http://www.caseyresearch.com/gsd/edition/very-different-platinum-market-swings-600000-ounce-deficit
A 'Very Different' Platinum Market Swings Into a 600,000 Ounce Deficit
Dec
15
"I'm ever conscious of the beating JPMorgan et al laid on the precious metals between Christmas and New Years in 2011"
¤ YESTERDAY IN GOLD AND SILVER
'Dead' would be a good word to describe the gold market everywhere on Planet Earth yesterday. Gold closed at $1,696.20 spot...down $1.10 from Thursday. Volume was microscopic at around 85,000 contracts.
The silver price chart was very similar right up until 10:00 a.m. in New York. From there it got sold off into the 1:30 p.m. Comex close...and then didn't do a lot after that.
Silver finished the Friday trading day at $32.31 spot...down 23 cents from Thursday. Volume was only around 27,500 contracts.
The dollar index opened at the 79.93 mark...and stayed mostly at that level until shortly before 8:00 a.m. in New York. From that point, the index rolled over...and by 12:15 a.m. Eastern time, it was down to its low of the day...around 79.51...down about 45 basis points from its early morning New York high. Then it recovered a hair going into the close...finishing the day at 79.56...down 37 basis points.
The effects of the decline in the dollar index were nowhere to be seen in either the gold or silver price yesterday.
Silver finished the Friday trading day at $32.31 spot...down 23 cents from Thursday. Volume was only around 27,500 contracts.
The effects of the decline in the dollar index were nowhere to be seen in either the gold or silver price yesterday.
* * *
The CME's Daily Delivery Report shows that 15 gold and 12 silver contracts were posted for delivery on Tuesday...and the link to yesterday's Issuers and Stoppers Report is here.
There were no reported changes in either SLV or GLD on Friday.
The U.S. Mint had a smallish sales report. They sold 1,000 ounces of gold eagles...and 2,500 one-ounce 24K gold buffaloes. Month-to-date the mint has sold 35,500 ounces of gold eagles...6,500 one-ounce 24K gold buffaloes...and 1,403,000 silver eagles. Based on this data, the silver/gold sales ratio stands at 27 to 1.
It was a very slow day the Comex-approved depositories on Thursday, as they reported receiving only 9,565 troy ounces of silver...and shipped nothing out the door.
The Commitment of Traders Report was as expected...a yawner.
In silver, JPMorgan et al decreased their net short position by a tiny 591 contracts. The Commercial net short position is currently a hair under 290 million ounces. The 'Big 4' are short 265.7 million ounces of that amount...or 50.7% of the entire Comex futures market in silver on a net basis. The '5 through 8' traders are short an additional 55.4 million ounces of silver, which represents 10.6 percent of the Comex short position on a net basis. So the 'Big 8' are short 61.3% of the entire Comex futures market in silver.
JPMorgan still short well over 30 percentage points of this amount...and it's my opinion that Scotiabank/Scotia Mocatta are short another 10+ percentage points. So between the two of them, they are short roughly 45% of the entire Comex futures market. The other two traders in the 'Big 4' hold immaterial positions...as do the four traders in the '5 through 8' category.
In gold, JPMorgan et al decreased their net short position by 2,716 contracts...and the Commercial net short position now sits at 21.49 million ounces. The 'Big 4' are short 13.44 million ounces of gold...or 37.0 percent of the entire Comex futures market in gold on a net basis. The '5 through 8' traders are short an additional 5.33 million ounces of gold...and this amount represents 14.7 percent of the Comex futures market on a net basis.
There were no reported changes in either SLV or GLD on Friday.
The U.S. Mint had a smallish sales report. They sold 1,000 ounces of gold eagles...and 2,500 one-ounce 24K gold buffaloes. Month-to-date the mint has sold 35,500 ounces of gold eagles...6,500 one-ounce 24K gold buffaloes...and 1,403,000 silver eagles. Based on this data, the silver/gold sales ratio stands at 27 to 1.
