consumers.

Our trend forecasts, unlike those with optimistic outcomes - and even those who don't buy the "green shoots"- scenario but forecast eventual "recovery" - are for longterm decline and a permanently altered consumer climate. Those planning long-term strategies and product launches should design them to correspond to current and emerging mood/attitude perceptions of targeted market sectors; to have a real world understanding of what prople feel, not just what they say.

Both "escapism and "fear" were overriding long-term trends.

Much of what held true in America would filter abroad. Ironically, although the world blamed America for the economic crisis, it still looked to America to fix it. And although copying the US way of life was a declining trend, America still exerted cultural influence. The trends prevailing in America would have parallels and variations, nation by nation.

In the Summer of 2009, the mass media, Washington and Wall Street were pitching recovery.

Economic outlook gauge pegs turnaround in September

USA TODAY, 11 June 2009 - The recession will likley end in September and be followed by a mild recovery, according to the new USA TODAY/IHS Global Insight economic outlook index.

The "all-clear" signal was sounded. The worst of the economic storm was over. By September there would be blue skies and fields of green shoots in flower.

By 2012 that picture looked as inaccurate and as dangerously naive as those official announcements on 9/11 telling people in the World Trade Center to go back (to) their desks, "the fire in the North Tower is under control."

The worst of the economic storm had not yet hit, and there was a widespread, if unarticulated sense of impending disaster.

When major natural catastrophes threaten, many creatures proact in anticipation of what's to come. Whether through intuition, instinct or some form of hypersensitivity, some seem to know what has to be done to survive ... moving to higher ground, taking flight, finding shelter, etc. Others, possibly as sensitive but less directed, become disoriented. They sense something has to be done but don't know what.

That was the situation in the Summer of 2009. There were those proacting intelligently in anticipation of "Obamageddon." There were others, possibly a majority that sensed it, but either did not trust their instincts or didn't know what to do. And then, of course, there were those didn't know and didn't want to know.

"Survival was THE trend. "Depression-Era Self Defense" was the strategy.
 By Rick

08/20/2009  8:26PM

CW3343, what is the motive to write what you did?
 By bluejay

08/20/2009  2:36PM

To the previous contributor concerning "Gold Demand Drops To A Six Year Low??," it's nice that you have made an appearence but I think it would be best for other readers if you quote subject article titles accurately.

Instead of the question marks you left out "On Recession."

What the article said was that jewelry and industrial demand were at a 6 year low.

In the guts of the article was a far more consequential comparison than gold demand being effected by a slower economy. It was the international central banks were net buyers of gold for the first time since 2000.

The questions marks were misleading. Get the facts straight. The reason that gold is not headed lower is that the US is in the midst of a major currency crisis, massive amounts of fiat money being manufactured. The lack of continuing demand for jewelry and industrial usage significantly pales in comparison to this.

The US Mint has suspended on and off the sale of gold and silver coins this year and last because they can not keep up with demand. Jewelry is a luxury item in the western world. If our currency implodes overnight during a "banking holiday," I would rather have the coins than a box full of jewelry, any day.

Advertised gold jewelry buyers are only paying 60% or so for the metal content. Sellers of gold coins would rarely receive a discount to the spot price.
 By cw3343

08/19/2009  10:17AM

Gold demand drops to 6 year low???

Per the World Gold Council.
 By bluejay

08/17/2009  7:32PM

Last on gold is $938.20

An excellent background on who is pulling the financial strings in Washington that's sending the great majority to the poor house:
 By bluejay

08/16/2009  10:25PM

Last on gold is $943.10

A quote from Martin Armstrong:

"Democracy died a long time ago. Our politicians are sitting on the otherside of the table, and we are the meal."
 By bluejay

08/09/2009  12:01PM

An "Oldie but Goodie"

Home » Daily Dispatches
Peter Millar: Seven-fold increase in gold needed to avert debt depression
Submitted by cpowell on Thu, 2007-02-22 00:14. Section: Daily Dispatches
7p ET Wednesday, February 21, 2007

Dear Friend of GATA and Gold:

While it is almost a year old, a study of the enduring importance of gold in the world economic system by R. Peter W. Millar, founder of Valu-Trac Investment Research Ltd. in Scotland (, seems ever more compelling, and Millar graciously has agreed to let it be shared with you.

Millar stresses the periodic upward revaluation of gold as the mechanism for defeating a deflationary debt depression at the end of an economic cycle. Millar writes:(When gold was about $660)

"The first cycle unfolded as follows:

"-- Phase 1: Stability under a gold standard until 1914.

"-- Phase 2: Inflation until 1921, which resulted in a buildup of debt.

"-- Phase 3: Disinflation, which brought stability and allowed asset inflation until 1929, but encouraged a further buildup of debt.

"-- Phase 4: Instability after 1929 caused by deflation of assets from overpriced levels and exacerbated by excessive debt levels, leading to depression of economic activity.

"-- Phase 5: Monetary reform enabled by a revaluation of gold to overcome deflationary debt depression.

"In the second half of the 20th century we saw a repeat of the first three phases of the same cycle:

"-- Phase 1: Stability from 1944 to 1968 under a gold standard.

"-- Phase 2: Inflation from 1968 to 1981, which caused and justified another buildup of debt.

"-- Phase 3: Disinflation from 1981 until the end of the 20th century, and maybe to the present.

"However, it appears that Phase 4 (instability and ultimately deflation due to excessive debt) may have started. If so, Phase 5 (revaluation of the gold price to raise the monetary value of the world monetary base and hence reduce the burden of debt) becomes likely or inevitable. The extent of that revaluation would need to be major according to our calculations, probably by a factor of at least seven times, possibly up to 20 times the current price of gold."

The price of gold when Millar wrote his study, in May 2006, was about where it is tonight.

Millar's study is titled "The Relevance and Importance of Gold in the World Monetary System" and you can find it in PDF format here:

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

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