http://www.silverdoctors.com/gata-discovers-1999-imf-report-stating-80-central-banks-lent-over-15-of-official-gold-reserves/
and......
http://www.caseyresearch.com/gsd/edition/what-315-billion-worth-gold-looks
GATA DISCOVERS 1999 IMF REPORT STATING 80 CENTRAL BANKS LENT OVER 15% OF OFFICIAL GOLD RESERVES
GATA has obtained an IMF report from 1999, which reveals that over 80 central banks had lent at least 15% of their official gold reserves into the market. This gold was lent to the primary dealers, who turned around and dumped the bullion on the market to raise capital, and then plowed the capital into interest bearing debt of the issuing governments. Price of gold suppressed, free arbitrage for the bullion banks/primary dealers…pretty much a huge win/win all the way around….provided no one ever decides they want their phyzz back.and......
http://www.caseyresearch.com/gsd/edition/what-315-billion-worth-gold-looks
This is What $315 Billion Worth of Gold Looks Like
Dec
8
"Friday's early price action in New York was normal for a day when the jobs numbers are posted."
¤ YESTERDAY IN GOLD AND SILVER
Gold rose a few dollar in Far East trading on their Friday, but about thirty minutes before London opened, the selling pressure began. The gold price was a bit below the $1,700 mark when the jobs report was issued at 8:30 a.m. Eastern time...and along with that news, came the almost obligatory hit to the gold price.
That didn't last long...and by 9:30 a.m. gold was once again back above the $1,700 mark...and above Thursday's New York close. But at that point, either the buyer disappeared, or a not-for-profit seller showed up...and the gold price didn't do much for the rest of the day.
Gold closed at $1,704.50 spot...up $4.50 on the day. Volume was decent at around 152,000 contracts.
That didn't last long...and by 9:30 a.m. gold was once again back above the $1,700 mark...and above Thursday's New York close. But at that point, either the buyer disappeared, or a not-for-profit seller showed up...and the gold price didn't do much for the rest of the day.
Gold closed at $1,704.50 spot...up $4.50 on the day. Volume was decent at around 152,000 contracts.
The silver price was far more 'volatile'. It saw its Far East high around 1:00 p.m. in Hong Kong...and the resulting sell off took the price down to its London low, which came shortly before 1:00 p.m. GMT...8 a.m. in New York.
From that point, the price blasted off until the Comex open...and from there got sold down to its New York low which came around 8:45 a.m. Eastern. The price then moved sharply higher, only to run into the same obstacle the gold did around 9:45 a.m. That was silver's high tick of the day...$33.21 spot...and from there it got sold back down to $32 the ounce...and struggled back a dime after lunch in New York.
After looking at Kitco's high and low tick prices, I have come to the conclusion that neither is believable.
Silver closed at $33.11 spot...up 8 cents. Net volume was pretty decent as well...around 42,500 contracts.
From that point, the price blasted off until the Comex open...and from there got sold down to its New York low which came around 8:45 a.m. Eastern. The price then moved sharply higher, only to run into the same obstacle the gold did around 9:45 a.m. That was silver's high tick of the day...$33.21 spot...and from there it got sold back down to $32 the ounce...and struggled back a dime after lunch in New York.
After looking at Kitco's high and low tick prices, I have come to the conclusion that neither is believable.
Silver closed at $33.11 spot...up 8 cents. Net volume was pretty decent as well...around 42,500 contracts.
* * *
The CME's Daily Delivery Report showed that only 4 gold and 6 silver contracts were posted for delivery on Tuesday within the Comex-approved depositories. The CME's preliminary volume report for Friday's trading shows that there are still a bit over 500 contracts in both gold and silver still left to deliver in the December delivery month.
Over at GLD, the gold keeps pouring in. An authorized participant added another 58,119 troy ounces on Friday...and there were no reported changes in SLV.
The U.S. Mint had another sales report. They sold 2,500 ounces of gold eagles...500 one-ounce 24K gold buffaloes...and 150,000 silver eagles. In the first week of December the mint has sold 26,500 ounces of gold eagles...4,000 one-ounce 24K gold buffaloes...and 903,000 silver eagles. Based on these sales, the silver/gold ratio for the month-to-date is just under 30 to 1.
