Guest Post: Tekoa da Silva interviews Rick Rule regarding the Junior Gold Miners

Fri, Sep 26, 2014 - 3:31pm

With so many miners getting smashed in price and the HUI down near 2014 lows, I thought that this new interview from the good folks at Sprott would be of interest here in Turdville.

Rick Rule: I Think We Are Seeing A Bullish Transition In The Junior Gold Miners
By: Tekoa Da Silva, 9/26/2014

Direct Link:

During a time in which few investors are considering the possibility of a recovery in natural resources, Rick Rule, Chairman of Sprott U.S. Holdings was kind enough to share a few comments.

Speaking towards the overall market Rick noted that, “The market itself is very healthy. You are seeing a transition…a transition that doesn’t suggest, but rather screams that [junior resource issues are] under accumulation—which is a very, very bullish sign.

When asked if the current recovery might outperform the early 2000’s recovery, Rick indicated that, “[S]tatistically, this market shows it can be done because the bear market that preceded this bull market was a bear market that was more severe... bear markets are the authors of bull markets, and the recoveries in some way, shape, or form are related to the declines.

Here are his full interview comments with Sprott Global Resource Investment’s Tekoa Da Silva:

Tekoa Da Silva: Rick, we had a meeting at our offices here recently, in which all our brokers, money managers, geologists, sat down around a table for what was a fascinating discussion on the resource markets.

You commented at one point during that meeting that we’re beginning to see a stair step formation building in the charts of the resource market; a series of higher highs and higher lows, suggesting a move of paper from weak hands to strong. Can you talk about that for our readers?

Rick Rule: Sure. I’m not a technical analyst but I have some friends who I think are fairly adept at this, [so I’ll say that], the chart pattern we’re seeing in the junior mining market in particular (but in the precious metals markets as well) is sort of a saucer-shaped recovery that is a slow, gradual recovery featuring higher highs and higher lows.

It’s important to note that the advances then consolidate—and that’s very important. The advances that don’t consolidate tend to [later] consolidate or fall off very rapidly. So what we’re seeing is a market that will advance by 10% or 12%, and then decline by 5% or 6%.

This is unnerving for people who can’t stomach volatility, people who have too much margin in their account, or people who are simply unrealistically impatient with regards to markets. But the fact that it’s frustrating doesn’t have anything to do with the market.

The market itself is very healthy. You are seeing a transition in the better stocks of the GDXJ—a transition that doesn’t suggest, but rather screams that they’re under accumulation which is a very, very bullish sign.

The slowness of the recovery suggests that the recovery is not fragile or over-extended at all. It’s very powerful and very deliberate. So I’m extremely encouraged by that. Most people of course, most speculators, want the later stages of a recovery, the “J curve”. Unfortunately for them, most speculators when they get excited, they buy. So when that J curve takes place, when the strong upward right momentum starts to build in a chart, that’s the time when one should be selling, not buying.

TD: Rick, are there other technical indications that you’re seeing now which suggest the juniors is being aggressively accumulated?

RR: Well, the chart shows just what I’ve described. If you [use] the base of a hundred, the chart would run to 112 or 113 and then consolidate back to 105 and then run to 120 or 121 and consolidate back to 109 or 110…then run to 127 or 130 and consolidate back to 115.

[So] that’s precisely what we’re seeing. It’s interesting that we aren’t seeing extraordinary volumes, just like we didn’t see extraordinary volumes in June, July and August of 2013 which [marked] the bottom.

We saw a situation then where the buyers were exhausted but there was some residual selling. So you had a down to flat market on no volume. Now you have a situation where the sellers are exhausted. It’s going up on limited volume but the buyers have the predominance.

The market will move from this recovery phase to a bull market phase, and exceeding expectations in this market is absolutely inevitable because the expectations for the sector are so low that they can’t help but be exceeded.

TD: Rick, could you comment on your expectations for the strength of this recovery, and do you feel it may be more intense than what we saw in the early 2000s?

RR: That would be difficult. The recovery we saw from the bottom in 2000 through the beginnings of the bull market in 2004 and then through the top of the bull market in 2007 were extraordinarily powerful. That was the best period of performance in my career albeit from a small base.

