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BarCap said it expects precious metals to be one of the commodity price leaders in the second quarter, citing the "resumption of the kind of currency debasement/inflation concerns that have been the big driver of gold and silver prices over the past 12 months". It recommended that investors take a long position in December 2012 palladium, saying lower Russian exports should push the market into a supply deficit and bring prices "significantly above current levels" by later this year. BarCap put a second-quarter price of $745 per ounce for palladium futures on the London Metal Exchange, versus the past four weeks' average of $701. Spot palladium on the LME hit a session bottom below $645 on Thursday.

Buying gold is not just a way to resist the tyranny of banksters, but if bankster-run governments call for citizens to turn over their gold, as has now happened in Turkey, citizens should respond not by acquiescing to these suicidal calls, but by converting more of their fiat currency into gold. 

The global economy remains on shaky ground.  China’s manufacturing activity contracted for its 5th straight month, the US recovery is still very early to call, and the euro zone debt crisis may not be finished. Eurozone PMI data is due later today which will show how the economy is doing after Greece averted default earlier this month. Thomson Reuters GFMS have said that gold at $2,000/oz is possible - possibly in late 2012 or early 2013. Thomson Reuters GFMS Global Head of metals analytics, Philip Klapwijk, featured on Insider this morning and advised investors to "buy this gold dip”.  Gold should be bought on this correction especially if we go lower still as we may need a shake-out of "less-committed investors." Klapwijk suggested that a brief dip below $1,600 is on the cards but the global macro environment still favours investment, notably zero-to-negative real interest rates and he would not rule out further easing by either the ECB or the Fed before year end.

Apple decide to spread its cash to shareholders.  The more disconerting question: Is this the best Apple can come up with to put its cash mountain to good use, given the company is the leader in innovation and creativity?  

Nope, I wasn't drunk.

Jewelers in India are protesting the tax hike on gold imports and plan to keep their shops closed for two more days. This is India’s first nationwide strike in seven years and shows how important the gold industry is in India. The excise duty hike is expected to lead to less demand however Indian demand may again prove to be robust despite tax increases. PDR Gold Trust, the world's largest gold-backed ETF, said its gold holdings remained unchanged at 1,293.268 metric tonnes for the 5th straight session on Monday, despite the drop in prices last week. Gold will have a “sharp” rally as the U.S. boosts monetary stimulus because of a faltering economy in the coming months, Societe Generale said in a report that was picked up by Bloomberg. Data on U.S. gross domestic product in the first and second quarters will “surprise dramatically to the downside,” the bank said today in a report. Meanwhile, ANZ has said that central bank gold buying may lead to a nominal gold record price in 2012 and prices to average $1,744/oz from $1,571/oz in 2011.

Wherein Tom Day of Sungard drops out of hyperspace just long enough to write the following missive on the PRMIA DC web rant soapbox and get a few hours sleeep.  Ode to Frank Partnoy. --  Chris

While SEC's rejection of a proposal by a group of religious institutions shareholders requiring an independent examination of Goldman's executive pay could be interpreted as a victory, it doesn't make the issue go away for Goldman 

Gold traded lower on Friday, moving towards a third straight week of losses on the backdrop of a recovering US economy, which prompted investors to put their money in other vehicles, while India’s plan to double the import duty on gold bullion erased some early gains. On news that Finance Minister Pranab Mukherjee proposed to double the 4% customs duty on gold from April 2012, physical dealers saw some panic buying from India, the world’s largest gold consumer. In January, India raised the gold import duty 90% and doubled the tax on silver as the government is struggling with a growing fiscal deficit and looked to increase revenues. Growing subsidies for fuel and food have left the government struggling to meet its budget target.  Indian investors, who are the largest consumer group of gold in the world, rushed to buy gold in advance of the government’s plan to increase the 4% customs tax in April 2012. The resulting gains where then eroded by stronger then expected US economic growth numbers.  

All you need to read.

South Africa's gold output fell again in January and was down a very large 11.3% in volume terms in January.  Annual gold production is set to be close to 220 tonnes which is a level of gold production not seen since 1922 (see chart below). The falls were seen only in the gold market with production of other minerals holding up with total mineral production down only 2.5% compared with the same month last year. South Africa as recently as two decades ago was the world's largest producer of gold by a huge margin. Only 40 years ago South Africa produced more than 1,000 tonnes of gold per annum but will only produce some 220 tonnes in 2012. Production peaked in 1970 and has been falling steadily and sharply since. The nearly 80% fall in South African gold production has led to it being recently overtaken by China, Australia and the U.S.  It is now even at risk of being overtaken by Russia. The massive 11.3% decline in South Africa was more than even that seen in December when gold output fell by 8.2%. The continuing output decline is due to many of the country's biggest gold mining operations having reached the ends of their lives and having closed down.

• Obama, Cameron discussed tapping oil reserves (Reuters)
• Greek Bonds Signal $2.6 Billion Payout on Credit-Default Swaps (Bloomberg)
• China leader's ouster roils succession plans (Reuters)
• China’s Foreign Direct Investment Falls for Fourth Month (Bloomberg)
• Greek Restructuring Delay Helps Banks as Risks Shift (Bloomberg)
• Concerns Rise Over Eurozone Fiscal Treaty (FT)
• Home default notices rise in February: RealtyTrac (Reuters)
• China PBOC Drains Net CNY57 Bln (WSJ)

Gregg Smith quit Goldman in the grand style on New York Times blasting GS culture of greed.  Goldman's own track record supports Smith's statement.

If the Fed thought it could boldly go where hundreds of millions have gone before (in a vain attempt to be cool, hip and relevant - Twitter of course - with the @FederalReserve handle naturally), all in a quest for faux transparency and openness, which nobody who is even remotely familiar with the Fed's actions is buying, without getting a few heckles in the process, it was wrong. Unfortunately, as the currency debasement race has simply taken a short breather ahead of a presidential election and a possible regional war with wide-ranging commodity price implications, before it resumes into the frantic final lap, the below sample is merely a modest appetizer of what is yet to come.

As of this morning the Federal Reserve is officially on twitter and can be followed at @federalreserve. This is truly great news as it means that the US debt will have to be limited to at most 140 zeroes! Then again, after yesterday who cares about the Fed?Where is uber-boss Jamie Dimon's twitter account?