http://jessescrossroadscafe.blogspot.com/2013/02/gold-daily-and-silver-weekly-charts_15.html
The Commitments of Traders chart below is courtesy of GoldSeek.
That report suggests that the Banks are starting to cover, and that the small specs and the hedges are doing the short selling. Let's see what next week's report says to confirm this, since it will include today's big selling operation.
In the silver market the banks are having trouble taking new longs at these prices, causing some to speculate that they are stuck a bit on the big short. I'll wait to see more evidence on that.
After the bell, the SEC says traders front running the options market in the Heinz - Buffett announcement netted $1.7 million, and that the SEC presumably intends to do something about it. Small fry most likely if they do.
Intraday commentary on the metals market here and here and here.
Remember that Monday is a national holiday in the States.
Have a pleasant weekend.
http://www.acting-man.com/?p=21765
http://www.gata.org/node/12242
http://www.zerohedge.com/news/2013-02-15/another-day-another-8amet-gold-and-silver-slam-down
Submitted by Tyler Durden on 02/15/2013 08:47 -0500
Gold Daily and Silver Weekly Charts - Hedge Funds and Specs Selling
The Commitments of Traders chart below is courtesy of GoldSeek.
That report suggests that the Banks are starting to cover, and that the small specs and the hedges are doing the short selling. Let's see what next week's report says to confirm this, since it will include today's big selling operation.
In the silver market the banks are having trouble taking new longs at these prices, causing some to speculate that they are stuck a bit on the big short. I'll wait to see more evidence on that.
After the bell, the SEC says traders front running the options market in the Heinz - Buffett announcement netted $1.7 million, and that the SEC presumably intends to do something about it. Small fry most likely if they do.
Intraday commentary on the metals market here and here and here.
Remember that Monday is a national holiday in the States.
Have a pleasant weekend.
* * *
Gold Leaps Into Backwardation!
Since late January, the February gold contract has been in backwardation. This means that one could make a profit by simultaneously selling a gold bar and buying a February contract. One would still have one’s gold plus a little extra. I coined the term “temporary backwardation”, to describe this curious and very recent phenomenon. In our “new normal”, most gold and silver contracts go into backwardation as they get close to expiry.
When the Feb contract first jumped into backwardation, it was well within the “contract roll” period. The roll is when naked longs sell the expiring contract and buy a contract for a more distant month. Thisheavy selling of the expiring contractpushes down its price. Since cobasisis Spot minus Future (oversimplified slightly), the cobasis rises purely due to the mechanics of this selling.
But today something more serious occurred. The April contract, which is not yet being “rolled”, fell into backwardation.
The April contract, which is not yet being “rolled”, fell into backwardation – click for better resolution.
The market is offering a free profit to anyone who will sell a gold bar and buy an April contract. For whatever reason, no one is either able or willing to take the bait. This is proof that the market for physical gold metal is drying up. Speculators in the futures markets may believe that the gold price “should” fall because the central banks say they are not going to competitively devalue their irredeemable paper currencies. Owners of real metal are increasingly reluctant to part with it at the current price.
* * *
http://www.gata.org/node/12242
GoldMoney's Macleod: Banks closing gold shorts but can't in silver
Submitted by cpowell on Fri, 2013-02-15 19:51. Section: Daily Dispatches
2:44p ET Friday, February 15, 2013
Dear Friend of GATA and Gold:
GoldMoney research director Alasdair Macleod reports today that bullion banks have been aggressively closing their short positions in gold but have been unable to close them in silver. His report is headlined "Spike in Banks' Net Short Silver Position" and it's posted at the research section of GoldMoney's Internet site here:
http://www.gata.org/node/12239
Zulauf discusses gold repatriation; FT publishes Macleod
Submitted by cpowell on Fri, 2013-02-15 13:34. Section: Daily Dispatches
8:30a ET Friday, February 15, 2013
Dear Friend of GATA and Gold:
As his interview with King World News continues, fund manager Felix Zulauf remarks on the repatriation of central bank gold reserves and suspicion that they have been impaired by leases:
And today GoldMoney research director Alasdair Macleod has a short commentary published in the letters section of the Financial Times and headlined: "Gold Price: It's Not Complicated":
Macleod writes: "With reference to your report 'Leading Bullion Bank Declares End to Gold's Decade-Long Rise' (February 2): Oh, dear! Why make it complicated? If you expect lots of monetary expansion over the coming years, paper money's value can be expected to decline. If you expect governments to stop trashing their currencies, it probably won't. That is what the future price of gold will reflect, pure and simple."
