$1,764

8:58 am (Hawaii) Now that $1,764 — Jim Sinclair's level and entry way to exponential rise in spot gold price — has been breached, a look again at James Turk's interview of Sinclair. This was done on Aug 7 at GATA in London. This is the long (10-minute) version, a classic exchange between two financial gurus who understand the value of real money.

Gold's high tonight (so far) has been $1,773.

Weekend cinema & library (updated Sun 10 am HST)

Hanalei Rice Mill

6:07 pm (Hawaii) DOWNGRADED! Big news or late news? Seems big to me, though the anticipation of a downgrade by S&P of the US wasn't high.

Standard & Poors: USA long-term rating lowered to 'AA+' (Aug 5)

Los Angeles Times: S&P downgrades US credit rating (Aug 5)

Zero Hedge: S&P downgrades US to AA+, Outlook Negative (Aug 5)

Paul Krugman: S&P and the USA (Aug 5)

Update 6:53 pm Reading Reggie Middleton for the first time in many months is an eye opener. His expertise with options is phenomenal, but coupled with his analysis of banksters and flawed economic policy, it's remarkable to read. (Too bad I don't trade options.) In fact, I have questioned myself for doubting myself. I'm wishing I'd kept a small position in FAZ today, even at 62 or 63. There's a possibility I'll be able to get back in at that level, or even lower, early in the coming week if Bernanke says nothing to curb market fears when the FOMC meets on Tuesday.

Otherwise, it's a long 17 days after that until Jackson Hole.

Here's what Middleton says about the probability of Euro bank runs in the very near future. It's enough to make me want to move my little sacks of moola out of my local bank first thing in the morning. Because of him, I have learned a new, terrifying word: Eurocalypse. I have little doubt that when bank runs seize Europe, fear in the US will start to simmer and then boil, and it'll be a wicked time for those of us who aren't willing to trust Uncle Sam. We might still have time to get our fiat currency out, but one minute too late and the lines will be out the door, and things will be ugly when these domestic banks tell us all they don't have the dollars on hand, in the vault, to satisfy our demands.

It might never happen. But this is getting uglier by the day and I'd rather be a fool holding his cash and metal for safekeeping than see it all disappear in a shitstorm.

More from Reggie Middleton

Reggie Middleton: ECB as European lender of last resort (Aug 5)

RT: Snow globe of denial, Reggie Middleton (May 17)

> Middleton on Bernanke, EU, US and China at 21:00

Reggie Middleton: The potential of a Euro banking crisis (Apr 14)

Reggie Middleton: As the world turns, the contagion spreads (Aug 5)

Update Sat 6:10 pm (Hawaii) So is this what Joe Biden meant when he stirred the pot nearly two years ago?

ABC (video): Joe Biden: Mark my words, international crisis if Obama wins (Oct 20 2008)

ABC (blog): Biden to supporters: 'Gird your loins,' for the next president, it's like cleaning Augean stables (Oct 20 2008)

Update Sun 7:10 am (Hawaii) Just posted by Gold Money News, an interview by James Turk of Jim Sinclair at the GATA Conference in London. Must see. Click here.

Update Sun 9:20 am (Hawaii) One of the better interviews of Peter Schiff I've seen right here. The interviews by Silver Circle are a refreshing change: No time constraints or ridiculous denials by opposing voices. Also, a "lightning round" Q&A by Silver Circle with Schiff here.

Video

(new) MSNBC: Greenspan on Meet the Press (Aug 7)

> Greenspan enters 25:25

RT: Jim Rogers (Aug 5)

ABC Australia: Jim Rogers (Aug 5)

Bloomberg: David Beers, head of S&P sovereign credit ratings (Aug 6)

Bloomberg: Roubini: Jobs number was 'pretty lousy report' (Aug 5)

Bloomberg: Marc Faber (Aug 4)

(new) SilverCircleMovie: Interview with Kevin Innes - Liberty dollar 'criminal' (July 1)

ABC Australia: Clarke, Dawes ask million-dollar questions (May 22)

(new) Silver Circle: Q&A with Peter Schiff (Feb 24)

(new) Silver Circle: Peter Schiff interview (Feb 17)

