Monday, January 20, 2020

Gold and Gold Stocks – Patterns, Cycles and Insider Activity, Part 1

by Pater Tenebrarum, Acting Man:

Repeating Patterns and Positioning

A noteworthy confluence of patterns in gold and gold stocks is in evidence this year. At the close of trading on December 26, the HUI Index has given a (tentative) buy signal by completing a unique chart pattern, which is why we decided to briefly discuss the situation. As usual, things are not as straightforward and simple as they would ideally be, but there is always an element of uncertainty – one has to accept that as a given. Let us look at a chart illustrating one of said patterns:

This chart shows the gold price, the weekly net hedger position in gold futures (the inverse of the net speculative position), with the Fed’s December rate hikes in 2015, 2016 and 2017 highlighted by red vertical lines. Keep in mind that the December 2015 hike was the start of the current rate hike campaign. In the weeks leading up to it, the gold market was in the grip of a bearish hysteria, just as it approached a major lateral support level. Nearly every day Bloomberg, Reuters and other mainstream financial media published articles by “experts” no-one had ever heard of before (or since!), along with reports from analysts working for various well-known investment banks, all of whom stridently insisted that the beginning rate hike cycle was going to be the most bearish thing that could possibly befall the gold market, and that a further collapse in prices was nearly certain to coincide with it. Not surprisingly, the exact opposite has happened. You were definitely not surprised if you were reading this blog at the time – see for instance “Gold and the Federal Funds Rate”. As we pointed out therein: “[The] guessers at SocGen might actually have improved their statistical odds a bit if they had said “now that the Fed is hiking rates, gold prices should rise”. As noted in the chart annotation, in all three years gold prices declined into a December low, seemingly driven by fear of the coming rate hike and then proceeded to rally in a typical “buy the news” scenario. The declines tended to lower net speculative long positions to levels conducive to a renewed advance. So far the gold price lows coinciding with these rate hikes are increasing by approximately $100 per year. We expect this uptrend to accelerate noticeably once the rate hike campaign is unceremoniously thrown overboard. ETA: sometime next year, the precise timing depends on when the asset bubble peaks and reverses – the clock is ticking on that – click to enlarge.

Naturally, there is no guarantee that the December low will once again result in a playable multi-week (or even better) rally this year, but so far things look actually good for that idea. Here is a chart showing the moves in the HUI index and gold prices over the past 2 years and 7 months (i.e., including the drawn-out bottoming period from July 2015 to January 2016).

Read More @ Acting-Man.com

GOLD UP $6.50 TO $1294.50/SILVER UP 13 CENTS TO $16.84

by Harvey Organ, Harvey Organ Blog:

GOLD EFP TRANSFERS: OVER 11,000/ SILVER EFP TRANSFERS FOR A LONDON FORWARD: OVER 2600 CONTRACTS/GOFO RATES RISE TO OVER 2.15% INDICATING SCARCITY FOR GOLD

GOLD: $1294.50 up $6.50

Silver: $16.84 up 13 cents

Closing access prices:

Gold $1294.00

silver: $16.84

For comex gold:

DECEMBER/

NUMBER OF NOTICES FILED TODAY FOR DECEMBER CONTRACT: 138 NOTICE(S) FOR 13800 OZ.

TOTAL NOTICES SO FAR: 9194 FOR 919,400 OZ (28.592 TONNES),

For silver:

DECEMBER

256 NOTICE(S) FILED TODAY FOR

1,280,000 OZ/

Total number of notices filed so far this month: 6403 for 32,015,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: BID $13,577/OFFER $13,760 DOWN $1651 (morning)

BITCOIN : BID $14,994/OFFER $15,099 /DOWN $709 CLOSING

 

end

 JUST TO LET YOU KNOW THAT OTC OPTIONS EXPIRE THIS FRIDAY WHICH ALSO CORRESPONDS TO FIRST DAY NOTICE FOR THE JANUARY CONTRACT FOR BOTH GOLD AND SILVER.  JANUARY IS A POOR DELIVERY MONTH FOR BOTH OF OUR METALS AND JANUARY IS ALSO NON ACTIVE FOR BOTH.