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Gold Anti-Trust Action Committee Inc.
http://www.gata.org/node/12240
New U.S. sanction killing Iran-Turkey gold trade, bankers tell Reuters
Submitted by cpowell on Fri, 2013-02-15 15:31. Section: Daily Dispatches
Turkey-to-Iran Gold Trade Wiped Out by New U.S. Sanction
By Asli Kandemir
Reuters
Friday, February 15, 2013
Reuters
Friday, February 15, 2013
ISTANBUL -- Tighter U.S. sanctions are killing off Turkey's gold-for-gas trade with Iran and have stopped state-owned lender Halkbank from processing other nations' energy payments to the OPEC oil producer, bankers said on Friday.
U.S. officials have sought to prevent Turkish gold exports, which indirectly pay Iran for its natural gas, from providing a financial lifeline to Tehran, largely frozen out of the global banking system by Western sanctions over its nuclear program.
Turkey, Iran's biggest natural gas customer, has been paying Iran for its imports with Turkish lira because sanctions prevent it from paying in dollars or euros.
Iranians then use those lira, held in Halkbank accounts, to buy gold in Turkey, and couriers carry bullion worth millions of dollars in hand luggage to Dubai, where it can be sold for foreign currency or shipped to Iran.
Halkbank had also been processing a portion of India's payments for Iranian oil.
A provision of U.S. sanctions, made law last summer and implemented from February 6, effectively tightens control on sales of precious metals to Iran and prevents Halkbank from processing oil payments by other countries back to Tehran, bankers said.
"Halkbank can only accept payments for Turkish oil and gas purchases and Iran is only allowed to buy food, medicine, and industrial products with that money," one senior Turkish banker told Reuters.
"The gas-for-gold trade is very difficult after the second round of sanctions. Iranians cannot just withdraw the cash and buy whatever they want. They have to prove what they are buying ... so gold exports will definitely fall," he said.
Trade in Turkish gold bars to Iran via Dubai was already drying up as banks and dealers declined to buy the bullion to avoid sanctions risks associated with the trade.
Reuters first reported the boom in Turkish gold sales to Iran via Dubai last year.
Turkish Economy Minister Zafer Cağlayan signaled a decline in the trade last week when he said that, while Turkey would not be swayed by U.S. pressure to halt gold exports to Iran, Tehran's demand for the metal was expected to fall.
"You could say that the United States has achieved its aim," said a Western diplomat. "If Turkey is going to continue energy imports from Iran, there is no other way to go than trading sanction-free goods."
Washington says Tehran is enriching uranium to levels that could be used in nuclear weapons and has been trying to ratchet up economic pressure on Tehran. Iran says the program is for peaceful purposes.
Turkish ministers had acknowledged the gold-for-gas trade but said it was carried out entirely by the private sector and was not subject to U.S. sanctions.
Turkey, like China, India, and Japan, is heavily dependent on imported energy and, while it has cut back on oil from Iran, has made clear it cannot simply stop buying Iranian oil and gas.
"With so many restrictions, Iran's cash may accumulate in Halkbank accounts. ... They may have difficulty getting some of that money out of Turkey," another senior Turkish banker said.
That could mean Tehran will look elsewhere for allies willing to try to get round the U.S. sanctions, although it may struggle to continue to receive gold as a payment method.
"The gold trade may switch to countries that support Iran politically but Russian banks, for example, would be very cautious because they are very much in the global banking system," the second banker said.
"China may be another option. But I can say that the gold trade is over for Turkey."
Turkey, which is not a major gold producer, was a net gold, jewelry, and precious metals importer in 2011 but swung to being a net exporter last year. Analysts said Iranian demand had prompted both the high imports two years ago -- which were largely sold on to Iran -- and the surge in exports last year.
Gold exports to Iran rose to $6.5 billion in 2012, more than ten times the level of 2011, while exports to the United Arab Emirates -- much of it for onward shipment to Iran or conversion to hard currency -- rose to $4.6 billion from $280 million.