It was a very slow day the Comex-approved depositories on Thursday, as they reported receiving only 9,565 troy ounces of silver...and shipped nothing out the door.
The Commitment of Traders Report was as expected...a yawner.
In silver, JPMorgan et al decreased their net short position by a tiny 591 contracts. The Commercial net short position is currently a hair under 290 million ounces. The 'Big 4' are short 265.7 million ounces of that amount...or 50.7% of the entire Comex futures market in silver on a net basis. The '5 through 8' traders are short an additional 55.4 million ounces of silver, which represents 10.6 percent of the Comex short position on a net basis. So the 'Big 8' are short 61.3% of the entire Comex futures market in silver.
JPMorgan still short well over 30 percentage points of this amount...and it's my opinion that Scotiabank/Scotia Mocatta are short another 10+ percentage points. So between the two of them, they are short roughly 45% of the entire Comex futures market. The other two traders in the 'Big 4' hold immaterial positions...as do the four traders in the '5 through 8' category.
In gold, JPMorgan et al decreased their net short position by 2,716 contracts...and the Commercial net short position now sits at 21.49 million ounces. The 'Big 4' are short 13.44 million ounces of gold...or 37.0 percent of the entire Comex futures market in gold on a net basis. The '5 through 8' traders are short an additional 5.33 million ounces of gold...and this amount represents 14.7 percent of the Comex futures market on a net basis.
Using straight arithmetic, the 'Big 8' are short 51.7% of the entire Comex futures market in gold on a net [all reported spread trades subtracted from the open interest] basis.
The 'Big 8' are short 87.3% of the Commercial net short position in gold. But in silver, the 'Big 8' are short 110.7 percent of the Commercial net short position...with JPMorgan and [I believe] Scotiabank holding about almost half of that percentage between the two of them.
I'd also like to point out that these percentages of concentration are minimum numbers.
You can follow the historic and interactive COT data for gold here...and silver here. These charts are a bit slow to load...especially silver...so if you're using an older browser, it may take a while.
As always, here's this past week's Commitment of Traders data for the Big 4 and Big 8 traders in all commodities traded on the Comex as of the close of trading on Tuesday, December 11th. It's translated into "Days of World Production to Cover Short Positions"...but it's just a different name for the same data. It's my guess that 90 percent of the red line [the Big 4] in silver is represented by JPMorgan Chase and Scotiabank.
The 'Big 8' are short 87.3% of the Commercial net short position in gold. But in silver, the 'Big 8' are short 110.7 percent of the Commercial net short position...with JPMorgan and [I believe] Scotiabank holding about almost half of that percentage between the two of them.
I'd also like to point out that these percentages of concentration are minimum numbers.
You can follow the historic and interactive COT data for gold here...and silver here. These charts are a bit slow to load...especially silver...so if you're using an older browser, it may take a while.
As always, here's this past week's Commitment of Traders data for the Big 4 and Big 8 traders in all commodities traded on the Comex as of the close of trading on Tuesday, December 11th. It's translated into "Days of World Production to Cover Short Positions"...but it's just a different name for the same data. It's my guess that 90 percent of the red line [the Big 4] in silver is represented by JPMorgan Chase and Scotiabank.
* * *
selected news items and views......
Odds Rise for 'Fiscal Cliff' Fight Entering 2013
The "fiscal cliff" impasse is raising the odds that Congress will fail to meet a year-end deadline to avert steep tax hikes and budget cuts that could push the nation into another recession.
With talks between President Barack Obama and House of Representatives Speaker John Boehner at an apparent standstill, analysts said on Friday that it was increasingly likely that Washington won't be able to reach a deal before January 1.
With talks between President Barack Obama and House of Representatives Speaker John Boehner at an apparent standstill, analysts said on Friday that it was increasingly likely that Washington won't be able to reach a deal before January 1.
"It's time to contemplate a plunge off the cliff," Potomac Research Group analyst Greg Valliere wrote in a research note.