Let us have a look at the data for today

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In silver, the total open interest SURPRISINGLY FELL BY A CONSIDERABLE 3955 contracts from 200,321 FALLING TO 196,966 DESPITE YESTERDAY’S GOOD 17 CENT RISE IN SILVER PRICING. WE HAD SOME  COMEX LIQUIDATION AND WITHOUT A DOUBT THIS WAS A MAJOR BANK SHORT- COVERING OPERATION. NOT ONLY THAT , WE WERE AGAIN NOTIFIED THAT WE HAD ANOTHER HUGE SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE: A MONSTROUS 2652 EFP’S FOR MARCH (AND ZERO FOR DEC AND OTHER MONTHS) AND THUS TOTAL ISSUANCE OF 2652 CONTRACTS. HOWEVER THE MOVEMENT ACROSS TO LONDON IS NOT AS SEVERE AS IN GOLD AS THERE SEEMS TO BE A MAJOR PLAYER TAKING ON THE BANKS AT THE COMEX. STILL, WITH THE TRANSFER OF 2652 CONTRACTS, WHAT THE CME IS STATING IS THAT THERE IS NO SILVER (OR GOLD) TO BE DELIVERED UPON AT THE COMEX AS THEY MUST EXPORT THEIR OBLIGATION TO LONDON. YESTERDAY WITNESSED 840 EFP’S FOR SILVER ISSUED. ALSO KEEP IN MIND THAT THERE CAN BE A DELAY OF 24 HRS IN THE ISSUING OF EFP’S. I BELIEVE THAT WE MUST HAVE HAD SOME MAJOR BANKER SHORT COVERING

ACCUMULATION FOR EFP’S/SILVER/ STARTING FROM FIRST DAY NOTICE/FOR MONTH OF DECEMBER:

48,003 CONTRACTS (FOR 19 TRADING DAYS TOTAL 48,003 CONTRACTS OR 240.015 MILLION OZ: AVERAGE PER DAY: 2,526 CONTRACTS OR 12.632 MILLION OZ/DAY)

TO GIVE YOU AN IDEA OF THE SIZE OF “PHYSICAL” TRANSFERRED TO LONDON: 240.015 MILLION OZ/700 MILLION OZ (EX CHINA EX RUSSIA) = 34.28% OF ANNUAL GLOBAL SILVER PRODUCTION

RESULT: A CONSIDERABLE SIZED LOSS IN OI COMEX DESPITE THE STRONG 18 CENT RISE IN SILVER PRICE WHICH USUALLY INDICATES HUGE BANKER SHORT-COVERING. WE ALSO HAD A HUGE SIZED SIZED EFP ISSUANCE OF 2656 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON AS FORWARDS.  FROM THE CME DATA 2652 EFP’S WERE ISSUED TODAY (FOR MARCH EFP’S) FOR A DELIVERABLE CONTRACT OVER IN LONDON WITH A FIAT BONUS. WE REALLY LOST 1203 OI CONTRACTS i.e. 2652 open interest contracts headed for London (EFP’s) TOGETHER WITH A DECREASE OF 3955 OI COMEX CONTRACTS. AND ALL OF THIS HAPPENED WITH THE RISE IN PRICE OF SILVER BY 17 CENTS AND A CLOSING PRICE OF $16.71 WITH RESPECT TO YESTERDAY’S TRADING. YET WE STILL HAVE A MASSIVE AMOUNT OF SILVER STANDING AT THE COMEX.

In ounces AT THE COMEX, the OI is still represented by just UNDER 1 BILLION oz i.e. 0.985 BILLION TO BE EXACT or 140% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT DECEMBER MONTH/ THEY FILED: 256 NOTICE(S) FOR 1,280,000 OZ OF SILVER

