Magazine: Critical Gold/Silver News

Latest News that affects your Gold and Silver Investments.

Gold…Most Sought After Metal On Earth – 1 of 5

Stats You Should Tweet:

  • Gold is the most sought after metal on earth »tweet«
  • The Romans were the first to use gold and silver in a widespread monetary system »tweet«
  • During Roman Times, the silver to gold ratio was 12:1. Today it is 66:1 »tweet«
  • Gold is rare…The world gold supply increases by only 1% to 2% per year »tweet«
  • Gold is immortal. Gold does not react with air, moisture, or most corrosive agents »tweet«
  • In 1933 Pres. Roosevelt issued Executive Order 6102, which criminalized the possession of any monetary gold »tweet«
  • 1 ounce of gold can be hammered into a single sheet (30 feet x 30 feet) »tweet«
  • 1 ounce of gold can be stretched to a length of 50 miles. The resulting wire would be just 5 microns wide! »tweet«
  • If you took all of the gold ever mined and stretched it into a wire, it would be 280 trillion miles long »tweet«
  • The world produces nearly as much steel in one hour as the total amount of gold mined throughout history »tweet«
  • 174,100 tons of gold has been mined since the dawn of time. It could all fit in a 69 foot cube »tweet«

Gold - The Most Sought After Metal On Earth

Courtesy of: Visual Capitalist

China and Russia Grow Closer

Peter’s Commentary

There is a definite hardening of attitudes between the West and Russia. Russia is no longer part of the G8 (now the G7). Sanctions have been imposed on Russia by the West.

Russia is taking significant steps to become much closer to China. Deals either agreed so far, or being worked on include:

  1. An oil pipeline
  2. A major seaport
  3. An alternative to the SWIFT system for international payments
Vladimir Putin with Xi Jinping

Chinese President Xi Jinping (L) meets with his Russian counterpart Vladimir Putin in Dushanbe, capital of Tajikistan, Sept. 11, 2014. (Xinhua/Huang Jingwen)

From China Voice:

BEIJING, Sept. 12 — Cooperation between China and Russia is advancing smoothly, as can be seen by the increase in high-level contact since 2013.Thursday’s meeting between Chinese President Xi Jinping and his Russian counterpart,Vladimir Putin, ahead of the 14th summit of the Shanghai Cooperation Organization(SCO) in Dushanbe, capital of Tajikistan, is their fourth this year. Xi has held talks or met with Putin nine times since becoming China’s President in March 2013.

Energy cooperation has been the highlight of China-Russian relations. A China-Russia oil pipeline is already pumping oil into China. In May, Xi and Putin put the final touches to a new energy partnership and made substantial progress on the China-Russia East Route natural gas pipeline.

Construction of the Russian part of the pipeline started in eastern Siberia this month. The pipeline will take years to complete, but from 2018, some 38 billion cubic meters of natural gas will reach China every year.

Energy cooperation is not just about oil and gas. In 2013, China imported 24.4 million tons of crude, 27.3 million tons of coal and 3.5 billion Kwh of power from Russia.

Alongside successful energy cooperation, there is a fresh impetus in financial areas. China is the fourth-largest source of investment for Russia. Last year, direct investment in Russia hit 4 billion dollars, five times the amount in 2012.

On the horizon are specific plans for joint endeavors in high-speed rail and satellite navigation, with other large-scale projects– development of a long-range wide-body passenger jet and heavy-lift helicopter, for example–preparing for take-off.

On the trade front, China has been the number one partner of Russia for the past four years. Two-way trade reached 89.2 billion U.S. dollars last year, and plans are afoot to raise the volume to 100 billion dollars by 2015 and 200 billion dollars by 2020.

People-to-people exchange is also on the up. More than 1 million Chinese tourists visited Russia last year, second only to Germans, and in the first quarter of this year, the number of Chinese visitors surpassed even that of Germany. More

And from Yahoo Finance, we hear of a new seaport about to be built in far eastern Russia, just 11 Miles from the border with China:

Beijing (AFP) – China and Russia will build one of the largest ports in northeast Asia on Russia’s Sea of Japan coast, reports said, in a further sign of the powerhouses’ growing alliance.