(new) Fox: US finds $1 trillion in mineral deposits in Afghanistan (June 14 2010)

Vlogs

(new) pdlumina: Israeli markets crash, trading halted within minutes! (Aug 7)

(new) GoldMoneyNews: Jim Sinclair interviewed by James Turk (Aug 7)

(new) Alexiscom1: $100 silver bullion in 2011, US Euro AAA debt crisis (Aug 7)

(new) endlessmountain: Silver log - Technical analysis (Aug 7)

(new) theeastwatch: Rabbits and garden update (Aug 7)

(new) namone11967: Online coin stores gearing up w/ higher spot prices (Aug 6)

(new) Tony Sagami: China downgrades and tongue lashes US debt (Aug 6)

1beinki: 10 trillion dollars to fund my savings account (Aug 6)

Peter Schiff: S&P AA+ rating on US debt not low enough (Aug 6)

College Humor: E-Trade baby loses everything (Aug 6)

slim2open: Hilarious commercials! (Aug 6)

SafeArmsReview: Debt, dummies, the coming collapse and you (Aug 6)

ScrapGoldBusiness: Gold killing the value of diamonds? (Aug 6)

endlessmountain: Investment classes by the numbers (Aug 6)

BrotherJohnF: Silver update - Black Monday and silver algos (Aug 5)

Jim Comiskey: Daily market insights - metals futures (Aug 5)

silverfuturist: Silver down compared to what? (Aug 5)

SGS: Part 7: The EPIC weekend has arrived (Aug 5)

michaelsam9: Last great naked silver short starts (Aug 5)

(new) SilverCirleMovie: Max Keiser in NYC (Aug 5)

(new) GoldMoneyNews: James Turk interviews Eric Sprott (Aug 4)

(new) Larry Edelson: Which markets to touch, and which to avoid... (Aug 4)

> Gold to $7,700; silver very dangerous, will move to 42-43, then collapse to 28-30.

BrotherJohnF: Silver update - Deflation scare redux (Aug 4)

SGTbull07: James Anderson: Greatest wealth transfer in history (part 1) (part 2) (Aug 4)

Freedomain Radio: The short, unhappy lives of fiat currencies (Aug 3)

Rick Rule: Cash will give you the courage (May 11)

Audio

(new) Debt Deflation: Steve Keen debate with Chris Caton (Aug 7)

(new) Jim Puplava: Interview with Bert Dohmen - Gold should be over $9,000/oz (Aug 6)

King World News: Weekly metals wrap with Bill Haynes, Dan Norcini (Aug 6)

King World News: Jim Rickards (Aug 6)

King World News: Doug Casey (Aug 6)

King World News: Rick Rule (Aug 5)

Blogs

(new) Zero Hedge: G7 preparing statement to support dollar, EU before Asia open (Aug 7)

(new) Turd Ferguson: Re: Tonight. I have no idea. (Aug 7)

(new) Zero Hedge: S&P explains why the '$2 trillion error' is irrelevant (Aug 7)

(new) Zero Hedge: Citi battens down hatches, prepares for global risk offenses in a few short hours (Aug 7)

(new) Zero Hedge: Apmex on hiatus until Asia open (Aug 7)

> From Apmex.com: *Attention - Due to the uncertainty in the global precious metals markets, we will not be able to accept any additional orders until the global markets re-open in Asia. We expect to be accepting orders around 6:15 pm EST, Sunday August 7th, 2011, following the market open.

(new) Silver Shield: Apmex warning (Aug 7)

(new) Silver Shield: Retire off of $30,000 (Aug 7)

(new) Alasdair Macleod: Keynes vs Hayek (Aug 7)

(new) Brandon Smith: America 'makes the cut' - so what happens next? (Aug 7)

(new) Jesse's Cafe Americain: It's the unfunded wars, financial fraud and unwillingness to reform (Aug 7)

(new) Debt Deflation: Steve Keen debate with Chris Caton (Aug 7)

(new) Luc Vallee: The two faces of China (part 1) (Aug 7)

(new) Harvey Organ: S&P downgrades USA debt (Aug 6)

(new) Silver Shield: Turk, Sprott and silver (Aug 6)

King World News: Norcini - How S&P downgrade of US debt will impact markets (Aug 6)

> "I expect the reaction to the news in Asian trade Sunday evening will be the US Treasury markets open lower with gold opening higher from the get go."

