Archive for September, 2015

Planned Parenthood leader testifies to Congress…

From Bloomberg:

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Planned Parenthood’s leader defended the group against accusations that it sells tissue from aborted fetuses for profit, telling U.S. lawmakers that claims based on undercover videos made by anti-abortion groups are “offensive and categorically untrue.”

“Planned Parenthood policies not only comply with, but indeed go beyond the requirements of the law,” Cecile Richards, president of the Planned Parenthood Federation of America, told members of the House Committee on Oversight and Government Reform on Tuesday in Washington. Using fetal tissue in medical research is legal, she said.

Committee Chairman Jason Chaffetz, a Utah Republican, said Planned Parenthood doesn’t need taxpayer dollars.

Cecile Richards

“As far as I can tell, this is an organization that doesn’t need federal subsidies,” Chaffetz said at a hearing on the reproductive health-care provider’s use of taxpayer funding. “They’re pretty good at fundraising; they don’t really need taxpayer dollars.”

Conservative House Republicans have threatened a government shutdown if lawmakers don’t cut off federal funding for Planned Parenthood over the videos. The Republican-controlled Senate and House plan to pass a short-term spending bill this week that includes money for Planned Parenthood, though that sets up another showdown when the measure expires Dec. 11.

Undercover Videos

Conservatives have said they are outraged by undercover videos purporting to show Planned Parenthood officials discussing reimbursement for providing tissue from aborted fetuses to researchers. The organization has said it doesn’t sell fetal tissue for profit, and instead receives reimbursement for the cost of collecting and delivering it. Bloomberg Philanthropies provides financial support for Planned Parenthood.

Richards said the videos were “deceptively edited” and that threats against doctors who provide abortion and their families have gotten worse since the films surfaced this summer.

She said she apologized after the release of the first video because she believed it “was inappropriate” to discuss clinical issues in a “non-clinical setting.”

Richards said fewer than 1 percent of her organization’s health centers provide fetal tissue that patients donate for research.

Chaffetz began the hearing by questioning Richards’s compensation and criticizing Planned Parenthood’s spending on political campaigns.

“That has absolutely nothing to do with providing health care to young women that need care, that need a breast exam,” Chaffetz said. “It’s a political organization.”

Republicans suggested the group overpays its employees. Chaffetz said that Richards is paid “nearly $600,000 a year,” and John Mica of Florida said, “there are dozens of employees in the quarter million dollar range.”

Democrats, including Virginia Representative Gerry Connolly, said that attacking Richards’s salary was sexist.

“I hope every American woman is watching today’s hearing,” Connolly said.

“There is one simple reason we are at this point — Republicans want to outlaw a woman’s right to choose,” Representative Carolyn Maloney, a New York Democrat, said at the start of the hearing. “We need to recognize this fight for what it is; it is about banning a woman’s right to choose, and it is being driven by politicians — most of whom are men — who think they have a right to dictate to women about their most personal and private decisions.”

House Inquiry

House Speaker John Boehner, an Ohio Republican whose decision last week to resign was partly driven by the dispute over Planned Parenthood, said Sunday the House will set up a select committee to investigate the videos. Republicans have proposed transferring Medicaid funding from Planned Parenthood to other women’s health services.

Planned Parenthood operates through a national office and 59 affiliates, which provide disease screenings and other medical services through approximately 700 local health centers.

The group receives about one-third of its annual revenue, or about $450 million, from federal programs, according to the Congressional Budget Office. Of that amount, about $390 million is provided by Medicaid. Planned Parenthood affiliates reported spending $64.4 million in Title X funding, a federal family planning program, in fiscal 2012, according to the Congressional Research Service.

A ban on federally funded abortions has been in place for decades. Recent laws have made exceptions for pregnancies that result from rape or incest or if the mother’s life is endangered.


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2016 Presidential candidates are debating Social Security. Here’s the #1 way to prepare for potential cuts next year… learn more

Wednesday, September 30th, 2015 Invest, News, Wealth Comments Off on Planned Parenthood leader testifies to Congress…

Why its ‘do or die’ right now for the bull market

From Jeff Clark, Editor, Stansberry Short Report:

The bulls need to make a stand RIGHT NOW.

If they don’t, the bull market is over…

I’ve been cautious on the broad stock market over the past year for a variety of reasons…

First, the market typically forms an important, long-term peak about every seven years. The last peak was in late 2007. So we’re overdue for one now.