So outperforming that recovery would be difficult. Now statistically, this market shows it can be done because the bear market that preceded this bull market was a bear market that was more severe. The TSX Venture fell by 75% percent from its top in early 2011 to its bottom in late 2013 and we have seen in a very rough sense that bear markets are the authors of bull markets, and the recoveries in some way, shape, or form are related to the declines.

So from a statistical or empirical sense, I think that what you say could come true. From a practical sense, the recovery from the 2000 bear market was so kind to me personally that it seems disingenuous to expect a replay.

TD: Rick, I was reading the annual statement put together by Ned Goodman at Dundee Corporation who you’ve noted to be a mentor of yours over the years and he indicated that he has learned that you don’t make money when everyone is running into stocks.1 You make money when no one wants to buy.

Despite that statement—few people seem to be interested in investing in resources. What are your thoughts?

RR: It’s common at a bear market bottom that while people empirically understand the goods are on sale and they’re going to make money, that their recent experience has been so bad that they won’t allow themselves to reenter the market until they have confirmation from the market itself that it’s safe and attractive to do so.

It’s amusing to me that you point out Ned Goodman. I remember a speech that he gave at the Prospectors and Developers Association of Canada in 1999 basically saying that the pivot point was in, and the bear market was over.

I would suspect that Ned was within three or four months of being right. I don’t really consider Ned to be a market timer but what he is, is a 76-year-old guy who has been in resource markets for 50 years, and right now, people are saying to Ned with regards to his bullishness on the market that, “Well, Ned has been saying that for a year and a half. Why would anybody possibly listen to him?”

Well, how about the fact that he’s a self-made billionaire? That might be a reason. How about the fact that he was stupendously right in the 1998-2000 bull market? How about the fact that when he spun Dundee Corp. out of Corona in the early 90s bear market, the stock of Dundee went from $.80 cents to $42 in the ensuing bull market?

I’m one of those who believe that past is prologue and I am one of those who believe that self-made billionaires who are still active in the market are people worth listening to. So I think that Ned may be anecdotal data but I think he’s very, very good anecdotal data. Of course it doesn’t hurt that his conclusions are very similar to my own.

TD: I’d like to ask you about the idea of pyramid portfolio allocation. I remember you noting it could be a rewarding strategy for an interested speculator. What are your thoughts on how one could construct a pyramid portfolio in the resource space?

RR: With regards to the precious metals, I think that an investor needs to ask himself or herself first of all if they believe in the precious metals thesis, and if they believe that there is a place in their portfolio for precious metals and precious metals equities; A, because they’re unloved, and B, because they’re traditional antidotes for popular instruments like the U.S. 10-year treasury.

If the answer is yes, then investors and speculators need to ask themselves whether the precious metals they have in their portfolio are sufficient or whether they need to add more. We have found that most general market investors are under-invested in precious metals from our own point of view.

If the investor agrees with that statement, they need to decide further whether they want to hold their precious metals in physical form or in the form of ETFs or trusts. I have chosen (not surprisingly) to hold most of my precious metals in the form of the Sprott Physical Trusts; the Physical Gold Trust, the Physical Silver Trust, and the Physical Platinum and Palladium Trust.

I’ve done that for three reasons. One, because it’s a hassle to hold physical precious metals although I do hold some, two, because the ease with which one can buy and sell on the New York Stock Exchange (as opposed to a coin dealer), favors particularly for an older person like me, a certificated product.

Finally, because the certificated product for American taxpayers (of whom I am one unfortunately), affords one capital gains tax treatment, while on the other hand holding the physical precious metals affords one income tax treatment. So the tax arbitrage between the capital gains and ordinary income rates in the upper tax brackets is very substantial.

So the first thing that one needs to do is decide whether or not their precious metals holdings are sufficient and two, in what form they wish to own them.

The second decision then if you buy the precious metals argument after having achieved the beta of the metals with physical precious metals holdings is—do you want to chase alpha? In other words, do you want the leveraged performance that a precious metals bull market would generate in the equities?

