Did Central Bank Coordinated Easing Also Include Manipulation of The Gold Market?

On a day when coordinated central bank monetary easing sent stocks and commodities soaring into orbit, the price action in the gold market was curiously muted.

The Dow Jones, S&P 500 and Nasdaq all increased by over 4%.  Gains in various S&P sectors ranged from 4.75% for the transportation sector to 7.51% for the financial sector.  Gold, by contrast, rose a mere 2%.

The massive monetary easing by central banks should have sent the price of gold into the stratosphere.  It has become crystal clear that central banks will continue to create whatever amount of money is necessary to prop up a collapsing, debt saturated system.

Why would central banks collude to restrain the price of gold?  GATA has explored this question in depth and in a recent exchange between Lawrence Williams of Mineweb and GATA, Williams writes  "If one assumes that governments as a matter of course manipulate currency exchange rates, then there is logic in their manipulating the gold price too, as many throughout the world consider gold as money (currency) and a rise in the gold price thus equates to a depreciation in currencies -- notably the U.S. dollar."

Most of the world already suspects that the "emperor has no clothes" when it comes to central bank money creation.  Had the value of gold been allowed to soar hundreds of dollars per ounce today, under free market conditions, the entire crumbling edifice of fiat currencies would have been exposed.

Gold is the only currency that central banks cannot destroy.  If central banks did not suppress the price of gold, the true extent of the debasement of paper  currencies would become blatantly obvious and thereby threaten the entire system of fiat currencies.  Central banks have every motive in the world to suppress the price of gold.  How long they can remain successful at it (as they engage in blatant, massive and world wide money printing) is the question on most gold investors' minds.

More on this topic:

Where In The World Is The Gold?

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Chinese Seek To Buy Undervalued Gold Mining Company

China has been steadily adding to its gold reserves as it attempts to diversify its huge holdings of foreign currency.  From only 395 tonnes in 1988, the Chinese central bank has increased its gold reserves to 1,054 tonnes.  As the largest foreign holder of U.S. Treasury debt, the Chinese have complained loudly about America's addiction to debt and the nonstop efforts of the Federal Reserve to debase the U.S. dollar.

Besides buying ever increasing amounts of gold bullion, the Chinese have now decided to add gold mining companies to their shopping list.  Given the incredible disconnect between the market value of gold mining companies compared to the value of gold bullion, the decision to buy gold mining companies should come as no surprise.   Many gold mining stocks are selling at a substantial discount to their net asset values of proven gold reserves.

As reported by Bloomberg, China's second largest gold producer, Shandong Gold Group Co, Hunts for Brazilian Gold Acquisition.

Jaguar Mining Inc. (JAG), which is exploring its options after receiving acquisition proposals, is proving that even a record takeover premium for a gold company can be a bargain.

Shandong Gold Group Co., owner of China’s second-largest gold producer, offered to buy Jaguar for $785 million in cash, two people familiar with the deal said Nov. 16. The $9.30-a- share bid is 77 percent more than Jaguar’s prior 20-day average, the highest premium in a cash takeover of a gold miner greater than $500 million, according to data compiled by Bloomberg. Jaguar is still trading at a 3.5 percent discount to its net asset value, cheaper than 94 percent of comparable gold miners.

“Relative to their peers, Jaguar is trading at a pretty substantial discount,” Sachin Shah, a Jersey City, New Jersey- based special situations and merger arbitrage strategist at Tullett Prebon Plc, said in a telephone interview. “Even a $9.30 offer may be undervaluing the company. They could actually get a longer-term value asset at a cheap price. It’s the Brazilian assets that make Jaguar so appealing.”

After closing at $7.80 in New York on Nov. 16, Jaguar fell 3.5 percent yesterday to $7.53. The company is trading at 0.97 times its net asset value of $7.80 a share, based on the average of analysts’ estimates compiled by Bloomberg. That means it’s still cheaper than 16 of 17 other gold companies with similarly sized mines, the data show. Jaguar’s rivals are worth an average of 1.8 times the value of their underlying assets.

