Saturday, 6 October 2012

Daily Reading Material Compilation 3.0

Here's my third round of daily reading material. I will say that I often read more than simply these articles, but I highlight the best ones on the day that I've read and present them here for your reading pleasure - in addition to the obvious informativeness that accompanies this type of reading.

The Coming Energy Shortage Will Exacerbate PEAK GOLD & SILVER - "energy is money.  Gold and Silver are only a physical accounting of energy.  Without ample energy supplies, gold and silver cannot be mined commercially." Supplies of gas and oil are dropping, and peak gold and silver are coming sooner than later.

The Incredibly Ballooning Bailout Of Cyprus
- Cyprus is requesting €20 billion to bail our their banks and government, while the average citizen is the one who takes the hits. They are doing this in spite of the fact that the communist president of the country, Demetris Christofias, called what the banks have done 'a crime'. Doesn't we usually arrest criminals, not give them €12 billion to continue their criminal activity?

Turkey & Syria Clash and Asians Take a Shine to Silver - New GoldCore blog update from Mark OByrne. Silver and gold are top performers, and continue to rise - while Asia begins to see silver as the clear favourite over gold, with silver futures climbing 29% by the end of Spetember, whereas gold climbed "only" 13%. On India's commodities exchange, silver is up 30% while gold futures are down 10%. Check out the links at the bottom of this GC blog post - they're fantastic, and I will be posting a few below.

Physical Gold Demand May Now Overwhelm The Manipulators - John Embry, chief investment strategist for Sprott Asset Management, speaks to the strong probability that the overwhelming demand for gold will see it driving up in price very quickly over the next few months and years - and how this is a time to buy, because the longer you wait the less physical supply there will be available for a reasonable price

Agnico CEO - A Game-Changer That Will Send Gold To $3,000
- Incredible interview with very astute observations (although I expect nothing less from KWN interviews) from Sean Boyd, CEO of Agnico Eagle (a mining company). This excerpt is particularly juicy in my opinion:
“The difference in the equation now is that even though we are seeing weaker demand from India, the central banks have more than offset that weakness.  The central banks are big buyers now, and they appear to be buying on dips.

The appetite for gold from central banks will continue.  Their foreign exchange reserves are growing, and they are having a hard time keeping their gold reserves up as a total percentage of reserves, especially given how quickly the reserves are growing.

This is just going to result in more demand coming out of the central banks, which is going to be one of the major factors or catalysts that’s going to drive gold to the $3,000 mark.  But the last thing these central banks want to do is create disruption in the gold market."
GE Ex-CEO Takes On White House Via Twitter Over Jobs Data - Jobless data released, as unemployment supposedly fell in the US to 7.8% - a number that makes absolutely no sense considering the worsening state of the economy, and analysts' projections of an increase to 8.2% from 8.1

How to Run Your Hedge Fund From a Prison Cell - Definitely made me chuckle. At least Horvath is going to prison, though!

Analysis - Investors opt for gold ahead of U.S. "fiscal cliff" - The end of this article is absolutely ludicrous. They don't even mention silver anywhere in the article, either, even though it talks plentifully about commodities markets; with the exception of the last line, where Koen Straetmans of ING, who prefers equities and real estate apparently, says that both gold and silver are stretched. What a farce. Enjoy the paper money debasement bonanza, subsequent market collapse, and seeing your €295 billion pool vaporize.

I'm guessing he's playing it coy and has diversified much of his holdings into PMs.

Cantor Cut to Junk by Moody’s on Capital Markets Pressure - These ratings agencies never cease to amaze me.

Federal court rules in favor of NDAA - Of course this was going to happen - Obama picks the damn judges!

"Tuesday’s decision was reached by a U.S. Court of Appeals for the 2nd Circuit motion panel comprised of three judges: Denny Chin, Raymond Lohier and Christopher Droney, all of whom were appointed by President Obama."
The IMF -Inadvertently- Condemns The Eurozone- Another fine post from discussing a recent interview with IMF economist Oliver Blanchard, who says that the global crisis will continue at least for another 6 years as the decade since it has started is one of the most trying and tumultuous ones we have faced in history.

The Noose Tightens On Germany’s “Success Recipe” - Germany's economy is taking a thrashing - especially domestically. It would seem that even the European financial powerhouse is beginning to feel the effects of global recession/depression, as orders drop, production stalls, and inflation rises.

What To Expect With Gold Assaulting $1,800 & Silver At $35 - KWN interview with Citi analyst Tom Fitzpatrick and his bullish sentiment for both gold and silver. For this I will simply defer you to some interesting highlights on gold:
"...we believe that in Q1 of next year we could see gold as high as $2,450 to $2,500..."
and on silver:
"We are looking at the breakout point being just shy of $37.50...  When silver puts in a weekly close above $37.50, that aggressively moves the target to the highs of last year and extremely close to the high set back in 1980, that target for silver being $49.80.

If we see the move to $2,060 in gold and $49.80 on silver, that suggests a significant outperformance for silver.  If those moves were to take place in tandem, we would see a very nice 15% move in gold, but the silver move would be roughly 40%.  So it does suggest over the coming months that the market will see significantly money flows into silver."
Silver - The People’s Metal - I wanted to link this here because I think it's one of the most succinct and well-written articles tying social, political and economic conditions to silver as a rare and precious resource whose peak supply is coming ever-closer at an accelerating rate. Check out his book Silver - The People's Metal.

Again, apologies for the delay, I was bogged down with real-life commitments and was temporarily partially cut off from the blogosphere to an extent where it impeded my ability to compile these articles in a timely and efficient fashion.

As always, stay tuned for my next installment!

Oh, and so as to close with another video (a trend I would like to continue throughout these compilations), here's an interesting one that cropped up yesterday. It is in regards to the Venezuelan elections, which are taking place tomorrow, and will help to shape the future of not only the country but the rest of Latin America - who have rallied behind Hugo Chavez in the years he has been in power.

To accompany, please see this opinion piece - which sums up pretty much all of my views on Venezuelan politics. I'm critical of Chavez in many ways, but between the two candidates he is, in this author's opinion, clearly the only hope Venezuela has of maintaining sovereignty and independence in the face of US imperialism.


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