Second, the yield on the 10-year Treasury note spiked sharply higher a few months ago. Large interest-rate spikes often occur a few months before a major stock market top.

Third, margin debt – the amount of borrowed money investors have put into the stock market – reached an all-time high of $507 billion in April. This indicator also tends to peak a few months before a major stock market top.

The only thing keeping me from turning outright bearish on the stock market has been the price action. The uptrend of this bull market has been remarkably strong. Buyers have stepped up during every small pullback over the past few years.

Until the recent decline, the last time the S&P 500 had fallen more than 10% from its highs was way back in November 2011.

But now that’s changing…

SEE ALSO: Dr. Ron Paul Describes Exactly What America’s Next Crisis Will Look Like

At the bottom of the decline last month, the S&P 500 was trading 11% below its all-time high. That’s the biggest correction we’ve seen in the past four years. And unless stocks rally sharply over the next two trading sessions, the selloff could get a whole lot worse.

Take a look at this monthly chart of the S&P 500 plotted with its 20-month exponential moving average (EMA)…

I use the 20-month EMA as the defining line between bull markets and bear markets. If the S&P 500 is trading above the line, stocks are in a bull market. If the index dips below the line, stocks are in a bear market.

The red circles on the chart show the starts of the bear markets in 2000 and 2007. They both started as the S&P 500 closed below its 20-month EMA and a few months after the moving average convergence divergence (MACD) momentum indicator turned lower from an extended position.

The red arrows point to the MACD reversals. This indicator gave investors fair warning back in 2000 and 2007. It’s giving us a good warning this time as well.

The MACD indicator turned lower a few months ago. And the selloff in the stock market over the past week has pushed the S&P 500 below its 20-month EMA.

That means there’s a good chance we’re headed toward a bear market and a sustained period of lower stock prices.

Now, before we get too bearish… let’s remember that this is a monthly chart of the S&P 500. All that matters is how the index closes at the end of the month. September still has two trading days left. If the S&P 500 can rally and end the month above its 20-month EMA, the bull market will remain intact for at least another month.

Also, as you can see from the red circles on the chart, it is common for the S&P 500 to come back up and “kiss” the 20-month EMA from below. This happens because the decline that pushes the S&P 500 below the 20-month EMA usually creates extreme oversold conditions. So the market bounces back to work off those oversold conditions before making a larger move lower.

It’s that kiss from below that gives traders a chance to unload long positions and then short stocks in anticipation of lower prices.

But we’ll cross that bridge if we come to it.

For now, the market still has two more trading days to climb back above the 20-month EMA and keep the bull alive a while longer. If it doesn’t, this could be the start of a bear market.

Best regards and good trading,

Jeff Clark

Wednesday, September 30th, 2015 Invest, News, Wealth Comments Off on Why its ‘do or die’ right now for the bull market

Carl Icahn: ‘Danger ahead…’

From Justin Dove, Editor, The Crux:

Carl Icahn just made a big warning to investors. According to him, we could be headed for another 2008-style financial crisis.

That’s not all… He also goes after the biggest political issues facing the U.S. right now. One of the biggest he discusses is the absurdity of the “carried interest tax loophole” and how it allows many on Wall Street to earn hundreds of millions of dollars without paying any taxes on profits. He also slams the U.S. government for its moronic double-taxation laws that keep massive amounts of foreign profits from American businesses out of the country.

You’ve got to see this. Here’s a copy of the video from Vimeo.com

READ MORE: Why America is NOT Normal – Dr. Ron Paul’s 8 facts prove how bad things really are

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Wednesday, September 30th, 2015 Invest, News, Wealth Comments Off on Carl Icahn: ‘Danger ahead…’

3 simple habits for building long-term wealth

From Bill Bonner, Chairman, Bonner & Partners:

Today, three basic skills for building long-term wealth… prompted by some recent reader feedback.

We receive emails from readers every day.

We can’t respond to all of them, of course… but we think about them a lot.

Recently, we got two particularly interesting emails. One was from a woman who felt she had been badly handled in a divorce and now struggles to stay afloat financially.

Another came from a man on the opposite side of a divorce transaction. He struggled for years with alimony, child support, and living expenses. He eventually gave up the struggle, declared bankruptcy, and sank beneath the water.

More on this in a minute…

First, let’s go back to the world of money… where the stakes are lower. The worst that can happen is that you lose your money. And the game is much simpler.

