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Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.

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Message: Ed Steer this morning

On Russia Today's 'Capital Account'...CFTC's Chilton Repeats Belief in Silver Market Manipulation

"I'm also curious to know how warm it's getting over at Canada's Scotiabank/Scotia Mocatta..."

¤ Yesterday in Gold and Silver

The gold price didn't do much until the Comex open on Tuesday morning in New York...and then rallied until 9:00 a.m. Eastern...before getting sold off until precisely 9:30 a.m. Then a rally began that got halted in its tracks at precisely 11:00 a.m. Eastern time...4:00 p.m. GMT...which was the London close. Note the sell-off at the London close on Monday as well. Nothing free market about any of this.

The New York low was $1,717.00 spot...and the high tick at the London close was $1,734.50 spot...a one percentage point price swing.

Gold closed at $1,724.90 spot...down $3.90 on the day. Net volume was pretty light...around 116,000 contracts, but much higher than the 70, 000 contract day we had on Monday.

Here's the New York Spot Gold [Bid] chart so you can see the precision of JPMorgan et al when they're in action.

As you already know, the silver price action was more 'volatile'...and that's being polite about it. A rally began shortly after the London open at 8:00 a.m. GMT...and that topped out around the 12 o'clock noon GMT silver fix. After that, the silver price had pretty much the same price path as gold...although the percentage price swings were much bigger.

The New York low in silver was $32.04 spot...and the high tick was $32.95 spot. The London low...and Far East low...also checked in around the $32.05 spot price, so the intraday price move in silver was about 90 cents...almost 3 percent.

Silver closed the Tuesday trading session at $32.50 spot...up the magnificent sum of 8 cents the ounce. Net volume was around 36,000 contracts...about 50 percent higher than Monday's volume.

Like Monday, it should be obvious to any casual observer that both gold and silver would have finished materially higher in price if a not-for-profit seller hadn't shown up a couple of times during the Comex trading session...especially at the London close.

It was a different story with the other two precious metals of note. Platinum closed up 1.02%...and palladium was the star...up 4.28%. It's obvious that there weren't too many not-for-profit sellers around in these white metals.

The dollar index traded in a fairly wide range just above the 81.00 level for the entire Tuesday trading session...and closed virtually unchanged at 81.11. Nothing to see here, folks...please move along.

The gold stocks struggled mightily...but couldn't break above unchanged...and around 12:30 p.m. Eastern time, they rolled over...and that was it for the day. The HUI closed down 1.16%.

There was the odd green arrow amongst the silver stocks I follow, but for the most part, they pretty much all finished in the red...but not as badly as the gold stocks. Nick Laird's Silver Sentiment Index closed down only 0.21%.

(Click on image to enlarge)

The CME Daily Delivery Report was another yawner, as only 1 gold and 5 silver contracts were posted for delivery from the Comex-approved depositories on Thursday.

There was no reported change in GLD...but for the second day in a row an authorized participant withdrew silver from SLV. This time it was 822,901 troy ounces.

Bron Suchecki over at The Perth Mint sent me an e-mail regarding the quick deposits of silver into Sprott's Physical Silver Trust...PSLV...that I mentioned in this space yesterday. This is what he had to say...

"Hi Ed, I noted your comment in today's piece that the Sprott deliveries were fast. FYI, the reported figures reflect when Sprott bought the metal and not when it was delivered.

The reasoning is that for the fund to accurately calculate its daily Net Asset Value, so investors know what its fair value is, it has to show its true financial position. The figure are therefore reported on an accrual accounting basis, not a cash (or metal) flow basis." Regards - Bron [That sounds entirely plausible to me. - Ed]

The U.S. Mint had a pretty decent sales report yesterday. They sold 4,500 ounces of gold eagles...1,000 one-ounce 24K gold buffaloes...and a rather chunky 647,000 silver eagles.

It was a busy day at the Comex-approved depositories on Monday. They received 1,177,273 troy ounces of silver...and shipped only 30,924 troy ounces of the stuff out the door. The link to that activity is here.

