Friday, March 1, 2013

Ed Steer's Gold & Silver Report - March 1 , 2013 - data from February 28 , 2013 and news and views pertaining to the PMs !




http://jessescrossroadscafe.blogspot.com/2013/03/gold-daily-and-silver-weekly-charts.html


Gold Daily and Silver Weekly Charts - Sequester Will Harm Effectiveness of the CFTC


CFTC Chairman Gensler noted on financial television that the sequester will make the enforcement efforts of his agency in policing the markets harder, and it will be more difficult to 'stop the bad guys on Wall Street.'

Isn't he the one that just went to court and filed a brief in support of market manipulators to overturn the Federal Energy Commission's successful $30 million fine against an Amaranth natural gas trader because the FERC was doing 'his job?'

Chairman Gensler also noted today that LIBOR is useless for ensuring the integrity of commercial business interest rates.   Can't dispute that testimony.

Not to put too fine a point on the irony, but speaking of concocted numbers without genuine merit, and of little value in setting prices for the real economy, has the Chairman looked at the silver futures markets lately?  

Have a pleasant weekend.  

'Oh lawdy, this is grim.  My Grand Slam breakfast!'






Ugly Morning; Gold Pops As Stocks Drop

Submitted by Tyler Durden on 03/01/2013 - 08:28
It's an ugly start to the day wherever we look. Europe is a bloodbath as the dead-cat-bounce hopes fade with Swiss 2Y rates notably negative once again and Italian bond spreads 55bps wider on the week (near the wides of the week) as Italy's equity market plunges back to the lows (-4%) on the week. US equity futures are fading rapidly and after tracking gold for most of the last 12 hours, we are now seeing gold (and silver) resurge as stocks continues to slide back towards bonds un-exuberance. Treasury yields are at the lows of the week (-11bps). From weak macro data overnight to the whocouldanode sequestration, there's plenty to worry about, but then again we have POMO in a few hours...


[Most Recent Quotes from www.kitco.com]
[Most Recent Quotes from www.kitco.com]





http://www.caseyresearch.com/gsd/edition/checkmate-for-gold-against-the-dollar/


"Well, it's obvious that JPMorgan et al aren't through with the liquidation process."

¤ YESTERDAY IN GOLD & SILVER

The gold price chopped around just under the $1,600 mark through most of Far East and London trading on Thursday...and the one feeble attempt to break above that price mark got sold off the moment that London opened.
By the time that New York opened, the gold price was almost back to its Wednesday close.  But around 9:10 a.m. the high-frequency traders showed up...and by the time the low price tick [$1,574.20 spot] was in shortly after 12:00 o'clock noon in New York, gold had been sold down more than twenty bucks from it's 9:10 a.m. high.  From that low, the price recovered a bit, but didn't get far.
Gold closed the day at $1,579.50 spot...down $16.80 from Wednesday's close.  Gross volume was a very hefty 205,000 contracts...and the net volume wasn't much less.



It was pretty much the same story in silver, although the low price of the day [$28.31 spot] came just minutes before 3:00 p.m. in electronic trading in New York.  The silver price recovered a bit after that, but not by much.
Silver finished the Thursday trading session at $28.51 spot...down another 47 cents from Wednesday's close.  Net volume was enormous...around 48,500 contracts.
The dollar index opened in the Far East on their Thursday at 81.56...and then chopped lower from there, with its low tick [81.48] coming half past lunch time in Hong Kong.  By 8:30 a.m. in New York, it had rallied back to unchanged from the open...and then away it went to the upside.  The high was 81.99...and that came right at the close of the equity markets at 4:00 p.m. Eastern time...and it faded a bit form there and finished the day at 81.95...up 43 basis points from Wednesday's close.


Another day, another withdrawal from GLD, as 152,806 troy ounces of gold were removed yesterday.  But, as has been the case throughout this engineered price decline in all the precious metals, the SLV ETF went in the other direction, as an authorized participant added another 676,677 troy ounces yesterday.
Since the beginning of the year, there have been 3.0 million ounces of gold withdrawn from GLD.  But during the same time period, 17.8 million ounces of silver have been added to SLV.
The U.S. Mint had no sales report yesterday, so for the month of February the mint sold 80,500 ounces of gold eagles...11,500 one-ounce 24K gold buffaloes...and 3,368,500 silver eagles.  Based on these sales, the silver/gold sales ratio for February was a bit over 36 to 1.
Over at the Comex-approved depositories on Wednesday, they didn't receive any silver...and shipped 101,590 troy ounces of the stuff out the door.  The link to that activity is here.
Here are two charts that Nick Laird sent me last night.  Both are current as of the close of business on February 28th...and both are self-explanatory.  Note the similarities between them...but also note the striking differences as well.
(Click on image to enlarge)
I have the usual number of stories for a weekday, so I hope you can find the time to read the ones that float your boat.

