http://www.caseyresearch.com/gsd/edition/russia-may-become-no-3-gold-miner-2015
Russia May Become No. 3 Gold Miner by 2015
Feb
13
¤ YESTERDAY IN GOLD AND SILVER
Gold had a rather strange day yesterday. After getting sold down to a new low shortly after 9:00 a.m. in Far East trading, the gold price recovered almost back to unchanged by early afternoon in Hong Kong, only to get sold down to its low of the day [around $1,638 spot] at the morning London gold fix at 10:25 a.m. GMT.
From that point it rallied to its high of the day [$1,654.30 spot] at 12:30 p.m. in New York, before getting sold off going into the Comex close. From there the price recovered a hair before trading sideways into the 5:15 p.m. electronic close.
From that point it rallied to its high of the day [$1,654.30 spot] at 12:30 p.m. in New York, before getting sold off going into the Comex close. From there the price recovered a hair before trading sideways into the 5:15 p.m. electronic close.
Gold closed at $1,651.30 spot...up $3.00 on the day. Volume was pretty decent...around 151,000 contracts. A lot of the volume would be technical funds being blow out of their long positions by JPMorgan Chase et al 'slicing the price salami' to the down side.
It was pretty much the same story in silver, with the only real difference being the high of the day, as it was set shortly after 4:00 p.m. Eastern time in electronic trading. The high tick was $31.26 spot. The low appeared to be around $30.75 spot...also at the London a.m. gold fix.
Silver closed at $31.12 spot...up 17 cents on the day. Net volume was pretty light once again...around 32,500 contracts.
Silver closed at $31.12 spot...up 17 cents on the day. Net volume was pretty light once again...around 32,500 contracts.
Both Ted Butler and myself were a bit surprised that "da boyz" didn't press their advantage during the Comex trading session. They certainly had the opportunity, but passed up on it for whatever reason.
Both platinum and palladium set their lows for the day at the London a.m. gold fix...but then rallied decently...and finished well up on the day.
Both platinum and palladium set their lows for the day at the London a.m. gold fix...but then rallied decently...and finished well up on the day.
Gold finished up 0.18%....silver closed up 0.55%....platinum up 1.60%...and palladium was the winner, up 1.72% on the day.
The dollar index opened on Tuesday morning in the Far East at 80.34...and then rallied to its high of the day [80.50] at 10:00 a.m. sharp in London trading...but by 10:50 a.m. in New York, the index had fallen down to 79.92...it's low tick of the day...before rallying a bit into the close. The dollar index closed down 29 basis points at 80.05.
Like Monday's currency action, there was no correlation between the dollar index and the precious metal prices on Tuesday, either. Over the entire length of this bull market in precious metals, there has been little or no correlation between the dollar index and the gold price at all
The dollar index opened on Tuesday morning in the Far East at 80.34...and then rallied to its high of the day [80.50] at 10:00 a.m. sharp in London trading...but by 10:50 a.m. in New York, the index had fallen down to 79.92...it's low tick of the day...before rallying a bit into the close. The dollar index closed down 29 basis points at 80.05.
Like Monday's currency action, there was no correlation between the dollar index and the precious metal prices on Tuesday, either. Over the entire length of this bull market in precious metals, there has been little or no correlation between the dollar index and the gold price at all
* * *
The CME's Daily Delivery Report showed that 480 gold and 59 silver contracts were posted for delivery within the Comex-approved depositories on Thursday. In gold, the big short/issuer was Canada's own Bank of Nova Scotia with 465 contracts issued...and the two long/stoppers of note were Deutsche Bank and HSBC USA with 309 and 170 contracts respectively.
In silver, all 59 contracts were issued by Jefferies...and it was mostly "all the usual suspects" on the long/stopper side. The link to yesterday's Issuers and Stoppers Report ishere...and it's worth a quick look.
There were no reported changes in either GLD or SLV yesterday.
Over at Switzerland's Zürcher Kantonalbank...as of the close of business on February 11th...they reported a decline of 50,793 troy ounces in their gold ETF...but added 40,156 ounces of silver to their silver ETF.
