Gold should logically be priced at a premium to pre-crisis levels to reflect the increasing inevitability of future monetary hyperinflation. That figure today would be somewhere above $1860, which is the equivalent of the price in July 2008. Instead it stands at a discount of 32% to its pre-Lehman level, and therefore appears to be grossly under-priced.
The Senate has apparently cobbled together a deal that will end the government shutdown and boost the debt ceiling -
history often repeat itself -
Price of gold after the 2011 debt ceiling deal was struck:
the debt ceiling extension agreement on August 2nd 2011, gold surged another 17% in 15 trading days after the agreement was reached.
From August 1st to August 22nd, gold rose from $1,619/oz to over $1,900/oz.
Why did gold rally, when the threat of a default was gone? It's because the statutory debt ceiling is more a target than any real cap on debt.
On August 3, 2011 the national debt of the United States surged $238 bln.
It was the largest one-day increase in the history of the United States, sending the debt to GDP ratio over 100% for the first time since World War II.
In a day, 60% of the new debt ceiling clearance was already gone. On August 5, Standard & Poor's lowered the credit rating of the United States from AAA to AA+.
The Budget Control Act of 2011 allowed the debt ceiling to rise in three incremental steps. The first was a $400 bln increase that began with presidential certification of the BCA. The second $500 bln increase occurred on September 22, 2011 and the third increase of $1.2 trillion on January 28, 2012 gave us a debt ceiling of $16.394 trillion.
There was a brief suspension of the debt ceiling between February and May of 2013 as part of the No Budget, No Pay Act of 2013. When the debt ceiling was reinstated, it had to be raised to the current $16.699 trillion level to accommodate debt accumulated during the suspension.
So here we are, butted up against the debt ceiling once again. And I don't know of anybody that's surprised by this reality.
Whatever the deal is that ultimately gets signed by the President, we'll have our new debt 'target'. And sure as God made little green apples, we will one day meet and exceed that 'target' as well.
Caledonia Mining quarterly output rises 4% By Ian Lyall October 07 2013, 7:59am
Caledonia Mining Corporation (CALVF, LON:CMCL, TSE:CAL) saw production grow by almost 4% quarter-on-quarter in the three months to September 30.
Output from its Blanket Mine in Zimbabwe was 12,042 ounces of the precious metal compared with 11,588 ounces in Q2.
Production for the nine months was 34,103 ounces, a 1.4% improvement on the same period last year.
Management has said previously Blanket is on course to produce around 44,000 ounces in 2013, which would be 10% higher than the previous guidance of 40,000 ounces. Monday’s update suggests it will meet the revised target.
Goldcorp Inc. Investor Presentation Now Available for On-demand Viewing at RetailInvestorConferences.com Company invites individual and institutional investors to log-on to view presentation NEW YORK, Nov. 11, 2013 /CNW/ -
Goldcorp Inc. (NYSE: GG, TSX: G) today announced that their November 7th RetailInvestorConferences.com presentation is now available for on-demand viewing.
Goldcorp's presentation will be available for 90 days. Investors may download shareholder materials from the "virtual trade booth" for the next three weeks.
About Goldcorp, Inc.:
Goldcorp Inc. (NYSE: GG, TSX: G) is a leading senior gold producer with eleven low cost operations and three development projects located in politically stable jurisdictions throughout the Americas. The company strives to deliver sustainable prosperity to all its stakeholders and remain firmly focused on the elements that continue to drive its success which includes a focus on quality ounces, cost management, strong balance sheet, developing operations in low-risk jurisdictions and a commitment to sustainability.
Goldcorp is dedicated to responsible gold mining practices and is committed to contributing positively to the sustainable prosperity to all its stakeholders. This means working to conduct its business in a way that ensures lasting social progress and economic growth for individuals, families, communities, partners and the future of Goldcorp.
About RetailInvestorConferences.com:
Since 2010, RetailInvestorConferences.com has been the only monthly virtual investor conference series that provides an interactive forum for presenting companies to meet directly with retail investors using a graphically-enhanced online platform.
Designed to replicate the look and feel of location-based investor conferences, Retail Investor Conferences unites PR Newswire's leading-edge online conferencing and investor communications capabilities with BetterInvesting's extensive retail investor audience network.
SOURCE Goldcorp Inc.
Goldcorp Inc., Lynette Gould, Director, Investor Relations, Lynette.gould@goldcorp.com, 1-800-567-6223, or RetailInvestorConferences.com, Bradley H. Smith, bradley.smith@prnewswire.com, +1.201.942.7157
Gold stocks are now a much better leverage on investment dollars than gold – especially producers with a low production cost - because their earnings significantly increase - as the price of gold goes up. When gold moves higher, look for gold stocks to - regain some significant ground -
Here are the 30 reasons, 23 new and 7 set in cement, of why the Bear phase in the bull market for gold ends this summer without any new lows.
1. The New definition of warfare is economic. Sanctions against Russia and the implications for the Petrodollar
2. FACTA and the universal long arm of the US government via any transaction internationally that passes even momentarily through the dollar as a contract settlement mechanism. The negative implications for the dollar’s future as a contract settlement mechanism internationally.
3. EU split over sanctions due to Russian energy demand and Russian business interests.
4. Middle East Western Hegemony and Arab Spring is defunct.
5. Iran to assist in Iraq if asked, which is the failure of "Misssion Accomplished."
6. Iraq oil production challenged by ISEL.
7. Kurds emboldened by ISEL.
8. US relationship with Saudi Arabia and Qatar is strained.
9. BRICs uniting economically and politically as a standalone force.
10. China expands Yuan/Renminbi as an international currency.
11. China’s China Sea energy tensions with Japan and Vietnam.
12. USA’s position on the China Sea crisis where Japan is concerned.
13. The militarization of Japan.
14. The distinct scent of inflation.
15. General dissatisfaction with answers to questions to Chair Yellen regarding FOMC meeting last week
16. IMF reduced expectations of US economic recovery.
17. US Zombie Banks as defined by banks leveraged generally 30 to 35 times the size of their capital of total OTC derivative exposure.
18. Condition of the flooded municipal bond market.
19. Decline in volume with rise in value of equities, making equity price shadows our reality.
20. Totally irrational exuberance driven by hyper liquidity.
21. Hyper liquidity can become hyper inflation via the velocity of money in a crisis of confidence of the dollar. Therefore hyperinflation will be a currency motivated event.
22. Reaction in the momentum equity leaders of the last 2 years burning a public.
23. Strength of the utilities group which has historical attachment to tops in equity markets.
Old problems:
24. The one quadrillion, one hundred and forty four trillion dollars real size of the OTC derivatives market.
25. Economic underpinning of the dollar in jeopardy as recovery sputters globally
26. Absurd size of the Fed balance sheet and lack of marketability of significant size legacy derivative positions.
27. Taper of QE and little Belgium to the QE rescue.
28. China and Russia on the sell side of the US treasuries.
29. MY RA exposes consideration of invasion of retirement accounts, and GOTS (Get out of the system) as a defense strategy.
30. The huge drop out of the labor pool in the US, making empl
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