http://www.caseyresearch.com/gsd/edition/let-gold-games-begin
"One wonders in hindsight what that visit to the bullion vaults by Her Majesty was really all about."
¤ YESTERDAY IN GOLD AND SILVER
It was pretty quiet in the gold market everywhere on Planet Earth yesterday. The Far East high came around 3:00 p.m. Hong Kong time...about an hour before the London open...and from there it got sold off gently until 1:00 p.m. in London...about twenty minutes before the Comex open.
From that point, there was the usual price shenanigans between the Comex open and the London p.m. gold fix...and both attempted rallies during that time period got dealt with in the usual manner. From those highs, the gold price got sold off until 3:30 p.m. in the electronic market...and from there traded sideways into the close. The high tick of the day came about thirty minutes after the Comex open...and that was recorded by Kitco as $1,796.40 spot...and another attempt to break through the $1,700 spot price mark was thwarted.
Gold closed at $1,684.70 spot...down $2.40 from Friday's close. Net volume was pretty light...around 101,000 contracts.
From that point, there was the usual price shenanigans between the Comex open and the London p.m. gold fix...and both attempted rallies during that time period got dealt with in the usual manner. From those highs, the gold price got sold off until 3:30 p.m. in the electronic market...and from there traded sideways into the close. The high tick of the day came about thirty minutes after the Comex open...and that was recorded by Kitco as $1,796.40 spot...and another attempt to break through the $1,700 spot price mark was thwarted.
Gold closed at $1,684.70 spot...down $2.40 from Friday's close. Net volume was pretty light...around 101,000 contracts.
Silver's price action was, as they say, more 'volatile'... ;-) Up until the Comex open, it more or less followed the same price path as gold. But the moment it began to trade in New York...away it went to the upside...and it took JPMorgan et al many thousands of short contracts to bury that rally. But bury it they did...and by 10:45 a.m. in New York, all was quiet again...although it continued to rally a bit right into the close of electronic trading. The high tick was $32.24 spot.
Silver closed at $31.89...up 16 cents from Thursday's close. Volume was around 31,000 contracts.
The dollar index opened the Friday trading day at 79.71...and traded sideways until the 8:00 a.m. GMT London open...and from there it rallied to its 11:00 a.m. New York of 80.17...and from there it sold off a bit to close the day just over the 80.00 mark at 80.05...up 34 basis points on the day. It's more than a stretch to match the precious metals price trading pattern on Friday to anything the dollar index was doing.
Silver closed at $31.89...up 16 cents from Thursday's close. Volume was around 31,000 contracts.
* * *
The CME's Daily Delivery Report is hardly worth mentioning, as only 2 gold contracts were posted for delivery on Tuesday.
There were no reported changes in either GLD or SLV.
Over at the U.S. Mint yesterday, they sold 5,500 ounces of gold eagles...and that was it.
It wasn't a particularly busy day over at the Comex-approved depositories on Thursday, as they reported receiving only 205,496 troy ounces of silver...and shipped 114,500 ounces of the stuff out the door. The link to that activity is here.
After the big rallies in both gold and silver last week, it was no surprise to me that the Commercial net short position in both metals increased in yesterday's Commitment of Traders Report...for positions held at the close of Comex trading on Tuesday. As I said at the time, it was obvious that JPMorgan et al pulled out the heavy artillery in order to prevent both metals from blasting skyward...and the evidence showed up in yesterday's COT Report.
It wasn't a lot in silver...only 767 contracts, or 3.8 million ounces. Ted Butler feels that, under the hood, JPMorgan added around 1,000 contracts to their short position...which now stands around 29,000 contracts.
In gold, the increase in the Commercial net short position was more substantial...6,641 contracts, or 664,100 ounces of gold.
The key here is that JPMorgan et al are still doing the same old, same old...going short against all comers in the precious metals on any price rally...and until they step aside, or get over run, this price pattern is not going to change significantly, no matter what the charts say from a technical point of view. It's as simple as that.