If that’s the case, how do you want to do it? With regards to the big companies, I am increasingly convinced that investors should not be buying the market, or a market cap weighted ETF like the GDX which rewards size, but rather through buying very high quality individual companies or an ETF that concentrates on qualitative rather than size selective measures.

That was the thinking behind Sprott’s launching of the Sprott Gold Miners Index, the SGDM, which is a low fee ETF product that selects stocks not by aggregate size but rather by corporate performance metrics such as increased revenue, which means that their production base is growing rather than declining. A key problem in the gold business is cash flow generation because the industry as a whole doesn’t generate much cash even at higher gold prices, but individual companies such as Franco-Nevada, Goldcorp, or Royal Gold generate substantial cash.

So I would suggest that if somebody wants to capture alpha that they first start with the major mining companies. The high quality major mining companies will be the first to move in the event that the metals prices go up.

Then at the top of the triangle are the speculative juniors that we at Sprott Global are so well-known for and there are two different ways to play those. You can play the after market in those stocks which are free trading shares on the exchange (the higher quality ones of course), and then there’s the tippy top of the pyramid for those investors who are accredited investors. By that I mean participating in private placements in the junior sector. The attractiveness of that is if the private placement is intelligently constructed, you get “warrants” which are the right but not the obligation to buy more stock at a fixed price over time, which you can exercise if the company generates value internally or if the market itself recovers.

TD: Rick, Warren Buffett is known for having said that a bull market is like sex in that it feels the best right before it ends.2 I asked you back in January, your thoughts on the general equities market. I’d like to ask again: When you look at the strength of the S&P 500, reaching all-time highs3 —what are your thoughts?

RR: Well Tekoa, with the caveat that I’m not a general market securities analyst and also with the caveat that I’m not an economist—I’m a credit analyst—the sentiment associated with the broad market seems too strong to me.

I own some general market securities and I have some money managed by others in the broad market, but I have to say I’m nervous. I’m nervous because [the market strength] presupposes that the North American economy (at least) is in recovery and I see no particular evidence of that recovery, although I will say that over the last quarter, there are signs that the biggest companies in the United States are beginning to invest in property, plant and equipment—which is a useful sign.

But I’m not seeing much by way of increased worker’s incomes outside of the oil and gas industry in the United States, so it’s difficult for me to see a recovery happening without rising real wages in the middle class.

If we began to see rising wages, then we would see a consumer cycle where the North American auto fleet and North American durable goods, things like refrigerators and washing machines (consumer durables), begin to get bought because the used inventory – in terms of its age, is at an all-time high. If we had real growth in workers’ incomes, we would be replacing the auto fleet and we would be replacing our durable goods inventories.

If we saw that, then we would begin to see greater property, plant and equipment investments by major companies in the United States. That increased capital employed by workers would continue to increase real workers’ wages. It seems to me like the strength we’re seeing in the S&P 500 presupposes that this is going to happen, and if that’s true, the S&P 500 isn’t expensive. I just don’t know that it’s true.

The second thing that’s worrying to me is that the debt and equity markets rally we’re in is surely the stuff of very, very low interest rates. I talk to investors every day whose behavior is being determined by the very low return that they’re getting on savings.

Investors are getting forced into riskier and riskier activities. They’re going further out the yield curve to increase their income, and remember that debt instrument pricing is set by the delta between their yield and the yield on the U.S. 10-year treasury.

As an example, in the junk debt markets (which more and more people are being forced into), if the median yield is 7%, and the yield on the U.S. 10-year treasury is 2.7%, the delta is 4.3%, something like that. If the yield on the U.S. 10-year treasury were to go from 2.7% to 3.5%, the delta (which is what the pricing is based on) would decline by about 25% or 30%, and it wouldn’t surprise me to see a commensurate impact on the debt markets, meaning a pretty ugly decline, and I could see that spilling over into the equities markets.

So I would tell readers with regard to the general securities markets, please don’t buy the entire market. Buy individual securities where you believe the business will grow of its own volition for old-fashioned reasons, like the company servicing its customers well and as a consequence of that, beating its competitors well. Don’t buy the market. Buy individual stocks.