Sky-High Valuations… Sky-High Debt

Yesterday, the Dow fell 180 points – or about 1%.

If you believe what you read in the mainstream press, “global growth concerns” were behind the drop. But nobody knows exactly why investors buy or why they sell.

And if the press is looking for a reason investors are selling now, they don’t have to look far.

U.S. stocks are more expensive today than during 90% of history. And when stocks are “priced to perfection,” as they are now, everything has to go right – with growth, stability, and prosperity.

Not impossible. But it doesn’t seem like a good bet to us.

Meanwhile, global debt levels are at a record high. According to a recent report by McKinsey, total outstanding global debt topped $200 trillion as of the second quarter last year. That’s a $57 trillion increase from pre-crisis levels.

When debt is so high things tend to go wrong. Many investments and speculations – financed with debt – don’t work out as planned. Debtors can’t pay. Creditors panic. And investors – whose assets were priced for perfection – head for the exits.

SEE ALSO: Dr. Ron Paul Describes Exactly What America’s Next Crisis Will Look Like

To Fret or Not to Fret…

Don’t expect Wall Street’s shills to share this view.

Jim Cramer was on CNBC yesterday urging investors to “snatch up these money-making opportunities.”

And a report on Bloomberg told us to beware of the current extreme levels of bearish sentiment (often a contrarian indicator).

Investors hate stocks – again.

The cost to hedge against stock losses is soaring, valuations are contracting, and bearishness among professional stock handicappers is rising the most in three decades.

Fret not. All of this is good news for bulls, if history is any guide. Since 1963, the Standard & Poor’s 500 Index has advanced an average 11% in the year after newsletter writers surveyed by Investors Intelligence were as pessimistic as they are now, data compiled by Bloomberg show. That compares with an annualized return of 8.3%.

Our advice to investors – fret.

Newsletter analysts are just like everyone else: Sometimes right. Sometimes wrong.

They tend to be more bearish than Wall Street analysts because they aren’t selling stocks and bonds. They are selling advice.

And they know that prices for stocks and bonds go up as well as down. They also know that, dollar for dollar, losses are twice as powerful, psychologically, as gains.

And don’t forget, the world’s money system changed from a system backed by gold to a system backed by nothing but government promises at the end of the 1960s.

In 1968, President Johnson asked Congress to end the requirement to back dollars with gold. And it complied. Then, in 1971, President Nixon ended the direct convertibility of dollars to gold when he “closed the gold window.”

This allowed central banks to fiddle with the supply of money as never before.

In other words, past performance is no guarantee of future performance, as the SEC reminds us. This time, the grumpy, gloomy, out-of-step, often nearly broke newsletter editors could be right!

The Habits of Wealth

Back to that reader feedback I mentioned earlier…

As we’ve been telling members of our family wealth advisory, Bonner & Partners Family Office, family issues are usually far more important to your well-being, your happiness – and even your financial security – than money.

But they share several similarities. In both cases, success depends on habits, personalities, and luck. Virtue pays off – not always, but often. Fidelity. Humility. Generosity. Steadfastness. Hard work. These all tend to pay off in the end, too.

Even if it doesn’t work this way, you are probably better off believing it does. At least then, when things don’t work out, it’s not your fault.

When we read letters from someone with little money, we want to help. Here’s one we received lately:

OK. Here I am, relatively new to your company. Currently, I live on Social Security and a monthly retirement income. This basically amounts to a little over $2,000 a month.

When I got married we started a retirement plan, which we added to every month. Then, 21 years later, divorce happened, and he got our retirement fund. Plus, he also has a retirement fund from his career.

I had graduated from high school and worked to put him thru college culminating in his master’s degree. I had a high school degree, working at various clerical jobs until the children arrived and I quit my job to become a full time mother.

I have no savings, investments, etc. I am 70 years old and would like you to address how I can deal with the “gloom and doom” I read about in your reports.

We can’t give personalized financial advice. But we have some general thoughts about people in a similar situation.

For anyone beginning to build wealth, we have some million-dollar advice that we will give to you for nothing: Keep it simple. Keep it cheap. And keep at it.

We sell investment research, analysis, and advice. And our marketers work hard to make them sound as attractive as possible. But when you don’t have much money to invest, an expensive trading service will probably not help you.

Yes, we hope that our modest insights and humble thoughts –now available toDiary readers at a deep discount for $39 a year in The Bill Bonner Letter– are worth the money.