“The stock has lagged the group and generally underperformed, and as a result the company was ripe for the picking,” Mark Kellstrom, a senior partner at Summit, New Jersey-based Strategic Energy Research and Capital LLC, which focuses on energy and natural resources, said in a phone interview. “For a purchaser like Shandong, there’s a real opportunity here to buy gold reserves at cheaper valuations, improve the operating results and therefore reap a nice return.”

It was simply a matter of time before cheap gold mining companies became acquisition targets.  Gold mining companies have lagged far behind the gains of gold bullion and are selling at huge discounts to the value of their gold reserves.  A look at the comparative performance of the SPDR Gold Trust (GLD) to the PHLX Gold/Silver Index (XAU) shows that since 2008, gold has returned approximately 200% compared to a return of only 50% for the XAU.

The fundamental appeal of gold mining stocks is further bolstered by increasing demand for gold bullion.  The Gold Demand Trends released by the World Gold Council shows that global demand for gold increased by 6% in the third quarter.

Courtesy yahoo finance

Despite the recent volatility in gold prices, the long term fundamental case for gold remains intact and, in fact, grows stronger by the day as one sovereign nation after another stares into the abyss of debt default.  The move by the Chinese to acquire Jaguar Mining could be the spark that sets off a stampede to acquire undervalued gold mining companies.

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Lucretia Garfield First Spouse Gold Coins, 2011 Bronze Medal Set

On Thursday, December 1, 2011, the United States Mint began selling its 2011 Lucretia Garfield First Spouse Gold Coins and companion 1 5/16 inch Lucretia Garfield bronze medal.

Lucretia Garfield First Spouse Gold Coins

At the same time, the U.S. Mint launched the 2011 First Spouse Bronze Medal Set. The set contains four bronze medals celebrating Lucretia Garfield and the three other First Ladies honored this year -- Eliza Johnson, Julia Grant, Lucy Hayes

The Lucretia coins are the last of four First Ladies honored on the 2011 First Spouse Gold Coins. These half ounce 24 karat gold coins are being offered in proof and uncirculated versions for $1,029.00 and $1,016.00, respectively. Their prices are subject to change.

The obverse of the coins and the bronze medal feature a portrait of the First Lady. Inscriptions include LUCRETIA GARFIELD, IN GOD WE TRUST, LIBERTY, 2011, 20th and 1881. On the reverse is an image of Lucretia sitting and painting on a canvas. Inscriptions on the coin include UNITED STATES OF AMERICA, E PLURIBUS UNUM, $10, ½ OZ. and .9999 FINE GOLD.

The individual Lucretia bronze medal is $7.95. All four bronze medals of the First Ladies honored in 2011 are available separately as well as part of the aforementioned Bronze Medal set. The set is priced $19.95, which is a savings of more than 37% as compared to purchasing the individual bronze medals alone.

2011 First Spouse Bronze Medal Set

Lucretia Garfield's spouse's coin, the 2011 James Garfield Presidential $1 coin, was released on November 17 and is being sold in 25-coin rolls.

View this site's US Coins guide for information on other United States Mint products.

For reference, the Mint's press release about the gold coins, bronze medal, and Bronze Medal Set
follows.

First Spouse Bronze Medal Series: Four-Medal Set also Available

WASHINGTON - The United States Mint today announced the opening of sales for the Lucretia Garfield First Spouse Gold Coin and Bronze Medal on December 1, at noon Eastern Time (ET). The .9999 fine (24-karat) gold coin will be available in proof and uncirculated versions.

The obverse (heads side) of the coin was designed by United States Mint Artistic Infusion Program (AIP) Associate Designer Barbara Fox and sculpted by United States Mint Sculptor-Engraver Phebe Hemphill. The design bears the likeness of Lucretia Garfield with the inscriptions LUCRETIA GARFIELD, IN GOD WE TRUST, LIBERTY, 2011, 20th and 1881.