TD: Rick, in wrapping up, is there anything else you think we may have missed?

RR: No, I think we’ve asked people to understand an awful lot Tekoa. I would ask the readers that if they agree with this way of thinking, that they reach out to us. I espouse what I of course believe to be correct and we would welcome the opportunity to do business with like-minded people.

TD: Rick Rule, chairman of Sprott U.S. Holdings, thank you for sharing your comments.

RR: Thank you Tekoa.

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(In closing, I invite everyone to visit the Sprott Store and take a look around. TF

About the Author

turd [at] tfmetalsreport [dot] com ()
Does Feb19 Comex gold close above $1250 on Friday?
Total votes: 185


Spartacus Rex · Sep 26, 2014 - 3:34pm

I'll Take The Gold...

Everyone else can have the shaft!

Spartacus Rex · Sep 26, 2014 - 4:07pm
Spartacus Rex · Sep 26, 2014 - 4:11pm
Spartacus Rex · Sep 26, 2014 - 4:19pm
Spartacus Rex · Sep 26, 2014 - 4:27pm
Spartacus Rex · Sep 26, 2014 - 4:31pm

@ Wealth Watchman

"(and it's not what you're thinking it is)." The Apple i phone 6?

Wow, you can read minds? LOL. Cheers, S. Rex

Wealth Watchman · Sep 26, 2014 - 4:34pm

I've taken a look

At a few miners, but haven't bought yet.

Why would I? The trendline hasn't definitively changed. Yes, of course they're undervalued.

Silver's been undervalued for several years though too...

Lemme give you a more direct example of why I haven't: last week I called my wife's broker who's in charge of her IRA. I'd identified 4 different miners, who had pretty strong positions and balance sheets....and who had all already fallen 90% or more from their top in just 3 years.

I didn't pull the trigger though, and glad I didn't, because since then they've each fallen another 10%. In one week!

They were stupid cheap a year ago. They're stupider cheap today. Could they be stupidest cheap in 6 more months? Could they all be free in 12 more months?

You bet your sweet canned bacon they could. I'm not saying they will, mind you, they'll probably rally soon(either short or long term)

They're in a pit that they themselves have dug. I don't have one granule of pity for these miners. As NONE of them, not one! will fight for their shareholders, will risk it all, and put it on the line to out the market riggers. None. So they all deserve the nuclear winter they are in.

Just saying, that miners are a sinkhole, until they're not.

"Until they're not" won't arrive til the banks either can't possibly put that 1,000th finger in the dike, or they simply decide that "it's time".


In other news, I finished my "Mental Training" series, and just got another hot off the press, bringing to light another interesting item that China is now buying like crazy, and can't get enough of(and it's not what you're thinking it is).

To Turd and Turdville: keep patrolling the watchtower here. The Watchman salutes you!


Dagney Taggart · Sep 26, 2014 - 5:15pm

Dave McAlvany's Weekly Podcast

This is great! I hope everybody has plenty of "Stupidity Insurance"...

The FED’s $4 Trillion Trap | Too Big Not To Fail | McAlvany Commentary 2014

Disclosure: We have some of our "System" money parked with him.

Spartacus Rex · Sep 26, 2014 - 5:27pm
Spartacus Rex · Sep 26, 2014 - 5:29pm
Spartacus Rex · Sep 26, 2014 - 6:03pm
Spartacus Rex · Sep 26, 2014 - 6:16pm

G.O.P. Error Reveals Donors and the Price of Access

WASHINGTON — In politics, it is sometimes better to be lucky than good. Republicans and Democrats, and groups sympathetic to each, spend millions on sophisticated technology to gain an advantage.

They do it to exploit vulnerabilities and to make their own information secure. But sometimes, a simple coding mistake can lay bare documents and data that were supposed to be concealed from the prying eyes of the public.

Such an error by the Republican Governors Association recently resulted in the disclosure of exactly the kind of information that political committees given tax-exempt status usually keep secret, namely their corporate donors and the size of their checks. That set off something of an online search war between the association and a Washington watchdog group that spilled other documents, Democratic and Republican, into the open.

