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Fed Vice-Chairman Janet Yellen is to be nominated to succeed Ben Bernanke as Fed Chairman today in a White House announcement this afternoon. Considered by some to be ever more dovish than Bernanke, it is expected that she will be even m...
Fed Vice-Chairman Janet Yellen is to be nominated to succeed Ben Bernanke as Fed Chairman today in a White House announcement this afternoon. Considered by some to be ever more dovish than Bernanke, it is expected that she will be even more reticent to taper the $85 billion a month of Fed bond purchases until the economy is unequivocally on solid footing. Due to this outlook, the dollar usually drops when her name is mentioned as the new Fed boss, but today, the greenback is showing sustained strength on the news that Yellen has locked in the top job at the Fed. This is thought to be because she will be forceful in using the powers of the Fed to help the economy recover from the ego-driven antics in Washington over the federal budget and the debt ceiling. The wife of a Nobel Prize-winning economist, Yellen herself has a PhD in economics, and is arguably the most experience person to ever be named as Federal Reserve Chairman. Back to the markets, Wall St. loves Janet, and opened strong. Despite the increased devaluation pressures a Yellen Fed will cause for the dollar, the dollar has been gaining since the news broke, which is pressuring precious metals. Oil is easing as well, which is also bearish for gold. With the partial government shutdown in its ninth day (remember when the sequestration was thought to be too horrible to allow, and now is the budget baseline?) the government is not releasing many economic reports, leaving markets without guidance. However, the MBA mortgage report and the minutes of last month’s September “non-taper” meeting of the Federal Reserve Open Market Committee are due today. Some short-term traders were disappointed in gold not improving substantially over the government shutdown, and are exiting. The Chinese markets were closed all last week for holiday, which removed the largest source of physical gold demand and helped mute gold’s movements. by David Peterson Filed under: Market News Tagged: Federal Reserve, Janet Yellen, shutdown, U.S. economic policy
about 6 hours ago
Yellen will face Senate for confirmation By Greg Robb, MarketWatch WASHINGTON (MarketWatch) — President Barack Obama will nominate Janet Yellento replace Ben Bernanke as chairman of the Federal Reserve, a White House official sa...
Yellen will face Senate for confirmation By Greg Robb, MarketWatch WASHINGTON (MarketWatch) — President Barack Obama will nominate Janet Yellento replace Ben Bernanke as chairman of the Federal Reserve, a White House official said Tuesday, in a move that many expect will result in a continuation of the central bank’s loose monetary policy. Obama will introduce Yellen at a 3 p.m. Eastern ceremony at the White House Wednesday, the official said. Yellen currently serves as vice chairman of the central bank
about 19 hours ago
TUESDAY, OCTOBER 8, 2013 David Franklin Precious metals have surged back in the last few days as the gravity of the situation in Washington hit investors. Equity market participants who seemed so sure a compromise was at hand on Frid...
TUESDAY, OCTOBER 8, 2013 David Franklin Precious metals have surged back in the last few days as the gravity of the situation in Washington hit investors. Equity market participants who seemed so sure a compromise was at hand on Friday afternoon, were disappointed Monday that no deal had been achieved. With the S&P at post-shutdown lows, it seems precious metals have caught a bid. Since the start of the shutdown gold is up almost 3% and silver has appreciated by nearly 6% as investors have ruminated on the implications of a default by the US Government. With silver falling by 26% so far this calendar year
about 19 hours ago
Toronto, ON – October 7, 2013 - Forsys Metals Corp (“Forsys” or the “Company”) (TSX:FSY, FWB:F2T, NSX:FSY) is pleased to announce it has completed an updated Mineral Resource estimate for its 100% owned Nora...
Toronto, ON – October 7, 2013 - Forsys Metals Corp (“Forsys” or the “Company”) (TSX:FSY, FWB:F2T, NSX:FSY) is pleased to announce it has completed an updated Mineral Resource estimate for its 100% owned Norasa Uranium Project (“Norasa”) located in Namibia. Norasa represents a consolidation of the Company’s deposits, including Valencia main and satellite pits and Namibplaas. The updated resource estimate is based on an extensive drilling program at the Namibplaas and Valencia extension deposits, together with a detailed modelling review of the main Valencia deposit. Key highlights of the updated resources estimate for Norasa include
about 19 hours ago
Most collectors of U.S. coins are at least vaguely aware of the Pittman Act of 1918, which resulted in the melting down of over 270 million silver dollars (mostly Morgans), and the sale of the bullion overseas. The U.S. Mint was then req...