Overall Turkish bullion exports fell to 10.5 tonnes in December from 15.2 tonnes in November.
and.....
http://www.zerohedge.com/news/2013-02-15/another-day-another-8amet-gold-and-silver-slam-down
Another Day, Another 8amET Gold And Silver Slam Down
As the G-20 continues to craft the most egregiously hypocritical words to describe what is declaring currency war and what is merely commenting on the need for a weaker currency, JPY has plunged back towards the week's lows and Gold and Silver have been slammed lower in another instantaneous 1% gap-down (as we have seen at 8amET every day this week). Silver now below $30 is back near the lows of the year. Treasuries are leaking higher in yield as the precious metals are sold.
http://www.caseyresearch.com/gsd/edition/bottom-and-buy-signal-gartman-shorts-gold
A Bottom and a Buy Signal: Gartman Shorts Gold
Feb
15
"There should be significant declines in the Commercial net short positions in both gold and silver in today's report"
¤ YESTERDAY IN GOLD AND SILVER
The gold price chopped around a few dollars either side of the $1,645 spot mark through all of Far East and early London trading yesterday. There was a bit of a sell-off at the Comex open, but that reversed itself in short order.
But thirty minutes the afternoon London gold fix was in at 3:00 p.m. GMT...10:00 a.m. in New York...the bullion banks' high-frequency traders went to work. Gold's low price tick [$1,632.10 spot] came fifteen minutes after the Comex close...and from there, gold more or less traded sideways into the electronic close.
The spike high of the day...$1,650.80 spot...came about 9:05 a.m. Eastern time.
Gold closed the Thursday trading session at $1,634.40 spot...down another $8.20. With a new low price set for this move down, volume was very chunky at 189,000 contracts, give or take.
But thirty minutes the afternoon London gold fix was in at 3:00 p.m. GMT...10:00 a.m. in New York...the bullion banks' high-frequency traders went to work. Gold's low price tick [$1,632.10 spot] came fifteen minutes after the Comex close...and from there, gold more or less traded sideways into the electronic close.
The spike high of the day...$1,650.80 spot...came about 9:05 a.m. Eastern time.
Gold closed the Thursday trading session at $1,634.40 spot...down another $8.20. With a new low price set for this move down, volume was very chunky at 189,000 contracts, give or take.
The price action in silver was similar...but far more 'volatile'... ;-) After trading around the $30.80 spot mark for twelve hours and change, the silver price jumped up shortly after 11:00 a.m. in London...and then, like gold, hit its high tick of the day [$31.16 spot] at 9:05 a.m. in early Comex trading in New York.
A slightly negative price bias developed from there until after the London p.m. gold fix was in...and then the usual engineered price decline began. Silver's low price tick [$30.14 spot] came a few minutes after 1:00 p.m. Eastern time...and the subsequent rally wasn't allowed to get far.
In case you missed it, silver had an intraday move of over a buck. With their big short position covered in SLV...now JPMorgan Chase is now working on their short position on the Comex in earnest.
Silver closed at $30.40 spot...down 38 cents on the day. Net volume was very respectable...around 40,000 contracts.
A slightly negative price bias developed from there until after the London p.m. gold fix was in...and then the usual engineered price decline began. Silver's low price tick [$30.14 spot] came a few minutes after 1:00 p.m. Eastern time...and the subsequent rally wasn't allowed to get far.
In case you missed it, silver had an intraday move of over a buck. With their big short position covered in SLV...now JPMorgan Chase is now working on their short position on the Comex in earnest.
Silver closed at $30.40 spot...down 38 cents on the day. Net volume was very respectable...around 40,000 contracts.
The dollar index opened on Thursday in the Far East at 80.07...and began to chop higher from there. The zenith...80.58...came shortly after 10:00 a.m. in London...and then began a long, slow decline right into the close of electronic trading in New York. The index finished the day at 80.39...up 32 basis points.
It should be more than obvious to anyone, that the currency moves yesterday were no factor in the prices of the precious metals on world markets.
It should be more than obvious to anyone, that the currency moves yesterday were no factor in the prices of the precious metals on world markets.
* * *
The CME's Daily Delivery Report showed that 127 gold and 66 silver contracts were posted for delivery on Monday within the Comex-approved depositories. In gold, the two largest short/issuers were JPMorgan and Canada's own Bank of Nova Scotia with 97 and 21 contracts apiece. The only two long/stoppers were Deutsche Bank and HSBC USA. They stopped 82 and 45 contracts respectively.