SGS: Epic weekend news #3: Germany says, f--k it, Italy is on its own (Aug 6)

Zero Hedge: Germany says Italy is too big for EFSF to save (Aug 6)

Zero Hedge: Emergency meetings galore (Aug 6)

NIA: Shocked by S&P downgrade of US debt rating (Aug 6)

Gary North: The Yellow Fever Economy (Aug 6)

King World News: Jim Rickards - Who 'really' controls the gold (Aug 5)

Dan Norcini: Riding in the kangaroo pouch (Aug 5)

SGS: Epic weekend news #2: White House says, 'Go f--k yourself' to downgrade (Aug 5)

SGS: Epic weekend news #1: SP downgrades US debt (Aug 5)

Sean Hyman: US govt could take 14% of your wealth... overnight (Aug 5)

Zero Hedge: S&P downgrades US to AA+, Outlook Negative (Aug 5)

Scott Blier: What's it gonna be, near-term? (Aug 5)

> Chart: QE2 rally

SGS: W>T>F>is>this? (Aug 5)

Turd Ferguson: (pm) Three weekly charts (Aug 5)

Le Fly: (pm) What does it all mean? (Aug 5)

Le Fly: (pm) The bottom is in (Aug 5)

Le Fly: (pm) New plan (Aug 5)

Turd Ferguson: (am) Post BLSBS (Aug 5)

Intel Hub: Costly US power grid tests approved without public consent (Aug 5)

(new) Roman Baudzus: Greek central bank adds to gold reserves (Aug 4)

Dan Norcini: Extreme volatility in gold as market digest rumors (Aug 4)

Reuters: Italy says Asia asking why ECB isn't buying bonds (Aug 4)

Turd Ferguson: It has to be said, so I'll say it (Aug 4)

Turd Ferguson: Overnight and tomorrow (Aug 4)

Le Fly: On second thought, today was not my worst day (Aug 4)

Washington's Blog: The average life expectancy for a fiat currency is 27 years (Aug 2)

Jack Barnes: The $1 billion Armageddon trade placed against the US (July 25)

Blog commentary

stingbee30: In these environments, you need to throw away the technicals (Aug 7)

GoldistheFuture: Jim Sinclair: 'This will result in producing gold mining shares becoming the utilities of 2016 onward' (Aug 6)

pailin: FU Italy :) (Aug 6)

Reports

(new) Bloomberg: Big foreign buyers likely to stick with Treasuries (Aug 7)

(new) Bloomberg: Greenspan sees stocks falling after S&P cut (Aug 7)

(new) Bloomberg: G-7 finance chiefs talk amid Euro, US turmoil (Aug 7)

(new) Bloomberg: Muni market prepares for lost AAA ratings (Aug 7)

(new) Bloomberg: Israeli stock index tumbles most since 2000 (Aug 7)

(new) Bloomberg: France's AAA rating may be vulnerable (Aug 7)

(new) Bloomberg: Dubai shares drop most since February (Aug 7)

(new) Bloomberg: Japan official warns of more yen selling (Aug 7)

(new) Standard and Poor's: Clarifies assumption used on discretionary spending growth (Aug 6)

AMEinfo: Saudi market crash raises fears over domino effect in GCC (Aug 6)

Reuters: China blasts US over debt problems (Aug 6)

Reuters: World leaders confer on debt crisses this weekend (Aug 6)

US Dept of Treasury: Just the facts: S&P's $2 trillion mistake (Aug 6)

Reuters: Fund managers see tough times for Treasuries (Aug 5)

Xinhua: NATO planning military campaign against Syria: Russian envoy (Aug 5)

Los Angeles Times: S&P downgrades US credit rating (Aug 5)

WSJ: Gold: JP Morgan 'loves' it big time (Aug 5)

WSJ: Italy speeds its path to balanced budget (Aug 5)