In gold, the open interest ROSE BY A SMALL SIZED 1878 CONTRACTS UP TO 458,348 DESPITE THE STRONG RISE IN PRICE OF GOLD WITH YESTERDAY’S TRADING ($5.05). HOWEVER, THE TOTAL NUMBER OF GOLD EFP’S ISSUED YESTERDAY FOR TODAY TOTALED A HUMONGOUS  11,125 CONTRACTS OF WHICH THE MONTH OF DECEMBER SAW 0 CONTRACTS AND FEB SAW THE ISSUANCE OF 11,125 CONTRACTS. The new OI for the gold complex rests at 458,348. DEMAND FOR GOLD INTENSIFIES GREATLY AS WE CONTINUE TO WITNESS A HUGE NUMBER OF EFP TRANSFERS TOGETHER WITH THE MASSIVE AMOUNT OF GOLD OUNCES STANDING FOR DECEMBER. EVEN THOUGH THE BANKERS ISSUED THESE MONSTROUS EFPS, THE OBLIGATION STILL RESTS WITH THE BANKERS TO SUPPLY METAL BUT IT TRANSFERS THE RISK TO A LONDON BANKER OBLIGATION AND NOT A NEW YORK COMEX OBLIGATION. LONGS RECEIVE A FIAT BONUS TOGETHER WITH A LONG LONDON FORWARD. THUS, BY THESE ACTIONS, THE BANKERS AT THE COMEX HAVE JUST STATED THAT THEY HAVE NO APPRECIABLE METAL!! THIS IS A MASSIVE FRAUD: THEY CANNOT SUPPLY ANY METAL TO OUR COMEX LONGS BUT THEY ARE QUITE WILLING TO SUPPLY MASSIVE NON BACKED GOLD (AND SILVER) PAPER KNOWING THAT THEY HAVE NO METAL TO SATISFY OUR LONGS. LONDON IS NOW SEVERELY BACKWARD IN BOTH GOLD AND SILVER (BIG RISE IN BOTH GOFO AND SIFO) AND WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES. IN ESSENCE WE HAVE A GOOD GAIN OF 13,003 OI CONTRACTS: 1878 OI CONTRACTS INCREASED AT THE COMEX AND A GOOD SIZED 11,125 OI CONTRACTS WHICH NAVIGATED OVER TO LONDON.

YESTERDAY, WE HAD 2056 EFP’S ISSUED.

ACCUMULATION OF EFP’S/ GOLD(EXCHANGE FOR PHYSICAL) FOR THE MONTH OF DECEMBER STARTING WITH FIRST DAY NOTICE: 216,387 CONTRACTS OR 21.6387 MILLION OZ OR 673.405 TONNES(19 TRADING DAYS AND THUS AVERAGING: 11,388 EFP CONTRACTS PER TRADING DAY OR 1.1388 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE AMOUNT OF “PHYSICAL’ TRANSFERRED SO FAR THIS MONTH: 673 TONNES/2200 TONNES = 30.59% OF ANNUAL GLOBAL PRODUCTION OF GOLD. THIS IS IMPOSSIBLE AND EXPLAINS FULLY THE FRAUD!!

Result: A SMALL SIZED INCREASE IN OI DESPITE THE GOOD SIZED RISE IN PRICE IN GOLD TRADING ON YESTERDAY ($5.05). WE HAD A HUMONGOUS SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 11,125. THERE OBVIOUSLY DOES NOT SEEM TO BE MUCH PHYSICAL GOLD AT THE COMEX AND YET WE ALSO OBSERVED A HUGE DELIVERY MONTH FOR THE MONTH OF DECEMBER. I GUESS IT EXPLAINS THE HUGE ISSUANCE OF EFP’S…THERE IS HARDLY ANY GOLD PRESENT AT THE GOLD COMEX FOR DELIVERY PURPOSES. IF YOU TAKE INTO ACCOUNT THE 11,125 EFP CONTRACTS ISSUED, WE HAD A NET GAIN IN OPEN INTEREST OF 13,003 contracts:

11,125 CONTRACTS MOVE TO LONDON AND  1879 CONTRACTS INCREASED AT THE COMEX. (in tonnes, the gain in total oi equates to 40.44 TONNES)

we had: 138 notice(s) filed upon for 13800 oz of gold.

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With respect to our two criminal funds, the GLD and the SLV:

GLD:

Today, NO CHANGES IN GOLD INVENTORY AT THE GLD

Inventory rests tonight: 837.50 tonnes.