The documents, many of which the Republican officials have since removed from their website, showed that many of America’s most prominent companies, from Aetna to Walmart, had poured millions of dollars into the campaigns of Republican governors since 2008. One document listed 17 corporate “members” of the governors association’s secretive 501(c)(4), the Republican Governors Public Policy Committee, which is allowed to shield its supporters from the public.


Hammer · Sep 26, 2014 - 6:27pm

536: The Secret Recordings of

536: The Secret Recordings of Carmen Segarra

Sep 26, 2014

An unprecedented look inside one of the most powerful, secretive institutions in the country. The NY Federal Reserve is supposed to monitor big banks. But when Carmen Segarra was hired, what she witnessed inside the Fed was so alarming that she got a tiny recorder and started secretly taping. ProPublica's print version.

Spartacus Rex · Sep 26, 2014 - 6:49pm

@ Hammer re 536...

Yes we know, but are you wearing a tielaugh Cheers, S. Rex

foggyroad · Sep 26, 2014 - 6:59pm

I don't have to buy

I still have a huge pile of unloved Miners, loved by no one but me, and since they are worth 25% of what I paid for them, I'm not overly fond of them either, but I am one stubborn SOB, and I will hold onto them until Eric Holder gets religion, and Corizine repays TF's MF Global account.

These crooked thieves with their fat greasy thumbs on the wheel, will get there just deserts someday, these Miners are goin to launch like a beachball held underwater by a fat lady sittin on the bottom of a pool and I will dance a jig, smoke a cigar, and fart in their general direction till the sun comes up.

Thank's Craig, excellent update, I loves me some RR, and Sprott.

​This is the Best PM's site on the web, and by gumby, when my Miners, take off I'll have enough dough to finally pay my way around here.

Much Thank's TF.

ancientmoney · Sep 26, 2014 - 7:04pm

I was lucky . . .

I have followed Ted Butler for years, I think I started reading him in 2002 or so. When I quit my job in 2003, I cashed in my 401-k, paid the taxes and penalties, and split the money between silver and PM stocks. I had bought gold several years before (phyzz), and had no silver at the time, or PM stocks.

Anyway, the stocks went wild, and I heeded Butler's advice that silver will be the best investment that existed. I sold my stocks for a big gain, except for a handful of favorites. I plowed the proceeds into phyzz silver.

Since then, of course, all my phyzz gold and silver and stocks have taken roller coaster rides. My PM stocks are about 30-40% of their value wwhen I sold the rest. But, 100% of my physsical gold and silver ounces are still there!

Mr. Fix · Sep 26, 2014 - 7:47pm

Obama's days might be numbered:


Dave Hodges just wrote a piece outlining how Pres. Obama may be removed by the federal reserve if he can't occupy Syria, and take out Iran! Now we know why he's pushing so damn hard for war.

Read this:

Holder Is Staying One Step Ahead of the Burning Bridge

For months, my sources have told me that Obama will not serve out his entire second term if he does not eradicate the Syrian/Iranian threat to the Federal Reserve’s petrodollar. Inside sources state that Obama will either be impeached and convicted for high crimes and possibly even treason. Former Attorney General, Eric Holder, has been with Obama every step of the way. Simply put, ..

Mr. Fix · Sep 26, 2014 - 8:01pm

It be great if there was still such a thing as law enforcement:


Higher-ups stonewall bank examiners

Secret Tapes Reveal Inner Workings of Goldman Sachs, Federal Reserve

Image Credits: Tim Evanson / Flickr


Barely a year removed from the devastation of the 2008 financial crisis, the president of the Federal Reserve Bank of New York faced a crossroads.

Congress had set its sights on reform. The biggest banks in the nation had shown that their failure could threaten the entire financial system. Lawmakers wanted new safeguards.

The Federal Reserve, and, by dint of its location off Wall Street, the New York Fed, was the logical choice to head the effort. Except it had failed miserably in catching the meltdown.