The coin's reverse (tails side) was designed and sculpted by United States Mint Sculptor-Engraver Michael Gaudioso. The design represents Lucretia's interest in art and features her painting on a canvas with brush and palette in hand. Inscriptions are UNITED STATES OF AMERICA, E PLURIBUS UNUM, $10, ½ OZ. and .9999 FINE GOLD.

The maximum mintage for Lucretia Garfield First Spouse Gold Coins is set at 15,000 across all product options. Customer demand will determine the ratio of proof coins to uncirculated coins produced within the total maximum issuance of 15,000. Pricing for the gold coins will be based on the United States Mint's pricing structure, available at http://www.usmint.gov/catalog. Pricing of the 1-5/16" bronze medal duplicates is set at $7.95 each.

The Lucretia Garfield First Spouse Bronze Medal is also included in the 2011 First Spouse Medal Series: Four-Medal Set. This set, also available for purchase on December 1 at noon ET, includes bronze medals bearing the likenesses of the Eliza Johnson, Julia Grant, Lucy Hayes and Lucretia Garfield First Spouse Gold Coins. The set is priced at $19.95 each.

To place an order, visit http://www.usmint.gov/catalog or call 1-800-USA-MINT (872-6468). Hearing- and speech-impaired customers with TTY equipment may order at 1-888-321-MINT (6468). A fee of $4.95 will be added to all domestic orders to cover shipping and handling costs.

Note: To ensure that all members of the public have fair and equal access to United States Mint products, orders placed prior to the official on-sale date and time of December 1, 2011, noon ET shall not be deemed accepted by the United States Mint and will not be honored. For more information, please review the United States Mint's Frequently Asked Questions, Answer ID #175.

The United States Mint, created by Congress in 1792, is the Nation's sole manufacturer of legal tender coinage and is responsible for producing circulating coinage for the Nation to conduct its trade and commerce. The United States Mint also produces proof, uncirculated and commemorative coins; Congressional Gold Medals; and silver, gold and platinum bullion coins.

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James Garfield Presidential Dollar Rolls, Ceremony and Coin Exchange

The United States Mint announced that it will start accepting orders for $25 rolls of James Garfield Presidential Dollars on Thursday, November 17, 2011, at noon Eastern Time.

James Garfield Presidential Dollar Rolls

Garfield $1 coins, the last of the 2011 Presidential dollars, will be available in 25-coin rolls from either Philadelphia or Denver for $39.95.

Three more related events will also take place on the same day. Beginning at 10:00 A.M., the U.S. Mint in conjunction with the National Park Service will unveil the Garfield dollar in a coin ceremony at the James A. Garfield National Historic Site (http://www.nps.gov/jaga/) in Mentor, Ohio. The ceremony is free and open to the public.

Immediately following the event, attendees may exchange cash for rolls of the Garfield dollar at face value. Children 18 years old and younger at the event will be given a free Garfield coin to commemorate the event.

And finally, also on the same day, the dollars will begin to enter circulation via banks that carry the coins.

For reference, the Mint's announcements about the dollar rolls, launch ceremony, and coin exchange follows.

WASHINGTON - The Presidential $1 Coin honoring James Garfield will be released on November 17, 2011. At noon Eastern Time (ET) the same day, the United States Mint will begin accepting orders for collectible rolls of 25 circulating quality coins each.

Each roll contains coins from either the United States Mint at Philadelphia or Denver priced at $39.95 each. They are wrapped in specially designed paper that displays the mint of origin ("P" or "D") and "$25," the face value of its contents.

James Garfield Presidential Dollar

The obverse (heads side) of the James Garfield Presidential $1 Coin was designed and sculpted by United States Mint Sculptor-Engraver Phebe Hemphill. In addition to President Garfield's portrait, the obverse includes the inscriptions JAMES GARFIELD, IN GOD WE TRUST, 20th PRESIDENT and 1881.

The reverse (tails side), featuring the iconic Statue of Liberty, was designed and sculpted by United States Mint Sculptor-Engraver Don Everhart. It includes the inscriptions UNITED STATES OF AMERICA and $1. The inscriptions 2011, E PLURIBUS UNUM and a mint mark designating the mint of origin are edge-incused.