SLV/

THIS MAKES A LOT OF SENSE: SILVER UP 13 CENTS AGAIN TODAY:

ANOTHER CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 1,251,000 OZ

INVENTORY RESTS AT 323.459 MILLION OZ/

end

First, here is an outline of what will be discussed tonight:

1. Today, we had the open interest in silver FELL BY A CONSIDERABLE SIZED 3955 contracts from 200,321 DOWN TO 196,966 (AND now A LITTLE FURTHER FROM THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) DESPITE THE GOOD SIZED RISE IN PRICE OF SILVER TO THE TUNE OF 17 CENTS  YESTERDAY. WE HAD WITHOUT A DOUBT A MAJOR SHORT COVERING FROM OUR BANKERS AS THEY HAVE CAPITULATED. NOT ONLY
THAT BUT OUR BANKERS USED THEIR EMERGENCY PROCEDURE TO ISSUE ANOTHER 2652 PRIVATE EFP’S FOR MARCH (WE DO NOT GET A LOOK AT THESE CONTRACTS AS IT IS PRIVATE BUT THE CFTC DOES AUDIT THEM). EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON. WE HAD CONSIDERABLE COMEX SILVER COMEX LIQUIDATION. BUT, IF WE TAKE THE OI LOSS AT THE COMEX OF 3955 CONTRACTS TO THE 2652 OI TRANSFERRED TO LONDON THROUGH EFP’S WE OBTAIN A LOSS OF ONLY 1203 OPEN INTEREST CONTRACTS DESPITE THE MAJOR BANKER SHORT COVERING. WE STILL HAVE A HUGE AMOUNT OF SILVER OUNCES THAT ARE STANDING FOR METAL IN DECEMBER (SEE BELOW). THE NET LOSS TODAY IN OZ: 6.015 MILLION OZ!!!

RESULT: A GOOD SIZED DECREASE IN SILVER OI AT THE COMEX DESPITE THE GOOD SIZED RISE OF 17 CENTS IN PRICE (WITH RESPECT TO YESTERDAY’S TRADING). BUT WE ALSO HAD ANOTHER 2652 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON . TOGETHER WITH THE HUGE AMOUNT OF SILVER OUNCES STANDING FOR DECEMBER, DEMAND FOR PHYSICAL SILVER INTENSIFIES

(report Harvey)

.

2.a) The Shanghai and London gold fix report

(Harvey)

2 b) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

Read More @ HarveyOrganBlog.com

Keiser Report: Taxphoria (E1168)

from RT:

In the second half, Max interviews Michael Pento of PentoPort.com about whether or not this taxphoria has caused overvaluation in the markets and, if so, can the markets continue to soar higher?

Doug Casey on the Coming Financial Crisis

by Doug Casey, Casey Research:

Justin’s note: Earlier this year, Fed Chair Janet Yellen explained how she doesn’t think we’ll have another financial crisis “in our lifetimes.” It’s a crazy idea. After all, it feels like the U.S. is long overdue for a major crisis. Below, Doug Casey shares his take on this. It’s one of the most important discussions we’ve had all year.

(If you missed the first two interviews from this series, you can catch up here and here.)

Justin: Doug, I know you disagree with Yellen. But I’m wondering why she would even say this? Has she lost her mind?

Doug: Listening to the silly woman say that made me think we’re truly living in Bizarro World. It’s identical in tone to what stock junkies said in 1999 just before the tech bubble burst. She’s going to go down in history as the modern equivalent of Irving Fisher, who said “we’ve reached a permanent plateau of prosperity,” in 1929, just before the Great Depression started.

I don’t care that some university gave her a Ph.D., and some politicians made her Fed Chair, possibly the second most powerful person in the world. She’s ignorant of economics, ignorant of history, and clearly has no judgment about what she says for the record.

Why would she say such a thing? I guess because since she really believes throwing trillions of dollars at the banking system will create prosperity. It started with the $750 billion bailout at the beginning of the last crisis. They’ve since thrown another $4 trillion at the financial system.

All of that money has flowed into the banking system. So, the banking system has a lot of liquidity at the moment, and she thinks that means the economy is going to be fine.

Justin: Hasn’t all that liquidity made the banking system safer?

Doug: No. The whole banking system is screwed-up and unstable. It’s a gigantic accident waiting to happen.

People forgot that we now have a fractional reserve banking system. It’s very different from a classical banking system. I suspect not one person in 1,000 understands the difference…

Modern banking emerged from the goldsmithing trade of the Middle Ages. Being a goldsmith required a working inventory of precious metal, and managing that inventory profitably required expertise in buying and selling metal and storing it securely. Those capacities segued easily into the business of lending and borrowing gold, which is to say the business of lending and borrowing money.