This Reuters story was posted on The New York Times website during the East Coast lunch hour yesterday...and I thank Phil Barlett for today's first story. The link is here.
Doug Noland: Hotel California
"You can check out any time you like...but you can never leave"...Hotel California...The Eagles
During his Wednesday press conference, chairman Bernanke downplayed the significance of the change from “twist” to outright balance sheet inflation. Wall Street analysts have generally downplayed this as well. Truth be told, no one has a clear view of the consequences of taking the Fed’s balance sheet from about $3.0 TN to perhaps $4.0 TN over the coming year or so. It’s worth noting that in previous periods of rapid balance sheet expansion, the Fed was essentially accommodating de-leveraging by players (hedge funds, banks, proprietary trading desks, REITs, etc.) caught on the wrong side of a market crisis. Does the Fed’s next Trillions worth of liquidity injections spur more speculation in bonds, stocks and global risk assets? Or, instead, will our central bank again provide liquidity for leveraged players looking to sell (many increased holdings with the intention of eventually offloading to the Fed)? It’s impossible to know today the ramifications of the Fed’s latest tack into uncharted policy territory. It will stoke some inflationary consequence no doubt, although the impact on myriad Credit Bubbles around the globe is anything but certain.
Clearer is that the Fed has again crossed an important line. There has been previous talk of Fed “exit strategies.” I’ll side with the Dallas Fed’s Richard Fisher, who Friday warned of “Hotel California” risk. There has also been this notion that the U.S. economy is progressing through a (“beautiful”) deleveraging process. Yet there should be little doubt that the Fed has now resorted to blatantly orchestrating a further leveraging of the U.S. economy. It will now become only that much more difficult (think impossible) for the Federal Reserve to extricate itself from this Inflationary Process.
Doug Noland at the top of his game. His Friday commentaries, when he writes them, are must reads for me...as is this one. It was posted on theprudentbear.com Internet site yesterday evening...and the link is here.
During his Wednesday press conference, chairman Bernanke downplayed the significance of the change from “twist” to outright balance sheet inflation. Wall Street analysts have generally downplayed this as well. Truth be told, no one has a clear view of the consequences of taking the Fed’s balance sheet from about $3.0 TN to perhaps $4.0 TN over the coming year or so. It’s worth noting that in previous periods of rapid balance sheet expansion, the Fed was essentially accommodating de-leveraging by players (hedge funds, banks, proprietary trading desks, REITs, etc.) caught on the wrong side of a market crisis. Does the Fed’s next Trillions worth of liquidity injections spur more speculation in bonds, stocks and global risk assets? Or, instead, will our central bank again provide liquidity for leveraged players looking to sell (many increased holdings with the intention of eventually offloading to the Fed)? It’s impossible to know today the ramifications of the Fed’s latest tack into uncharted policy territory. It will stoke some inflationary consequence no doubt, although the impact on myriad Credit Bubbles around the globe is anything but certain.
Clearer is that the Fed has again crossed an important line. There has been previous talk of Fed “exit strategies.” I’ll side with the Dallas Fed’s Richard Fisher, who Friday warned of “Hotel California” risk. There has also been this notion that the U.S. economy is progressing through a (“beautiful”) deleveraging process. Yet there should be little doubt that the Fed has now resorted to blatantly orchestrating a further leveraging of the U.S. economy. It will now become only that much more difficult (think impossible) for the Federal Reserve to extricate itself from this Inflationary Process.
Doug Noland at the top of his game. His Friday commentaries, when he writes them, are must reads for me...as is this one. It was posted on theprudentbear.com Internet site yesterday evening...and the link is here.
Everyone is fair game: Spy agency conducts surveillance on all US citizens
The Obama administration overruled recommendations from within the US Department of Homeland Security and implemented new guidelines earlier this year that allow the government to gather and analyze intelligence on every single US citizen.