Over at the Comex-approved depositories on Thursday they received 1,245,051 troy ounces of silver...and didn't ship any out. Virtually all of the silver received went into the Scotia Mocatta depository...and the link to that activity is here.
The Commitment of Traders Report was interesting.
Ted and I were both rather surprised at the COT numbers in silver, as it showed virtually no improvement in the Commercial net short position...only 820 contracts. Considering the fact that silver 'fell' almost two bucks during the reporting week, it was a bit of shock. Ted couldn't figure out why they technical funds didn't liquidate many of their speculative long positions in the face of such a big price decline.
Ted did mention that JPMorgan is short just about 36,500 Comex futures contracts in silver...and considering the fact that the total open interest...net of the Non-commercial spread trades...is only 117,651 contracts, they are still short well north of 31 percent of the entire silver market.
As of the Tuesday cut-off, the '4 or less' traders are short north of 46 percent of the Comex futures market in silver in total...and I'd guess that at least two thirds of the remaining 15 percentage points not held by JPM, is held by Scotiabank. That sure doesn't leave much for the #3 and #4 trader in the 'Big 4' category, now does it?
Over at GLD, the gold keeps pouring in. An authorized participant added another 58,119 troy ounces on Friday...and there were no reported changes in SLV.
The U.S. Mint had another sales report. They sold 2,500 ounces of gold eagles...500 one-ounce 24K gold buffaloes...and 150,000 silver eagles. In the first week of December the mint has sold 26,500 ounces of gold eagles...4,000 one-ounce 24K gold buffaloes...and 903,000 silver eagles. Based on these sales, the silver/gold ratio for the month-to-date is just under 30 to 1.
Over at the Comex-approved depositories on Thursday they received 1,245,051 troy ounces of silver...and didn't ship any out. Virtually all of the silver received went into the Scotia Mocatta depository...and the link to that activity is here.
The Commitment of Traders Report was interesting.
Ted and I were both rather surprised at the COT numbers in silver, as it showed virtually no improvement in the Commercial net short position...only 820 contracts. Considering the fact that silver 'fell' almost two bucks during the reporting week, it was a bit of shock. Ted couldn't figure out why they technical funds didn't liquidate many of their speculative long positions in the face of such a big price decline.
Ted did mention that JPMorgan is short just about 36,500 Comex futures contracts in silver...and considering the fact that the total open interest...net of the Non-commercial spread trades...is only 117,651 contracts, they are still short well north of 31 percent of the entire silver market.
As of the Tuesday cut-off, the '4 or less' traders are short north of 46 percent of the Comex futures market in silver in total...and I'd guess that at least two thirds of the remaining 15 percentage points not held by JPM, is held by Scotiabank. That sure doesn't leave much for the #3 and #4 trader in the 'Big 4' category, now does it?
The '5 through 8' traders on the short side in silver are short an additional 9.3 percent of the silver market. So the 'Big 8' in total are short about 56% of the entire Comex futures market in silver.
It was a different story in gold, as the Commercial net short position declined by a massive 41,116 contracts...or 4.11 million ounces. That's one of the biggest week-over-week decline that I can ever remember seeing in the ten-odd years that I've been watching these numbers.
The Commercial net short position fell all the way down to 21.76 million ounces.
As of the Tuesday cut-off, the 'Big 4' short holders in gold are short 35.1% of the Comex futures market in gold...and the '5 through 8' traders are short an additional 11.8 percentage points. The grand total for the 'Big 8' is 46.9%...that's the percentage of the Comex gold market held short by the eight largest traders...a big number to be sure, but a monstrous drop from the prior week. This decline stands out like the proverbial sore thumb on the gold COT chart linked here.
Here's Nick Laird's weekly "Days of World Production to Cover Short Positions" chart.
It was a different story in gold, as the Commercial net short position declined by a massive 41,116 contracts...or 4.11 million ounces. That's one of the biggest week-over-week decline that I can ever remember seeing in the ten-odd years that I've been watching these numbers.