There was a smallish sales report from the U.S. Mint. They sold 1,500 ounces of gold eagles...1,000 one-ounce 24K gold buffaloes...and 129,500 silver eagles.
Over at the Comex-approved depositories on Monday, they reported receiving 650,352 troy ounces of silver...and only shipped 1,004 ounces of the stuff [one good delivery bar] out the door. All of the deposit ended up in the new CNT Depository, which is now up to 4.81 million ounces of silver. The link to that activity is here.
Yesterday I received an e-mail from Joshua Gibbons, the Guru of the SLV bar list over at the about.ag/SLV/ Internet site.
Ever since silver analyst Ted Butler began to speak up about the naked short positions held in SLV shares...mostly by the large authorized participants, of which JPMorgan Chase is/was the leading suspect...more and more silver commentators are talking about it...including both Joshua and myself...and this is what Joshua had to say about the big reduction in the SLV short position.
In silver, all 59 contracts were issued by Jefferies...and it was mostly "all the usual suspects" on the long/stopper side. The link to yesterday's Issuers and Stoppers Report ishere...and it's worth a quick look.
There were no reported changes in either GLD or SLV yesterday.
Over at Switzerland's Zürcher Kantonalbank...as of the close of business on February 11th...they reported a decline of 50,793 troy ounces in their gold ETF...but added 40,156 ounces of silver to their silver ETF.
There was a smallish sales report from the U.S. Mint. They sold 1,500 ounces of gold eagles...1,000 one-ounce 24K gold buffaloes...and 129,500 silver eagles.
Over at the Comex-approved depositories on Monday, they reported receiving 650,352 troy ounces of silver...and only shipped 1,004 ounces of the stuff [one good delivery bar] out the door. All of the deposit ended up in the new CNT Depository, which is now up to 4.81 million ounces of silver. The link to that activity is here.
Yesterday I received an e-mail from Joshua Gibbons, the Guru of the SLV bar list over at the about.ag/SLV/ Internet site.
Ever since silver analyst Ted Butler began to speak up about the naked short positions held in SLV shares...mostly by the large authorized participants, of which JPMorgan Chase is/was the leading suspect...more and more silver commentators are talking about it...including both Joshua and myself...and this is what Joshua had to say about the big reduction in the SLV short position.
Hi Ed,
"You'll probably be hearing all about this soon, but the new SLV short position was just released. It went down by 17,866,500 to 7,297,500, a drop of 10,569,000 shares (about 10,219,000 oz)."
"My suspicion is that JPM had shorted exactly 10 Moz of SLV shares, to use while collecting 10 Moz of silver in their new New York vault (they deposited 10,000,998.7 oz. in that vault at the time of the 18.4 Moz SLV deposit in January), and the other 219,000 oz. of SLV short covering was just normal SLV short activity. So over time they accumulated a 10 Moz SLV short position, and also accumulated 10 Moz of silver in New York, and last month deposited the 10 Moz of silver with SLV to create 10 Moz worth of SLV shares to close out their SLV short position (still leaving 7.2 Moz worth of SLV short, some of which could belong to JPM as well)."
"It does come very, very close to proving that JPM had a 10 Moz short position in SLV (and that it either was backed by silver, or they were in the process of backing it by silver). However, it does not explain the other 8.4 Moz of silver that was deposited that day, nor the 8.9 Moz of silver that was substituted (the 8.9 Moz of SLV silver in the Johnson Matthey vault was removed, and replaced with a different 8.9 Moz of silver in a different vault as part of the 18.4 Moz deposit). And 8.4 Moz deposit by itself would have qualified as one of the largest SLV deposits in several years, so there is still a part of the mystery yet to be solved. - JG"
I know that Ted will have much more to say about this in his mid-week column later today.
"You'll probably be hearing all about this soon, but the new SLV short position was just released. It went down by 17,866,500 to 7,297,500, a drop of 10,569,000 shares (about 10,219,000 oz)."