Since the spring, a little-know intelligence agency outside of Washington, DC has been able to circumvent the Fourth Amendment to the US Constitution and conduct dragnet surveillance of the entire country, combing massive datasets using advanced algorithms to search and seize personal info on anyone this wish, reports the Wall Street Journal this week.
There’s no safeguard that says only Americans with criminal records are the ones included, and it’s not just suspected terrorists that are considered in the searches either. The National Counterterrorism Center (NCTC) has been provided with entire government databases and given nearly endless access to intelligence on everyone in the country, regardless of whether or not they’ve done anything that would have made them a person of interest. As long as data is “reasonably believed” to contain “terrorism information,” the agency can do as they wish.
What’s more is the NCTC can retain that information for years, reviewing it whenever they’d like to take a look.
This very disturbing essay was posted on the Russia Today website on Thursday evening...and it's Roy Stephens first contribution to today's column. If you live in the United States of Amerika...this might be worth your time. The link is here.
Since the spring, a little-know intelligence agency outside of Washington, DC has been able to circumvent the Fourth Amendment to the US Constitution and conduct dragnet surveillance of the entire country, combing massive datasets using advanced algorithms to search and seize personal info on anyone this wish, reports the Wall Street Journal this week.
There’s no safeguard that says only Americans with criminal records are the ones included, and it’s not just suspected terrorists that are considered in the searches either. The National Counterterrorism Center (NCTC) has been provided with entire government databases and given nearly endless access to intelligence on everyone in the country, regardless of whether or not they’ve done anything that would have made them a person of interest. As long as data is “reasonably believed” to contain “terrorism information,” the agency can do as they wish.
What’s more is the NCTC can retain that information for years, reviewing it whenever they’d like to take a look.
This very disturbing essay was posted on the Russia Today website on Thursday evening...and it's Roy Stephens first contribution to today's column. If you live in the United States of Amerika...this might be worth your time. The link is here.
Merkel sets limits on euro zone risk-sharing
European leaders agreed on Friday to press on with further steps to tackle their debt crisis but German Chancellor Angela Merkel threw out a proposal to boost risk-sharing with a fund to help euro zone states in trouble.
Germany's rejection of an idea strongly backed by France showed the potential for more tensions over crisis management, a day after the bloc clinched a deal on euro zone-wide banking supervision and approved long-delayed aid to Greece.
After more than eight hours of late-night talks, leaders promised to push ahead with setting up a mechanism to wind down problem banks and launched talks on how to make countries stick to economic targets with the help of a common fund.
But at an early morning news conference, Merkel made clear that proposals for a substantial "shock absorber" fund and common unemployment insurance were off the table, setting out a far more restrained carrot-and-stick vision.
This Reuters article was filed from Brussels early yesterday morning Eastern time...and I thank Ulrike Marx for her second story in today's column. The link is here.
Germany's rejection of an idea strongly backed by France showed the potential for more tensions over crisis management, a day after the bloc clinched a deal on euro zone-wide banking supervision and approved long-delayed aid to Greece.
After more than eight hours of late-night talks, leaders promised to push ahead with setting up a mechanism to wind down problem banks and launched talks on how to make countries stick to economic targets with the help of a common fund.
But at an early morning news conference, Merkel made clear that proposals for a substantial "shock absorber" fund and common unemployment insurance were off the table, setting out a far more restrained carrot-and-stick vision.
This Reuters article was filed from Brussels early yesterday morning Eastern time...and I thank Ulrike Marx for her second story in today's column. The link is here.
Summit Fatigue: EU Chooses Rest over Reform after Busy Year
By the time the 27 heads of state and government arrived in Brussels on Thursday evening, such ambition had been forgotten. It could be pre-Christmas exhaustion that got the better of the EU leaders, but enthusiasm for reform was nowhere to be found. One after another, they insisted that they would merely hold nonbinding talks about the deepening of the currency union. "A relaxed round on the future of the EU," is how Finnish Prime Minister Jyrki Katainen called it.