I have a couple of charts for you today. The first is courtesy of Washington state reader S.A...and it's self-explanatory. Silver rocks!

(Click on image to enlarge)

The other is from Nick Laird and, based on his calculations, the graph is titled "Annual Chinese Gold Accumulation Since 2000"...and as Nick said in his covering e-mail..."At the current rate, China will exceed U.S. gold holdings within 4 years." One of Nick's presumptions when putting this graph together was "that all imports into China came in through Hong Kong." Some day we'll know for sure...maybe.

(Click on image to enlarge)

I have a lot of stories again today...the first one of which is of the tabloid variety.

¤ Critical Reads

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David Petraeus ordered lover Paula Broadwell to stop e-mailing Jill Kelley

Paula Broadwell, the former CIA director’s biographer and lover, allegedly sent threatening messages to Jill Kelley, a 37-year-old “social liaison” for the US military in Tampa, triggering the FBI investigation which led to Gen Petraeus’s downfall.

When Mrs. Kelley, a family friend of the Petraeuses, learned from the FBI that the anonymous messages were coming from Mrs. Broadwell she turned to the former general for help. Gen Petraeus then urged Mrs. Broadwell to stop, according to the Washington Post.

Mrs. Kelley reportedly went to the FBI in early summer after she began receiving the emails. The relationship between the general and his biographer is believed to have ended in July.

On Sunday Mrs. Kelley, who insists that the former CIA director is just a close friend who is like a grandfather to her children, was identified as the woman Mrs. Broadwell believed was her rival.

Mrs. Kelley was silent yesterday after hiring Monica Lewinsky's former crisis manager.

As I said in this space yesterday..."you couldn't make this stuff up in a third-rate spy novel." This piece is from The Telegraph on Monday evening GMT...and I borrowed it from yesterday's edition of the King Report. The link is here. [Where's Allan Fotheringham when you need him the most? - Ed]

Petraeus Case Shows Your E-mails Aren't Safe From FBI

Your e-mails are not nearly as private as you think.

The downfall of CIA Director David Petraeus demonstrates how easy it is for federal law enforcement agents to examine emails and computer records if they believe a crime was committed. With subpoenas and warrants, the FBI and other investigating agencies routinely gain access to electronic in-boxes and information about e-mail accounts offered by Google and other Internet providers.

"The government can't just wander through your e-mails just because they'd like to know what you're thinking or doing," said Stewart Baker, a former assistant secretary at the Department of Homeland Security and now in private law practice. "But if the government is investigating a crime, it has a lot of authority to review people's e-mails."

This story was posted on the CNBC website during the New York lunch hour yesterday...and I thank West Virginia reader Elliot Simon for bringing it to our attention. The link is here.

Google Says Governments Requesting More Content Removals

Google Inc. said government requests to remove content from its search results and other services rose 71 percent in the first half of the year, according to a new report.

The owner of the world’s largest search engine said there were 1,791 requests in the six months through June, up from 1,048 during the last six months of 2011, according to its Transparency Report. Turkey’s government made 501 requests to remove content, up from 45 in the previous period, while the U.S. followed with 273, up from 187.

Google is under scrutiny from companies and governments around the world over what type of content it shows. Some countries are being more aggressive in seeking content removal from search results and sites such as video-sharing service YouTube. While the company may receive such requests, Google may choose not to comply, according to the report.

This Bloomberg story was posted on their website at 12:50 p.m. Mountain Standard Time yesterday...and it's the second item in a row from Elliot Simon. The link is here.

Rivals dig in as "fiscal cliff" drama debuts

Both sides in the "fiscal cliff" debate stood their ground on Tuesday as they gathered in Washington for the first time since the elections, with a fundamental tax dispute preventing a broader compromise on deficit reduction.

The White House made clear it was ready to negotiate with Republicans on taxes and spending, but a spokesman for Democratic President Barack Obama said he will not budge on insisting that the wealthy's tax rates must rise in 2013.

The president wants to extend low individual income tax rates beyond year's end for 98 percent of Americans, but he will not agree to extending them for the top 2 percent of earners, said White House spokesman Jay Carney at a news conference.