Most people today are only dimly aware that until the early 1930s, gold coins were used in everyday commerce by the general public. In addition, gold backed most national currencies at a fixed rate of convertibility. Banks were just another business—nothing special. They were distinguished from other enterprises only by the fact they stored, lent, and borrowed gold coins, not as a sideline but as a primary business. Bankers had become goldsmiths without the hammers.

Bank deposits, until quite recently, fell strictly into two classes, depending on the preference of the depositor and the terms offered by banks: time deposits, and demand deposits. Although the distinction between them has been lost in recent years, respecting the difference is a critical element of sound banking practice.

Justin: Can you explain the difference between a time deposit and demand deposit?

Doug: Sure. With a time deposit—a savings account, in essence—a customer contracts to leave his money with the banker for a specified period. In return, he receives a specified fee (interest) for his risk, for his inconvenience, and as consideration for allowing the banker the use of the depositor’s money. The banker, secure in knowing he has a specific amount of gold for a specific amount of time, is able to lend it; he’ll do so at an interest rate high enough to cover expenses (including the interest promised to the depositor), fund a loan-loss reserve, and if all goes according to plan, make a profit.

A time deposit entails a commitment by both parties. The depositor is locked in until the due date. How could a sound banker promise to give a time depositor his money back on demand and without penalty when he’s planning to lend it out?

In the business of accepting time deposits, a banker is a dealer in credit, acting as an intermediary between lenders and borrowers. To avoid loss, bankers customarily preferred to lend on productive assets, whose earnings offered assurance that the borrower could cover the interest as it came due. And they were willing to lend only a fraction of the value of a pledged asset, to ensure a margin of safety for the principal. And only for a limited time—such as against the harvest of a crop or the sale of an inventory. And finally, only to people of known good character—the first line of defense against fraud. Long-term loans were the province of bond syndicators.

That’s time deposits.

Justin: And what about demand deposits?

Doug: Demand deposits were a completely different matter.

Demand deposits were so called because, unlike time deposits, they were payable to the customer on demand. These are the basis of checking accounts. The banker doesn’t pay interest on the money, because he supposedly never has the use of it; to the contrary, he necessarily charged the depositor a fee for:

  1. Assuming the responsibility of keeping the money safe, available for immediate withdrawal, and…

  2. Administering the transfer of the money if the depositor so chooses, by either writing a check or passing along a warehouse receipt that represents the gold on deposit.

An honest banker should no more lend out demand deposit money than Allied Van and Storage should lend out the furniture you’ve paid it to store. The warehouse receipts for gold were called banknotes. When a government issued them, they were called currency. Gold bullion, gold coinage, banknotes, and currency together constituted the society’s supply of transaction media. But its amount was strictly limited by the amount of gold actually available to people.

Sound principles of banking are identical to sound principles of warehousing any kind of merchandise—whether it’s autos, potatoes, or books. Or money. There’s nothing mysterious about sound banking. But banking all over the world has been fundamentally unsound since government-sponsored central banks came to dominate the financial system.

Central banks are a linchpin of today’s world financial system. By purchasing government debt, banks can allow the state—for a while—to finance its activities without taxation. On the surface, this appears to be a “free lunch.” But it’s actually quite pernicious and is the engine of currency debasement.

Central banks may seem like a permanent part of the cosmic landscape, but in fact they are a recent invention. The U.S. Federal Reserve, for instance, didn’t exist before 1913.

Read More @ CaseyResearch.com

Martin Armstrong – Down 39000 or Higher!

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by Kerry Lutz, Financial Survival Network:

When we first started speaking with Martin Armstrong the Dow Jones Industrial Average stood at a paltry 16000. Today it’s approaching 25000 and has never looked back. While his timing of the advance hasn’t been completely accurate, his call on the direction has been one of the few correct ones. And according to Martin, it’s not close to being done. Look for it to head to 39000 or even higher. The reason is simple, the rest of the world is an even bigger mess than the US. And there’s more good news, the Trump tax cuts will unleash the US economy bigly! Companies that haven’t been competitive in decades will all of sudden find themselves as world class competitors. Europe and Asia are in a tizzy over it. The results will soon be felt.