After nine hours of talks, the summit agreed on a five-page paper that, while called a "roadmap," is little more than a vague outline for the next six months. Indeed, the most concrete date mentioned is June 2013 -- by then, European Council President Herman Van Rompuy is to have worked out a solid timeline for the establishment of closer fiscal policy coordination among euro-zone member states. He is also to examine how bilateral reform treaties between the European Commission and individual common currency members could look in order to make reforms recommended by Brussels more binding. The creation of a fund -- referred to vaguely as "solidarity mechanisms" at the insistence of Germany -- that could be used to reward those countries serious about reform is also to be examined.
This spiegel.de article is very similar to the previous Reuters story, but the way it's written makes you wonder whether you're reading about the same event or not. This story is also courtesy of Ulrike Marx...and the link is here.
After nine hours of talks, the summit agreed on a five-page paper that, while called a "roadmap," is little more than a vague outline for the next six months. Indeed, the most concrete date mentioned is June 2013 -- by then, European Council President Herman Van Rompuy is to have worked out a solid timeline for the establishment of closer fiscal policy coordination among euro-zone member states. He is also to examine how bilateral reform treaties between the European Commission and individual common currency members could look in order to make reforms recommended by Brussels more binding. The creation of a fund -- referred to vaguely as "solidarity mechanisms" at the insistence of Germany -- that could be used to reward those countries serious about reform is also to be examined.
This spiegel.de article is very similar to the previous Reuters story, but the way it's written makes you wonder whether you're reading about the same event or not. This story is also courtesy of Ulrike Marx...and the link is here.
Japan hits out at S&P over 'significant' ratings problems
The country’s financial regulator criticised one of the world’s two largest rating agencies for errors in setting and publishing ratings on complex financial derivatives.
“Significant problems were identified with the company’s business operations from the perspective of the public interest and investor protection,” the Financial Services Agency said on Friday.
Credit rating agencies were lambasted for their role in deepening the financial crisis, when mortgage-backed debt they had awarded top ratings to rapidly lost value as US house prices fell. In a ruling in Australia last month, a judge found S&P liable for assigning misleading ratings to debt acquired by local governments in the run-up to the financial collapse.
This story was posted on the telegraph.co.uk Internet site yesterday afternoon GMT...and it is, once again, courtesy of Roy Stephens. The link is here.
“Significant problems were identified with the company’s business operations from the perspective of the public interest and investor protection,” the Financial Services Agency said on Friday.
Credit rating agencies were lambasted for their role in deepening the financial crisis, when mortgage-backed debt they had awarded top ratings to rapidly lost value as US house prices fell. In a ruling in Australia last month, a judge found S&P liable for assigning misleading ratings to debt acquired by local governments in the run-up to the financial collapse.
This story was posted on the telegraph.co.uk Internet site yesterday afternoon GMT...and it is, once again, courtesy of Roy Stephens. The link is here.
China, Japan caught in standoff over disputed islands...F-15 fighter jets scrambled
Chinese and Japanese aircraft were involved in a standoff in the skies above the Diaoyu Islands yesterday.
The situation remains under control, but Tokyo seems intent on upping the ante, observers said.
A Chinese marine surveillance plane, B-3837, was sent to join vessels patrolling the territorial waters around the islands, which belong to China, yesterday morning, said a statement issued by the State Oceanic Administration on its website.
The plane arrived in the area at about 10 a.m. and conducted joint patrols with a fleet of four surveillance ships.
The fleet ordered the Japanese ships that had entered China's territorial waters to leave the area immediately, the statement said.
Well, nobody want to blink here, as too much "honour" is involved. This is another must read for serious students of the "New Great Game". This is aChina Daily story that was picked up by the asianews.net Internet site on Friday...and I thank Ulrike Marx for her final contribution to today's column. The link is here.
The situation remains under control, but Tokyo seems intent on upping the ante, observers said.
A Chinese marine surveillance plane, B-3837, was sent to join vessels patrolling the territorial waters around the islands, which belong to China, yesterday morning, said a statement issued by the State Oceanic Administration on its website.
