Gold & Silver Will Breakout to the Upside - James Turk

As per usual on Tuesday, I have a lot of stories, so I hope you have time to wade through them all. The first one is Reuters piece from this past weekend... and has to do with the big meeting in South Korea, where the Group of 20 major economies agreed on Saturday to shun competitive currency devaluations, but stopped short of setting targets to reduce trade imbalances that are clouding global growth prospects. The headline reads "G20 inks pact to avert trade war"... and the link is here. We'll see how long this truce lasts.

Here's a story that was sent to me by reader Scott Pluschau on the weekend. It's posted over at finance.yahoo.com... and the headline reads "7 banks closed in Fla., Ill., Kan., Ariz." That brings to 139 the number of banks that the FDIC has close so far this year... and another $450+ million dollar hit to the FDIC. I'll bet that there are around ten or twenty times that number that are really insolvent if all the facts were made known. The link to the story is here.

My column wouldn't be complete these days without some sort of story about the on-going trials and tribulations of the real estate market in the U.S. Here's a King World News interview with Chris Whalen on the whole foreclosure mess. There are no flies on this guy. I learned a lot from this interview... and even though it runs about fifteen minutes... it's well worth your time. The link is here.

Here's a really interesting story that I'm sure most people haven't given a thought to... this writer included. It's courtesy of Australian reader Wesley Legrand and is from last week's edition of The New York Times. The municipal bonds that help finance a major portion of the nation’s water supply may be riskier than investors realize, because their credit ratings do not adequately reflect the growing risks of water shortages and legal battles over water supplies, according to a new study. Food for thought... and even if you don't read the whole article, the photo that accompanies it is well worth looking at. The headline reads "Water Scarcity a Bond Risk, Study Warns"... and the link is here.

This next piece is out of the Sunday edition of London's Financial Times. One group working for the banks that is already feeling the harsh light of reform are proprietary traders, who are entrusted to place bets with their bank’s own money. Based on the banks’ initial changes, there seems little room for interpretation. These jobs, once celebrated for their mystique and potentially massive bonuses, will soon be obsolete. We are, of course, still waiting for that to occur in the precious metals market... as JPMorgan et al are still trading for their house accounts. The headline to this article, which is headlined "Proprietary traders weigh up new options", is well worth the read. I thank Washington state reader S.A. for sending it along... and the link is here.

Here's Scott Pluschau's second contribution to today's column. It's a piece from the finance.fortune.cnn.com website that's headlined "Goldman says Fed faces $4 trillion hole". Talk about 'shock and awe'... economists at Goldman Sachs estimate the Federal Reserve may need to buy a staggering $4 trillion worth of assets such as Treasury securities to get the economy rolling again. It's not a long article, but I consider it a must read... and the link is here.

As I pointed out last week, most times when the Fed has a POMO [Permanent Open Market Operation] where they give free money to the primary dealers to support the stock market, the stock market rises. Well Goldman Sachs has finally figured that out and has advised their clients to front-run the market accordingly. Here's a zerohedge.com piece sent to me by reader Peter Handley that bears the headline "Goldman Advises Clients to Front Run the Fed Via POMO". It's a short read... and the link is here.

The following Reuters story turned up as a GATA dispatch yesterday. The headline reads "CFTC takes aim at "runaway robotic trades": Chilton". If he and the CFTC take as much action on this as they do on the grotesque short positions in both silver and gold on the Comex, the High Frequency Traders don't have a think to fear from these guys. So far, the CFTC is all talk and no action on just about anything of real importance. The link to the story is here.

Before I get into my precious metal-related stories today, here's a graph of the U.S. M3 money supply that Nick Laird over at sharelynx.com was kind enough to provide yesterday.

My first gold-related story is from Sunday's edition of The Wall Street Journal. The headline pretty much says it all... "Advisers Try to Tame Investors' Appetite for Gold". Because the story is subscription protected, here is the GATA release which contains the entire story in the clear... and the link is here.

Next is a video interview with gold analyst Mark Leibovits that's posted over at Canada's Broadcast News Network that's well worth your while. Although most of his work is in technical analysis of the precious metals market... he's not blind to the other factors that are currently influencing [and will continue to influence] the price. Even though one of the interviewers turns devil's advocate, Leibovits runs right over her. The clip runs a bit over six minutes... and is a must watch [at least in my opinion]... and the link is here.

In an interview on Sunday night with Eric King of King World News, GoldMoney founder and GATA consultant James Turk stuck his neck out. The upward breakout in gold and silver and the gold and silver mining shares starts now, Turk said. This is a very short must read blog headlined "James Turk - Gold & Silver Will Breakout to the Upside"... and the link is here.

From our gold bug friends in the "land down under" comes news of a conference called The Gold Symposium that's to be held in Sydney on November 8-10th. James Dines is to be one of the big keynote speakers. So all you gold and silver enthusiasts that are in that area of Australia and wish to attend, can find out everything you need to know about it by clicking here.

Here's another King World News interview that Eric just slid into my inbox in the wee hours of this morning. It's another short blog that features my good friend John Embry, chief investment strategist at Sprott Asset Management in Toronto. It's not a long read... but it's a must read. It looks like something out of one of his speeches... or maybe a big quote from one of his monthly commentaries over at Investor's Digest of Canada. It's headlined "John Embry - Gold & Silver Commercial Signal Failure"... and the link is here.

My last precious metals story is your long read of the day... and it's all about silver. It's also another must read as well. Here's the preamble that Chris Powell wrote in his GATA release yesterday evening... "Hugo Salinas Price, president of the Mexican Civic Association for Silver, today proposed for the United States the same mechanism that he has long been advocating in Mexico... the gradual re-monetization of silver as the first step toward the restoration of a system of sound money. His essay is titled "Silver Money for Americans" and you can find it at the association's Internet site, Plata.com linked here.