"My suspicion is that JPM had shorted exactly 10 Moz of SLV shares, to use while collecting 10 Moz of silver in their new New York vault (they deposited 10,000,998.7 oz. in that vault at the time of the 18.4 Moz SLV deposit in January), and the other 219,000 oz. of SLV short covering was just normal SLV short activity. So over time they accumulated a 10 Moz SLV short position, and also accumulated 10 Moz of silver in New York, and last month deposited the 10 Moz of silver with SLV to create 10 Moz worth of SLV shares to close out their SLV short position (still leaving 7.2 Moz worth of SLV short, some of which could belong to JPM as well)."
"It does come very, very close to proving that JPM had a 10 Moz short position in SLV (and that it either was backed by silver, or they were in the process of backing it by silver). However, it does not explain the other 8.4 Moz of silver that was deposited that day, nor the 8.9 Moz of silver that was substituted (the 8.9 Moz of SLV silver in the Johnson Matthey vault was removed, and replaced with a different 8.9 Moz of silver in a different vault as part of the 18.4 Moz deposit). And 8.4 Moz deposit by itself would have qualified as one of the largest SLV deposits in several years, so there is still a part of the mystery yet to be solved. - JG"
I know that Ted will have much more to say about this in his mid-week column later today.
* * *
selected news items....
'American leaders do believe in the invulnerability of the dollar system, but they are misguided' - James Rickards
In an exclusive interview with the Voice of Russia, James Rickards talks about currency wars, critical dynamics of monetary policy and the future of the US dollar. James Rickards is the author of the national bestseller, Currency Wars: The Making of the Next Global Crisis and a partner in Tangent Capital Partners, a merchant bank based in New York.
It's a Q&A in written form...and it was posted on the English version of the ruvr.ru Internet site on Monday...and I thank Harold Jacobsen for digging it up on our behalf. The link is here.
It's a Q&A in written form...and it was posted on the English version of the ruvr.ru Internet site on Monday...and I thank Harold Jacobsen for digging it up on our behalf. The link is here.
Why America Should Default and You Should Live Abroad: Q&A with Doug Casey
"I recommend defaulting on the debt for several reasons," explains New York Times' best-selling author, investment strategist, and libertarian commentator Doug Casey. "Perhaps the best one is that I don't think it's correct to make the next several generations of Americans indentured servants"
His new book, Totally Incorrect, is a collection of conversations with Louis James that explore the ways in which government policy and centralized power threaten cultural and economic progress. In a series of engaging and wide-ranging dialogues, Casey and James talk about everything from the Great Depression, to drug use, to the Roman Empire.
Reason TV’s Nick Gillespie sat down with Casey to discuss why America should default on its debt, why he spends most of his time in Argentina these days, and the importance of self-reliance and free-market principles.
This 6:04 minute video interview was posted on the reason.com Internet site yesterday...and it's definitely worth watching. The link is here.
His new book, Totally Incorrect, is a collection of conversations with Louis James that explore the ways in which government policy and centralized power threaten cultural and economic progress. In a series of engaging and wide-ranging dialogues, Casey and James talk about everything from the Great Depression, to drug use, to the Roman Empire.
Reason TV’s Nick Gillespie sat down with Casey to discuss why America should default on its debt, why he spends most of his time in Argentina these days, and the importance of self-reliance and free-market principles.
This 6:04 minute video interview was posted on the reason.com Internet site yesterday...and it's definitely worth watching. The link is here.
G7 nations pledge to coordinate their currency market rigging
They say they want markets to value currencies but warn against "excessive volatility and disorderly movements in exchange rates" and pledge "to continue to consult closely on exchange markets and cooperate as appropriate." That is, they will let markets work except when markets become inconveniently "excessive" and "disorderly" and then they will coordinate their market rigging. They won't intervene except when they do. This is all doubletalk.
The above commentary was by Chris Powell...and was the preamble to the very short Reuters story on the G7 statement on exchange rates. It was posted on the gata.org Internet site yesterday...and the link is here.
The above commentary was by Chris Powell...and was the preamble to the very short Reuters story on the G7 statement on exchange rates. It was posted on the gata.org Internet site yesterday...and the link is here.
