Pedal to the Metals

“I have never in my life seen a market set up technically for a big bull move as gold/silver and the mining stocks are now,” argues Dave Kranzler, in a Seeking Alpha article.  Kranzler, who also publishes The Golden Truth blog, writes that “Contrary to what’s being reported in the financial media and by market gurus in the U.S., it’s common knowledge abroad that the demand for physical gold globally has reached extraordinary, unprecedented levels. In fact, after yesterday’s price take-down in the paper Comex market, premiums for gold bars in Hong Kong and Singapore reached all-time highs…. It is this premium and unprecedented demand for physically deliverable gold by the large gold-consuming eastern hemisphere countries like China, India and Russia that will ultimately ignite an extended move higher in gold/silver. This move will feature a short-squeeze/short-covering dynamic in the paper futures market that will take the gold bears, and even most equivocating gold bulls by surprise.”

News & Views

Jesse’s Café Américain/WSJ:  Paper gold, metal gold – When worlds diverge; Five reasons why gold bulls are right

Reuters/Zero Hedge:  Gold & silver futures fall 1.6% as Fed pressured to end stimulus;  Goldman issues Q&A on tapering: Says “not yet”

Reuters/Dan Norcini:  Dollar rises past 103 yen, a 4 1/2 year high, on U.S. data; Surging US dollar derailing gold and silver

Bloomberg/Peak Prosperity:  U.S. stocks rally with dollar as data fuel economic confidence; The S&P 500 is now a gambler’s paradise with 76.9% up days in May so far

GoldSeek:  The casino vs. the gambler

Financial Post/MSN Money/Jim Sinclair:  Gold’s dichotomy: Investment demand plunges, but consumers keep buying; Why gold won’t stay down; Physical gold has it’s best days ahead

Bullion Street/Silver Investing News: Stage set for another scramble for gold, silver; Silver’s Thursday rally inspires some cautious optimism

Mineweb/Sharps Pixley:  Average silver prices could decline to $24/oz this year – CPM Group’s Silver Yearbook 2013

Market Oracle/GATA:   The last investable moment for silver; Golden bullseye – ‘Fundamentals always win eventually’ — but who will define ‘eventually’?

Got Gold Report/Miles Franklin/Saxo Markets:  Why the price smash affected GLD and SLV differently; Who got the 10 million ounces of gold that left GLD?; The great gold rout infographic

Mineweb/Times of India:  Anti-gold campaign at play in India?; Growth in demand for gold in India higher than China

CNBC/Bull Market Thinking:  Peter Schiff – Coming Japanese crisis will spike gold; Soros reports over $239 million in gold positions, buys $25 million in call options on juniors

In an interview with Mineweb, Steve Allen of asset manager Greenbriar Partners, argues against reading too much into gold’s drop, which he sees as “primarily ETF-related,” a subject he initially addressed in a blog post titled, “Keystroke Chaos.”

And as the ETF’s impact on the gold price is debated, The Golden Truth, in an analysis of outflows from GLD, concludes that “the big price smashing of gold in mid-April was an operation designed to shake loose enough 400 oz. gold bars out of GLD in order to satisfy the enormous delivery demands coming from Asia, India and even within Europe.  GLD is the only possible source of above-ground 400 oz. gold bars that could be used to satisfy this enormous demand for physically deliverable bars.”

News & Views

MarketWatch/Coin News:  Gold futures gain 1.7% to settle at highest in nearly a month; silver adds 0.5%; Gold and silver rebound, U.S. Mint bullion coins gain

Silver Doctors/Seeking Alpha:  Silver to grind higher while bears look for collapse to $18; Silver caught in cross currents

Jesse’s Café Américain/WC Varones:  A rather large long bet on silver made as futures took price lower; No silver for you!