In silver, Jefferies was the sole short/issuer once again...and the Bank of Nova Scotia stopped 62 of them. The link to yesterday's Issuers and Stoppers Report is here.
The GLD ETF reported that an authorized participant withdrew 96,790 troy ounces of gold yesterday. But the big surprise was SLV, as an authorized participant deposited870,194 troy ounces. Go figure!
The U.S. Mint had no sales report yesterday.
Wednesday was another busy day over at the Comex-approved depositories as 1,247,060 troy ounces of silver were deposited...and only 215,978 troy ounces were shipped out. The link to that activity is here.
Joshua Gibbons, the Silver Bar Guru of SLV, updated his website with the latest in/out activity in all of SLV's bullion vaults for the week that was...and it's always worth checking out. The link is here.
Yesterday I ran a story headlined "Houston city council passes ordinance to fingerprint, photograph precious metal sellers". The story is true, but only up to a point. I got an e-mail from reader Joseph Kahn..."and the by-law only applies to jewellery, not bullion and coins, so no Social Security Number has to be provided when you're selling that. The law was passed to satisfy the city."
[As an aside, we have a similar law in the city of Edmonton...all precious metal sellers have to provide two pieces of I.D...one of which must be a government picture I.D...no photo or fingerprint...and any jewellery purchased has to be held for forty-five days in case the police wish to examine it. A smart crime-prevention move which should be adopted everywhere. So take the blue pill and call me in the morning. - Ed]
In silver, Jefferies was the sole short/issuer once again...and the Bank of Nova Scotia stopped 62 of them. The link to yesterday's Issuers and Stoppers Report is here.
The GLD ETF reported that an authorized participant withdrew 96,790 troy ounces of gold yesterday. But the big surprise was SLV, as an authorized participant deposited870,194 troy ounces. Go figure!
The U.S. Mint had no sales report yesterday.
Wednesday was another busy day over at the Comex-approved depositories as 1,247,060 troy ounces of silver were deposited...and only 215,978 troy ounces were shipped out. The link to that activity is here.
Joshua Gibbons, the Silver Bar Guru of SLV, updated his website with the latest in/out activity in all of SLV's bullion vaults for the week that was...and it's always worth checking out. The link is here.
Yesterday I ran a story headlined "Houston city council passes ordinance to fingerprint, photograph precious metal sellers". The story is true, but only up to a point. I got an e-mail from reader Joseph Kahn..."and the by-law only applies to jewellery, not bullion and coins, so no Social Security Number has to be provided when you're selling that. The law was passed to satisfy the city."
[As an aside, we have a similar law in the city of Edmonton...all precious metal sellers have to provide two pieces of I.D...one of which must be a government picture I.D...no photo or fingerprint...and any jewellery purchased has to be held for forty-five days in case the police wish to examine it. A smart crime-prevention move which should be adopted everywhere. So take the blue pill and call me in the morning. - Ed]
* * *
selected news items .....
Matt Taibbi -- At Least We're Not Measles: Rationalizing Drone Attacks Hits New Low
Read an absolutely amazing article today. Entitled "Droning on about Drones," it was published in the online version of Dawn, Pakistan's oldest and most widely read English-language newspaper, and written by one Michael Kugelman, identified as the Senior Program Associate for South Asia at the Woodrow Wilson International Center for Scholars in Washington, D.C.
In this piece, the author's thesis is that all this fuss about America's drone policy is overdone and perhaps a little hysterical. Yes, he admits, there are some figures that suggest that as many as 900 civilians have been killed in drone strikes between 2004 and 2013. But, he notes, that only averages out to about 100 civilians a year. Apparently, we need to put that number in perspective:
This latest offering from Matt was posted on the Rolling Stone website mid-afternoon yesterday Eastern time. It's not overly long...and well worth reading if you have the time. I thank Ulrike Marx for her second offering in a row...and the link is here. [Note: I didn't see any 'pithy prose'. - Ed]
In this piece, the author's thesis is that all this fuss about America's drone policy is overdone and perhaps a little hysterical. Yes, he admits, there are some figures that suggest that as many as 900 civilians have been killed in drone strikes between 2004 and 2013. But, he notes, that only averages out to about 100 civilians a year. Apparently, we need to put that number in perspective:
This latest offering from Matt was posted on the Rolling Stone website mid-afternoon yesterday Eastern time. It's not overly long...and well worth reading if you have the time. I thank Ulrike Marx for her second offering in a row...and the link is here. [Note: I didn't see any 'pithy prose'. - Ed]
From Watery Bourbon to Horse-Meat Chili: Hidden Inflation is Everywhere
We’ve had an endless series of products whose ingredients have been cheapened in order to maintain the price. Consumers won’t be able to taste the difference, the theory goes.
