September 2010


Rob McEwen, CEO of U.S. Gold and creator of Goldcorp, may be too soft-spoken and cautious ever to be caught wearing a tin-foil hat, but in a brief interview broadcast yesterday with TheStreet.com’s Alix Steel he forecast a gold price of $5,000 per ounce….

…there’s not much to add to this (3 part) interview of Jim Willie -editor of “The Golden Jackass“- speaking to Max Keiser on the coming LBMA naked shorts “Grand Heart Seizure”, as an un-named handful of BIG GOLD PLAYERS (most probably Chinese and Arabs) are demanding PHYSICAL DELIVERY, thus boosting prices up. 
Until there’s no more metal left for delivery, and then….

Enjoy:

By Barry Critchley, 
Financial Post · Saturday, Sept. 18, 2010

The price of gold is at record levels, yet investors still believe it is set to move higher. That’s the only logical interpretation to draw from the news that Sprott Physical Gold Trust, formed this year to hold bullion, has rounded up at least $280-million of new investment dollars in its latest financing. (The other interpretation: The lemmings theory is at work.)
That financing, done by way of an overnight marketed deal, was announced after the markets closed on Thursday and priced before the markets opened yesterday.
The result: The issuer sold 24.5 million trust units at $11.37 per unit. The units were sold at a 10¢ discount to the closing price the day the deal was announced. The issuer has a rule that the “net proceeds of the offering will be greater than 100% of the most recently calculated net asset value per unit of the trust prior to the pricing of the offering.”
According to its website, the fund’s NAV was $10.87, which means the units traded at a premium. The underwriters — RBC Capital Markets and Morgan Stanley — were given the option to sell another 3.675 million units. The units closed yesterday at $11.30.
That gold continues to rise is no surprise to Eric Sprott, the founder of Sprott Asset Management. Almost two years ago, he said that, “in the sea of financial assets and currencies that are being decimated the world over, the one true safe haven continues to be gold.”

So far, that view is working out. This week’s deal is the second since Sprott Physical Gold went public this year. In its IPO, the issuer raised US$442.50-million via the sale of 44.25 million units at US$10 per unit. In May, it followed up with a US$279.45-million deal via the sale of 24.84 million units at US$11.25 per unit.
Sprott isn’t the only issuer to gather up investor interest in physical gold.
In May, the Central Fund of Canada closed the sale of 25.3 million units at U.S.$14.85 per share, for gross proceeds of US$375.7-million. It too has a pricing rule: It must be non-dilutive and accretive for the existing shareholders. The issuer invested most of the proceeds “in gold and silver bullion in international banker bar denominations.” After that deal, it
owned 1.5 million fine ounces of gold and 75.2 million ounces of silver.
Last November, it raised US$230.2-million via the sale of units priced at US$13.56 a time. The units closed yesterday at US$16.14. In 2009, Central Fund completed four offerings that raised a total of US$701.6 million. Central GoldTrust has also been active. In June, it raised US$280.2-million, with all the proceeds being invested in gold bullion. (The ompany owns 604,676 fine ounces of gold bullion and 6,156 ounces in gold certificates.) As with Central Fund, the price of the units is “non-dilutive and accretive for the existing unitholders.”
In 2009, it closed two issues, one for US$38-million in January and another for US$200.2-million in May.
GOLD ENTERING A VIRTUOUS CIRCLE

By Egon von Greyerz
September 7, 2010

Fundamental and technical factors for gold are now in total harmony and gold is entering a virtuous circle that will drive the price up at its fastest pace since this bull market started in 1999.
  • It is a fact that gold in US dollars (and many other currencies) has gone up 400% in eleven years or 16% per annum annualised.
  • It is a fact that the US dollar has declined 80% in value against gold since 1999.
  • It is a fact that the dollar and most other currencies have gone down 98-99% against gold since 1913 when the Federal Reserve Bank of New York was created.
  • It is also a fact that the Dow Jones (and many world stock markets) has declined over 80% against gold since 1999.
  • It is a fact that gold has made a new all time monthly closing high in dollars in August 2010.
Gold trend
We expect gold to start a substantial rise now which will continue for 5-10 months before any major correction. Gold’s technical picture is extremely strong with a continuous rising pattern of higher highs and higher lows with the steepness of the curve increasing. From much higher levels we are likely to see a correction that could last up to a year before the next rise which will last several years before we see a significant peak. Once gold has topped we do not expect the same kind of decline as after the 1980 peak since gold is likely to become part of a future reserve currency. At that point gold will be a solid but unexciting investment with very little upside potential. But that is likely to be a few years away.
For the full article please click the following link: GoldSwitzerland Market Update

September 2010
Egon von Greyerz
GoldSwitzerland.com / MatterhornAssetManagement.com
Gold and Silver Market Suppression Failures Flash Buy Signal

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“I am writing this in a 5-part series. The first three parts will document in as much detail as space allows the methods and actors involved in the historic and current price suppression of the gold market.

The fourth piece will tell you how to profit from gold, and the fifth from silver. These last two parts are really how to survive it first, and then profit from it. I say this because the gold market is an economic signal that cannot be ignored, no matter how much the powers that be want you to. If the powers that be are trying this hard to suppress this invaluable economic signal, then this is one ominous sign that we are in for a large economic ‘adjustment’ period.

Each piece will be released on consecutive days. Please be patient as the story is gradually told. I endeavored to put as much information here as to make this a solid basis for gold (and silver) market investment analysis, and not a typical ‘one-off’ chart and recommendation piece …”

A series of essays that has begun to be posted at Seeking Alpha by Robert Kientz, an auditor and former broker and currency market analyst, is worth looking up at the Seeking Alpha website.
The essays are titled “Gold and Silver Market Suppression Failures Flash Buy Signal“. You can find the first of the series HERE, and the second one HERE