Bloomberg:  Gold futures gain amid signs of physical demand in India, China; Gold imports by India seen topping 100 tons for a second month

Zero Hedge:  Chinese gold imports soar to monthly record on insatiable demand; China gold imports to keep growing after hitting record high

Mineweb/GATA:  Mr. Spock would definitely find current gold price levels illogical; Gold plunge was not natural market event, fund manager Auerback says

Got Gold Report: Gold corrections & mushroom clouds

Minyanville/Bloomberg:  Why Wall Street is unmoved by global gold fever; Gold’s biggest drop in 30 years fails to deter advocates

Merk Investments:  Currency wars: Winners and losers

Dan Norcini/Sydney Morning Herald:  Australian dollar drops sharply on RBA rate cute; George Soros’ billion dollar bet on Australian rate cut pays off

Spiegel/MarketWatch:  German euro-skeptic party gaining ground; Stodgy Netherlands is nation that’ll blow up euro

GoldSilver.com/Silver Investing News:  Torrent of fake U.S. Silver Eagle coins flood Canadian market; How to avoid and identify fake silver

Fox Business/Bloomberg:  JP Morgan confirms energy probe as regulatory troubles mount

Gold and silver ended mixed on Friday, with the former flat and the latter gaining 1% after a better-than-expected non-farm payrolls report showed that the U.S. added 165,000 jobs in April.  But one job that might be in jeopardy is that of Blythe Masters, JPMorgan Chase’s head of global commodities, and a bête noire of retail silver investors.

When JPMorgan took over Bear Stearns in 2008, it famously inherited a slew of silver shorts.  It also inherited from Bear Stearns the rights to sell electricity from power plants in California and Michigan.  And according to a Federal Energy Regulatory Commission (FERC) document leaked to the New York Times, “Government investigators have found that JPMorgan Chase devised ‘manipulative schemes’ that transformed ‘money-losing power plants into powerful profit centers,’ and that one of its most senior executives [Masters] gave ‘false and misleading statements’ under oath.”

News & Views

Reuters/East Valley Tribune:  Arizona governor vetoes bill making gold, silver legal tender

The Economist:  America’s jobs report: Not swooning, not soaring

RTT/Wall St. Cheat Sheet:  U.S. factory orders fall more than expected in March; Are falling factory orders a bad economic omen?

Got Gold Report/The Daily Bell:  Charles Biderman – Harsh consequences from the end of money printing; Fed is tightening. No, it’s loosening. No, it’s …

GoldMoney:  Fear Index April 2012 – The calm before the storm; Gold market report – reduced volatility

Bloomberg:  Gold volatility fueled by structured note trades, BNP says; Gold traders most bearish in three years after drop

Jesse’s Café Américain:  The metals bears advance to Stalingrad

MarketWatch/Peak Prosperity/Got Gold Report:  What bullion dealers are saying about gold demand; What the gold charts are telling us; Gold and silver COT report for May 3

SilverSeek/Sprott Money:  Little cracks in confidence; Ask the expert – John Embry

South China Morning Post/Mineweb: Chinese mothers beat Wall Street to force gold price rebound; Who’s smartest on gold – Chinese housewives or George Soros?

Bloomberg:  UBS says India gold flows at least 5 times the 12-month average; Gold imports by India to decline as central bank curbs purchases

GATA:  Tocqueville’s John Hathaway – Somebody is ‘sitting on the gold price’; Bill Buckler’s farewell – Denying gold market manipulation is silly

Bloomberg: Justice Department official:  U.S. prosecutors pursuing Libor convictions

Business Insider/MSN Money:  Regulators blame Libor fixing on the sex, drugs, and lavish perks of London banking; Earlier:  Did coked-up bankers cause the financial crisis?

In a lengthy acknowledgement of the growing interest in alternative currencies, Bloomberg reports that “Distrust of the Federal Reserve and concern that U.S. dollars may become worthless are fueling a push in more than a dozen states to recognize gold and silver coins as legal tender.“

One example cited is the proposed Texas Bullion Depository, which “might become a bi-partisan effort,” and according to Currency Wars‘ author Jim Rickards, “would offer sovereign backing for deposits and make buying and storing gold easier. He said the coin measures, while impractical, have symbolic value,” adding that “We are seeing a distinct movement back to a world where gold is considered money.”