 The seaport is expected to be able to handle some 60 million tonnes of cargo a year, China’s state-run People’s Daily Online reported late Wednesday — comparable to Britain’s busiest port Immingham or Le Havre in France, according to European Commission statistics.

The new facility will be located in far eastern Russia, just 18 kilometres (11 miles) away from the Chinese border. The region is also close to North Korea.

Chinese and Russian leaders inked a deal on the port at May’s Conference on Interaction and Confidence Building Measures in Asia (CICA) in Shanghai, the report said.

The move represents the latest step by Beijing and Moscow to boost their energy and infrastructure ties.

Additionally, Russia and China are both in talks to find an alternative to using the SWIFT System for making international payments.

BEIJING, September 10. /ITAR-TASS/. Russia and China are discussing setting up a system of inter-bank transactions which will become an analogue to International banking transaction system SWIFT, First Deputy Prime Minister Igor Shuvalov told PRIME on Wednesday after negotiations in Beijing.“Yes, we have discussed and we have approved this idea,” he said.

Russian authorities wanted to decrease the financial market’s dependence on SWIFT since the introduction of the first U.S. sanctions, when international payment systems Visa and MasterCard denied services to some Russian banks owned by blacklisted individuals. More

Concluding Remarks:

The above examples of Russian-Chinese cooperation are important indications of how close Russia and China are becoming.

If one considers that China, Russia and the USA are the most important countries in a global world, then it should worry you (especially if you’re a US citizen), that the USA is distancing itself through its policies, such as pushing for strong sanctions against Russia. This will have major implications in the months and years to come.

Explosion Kills Entire Leadership Of ISIS Opposition

Peter’s Commentary

This is bad news. Particularly when the US is strategizing to get rid of ISIS.

From Breitbart, 09/11/2014:

Nearly fifty senior commanders of a major coalition of Islamic ‘moderates’ opposed to ISIS in Syria have been killed by an explosion at their secret command bunker as they met to discuss strategy against the Islamic State.
The blast in the Northwest region of Idlib, Syria on Tuesday killed senior members of rebel group the Ahrar-al-Sham brigade (AaS), including leader Hassan Abboud and 45 others including senior members from other rebel alliance groups, reports The Times. The Idlib region stands in AaS territory, but it is close to the front-line with ISIS in neighbouring Aleppo.
Sources dispute the source of the blast, with it being unclear whether it was an opposition group, suicide bomber, or accidental explosion at a nearby ammunition dump. Regardless, the incident will destabilise and possibly tear apart the AaS group and associated Islamic Front Coalition which was recently described as “the most powerful armed group in Syria”.Islamic group Ahrar-al-Sham, whose name translates as ‘The Free Men of Syria’, is one of many movements competing in the inter-rebel conflict in Syria.
A number of rebel groups are presently fighting each other as well as besieged Syrian President Bashar al-Assad, whose power base is in West and South-West, for overall control of the Region.As the main rival to ISIS for control of Syria, the AaS blast if not orchestrated by the Islamic State will certainly be greatly beneficial to them.
The ‘decapitation’ strategy, targeting Ahrar-al-Sham’s political, military and spiritual leadership is reminiscent of the United States’ targeted strikes against the leadership of Al-Qaeda.The death of Abboud and his followers in Idlib highlights the difficulty of Western involvement in the conflict, where enemies of the apparent first enemy ISIS also make fairly poor potential allies. Many members of AaS have come from groups like Al-Qaeda and would in any other context be considered hard line Islamists. Source

Russian Natgas Deliveries Fall by 45% Today Claims Poland

Peter’s Commentary

Yesterday, we heard that Natgas deliveries to Poland had been cut by 24%. Today Poland is claiming that deliveries have fallen by 45%.

From The Financial Newswire 9/11/2014:

Poland’s listed natural gas group PGNiG noted Wednesday natural gas deliveries from the east 45% below the ordered level, the firm said in a Thursday press statement.