The Commercial net short position fell all the way down to 21.76 million ounces.
As of the Tuesday cut-off, the 'Big 4' short holders in gold are short 35.1% of the Comex futures market in gold...and the '5 through 8' traders are short an additional 11.8 percentage points. The grand total for the 'Big 8' is 46.9%...that's the percentage of the Comex gold market held short by the eight largest traders...a big number to be sure, but a monstrous drop from the prior week. This decline stands out like the proverbial sore thumb on the gold COT chart linked here.
Here's Nick Laird's weekly "Days of World Production to Cover Short Positions" chart.
From the Commitment of Traders data for positions held at the close of Comex trading on Tuesday, also came the December Bank Participation Report...and for this one day a month, we can compare apples to apples.
Because there was no big decline in the Commercial net short position in silver in this week's COT Report, the BPR shows that '3 or less' U.S. banks increased their short position in silver from the November BPR. In this case they increased it by 4,321 Comex contracts...and they now sit at 39,573 Comex contracts held short. Don't forget that Ted Butler mentioned that JPM's short position sits at around 36,500 contracts...so the '2 or less' U.S. banks holding the balance [about 3,000 contracts between them] are basically immaterial in the grand scheme of things.
[As an aside at this point, Ted Butler has always said that a reasonable Comex position limit in silver for any trading entity was 1,500 contracts in all months. In their infinite wisdom, the Comex/CME Group decided that it should be 5,000 contracts in all months combined...per trading entity...which is basically the same as no limit at all. Please note that as of Tuesday's COT Report, JPMorgan Chase is short seven times the CFTC-recommended drive-a-bus-through position limit all by themselves.]
All questions and comments concerning this should be directed to CFTC Commissioner Bart Chilton.
In silver there are 15 non-U.S. banks that are currently short 18,199 Comex contracts between them. That's an increase of 3,913 contracts from the prior month. Of that 18,199 contracts, I'd be prepared to bet serious money that Canada's Scotiabank holds at least two thirds of that amount short all by itself. That leaves 14 other non-U.S. banks holding the remaining 6,000 odd contracts between them...an immaterial amount per bank.
This is not rocket science, dear reader. Two banks, JPMorgan and Scotiabank, are short about 48,500 Comex silver contracts between them...about 42% of the entire Comex silver market. And using the data from the COT report further up, I came up with almost precisely the same percentage. You don't have to look any further than this, as they are the silver market....with the raptors along for the ride.
Because there was no big decline in the Commercial net short position in silver in this week's COT Report, the BPR shows that '3 or less' U.S. banks increased their short position in silver from the November BPR. In this case they increased it by 4,321 Comex contracts...and they now sit at 39,573 Comex contracts held short. Don't forget that Ted Butler mentioned that JPM's short position sits at around 36,500 contracts...so the '2 or less' U.S. banks holding the balance [about 3,000 contracts between them] are basically immaterial in the grand scheme of things.
[As an aside at this point, Ted Butler has always said that a reasonable Comex position limit in silver for any trading entity was 1,500 contracts in all months. In their infinite wisdom, the Comex/CME Group decided that it should be 5,000 contracts in all months combined...per trading entity...which is basically the same as no limit at all. Please note that as of Tuesday's COT Report, JPMorgan Chase is short seven times the CFTC-recommended drive-a-bus-through position limit all by themselves.]
All questions and comments concerning this should be directed to CFTC Commissioner Bart Chilton.
In silver there are 15 non-U.S. banks that are currently short 18,199 Comex contracts between them. That's an increase of 3,913 contracts from the prior month. Of that 18,199 contracts, I'd be prepared to bet serious money that Canada's Scotiabank holds at least two thirds of that amount short all by itself. That leaves 14 other non-U.S. banks holding the remaining 6,000 odd contracts between them...an immaterial amount per bank.
This is not rocket science, dear reader. Two banks, JPMorgan and Scotiabank, are short about 48,500 Comex silver contracts between them...about 42% of the entire Comex silver market. And using the data from the COT report further up, I came up with almost precisely the same percentage. You don't have to look any further than this, as they are the silver market....with the raptors along for the ride.