On the Senate floor, Republican Leader Mitch McConnell said his party was open to discussing new government revenues, but not raising tax rates. "We're ... not about to further weaken the economy by raising tax rates and hurting jobs," he said.

This Reuters story was filed from Washington shortly after the markets closed yesterday afternoon in New York...and I thank Roy Stephens for his first offering of the day. The link is here.

Why Texas Could Probably Secede

As of this writing, the Texas petition to peacefully “withdraw” from the United States via the White House’s open petition webpage is up to 62,481 signatures, on its way to tripling the required names needed to trigger a response from the Obama administration.

No doubt Texas’ desire to break free is a source of amusement inside a White House that has mastered the art of belittling the opinions of its challengers, but there is one not-so-small problem here: Texas could pull it off.

This short story was posted on the businessinsider.com Internet site yesterday afternoon...and I thank Roy Stephens for sending it...and the link is here.

White House may respond to Texas secession petition

Looks like the Obama administration may have to respond to a petition seeking the green light for Texas to secede from the United States—one of 20 such requests filed on the official White House website since Election Day.

At the time of the writing of this post, the Texas secession petition had garnered 25,318 signatures—above the White House's self-imposed rules for requiring a reply.

Other secession petitions include requests for Arkansas, South Carolina, Georgia, Missouri, Tennessee, Michigan, Colorado, Oregon, New Jersey, North Dakota, Montana, Indiana, Mississippi, Kentucky, North Carolina, Alabama and New York.

This news.yahoo.com story from Monday was sent to me by Alberta reader Jerome Cherry...and the link is here.

Marc Faber: Prepare for a Massive Market Meltdown

The markets are going to go into meltdown soon, so expect stocks to lose 20 percent of their value, Marc Faber, author of the Gloom, Boom and Doom Report told CNBC on Tuesday.

“I don’t think markets are going down because of Greece, I don’t think markets are going down because of the ‘fiscal cliff’ — because there won’t be a ‘fiscal cliff,’ ” Faber told CNBC’s “Squawk Box.” “The market is going down because corporate profits will begin to disappoint, the global economy will hardly grow next year or even contract, and that is the reason why stocks, from the highs of September of 1,470 on the S&P, will drop at least 20 percent, in my view.”

Faber, who is known for his bearish views, cited tech giant Apple, a company whose disappointing earnings have caused its stock to fall 20 percent from its September highs and 14 percent in the past month.

This story was posted on the cnbc.com Internet site early yesterday morning...and I thank Scott Pluschau for bringing it to our attention. The link is here.

US. Conference Board fears BRICS miracle over as world faces decade-long slump

The catch-up boom in China, India, Brazil is largely over and will be followed by a drastic slowdown over the next decade, according to a grim report by America’s top forecasting body.

Europe's prognosis is even worse, with France trapped in depression with near zero growth as far as 2025 and Britain struggling to raise its speed limit to 1pc over the next three Parliaments.

The US Conference Board’s global economic outlook calls into question the "BRICs" miracle (Brazil, Russia, India, China), arguing that the low-hanging fruit from cheap labour and imported technology has already been picked.

This Ambrose Evans-Pritchard offering was posted on The Telegraph's website early yesterday evening GMT...and I thank Donald Sinclair for sending it. The link is here.

Energy market abuse 'as serious as burglary’, minister claims

Alleged price-fixing in the energy markets is as serious as burglary, a Government minister said on Tuesday, after whistleblowers claimed some of Britain’s biggest energy companies were involved in rigging wholesale gas prices.

The Financial Services Authority and energy regulator Ofgem are examining claims that power firms are among companies involved in widespread manipulation of the wholesale gas market – potentially inflating prices paid by domestic energy customers.

All of the UK’s 'Big Six’ energy suppliers – Centrica, SSE, ScottishPower, EDF Energy, E.ON and RWE npower – denied involvement in price-fixing activity.

This is another story that was posted on the telegraph.co.uk Internet site early yesterday evening...and is Donald Sinclair's second offering in a row. The link is here.