Here's Nick Laird's most excellent "Days of World Production to Cover Short Positions" chart updated with the latest data.
There were no reported changes in either GLD or SLV.
Over at the U.S. Mint yesterday, they sold 5,500 ounces of gold eagles...and that was it.
It wasn't a particularly busy day over at the Comex-approved depositories on Thursday, as they reported receiving only 205,496 troy ounces of silver...and shipped 114,500 ounces of the stuff out the door. The link to that activity is here.
After the big rallies in both gold and silver last week, it was no surprise to me that the Commercial net short position in both metals increased in yesterday's Commitment of Traders Report...for positions held at the close of Comex trading on Tuesday. As I said at the time, it was obvious that JPMorgan et al pulled out the heavy artillery in order to prevent both metals from blasting skyward...and the evidence showed up in yesterday's COT Report.
It wasn't a lot in silver...only 767 contracts, or 3.8 million ounces. Ted Butler feels that, under the hood, JPMorgan added around 1,000 contracts to their short position...which now stands around 29,000 contracts.
In gold, the increase in the Commercial net short position was more substantial...6,641 contracts, or 664,100 ounces of gold.
The key here is that JPMorgan et al are still doing the same old, same old...going short against all comers in the precious metals on any price rally...and until they step aside, or get over run, this price pattern is not going to change significantly, no matter what the charts say from a technical point of view. It's as simple as that.
Here's Nick Laird's most excellent "Days of World Production to Cover Short Positions" chart updated with the latest data.
(Click on image to enlargeSince January 20th falls on a Saturday this year, The Central Bank of the Russian Federation updated their website with December's data yesterday. It showed that they added 600,000 ounces of gold to their official reserves during that month. If my back-of-the-envelope math is right, they added a total of 3.2 million ounces of gold to their reserves during the 2012 calendar year. Here's Nick Laird's chart...
(Click on image to enlarge)
Revisiting the big 18.3 million ounce deposit in SLV the other day...here's what SLV super-sleuth Joshua Gibbons had to say yesterday...
"It looks like we need to wait until Monday to find out the details about the big SLV deposit.
"The bar list released overnight only showed deposits of 1,934,561.9 oz. This should include a 967,280.0oz deposit on January 15th (the day before the 18.3M oz deposit), meaning that only 967,881.6 oz (1,934,561.9 minus 967,280.0) of the 18,378,092.0 oz deposit actually made it to the bar list. It is not uncommon to see daily deposits split up like this (and I wouldn't have even noticed this time if I hadn't peeked at the bar list earlier than I normally do). Given that the 967,881.6 oz equates to 1,000,000 shares, and is the same number of shares that were added on January 15, I'm guessing that the big January 16 deposit was really two separate deposits -- a "standard" deposit of 1Moz, and an "unusual" 17.3M oz.
"The bars that were added are very similar, from only 8 refiners, mostly from Korea, China, and Russia, and match what is often deposited to SLV (I'm guessing that one of the APs has contracts with some of those refiners to supply a certain amount of silver every month). This adds to the probability that there were two separate deposits, making the big one really 17.3M oz.
"What that then does is increases the probability (in my mind, at least) that the deposit was indeed to square away the short position (which at last count was about 16,459,000oz), as the numbers are much closer.
"Another possibility I see is that between the January 15 and January 16 deposits, exactly 20,000,000 shares were created, a nice round number. So someone may have wanted to buy 20M shares, without causing the NAV to go crazy (cluing people in to a big purchase), and got an AP to procure the silver and create the shares. I would imagine it would be more effective to store 20M oz of silver on your own, but it could for example be a mutual fund that can purchase shares of an ETF but not physical silver. But creating 1M shares one day, followed by another 1M shares and 18M shares the next day doesn't seem to make sense. If it was all going to one "customer", I would think they would create the shares at the same time."So we have a few clues, but the bar list on Monday (and next release of the short position) will provide more information. - Joshua."