In gold, it was a different story entirely after the eye-watering decline in the Commercial net short position reported in this week's COT Report.
The December BPR showed that 5 'U.S. banks' were short 106,399 Comex gold contracts...a decline of 8,291 contracts from the November BPR. That 106,399 contracts represents 25.8% of the entire Comex futures market in gold.
The December BPR showed that 19 'non-U.S. banks' were short 44,707 Comex contracts...a drop of 14,729 Comex contracts. I'd bet that the Bank of Nova Scotia owns a fairly substantial chunk of this position as well...and that leaves the 18 remaining 'non-U.S.' banks holding the balance between them.
Once again it's a case of a tiny handful of banks running the show in gold...with the raptors working in collusion.
By the way, I still haven't heard back from the ombudsman at Scotiabank whether they are, or they aren't, the new 'Non-U.S. Bank' named in the October Bank Participation Report. The bank has had every opportunity to deny that they are...but they haven't. As you know, all I and other readers have received to date are "non-denial denials". I'll contact them again on Monday and see where everything stands...and I'll let you know.
Here are a couple of charts courtesy of Washington state reader S.A. that require no further embellishment...
The December BPR showed that 5 'U.S. banks' were short 106,399 Comex gold contracts...a decline of 8,291 contracts from the November BPR. That 106,399 contracts represents 25.8% of the entire Comex futures market in gold.
The December BPR showed that 19 'non-U.S. banks' were short 44,707 Comex contracts...a drop of 14,729 Comex contracts. I'd bet that the Bank of Nova Scotia owns a fairly substantial chunk of this position as well...and that leaves the 18 remaining 'non-U.S.' banks holding the balance between them.
Once again it's a case of a tiny handful of banks running the show in gold...with the raptors working in collusion.
By the way, I still haven't heard back from the ombudsman at Scotiabank whether they are, or they aren't, the new 'Non-U.S. Bank' named in the October Bank Participation Report. The bank has had every opportunity to deny that they are...but they haven't. As you know, all I and other readers have received to date are "non-denial denials". I'll contact them again on Monday and see where everything stands...and I'll let you know.
Here are a couple of charts courtesy of Washington state reader S.A. that require no further embellishment...
* * *
selected news items.....
Number Of Workers Aged 25-54 Back To April 1997 Levels
When people think of the conventional battery of options the BLS applies to fudge the monthly payrolls number, the labor force participation is the first thing that comes mind: after all the thesis is that old workers are increasingly dropping out of the labor force and retiring. Nothing could be further from the truth as can be seen in this chart of workers aged 55-69, i.e. the prime retirement age.
But perhaps a far more important secular issue is the complete lack of pickup in the prime worker demographic, those aged 25-54, which in November dropped by 400k to 94 MM. This is a level first breached in April 1997, in other words in the past 15 years not a single incremental job has been gained in this most productive and lucrative of age groups!
The two graphs that accompany this article are absolutely worth the trip...and I thank Phil Barlett for our first story of the day. It's a Zero Hedgepiece...and the link is here.
But perhaps a far more important secular issue is the complete lack of pickup in the prime worker demographic, those aged 25-54, which in November dropped by 400k to 94 MM. This is a level first breached in April 1997, in other words in the past 15 years not a single incremental job has been gained in this most productive and lucrative of age groups!
The two graphs that accompany this article are absolutely worth the trip...and I thank Phil Barlett for our first story of the day. It's a Zero Hedgepiece...and the link is here.
Fed Exit Plan May Be Redrawn as Assets Near $3 Trillion
A decision by the Federal Reserve to expand its bond buying next week is likely to prompt policy makers to rewrite their 18-month-old blueprint for an exit from record monetary stimulus.
Under the exit strategy, the Fed would start selling bonds in mid-2015 in a bid to return its holdings to pre-crisis proportions in two to three years. An accelerated buildup of assets would also mean a faster pace of sales when the time comes to exit -- increasing the risk that a jump in interest rates would crush the economic recovery.