New York Fed President William Dudley had to answer two questions quickly: Why had his institution blown it, and how could it do better? So he called in an outsider, a Columbia University finance professor named David Beim, and granted him unlimited access to investigate. In exchange, the results would remain secret.

Read more

Mr. Fix · Sep 26, 2014 - 8:07pm

According to this “The Great Keynesian Experiment” is over!

Peak Debt - Why The Keynesian Money Printers Are Done

Submitted by Tyler Durden on 09/26/2014 - 19:06

Self-evidently, all the major economies are saturated with debt.Accordingly, central bank balance sheet expansion has lost its Keynesian magic entirely. Now the great sea of freshly minted liquidity simply fuels the carry trades as gamblers everywhere load up with any asset that generates a yield or short-run capital gain, and fund these bloated positions with cheap options and repo style finance. But here’s the obvious thing. Central banks can’t normalize interest rates - that is, allow the money markets to rise off the zero-bound - without triggering a violent unwind of the carry trades on which today’s massive asset inflation is built. On the other hand, they can no longer stimulate GDP growth, either, because the credit expansion channel to the main street economy of households and business is blocked by the reality of peak debt. Yes, the era of Keynesian money printing is over and done. But don’t wait for the small lady at the Fed to sing, either.

Spartacus Rex · Sep 26, 2014 - 8:59pm

" "The Great Keynesian Experiment" is over!" Not Quite...

For those who do not already follow Don Quijones over at Raging Bull-Sh*t, he put up a pretty decent article earlier this week by David Malone of Golum XIV fame, entitled "The Next Crisis, Part Two: A Manifesto for the Supremacy of the 1% "

Worth the read: 

Mr. Fix · Sep 26, 2014 - 9:29pm

@ Spartacus Rex :Not quite is right:

 Since I am assuming that piling up unpayable debts, and bankrupting everyone was a means to an end, I am sure that they are about to move onto the next phase of their master plan.

 Stopping the printing presses is probably part of it.

 I'm seeing two lines of thinking in the alternative news, one says that the powers that be are planning to collapse the dollar, and usher in a new world currency,

 while simultaneously, others are saying that this so-called war on ISIS is all about saving the dollar.

 You can't have it both ways, but I'm leaning towards a collapse scenario myself, mathematically speaking, and geopolitically speaking, there simply is no other alternative at this point.

 Time will tell.

treefrog · Sep 26, 2014 - 10:30pm
DeaconBenjamin · Sep 26, 2014 - 10:44pm

German Bullion Dealers Report Major Increase in Sales

Beliebtestes Goldanlage-Produkt: Krügerrand-Goldmünzen

One of the most popular assets: Krugerrand Gold Coin

Bullion dealers from all regions report that gold sales in the German bullion trade market surge since last week.

Suppressed prices for gold and silver are obviously considered buying rates by German investors. The German precious metals trade reports a surge in sales.

Strong Sales

“For about a week we record considerably increased turnover again, which is now on previous year’s level, so it doubled compared to the recent months”, Rene Lehman from the internet dealer Münzland in Dresden told Goldreporter.

“We can confirm that customer demand has considerably increased in the recent days" said Dominik Kochmann, CEO of ESG Edelmetalle in Rheinstetten.

Daniel Marburger, Director of Coininvest GmbH in Frankfurt/Main also stated that "In the past seven working days we have seen an extreme surge in demand.”

Christian Brenner, Chief Executive of Philoro Edelmetalle GmbH: “Already in August we noticed an increase on orders compared to the previous months, but September… September beats it all. From a German viewpoint it’s the strongest month of 2014.” At their head office in Austria they also register an “overproportional high level” of revenue.

The recent acceleration in demand didn’t pass by Degussa Goldhandel either. “With reference to the regular business with investors this month will certainly be the best so far YTD,” CEO Wolfgang Wrzesniok-Roßbach told Goldreporter upon request.

A response from the precious metals dealer Pro Aurum in Munich was still pending by the time this article was published.

What is being purchased?

Predominantly gold. At Münzland’s 60 percent of the business are appointed to standard gold coins, in particular 1 oz. Maple Leaf and Australian Nugget. Silver represents only 35 percent of sales, Rene Lehman says, mainly including Maple Leafs and the new Australian Lunars. The rest was mainly invested in 50 and 100 gramme gold bullion.