Judge orders Barclays to reveal names of 208 staff linked to LIBOR probe

Lawyers for Barclays will on Wednesday disclose the names after a High Court judge ordered the bank to hand them to the legal team of a care home operator that is suing the bank for mis-selling it complex interest rate derivatives.

The disclosure follows an attempt by Barclays to argue against the need for disclosure. However, Mr Justice Julian Flaux said on Tuesday that it was “unacceptable” to deny access to the names.

Guardian Care Homes is claiming £38m from Barclays over interest rate swaps the company alleges it was mis-sold. Barclays said: “It would be premature to comment on proceedings before the Judge has made his decision.”

This is the third and final offering from Donald Sinclair...and it's also from yesterday evening's Telegraph. The link is here.

Civil Disobedience: Greek Mayors Rebel Against Public Layoffs

While the Greek government has passed the most recent austerity measures demanded by its international lenders, it continues to encounter resistance to their implementation. In a rare act of unity, cities and unions are refusing to comply with demands for layoffs.

The atmosphere was tense at the courtyard of the Thessaloniki city hall. Dozens of municipal workers in Greece's second-largest city staged a protest Monday morning against the planned lay-offs of 27,000 civil servants. "I have been working for the city for 22 years," said one of the city administration's 4,000 employees. He requested anonymity for fear of jeopardizing his position even further. "I fear for my job. All of us do."

A few hours later, city workers and journalists packed inside city hall to observe the city council meeting. The meeting ended with a decision to disobey the central government. Mayor Yiannis Boutaris had submitted the motion -- a refusal to send the Interior Ministry a list of workers ripe for dismissal. City administration and unions, so often enemies, were united.

This story showed up on the German website spiegel.de yesterday...and I thank Roy Stephens for his third offering in today's column. The link is here.

Celebrating a golden jubilee Kuwait style: Gulf state spends £10 million to put on the biggest firework display of all time

For the paltry sum of just £10 million, Kuwait earned a place in the Guinness Book of Records last night as it celebrated the golden jubilee anniversary of its constitution in style by laying on the biggest fireworks display of all time.

A dazzling array of colours illuminated the skies above the country's capital of Kuwait City as a staggering 77,282 fireworks were launched over the period of an hour.

A representative of Guinness World Records announced the achievement on Kuwait television at the end of the display which had been watched by tens of thousands of Kuwaitis and expatriates on the Arabian Gulf Road by the sea.

It sure was pretty...but £10 million? This spectacular photo-essay/video was embedded in a dailymail.co.uk article on Sunday...and I thank Marshall Angeles for finding it for us. The link is here.

Two King World News Blogs

The first one is with Bill Fleckenstein...and it's headlined "This is a Moment in Time That's Never Been Seen Before". The second is with Keith Barron...and it's entitled "Global Gold Production is Poised to Fall Off a Cliff".

Gold Industry Facing Mine Discovery Challenge, Barrick Says

Gold discovery rates are decreasing even as exploration spending in the industry reached a record $8 billion last year, according to Jamie Sokalsky, chief executive officer of Barrick Gold Corp., the world’s largest producer.

There were three discoveries last year, compared with 11 in 1991, and none of those can be described as “supergiant,” or holding more than 20 million ounces, Sokalsky said at a conference in Hong Kong. Breakeven costs were rising, he said today, predicting gold’s bull market shows no signs of ending.

Gold is poised for a 12th annual gain, driven by increased investor and central-bank purchases as governments around the world boost stimulus to revive their economies. Global gold mine output may increase 0.7 percent in 2013, the slowest pace since 2008, according to Barclays Plc, which forecasts that total physical supply may shrink 0.4 percent next year. A further rally may not spur much higher output, he told the conference.

“I don’t see a surge in gold production if we saw a gold price of $3,000,” Sokalsky said. “At a higher gold price, we’d still be experiencing the same challenges. I’d suggest there’d be very limited response to that higher gold price.”