Customers may place their orders at http://www.usmint.gov/catalog or by calling 1-800-USA-MINT (872-6468). Hearing- and speech-impaired customers may order by calling 1-888-321-MINT (6468). A shipping and handling fee of $4.95 will be added to all domestic orders.

The Presidential $1 Coin rolls are also available for purchase through the United States Mint Online Subscription Program. Additional information about this convenient ordering method is available at http://www.usmint.gov/catalog.

Note: To ensure that all members of the public have fair and equal access to United States Mint products, orders placed prior to the official on-sale date and time of November 17, 2011, at noon ET shall not be deemed accepted by the United States Mint and will not be honored. For more information, please review the United States Mint's Frequently Asked Questions, Answer ID #175.

WASHINGTON - The United States Mint will introduce the new Presidential $1 Coin honoring James A. Garfield, our Nation's 20th President, on November 17 -- two days before the 180th anniversary of his birth. The public event will take place at the James A. Garfield National Historic Site in Mentor, Ohio, at 10 a.m. Eastern time (ET).

Following the ceremony, the public can exchange their cash for 25-coin rolls of the James A. Garfield $1 Coin at face value. Each child 18 years old and younger will receive a new James A. Garfield $1 Coin to commemorate the event.

WHAT

Presentation of the James A. Garfield Presidential $1 Coin and Coin Exchange

WHO

Marc Landry, Acting Associate Director of Manufacturing, United States MintDr. Allan Peskin, Professor Emeritus of History, Cleveland State UniversityRudolph Garfield, great-grandson of former President Garfield

WHEN

Thursday, November 17, 2011, 10:00 a.m. (ET)

WHERE

James A. Garfield National Historic Site
8095 Mentor Avenue
Mentor, OH 44060

The James A. Garfield $1 Coin is the 20th release in the United States Mint Presidential $1 Coin Program, authorized by Public Law 109-145 (the Presidential Dollar Coin Act of 2005). The Act directs the United States Mint to strike and issue four $1 coins each year featuring the images of our Nation's presidents in the order that they served in office.

The United States Mint, created by Congress in 1792, is the Nation's sole manufacturer of legal tender coinage and is responsible for producing circulating coinage for the Nation to conduct its trade and commerce. The United States Mint also produces proof, uncirculated and commemorative coins; Congressional Gold Medals; and silver, gold and platinum bullion coins.

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Every “Solution” To The Euro Crisis Involves Printing Money

Attempts by central banks to blatantly manipulate the price of gold lower should come as no surprise to long time gold investors.  Market News International reported on Thursday that the Bank of England, the Federal Reserve and the Bank for International Settlements mounted coordinated selling in an attempt to drive the price of gold lower. After advancing to $1,757.80, gold reversed course, ending the day in New York trading at $1,706.80, down $51 from the morning high.

The reported attempt to crush the price of gold coincides with the growing perception that every "solution" offered thus far to resolve the potentially catastrophic debt crisis in Europe revolves around the creation of vast amounts of new fiat currency.

European countries that have piled up ruinous levels of indebtedness are quickly discovering that they have run out of options. The limits on imposing new taxes have been reached, bond markets won't finance additional borrowing, austerity won't work and debt costs are spiraling out of control as Euro zone economies grind to a halt.

Here's a rundown of some of the bizarro world "solutions" that have been offered by European rulers to prevent an economic collapse in Europe.  Try to figure out which option does not, at its core, involve the printing of new Euros.

-European Central Bank (ECB) President Mario Draghi insists that the central bank will not finance government deficits by purchasing new government debt with freshly created Euros.  The amount of government bonds already purchased by the ECB exceed €200 billion and the ECB continues to buy billions of additional euro debt each week.  In addition, the ECB is currently lending European banks as much money as they ask for.  Although the ECB's charter prohibits it from financing governments by buying their debt directly, the ECB has no qualms about buying government debt in the secondary market.

-Financial assistance from the International Monetary Fund is another option being discussed.  Where would the IMF get the money to lend to debt stressed European governments?  The IMF would be funded with money created by Europe's central banks which the IMF would then re-lend to the same European nations whose central banks created the money in the first place.