Wednesday marks the third straight day when Poland claims to have received less gas than ordered from Russia’s Gazprom. Poland claims that shortfall forced a shutdown of re-export to gas-strapped Ukraine and an increase in imports from other directions to compensate the loss.

“Under the Yamal contract, PGNiG has the right to collect volumes lower or in line with the maximal daily amounts contracted for particular entry points,” PGNiG said. “Volumes ordered by PGNiG were below the maximal level – that is line with the contract. Nevertheless, they have not been realized by OOO Gazprom Export.”

In order to make up for the missing volumes from the east, PGNiG claims to have launched supplementary gas deliveries via Lasow at the German border and via Cieszyn at the Czech border, the firm noted in its statement. Source

hjkhj

Russia’s Gazprom Retaliates: Cuts Poland’s Gas Supplies By 24%

Peter’s Commentary

Last week Europe warned that it will impose a more serious set of sanctions that will impact Russia’s large energy companies. In response to this warning, Gazprom took steps to decrease gas supply to Poland on Sept 8 and 9 by 20 to 24% respectively.

From Gazeta.ru. 09/10/2014

Poland has suspended gas supplies to Ukraine in reverse flow. This was stated by the head of the company “Ukrtransgaz” Igor Prokop’ev, reports RIA “Novosti.”

“Not everything is so simple. Today, Russia has begun to limit the supply of gas to the Republic of Poland to thwart reverse with Poland, we learn. At two o’clock in Poland ceased to reverse the Ukraine within the 4 million cubic meters “, – he explained the situation.

Earlier Polish PGNiG reported about the reduction of Russian gas supplies by 24%. (Translated by Google) Source

 

De-Dollarization Continues – Argentina and China agree to Currency Swap

Peter’s Commentary
There is a large trend towards US de-dollarization occurring. More and more countries are bypassing the dollar. Argentina has just agreed with China’s central bank to receive the first tranche of a multi billion currency swap before the end of this year.
De-dollarization

According to Reuters:

The swap will allow Argentina to bolster its foreign reserves or pay for Chinese imports with the yuan currency at a time weak export revenues and an ailing currency have put the Latin American nation’s foreign reserves under intense pressure.

La Nacion said Argentina would receive yuan worth $1 billion by the end of 2014, the first payment of a loan worth a total $11 billion signed by Argentina’s President Cristina Fernandez and her Chinese counterpart in July.

The daily newspaper said the presidents of the countries’ two central banks had met on the sidelines of a meeting in Switzerland, but did not say how it had obtained the information.

Fernandez’s government has imposed stringent import and capital controls to safeguard the dwindling reserves, now at around eight-year lows, which it needs to pay its debts.  Source

 Conclusion

Each month we are seeing more and more of these steps towards US de-dollarization being taken. At some stage, this will have a large negative effect on the dollar and a counter-effect on gold and silver.

SIPC Insurance Is A Scam Says Professor Kotlikoff

Peter’s Commentary

Laurence Kotlikoff is a professor at Boston University and has a Harvard PhD.
Professor Laurence Kotlikoff
He regularly writes for Forbes, the NY Times, The Wall Street Journal, and the Financial Times.  In short, he knows what he is talking about.

Kotlikoff states that the Securities Investor Protection Corporation (SIPC) is an insurance scam.

From Forbes:

Kotlikoff says that the “SIPC is running an enormous scam in claiming to insure our brokerage accounts against fraud. SIPC’s refusal to pay the legitimate claims of most Madoff victims and all Stanford victims makes this abundantly clear.”

Kotlikoff goes on to say: “Even worse, SIPC is placing all brokerage account holders at enormous additional risk by standing ready to sue them if they earn a return on their investments and spend the proceeds. In fact, thanks to precedents SIPC established in the Madoff case, SIPC can declare the loss of your securities to be the result of a Ponzi scheme and sue you for up to every dollar you withdrew in the up to six years prior to the fraud’s discovery!”