So, as the horse-meat lasagna scandal in Europe is spiraling beautifully out of control, we’re now getting hit where it hurts: Maker’s Mark is watering down its bourbon.
Unlike the horse-meat folks, Maker’s Mark announced it. They even had an official reason. “Fact is, demand for our bourbon is exceeding our ability to make it, which means we’re running very low on supply,” said the missive that COO Rob Samuels sent to his customers.
This businessinsider.com story from yesterday morning Eastern time is a must read if this is the first you've heard of these items. It's Roy Stephens' first offering of the day...and the link is here.
So, as the horse-meat lasagna scandal in Europe is spiraling beautifully out of control, we’re now getting hit where it hurts: Maker’s Mark is watering down its bourbon.
Unlike the horse-meat folks, Maker’s Mark announced it. They even had an official reason. “Fact is, demand for our bourbon is exceeding our ability to make it, which means we’re running very low on supply,” said the missive that COO Rob Samuels sent to his customers.
This businessinsider.com story from yesterday morning Eastern time is a must read if this is the first you've heard of these items. It's Roy Stephens' first offering of the day...and the link is here.
France ‘to miss 2013 deficit reduction pledge’
France will probably miss this year’s public deficit goal, Foreign Minister Laurent Fabius said, the first time a member of the government’s inner circle has admitted doubts over the policy cornerstone are valid.
France is battling to maintain its credibility with its European Union partners, rating agencies and financial markets in the face of serious misgivings over its efforts to reform a stalled economy and cut the budget gap this year to the EU ceiling of 3 percent of economic output.
Asked on Wednesday whether the state audit body was right in suggesting on Tuesday that France would overshoot the target, Fabius replied: “I think it’s likely, and that means we must both avoid squeezing what remains of growth while being responsible and making sure the word ‘savings’ is part of our vocabulary.”
Every country is circling the drain faster and faster now. France has bowed to the obvious...and the situation is probably several orders of magnitude worse than their admitting to. This article appeared on the france24.comInternet site on Wednesday...and I thank Roy Stephens for bringing it to our attention. The link is here.
France is battling to maintain its credibility with its European Union partners, rating agencies and financial markets in the face of serious misgivings over its efforts to reform a stalled economy and cut the budget gap this year to the EU ceiling of 3 percent of economic output.
Asked on Wednesday whether the state audit body was right in suggesting on Tuesday that France would overshoot the target, Fabius replied: “I think it’s likely, and that means we must both avoid squeezing what remains of growth while being responsible and making sure the word ‘savings’ is part of our vocabulary.”
Every country is circling the drain faster and faster now. France has bowed to the obvious...and the situation is probably several orders of magnitude worse than their admitting to. This article appeared on the france24.comInternet site on Wednesday...and I thank Roy Stephens for bringing it to our attention. The link is here.
Eurozone recession hits Germany hard
A sharp fall in exports from the region’s trading hub caused the larger-than-expected decline, as official figures showed that the eurozone as a whole slumped 0.6pc in the quarter, the worst performance in over three years. The currency area has contracted for three quarters running and by 0.5pc for the year as a whole. It is 1pc smaller than in September 2011.
Economists had expected Germany to be hit by the bloc’s waning fortunes but the scale of decline came as a surprise. France, which shrank by 0.3pc, and Italy, which was down 0.9pc – a sixth straight quarterly decline, also performed worse than predicted.
Evidence of the extent of the eurozone’s troubles came as Japan also posted a shock 0.1pc contraction in the three months to December – its third successive quarterly slump. The weak figures stoked speculation that new Prime Minister Shinzo Abe would step up his efforts to stimulate the economy.
This commentary appeared on the telegraph.co.uk Internet site during the London lunch hour yesterday...and it's also courtesy of Roy Stephens. The link is here.
Economists had expected Germany to be hit by the bloc’s waning fortunes but the scale of decline came as a surprise. France, which shrank by 0.3pc, and Italy, which was down 0.9pc – a sixth straight quarterly decline, also performed worse than predicted.