Most collectors of U.S. coins are at least vaguely aware of the Pittman Act of 1918, which resulted in the melting down of over 270 million silver dollars (mostly Morgans), and the sale of the bullion overseas. The U.S. Mint was then required to buy bullion from U.S. mining companies at above-market rates, and mint replacements for the silver dollars that had been melted down! Sounds like typical government waste of taxpayer money, doesn’t it? That first impression might not reveal all the facts, though. While it is true that the Act was meant to help silver mining companies in the western states, that wasn’t the main point. In fact, a good portion of the Act was written to buy the cooperation of Western politicians in something that just might have saved World War I for the Allies. The Triple Entente (aka “the good guys”) in WWI were rapidly subjected to the rampant inflation that accompanies war. Since international trade back then was conducted in gold, and the Allies needed steel, food, and supplies to build and maintain the largest armies the world had seen (to that point), they pulled their gold coins out of circulation. The rising price of gold meant that the gold content exceeded the face value of the remaining coins anyway, which led to their hoarding. Since there was no gold available, Britain was using silver certificates to pay for goods and services from its colony of India, which was a major contributor to the war effort. Germany started spreading the rumor that the government did not have the silver to back the paper certificates it was using for purchases of war goods (which actually was true.) Emotions ran high, and the independence movement, which had quieted down during the war, hit a fever pitch. The UK was looking at the very real possibility of needing to sue for peace with Germany, as it would take most of the Royal Army to put down a revolution in India. The only place of Earth that England could get its hands on enough above-ground silver in time to avert disaster was the United States. The U.S. also used paper silver certificates as money, which the public much preferred to big old clunky silver dollars. However, every dollar in silver certificates was backed by silver dollars in Treasury vaults, and could be redeemed at will. The American government, of course, did not want to see their side lose the war, and also saw a chance to use the situation to their advantage. Since the U.S. had no planes or tanks of its own, it had needed to buy them from the British and French. This meant the U.S. was on the hook to its erstwhile allies for a considerable sum. America wanted to hold on to at least some of its gold reserves for the post-war period, and the European powers were desperate for fresh American soldiers in the massive war of attrition that had decimated the armies of both sides. Thus, the Americans (who had silver up to their ears) figured that Britain and France would be happy to take silver instead of gold as settlement for the debts. When the India crisis hit Britain and they appealed to America for help, all the pieces seemed to fall in place. Except one. The U.S. government planed to melt up to 350 million existing silver dollars into bullion, and sell it to Britain, to prevent collapse of India’s (and thereby Britain’s) economy. The silver mining interests in the American West and their politicians were terrified that Eastern interests would use the opportunity to eliminate the silver dollar, reducing the government’s demand for silver. In order to placate them and win support for measure, Congress promised to buy silver from Western silver miners after the war at the same $1/oz it charged Britain, and re-mint replacements for every silver dollar melted down. All in all, it went pretty well (except for silver dollar coin collectors!) Britain was able to honor its silver certificates, preventing a banking collapse and revolution in India. The U.S. paid off some $2
1 day ago
Gold spiked in morning trading in New York after trending downwards overnight, and the dollar dropped into negative territory after late night strength. The top buyers of U.S. government debt, China and Japan, have publicly warned politi...