ABC: Govt officials: US expecting S&P downgrade — based on 'serious mistake' in analysis (Aug 5)

(new) MarketWatch: Harry Schulz's last testament (Jan 10)

(new) ABC: Not-so-safe deposit boxes: States seize citizens' property to balance their budgets (May 12 2008)

Metal bling

richardbask4321: Silver collection 153 oz (Aug 6)

Metal shop

(new) DelValleySilver.com: Silver Circle Movie round (Aug 7)

> Also, DVS silver token (1 oz)

They can't milk gold and silver dry this time

12:54 pm (Hawaii) Charts and ETFs don't mesh often times, but with Spot Silver and Gold prices locked in a range, it's possible, just possible that we see certain patterns remain for the coming weeks.

• ZSL has run from 17 to 19+, back to 17, and up to 19.58, all in the past two weeks.

• DUST ran to 52, down to 44, then up to 48.92 since June 16.

• QID went from 54 to 57, back to 54, up to 56 since June 14.

• MCP pure kookoo in two weeks. 46 to 52 in two days, then down to 47 and up to 54 in another two-day span. then 52 to 56 between yesterday and today. It's one of those you can trade like a madman, or just pocket it and forget about it for a year. Rare earths are here to stay and the Chinese are going to make sure supply (they control 97% of the stuff) is limited.

• Other rare earth princes like REE have been roller-coaster nauseating. REE went from 9.00 to 11.40 in two days. Sank to 9.40, rode up to 11.10 and is at 10.67 after hours today. All in two weeks.










• Puppet masters knocked gold down as it was about to break to new highs, which means DZZ went from 6.35 to 6.89 since Wednesday. Same move for GLL, from 22.40 to 24.12 in the same time frame.

• FAZ is hovering between 46+ and 52. As more and more banksters (and insurance companies) announce huge writedowns and losses in the coming weeks due to Euro debts, fear of bank collapses and closings should drive FAZ much higher. Nothing would surprise me, though, including some devious plan that would keep the banksters solvent and maintain their current levels of stock price and Monopoly currency.

• JJC, the copper subindex ETN, has been stuck between 53 and 55. Currently 53.83. If stagnant, almost predictable action is your thing, let 'er rip. China's not coming to a complete standstill anytime soon.

• AGQ is a sight. From 165 to 186 in steady action for almost two weeks, then blindsided by the CME mafia the past two days. By CME mafia, I do mean all the powers that manipulate the "Free Market" of commodities, such as crude oil. I am NOT for blatant naked shorting, but I don't see the point of kneecapping any price discovery, especially when the LONG-TERM effect will be negligible at best.







Same goes for all the silver plays that were hammered the past two days, even though MINERS SHOULD BE GAINING DUE TO DECREASED ENERGY COSTS! It's mind boggling to see it all play out. I'm not advocating a full swan dive into miners (gold and silver) here, but AGQ is among many  metal plays now near YTD lows. At 160, AGQ is only a couple of bucks higher than its low a month ago.

It all comes back to what Mike Maloney has said for years and years: The Fed, that private entity that runs our finances, may not have any gold and silver in its vaults. Meanwhile, central banks across the globe have wizened up in recent years and started to accumulate mass quantities of metals to hedge against their valueless US fiat currency/IOUs. So how does the Fed respond? By holding gold and silver hostage.

It ain't pretty. They've got one, maybe two bullets left and they're up against Justice. You can't fuck over the world this long, borrow to the hilt, and not pay back WHILE STILL ASKING FOR MORE FUNDS TO BORROW. It would be best to restructure and concede rather than drag out the hostage crisis. By doing this to us, the Fed and banksters are simply prolonging the inevitable. I have no doubt that they are personally stocking up on all the gold and silver they can at these levels, and I would not be surprised if this is also a way to benefit all our debt masters, particularly China. This gives them ample opportunity to stock up at low prices.

Meanwhile, the value of the dollars we make by working every day (if we have jobs) is eroding by the day. A fucking candy bar at Safeway costs $1.29 now. This is like shopping for snacks at the movie theater. It's just getting worse. And it's been far worse in other countries for a much longer time.