News & Views

MarketWatch/South China Morning Post:  Gold down 0.2% to log fourth loss in five sessions; silver off 0.3%:  Article references this interview with George Soros

SafeHaven:  Au and Ag:  Test in progress

Gold Silver Worlds/Dan Norcini:  Silver sentiment reaches extreme levels;  Silver notes via chart

Silver Doctors/Zero Hedge: COT report:  Commercials cover massive 28 million oz of net silver shorts;  80% chance of 40% silver short squeeze

SilverSeek/Seeking Alpha:  The state of silver and other anomalous events; Silver: Let’s get ready to rumble

Michael Pento/Tim Iacono – Money flows into gold & silver are about to skyrocket; Dismal labor report gives precious metals markets new life

Sprott Group:  A retort to SocGen’s latest gold report

Alasdair Macleod/Paul Craig Roberts/Business Day:  Gold price suppression: the game goes on; The assault on gold; How the U.S. herds the ‘sheep’ away from the gold market

Gold Silver Worlds/GATA:  Gold & silver Comex prices may be manipulated but still accurate; Jim Sinclair: U.S. will start manipulating gold higher

Bloomberg/The Golden Truth:  Fed faces risk of fourth summer slump while pushing QE; Is the U.S. economy in serious trouble?

Doug Noland/South China Morning Post: Kuroda leapfrogs Bernanke; Japan stimulus will start currency war, say Chinese economists

Bullion Street/Mineweb:  UAE to build mega Gold refinery near Dubai; New Dubai gold and PM refinery to be one of world’s largest

Rediff.com:  India’s love affair with gold

Gold and silver futures gained 1.5% and 1.7% respectively after the March non-farm payrolls report showed a gain of only 88,000 jobs, the lowest level in nine months and a number that will “likely silence those calling for a phased withdrawal” of quantitative easing, according to USA Gold’s Peter Grant.

Reuters reports that “investors in droves bought back their bearish bets, boosting gold prices in a process known as short-covering, analysts said.” And one options trader told The Street that “There’s a lot of shorts in the market here” and “they were in control as of yesterday. But today it was quite painful to be short with that number that came out.”

Another number that came out was 663,000 — the increase in people not in the labor force, which means an estimated 90 million Americans are no longer looking for work.

News & Views

Jesse’s Café Américain:  Gold and silver charts – Bounce on a dose of reality

Reuters/WSJ:  Martin Hutchinson:  New despair seeps out of U.S. employment numbers; Bad news: Broad unemployment rate tumbles

MarketWatch/CNBC:  No QE tapering this year seen after weak jobs data; Forever Fed:  Jobs blues sets up eternal easing

Dan Norcini:  Payrolls number gives gold a jolt higher; Sinks S&P 500; Gold and mining shares part way

P. Radomski/Daily Gold/Money Morning:  Gold price breakout and breakdown; Charts to provide perspective for gold bulls; This gold prices chart points to a looming 24% jump

Bull Market Thinking:  Gold trader: “Once this bottom is formed, we may never see gold at these levels ever again”

Mineweb/GoldMoney:  Commerzbank:  Gold to remain in demand medium to long term; Interview with Marc Faber: ‘I would probably choose gold‘

Bloomberg:  Gold imports by India seen climbing as bullion nears bear market

Bullion Street/Rediff.com:  Supply constraints may hit India wedding season gold sale; Acute shortage of gold in south India

SafeHaven/GATA:  Tangled web suppresses gold and silver; Jim Sinclair:  Governments rig all markets now but gold is calling their bluff

Bloomberg/Naked Capitalism:  Kuroda leads Japan down Bernanke’s path of escalated easing

Zero Hedge:  Japan’s debt crisis visualized; George Soros warns “Central banks are creating financial instability“; Bridgewater asks, “Could Italy blow up the euro?”