Furthermore, Coninvest reports a brisk demand for half-antique and historic gold coins. Apart from British Sovereigns and Swiss Vrenelis there also is demand for Willem- and Wilhelmina-Guilders from Netherlands. According to Daniel Marburger this is partially granted to the design of their new webshop. 20 gramme gold bars also made very good sales.

At Philoro gold sales prevail as well. Their own brand gold bars at 250, 100 grammes and 1 oz., as well as Krugerrand gold coins are the most popular investments. In Austria the Vienna Philharmonic gold coin is their best-selling investment product.

At Degussa-branches the main demand is gold as well. According to Wolfgang Wrzesniok-Roßbach the Krugerrand has a market share of 50 percent among gold coins. Besides that, they are pleased with the success of their Degussa Gold- and Silver-Thaler. Although these are more interesting for numismatists, some of the limited editions are already sold out. Sales in Silver haven’t considerably recovered this year though.

Why do Investors buy now?

Dominik Lochmann explains: “On the one hand there is the historical low level of interest rates, which open up alternatives for investments, especially with the current currency policy of Mister Draghi. On the other hand there are the three major crises receiving full coverage in the media, Ukraine, ISIS and Ebola, which cause higher wants for security on investors. On top of that, especially in comparison to the increased broad money, the rather reasonable gold and silver prices are quite an invitation to enter the market or stock up.”

The boss of Degussa has a similar perspective: „The increase this month was certainly based short-term on the latest decline in prices. Clients are very well informed about prices nowadays and take advantage of slumps to buy.”

Since the yearly high at $ 1,380 in March the price of gold recently declined to a new yearly low at $ 1,215 (Deutsche-Bank-indication), which corresponds to a 12 percent decline. Compared to that, the consolidation in price of 5 percent for the same time period in Euros appears to be rather moderate.

DeaconBenjamin · Sep 26, 2014 - 10:45pm

Central banks: No more plans to sell gold

Today marks the last day of the third Central Bank Gold Agreement and next week the beginning of the fourth one. In the statement from the signatories the big difference is that there are no more plans to sell gold. Essentially, their sales have been completed. They repeat that gold remains an important element of global monetary reserves. This Agreement will be reviewed after five years. So, no overhang of central bank gold sales over the gold price!

DeaconBenjamin · Sep 26, 2014 - 10:48pm
Spartacus Rex · Sep 26, 2014 - 11:20pm

@ Mr. Fix: Ahh, perhaps you overlook the M.O. of the Banksters?

They always play both sides, believing that way they cannot lose! Ergo, just as they control both the Repubs & Dems political hierarchy and selection process, they continue to milk the IOU printing presses, to fund their Military Industrial Complex which carries out their "Foreign Policy" to cram FRN fiat as a "reserve" for the rest of the world's trading participants , while they are already in control of the IMF, which is conveniently waiting in the wings with the Banksters' "SDR world currency" replacement.

The Banksters are "banking" on the outcome that the sheople are too dumbed down at this point to realize the simple "other alternative" of using lawful money gold and silver Coins, ie actual "$" , and simply adjusting "prices" accordingly, because that only requires, wait for it, commonsense!



I suppose that when the sheople finally wake up from their fiat induced stupor, and recognize that the "$" actually represents the U.S. Dollar as it is defined in Law, even when that symbol appears on IRS Tax Returns, and since the vast majority have never even received an actual $ / Dollar ever in their entire lifetime, let alone bother to discover how many fiat FRN Debt Obligations/ IOU Coupons must be redeemed in order to acquire an actual $ / Dollar, much less acquire enough actual $ / Dollars to even be required to file a Return.

FACT: FRNs are NOT $ / "Dollars", and I don't care how many Idiots think or "say" otherwise. They are merely Obligations / IOUs/ Claims for actual $ / Dollars, and dishonored ones at that!