“There is certainly an issue about unwinding the balance sheet” in a way that “is effective and continues to support the recovery without creating inflation,” St. Louis Fed Bank President James Bullard said in an interview in October. The central bank might have to “revisit” the 2011 strategy, he added.
The Fed is already buying $40 billion a month in mortgage-backed securities to boost the economy, and policy makers meeting Dec. 11-12 will consider whether to purchase more assets. John Williams, president of the San Francisco Fed, has proposed adding $45 billion of Treasury securities a month.
The Bloomberg story from early yesterday morning Eastern time was sent to me by Manitoba reader Ulrike Marx...and the link is here.
Under the exit strategy, the Fed would start selling bonds in mid-2015 in a bid to return its holdings to pre-crisis proportions in two to three years. An accelerated buildup of assets would also mean a faster pace of sales when the time comes to exit -- increasing the risk that a jump in interest rates would crush the economic recovery.
“There is certainly an issue about unwinding the balance sheet” in a way that “is effective and continues to support the recovery without creating inflation,” St. Louis Fed Bank President James Bullard said in an interview in October. The central bank might have to “revisit” the 2011 strategy, he added.
The Fed is already buying $40 billion a month in mortgage-backed securities to boost the economy, and policy makers meeting Dec. 11-12 will consider whether to purchase more assets. John Williams, president of the San Francisco Fed, has proposed adding $45 billion of Treasury securities a month.
The Bloomberg story from early yesterday morning Eastern time was sent to me by Manitoba reader Ulrike Marx...and the link is here.
CFTC: Goldman Trader Hid $8.3 Billion Trading Position, Caused Loss Of More Than $100 Million
The U.S. Commodity Futures Trading Commission (CFTC) today announced that Goldman, Sachs & Co., a registered futures commission merchant (FCM) based in New York, N.Y., has been ordered to pay a $1.5 million civil monetary penalty to settle CFTC charges that it failed to diligently supervise its employees for several months in late 2007. The CFTC Order also requires Goldman to cease and desist from violating a CFTC regulation requiring diligent supervision.
According to the CFTC’s Order, for several months, Goldman failed to ensure that certain aspects of its risk management, compliance, and supervision programs comported with its obligations to supervise diligently its business as a Commission registrant. During November and December 2007, Goldman further failed to supervise diligently the trading activities of an associated person and former Goldman trader, Matthew Marshall Taylor, whose trading activities on seven days in mid-November and mid-December 2007 in the e-mini S&P 500 futures contract traded on the Chicago Mercantile Exchange’s (CME) Globex platform resulted in a substantial loss to Goldman.
This short read was posted on the businessinsider.com Internet site early Friday afternoon Eastern time...and it's Scott Pluschau's second offering in a row. The link is here.
According to the CFTC’s Order, for several months, Goldman failed to ensure that certain aspects of its risk management, compliance, and supervision programs comported with its obligations to supervise diligently its business as a Commission registrant. During November and December 2007, Goldman further failed to supervise diligently the trading activities of an associated person and former Goldman trader, Matthew Marshall Taylor, whose trading activities on seven days in mid-November and mid-December 2007 in the e-mini S&P 500 futures contract traded on the Chicago Mercantile Exchange’s (CME) Globex platform resulted in a substantial loss to Goldman.
This short read was posted on the businessinsider.com Internet site early Friday afternoon Eastern time...and it's Scott Pluschau's second offering in a row. The link is here.
Pepe Escobar: I love the sound of a drone in the morning
It may not have been a deadly Predator equipped with a Hellfire missile eager to incinerate a Pashtun wedding party, but in our Brave New UAV World - also known as Obama's Drone Wars - even a lowly ScanEagle, manufactured by a Boeing subsidiary, may be assured to steal the limelight.
So here's the star of the show on Iranian TV after it was captured over the Persian Gulf. Geopolitical junkies fed up with the same old US generals regurgitating clichés on Fox or CNN will certainly feast on that ultra-retro "We will trample the US under our feet" banner, not to mention the quirky Islamic Revolutionary Guard Corps (IRGC) production values in the PR front.