KWN:  Rick Rule – The financial system may surprise you going forward

The Age/ICIJ: Mysterious mail to Australian journalist triggers global tax haven expose

As gold and silver futures end Tuesday with gains of 0.9% and 1.1% respectively, MarketWatch quotes the Got Gold Report’s Gene Arensberg, who says that short positions among large speculators such as hedge funds are about 60% higher than last May when gold found support near $1,526. (see above chart)

“If the funds are convinced gold’s correction is done, that means they have a much larger short position this time to cover,” said Arensberg, calling that “high-octane buying pressure.”  He also reasons that “Locals and smaller traders will want to front run the specs too, adding to the violence of the short-covering rally.  That could cause quite a surge in the futures price for gold short term, and it’s how the gold pullback last year ended.”   More from Arensberg, who charts Tuesday’s “Gold breakout attempt with higher volume.”

News & Views

Bloomberg:  Gold caps longest rally in six months amid easing speculation;

Silver Investing News/Mineweb:  Can silver outperform gold in 2013?; Rick Mills – Is buying some gold and silver on your radar screen?

Bloomberg:  Gold sales from Soros reveal 12-year bull run decay; Analyst:  Here’s why now is the time to buy gold

Yahoo! Finance:  Gold is an investor’s paradise, iiTrader’s Bill Baruch says

Daily Reckoning/Mineweb:  “Sorry, no gold today… we sent it to China“; Shanghai Futures Exchange to begin after-hours trade in 2013

BullionVault:  The financialization of commodities

Reuters:  Banks saved, but Europe risks “losing a generation“; Euro woes not over, says crisis-wary Bundesbank

Bloomberg/Sovereign Man:  Norway fund flees currencies tainted by stimulus addiction; Here’s a healthy currency most people have never even heard of

GoldSeek:  Dollar-crash proofing a portfolio

Mohamed El-Erian/The Daily Bell:  The Fed as ‘Oz, the great and powerful’; Seth Klarman yelp – The Fed has no clothes

Telegraph/Project Syndicate:  Sputtering global economy belies stockmarket boom; The great disconnect

SafeHaven/KWN:  Yin & yang, Dow Jones & gold; Richard Russell – Gold action, stock market melt-up & when to exit

Zero Hedge:  NYSE matched volume drops to new decade low In February; Who spends the most dollars lobbying Washington, DC?

Bull Market Thinking:  Lead counsel of silver manipulation complaint: A missing key ingredient may be needed for case to survive

Before gold and silver futures ended Friday down 1.6% and 1.7% respectively, Jesse’s Café Américain wrote in an intraday gold commentary that it was, “Hard to miss the deliberate price smackdown. As I said yesterday, ‘I will not be surprised to see a final big move to run the stops to the downside in the precious metals, and take additional shares and units of paper claims before the markets break free.’

So is this ‘the final big move?’ Of course I do not know, no one does. But gold is now deeply oversold, and we are nearing the rinse phase of the wash-rinse cycle, at least according to the technical indicators. Things like this are a pity, because they make a sham of the markets. But what else is new. Three day weekend ahead. And the currency war is on.” More on that from MarketWatch, which reports on “How gold will benefit from a currency war.”

News & Views

SilverSeek/CNBC:  Gold and silver fall about 4% & 5% on the week; Gold falls below $1,600 – What’s next?

Zero Hedge:  POMO-less day plunges stocks and precious metals; VIX/VWAP save the Day; Gold at $1600, recoupling with stocks post QE2

Sprott Asset Management:  Precious metals round table – Eric Sprott, John Embry & Rick Rule

CNBC:  What currency war? Move along, G-20 leaders say; Draghi: currency talk fruitless, self-defeating

Puru Saxena/Business Insider:  Race to debase; The currency wars will only get worse

Michael Pento:  Currency gold war

KWN:  Fitzpatrick & Greyerz – Fantastic gold chart & commentary; Hathaway – Give-up phase as Gartman shorting gold Is bullish

The Golden Truth/Independent:  Starting to feel like a bottom; Still worth taking a shine to gold