These are examples of what meets the lawful, legal, statutory definition of actual U.S. $/ Dollars:





Gee, and how many "$ / Dollars" in "Income" is One able to acquire before legally being required to even file a Return? Well for 2013 the IRS provided the answer:

IF your filing status is...

AND at the end of 2013 you were...*

THEN file a return if your gross income was at least...**


under 65


65 or older


head of household

under 65


65 or older


married, filing jointly***

under 65 (both spouses)


65 or older (one spouse)


65 or older (both spouses)


married, filing separately

any age


qualifying widow(er) with dependent child

under 65


65 or older


* If you were born before January 2, 1949, you are considered to be 65 or older at the end of 2013. 

So how many actual "$ / Dollars" did anyone imagine they actually received last year?

How many herein care to claim that they were able to redeem their fiat FRN IOUs /Coupons straight across at face value into actual "$ / Dollars", like so many who imply such without actually thinking, every year when they sign their 1040 forms "under penalty of perjury"?

We are all born ignorant, but one must work hard to remain stupid. Benjamin Franklin

No kidding Ben, it is much simpler to utilize 12 USC 411, take the write off provided under Title 26 and give the counterfeiting Banksters the One Finger Salute!

It is the common fate of the indolent to see their rights become a
prey to the active. The condition upon which God hath given liberty
to man is eternal vigilance; which condition if he break, servitude
is at once the consequence of his crime and the punishment of his
guilt. John Philpot Curran (1750-1817)

If there is no struggle there is no progress. Those who profess to favor freedom and yet deprecate agitation are men who want crops without plowing up the ground; they want rain without thunder and lightning. They want the ocean without the awful roar of its many waters.

This struggle may be a moral one, or it may be a physical one, and it may be both moral and physical, but it must be a struggle. Power concedes nothing without a demand. It never did and it never will. Find out just what any people will quietly submit to and you have found out the exact measure of injustice and wrong which will be imposed upon them, and these will continue till they are resisted with either words or blows, or with both. The limits of tyrants are prescribed by the endurance of those whom they oppress.

Frederick Douglass, "If There Is No Struggle, There Is No Progress"

Leviticus 19:36; Deuteronomy 25:15-16
Proverbs 20:10;23

Proverbs 4:7

Cheers, S. Rex

Hammer Spartacus Rex · Sep 26, 2014 - 11:23pm

A Lady never tells

Submitted by Spartacus Rex on September 27, 2014 - 7:49am.

Hat Tip!


Yes we know, but are you wearing a tielaugh Cheers, S. Rex

A Lady never tells kiss

Spartacus Rex · Sep 26, 2014 - 11:35pm

@ Hammer...

Who was asking the "Lady"? laugh

Mr. Fix · Sep 26, 2014 - 11:44pm

Do any of you guys know how to Become a “gold member”?

I'm looking around the site right now trying to figure out how to become “a gold member subscriber”, you would think there would be a great big “subscribe now” icon somewhere, but I can't find it.

It says in in the donation part of “Feed the Turd" that donations are separate from the subscriptions.

Any ideas? Somebody gave me a months membership last month, but I've only got two days left.

I don't know how to renew it.

I would hate to lose my mailbox.

Spartacus Rex · Sep 26, 2014 - 11:57pm

@ Fix...

Email TF, he can give you the options for the payment which best suits your purposes. Cheers, S. Rex

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Key Economic Events week of 12/17

12/17 8:30 ET Empire State Fed Manu.
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12/19 8:30 ET Existing Home Sales
12/19 2:00 ET FOMC Fedlines
12/20 8:30 ET Philly Fed
12/21 8:30 ET Q3 GDP final guess
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Key Economic Events week of 12/10

12/11 8:30 ET Producer Price Index
12/12 8:30 ET Consumer Price Index
12/13 8:30 ET Import Price Index
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Key Economic Events week of 11/26

11/27 9:00 ET Case-Schiller home prices
11/27 10:00 ET Consumer Confidence
11/28 8:30 ET Q3 GDP 2nd guess
11/28 10:00 ET New home sales
11/29 8:30 ET Personal Income and Spending
11/29 10:00 ET Pending home sales
11/29 2:00 ET November FOMC minutes