Rear Admiral Ali Fadavi, commander of the IRGC's navy, said the ScanEagle was "hunted" and then "forced" to "land electronically" after invading Iran's airspace. Well, it may have been slightly more complicated. The always delightful Moon of Alabama still provides the best explanation: the IRGC probably electronically disabled the drone's satellite link and then took over its line-of-sight radio control.
This short story showed up on the Asia Times website on Thursday...and I thank Roy Stephens for sending it. The link is here.
So here's the star of the show on Iranian TV after it was captured over the Persian Gulf. Geopolitical junkies fed up with the same old US generals regurgitating clichés on Fox or CNN will certainly feast on that ultra-retro "We will trample the US under our feet" banner, not to mention the quirky Islamic Revolutionary Guard Corps (IRGC) production values in the PR front.
Rear Admiral Ali Fadavi, commander of the IRGC's navy, said the ScanEagle was "hunted" and then "forced" to "land electronically" after invading Iran's airspace. Well, it may have been slightly more complicated. The always delightful Moon of Alabama still provides the best explanation: the IRGC probably electronically disabled the drone's satellite link and then took over its line-of-sight radio control.
This short story showed up on the Asia Times website on Thursday...and I thank Roy Stephens for sending it. The link is here.
This Is What $315 Billion Worth Of Gold Looks Like
Filmmaker Brady Haran and chemist Martyn Poliakoff go inside the vaults of the Bank of England, where $315 billion worth of gold bars currently sit.
Each shelf consists of one ton of gold, which equates to $56 million of gold.
This very interesting clip should be a real education for some. All of the "Comex-approved depositories" I speak of in the first part of my daily commentary, look just like the one show here at the Bank of England. And, as he explains, the gold sold between banks just changes owners and locations within the vault. Sometimes they don't even change the bar location. They just put a Sticky Note on it saying who the new owner is.
The gold in the CME's Daily Delivery Report I talk about every day, are the inter-bullion bank sales that he refers to...and he gives an excellent representation of that process. However, a lot of the other stuff he talks about is overly simplistic and aimed at the "Joe Six-Pack" viewer.
This 6:49 minute video presentation was posted on the businessinsider.comInternet site late yesterday afternoon...and is an absolute must watch. I thank Scott Pluschau for sharing it with us...and the link is here.
Each shelf consists of one ton of gold, which equates to $56 million of gold.
This very interesting clip should be a real education for some. All of the "Comex-approved depositories" I speak of in the first part of my daily commentary, look just like the one show here at the Bank of England. And, as he explains, the gold sold between banks just changes owners and locations within the vault. Sometimes they don't even change the bar location. They just put a Sticky Note on it saying who the new owner is.
The gold in the CME's Daily Delivery Report I talk about every day, are the inter-bullion bank sales that he refers to...and he gives an excellent representation of that process. However, a lot of the other stuff he talks about is overly simplistic and aimed at the "Joe Six-Pack" viewer.
This 6:49 minute video presentation was posted on the businessinsider.comInternet site late yesterday afternoon...and is an absolute must watch. I thank Scott Pluschau for sharing it with us...and the link is here.
* * *
¤ THE WRAP
"Bipartisan" usually means that a larger-than-usual deception is being carried out. - George Carlin
Besides the usual two musical selections...here's a David Letterman/Lone Ranger video clip that I posted several years ago...and it's definitely worth watching. I thank reader Bill Wiltse for sharing it with us...and if you're looking for a good laugh...you'll find it right here.
The 'blast from the past' is courtesy of Peter Frampton...and is almost 40 years old. Everybody knows it...and I'm always happy to turn up the volume whenever I hear it on the radio...which isn't a lot anymore. The link is here. Enjoy!
Today's classical work is by Antonín Dvořák and was composed in 1878. It's his Serenade for wind instruments, cello and double-bass in D minor Op. 44...and because of its length, it's posted in two parts. And because of the unusual orchestration, it's rarely performed in public...and when it is, it would only be in a city where a large symphony orchestra already exists. Too bad. This most excellent video recording is as close as most of us will ever get to the real thing. The links to Parts 1 and 2 are here...and here.