Evidence of the extent of the eurozone’s troubles came as Japan also posted a shock 0.1pc contraction in the three months to December – its third successive quarterly slump. The weak figures stoked speculation that new Prime Minister Shinzo Abe would step up his efforts to stimulate the economy.
This commentary appeared on the telegraph.co.uk Internet site during the London lunch hour yesterday...and it's also courtesy of Roy Stephens. The link is here.
Double taxation row as Brussels launches transactions tax proposal
The European Commission was under fire Thursday (14 February) over claims that its planned tax on financial transactions (FTT) would lead to double taxation.
Unveiling the plans for an FTT backed by 11 EU countries, Taxation Commissioner Algirdas Semeta said that it was a "fair, technically sound and legally robust tax."
The proposal puts a 0.1 percent levy on bonds and shares and 0.01 percent on derivative products. Measures have also been put in place to prevent traders from circumventing the system by operating from outside the EU-11.
This very interesting read appeared on the euobserver.com Internet site yesterday evening in Europe...and the stories from Roy Stephens keep on coming. The link is here.
Unveiling the plans for an FTT backed by 11 EU countries, Taxation Commissioner Algirdas Semeta said that it was a "fair, technically sound and legally robust tax."
The proposal puts a 0.1 percent levy on bonds and shares and 0.01 percent on derivative products. Measures have also been put in place to prevent traders from circumventing the system by operating from outside the EU-11.
This very interesting read appeared on the euobserver.com Internet site yesterday evening in Europe...and the stories from Roy Stephens keep on coming. The link is here.
First Monte Paschi Banker Arrested With €40 Million Stash
Unfortunately for the apparently not quite big enough to not fail Italian bank's former leaders, the Monte Paschi derivative debacle just won't go away. AsReuters reported yesterday, the first (or many) arrests have been made.
Gianluca Baldassarri and four other people suspected of criminal conspiracy to commit fraud were arrested after police seized €40 million of apparently ill-gotten gains. The alleged fraud and bribery case charges Baldassarri (who left shortly after the arrival of the new CEO in Jan 2012) of misleading regulators over the true nature of a secret derivative contract that was found in a safe by the bank's new management in October 2012.
Echoing JPM's London Whale, they uncovered a 'systematic overshooting of risk limits' in the management of the group's €24 billion prop book. Baldassarri was arrested quickly after the police found evidence that he was trying to cash in securities worth over €1 million soon after the funds were seized.
This must read story appeared on the Zero Hedge website yesterday...and I thank Marshall Angeles for finding it for us. The link is here.
Gianluca Baldassarri and four other people suspected of criminal conspiracy to commit fraud were arrested after police seized €40 million of apparently ill-gotten gains. The alleged fraud and bribery case charges Baldassarri (who left shortly after the arrival of the new CEO in Jan 2012) of misleading regulators over the true nature of a secret derivative contract that was found in a safe by the bank's new management in October 2012.
Echoing JPM's London Whale, they uncovered a 'systematic overshooting of risk limits' in the management of the group's €24 billion prop book. Baldassarri was arrested quickly after the police found evidence that he was trying to cash in securities worth over €1 million soon after the funds were seized.
This must read story appeared on the Zero Hedge website yesterday...and I thank Marshall Angeles for finding it for us. The link is here.
Currency wars come to Moscow as G20 meets
It won't quite be hand-to-hand combat, but 'currency wars' will come to Moscow on Friday as finance officials from the Group of 20 nations spar over Japan's expansive policies that have driven down the value of the yen.
The G20 forum, which put together a huge financial backstop to halt a market meltdown in 2009, is back in the spotlight after a week in which the Group of Seven rich nations tried, and spectacularly failed, to speak on currencies with one voice.
The G7 has long been the powerhouse of financial diplomacy. But tension between Washington and Tokyo has risen over new Prime Minister Shinzo Abe's bid to end two decades of deflation.
The G7 issued a joint statement on Tuesday reaffirming "our longstanding commitment to market determined exchange rates". Yet the show of unity was quickly undermined by off-the-record briefings critical of Japan.
This must read Reuters piece was posted on their website early yesterday evening Eastern time...and it's another article courtesy for Roy Stephens. The link is here...and I note they've changed the headline since I posted the story last evening. Now it reads "G20 wrangles on forex, deficits at Moscow talks"
The G20 forum, which put together a huge financial backstop to halt a market meltdown in 2009, is back in the spotlight after a week in which the Group of Seven rich nations tried, and spectacularly failed, to speak on currencies with one voice.