Barclays cuts 3,700 jobs in overhaul to restore reputation
Antony Jenkins, chief executive of Barclays, said the cuts showed his plans for change at the bank were not mere “window dressing or PR” as he pointed to the financial cost of exiting controversial businesses.
The bank confirmed it would shut its controversial structured capital markets (SCM) unit, responsible for giving tax advice to the bank’s wealthy clients, while all speculative trading in agricultural commodities would be ended. [One has to wonder what sort of Comex positions they hold in the precious metals. - Ed]
Mr Jenkins said Barclays had taken a decision to close operations it no longer considered “compatible” with its business and ethics.
This story was posted on the telegraph.co.uk Internet site last evening GMT...and the link is here.
The bank confirmed it would shut its controversial structured capital markets (SCM) unit, responsible for giving tax advice to the bank’s wealthy clients, while all speculative trading in agricultural commodities would be ended. [One has to wonder what sort of Comex positions they hold in the precious metals. - Ed]
Mr Jenkins said Barclays had taken a decision to close operations it no longer considered “compatible” with its business and ethics.
This story was posted on the telegraph.co.uk Internet site last evening GMT...and the link is here.
Prosecuting the Messenger: Chief Greek Statistician Threatened with Jail
He was hired to bring Greece's debt statistics in line with European norms. Now, chief statistician Andreas Georgiou faces jail time for allegedly producing inflated sovereign debt numbers. He says he was merely being honest, and he has plenty of support in Europe.
When Georgiou decided in the summer of 2010 to take over leadership of the revamped, newly independent Greek statistics service ELSTAT, he never imagined that the position could land him a jail sentence. But at the end of January, felony charges were filed against Georgiou and two senior ELSTAT staffers for allegedly inflating the 2009 deficit. In other words, at a time when the rest of the world was furious that Greece had artificially improved the country's budget statistics, Greek prosecutors are accusing Georgiou of doing the opposite. Prosecutors acted after a 15-month investigation into allegations made by a former ELSTAT board member. If found guilty, Georgiou faces five to 10 years in prison.
This is another spiegel.de offering from yesterday...and once again courtesy of Roy Stephens. The link is here.
When Georgiou decided in the summer of 2010 to take over leadership of the revamped, newly independent Greek statistics service ELSTAT, he never imagined that the position could land him a jail sentence. But at the end of January, felony charges were filed against Georgiou and two senior ELSTAT staffers for allegedly inflating the 2009 deficit. In other words, at a time when the rest of the world was furious that Greece had artificially improved the country's budget statistics, Greek prosecutors are accusing Georgiou of doing the opposite. Prosecutors acted after a 15-month investigation into allegations made by a former ELSTAT board member. If found guilty, Georgiou faces five to 10 years in prison.
This is another spiegel.de offering from yesterday...and once again courtesy of Roy Stephens. The link is here.
Timbuktu after the Liberation: Malians Fear Return of Islamists
The French have successfully liberated Timbuktu, but they also intend to withdraw soon. Locals are now sharing their stories about the period of brutal Islamist control, but also their worries that the reign of terror could soon return.
The French combat force, Groupement tactique interarmes, which captured Timbuktu in a surprise attack about two weeks ago, is now withdrawing. The 500-man unit is to be redeployed in the direction of Gao, leaving only a small military outpost behind in Timbuktu.
Colonel Gèze, a muscular man with an angular face, set up his headquarters in a camouflage tent across from the runway. Following the airstrikes by the French Air Force, his men entered Timbuktu without meeting any resistance. It was almost too simple. The colonel still feels a little uneasy about their speedy victory.
Gèze can't say how many people were killed in the air strikes. His soldiers didn't take any prisoners, either. Still, even though the jihadists have left Timbuktu, Gèze hasn't defeated them. Perhaps they have gone to Mauritania or Algeria. The officer shrugs his shoulders. "We're keeping our eyes and ears peeled and are questioning our informants," he says. "The Islamists have to be hiding out somewhere."
This 2-page article is also from the spiegel.de Internet site yesterday afternoon...and my thanks go out to Roy Stephens once again. It's worth reading if you have the time...and the link is here.