The plane arrived in the area at about 10 a.m. and conducted joint patrols with a fleet of four surveillance ships.
The fleet ordered the Japanese ships that had entered China's territorial waters to leave the area immediately, the statement said.
Well, nobody want to blink here, as too much "honour" is involved. This is another must read for serious students of the "New Great Game". This is aChina Daily story that was picked up by the asianews.net Internet site on Friday...and I thank Ulrike Marx for her final contribution to today's column. The link is here.
Two King World News Blogs
The first blog is with Egon von Greyerz...and it's headlined "Two Important Charts for Gold & Silver Investors". The last blog features Nigel Farage...and it's about "The Queen's Tour of Britain's Gold Vault".
A 'very different' platinum market swings into 600,000oz deficit
The platinum market is forecast to move into a deficit of 400,000 oz in 2012 from a surplus in 2011 according to the interim 2012 Johnson Matthey platinum report released today.
Severe disruption to platinum group metal mining following a series of wildcat strikes and violence on mines that started in August is expected to reduce supplies from South Africa by over 600,000 ounces says the research house.
South Africa constituted more than 70% of global supply of PGMs and the fall in production in the African nation will lead to a 10% decline in output to 5.84 million ounces this year.
This very short story showed up on the mining.com Internet site yesterday...and my thanks go out to Marshall Angeles for digging it up for us. The link is here.
Severe disruption to platinum group metal mining following a series of wildcat strikes and violence on mines that started in August is expected to reduce supplies from South Africa by over 600,000 ounces says the research house.
South Africa constituted more than 70% of global supply of PGMs and the fall in production in the African nation will lead to a 10% decline in output to 5.84 million ounces this year.
This very short story showed up on the mining.com Internet site yesterday...and my thanks go out to Marshall Angeles for digging it up for us. The link is here.
Colombian armed rebels tighten control over gold mining
The Revolutionary Armed Forces of Colombia (FARC) and a new generation of drug gangs (known locally as “Bacrims”) are increasingly turning to gold mining to finance their terrorist acts, reveals a report released Thursday by political risk firm Exclusive Analysis.
“FARC and drug gang involvement in gold mining increases extortion and property damage risks, particularly in Antioquia and Putumayo,” said Carlos Caicedo, head of Latin America forecasting.
The expert says that funds coming from mining operations are now the main income source for the revolutionary groups. In some provinces, he added, it has overtaken drug trafficking, especially in areas controlled by the FARC.
This is another story from the mining.com Internet site. This one was posted on Thursday...and I thank Ontario reader Richard O'Mara for sending it along. The link is here.
“FARC and drug gang involvement in gold mining increases extortion and property damage risks, particularly in Antioquia and Putumayo,” said Carlos Caicedo, head of Latin America forecasting.
The expert says that funds coming from mining operations are now the main income source for the revolutionary groups. In some provinces, he added, it has overtaken drug trafficking, especially in areas controlled by the FARC.
This is another story from the mining.com Internet site. This one was posted on Thursday...and I thank Ontario reader Richard O'Mara for sending it along. The link is here.
More than just costs are a concern at Barrick Gold’s $8.5B Pascua-Lama mega-mine
Standing on a precipice 5,200 metres above sea level, the air is thin and the vistas are long.
Just breathing is difficult at this altitude, with a howling wind disturbing the utter, majestic silence of the snow-capped Andes mountains, threatening to blow you over the edge.
You’d think you were alone at the top of the world.
But what happens up here in Pascua-Lama, where Canadian mining giant Barrick Gold is developing the first open-pit gold mine to straddle two countries, will have a huge impact on the people living in the valleys below on both sides of the border — for better or for worse.
This very long essay can be found on the National Post website...and it was posted there yesterday evening. The photo of the project alone is worth the trip. I thank Carl Lindfors for bringing it to our attention...and it's a must read in my opinion. The link is here.
