John Hathaway - 8 Key Charts, Gold, Fed & The Big Picture

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/4/22_John_Hathaway_-_8_Key_Charts,_Gold,_Fed_%26_The_Big_Picture.html

India's Jewellers End Gold Strike As Government Caves On Excise Duty: Pent Up Gold Demand To Be Unleashed

"A month ago, after causing a spike in cotton prices following the imposition of an export ban, India promptly overturned said surprising move following a surge in protest from not only various trade local groups, but more importantly China, whose already razor thin margins would become negative if input costs soared even further. The whole process lasted about 72 hours from beginning to end. Days after, desperate to fund ongoing budget shortfalls, the government shifted its attention to price controls in a market it knew China would absolutely not mind to having the price kept artificially low - gold. What happened then was an announcement by the government to impose to levy an excise duty on unbranded jewelry. The response was swift - a countrywide strike among India's jewellers who all went dark, crippling demand from one of the traditionally strongest gold markets in the world. And all this happening at a time when the wedding season is at its peak, with Akshaya Tritiya, one of the biggest gold buying festivals later in the month, making the period crucial for jewellers. As of hours ago, the Indian finance ministry has caved, and while it took three days to end the cotton export ban, it took three weeks to end the excise duty proposal, India's Finance Minister Pranab Mukherjee said that the government would consider scrapping a budget proposal to levy an excise duty on unbranded jewellery. The result will be three weeks of pent up demand for precious metals being unleashed suddenly, likely pushing spot gold far higher, to where it would be had this latest artificial price control never been established..."

at http://www.zerohedge.com/news/indias-jewellers-end-gold-strike-government-caves-excise-duty-pent-gold-demand-be-unleashed

El-Erian On The Bad Jobs Number: 'THE IMPLICATIONS GO BEYOND ECONOMICS'

"PIMCO CEO Mohamed El-Erian is shaken by today's disastrous jobs report.
Writing on FT.com, El-Erian listed off the disappointing metrics of the report, but he warns of much worse.

These disappointments partly reflect changing seasonal factors, including the prior impact of this winter’s unusually mild weather. But there is something much larger in play, and the implications go beyond economics; they influence key elements of the political narrative for the upcoming presidential and congressional elections.

The report demonstrates that firms "lack conviction" to hire for "expected future business."
Why? Uncertainty about everything, writes El-Erian:

American consumers, as a group, still carry too much debt and have to cope with higher oil prices. The prospects for exports, which have grown markedly, are gradually dimming now that the rest of the world is slowing. Meanwhile, policymakers have yet to find a way to deal properly with a year-end fiscal cliff, the result of Washington’s repeated inability to design coherent fiscal policy.

This demand uncertainty compounds worrisome structural impediments to growth.

His evidence that we already face structural problems: 5 million long-term unemployed; 9-month average time out of work; 25% unemployment for 16-19 year olds; and 12.6% unemployment for those without high school degrees..."

at http://www.businessinsider.com/el-erian-jobs-miss-2012-4?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+clusterstock+%28ClusterStock%29#ixzz1rIEleWaC

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Embry: Gartman Inept, CNBC Wrong, Gold Demand off the Hook

"With tremendous volatility in gold and silver, and oil holding well above the $103 level, King World News interviewed John Embry, Chief Investment Strategist of the $10 billion strong Sprott Asset Management. Embry told KWN that bullion dealers are telling him phones are ring off the hook and demand is incredible..."

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/4/6_Embry__Gartman_Inept,_CNBC_Wrong,_Gold_Demand_off_the_Hook.html

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John Williams - Consumers Crushed & Economy Collapsed

 

"Investors have expressed confusion recently because parts of the economy are clearly collapsed, but restaurants remain packed in many areas. John Williams clears up the confusion by demonstrating that real GDP remains collapsed, and that the hype from Wall Street about a recovery is a lie. Williams, who founded ShadowStats, also illustrates, in reality, how the consumer remains “crushed.” Here is what Williams had to say about the situation: “Broad U.S. business activity remains far from being recovered, despite the ongoing GDP-reporting nonsense that shows inflation-adjusted economic activity above the peak levels that preceded the 2007 recession.”

John Williams continues:

“In an environment where politicians and Wall Street increasingly are hyping an economic recovery ... Main Street U.S.A. usually has a pretty good sense of actual business activity, irrespective of the hype out of Wall Street or Pennsylvania Avenue.

As discussed in the hyperinflation report, a major reporting problem in the system is the understatement of inflation used in deflating the economic series. The use of understated inflation in deflating data results in an overstatement of the inflation-adjusted numbers. Following are graphs that represent official reporting or that have been corrected, at least partially, for inflation understatement. These graphs are updated from the referenced hyperinflation report..."

at  http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/3/31_John_Williams_-_Consumers_Crushed_%26_Economy_Collapsed.html

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World Gold Council: Gold Demand Will Shine Even Brighter in 2010

"2009 may have been great for gold. But will it shine even brighter in 2010?

Yes, according to the World Gold Council's most recent update of their popular Gold Demand Trends report. In the study were a few surprises, especially the contention that in 2010, worldwide demand for gold still has higher to go—much higher."

at http://seekingalpha.com/article/209649-world-gold-council-gold-demand-will-shine-even-brighter-in-2010?source=feed