Here's another chart that Nick Laird sent my way last night. It's the Total PMs Poolgraph...and the big addition to SLV on Wednesday is the standout feature...as is the new high."The bar list released overnight only showed deposits of 1,934,561.9 oz. This should include a 967,280.0oz deposit on January 15th (the day before the 18.3M oz deposit), meaning that only 967,881.6 oz (1,934,561.9 minus 967,280.0) of the 18,378,092.0 oz deposit actually made it to the bar list. It is not uncommon to see daily deposits split up like this (and I wouldn't have even noticed this time if I hadn't peeked at the bar list earlier than I normally do). Given that the 967,881.6 oz equates to 1,000,000 shares, and is the same number of shares that were added on January 15, I'm guessing that the big January 16 deposit was really two separate deposits -- a "standard" deposit of 1Moz, and an "unusual" 17.3M oz.
"The bars that were added are very similar, from only 8 refiners, mostly from Korea, China, and Russia, and match what is often deposited to SLV (I'm guessing that one of the APs has contracts with some of those refiners to supply a certain amount of silver every month). This adds to the probability that there were two separate deposits, making the big one really 17.3M oz.
"What that then does is increases the probability (in my mind, at least) that the deposit was indeed to square away the short position (which at last count was about 16,459,000oz), as the numbers are much closer.
"Another possibility I see is that between the January 15 and January 16 deposits, exactly 20,000,000 shares were created, a nice round number. So someone may have wanted to buy 20M shares, without causing the NAV to go crazy (cluing people in to a big purchase), and got an AP to procure the silver and create the shares. I would imagine it would be more effective to store 20M oz of silver on your own, but it could for example be a mutual fund that can purchase shares of an ETF but not physical silver. But creating 1M shares one day, followed by another 1M shares and 18M shares the next day doesn't seem to make sense. If it was all going to one "customer", I would think they would create the shares at the same time."So we have a few clues, but the bar list on Monday (and next release of the short position) will provide more information. - Joshua."
selected items of news and views.....
5. Doug Noland: How Crazy? Crazier by the week!: Prudent Bear
13. Gerald Celente: The 2013 Financial Collapse Will be One For the Ages:KWN
14. Egon von Greyerz: We Are Now Seeing Massive Shortages of Silver: KWN
13. Gerald Celente: The 2013 Financial Collapse Will be One For the Ages:KWN
14. Egon von Greyerz: We Are Now Seeing Massive Shortages of Silver: KWN
20. CNBC’s Head Explodes – Why doesn’t Germany Trust The US To Store Its Gold?
21. TF Metals Report interviews GATA secretary about Bundesbank's partial gold repatriation
* * *
21. TF Metals Report interviews GATA secretary about Bundesbank's partial gold repatriation
* * *
¤ THE WRAP
There are no markets anymore...only interventions. - Chris Powell, GATA
Today's rock 'blast from the past' is here....and it's classical counterpart is here...and here.
Well, it was just another day/week off the calendar where nothing has really been resolved in either direction...and there's just no way of telling which way it will resolve itself, notwithstanding the mega-short positions of JPMorgan et al.
The forces in play in the precious metals market that we aren't privy to, will be the determining factor...and believe me, they are there. If you listened to the CNBC video clip [story #20] you'll note that just about everyone knows what's really gone inside the precious metals market...and some of the talking heads came within an eyelash of saying it. They didn't, but they wanted to.
The Russians and Chinese governments have known about GATA's work for more than a decade...and it's obvious that Germany knows it too, and have now acted on that information. The question that remains to be asked is...who's next and how soon? How long before the trickle turns into a river...then a flood? And you can bet your last dollar that any country with a serious portion of their gold not in their own vaults are now asking themselves the same question. Venezuela's Chavez looks like a visionary at this point in history...and I'd also bet serious money that the Federal Reserve is at battle stations...as are their counterparts in the U.K. One wonders in hindsight what that visit to the bullion vaults by Her Majesty was really all about. I'd guess it was to reassure all foreign countries that their gold was still there. But who will be the next person to call their bluff. The stakes, dear reader, are incalculable.