Bloomberg/Reuters:  Billionaires Soros, Bacon cut gold holdings on decline; Paulson & Co held on to gold in 4th quarter, others cut

Business Insider:  Central banks bought more gold in February; From watery bourbon to horse-meat chili: Hidden inflation is everywhere

WSJ:  The Rookie:  If there’s a crisis on Jack Lew’s Treasury watch, buy gold

Reuters:  Turkey to Iran gold trade wiped out by new U.S. sanction; Big powers to offer easing gold sanctions at Iran nuclear talks

With Jim Cramer pitching gold as essential portfolio insurance, Tim Iacono asks, “if you’re thinking of finally raising your gold asset allocation from its current zero percent or five percent, what would be a good level going into 2013?”  He suggests that “20 percent is a good place to start,” and notes that Cramer “has recommended 25 percent on multiple occasions in recent years.”  He also cites Richard Russell writing this week in his newsletter:  “I think one-third to one half of your assets in gold bullion coins and the rest in cash (money market funds or CDs) makes sense to me.”

News & Views

MarketWatch/GoldSeek:  Gold and silver futures off 0.4% and 0.9% respectively on Friday; Both end barely higher on the week

Zero Hedge:  CME lowers gold margin by 9%; Friday humor: Top ten reasons why fiat currency is superior to gold

Bloomberg:  Gold bulls strongest since August as funds retreat

Seeking Alpha:  Comex gold: Wash, rinse, repeat – The bottom may be in;  Dr. Marc Faber’s market outlook for 2013

KWN:  6 gold charts that depict stunning Western decline; 2013 – Financial destruction & how gold & silver will perform

Resource Investor/Silver Investing News: Gold & silver: Set for strong price growth in 2013; Silver holdings on rise as year draws to a close

SilverSeek/Mineweb:  Future silver prices and inflation – Bernanke says don’t worry; Silver, Rogers and cash – Mineweb‘s top 10 for 2012

Business Insider/Phoenix Capital Research:  US stock market is one of world’s most expensive; What happens when the bond markets turn against the US?

GoldCore:  ‘Fiscal cliff’ distracts as ‘fiscal abyss’ in Japan, UK and U.S. cometh

P. Radomski/SafeHaven:  Rising euro, falling dollar and… correlations turned upside down; Don’t expect the news to tell you where EUR/USD is going next

Zero Hedge/Spiegel:  Europe ends quiet week with VIXplosion to six-week highs; EU summit reveals a paralyzed continent

GoldSeek:  A gold & silver paper default in the wake of an EU collapse

Noting that “A weaker trade-weighted dollar combined with strong demand from ETFs, hedge funds and emerging market central banks to push precious metals prices sharply higher last week,” Tim Iacono examines how “More dollar weakness could send precious metals much higher.”

Referring to the above chart, he writes that “From week-to-week, it’s often difficult to discern any relationship between” the dollar and gold, “but two things are clear in the chart over the past year – when the dollar undergoes an extended decline, the gold price rises and when the dollar undergoes an extended rise, the gold price falls.”

And he suggests that drawn-out “fiscal cliff” negotiations “could see last week’s dollar reversal quickly transform into an extended move lower and, when considering that the Federal Reserve is likely to announce another $45 billion in outright money printing when they meet in two-and-a-half weeks, the dollar’s declines could accelerate. Of course, new money printing efforts in Japan, the U.K., and mainland Europe could limit the dollar’s decline.”