Gold spiked in morning trading in New York after trending downwards overnight, and the dollar dropped into negative territory after late night strength. The top buyers of U.S. government debt, China and Japan, have publicly warned politicians in Washington to start acting like adults to end the shutdown and avoid a default on the trillions in debt the Asian nations are holding. Top finance officials of both nations have had emergency telephone calls with U.S. Treasury officials, stressing their displeasure and worry that the U.S. could not only destroy its own economy, but theirs as well. It isn’t just the nations and institutions holding U.S. debt that are ready for the tantrums in Washington to stop. Bloomberg reports that the partial government shutdown has already cost the nation $1.6 billion in lost economic output, and is increasing by $160 million a day. This is disproportionately affecting small businesses, as well as the nearly 800,000 trying to pay their bills with no paycheck. Wall St. opened lower and has stayed in the red, in very volatile conditions. Alcatel-Lucent announced 10,000 layoffs to its global workforce in a last-ditch attempt at survival. Some analysts predict that the intransigence in Washington will continue until the market reacts violently to the nonsense, something that has seemed to be necessary in the past. U.S. budget shenanigans also weighed on European stocks, as well as an unexpected easing in German manufacturing orders. In Asia, the Nikkei closed in the green for the first time in five sessions, while Hong Kong and Chinese stocks were up on strong holiday spending during the recently concluded week-long holiday. by David Peterson Filed under: Market News Tagged: debt ceiling, Federal budget, gold market
1 day ago
Next week I will be in Sydney for the Gold Sympoisum on 16th and 17th. A good selection of speakers, looking forward to those from Jeff Berwick, Louis Boulanger, John Butler, Dan Denning, David Evans, Chris Powell and Rick Rule. I also u...
Next week I will be in Sydney for the Gold Sympoisum on 16th and 17th. A good selection of speakers, looking forward to those from Jeff Berwick, Louis Boulanger, John Butler, Dan Denning, David Evans, Chris Powell and Rick Rule. I also understand that BDO Tax Consulting will be covering tax issues with investing in gold, which should be useful in clarifying this often confusing area.On Saturday the 19th I will be in Melbourne for the International Coin Show with a few speaking slots, the program includes:11.00am Bullion Coins and their Markets - Ron Currie, Perth Mint Sales and Marketing Director11.20am Factors Driving the Gold Price - Bron Suchecki, Perth Mint Manager, Analysis and Strategy11.40am Stacking Precious Metals - Gold Stackers and Silver Stackers1.00pm Gold Confiscation in Australia - Bron Suchecki, Perth Mint Manager, Analysis and Strategy2.00pm Silver Stackers Discussion Panel - Ron, Bron, Ben and MarkLook forward to catching up with any of you who are going to these events.
2 days ago
I've got a post up on the corporate blog addressing a comment by Jim Rickards in a recent Financial Sense interview where he said that on the dip in the gold price to $1,200 China bought 600 tonnes from The Perth Mint.Also, a couple of w...
I've got a post up on the corporate blog addressing a comment by Jim Rickards in a recent Financial Sense interview where he said that on the dip in the gold price to $1,200 China bought 600 tonnes from The Perth Mint.Also, a couple of weeks ago I did a corporate post answering this question from a reader, for those interested:"If there is an event (why I would be buying precious metals as insurance for) that sky rockets the price of the metals what is the chance that I will be "paid" in fiat currencies rather than in the actual metals? Especially when the currencies are plummeting and the PMs are skyrocketing. If gold will be paid in paper isn't it paper gold?"Apologies for the lack of posts on this blog, have been busy with work. There are a number of draft posts in the works that have been nagging me to finish.
3 days ago
In this mornings mail bag we have this interview with Jim Goddard and David Smith of The Morgan Report very kindly sent to us from our good friend David Morgan whose contact details are below The Precious Metals’ Bullish Case is &...
In this mornings mail bag we have this interview with Jim Goddard and David Smith of The Morgan Report very kindly sent to us from our good friend David Morgan whose contact details are below The Precious Metals’ Bullish Case is ‘Written in the Rocks’ David H. Smith/Silver-Investor.com (Source: HoweStreet.com 9/24/13) Jim Goddard: My guest is David Smith. He’s the senior analyst for The Morgan Report, which you can find online at silver-investor.com. Welcome to the show, David. David Smith: Good to be back, Jim. JG: The U.S. Fed has made what I call the non-announcement. They didn’t do anything. That spurred the markets momentarily, but now what’s the state? People are saying they sent both a bull and a bear message. Where do we sit, David?
5 days ago
With continued volatility in key global markets, today King World News is pleased to share a piece of legendary technical analyst Louise Yamada’s “Technical Perspectives” report. Yamada is without question one of the g...
With continued volatility in key global markets, today King World News is pleased to share a piece of legendary technical analyst Louise Yamada’s “Technical Perspectives” report. Yamada is without question one of the greatest technical analysts Wall Street has ever seen. This information is not available to the public and we are grateful to Louise for sharing her incredible work with KWN readers globally. The portion below has two incredibly important charts that cover the metals and mining share markets
6 days ago