I am not sweating the decline of spot price. I am just anxious to buy at the best discount I can get. That might come on Monday in two weeks or two months, but it's coming. I'm loading. I'm stacking. I'm not waiting for my bank to re-open after some strange "inventory" closing when one of our debt masters calls our bluff at the poker table. I think some of the experts are right. Jeff Christian is probably right when he says silver will drop to 26, then go up, up, up from there late in the year. Jim Sinclair is probably right when he says silver will rocket this year. Maybe not this summer, but eventually, yes.

By then, it won't be a question of how much we paid to protect our assets. It'll be a matter of how much protection we accumulated. I feel for the hard-working folks who were stretched to the limits, but there are also a lot of lazyass bitches who borrowed off their credit cards to the hilt. They bought stuff they couldn't afford for decades, and I'm not about to let them get me again. If they aren't ready this time, that's their effing problem.

Denise Milani

Sunday Night Library

From Endless Mountain: "SLV options expire on the exact same date (as the end of Forex.com precious metal trades by US traders) on July 15, 2011 where the widely announced options for $25 were placed which was essentially a wager for a market crash in Silver."

(video) Endless Mountain: Silver Log - July Convenience (July 18 2011)

(video) Stellaconcepts: Could 'metal bugs' be wrong (June 19 2011)

(video) Brother John F: On Bix Weir reaction to end of OTC precious metals trading at Forex.com (June 19 2011)

(video) Survive & Thrive TV: Record high $13,500 per acre in Iowa (June 19 2011)

(video) MoneyBags73: Sinclair predicting $12,500/oz gold price (June 19 2011)

Neowin.net: Bitcoin market hacked, crashes to below $0.01 per bitcoin (June 19 2011)

(video) The Weekly Telegram: The Bitcoin dream has officially ended (June 19 2011)

Thursday Night Library

Bibliosphere rendering

2:11 pm (Hawaii) Just back from some fun stuff on an overcast, windy afternoon in the islands. It's gratifying to actually enjoy being outside without a care in the world, at least for an hour or two. Now, time to catch up with the market, precious metals and bullion prices.

James Turk interviewed by King World News today:

"...the strong bounce we saw after the test early in the morning, people are now starting to recognize that 35 is solid (on silver), 1520 on gold is solid, and I think you're going to see people piling in on the long side from here. ... This is going to be a spectacular summer. It's not going to be like most summers where gold grinds and goes sideways. This is going to be more like 1982 where the gold price and silver price soar because of extraneous news events, and I think that comes from Europe. ... Bullish sentiment is low, that means people are out of the market, which means it's time to buy. ... The correction, I think, is finished."  

(audio) James Turk: '35 on silver is solid, 1520 on gold is solid' (June 16 2011)
Turd Ferguson: Heed the mavens (June 16 2011)
Jim Sinclair: 'You're out of your mind if you sell gold assets now' (June 16 2011)
(audio) King World News: Jim Sinclair (June 16 2011)
Zero Hedge: Greek ruling party mutiny (June 16 2011)
Zero Hedge: CME lowers gold margins (June 16 2011)
Zero Hedge: UK preparing to return to 'Glass-Steagal' (June 16 2011)
(video) Max Keiser, James Turk: Fiat money inflation in France (part 1): John Law (June 15 2011)
(video) Max Keiser, James Turk: Fiat money inflation in France (part 2): Assignats (June 15 2011)

Thursday Night Library

Today's big bounce (on light volume) in silver is curious. Tomorrow (Friday) is precious metals options expiration. Careful out there.

Golden Jackass: US hurtles toward system failure (June 9 2011)
Jim Sinclair: Gold to exceed $12,500 to balance debt (June 8 2011)
(audio) King World News: Jim Sinclair (June 8 2011)
Zero Hedge: Record number of people have taken out loans against 401k plans  (June 9 2011)
Zero Hedge: US Treasury burns $90 billion in 8 days (June 9 2011)
Silver Gold Silver: Graph on unemploment correlation to recessions (June 9 2011)

Jim Rogers, Part 1 (June 9 2011)


Jim Rogers, Part 2 (June 9 2011)


BigDad06 telling it like it is, as always.