The French combat force, Groupement tactique interarmes, which captured Timbuktu in a surprise attack about two weeks ago, is now withdrawing. The 500-man unit is to be redeployed in the direction of Gao, leaving only a small military outpost behind in Timbuktu.
Colonel Gèze, a muscular man with an angular face, set up his headquarters in a camouflage tent across from the runway. Following the airstrikes by the French Air Force, his men entered Timbuktu without meeting any resistance. It was almost too simple. The colonel still feels a little uneasy about their speedy victory.
Gèze can't say how many people were killed in the air strikes. His soldiers didn't take any prisoners, either. Still, even though the jihadists have left Timbuktu, Gèze hasn't defeated them. Perhaps they have gone to Mauritania or Algeria. The officer shrugs his shoulders. "We're keeping our eyes and ears peeled and are questioning our informants," he says. "The Islamists have to be hiding out somewhere."
This 2-page article is also from the spiegel.de Internet site yesterday afternoon...and my thanks go out to Roy Stephens once again. It's worth reading if you have the time...and the link is here.
Japan’s economic minister wants Nikkei to surge 17% to 13,000 by March
Economic and fiscal policy minister Akira Amari said Saturday the government will step up economic recovery efforts so that the benchmark Nikkei index jumps an additional 17 percent to 13,000 points by the end of March.
“It will be important to show our mettle and see the Nikkei reach the 13,000 mark by the end of the fiscal year (March 31),” Amari said in a speech.
The Nikkei 225 stock average, which last week climbed to its highest level since September 2008, finished at 11,153.16 on Friday.
“We want to continue taking (new) steps to help stock prices rise” further, Amari stressed, referring to the core policies of the Liberal Democratic Party administration — the promotion of bold monetary easing, fiscal spending and greater private sector investment.
Wow! I read what he said...and I still don't believe it. The free markets are done for. This story was filed from Yokohama yesterday...and was posted on the japantimes.co.jp Internet site. I found it yesterday's edition of the King Report. The link is here. It a little while to load.
“It will be important to show our mettle and see the Nikkei reach the 13,000 mark by the end of the fiscal year (March 31),” Amari said in a speech.
The Nikkei 225 stock average, which last week climbed to its highest level since September 2008, finished at 11,153.16 on Friday.
“We want to continue taking (new) steps to help stock prices rise” further, Amari stressed, referring to the core policies of the Liberal Democratic Party administration — the promotion of bold monetary easing, fiscal spending and greater private sector investment.
Wow! I read what he said...and I still don't believe it. The free markets are done for. This story was filed from Yokohama yesterday...and was posted on the japantimes.co.jp Internet site. I found it yesterday's edition of the King Report. The link is here. It a little while to load.
Three King World News Blogs
The first is with James Turk...and it's headlined "Last Piece Now in Place to Trigger Hyperinflation". The second blog is with Michael Pento...and it's entitled "Gold Bears Out of Time and About to Pay the Ultimate Price". And lastly is Richard Russell. It bears the title "History About to Repeat - Hang on to Gold".
Russia may become No. 3 gold miner by 2015
Increased output by Russia could see it surpass the United States as the world's third largest gold miner by 2015, Sergei Kashuba, head of the Russian Gold Industrialists' Union, said on Tuesday.
Russia has the world's second largest gold reserves after South Africa, an estimated 10 percent of global reserves, and production is nipping at the heels of China, Australia and the United States.
"If gold prices remain at a high level, gold output in Russia will continue to grow by 4-5 percent per year, which will allow it to become the third largest producer in the world in 2015," Kashuba told a conference in Moscow.
This Reuters story was filed from Moscow yesterday...and it found a home over at the mineweb.com Internet site. I thank Ulrike Marx for her second offering in a row...and the link is here.
Russia has the world's second largest gold reserves after South Africa, an estimated 10 percent of global reserves, and production is nipping at the heels of China, Australia and the United States.
"If gold prices remain at a high level, gold output in Russia will continue to grow by 4-5 percent per year, which will allow it to become the third largest producer in the world in 2015," Kashuba told a conference in Moscow.