News & Views

MarketWatch/Reuters:  Gold ends 0.1% lower with focus on Europe; silver gains 0.1%

Jesse’s Café Américain/KWN:  Gold daily and silver weekly charts – Option expiration Tuesday; John Embry – We are about to crush 15 years of resistance in gold & silver

GoldSeek/Alasdair Macleod:  A macro view of T bonds, gold & money supply; Shadow banking: The next landmine

Gold Silver Worlds:  Dow Jones to gold price ratio near decade low; Marc Faber explains unintended consequences of money printing & favors gold

Bloomberg/Casey Research: China blames Fed’s QE policy for high currency volatility; The gold market through China’s eyes

BullionVault:  All a-glow with hot money from China

KWN:  The Japanese are about to enter the gold market in size; More filings from large & influential investors buying gold

Bull Market Thinking:   The Soros position nobody is talking about

Ted Butler/GATA:  A silver manipulation timeline; Gold, silver market manipulation argued on ‘Keiser Report’

WSJ/Gary North:  Treasury owns the U.S. gold reserve; Gold bugs & anti-gold bugs

GoldCore:  “Gold from the ATM” in Turkey as gold deposits surge in Turkish bank

Guardian:  Offshore secrets revealed: the shadowy side of a booming industry; Sham directors: the woman running 1,200 companies from a Caribbean rock

Bullion Bulls Canada:  Black Friday mirage hides U.S. retail depression

WSJ/Iacono Research:  Higher gas-tax idea joins fiscal cliff talks; Another great fiscal cliff graphic

Although Fed Chairman Bernanke didn’t signal any further stimulative measures in a speech on Tuesday, Bloomberg reports that gold’s 12-year rally “is poised to continue in 2013 as central bank stimulus spurs investors from John Paulson to George Soros to accumulate the highest combined bullion holdings ever.” It also surveyed 16 analysts, and according to their median estimates, gold “will rise every quarter next year and average $1,925 an ounce in the final three months, or 11 percent more than now.”

And Forbes‘ Robert Lenzner writes of being surprised to “hear from my gold guru that he had decided to go back in and replace the 50% of his holdings he sold some two years ago. I asked the reason why? Because all I see is deflation and austerity…”  He then “e-mailed me the following message:  ‘A deflationary world will have all central banks printing money. And it will catch up with us. At some point when money velocity picks up gold will work out.’”

News & Views

Wall St. Cheat Sheet/Jesse’s Café Américain:  Gold & silver decline as Bernanke speaks

Mining Weekly/Mineweb:  Investors showing more interest in silver, says GFMS report; David Morgan:  Silver investment demand growing in tight market

Metal Miner:  Silver prices:  Set to shine?

Gold Silver Worlds:  Negative real interest rates continue to drive the gold price; Mining shares weak but gold & silver bullion strong

Market Oracle/Bloomberg:  Gold’s seasonal trades analysis; Options consultant – Gold volatility at all-time low

Frank Holmes/Mineweb:  Indian gold demand picks up; Gold buying grows as Indian festival season heats up

Resource Investor:  China’s golden plan

Bullion Street:  China desperate to extend operating lives of gold mines; CGSE to launch spot, yuan-based silver trade in Hong Kong next year

MarketWatch:  IMF expands list of official reserve assets, adds Aussie, Canadian dollars

AFP/Reuters:  EU in fresh trouble as upcoming budget summit faces collapse; Moody’s strips France of triple-A rating; a notch lower

Alasdair Macleod:  Europe is now sinking fast:  The good are being dragged down by the bad

Zero Hedge:  The world wide web of debt : Who owes what to whom?; On political brinksmanship and stock market ‘vigilantes’

Barron’s/Eric Parnell: Jeremy Grantham: 3% GDP growth ‘gone forever’; Outlook for 2013 & beyond: Exploring the endgame for financial markets

Reporting that gold and silver futures were down slightly less than 1% on the week, MarketWatch quotes BullionVault‘s Ben Traynor as saying, “the biggest influence on the gold price right now is the ongoing uncertainty over the so-called fiscal cliff. Unlike summer 2011, when the debt ceiling shenanigans propelled gold toward a new record, this time around we’re seeing strength in the dollar, which is weighing on gold.”

The article also notes that on Friday, metals consultancy Thomson Reuters GFMS released its Interim Silver Market Review.  According to a Dow Jones report, the review says that “Silver prices are set to rally in 2013 and could exceed the all-time high of around $50 a troy ounce, as concerns about easy-money policies bolster investment demand for the precious metal.”

