Wednesday, September 22, 2010

Global Gold & Silver Markets Set To Explode?

By TheIntelHub

Oh! what a tangled web we weave

When first we practise to deceive!

- Walter Scott

The September 20, 2010 Max Keiser interview with guest Jim Willie from GoldenJackass is about to send shockwaves around the Gold & Silver World Markets.

Max Keiser, who has a popular radio talk show and YouTube Channel – MaxKeiserTV talked with Jim Willie who has an online site called GoldenJackass and who also publishes The Hat Trick Newsletter.

According to Jim Willie in his interview on Max Keiser’s show On the Edge:

“In late July there was a story about the Bank of International Settlements and a 340 Ton Gold Swap Contacts (approximately $13,872,000,000.00 Billion Dollars). It aroused a lot of suspicion, it generated a lot of stories, and I think some diversion stories were permitted, like they were helping out some commercial banks. And then later, coincidentally a similar amount to the 340 tons was the supply and inventory of the Portuguese Central Bank.

Well, I came to learn through my sources that the London Bullion Market Association, I call it the London Metal Exchange, London Gold Market – It suffered a heart attack. There was a good clue cause there was a coincident event on July 24, 2010, the LBMA went, as I call it, Data-Dark. They closed their access to data, did not share any of that access, and actually said things like; “For members only, and if you want to become a member it’s 25,000 pounds and you need three references.” It was a bunch of BS. (more)

Silver looks ready to rip

BNP Paribas obviously thinks the price of silver is about to go on a tear.

It has agreed to pay $US20.58 an ounce for 680,000 ounces of the white metal to be delivered from December through to June 2012. That compares with a closing price on Friday in New York of $US20.79/oz (although intraday it poked its head above $US21/oz).

The deal is with Jabiru Metals which will bank $14 million upfront under the hedging deal, money it can well use to speed its mine development program. The 680,000oz is 60 per cent of its forecast silver production over the period of the BNP deal, which at least leaves 40 per cent of output exposed to spot prices. But, then, it’s the guy with the money to lend who calls the tune.

And The Wall Street Journal has been taking an interest in silver, beginning one recent report by saying that what it calls “the poor man’s gold” was about to shine.

In fact, silver’s gains are outpacing those of gold these days - up 17 per cent in the past four weeks, up 24 per cent this year. So far. (more)

Canadian Business - 27 September 2010

Canadian Business – Insight and fresh ideas have never been more essential to success, and the new Canadian Business is a magazine all about those ideas. With more topical stories, more original reporting and more compelling voices, every issue of Canadian Business provides business leaders with the analysis and perspective on the issues, trends and personalities that are shaping the future of our economy.

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U.S. household net worth drops

(Reuters) - U.S. household wealth fell by $1.5 trillion in the second quarter, according to Federal Reserve data on Friday that showed the strain a slow-paced recovery and high unemployment are putting on Americans.

Household net worth fell to $53.5 trillion, well below the $64.2 trillion it had reached at the end of 2007 when the recession officially began, according to the central bank's quarterly flow of funds report.

Declines in the value of financial assets -- especially in stocks and mutual funds -- accounted for much of the decline in second-quarter net worth. Stocks alone were down $1.9 trillion to $14.9 trillion, more than offsetting small gains in other areas like state and local government retirement funds.

Consumers pared debt at a seasonally adjusted annual rate of 2.3 percent, the ninth consecutive quarter in which they did so. Home mortgage debt fell at an annual rate of 2-1/4 percent after a 4-1/4 percent drop in the first three months this year. (more)

Jay Taylor: Turning Hard Times Into Good Times

click here for audio

MUST WATCH: The Curious Case For $936 Ounce Silver.

Global Poll: Buy Stocks, Shun Bonds as Worst Is Over

Three out of five global investors say the world economy has weathered the financial crisis and has stabilized two years after the collapse of Lehman Brothers Holdings Inc.

Few believe the economy is recovering, with only one in six of those surveyed describing it as expanding, according to a global quarterly poll of 1,408 investors, analysts and traders who are Bloomberg subscribers. Forty-one percent aren’t convinced the financial situation is stable and say further turbulence is likely.

“When taken as a whole, the world has stabilized,” says Uzi Zimmerman, a respondent to the Bloomberg Global Poll and managing member of Ventura Capital Management, a hedge fund in the Los Angeles area. “The emerging markets of Asia and Latin America are providing support to the global economic malaise.”

There are still danger spots, including the threat of government defaults, respondents say. Over the last three months, the percentage of those who say it’s likely Ireland will default more than doubled to 37 percent, according to the poll, conducted on Sept. 16-17. Still, a majority see this as unlikely. (more)

A Silver Bull Recommends Six Silver Stocks

If you have viewed any of my previous writings, you will know that I am a fan of Silver mining stocks. Firstly, I specialize in mining stocks, and secondly, in searching for the best gains, I believe we have an edge for the Silver metal in the upcoming fall as detailed here in the Silver break of the Gold Silver Ratio.

So, let us take a look at some shining Silver possibilities for your portfolio.

Silver Wheaton – SLW

Silver Wheaton (SLW), the large-cap $8.5 billion royalty silver equity, is, in the author’s opinion,“la crème de la crème” of Silver stocks. Their unique business model of purchasing Silver production streams allows them to shed the production risks and still participate in the exposure to the rise of the underlying Silver metal price. Looking at the above chart, you can see that Silver Wheaton has done well this year with an 80% move, and has roughly tripled in price since the lows of March 2009. Silver Wheaton is the large safe vehicle to participate in the Silver price rise. The author has owned SLW in the past, and uses the status of SLW as an indicator in monitoring the Silver sector. (more)

Stocks mixed as Fed leaves door open for stimulus

(AP) -- Stocks got a brief bump following word that the Federal Reserve is ready to do more to help the economy, but ended mostly lower Tuesday after the central bank disappointed some investors by not taking any bold new actions.

Treasury prices rallied as investors saw the Fed's announcement as a signal that more bond purchases were on the way.

The Fed said it is concerned that inflation is below levels consistent with a healthy economy and indicated that it is ready to provide "additional accommodation" to support the recovery. That would mean more purchases of Treasurys or other kinds of debt, which would keep interest rates low and hopefully encourage borrowing.

"They left themselves as much room as they possibly could," said Bill Stone, chief investment strategist at PNC Wealth Management. "In the bond world, the coast is clear for buyers."

Treasurys rose sharply after the Fed's announcement, sending interest rates lower. The yield on the 10-year Treasury note fell sharply to 2.58 percent from 2.70 percent the day before, while its price jumped $1.03 to $100.34. The yield is a common benchmark for setting interest rates on corporate debt and mortgages. (more)