A wildly bullish story for the gold price. It's going to be interesting to see how long JPMorgan et al can keep the lid on prices with this sort of news. This Bloomberg story was filed from Singapore yesterday...and I thank Elliot Simon for bringing it to our attention. The link is here.

Coin Dealers on Top After Election

I fully expect that gold and silver will become far more precious than they are today. They will also be desired by a greater percentage of the population. Banks in the United States have almost all gotten out of the business of buying and selling physical precious metals, which means that coin dealers will be the largest beneficiaries of this surge in demand. So, I foresee good times ahead for coin dealers in the next one to three years. However, they will come no matter who won last week’s elections.

But, I have a couple of warnings for dealers. First, the additional competition from dealers selling on the Internet will result in far smaller profit margins than the modest profit levels that dealers were used to. Second, the coming tidal wave in demand will outstrip the ability of any coin dealer, bullion wholesaler, ingot fabricator, or refinery to handle. Therefore, let the good times come, but they will not necessarily be easy to manage.

So you see, dealers are the winners of the election, but they were set up for this triumph no matter who got the most votes.

This short commentary by Patrick Heller was posted on the numismaster.com Internet site yesterday...and is Elliot Simon's second story in a row. The link is here.

Lawmaker asks to be paid in gold

A Montana state lawmaker is asking that he be paid in gold coins because of his lack of faith in the U.S. dollar amid a rising deficit.

Jerry O’Neil, a Republican just re-elected in his northern Montana district, says his constituents told him he was not honoring his duty to uphold the U.S. Constitution, which O’Neil and Gold Standard supporters say requires the government to print money backed by gold.

“I believe that if you take a look at the Constitution, that’s what it says,” he told POLITICO. “I think we’ve gotten a tremendously long way from it.”

So he wrote a letter to the state Legislature asking to be paid his public salary in gold and stating: “It is very likely the bottom will fall out from under the U.S. dollar. Only so many dollars can be printed before they have no value.”

This story was posted on the politico.com website just before lunchtime on the East coast...and I thank Elliot Simon for his final offering of the day. The link is here.

The New York Times notes that banking system gold may not be real or accessible

This story, with a Chris Powell-fabricated headline, showed up as a GATA release yesterday...and its real title was "How About a Fort Knox of Your Own? It was posted on the nytimes.com Internet site just after midnight...and the link is here.

Global silver market surplus to edge up to 300m ounces in 2012 – GFMS

The surplus in the global silver market is expected to edge up to 300 million ounces in 2012 from a year earlier, the global head of metals analytics at GFMS, a Thomson Reuters unit, said on Wednesday.

Philip Klapwijk, speaking on the sidelines of a conference in Hong Kong, also said demand for silver fabrication had weakened, although some of the decline had been offset by higher silver output in China.

"The situation this year is that we see weaker fabrication demand on two main reasons. One is industrial fabrication has slowed quite considerably this year, especially in recent months, and we see weakness especially in the electronics field and photovoltaic end users," said Klapwijk.

Mr. Klapwyijk...along with the company he represents...has always been right up there with the like of Jon Nadler...and also Jeff Christian and his CPM Group. They are strong with the dark side of The Force, so I'd take anything that this gentleman has to say with a huge grain of salt. But, in the interests of balanced reporting, I'm posting it. I found it over on the mineweb.com Internet site in the wee hours of this morning...and the link is here.

The Telegraph: Silver price to 'increase 400pc in three years'

Silver will increase in value five times over the next three years, according to mixed asset fund manager Ian Williams.

"Silver is about to enter a sustained bull market that will take the price from the current level of $32 an ounce to $165 an ounce and we expect this price to be hit at the end of October 2015," he predicted.

"This forecast is based entirely using technical & cyclical analysis and is in keeping with the mathematical form displayed so far in the bull run that has taken Silver from $8 an ounce in 2008 to its current price of $32 an ounce – having hit $50 an ounce in 2011."

Mr. Williams is not the sharpest knife in the drawer...and I'm wondering how much of his 'research' was stolen from Ted Butler. I'm also wondering why such a story showed up in The Telegraph at this point. Anyway, $165 the ounce is a good start...and would have been there long ago if it weren't for JPMorgan et al. I thank Phil Barlett for sharing this story with us...and the link is here.