Just breathing is difficult at this altitude, with a howling wind disturbing the utter, majestic silence of the snow-capped Andes mountains, threatening to blow you over the edge.
You’d think you were alone at the top of the world.
But what happens up here in Pascua-Lama, where Canadian mining giant Barrick Gold is developing the first open-pit gold mine to straddle two countries, will have a huge impact on the people living in the valleys below on both sides of the border — for better or for worse.
This very long essay can be found on the National Post website...and it was posted there yesterday evening. The photo of the project alone is worth the trip. I thank Carl Lindfors for bringing it to our attention...and it's a must read in my opinion. The link is here.
* * *
¤ THE WRAP
Our true choice is not between tax reduction, on the one hand, and the avoidance of large federal deficits on the other. It is increasingly clear that no matter what party is in power, so long as our [needs] keep rising, an economy hampered by restrictive tax rates will never produce enough revenues to balance our budget—just as it will never produce enough jobs or enough profits. - President John F. Kennedy to the Economic Club of New York...1962
Today's 'blast from the past' is a pop song by a group that found success here in Canada first...and then later in the U.S. and around the world. This is one of the first tunes that brought them fame in the mid 1970s...and the rest, as they say, is history. Everyone should know it...and the link is here. While I'm in the mood...here's another, and even bigger hit of theirs from 1987, linked here.
The classical 'blast from the past' is an old chestnut that I pull out every year at this time. It's a short piece from Handel's Messiah...and sung by Dame Emma Kirkby. I consider her interpretation of this work to be definitive. It's absolutely divine...and the link ishere.
What little price action there was yesterday is not worthy of further comment in this space...although I note that the silver price was taken to new lows for this move down.
Except sit here and watch, there's not a lot we can do going forward. I'm still not sure whether the 200-day moving averages are targets this time or not...but I'm ever conscious of the beating JPMorgan et al laid on the precious metals between Christmas and New Years in 2011. Could it happen again? Sure...as the short positions in both gold and silver are still there...greatly reduced in gold, to be sure...but still obscene and grotesque in silver.
Here are the 1-year charts for both gold and silver to give you the lay of land. I doubt very much that we'll hit the lows of last December, but "da boyz" could certainly hit gold for at least fifty bucks...and silver for two or three bucks.
Today's 'blast from the past' is a pop song by a group that found success here in Canada first...and then later in the U.S. and around the world. This is one of the first tunes that brought them fame in the mid 1970s...and the rest, as they say, is history. Everyone should know it...and the link is here. While I'm in the mood...here's another, and even bigger hit of theirs from 1987, linked here.
The classical 'blast from the past' is an old chestnut that I pull out every year at this time. It's a short piece from Handel's Messiah...and sung by Dame Emma Kirkby. I consider her interpretation of this work to be definitive. It's absolutely divine...and the link ishere.
What little price action there was yesterday is not worthy of further comment in this space...although I note that the silver price was taken to new lows for this move down.
Except sit here and watch, there's not a lot we can do going forward. I'm still not sure whether the 200-day moving averages are targets this time or not...but I'm ever conscious of the beating JPMorgan et al laid on the precious metals between Christmas and New Years in 2011. Could it happen again? Sure...as the short positions in both gold and silver are still there...greatly reduced in gold, to be sure...but still obscene and grotesque in silver.
Here are the 1-year charts for both gold and silver to give you the lay of land. I doubt very much that we'll hit the lows of last December, but "da boyz" could certainly hit gold for at least fifty bucks...and silver for two or three bucks.
(Click on image to enlarge)
One thing is for sure...and that is with the rampant money printing going on world wide...it's only a matter of if not when inflation everywhere becomes far more noticeable...and it's a given that we'll see substantially higher precious metal prices despite the efforts of JPMorgan Chase et al when that time arrives.
That's all I have for the day...and the week. I'll see you here on Tuesday...or Wednesday, depending where on Planet Earth you live.
That's all I have for the day...and the week. I'll see you here on Tuesday...or Wednesday, depending where on Planet Earth you live.
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