This Reuters story was filed from Moscow yesterday...and it found a home over at the mineweb.com Internet site. I thank Ulrike Marx for her second offering in a row...and the link is here.
* * *
¤ THE WRAP
Men trained in arms from their infancy, and animated by the love of liberty, will afford neither a cheap or easy conquest. -- from the Declaration of the Continental Congress, July 1775.
With both gold and silver hitting new lows for this move down, there was obvious tech fund long liquidation...and that certainly accounted for the increase in gold volume Monday and yesterday. But despite the new lows in silver, the volumes there remain strangely muted...and both Ted and I are trying to make some sense of it.
Unfortunately, there will be no clarity brought to the situation until we have a look at the Commitment of Traders Report this Friday. Yesterday, at the close of Comex trading, was the cut-off for it. I would guess that, because of the volume, there was more improvement in the Commercial net short position in gold...and I'm really not sure what to expect in silver, but if I had to bet ten bucks, I'd have to put my money on a decline as well, even though the volume numbers were very low.
Here are the 6-month charts for both gold and silver with yesterday's price action included. Note that yesterday's London low in silver took out its 200-day moving average.
With both gold and silver hitting new lows for this move down, there was obvious tech fund long liquidation...and that certainly accounted for the increase in gold volume Monday and yesterday. But despite the new lows in silver, the volumes there remain strangely muted...and both Ted and I are trying to make some sense of it.
Unfortunately, there will be no clarity brought to the situation until we have a look at the Commitment of Traders Report this Friday. Yesterday, at the close of Comex trading, was the cut-off for it. I would guess that, because of the volume, there was more improvement in the Commercial net short position in gold...and I'm really not sure what to expect in silver, but if I had to bet ten bucks, I'd have to put my money on a decline as well, even though the volume numbers were very low.
Here are the 6-month charts for both gold and silver with yesterday's price action included. Note that yesterday's London low in silver took out its 200-day moving average.
(Click on image to enlarge)
As I said yesterday...and again today...I still have no idea how prices are going to resolve themselves from here. I could make a compelling case for a move in either direction. Gold is now well below its 200-day moving average...however the RSI trace is neutral at best. And even though the silver price went through its 200-day moving average, the foray below that price didn't last long...and was one of the reasons that I was surprised that there was no follow-through to the downside during Comex trading yesterday. Normally there would be pretty big volume after such an event. That was certainly not the case yesterday...or Monday.
Gold and silver prices were down a hair going into the 8:00 a.m. GMT London open...and volumes were virtually nonexistent in both metals...and the dollar index was dead.
As I hit the 'send' button at 4:40 a.m. Eastern time...about an hour and forty minutes into the London trading day...gold is down five dollars and silver about 15 cents...and the dollar index is a bit lower as well. Volumes are light, especially in silver.
I await the Comex open with some interest...and I'll see you here tomorrow.
As I hit the 'send' button at 4:40 a.m. Eastern time...about an hour and forty minutes into the London trading day...gold is down five dollars and silver about 15 cents...and the dollar index is a bit lower as well. Volumes are light, especially in silver.
I await the Comex open with some interest...and I'll see you here tomorrow.
and.....
Platinum And Palladium Rise On Supply Concerns – Zimbabwe Now
Submitted by Tyler Durden on 02/13/2013 - 08:24
Platinum and palladium surged Tuesday on renewed concerns that supplies of the platinum group metals will shrink. Zimbabwe's government has given platinum producers two years to begin refining the precious metals in Zimbabwe. This means that production of platinum will drop, because mining companies are now expected to build refineries – something which they may not do, due to the real risk of confiscation and nationalisation of assets. Both metals climbed more than 1% yesterday with platinum for April delivery rising $21.10 to settle at $1,717.2/oz. Palladium for March delivery rose $12.80 to $771.40/oz. "The worry is that it's going to restrict production," said James Steel, chief commodities analyst at HSBC in New York. "That was the prime motivator for the price movement today."
and from silver doctors....
If you live in the city of Houston, TX and are selling physical gold or silver, you are now officially considered a criminal until proven otherwise, as 
Submitted by SD reader BH
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