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Market Update from ITM Trading, Inc

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					                        Market Update from ITM Trading, Inc.

1.888.OWN.GOLD                                        Contact us: services@itmtrading.com
MARKET UPDATE                                                         January 4, 2013
                          From the Desk of Craig Griffin

                                 Last week I wrote:

  "Here is what I think...I believe that big money is not making any decisions
   based upon going over the fiscal cliff. The stock market, in all its wisdom
does not believe we are going over the FC for any meaningful period of time.
 In other words, big money believes the problem is going to be pushed down
the road. Of course they will kick the can down the road until they can not do
so any longer! At that point no one will show up to buy our bonds and no one
             will want to hold U.S. Dollars! Are we there yet? No!"

"This is also reflected in the gold movement...gold is now under $1700 and if
  big money believed the FC was a REAL problem TODAY gold would be
                                    soaring!"

I had stated this opinion in earlier updates as well. I imagine that you have noticed
                 by now that the U.S. did not go over the fiscal cliff.

I went on to say that I felt that the Fiscal Cliff would be used as the excuse that the
U.S. economy went into a recession in 2013. However, I don't think a recession will
begin in 2013. Why? Because I believe it began in the summer of 2012, to be more
                                  specific, July of 2012.

   Below is piece on the debt and the dollar from Richard Russell's Dow Theory
  Letters, January 2, 2013, Daily Remarks section. I believe this piece by Russell
               points out the biggest problems facing America today.

 According to Russell, gold will be the big benefactor! It is short and well worth the
                                        read.

                    I hope you had a joyous holiday season!
 And remember, "It would be unwise to acquire gold for the short term but it would
           also be foolish not to own some gold for the long term!"

                                   Craig P. Griffin
                                     President

         Richard Russell's Dow Theory Letters January 2, 2013 (Excerpt):

 Bull market or bear market? Below we see a listing of the year-end cost of
gold denominated in Federal Reserve Notes (these notes are now commonly
   called "dollars"). From a market standpoint, we're looking at one of the
 greatest bull markets in history. But ironically, referring to "dollars alone,"
             this is one of the worst bear markets I've ever seen.

Bear market? Sure, back in the year 2000, for only 273 dollars you could buy
  one ounce of gold. But by 2012, you needed over 1600 dollars to buy the
 same one ounce of gold. The eternal value of gold doesn't change. It's the
     purchasing power of the Federal Reserve note that has changed.


                                  2000 -- $273.60
                                  2001 -- $279.00
                                  2002 -- $348.20
                                  2003 -- $416.10
                                  2004 -- $438.40
                                  2005 -- $518.90
                                  2006 -- $638.00
                                  2007 -- $838.00
                                  2008 -- $889.00
                                 2009 -- $1096.50
                                 2010 -- $1421.40
                                 2011 -- $1531.00
                                 2012 -- $1675.00

   The price of gold in terms of "dollars" has now risen thirteen years in
    succession. But what is even more remarkable is the fact that most
Americans have totally ignored (even despised) this remarkable bull market.
 Let a stock rise seven or eight years in a row, and it will be the talk of Wall
          Street and the talk of every social gathering in the nation.

  Yet this amazing bull market in gold stands alone sneered at and almost
   hated. I've been in this business for over 60 years, and I've never seen
                             anything quite like it.

However, I do think I know something about human nature. What I've learned
about human nature is that it doesn't change. For instance, if a stock creeps
up year after year, sooner or later the crowd will discover it -- and then they'll
   pounce on it, ultimately sending that undiscovered stock far above its
                               reasonable price.

 My belief is that somewhere ahead, the crowd will "latch on to" gold. Then,
as disinterested in gold as they are now, the crowd will pile into gold with the
 same frenzy that overtook the storied "49ers" when they packed their bags,
  kissed their wives and kids good bye, and headed West in search of gold.

 Gold is the only item that elicits both greed and fear. The greed factor is so
well known that I don't have to explain it here. But the fear factor only arises
when men (and women) see the "value" of their money disappearing. Nothing
 concentrates the mind as dramatically as seeing the purchasing power of
     one's hard-earned income and savings being ruthlessly destroyed.

As I write, Ben Bernanke's Federal Reserve is systematically shaving off the
 purchasing power of the dollar in the same way that you can peel the layers
  off an onion. The US has been in the process of constructing the greatest
   credit bubble in history. The world has never seen anything like it. This
enormous bubble is now being attacked by the worldwide forces of deflation.
     Fed Chairman Bernanke is terrified by the mere thought of deflation.
Bernanke will not stand for deflation. He has said as much. And he will attack
  deflation and crumbling asset prices with all the inflationary power at his
                                  command.

   As the ocean of new dollars pours out of the computers of the Federal
Reserve, the purchasing power of the dollar erodes. It erodes slowly at first,
 but as the river of dollars turn into an ocean, slowly-rising inflation segues
  into a monster. Finally, the crowd recognizes what is happening to their
  money. The loaf of bread that cost a dollar last year suddenly costs four
dollars. The cup of coffee that cost a dollar last week goes on special today
 for two fifty. The college tuition that cost four thousand dollars now costs
     sixteen thousand and there's the extra for a dorm. You're suddenly
paralyzed. A light bulb in your head starts to glow. And just as suddenly, the
                        mad, frantic rush for gold is on.

Old timers shake their heads knowingly and repeat the old saw, "There's no
  fever like gold fever!" And the rush for the yellow metal turns into a full
                                    frenzy.

   Even as I write, the subtle but tell-tale signs of "gold-fever" are seen and
        heard. New gold funds and new gold ETFs are started. Full-page
  advertisements appear in the newspapers, drawing attention to the loss of
 purchasing power in the dollar, and lauding the advantages of owning gold
  and silver. Gold vending machines appear at airports and in European and
 Asian department stores. Pressure is rising to force lawmakers to elect gold
as legal tender. On March 29, 2011, the state of Utah passed a law stating that
 gold and silver will be legal tender in the state of Utah. Imagine, just imagine
  -- gold being treated as real money! That alone shows us how far and how
 completely insane the nation's attitude towards gold and silver has become.
Gold has been treated as money for 3,000 years. "As good as gold" is a well-
  known expression. Yet, today in the US, gold is not considered to be legal
                                      tender.

   No fiat money has lasted for as long as a century. The US has had prior
 experience with fiat money -- the Civil War Greenbacks, the "Bills of Credit"
 of the original American colonies, the ill-fated Continentals during the Civil
War. None of these have survived, and neither will the Federal Reserve notes
                      that we now refer to as "dollars."

 To receive ITM's Exclusive Report on the Euro and the financial pressures upon it, call
toll free 1 888 OWN GOLD (1 888 696 4653) and ask for your Copy of "Weathering The
                             European Economic Storm".

                                We are here to assist you.

 If you have questions about your existing account, or the precious metals market, please
             call us at 1.888.696.4653 or email services@ITMTrading.com.

                                        Regards,
                                      ITM Trading

   Before making a purchase please see ITM's Purchase Policies and Risk
                   Information Documents (link below):

           http://www.itmtrading.com/purchase-policies-and-procedures/

    *ITM Cannot provides assurance that our forecasts or projections regarding
appreciation in the value of rare gold coins or bullion or the markets for rare coins
or bullion will be achieved. Although we strive to provide analysis that we believe is
well thought out and sincerely reflects our opinion, we cannot and do not guarantee
our forecasts or projections and you and your financial advisor should conduct your
      own analysis of the rare coin and bullion market before purchasing coins.

				
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