-The European Stability Mechanism (ESM) was established to bail out insolvent members of the European Union.   The amount of ESM funding was grossly inadequate to address the debt crisis.  The proposed solution - grant the ESM a banking license (read license to print money) which would allow the ESM (as a bank) to borrow unlimited amounts of money from the European Central Bank.

If you correctly guessed "none of the above", you probably are already invested in gold although probably not to the extent that you should be.

Printing money is the last desperate attempt of failed governments to keep the lights on.  Allowing the price of gold to soar would expose the extent to which the Euro, in particular, and all paper money in general have been debased by insane monetary policies.  The Central Banks cannot hide this truth anymore.  Nor can they prevent the price of gold money from ultimately reflecting its true value priced in paper currencies.  Any retreat in gold prices should be viewed as a buying opportunity, courtesy of central banks.

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Olympic National Park Five Ounce Silver Uncirculated Coin

Coming Tuesday, November 29, 2011, at 12:00 PM (noon) ET, the United States Mint will debut the collector Olympic National Park Five Ounce Silver Uncirculated Coin.

Image of the Olympic National Park Five Ounce Silver Uncirculated Coin

What makes the collector Olympic silver coin unique is its limited mintage, uncirculated finish, and the Philadelphia mint mark. It also comes packaged in the U.S. Mint's protective coin holder and presentation case with a Certificate of Authenticity. The bullion version, struck for investors, is already on the market and can be found through various coin and precious metal dealers.

As the third 2011-dated five ouncer and the eighth release in the America the Beautiful coin series, the Olympic coin honors Olympic National Park in Washington, a massive sanctuary of nearly one million acres that has everything from beaches to rain forests to glacier-capped mountains.

The designs are the same as the circulating Olympic quarter but on a larger scale. Its reverse features an elk standing on the bar of the Hoh River with Mount Olympus in the background. Inscriptions are OLYMPIC, WASHINGTON, 2011 and E PLURIBUS UNUM.

If the price of the coin remains the same as the other available .999 fine silver five ounce coins, it will cost buyers $229.95 each. When it launches, there will be a five coin per household limit for at least the first week. For the previous Glacier National Park Five Ounce Uncirculated Coin released in October, the United States Mint is still enforcing the limit.

For reference, the United States Mint press release about the Olympic National Park Five Ounce Uncirculated Coin follows.

WASHINGTON - Collectors may begin ordering the 2011 America the Beautiful Five Ounce Silver Uncirculated Coin - Olympic National Park (Washington) on November 29 at noon Eastern Time (ET). The current price of the coin is $229.95; however, as with all United States Mint products containing precious metals, pricing is subject to change.

A maximum mintage limit of 35,000 units has been set for each of the 2011 America the Beautiful Five Ounce Silver Uncirculated Coins. Orders will be limited to five coins per household for the first week of sales. At the end of one week, the United States Mint will re-evaluate this limit and either extend, adjust or remove it.

The America the Beautiful Five Ounce Silver Uncirculated Coins are collector versions of those issued through the America the Beautiful Silver Bullion Coin™ Program. The three-inch uncirculated coins feature the same designs that appear on the bullion coins and the corresponding circulating quarters issued through the America the Beautiful Quarters® Program.

The America the Beautiful Five Ounce Silver Uncirculated Coins are struck in .999 fine silver and display the "P" mint mark indicating production at the United States Mint at Philadelphia. To protect the uncirculated finish, each coin is enclosed in a capsule and an attractive presentation case. A Certificate of Authenticity is included with each coin.

The United States Mint will accept orders at http://www.usmint.gov/catalog and at 1-800-USA-MINT (872-6468). Hearing- and speech-impaired customers with TTY equipment may order at 1-888-321-MINT (6468). A shipping and handling fee of $4.95 will be added to all domestic orders. 

Note: To ensure that all members of the public have fair and equal access to United States Mint products, orders placed prior to the official on-sale date and time of November 29, 2011, noon ET shall not be deemed accepted by the United States Mint and will not be honored. For more information, please review the United States Mint's Frequently Asked Questions, Answer ID #175.