The precious metals markets, along with all other markets...commodity and otherwise...are so bent out of shape, it's my guess that the entire world's financial system would collapse in a heap overnight if the powers that be put their hands in their pockets and let the free markets correct decades of interventions.
It's going to happen sooner or later, whether planned or unplanned...and when that day arrives, the Golden Rule will apply..."He Who Has the Gold, Makes the Rules"...and a claim to gold, even if held by a foreign country, won't be worth the paper that it's printed on. I would suspect that this was one of the reasons that Germany did what it did. How many more countries will go cap in hand to New York and London before the door is slammed shut?
Today's rock 'blast from the past' is here....and it's classical counterpart is here...and here.
Well, it was just another day/week off the calendar where nothing has really been resolved in either direction...and there's just no way of telling which way it will resolve itself, notwithstanding the mega-short positions of JPMorgan et al.
The forces in play in the precious metals market that we aren't privy to, will be the determining factor...and believe me, they are there. If you listened to the CNBC video clip [story #20] you'll note that just about everyone knows what's really gone inside the precious metals market...and some of the talking heads came within an eyelash of saying it. They didn't, but they wanted to.
The Russians and Chinese governments have known about GATA's work for more than a decade...and it's obvious that Germany knows it too, and have now acted on that information. The question that remains to be asked is...who's next and how soon? How long before the trickle turns into a river...then a flood? And you can bet your last dollar that any country with a serious portion of their gold not in their own vaults are now asking themselves the same question. Venezuela's Chavez looks like a visionary at this point in history...and I'd also bet serious money that the Federal Reserve is at battle stations...as are their counterparts in the U.K. One wonders in hindsight what that visit to the bullion vaults by Her Majesty was really all about. I'd guess it was to reassure all foreign countries that their gold was still there. But who will be the next person to call their bluff. The stakes, dear reader, are incalculable.
The precious metals markets, along with all other markets...commodity and otherwise...are so bent out of shape, it's my guess that the entire world's financial system would collapse in a heap overnight if the powers that be put their hands in their pockets and let the free markets correct decades of interventions.
It's going to happen sooner or later, whether planned or unplanned...and when that day arrives, the Golden Rule will apply..."He Who Has the Gold, Makes the Rules"...and a claim to gold, even if held by a foreign country, won't be worth the paper that it's printed on. I would suspect that this was one of the reasons that Germany did what it did. How many more countries will go cap in hand to New York and London before the door is slammed shut?
The United States did it to its own citizens in 1933...and to the rest of the world on August 15, 1971...and there's not a thing that can prevent them from doing it again in 2013 if they so choose...as possession, they say, is nine tenths of the law.
Let the gold games begin.
See you on Tuesday.
Let the gold games begin.
See you on Tuesday.
and...........
kingworldnews.com / Saturday, January 19, 2013
PLEASE CLICK ON PICTURE TO LISTEN TO THIS EXCLUSIVE INTERVIEW
kingworldnews.com / Saturday, January 19, 2013
PLEASE CLICK ON PICTURE TO LISTEN TO THIS BROADCAST
tfmetalsreport.com / By Turd Ferguson / Friday, January 18, 2013 at 3:21 pm
Earlier today, I had the pleasure of visiting with Chris Powell, who along with Bill Murphy, founded the Gold Anti-Trust Action Committee back in 1998. With all of the news this week surrounding The Bundesbank and their gold repatriation plans, I figured that Chris would be able to add some additional context to the story.
Please keep in mind that GATA is a non-profit organization and it relies upon voluntary donations for its funding. If you can spare a few, U.S. tax-deductible dollars, please support their efforts at http://www.gata.org/node/16
Additionally, one of the topics Chris and I cover is the ongoing leasing and price suppression activities of the Bank of International Settlements (BIS). Samples of the great research that GATA has done on this subject can be found here:http://www.gata.org/node/11012 here: http://www.gata.org/node/11 and here:http://www.gata.org/node/4225.
I’m confident that you’ll enjoy this informative podcast.
TF
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