Intervention in Precious Metals - Mid-East Threat

The boyz are baaaaaaaaaaaaaaack! They hit both of our precious metals yesterday and again today. I was wondering when they would return, and here they are. The graphs make it very obvious that intervention was in control and far from normal market activity. This took big bucks type of manipulation. Silver was slaughtered and gold slammed.


This is providing another buying opportunity in the miners. I have been buying DROOY at under 5; FVITF below 2.10; and BYDDF below 9.15. Am currently looking at Harmony (HMY) below 9.50. You make your own decisions, but I am interested in taking this opportunity to increase my holdings.

From TownHall.com:

Black Americans and Liberty

by Walter E. Williams

Having recently reached 74 years of age, if one were to ask me what's my greatest disappointment in life, a top contender would surely be the level of misunderstanding, perhaps contempt, that black Americans have for the principles of personal liberty and their abiding faith in government. Contempt or misunderstanding of the principles of personal liberty and faith in government by no means make blacks unique among Americans, but the unique history of black Americans should make us, above all other Americans, most suspicious of any encroachment on personal liberty and most distrustful of government. Let's look at it. Read it HERE.

From GATA.org:
China, the gorilla in the Third Gold War Submitted
by cpowell on Wed, 2010-05-05 00:27.

8:19p ET Tuesday, May 4, 2010

Dear Friend of GATA and Gold:

MineWeb's Lawrence Williams tonight describes a fascinating new issue of Paul Mylchreest's occasional financial letter, the Thunder Road Report, which explains what Mylchreest calls the "Third Gold War."

Williams reports:

"Mylchreest reckons we are now in the 'Third Gold War' since the Second World War and this is being waged between the United States in conjunction with other Western countries/institutions, notably the International Monetary Fund, and various opposing sectors worldwide. In his contention, the United States and its allies lost the first of these 'gold wars' to the French (then under De Gaulle) and the second to the Middle East, helped significantly by the then-pro-gold stance and purchasing power of the German Deutsche Bank. Read it HERE.

From MineWeb.com:

Global miners oversold, looking for value hunters

The recent ferocious sell-off, on Australia's audacious tax plan, may have been overdone.

Author: Barry Sergeant
Posted: Tuesday , 04 May 2010

JOHANNESBURG -

Measured on a 12-month rolling price return basis, global mining stocks have been pushed back to levels seen a year ago, on general profit taking, exacerbated in recent days by Australia's "future tax system" report, published over the weekend.

London-listed transnational miner Xstrata, which operates significant mining assets on the continent, was one of many companies to react, with its CEO, Mick Davis, saying in a statement that: "It is very disappointing that the Australian government is planning to impose additional taxation that will see Australia levying the highest taxes on its minerals sector of any country in the world". Read the article HERE.

From Bloomberg.com:

Greek State Workers Escalate Protests at Budget Cuts

May 4 (Bloomberg) -- Greek government workers shut down schools and hospitals and disrupted flights as demonstrators occupied the Acropolis in an escalation of protests against 30 billion euros ($40 billion) of additional wage cuts and tax increases unveiled this. Read it HERE.

From Emirates Business:

Commercial banks buy gold to meet demands

Dealers claim regional banks are stockpiling gold for clients who want their deposits saved in the yellow metal.

By Shahsank Shekhar

Published Wednesday, May 05, 2010

Commercial banks are buying gold to meet the demand of clients who want their deposits saved in gold, commodity dealers said.

With the currencies in the GCC pegged to the volatile US dollar, local banks have all the more reasons to buy gold, local gold dealers emphasised.

On the other hand, senior Dubai-based bankers affirmed they have been considering meeting the demands of their customers to back the deposits with gold.

The dealers, however, declined to name the banks they have been supplying gold to. Read the article HERE.

From NYTimes.com:

Europe's Web of Debt

Banks and governments in these five shaky economies owe each other many billions of euros — converted here to dollars — and have even larger debts to Britain, France and Germany. Arrow widths are proportional to debt amounts. Read it HERE and see a great graph.

From GATA.org:

Another mysterious IMF gold sale -- plugging the London leaks?

Submitted by cpowell on Tue, 2010-05-04 23:54.

8:05p ET Tuesday, May 4, 2010

Dear Friend of GATA and Gold:

Another unexplained sale of gold by the International Monetary Fund turned up today in another Reuters story based on another statement from the World Gold Council.

This time the sale is said to have been 18.5 tonnes unloaded in March. Two weeks ago the WGC reported that the IMF had sold 5.6 tonnes in February. Read it HERE.

From Kitco.com:

Gold Under Selling Pressure as U.S. Dollar Soars, Crude Oil Tumbles

By Jim Wyckoff
05 May 2010, 9:32 a.m.

Comex gold futures have come under renewed selling pressure at mid-morning Wednesday. The U.S. dollar index has extended its gains to hit another fresh 12-month high, while crude oil prices are sharply lower and have dropped below $80.00 a barrel. These two bearish "outside market" forces have worked to press the gold market lower on the day. Profit-taking pressure from recent gains is a market feature in gold again Wednesday. Television images of rioting in Athens, Greece, with three people reportedly killed in the rioting, is further unnerving investors worldwide. That is boosting the greenback and pressuring crude oil and other commodity markets. While no serious technical damage has been inflicted in the gold market at present, strong losses on Tuesday would dent near-term bullish enthusiasm and raise the spector of a larger-degree near-term price correction that could be at hand. Read it HERE.

Miners from Scottrade.com:
Currencies from Kitco.com:
Rumors of Israeli war on Iran are abounding. This would interrupt the supply of oil and make many rush to gold. Thus, we should expect that should Israel or US attack Iran, it would wreck havoc on financial markets to say nothing of the slaughter of people in the Mid-East. Pray that it does not happen!

Here are some early prices: BYDDF 8.88; FVITF 2.07; TBT 42.91; TLT 94.13; EXGMF 2.4636; Gold off 7.90 to 1165.70; silver off 0.56 to 17.30; DOW off 26 to 10899.

Folks, These are dangerous times with our pro-Muslim White House and the Mid-East frothing at the mouth. However, we rest in the fact that our God is in control and nothing can separate His people from His loving care and eventual prospect of joining Him in eternity. What a blessing this is for His people. Study His word and learn about man's sin problem and the only solution which is Jesus Christ our Lord.

Best to each, Doug