But please don’t spend any more… unless you have the money to make more expensive advice worthwhile.

And no, we are not saying that sophisticated, alpha-hunting systems won’t work. In the right hands, at the right time, they can work spectacularly well.

But finding them takes time and knowledge. The amateur will almost certainly run out of money before he runs into an expensive trading program that makes him rich.

The basic skills for building wealth are so simple they barely deserve mention. And like building a family, they take time… often a whole lifetime.

  1. Spend less than you earn…
  2. Invest carefully in the surest, safest things you can find. (There’s nothing wrong with a highly diversified, low-cost index fund, such as those on offer from The Vanguard Group.)
  3. As you earn more money, then… and only then… can you afford to splash out on lifestyle enhancements and more sophisticated investment tools.

Do this for 20… 30… 40 years… Then let us know how it works out.

Don’t have 40 years?

Not even 20?

Hmmm… more to come!

Regards,

Bill

Crux note: Soaring global debt levels… and sky-high stock market valuations… aren’t the only threat to your wealth right now.

In fact, Bill has been tracking a threat so big that it could cut us off from basic things that we depend on every day: ATMs, credit cards, and more.

Sounds crazy, but it looks like it’s finally about to hit. Read on here for Bill’s special report on how this crisis will strike and how to protect yourself.

Wednesday, September 30th, 2015 Invest, News, Wealth Comments Off on 3 simple habits for building long-term wealth

Here’s how the wealthiest Americans are preparing for higher rates

From Bloomberg:

More wealthy Americans now say they’re reducing debt than at any time in the past decade, and the Federal Reserve may be to thank.

About 15 percent of high-income households, those in the top third of the earnings ladder, reported debt declined in September more than any other time since 2005, according to Friday’s consumer-sentiment report from the University of Michigan. The share was only one percentage point lower than a 35-year peak reached in April 2000. Those same households reported making further progress on their finances, while the bottom two-thirds of the income distribution said their balance sheets worsened.

READ MORE: Why America is NOT Normal – Dr. Ron Paul’s 8 facts prove how bad things really are


“The prospects of rising interest rates didn’t cause high-income families to borrow in advance of those hikes – it caused them to pay down their debt,” Richard Curtin, director of the Michigan Survey of Consumers, said on a Bloomberg conference call after the report. “It could be that the dodging of the hike this month meant more consumers actually looked at their finances more critically.”

Fed policy makers delayed raising the benchmark interest rate at their meeting this month as market turmoil and international-growth concerns threaten to derail the U.S. economy and slow inflation even further. Still, Fed Chair Janet Yellen said Thursday that she and others on the Federal Open Market Committee are ready to raise interest rates this year.

A late-month confidence boost among wealthier Americans in September kept the broader sentiment gauge from falling as much as forecast. Michigan’s final reading for the month showed its confidence gauge decreased to 87.2, the lowest level since October, from 91.9 in August. The median projection in a Bloomberg survey called for a reading of 86.5.

Wednesday, September 30th, 2015 Invest, News, Wealth Comments Off on Here’s how the wealthiest Americans are preparing for higher rates

Here’s the latest evidence of gold-price manipulation

From Chris Martenson at PeakProsperity:

One of our long-running themes here is that the truly historic and massive flows of gold from West to East is (someday) going to stop, for the simple reason that there will be no more physical bullion left to move.

It’s just a basic supply versus demand issue. At current rates of flow, sooner or later the West will entirely run out of physical gold to sell to China and India. Although long before that hard limit, we suspect that the remaining holders of gold in the West will cease their willingness to part with their gold.

So the date at which “the West runs out of gold to sell” is somewhere between now and whenever the last willing Western seller parts with their last ounce. As each day passes, we get closer and closer to that fateful moment.

This report centers on preponderance of fascinating data revealing the extent of the West’s massive dis-hoarding of physical gold, for the first time, begins to allow us to start estimating the range of end-dates for the flow to the East.

Here’s the punchline: there’s an enormous and growing disconnect between the cash and physical markets for gold. This is exactly what we would expect to precede a major market-shaking event based on a physical gold shortage.

Stopping the Flows

There are only two outcomes that will stop the process of Western gold flowing East, one illegitimate and the other legitimate.