Kotlikoff says you should read that last sentence carefully, because..”It is saying that if you have made money investing with a broker, directly or indirectly, say through your IRA, you can not safely spend (or, indeed, withdraw and reinvest) your assets for up to six years from the time you’ve withdrawn them! But it is even worse than this. When you withdraw money from your IRA, you have to pay up to 40 percent in taxes. You can be sued for the amount you pay the IRS in taxes as well!

Kotlikoff says…”Frankly, I wouldn’t get within a million miles of a SIPC-insured brokerage account. Having seen first hand from relatives, friends, and colleagues their treatment by Fraud Street’s “insurance company,” I most strongly recommend a) closing your brokerage account and b) either investing in mutual funds with independent, third-party custodians or taking physical possession of your stock certificates, bond certificates, and other securities and putting them in your personal safekeeping. Hiding your securities under your mattress would be far safer than letting them be “insured” by SIPC.”

“Also, while you are closing your brokerage account take the time to tell your brokerage firm that you’ll be happy to use them again, but only after passage of the bi-partisan bill H.R. 3482 and S. 1725 – Restoring Main Street Investor Protection and Confidence Act.”

Source and Kotlikoff’s website.

Conclusion:

Take warning from Professor Kotlikoff’s advice above. Also note that as of the end of 2013, the SIPC only has $1.9 billion in funds and a $2.5 billion line of credit to pay out in the event of a broker dealer becoming bankrupt or getting into financial trouble. At best, this is 1/4000th of the estimated $19 trillion invested in stocks in the US.

Kotlikoff’s recommendation to close your brokerage account and take possession of your stock certificates, bond certificates and other securities appears exceedingly wise based on the information above. And, of course, you could always buy physical gold and silver.

Putin Wants Russia to Sell Energy in Roubles

Peter’s Commentary

One of the easiest ways for Putin to attack the US is to start selling energy without settling payments in the US dollar.

If Russia starts to sell energy without the US dollar being involved, you can expect the US dollar index to drop significantly overnight. Remember that Russia sells gas to a lot of European countries. What if Russia made the transactions in German marks or French francs? Last week Putin made the following statement:

Putin says Russia should aim to sell energy in roubles
Thu, Aug 14 12:47

President Vladimir Putin said on Thursday Russia should aim to sell its oil and gas for roubles globally because the dollar monopoly in energy trade was damaging Russia’s economy.

“We should act carefully. At the moment we are trying to agree with some countries to trade in national currencies,” Putin said during a visit to the Crimea region, which Moscow annexed from Ukraine earlier this year.

Conclusion

A move away from using the petrodollar for oil and gas settlements would cause the US dollar index to fall significantly and the price of gold in dollars would go higher.

Relations thawing between Russia, Germany and France?

Peter’s Commentary

The article inserted below and a couple of other recent articles are suggestive of progress towards better relations between Russia and other European countries. Russia does have a big stick as it provides natural gas for the region.

RIA Novosti, MOSCOW, August 18, 2014

The foreign ministers of Russia, Ukraine, Germany and France have made some progress during Sunday’s talks on the settlement of the Ukrainian conflict, the Russian Foreign Ministry said on Monday.

The sides discussed international efforts towards the settlement of the Ukrainian crisis, the ministry reminded.

“Some progress was made in all issues. It was agreed to continue the dialogue in this format, which could find concrete proposals for consideration of Russian, German, France and Ukraine leaders,” the ministry wrote on its Facebook page.

Negotiations between Sergei Lavrov of Russia and Pavlo Klimkin of Ukraine seeking to end fighting in eastern Ukraine were held Sunday night at the Villa Borsig hotel in Berlin, Germany. They were also attended by German foreign chief Frank-Walter Steinmeier and his counterpart in France, Laurent Fabius. According to Steinmeier, the talks were difficult, but the sides made progress on certain points.

The foreign chiefs are expected to report back to their respective heads of government and decide on Monday or Tuesday on the format of follow-up negotiations.

This is the second four-party meeting of the kind. During the previous talks on July 2, also in Berlin, the four foreign ministers agreed on a declaration that called for a peaceful resolution to the conflict in Ukraine’s southeast. Source

Conclusion

Any thawing in the relationships between these countries and Russia should reduce geopolitical tensions and likewise will reduce any political risk premium figured into the price of gold.

