Billionaire Hugo Salinas Price – Central Banks Smashed Gold

Today multi-billionaire Hugo Salinas Price told King World News that central banks were definitely behind the smash in the gold price yesterday. He also said people should ignore it and continue buying gold and silver. But first, here is what Hugo Salinas Price had to say when asked about the plunge in gold yesterday: “I definitely think the central banks were behind it. I look at the graph of the gold price yesterday and when it collapses down $100 in about an hour, that is not natural market action. I think people are getting used to this. This is standard procedure and it doesn’t worry me at all.”

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via My Blog.

Gold Falls 3% in an Hour Following Bernanke Comments, Iran Trading with Bullion as “Universal Currency”

WHOLESALE MARKET Gold Bullion prices dropped 3.2% to $1727 per ounce in less than an hour Wednesday afternoon in London, after US Federal Reserve chairman Ben Bernanke appeared before Congress.

Higher gasoline prices are “likely to push up inflation temporarily while reducing consumers’ purchasing power,” Bernanke told the House Financial Services Committee.

Bernanke’s comments “eased speculation the central bank is moving closer to providing more monetary stimulus,” news agency Bloomberg reports.

The Fed chairman added however that the Fed’s policymakers judge “that sustaining a highly accommodative stance for monetary policy is consistent with promoting both objectives” of the Fed’s mandate, namely price stability and employment.

Earlier in the day, gold prices hovered around $1785 an ounce Wednesday morning London time, while stocks and commodities were also broadly flat following the European Central Bank’s latest attempt to boost the liquidity held by the continent’s banks.

Silver bullion meantime hit $37.36 per ounce, its highest level since last September, though they too fell following Bernanke’s comments.

“The next target [for silver] is $39.78, the September 2011 high,” says the latest technical analysis from gold bullion dealing bank Scotia Mocatta.

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via Gold Falls 3% in an Hour Following Bernanke Comments, Iran Trading with Bullion as “Universal Currency” – Buy Gold Online with the Bullion Vault – GoldSeek.com.

Silver Surges 4.5% To Over $37/Oz On “Massive Fund Buying”

Silver Surges 4.5% To Over $37/Oz On “Massive Fund Buying”

Gold’s London AM fix this morning was USD 1,788.00, EUR 1,329.96, and GBP 1,120.79 per ounce..

Yesterday’s AM fix was USD 1,774.75, EUR 1,321.48, and GBP 1,120.42 per ounce.

Gold rose 1% in New York yesterday and closed at $1,783.90/oz. Gold rose in Asia to a high of $1,790.16 it’s highest since mid November then edged down. Europe this morning saw sideways trading until unusually volatile trading around the London AM fix saw gold rise from $1785.oz to over $1790/oz at 1030 GMT and then fall quickly to $1783/oz.

Spot silver has gained another 0.5% to $37.05 an ounce, after surging 4.5% yesterday once it rose above resistance at $35.50/oz. Silver reached a 5 month high of $37.21 but remains more than 30% below its nominal high in of April last year of $48.44.

Silver Spot $/oz – (Bloomberg)

Over 800 European banks have taken €529.5 billion from the ECB today after taking €489 billion euros at the first tender in December. The ECB’s 3 year lending is now near 1 trillion euros ($1.35 trillion) and the ECB’s balance sheet looks increasingly precarious.

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via Silver Surges 4.5% To Over $37/Oz On “Massive Fund Buying” | ZeroHedge.

Turk: ‘silver price at $68-70 in two-to-three months’

At long last: the ratings agency Standard & Poor’s has deemed Greece to be in “selective default”. The European Central Bank has temporarily suspended the use of Greek bonds as collateral. However, stocks have been moving higher in trading this morning following the vote in the German Bundestag yesterday to authorise the new 130 billion-euro Greek bailout deal agreed by finance ministers last week. The markets have after all had months to come to terms with the idea of Greek bankruptcy.

Moreover, as Jim Sinclair points out at JSMineSet.com: “Only the International Swaps and Derivative Association opines on what is a default as it applies to credit default swaps. S&P carries no power over the performance (or lack thereof) of CDSs.” It is this uncertainty about whether CDS written on Greek debt can be honoured that still has the serious potential to spook investors.

Many of you are by now likely sick to the back teeth with the Greek debt crisis, and the reams of ink that has been spilt by journalists and market analysts on this issue (not least at this website). But this column urges you all to read Detlev Schlichter’s cogent analysis of Greece’s problems, and the bigger picture surrounding the debates about austerity, debt, monetary union and the eurozone. Commenting on the now conventional wisdom that returning to the drachma would help Greece, Detlev notes:

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via Turk: ‘silver price at $68-70 in two-to-three months’.

Eric Sprott: Silver Will Become a Currency Again

With the Greek crisis nearing a climax, The Doc spoke with Eric Sprott of Sprott Asset Management this week to discuss the Euro debt crisis, silver fundamentals, and the recent PSLV follow-on offering.