News & Views

Jesse’s Café Américain:  Gold daily and silver weekly charts – Coiling, coiling, coiling for a move…

Silver Investing News/SilverSeek:  Silver remains constrained amid liquidation; Silver is relatively strong in the world of risk these days

Mineweb:  India’s wedding season to lift gold prices; High gold prices push many Indians to silver for Diwali

Dan Norcini:  Gold supported by rockets in Israel; Big jump in Federal Reserve MBS debt purchases

MarketWatch:  QE3 to stay even if fiscal cliff averted, says Fed’s Dennis Lockhart in speech; Banks told by Fed to test for 12% unemployment

Zero Hedge: Fiscal cliff can about to be kicked into 2013?; 150 seconds of “You can’t handle the European truth” From Kyle Bass

The Gold Report: John Mauldin’s roadmap to surviving the fiscal cliff; How to speculate on precious metals without gambler’s ruin

Bloomberg/Reuters:  Billionaires Soros, Bacon boost gold holdings as prices gain; John Paulson holds on to huge gold pile in third quarter

KWN:  Ben Davies – There as a new buyer entering the gold market; Special Friday gold ‘chart mania‘

ABC News/FTC:  Gold may pass $2,000, but consumers warned against scams

Bullion Bulls Canada:  Silver’s smoking guns, Part I: Mining paradox

Reuters: JPMorgan faces U.S. action on anti money-laundering practices; They’re buying what? US investors latch onto Iraqi dinar

AEI/National Geographic:  ‘Saudi Dakota’ sets more records for oil production in September; Alaska’s clash over salmon & gold goes national

Phoenix Capital Research/Of Two Minds:  The “C” word no one in the mainstream financial media will touch; Start your own financial media channel with this template

ProPublica:  From Russia with PR

Following up on his Friday post detailing the positioning of hedge funds in the silver and gold markets (see above chart for silver), Dan Norcini sees commodities as “a sector that apparently is catching the attention of the hedge fund community once again as risk trades come back into favor courtesy of what seems to be another wave of money printing/bond buying about to launch.”

He goes on to reiterate his argument that “what I have been saying and writing about this gold and silver market for the last 8 years or so,” is that “speculative money is what drives the markets. Commercial activity does not. As long as speculators are buying, prices will rise regardless of what the commercials are doing.”

Related Links:

Dow Jones:  Gold pauses as traders await Fed news — drops 0.5% with silver off 0.2%

Coin News/Silver Coins Today:  Gold, silver retreat on profit taking, U.S. bullion coins surge; Melt values surge for American silver coins and sets

GoldCore/Truman Factor:  Gold in euros touches new record high; As the euro stumbles, Spaniards look to gold

MarketWatch:  Peter Brimelow:  Gold gets some powerful friends:  Wall Street notes gold’s strength

SafeHaven/GoldMoney:  Silver at multi-month high; The silver streak has only just begun

Tim Iacono:  Gold & silver surge on anticipation of more more central bank money printing; Global public debt growing at an astonishing rate

Forbes:  Beijing may unleash more fiscal stimulus to spark economic rebound

Bloomberg:  Fed stuck at zero into 2015, QE odds reach 99%; Caroline Baum: Bernanke has already told us: More stimulus is coming

Zero Hedge:  Ex-Fed governor:  Odds of QE3 50-50 at best; Goldman on the Fed: Perception over substance; JPMorgan:  World is already “drowning in liquidity”; Will political Fed launch new QE with less than two months to the election?

Got Gold Report:  David Stockman:  Fed is the heart of the problem

NBC News/Alasdair Macleod:  Central bank money machines fail to spur global economy; Central bankers and politicians are running out of ideas

CNN Money/NYRB:  Soros to Germany:  Be part of the solution or leave/Article

KWN:  James Turk – No time to wait for a pullback, gold to hit new highs; Gerald Celente – Gold, silver & a major October surprise

Silver Gold Bull:  Secret panic