The United States Mint, created by Congress in 1792, is the Nation's sole manufacturer of legal tender coinage and is responsible for producing circulating coinage for the Nation to conduct its trade and commerce. The United States Mint also produces proof, uncirculated and commemorative coins; Congressional Gold Medals; and silver, gold and platinum bullion coins.

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View the original article here

Glacier National Park Five Ounce Silver Uncirculated Coin Release

U.S. Mint image of the Glacier National Park Five Ounce Silver Uncirculated Coin

Today, at 12:00 PM (noon) ET, the United States Mint released the collectible Glacier National Park Five Ounce Silver Uncirculated Coin.

One factor that may give a boost to easing sales in the coin series will be its lower price of $229.95, since the price used to be $50 more for all six earlier launches. The Glacier silver coin is the second 2011-dated issue and the seventh overall.

For the coin's start, the United States Mint is limiting the initial household limit to five coins, at least for the first full week of sales. In the past, the Mint kept a limit for the first couple of months of availability.

Similar to the 2011 Gettysburg silver coin released in September, the Glacier uncirculated coin will have a maximum mintage of 35,000. This was an increase over the coins dated 2010, which had a maximum of 27,000.

This latest release comes encased in a presentation case with a Certificate of Authenticity. The coin's diameter is 3.0 inches, it weighs five ounces, and it is struck in .999 fine silver.

Its reverse design mimics the circulating Glacier quarter, already in the market. It was designed by Barbara Fox and engraved by Charles L. Vickers, and it depicts the classic view of the northeast slope of Mount Reynolds in the background with a mountain goat on a rocky slope in the foreground. Inscriptions are GLACIER, MONTANA, 2011 and E PLURIBUS UNUM.

For reference, the United States Mint press release about the Glacier National Park Five Ounce Silver Uncirculated Coin follows.

WASHINGTON - The United States Mint will open sales for the 2011 America the Beautiful Five Ounce Silver Uncirculated Coin - Glacier National Park (Montana) on October 25, 2011, at noon Eastern Time (ET). Orders will be limited to five coins per household for the first week of sales. At the end of one week, the United States Mint will re-evaluate this limit and either extend, adjust or remove it. The maximum mintage is limited to 35,000 units. 

Currently, pricing for the 2011 America the Beautiful Five Ounce Silver Uncirculated Coin - Glacier National Park is set at $229.95. As with all products sold by the United States Mint containing precious metals, pricing is subject to change.

Orders will be accepted at http://www.usmint.gov/catalog or at 1-800-USA-MINT (872-6468). Hearing- and speech-impaired customers with TTY equipment may order at 1-888-321-MINT (6468). A shipping and handling charge of $4.95 will be added to all domestic orders. 

The America the Beautiful Five Ounce Silver Uncirculated Coins are collector versions of the coins issued through the America the Beautiful Silver Bullion Coin™ Program. The three-inch uncirculated coins feature the same designs that appear on the bullion coins and the corresponding circulating quarters issued through the America the Beautiful Quarters® Program.

The America the Beautiful Five Ounce Silver Uncirculated Coins are struck in .999 fine silver and display the "P" mint mark indicating production at the United States Mint at Philadelphia. To protect the uncirculated finish, each coin is enclosed in a capsule and an attractive presentation case. A Certificate of Authenticity is included.

Note: To ensure that all members of the public have fair and equal access to United States Mint products, orders placed prior to the official on-sale date and time of October 25, 2011, noon ET shall not be deemed accepted by the United States Mint and will not be honored. For more information, please review the United States Mint's Frequently Asked Questions, Answer ID #175.

The United States Mint, created by Congress in 1792, is the Nation's sole manufacturer of legal tender coinage and is responsible for producing circulating coinage for the Nation to conduct its trade and commerce. The United States Mint also produces proof, uncirculated and commemorative coins; Congressional Gold Medals; and silver, gold and platinum bullion coins.

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View the original article here