The G7 has long been the powerhouse of financial diplomacy. But tension between Washington and Tokyo has risen over new Prime Minister Shinzo Abe's bid to end two decades of deflation.
The G7 issued a joint statement on Tuesday reaffirming "our longstanding commitment to market determined exchange rates". Yet the show of unity was quickly undermined by off-the-record briefings critical of Japan.
This must read Reuters piece was posted on their website early yesterday evening Eastern time...and it's another article courtesy for Roy Stephens. The link is here...and I note they've changed the headline since I posted the story last evening. Now it reads "G20 wrangles on forex, deficits at Moscow talks"
Chinese Globes Anger the Philippines With a Territorial Claim
There's a new tiff brewing between China and the Philippines, Raissa Robles writes for the South China Morning Post, and it's all to do with globes.
Robles writes that a tiny, barely-noticeable line on some Chinese-made globes has created insult in Manilla where they are being sold in bookshops. The line was first noticed by a group of Facebook users, who then emailed a number of news organizations about the globes.
A slideshow Robles put on her personal website details the controversy.
The problem is that these globes appear to use China's "nine-dash" map of the sea, first published in 1947, which shows Chinese territory extending hundreds of miles south from China's Hainan Island to the equatorial waters off the coast of Borneo.
This article showed up on the businessinsider.com Internet site late Wednesday afternoon Eastern time...and I thank Roy Stephens for his final offering in today's column. The link is here.
Robles writes that a tiny, barely-noticeable line on some Chinese-made globes has created insult in Manilla where they are being sold in bookshops. The line was first noticed by a group of Facebook users, who then emailed a number of news organizations about the globes.
A slideshow Robles put on her personal website details the controversy.
The problem is that these globes appear to use China's "nine-dash" map of the sea, first published in 1947, which shows Chinese territory extending hundreds of miles south from China's Hainan Island to the equatorial waters off the coast of Borneo.
This article showed up on the businessinsider.com Internet site late Wednesday afternoon Eastern time...and I thank Roy Stephens for his final offering in today's column. The link is here.
Two King World News Blogs/Audio Interviews
The first blog is with John Hathaway. It bears the title "Give-Up Phase as Gartman Shorting Gold is Bullish". The next two blogs are with Felix Zulauf. Part I is headlined "World Headed Toward 1987 Style Market Collapse"...and Part II is entitled "We May See a Shortage of Gold and a Massive Price Spike". The audio interview is with Gerald Celente.
[The Hathaway interview...along with the two Zulauf interviews aredefinitely worth your time...and Part III will be available on the KWNwebsite later today. - Ed]
[The Hathaway interview...along with the two Zulauf interviews aredefinitely worth your time...and Part III will be available on the KWNwebsite later today. - Ed]
* * *
¤ THE WRAP
My advice is to hold all gold positions and wait patiently for the correction to end. Just before the huge 1979-80 surge, we saw a big 'clean out' correction in gold. I believe history is about repeat. - Richard Russell on King World News
Once again it was another day of "da boyz" slicing the salami to the downside and, as usual, all the price/volume action that really mattered occurred during the Comex session in New York. It was ever thus...as Allan Fotheringham used to say.
Yesterday was another big volume day in gold...and for the first time in a while, silver volume was elevated, although not spectacular. The large volume levels always occur on new low moves to the downside, as the high-frequency traders that work for JPMorgan et al, start the price ball rolling down hill...and the technical fund liquidation always follows as sell stops are hit. Ted Butler has been pointing out this sequence of events for years now...and it was obvious for all to see in yesterday's New York price action.
Based on yesterday's price activity in both gold and silver, I was more than surprised to see their associated equities do as well as they did. However, I have mixed feelings when I see this sort of dichotomy. Either some prescient buyer is scooping up shares on the cheap...or "da boyz" are buying them to unload them later to cap any run-away rally in the HUI. And as I always say at this juncture...I may be looking for black bears in dark rooms that aren't there...but I don't think so...and John Embry, plus others, are of the same mind on this.
Here are the 6-month charts for both gold and silver updated with yesterday's price doji.
Too bad that yesterday's price and volume activity won't be in today's Commitment of Traders Report that comes out later this afternoon. But just eye-balling the Tuesday-to-Tuesday reporting week, I'd guess there should be significant declines in the Commercial net short positions in both gold and silver in today's report. But from very recent past experience, I'm not prepared to bet the ranch on it.
