Silver Falcon Mining

Good morning all: Well, I can’t believe it, Larry Kudlow, in all his blusterous sartorial splendor, yesterday stated live on CNBC that: “Gold is the New Reserve Currency”. I guess his owners at GE finally realized that they had better get on the right side of the gold trade with the recent and ominous criminal fraud charges being laid against Goldman and JP Morgan by the Justice Dept. For years we had to endure “Larry’s” searing, snide, acidic and dismissive put downs and cut-offs of set-up guests who had anything positive to say about gold. The man is a hypocrite and it looks good on him.

Here is a today’s pot-pourri of comments gold related from the long term ethical side.

Jim Sinclair: The Crimex got clobbered by the bullion market yet again. This is a must for the run to $1650. The knuckle draggers there will get the message, it just takes them longer. All Western currencies are under attack, just some more than others. Gold is the leading currency.

Dan Norcini: Clearly, there is a wholesale flight in Europe to gold as a safe haven as fears surrounding the stability of the Euro intensify. So strong is the demand that there have been some anecdotal reports that dealers are having difficulty keeping gold bars and coins in stock. Once again, it is this strong showing in terms of the European currency prices, that is generating the buying in Dollar priced gold and it is that which is making life for the Comex bears extremely challenging to say the least. They simply cannot hold it down with all the buying of physical metal originating out of Europe- demand for the real thing is overwhelming the paper sellers at the Comex…..the war on gold by the Western Monetary authorities must be judged an abysmal failure for they have failed to discredit it. Investors vote with their feet and those feet are running into gold. In the end, that is the real arbiter of what the public believes is of worth…

On the technical price charts gold’s showing today is very impressive. It knifed up through overhead selling resistance near $1190 in firm fashion. Every one of those brand new shorts that were piled on two days ago are now hemorrhaging severely with many of the weaker-hands being forced out as their buy stops were set off in a upward cascade effect…

Gold now needs to get a solid close above $1199 – $1202 to be primed for a run at the all time high

the global race to acquire physical bullion is on...

Thanks to “VHF” from another BB:

Physical Gold Grabbed: UBS Metals Daily

Author:Edel Tully: May 7, 2010 3:56:12 AM

The flight to safety in gold intensified yesterday, as our Zurich and Geneva sales desk experienced exceptionally strong demand for small bars and coins. All size bars up to 1kg are wanted by retail investors. Buying has been evident all week, but demand yesterday was the greatest that we have experienced since 2008. It is little surprise then that the important $1200/oz level was taken out yesterday.

Current gold demand reflects investor fear and extreme risk aversion, in contrast to Tuesday, when liquidation in other markets caused a shallow selloff in gold..

Coin demand is so intense that supply struggles to match, even as premiums rise. Capacity constraints, greatly evident last year, are once again a feature…. Yesterday's staggering price activity in equities and the dramatic surge in the VIX index - trading error or not - compounds the fear factor. This should help gold.

Alex Newman has written for the New American magazine a report about the growing number of complaints against the U.S. government involving market manipulation. It cites GATA extensively. It's headlined "Manipulation of Precious-Metals Market Under Fire" :

“The banking cartel’s manipulation of supposedly “free” markets is coming under increasing fire as a broad coalition of activists, legislators, and non-profit groups target the Federal Reserve System with lawsuits, investigations, criminal complaints, and federal transparency legislation. Now whistleblowers, and even some government officials, are also taking aim at “irregularities” in the precious-metals market being orchestrated by the banking cartel and its government allies.”