Click HERE to listen

Read More @ FinancialSurvivalNetwork.com

RUSSIA, ADVANCED PROPULSION, AND ET MARKETING

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by Joseph P. Farrell, Giza Death Star:

There’s been a lot of hype on the internet lately concerning the limited hangout position of the Pentagon’s recent announcement of having conducted a UFO project at the request of former US Senate Majority Leader Harry Reid of Nevada, and concerning the announcement of former Blink 182 band member and UFO enthusiast Tom DeLonge’s corporation whose board looks like a Who’s Who of black projects research gurus. This comes at a time that Dr. Skidmore of Michigan State University has written articles confirming missing trillions of dollars from the US budget, confirming the statements of former US Housing and Urban Development Assistant Secretary Catherine Austin Fitts. It’s convenient timing, to say the least.

Now, to add to the stories, there’s yet another, according to this article shared by Mr. J.S.:

The Pentagon’s Secret Search for UFOs

Now, I am calling all this a “limited hangout position” because of several statements, including this one:

The Pentagon, at the direction of Congress, a decade ago quietly set up a multimillion-dollar program to investigate what are popularly known as unidentified flying objects—UFOs.

The “unidentified aerial phenomena” claimed to have been seen by pilots and other military personnel appeared vastly more advanced than those in American or foreign arsenals. In some cases they maneuvered so unusually and so fast that they seemed to defy the laws of physics, according to multiple sources directly involved in or briefed on the effort and a review of unclassified Defense Department and congressional documents.(emphasis added)

Now, many in the UFOlogy community, including researcher Richard Dolan (see his multi-volume study UFOs and the National Security State) and many others, have argued persuasively and in my opinion quite convincingly and compellingly that these USO studies have in fact been a more or less permanent feature of covert American military interest and research since at least the end of World War Two. I too have contributed my own speculations to this picture with investigations of the funding mechanisms that would be needed for such a study, concluding that a hidden system of finance would be necessary both to insure a continual flow of money and to ensure continued secrecy. The purpose of the research in the long term was to acquire the technologies that would be able to emulate UFO performance and achieve parity or near parity with it. As a secondary objective, such research would have been seeking the origins – human or otherwise – of whomever was behind the UFO phenomenon.

Hence, the disclose of a project of a mere decade’s length and running into mere “multi-millions” is far short of what the UFOlogy community has been arguing for many decades. It is, if I may put it country simple, no big deal.

There’s yet another “twist” here that, again, upon examination, isn’t much of a twist:

The Advanced Aviation Threat Identification Program, whose existence was not classified but operated with the knowledge of an extremely limited number of officials, was the brainchild of then-Senate Majority Leader Harry Reid (D-Nev.), who first secured the appropriation to begin the program in 2009 with the support of the late Senators Daniel Inouye (D-Hawaii) and Ted Stevens (R-Alaska), two World War II veterans who were similarly concerned about the potential national security implications, the sources involved in the effort said. The origins of the program, the existence of which the Pentagon confirmed on Friday, are being revealed publicly for the first time by POLITICO and the New York Times in nearly simultaneous reports on Saturday.

One possible theory behind the unexplained incidents, according to a former congressional staffer who described the motivations behind the program, was that a foreign power—perhaps the Chinese or the Russians—had developed next-generation technologies that could threaten the United States. (Emphases added)

Again, experienced researchers in UFOlogy have long known about the UFO programs of Russia and China, and it stands to reason those nations would view the UFO phenomenon in a similar way to the USA, i.e., as a national security threat. And it stands to reason their responses would be similar: develop deeply black research programs and financing mechanisms to investigate and emulate the technologies and performance of UFOs to parity or near parity.

What is odd here however, is the less than typical language used in the context of the Russian and Chinese assertions. In an age when Russia seems to have replaced the former conspiracy-central theories of Masons, Zionists, Bankers, and/or Jesuits and the Vatican in the conspiracy mongering of the the US deep state, one would have expected stronger language from a mouthpiece like Politico. Instead, we get the very suggestive sentence, “One possible theory behind the unexplained incidents… was that a foreign power – perhaps the Chinese or the Russians-had developed next-generation technologies that could threaten the United States.”(Emphases added) Why the subjunctive “perhaps” with the wonderfully ambiguous past perfect simple tense “had developed”? The statement leaves open the possibility of some other foreign power besides Russia and China actually achieving some sort of “next generation” technology, and having done so ina past whose terminus ante quem is left conveniently undefined…

…and as anyone might expect who has read my various books on that possibility, that statement caught my eye.