Butler sees silver's price appreciation potential far greater than gold's

Silver market analyst Ted Butler, interviewed yesterday by MineWeb's Lawrence Williams, discussed manipulation of the market but reasserted his belief that silver's price appreciation potential is far greater than gold's.

In actual fact, there was no interview at all. Lawrie just took Ted's weekend commentary to his paying subscribers and put it in his own words...and you get to read it for free!

However, the fact that Ted's and GATA's work is starting to show up with increasing frequency on the most respected [and conservative] of precious metal websites, of which the mineweb.com is right up there at the top, speaks volumes for the increasing credibility of the message...and the messengers.

It's almost pointless to say that this is a must read...and I found it in a GATA release early yesterday morning. It was obviously posted on the mineweb.com's Internet site after I filed yesterday's column, or I would have caught it before I hit the 'send' button, as their website is the last thing I check before I hit the 'send' button. The link is here.

On Russia Today's 'Capital Account'...CFTC's Chilton repeats belief in silver market manipulation

This 28-minute video clip is a must watch...and Chris Powell has a few things to say in this preamble as well that are more than worth reading. The video clip itself was posted over at the youtube.com Internet site yesterday afternoon...and the link to the GATA release is here.

The direct question about the silver investigation is contained in this 3-minute youtube.com clip...and I thank Matthew Nel for sending it. The link to that is here.

¤ The Funnies

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¤ The Wrap

Socialism in general has a record of failure so blatant, that only an intellectual could ignore or evade it. - Thomas Sowell

Yesterday was just another day at the office for JPMorgan et al...as their handiwork in gold and silver during the Comex trading session, was pretty much visible to all of those who cared to look.

It was another light volume day as well...and the CME's preliminary volume report for Tuesday shows that there are still about 250,000 gold contracts open in December...along with 60,000 silver contracts. Except for the 5 percent or less of those that will stand for delivery in December, everyone else has to sell or roll out of these positions by November 27th. So, based on that, we have some absolutely enormous volume days still ahead of us...and Ted's and my big fears are that it will be accompanied by an engineered price decline by "da boyz".

I was very encouraged to see Bart Chilton show up on Russia Today yesterday. The sharp-as-a-tack Lauren Lyster put Bart's feet to the fire...and now the CFTC is pretty much on the hook to resolve this issue...and it's looking less likely that JPMorgan Chase is going to be able to use their "Get-out-of-jail-free" card this time around. I think it's fairly safe to say that, thanks to Ted Butler's pioneering work on this issue, everyone knows that JPMorgan Chase is the big short in the silver market by now...and you have to wonder just how much pressure they're under, both internally and externally, to resolve this issue. One thing is for sure...and that is that the noose is tightening around their necks and, like Ted, I'd guess that this issue will not resolve itself quietly.

I'm also curious to know how warm it's getting over at Canada's Scotiabank/Scotia Mocatta...as it's my opinion that they are the big #2 short in the silver market...and between them and JPMorgan Chase, they're collectively short just about 45% of the entire Comex futures market in silver on a net basis.

But nobody knows for sure just how this is going to turn out exactly...however it sure looks like the issue will get resolved...but as for timing, it's hard to say.

As has been the case lately, neither gold nor silver did much during the Far East trading session...and as I write this paragraph at 2:20 a.m. Eastern time, we're still about forty minutes away from the London open. Volumes are vapour...and the dollar index isn't doing a thing.

Two hours into the London trading day, volumes are still very light...and there are few roll-overs out of the December contract, but I expect that to change very quickly once New York begins to trade. The dollar index is hanging in there just above the 81.00 mark...and the prices of both metals are basically unchanged from Tuesday's close.

The next couple of weeks are going to be very interesting. As I've said many times in the past month or so, I could rationally explain a price explosion or price implosion in either gold or silver...and it's just a matter of which come first and how big it will be.

I await the Comex open with great interest.

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