  1. It becomes illegal to sell gold. This is the favored approach of central planners who prefer to force change by dictate rather than via free markets and free will. Unfortunately, this strain of political intervention is dominant in the West, particularly in the U.S. and E.U.
  2. The price of gold dramatically rises. A large increase in the price of gold will (paradoxically) cause greater demand for gold in the West and (sensibly) less demand in the East. This is what should legitimately happen given current supply and demand dynamics. But it may not.

There’s always a third option, we suppose: economically carpet-bombing China and India’s financial systems to scare/force some gold back out. Consider such an approach along the ‘economic hitman’ lines of thinking.

This would be done, for example, by having outside interests sell the Rupee furiously, driving down its value and forcing the Indian monetary authorities to defend it by using up foreign reserves to buy the Rupee. Then wait for India to run out of foreign reserves and then casually ‘suggest’ that its government use gold sales to continue defending its currency. India’s leaders would have to find ways to somehow ‘coax’ gold from its citizens. I think we can all imagine the sorts of draconian rules and penalties that desperate governments would deploy in such a situation.

As a side note, I believe this is the same process that was used to ‘coax’ a lot of gold out of the GLD trust since 2012. After enough bear raids on the price of gold, which began somewhat suspiciously almost exactly on the date that QE3 was announced, Western gold ‘investors’ lost interest in the yellow metal, sold their GLD shares in droves, and hundreds of tons of gold were liberated from that stockpile.

What is truly odd from a chart perspective: this hammering down of gold started just after it had broken to the upside out of a textbook perfect triangle, when it looked seemingly ready to head off to higher values:

But in the days immediately following the QE3 announcement, gold shed $100, then barely recovered, and just wandered lower until it was violently slammed from $1550 to $1350 over one night (of course) in April 2013.

Now this was highly fortuitous for the ever-lucky Federal Reserve. After launching the largest money printing campaign in U.S. history, the Fed did not need gold heading any higher, possibly providing a signal that would cast doubt on the wisdom or possible effectiveness of its easy-money policies. Policies, mind you, that the years since have proven to do little more than enrich the banker class and the 0.1%, as well as lard the system with extraordinary levels of new indebtedness and liquidity.

The Fed Indeed Cares About Gold

Gold, when unfettered, has a habit of sending signals that the Fed really doesn’t like. Therefore the Fed is at the top of everyone’s suspect list when it comes to wondering who might be behind the suspicious gold slams. Whether the Fed does it directly is rather doubtful; but they have a lot of useful proxies out there in their cartel network.

To reveal the extent to which gold sits front and center in the Fed’s mind, and how they think of it, here’s an excerpt from a 1993 FOMC meeting’s full transcript. Note that the full meeting notes from Fed meetings are only released years after the fact. The most recent ones available are only from 2009. Listen to what this FOMC voting member had to say about gold:

At the last meeting I was very concerned about what commodity prices were doing. And as you know, they got lucky again and told us that the rate of inflation was higher than we thought it was.

Now, I know there’s nothing to it but they did get lucky. I’ve had plenty of econometric studies tell me how lucky commodity prices can get. I told you at the time that the reason I had not been upset before the March FOMC meeting was that the price of gold was well behaved.

But I said that the price of gold was moving. The price of gold at that time had moved up from 328 to 344, and I don’t know what I was so excited about! I guess it was that I thought the price of gold was going on up. Now, if the price of gold goes up, long bond rates will not be involved.

People can talk about gold’s price being due to what the Chinese are buying; that’s the silliest nonsense that ever wasThe price of gold is largely determined by what people who do not have trust in fiat money system want to use for an escape out of any currency, and they want to gain security through owning gold.

A monetary policy step at this time is a win/win. I don’t know what is going to happen for sure. I hope Mike is correct that the rate of inflation will move back down to 2.6 percent for the remaining 8 months of this calendar year. If we make a move and Mike is correct, we could take credit for having accomplished this and the price of gold will soon be down to the 328 level and we can lower the fed funds rate at that point in time and declare victory.

(Source – Fed)

There it is, in black and white from an FOMC member’s own mouth spelling out the primary reason why I hold gold: I lack faith in our fiat money system. He nailed it. Or rather, I have very great faith that the people managing the money system will print too much and ultimately destroy it. Same thing, said differently.

And of course the people at the Fed are acutely aware of gold’s role as a barometer of people’s faith in ‘fiat money.’ Of course they track it very carefully, discuss it, and worry about it when it is sending ‘the wrong signals.’ I would, too, if in their shoes.