When asked about his recent efforts to convince silver mining companies to save in silver rather than cash or treasuries Eric responded:

I think we have a bit of a voice in the silver market, and the reason for the letter was just the simple analysis that the paper traders were determining the price…and why should you physical silver producers let that happen?

And that was the primary thing- would you guys please think about what’s happening in your silver market! Plus the fact that it got bombed last year, and are you just going to sit back and lose $25 an ounce that you might otherwise be making, or are you ready to take a stand here? The other very easy argument for me, is when you have your money in a bank, you get no return. You essentially have no return. In fact I think it was expressed very well by the gentleman that runs UC Resources that you actually get a negative return at the end of the year because inflation’s higher than the return you’re getting on your money! I happen to be of the view that having money in the bank is a dangerous thing!

And you know they keep bailing out the banks all the time such as the recent G6 announcement that we’ll give unlimited loans to banks: well, they had to give unlimited loans to banks, because there were some banks that were on the brink! That tells you that it’s risky having money in a bank! So not only do you have to accept the risk, you get a negative return!

Why don’t you believe in your own product that also has been a currency and also will become a currency?

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via SilverDoctors: Eric Sprott: Silver Will Become a Currency Again.

Silver Price Could Double by Year End

Feb 19, 2012 – 08:54 AM

By: Jason_Hamlin

Were you cursing at your computer screen when silver nearly tripled during the short 9 months from September 2010 to May 2011? Silver at $20 seemed like an insurmountable threshold for quite some time. This caused many silver investors to give up just prior to the ascent, completely missing the ride towards $50. I believe silver is about to offer a similar ride. While it is unlikely to match the 180% advance mentioned above, look for silver to make new highs in the coming months, with the potential to double to $65 by year end.Following the record gains in silver during late 2010 and early 2011, the metal crashed towards $25 and has since rebounded to around $33. Investor sentiment has crashed along with it. The threat of Euro nations defaulting, banks announcing they are, well, bankrupt, and a series of other factors have scared away many of the Johnny-come-lately silver bulls.I think too many investors are underestimating the power of the central banks. While I agree they are running out of options, it seems that their ability to kick the can down the road has yet to expire. Given that the United States is heading into election season and President Obama is in full campaign mode, I expect the administration to pull out all stops in order to continue the illusion of economic prosperity a while longer. Every economic fire of consequence is being extinguished with fresh liquidity, more funny money or new legislation. In case you missed it, QE3 has been in full force for quite some time, albeit executed in a somewhat stealth manner.

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via Silver Price Could Double by Year End :: The Market Oracle :: Financial Markets Analysis & Forecasting Free Website.

Embry – Gold’s Rise Will Shock Market Participants This Year

With gold trading roughly $30 higher and silver breaking solidly above the $34 level, today King World News interviewed John Embry, Chief Investment Strategist of the $10 billion strong Sprott Asset Management, to get his take on where he sees gold and silver headed from here. Embry told KWN this will be, by far, the strongest year for gold during this entire bull market. Here is what Embry had to say about the situation: “The fact that sentiment is so poor with gold at these levels just indicates that people don’t realize what’s really unfolding. I think the price action to begin the year has been exemplary. It was interesting as gold was getting a head of steam going last week, out comes that bogus jobs report that led to the one day reversal in gold and silver.”

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via My Blog.

Silver as a monetary asset

Silver as a monetary asset.

Fed To Markets: Buy Gold And Silver

The Fed just spoke. Here’s a slightly edited transcript:

Blah blah blah … the economy has been expanding moderately … blah blah blah boilerplate inanity blatant lie … the Committee seeks to foster maximum employment and price stability ….

To support a stronger economic recovery and to help ensure that inflation, over time, is at levels consistent with the dual mandate, the Committee expects to maintain a highly accommodative stance for monetary policy. In particular, the Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that economic conditions–including low rates of resource utilization and a subdued outlook for inflation over the medium run–are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014.

This of course comes as no surprise to anyone. But seeing it in print had exactly the impact you’d expect. Stocks erased their early losses, the dollar tanked, and precious metals soared. With good reason. It is now the stated policy of the US government to have negative real interest rates for years to come (eons in trader-time).

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via Fed To Markets: Buy Gold And Silver — DollarCollapse.com.

I Stand By $140 Silver In 2012

There is a well-established relationship between how silver and gold trade. They often trade similar in the same time period, but also at similar milestones, although those milestones are sometimes reached at different times. This can cause silver or gold to be the leading indicator, depending on the particular milestone.

I have previously used this relationship to predict how silver will trade. Below, is an extract of that update:

Currently, there is another situation in the silver and gold market that provides an opportunity to predict how silver prices might trade over the coming months. I have pointed this out before, in a previous article. Here, I would just like to provide an update, and add a few more thoughts.

This situation or opportunity revolves around the 1980 all-time high for both metals. Gold passed its 1980 all-time high during 2008, while silver is yet to do so. By looking at the pattern of how gold passed its 1980 high, we can predict how silver might do it as well.

Below, is a comparison of silver and gold around their respective 1980 highs:

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I Stand By $140 Silver In 2012 | SilverSeek.com.