In The West Respect for Truth No Longer Exists — Paul Craig Roberts

Peter’s Commentary I’m inserting Paul Craig Roberts post here in its full version. Read my earlier posts about AirMalaysia flight MH 17 and also the Russian armed convoy that was supposed to exist and supposed to have been partially destroyed. Then come to your conclusion about the accuracy of Western media reporting these two events.

In The West Respect for Truth No Longer Exists

Paul Craig Roberts, August 17, 2014

The Western media have proved for all to see that the Western media comprises either a collection of ignorant and incompetent fools or a whorehouse that sells war for money.

The Western media fell in step with Washington and blamed the downed Malaysian airliner on Russia. No evidence was provided. In its place the media used constant repetition. Washington withheld the evidence that proved that Kiev was responsible. The media’s purpose was not to tell the truth, but to demonize Russia.

Now we have the media story of the armored Russian column that allegedly crossed into Ukraine and was destroyed by Ukraine’s rag-tag forces that ISIS would eliminate in a few minutes. British reporters fabricated this story or were handed it by a CIA operative working to build a war narrative. The disreputable BBC hyped the story without investigating. The German media, including Die Welt, blared the story throughout Germany without concern at the absence of any evidence. Reuters news agency, also with no investigation, spread the story. Readers tell me that CNN has been broadcasting the fake story 24/7. Although I cannot stand to watch it, I suspect Fox “news” has also been riding this lame horse hard. Readers tell me that my former newspaper, The Wall Street Journal, which has fallen so low as to be unreadable, also spread the false story. I hope they are wrong. One hates to see the complete despoliation of one’s former habitat.

The media story is preposterous for a number of reasons that should be obvious to a normal person.

The first reason is that the Russian government has made it completely clear that its purpose is to de-escalate the situation. When other former Russian territories that are part of present day Ukraine followed Crimea, voted their independence and requested reunification with Russia, President Putin refused. To underline his de-escalation, President Putin asked the Russian Duma to rescind his authority to intervene militarily in Ukraine in behalf of the former Russian provinces. As the Russian government, unlike Washington or EU governments, stresses legality and the rule of law, Russian military forces would not be sent into Ukraine prior to the Duma renewing Putin’s authority so to do.

The second reason the story is obviously false is that if the Russian government decides to invade Ukraine, Russia would not send in one small armored group unprotected by air cover or other forces. If Russia invades Ukraine, it will be with a force capable of rolling up the rag-tag Ukrainian forces, most of which are semi-private militias organized by nazis. The “war” would last a few hours, after which Ukraine would be in Russia’s hands where it resided for hundreds of years prior to the dissolution of the Soviet Union and Washington’s successful efforts in 1991 to take advantage of Russian weakness to break apart the constituent provinces of Russia herself.

The third reason that the story is obviously false is that not a single Western news organization hyping the story has presented a shred of evidence in its behalf.

What we witness in this fabricated story is the total lack of integrity in the entirety of the Western media.

A story totally devoid of any evidence to support it has been broadcast world wide. The White House has issued a statement saying that it cannot confirm the story, but nevertheless the White House continues to issue accusations against Russia for which the White House can supply no evidence. Consequently, Western repetition of bald-faced lies has become truth for huge numbers of peoples. As I have emphasized in my columns, these Western lies are dangerous, because they provoke war.

The same group in Washington and the same Western “media” are telling the same kind of lies that were used to justify Washington’s wars in Iraq (weapons of mass destruction), Afghanistan (Taliban = al Qaeda), Syria (use of chemical weapons), Libya (an assortment of ridiculous charges), and the ongoing US military murders in Pakistan, Yemen, and Somalia.

The city upon the hill, the light unto the world, the home of the exceptional, indispensable people is the home of Satan’s lies where truth is prohibited and war is the end game. Source

Update: After pretending that the Russian humanitarian truck convoy contained a hidden invasion force, the stooge Kiev government was forced by facts on the ground to officially acknowledge that the trucks only contained aid for those that the Kiev stooge government has been bombing and attacking with artillery. Source