Friday's early price action in New York was normal for a day when the jobs numbers are posted, as it's pretty much a given that JPMorgan et al will hit the precious metals at 8:30 a.m. the moment they're released. But the thing I was happy about was that the metals came roaring back...and then finished in positive territory across the board.
Of course it was my belief that all the metals would have moved sharply higher than that if they hadn't [collectively] run into a not-for-profit seller between 9:30 and 10:00 a.m. Eastern time.
Besides the usual two musical selections...here's a David Letterman/Lone Ranger video clip that I posted several years ago...and it's definitely worth watching. I thank reader Bill Wiltse for sharing it with us...and if you're looking for a good laugh...you'll find it right here.
The 'blast from the past' is courtesy of Peter Frampton...and is almost 40 years old. Everybody knows it...and I'm always happy to turn up the volume whenever I hear it on the radio...which isn't a lot anymore. The link is here. Enjoy!
Today's classical work is by Antonín Dvořák and was composed in 1878. It's his Serenade for wind instruments, cello and double-bass in D minor Op. 44...and because of its length, it's posted in two parts. And because of the unusual orchestration, it's rarely performed in public...and when it is, it would only be in a city where a large symphony orchestra already exists. Too bad. This most excellent video recording is as close as most of us will ever get to the real thing. The links to Parts 1 and 2 are here...and here.
Friday's early price action in New York was normal for a day when the jobs numbers are posted, as it's pretty much a given that JPMorgan et al will hit the precious metals at 8:30 a.m. the moment they're released. But the thing I was happy about was that the metals came roaring back...and then finished in positive territory across the board.
Of course it was my belief that all the metals would have moved sharply higher than that if they hadn't [collectively] run into a not-for-profit seller between 9:30 and 10:00 a.m. Eastern time.
The other thing that was a big surprise yesterday, was the COT Report in silver. As Ted Butler correctly pointed out, it was the lack of technical fund long liquidation in the face of a two dollar price decline during the reporting week that was the stand-out feature.
I don't know what it means...but there are only two possibilities. The first is that the liquidation process hasn't even got started...and there are much lower price ahead in silver before the COT internal structure flashes a 'buy' signal. The second alternative is that JPMorgan et al can't get anyone to liquidate, even on these lower prices. If that's the case, then we could see a short squeeze...and watch as the bullion banks get over-run.
I'm loath to go that latter route because if it does happen, it will be for the very first time. But one thing is for sure, the price activity between now and year end could be entertaining. We'll just have to wait it out.
Here's another chart that Nick Laird slid into my in-box in the wee hours of this morning...and I'm always happy to post it. It's the "Total PMs Pool"...and in his covering commentary, Nick said that the "total PM holdings are hitting new highs...914.84 million ounces worth US$202.93 billion."
I don't know what it means...but there are only two possibilities. The first is that the liquidation process hasn't even got started...and there are much lower price ahead in silver before the COT internal structure flashes a 'buy' signal. The second alternative is that JPMorgan et al can't get anyone to liquidate, even on these lower prices. If that's the case, then we could see a short squeeze...and watch as the bullion banks get over-run.
I'm loath to go that latter route because if it does happen, it will be for the very first time. But one thing is for sure, the price activity between now and year end could be entertaining. We'll just have to wait it out.
Here's another chart that Nick Laird slid into my in-box in the wee hours of this morning...and I'm always happy to post it. It's the "Total PMs Pool"...and in his covering commentary, Nick said that the "total PM holdings are hitting new highs...914.84 million ounces worth US$202.93 billion."
Before heading off to bed, I'd like to take this opportunity one more time to mention the fact that Doug Casey has a new book coming out very soon...and it would be my guess that it's a must read. It bears the title "Totally Incorrect"...which pretty much sums up Doug's persona in two words. The cost of his new tome is US$14.95...46% off the retail price...and a pittance in the grand scheme of things. If you have any interest at all, you can find out more by clicking here.
That's all I have for today...and for the week...and it's more than enough.
That's all I have for today...and for the week...and it's more than enough.
and from silver doctors....
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