Read More @ GizaDeathStar.com

Will Commodity Prices Reverse Course and Head Higher Soon? – Gary Christenson (27/12/2017)

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by Gary Christenson, Sprott Money:

The factories and people of the world need commodities, crude oil, copper, nickel, coffee, wheat and others.

But listening to the media, we might think paper stocks, bonds (debt) and Bitcoin are all that matter. Think about it…after a quick trip to your favorite coffee shop, while you enjoy a coffee and muffin, and watch a video on your smartphone, check the prices for your favorite tech stocks, Bitcoin, and the latest celebrity news.

Your trip to the coffee shop used gasoline, oil, coffee, sugar, wheat, electricity, water and others. You used commodities but Bitcoin, a ten year Treasury note, and Facebook stock were not directly necessary for your morning coffee experience.

Have digital and debt based paper “assets” crowded out common sense and the importance of commodities? Yes, but not for long.

Look at the graphs of Netflix and Amazon stocks. Yes, they might rise farther, but at what risk?


Both charts show near vertical rises, highly over-bought monthly Relative Strength Indexes (RSI) and could easily drop 30 – 70%. The NASDAQ 100 Index dropped 84% from its year 2000 high before it hit a nasty bottom. It could happen again.

WHAT ABOUT COMMODITIES?

We need them for our trip to the coffee shop and to feed, house, cloth, transport, heat and cool over seven billion people. We may not need the latest Apple phone (about a thousand U.S. dollars) but we do need commodities.

The Thomas/Reuters Commodity Index dates back to about 2001. Crude oil prices are a significant portion of any Commodity Index and are a long-term proxy for commodity prices.

Read More @ SprottMoney.com

10 Charts that Show Why Gold Is Undervalued Right Now

by Frank Holmes, GoldSeek:

With the year quickly coming to a close, it might be time to start thinking about rebalancing the gold holdings in your portfolio. That includes bullion, jewelry, gold stocks and well-managed gold funds—all of which I recommend giving a collective 10 percent weighting. Because it’s been such a strong year for stocks—they’ve advanced more than 20 percent as of today—it’s likely that most investors will need to add to their gold exposure to meet that 10 percent weighting as we head into 2018.

Some investors might wonder why they need gold in their portfolios right now. The stock market is still chugging along, and the just-passed tax reform bill is likely to help ratchet up share prices even more. Cryptocurrencies have been hogging the spotlight lately, especially after bitcoin tumbled nearly 30 percent last Friday morning.

While I’m on the subject, inflows into cryptocurrencies have totaled more than $500 billion this year alone. To put that in perspective, the total sum of global equity mutual fund and ETF inflows were around $411 billion as of November 29. What’s more, cryptocurrencies are now doing as much daily trading as the New York Stock Exchange (NYSE), according toBusiness Insider. 

Just think on that. Something is happening here that cannot be ignored or dismissed.

But back to gold. It’s important to remember that the precious metal has historically shared a low-to-negative correlation with many traditional assets such as cash, Treasuries and stocks, both domestic and international. This makes it, I believe, an appealing diversifier in the event of a correction in the capital and forex markets.

Need more reasons to add to your gold holdings? Below are 10 charts that show why the yellow metal is undervalued right now:

1. The gold price has crushed the market so far this century.

Investors are invariably surprised to see this chart whenever I show it at conferences. Believe it or not, since 2000, the gold price has beaten the S&P 500 Index, which has undergone two 40 percent corrections so far this century.

2. Compared to stocks, gold looks like a bargain.

As of this month, the gold-to-S&P 500 ratio is at its lowest point in 10 years. For mean reversion to occur, either the gold price needs to appreciate or share prices need to fall. Either way, consider this a once-in-a-decade opportunity.

3. Exploration budgets keep getting slashed.

One of the reasons why gold is so highly valued is for its scarcity. There’s a possibility it could get even scarcer as explorers continue to trim exploration budgets and uncover fewer and fewer large deposits. The time between initial discovery and day one of production is also expanding. This has led many experts in the field to wonder if we’ve finally reached “peak gold.”

Read More @ GoldSeek.com