The Federal Reserve Note (a.k.a. the U.S. dollar) is literally nothing more than an idea. It has no intrinsic value. America’s money supply is just digital ones and zeros careening about the planet, accompanied by a much smaller amount of actual paper currency. The last thing an idea needs is to be exposed as fraudulent. Trust is everything for a currency — when that dies, the currency dies.

The other thing you can note from these FOMC minutes is that gold pops up 19 times in the conversation. The Fed members are actively and deliberately discussing its price, role in setting interest rates, and the psychological impact of a rising or falling gold price.

Later in that same meeting Mr. Greenspan says:

My inclination for today — and I’m frankly most curious to get other people’s views–would be to go to a tilt toward tightness and to watch the psychology as best we can. By the latter I mean to watch what is happening to the bond market, the exchange markets, and the price of gold…

I have one other issue I’d like to throw on the table. I hesitate to do it, but let me tell you some of the issues that are involved here. If we are dealing with psychology, then the thermometers one uses to measure it have an effect. I was raising the question on the side with Governor Mullins of what would happen if the Treasury sold a little gold in this market.

There’s an interesting question here because if the gold price broke in that context, the thermometer would not be just a measuring tool. It would basically affect the underlying psychology. Now, we don’t have the legal right to sell gold but I’m just frankly curious about what people’s views are on situations of this nature because something unusual is involved in policy here. We’re not just going through the standard policy where the money supply is expanding, the economy is expanding, and the Fed tightens. This is a wholly different thing.

The recap of all this is that the Fed watches the price of gold carefully, frets over whether the price of gold is ‘sending the right signals’ to market participants, and pays attention to gold’s impact on market psychology (with an eye to controlling it).

In short, the Fed keeps a close eye on the “golden thermometer.”

Back to the supply story for gold. Not long after gold began its downward price movement in 2012, the GLD trust began coughing up a lot of gold, eventually shedding more than 500 tonnes; a truly massive amount.


(Source)

In my mind, the absolute slamming of gold in 2013 was done by a few select entities and represents one of the clearest cases of price manipulation on the recent record. While we can debate the reasons ‘why’ gold was manipulated lower or ‘who’ did it, to me, there’s no question about how it was done. Or that it was done.

Massive amounts of paper gold were dumped into a thin overnight market with the specific intent of driving down the price of gold.

It’s an open and shut case of price manipulation. Textbook perfect.

Even if these bear raids were performed by self-interested parties that made money while doing it, you can be sure the Fed was smiling thankfully in the background and that the SEC wasn’t going to spend one minute looking into whether any securities laws were broken (especially those related to price manipulation). Gold’s falling “thermometer” was exactly what the central planners wanted the world to see.

Down and Out

The paper markets for gold are centered in the U.S., while the physical market for gold is centered in London (but increasingly Shanghai). It’s safe to say that the paper markets set the spot price, while the physical movement of gold originates in London.

What’s increasingly obvious is the growing disconnect between the paper and physical markets. This is exactly what we’d expect to see if the paper markets were pushing in one direction (down) while physical gold was heading in a different direction (out).

The tension between these ‘down and out’ movements is building and, according to a senior manager of one of the largest gold refineries in the world located in Switzerland, the current price of gold “has no correlation to the physical market.”

He notes a lot of on-going tightness in the physical market. Unsurprisingly, gold is moving from West to East with vaults in London supplying much of the physical metal that’s being refined into fresh kilo bars and sent off to China and India.

But given the astonishing amount of physical demand, why has the price of gold been heading steadily lower over the past several years?

The aforementioned Swiss refiner is equally perplexed:

If I am honest, the only thing I could share now with you would be that I’m perplexed about the discrepancy between the prices and the situation of the physical market. This is something I still do not understand and is a riddle for me every day. For all people who are interested in precious metals, the physical side of this business should be given more emphasis.

(Source – Transcript)

There’s no mystery as to demand going up in China and India as the price went down. Interested buyers will buy more at a lower price.

But it’s a big mystery as to why Western “investors” seem more interested in selling gold than buying it right now.

Evidence of Physical Tightness

Besides the first-hand experience of the Swiss refiner, there have been numerous stories in the main stream press also pointing to tightness in the London physical gold market as well as relentless demand from China and India being the driver of that condition:

Gold demand from China and India picks up

Sep 2, 2015

London’s gold market is showing tentative signs of increased demand for bullion from consumers in emerging markets, after the price of the precious metal fell to its lowest level in five years in July.