Once again it was another day of "da boyz" slicing the salami to the downside and, as usual, all the price/volume action that really mattered occurred during the Comex session in New York. It was ever thus...as Allan Fotheringham used to say.
Yesterday was another big volume day in gold...and for the first time in a while, silver volume was elevated, although not spectacular. The large volume levels always occur on new low moves to the downside, as the high-frequency traders that work for JPMorgan et al, start the price ball rolling down hill...and the technical fund liquidation always follows as sell stops are hit. Ted Butler has been pointing out this sequence of events for years now...and it was obvious for all to see in yesterday's New York price action.
Based on yesterday's price activity in both gold and silver, I was more than surprised to see their associated equities do as well as they did. However, I have mixed feelings when I see this sort of dichotomy. Either some prescient buyer is scooping up shares on the cheap...or "da boyz" are buying them to unload them later to cap any run-away rally in the HUI. And as I always say at this juncture...I may be looking for black bears in dark rooms that aren't there...but I don't think so...and John Embry, plus others, are of the same mind on this.
Here are the 6-month charts for both gold and silver updated with yesterday's price doji.
(Click on image to enlarge)
You'll note that even though we're at new lows for this move down in both silver and gold, the Relative Strength Indicators [RSI] in both metals are still in neutral territory...but heading for oversold rather quickly. It would be my guess that we should hit rock bottom during the next few trading days...but that all depends on the bullion banks...and Blythe Masters still isn't returning my calls.Too bad that yesterday's price and volume activity won't be in today's Commitment of Traders Report that comes out later this afternoon. But just eye-balling the Tuesday-to-Tuesday reporting week, I'd guess there should be significant declines in the Commercial net short positions in both gold and silver in today's report. But from very recent past experience, I'm not prepared to bet the ranch on it.
And, without question, there's been even more improvement in the Commercial net short positions in both silver and gold since the 1:30 p.m. Eastern time cut-off on Tuesday.
I note that the 'slicing of the salami' has continued in early Far East trading on their Friday...and also shortly after London opened at 8:00 a.m. GMT...3:00 a.m. in New York...as several new lows price ticks have been engineered in both metals by the high-frequency traders. And as I hit the 'send' button at 5:10 a.m. Eastern time, gold volume is already north of 35,000 contracts...and silver's volume is around 5,500 contracts. The dollar index is chopping sideways in a very tight range.
JPMorgan et al may take the opportunity to smack the precious metal prices pretty hard when Comex trading begins at 8:20 a.m. in New York. They passed on that opportunity the other day...and neither Ted Butler or myself could figure out why. Let's see what they have in store for us today...considering the fact that its Friday.
And as I mentioned before, I think we'll see a bottom put in during the next couple of trading days...and my thoughts on this were reaffirmed yesterday when Dennis Gartman said he was shorting gold. When Dennis starts trashing the ancient metal of kings like that, the rest of us should be buying with both hands.
Enjoy your weekend...or what's left of it if you live west of the International Date Line...and I'll see you here tomorrow.
I note that the 'slicing of the salami' has continued in early Far East trading on their Friday...and also shortly after London opened at 8:00 a.m. GMT...3:00 a.m. in New York...as several new lows price ticks have been engineered in both metals by the high-frequency traders. And as I hit the 'send' button at 5:10 a.m. Eastern time, gold volume is already north of 35,000 contracts...and silver's volume is around 5,500 contracts. The dollar index is chopping sideways in a very tight range.
JPMorgan et al may take the opportunity to smack the precious metal prices pretty hard when Comex trading begins at 8:20 a.m. in New York. They passed on that opportunity the other day...and neither Ted Butler or myself could figure out why. Let's see what they have in store for us today...considering the fact that its Friday.
And as I mentioned before, I think we'll see a bottom put in during the next couple of trading days...and my thoughts on this were reaffirmed yesterday when Dennis Gartman said he was shorting gold. When Dennis starts trashing the ancient metal of kings like that, the rest of us should be buying with both hands.
Enjoy your weekend...or what's left of it if you live west of the International Date Line...and I'll see you here tomorrow.
and from silver doctors.....
After consolidating throughout the overnight Asian and London session, the latest COMEX open raid has finally achieved the cartel’s target in silver, with 
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