The cost of borrowing physical gold in London has risen sharply in recent weeks. That has been driven by dealers needing gold to deliver to refineries in Switzerland before it is melted down and sent to places such as India, according to market participants

“[The rise] does indicate there is physical tightness in the market for gold for immediate delivery,” said Jon Butler, analyst at Mitsubishi.

The move comes as Indian gold demand picked up in July, with shipments of gold from Switzerland to India more than trebling. Most of that gold is likely to originally come from London before it is melted down into kilobars by Swiss refineries, according to analysts.

In the first half of this year, total recorded exports of gold from the UK were 50 per cent higher than the first half of 2014, on a monthly average basis, according to Rhona O’Connell, head of metals for GFMS at Thomson Reuters. More than 90 per cent was headed for a combination of China, Hong Kong and Switzerland.

London remains the world’s biggest centre for trading and storing gold.

(Source)

Shipments and exports are up very strongly and nearly all of that gold is headed to just two countries; China and India.

India Precious Metals Import Explosive – August Gold 126t, Silver 1,400t

Sept 10, 2015

In the month of August 2015, India imported 126 tonnes of gold and 1,400 tonnes of silver, according to data from Infodrive India. Gold import into India is rising after a steep fall due to government import restrictions implemented in 2013.

Year-to-date India has imported 654 tonnes of gold, which is 66 % up year on year. 6,782 tonnes in silver bars have crossed the Indian border so far this year, up 96 % y/y.

Gold import is set to reach an annualized 980 tonnes, which would be up 26 % relative to 2014 and would be the second highest figure on (my) record – my record goes back to 2008.

Silver import is on track to reach an annualized 10,172 tonnes, up 44 % y/y! This would be a staggering 37 % of world mining.

(Source)

With China and India’s combined appetite for gold being higher than total world mining output, it only stands to reason that somebody has to be parting with their physical gold and those entities appear to be substantially located in the U.S. and U.K.

When There’s No More To Sell, There’s No More To Buy

All the above evidence of a tightening physical market for gold is just the tip of the iceberg.

In Part 2: Why Gold Is Headed Higher & May Be Unavailable At Any Price we look at the frightening inventory declines in bullion storage that the LBMA and the COMEX have experienced over the past year.

We then lay out how this deliberate suppression of gold prices by the central planners is destined to end: with MUCH higher prices for gold, and much less availability. In fact, there is high likelihood we will experience a point at which it may be nearly impossible for the average investor to acquire physical gold, as there will be no sellers willing to part with it.

Click here to read Part 2 of this report (free executive summary, enrollment required for full access)

Crux note: Our colleague Matt Badiali has found reason to believe gold prices are being manipulated as well… by none other than China. Given the recent turmoil, you might find that surprising. But what if China could halt its stock market decline… boost its economy… and destabilize the U.S… with one simple announcement?

Matt says it’s not only possible, but that it could happen in the next 12 months. And if it does, the price of gold could jump 50% or more overnight… and gold stocks could soar. NOW is the time to protect your assets and set yourself up for hundreds-of-percent gains in the resource market. Matt put together a presentation explaining all the details. Click here to see for yourself.


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Wednesday, September 30th, 2015 Invest, News, Wealth Comments Off on Here’s the latest evidence of gold-price manipulation

Sjuggerud: Why this is NOT the end of the bull market

From Dr. Steve Sjuggerud, Editor, True Wealth:

Is it all over?

Is it time to sell everything?

After a record-tying six straight years of higher stock prices, is 2015 the year that stocks finally peak?

Stocks lost 11% of their value in August – in just more than a week!

Was that massive fall the beginning of the end?

To give us some clues about today, let’s take a brief look back at the last major bust…

The biggest bust in U.S. stock prices that I’ve ever experienced started in March 2000. In June 2000 – after the Nasdaq Composite Index had lost a third of its value – I wrote this to my 40,000 newsletter subscribers:

Investors are intensely bullish right now. I was surprised to find that most of the attendees at the recent [investor conference] were “true believers.” They believe that the stock market is the way to make money over the long run – even though the Nasdaq has lost a third of its value…

[In short,] there’s not enough pessimism in the market for this to be the bottom.

Keep in mind, I wrote that in June 2000 – three months after the market peak. Can you believe that investors were still “intensely bullish” – even after losing a third of their wealth in two months?

It’s shocking today to go back and read that… I wouldn’t have believed it if I hadn’t written it myself!

Back then, I wrote that more losses were likely… because investors hadn’t given up enough on stocks yet.

That turned out to be exactly right… It took a while for the stock market to knock out all those “true believers.” The Nasdaq Composite Index ultimately lost 78% of its value from its 2000 peak to its 2002 trough.

So… does today resemble June 2000? Are individual investors wildly optimistic about stocks – even after the massive fall in stock prices in August?

To me, the answer is clear… NO.

I don’t know how you feel – but I doubt you’d describe yourself as “wildly optimistic” on the stock market today.

In the mini crash in August, investor confidence fell to never-before-seen lows (according to SentimenTrader.com). This is more like what a BOTTOM in stock prices feels like, as opposed to a top.

Two things happened in last month’s crash:

  1. Stock market volatility soared and daily price fluctuations hit crazy extremes. But volatility has calmed down somewhat.
  2. Investor confidence crashed to a never-before-seen degree. It’s now recovering.

These are the two most important things to know right now. And they have historically been incredible BUY signals, not sell signals, for stocks.

June 2000 was a much different time than today. Back then, stocks were crashing… but investors were still wildly optimistic.

This isn’t the case today. Low investor confidence and fear have been the headlines during the recent correction. This is not how stock markets top

So, is this the end? Is it time to sell everything?

Based on my two decades of market experience, the simple answer is: NO!

Good investing,

Steve


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Wednesday, September 30th, 2015 Invest, News, Wealth Comments Off on Sjuggerud: Why this is NOT the end of the bull market

These Six Gold Companies Could Create Exceptional Wealth Sooner Than You Think: Jeb Handwerger

September 29, 2015 (Investorideas.com Mining stocks newswire) For smart investors watching the gold-Dow ratio rather than mainstream media headlines, this is an exciting time to be a precious metals investor.

Wednesday, September 30th, 2015 News Comments Off on These Six Gold Companies Could Create Exceptional Wealth Sooner Than You Think: Jeb Handwerger

Sales of American Buffalo gold bullin coins ahead of 2014 – Coin World


Coin World
Sales of American Buffalo gold bullin coins ahead of 2014
Coin World
Since the June 20, 2006, introduction of the American Buffalo gold $50 bullion coin through Sept. 23, 2015, the U.S. Mint has recorded sales of 3,534,500 of the 1-ounce bullion coins. The coins are not sold directly to the public. The coins are

and more »

Wednesday, September 30th, 2015 Invest, News, Wealth Comments Off on Sales of American Buffalo gold bullin coins ahead of 2014 – Coin World

Here’s how the wealthiest Americans are preparing for higher rates

From Bloomberg:

More wealthy Americans now say they’re reducing debt than at any time in the past decade, and the Federal Reserve may be to thank.

About 15 percent of high-income households, those in the top third of the earnings ladder, reported debt declined in September more than any other time since 2005, according to Friday’s consumer-sentiment report from the University of Michigan. The share was only one percentage point lower than a 35-year peak reached in April 2000. Those same households reported making further progress on their finances, while the bottom two-thirds of the income distribution said their balance sheets worsened.

READ MORE: Why America is NOT Normal – Dr. Ron Paul’s 8 facts prove how bad things really are


“The prospects of rising interest rates didn’t cause high-income families to borrow in advance of those hikes – it caused them to pay down their debt,” Richard Curtin, director of the Michigan Survey of Consumers, said on a Bloomberg conference call after the report. “It could be that the dodging of the hike this month meant more consumers actually looked at their finances more critically.”

Fed policy makers delayed raising the benchmark interest rate at their meeting this month as market turmoil and international-growth concerns threaten to derail the U.S. economy and slow inflation even further. Still, Fed Chair Janet Yellen said Thursday that she and others on the Federal Open Market Committee are ready to raise interest rates this year.

A late-month confidence boost among wealthier Americans in September kept the broader sentiment gauge from falling as much as forecast. Michigan’s final reading for the month showed its confidence gauge decreased to 87.2, the lowest level since October, from 91.9 in August. The median projection in a Bloomberg survey called for a reading of 86.5.

Tuesday, September 29th, 2015 Invest, News, Wealth Comments Off on Here’s how the wealthiest Americans are preparing for higher rates

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