Sequester cuts are here to stay

Lawmakers and aides say they do not expect Congress to turn off budget sequestration before April and that negotiations to freeze the automatic spending cuts could drag into May or beyond.
Over the last few weeks, there has been increased speculation that the sequester would go into effect Friday but be addressed in a March deal to keep the government funded. 
Don’t bet on it. 
Sen. Richard Burr, a member of the Finance Committee, predicted sequestration would last through the end of the year.
Today's first story was posted on thehill.com Internet site in the wee hours of yesterday morning...and I thank Marshall Angeles for sending it.

Fed’s Fisher: Cut QE to Avoid Stimulus ‘Overkill’

Federal Reserve Bank of Dallas President Richard Fisher said the Fed should scale back $85 billion in monthly bond buying, warning against channeling too much stimulus into a housing market that’s already rebounding.
“The fact that the housing-market gears have now begun to mesh is why I believe we are running the risk of overkill by continuing our mortgage-backed securities purchase program at the current pace,” Fisher said in the text of remarks for a speech Wednesday in New York. “It would be best to taper the dose of QE so that markets can adjust gradually to the eventual removal of this treatment.”
U.S. central bankers are debating how long to pursue their third round of large-scale bond purchases, with some citing signs of economic vigor while others voice concern the Fed is pumping up asset price bubbles. Chairman Ben S. Bernanke defended record stimulus to Congress Tuesday and Wednesday, saying accommodation has helped reduce borrowing costs and spur growth.
This article was posted on the moneynews.com Internet site late Wednesday afternoon...and it's Elliot Simon's second offering in today's column.

Argentina's Bonds Are Diving Head-First After The Country Made Its Most Defiant Showing In Court Yet

Yesterday, Argentina's lawyers made closing arguments in what some are calling 'the debt trial of the century.' Today, the country's bonds are committing suicide.
This case has been going on for years. Billionaire hedge fund manager Paul Singer invested in Argentine sovereign debt on the cheap in the 1990s, and now he wants to get paid 100 cents on the dollar for his investment.
The problem is, a ton of other people that invested at that time took two rounds of haircuts on their debt. They're only getting paid 30 cents on the dollar, and Argentina thinks Singer should do the same. Politicians across the country calling him (and his fellow holdouts) "vulture capitalists."
This businessinsider.com story was posted on their Internet site during the New York lunch hour yesterday...and my thanks go out to Roy Stephens for sending it along.

E.U. 'Troika' rule in Ireland worse than British Empire

"The Troika has done more damage to Ireland than Britain ever did in 800 years," said David Begg, head of the Irish Confederation of Trade Unions.
Mr Begg said the image of Ireland as the poster-child of EU recovery was a myth cultivated by EU creditors whose only interest is to recoup their money.
"At least the IMF officials are willing to admit they have been wrong but the EU officials are total ideologues."
The trade unions say internal consumption has collapsed by 26pc, and investment has fallen to the lowest level in recorded Irish history. Under-employment has reached 23pc despite emigration to Canada, Australia, the US and Britain. "The austerity has to stop. People feel they are drowning," he said.
This Ambrose Evans-Pritchard offering, filed from Dublin, was posted on The Telegraph's website early on Thursday morning GMT...and I thank Roy Stephens for sharing it with us.

B.O.J. Seen Spiking Punchbowl in April Under New Chief Kuroda

The Bank of Japan may add monetary stimulus as early as April as prospective governor Haruhiko Kuroda looks to demonstrate a more aggressive approach to tackling 15 years of falling prices.
Kuroda, the current Asian Development Bank president, would take office after Governor Masaaki Shirakawa retires March 19, if confirmed by Parliament following his official nomination yesterday. Analysts at banks from Nomura Holdings Inc. to Mizuho Securities Co. see more easing as soon as an April 3-4 meeting.
Given a jump in Japanese stocks and slide in the yen in recent months in anticipation of greater stimulus under the new leadership, any failure to move in April risks disappointing investors, ex-Bank of England central banker Adam Posen said this week. With a third-straight fall in consumer prices in January showing the scale of his challenge, Kuroda may seek to adjust the timing, size and type of assets the BOJ buys.
“The party has just started,” said Masaaki Kanno, chief Japan economist at JPMorgan Chase & Co. in Tokyo, who in January predicted that Kuroda would get the job. “Give us more alcohol and get us excited -- he will do that,” Kanno said of Kuroda, predicting that the bank’s open-ended bond purchases --currently scheduled to begin in January -- will be brought forward to May or June.
Print, or die!  This Bloomberg story was filed from Tokyo yesterday...and I thank Ulrike Marx for bringing it to our attention.

Four King World News Blogs/Audio Interviews

The first blog is with Egon von Greyerz...and it's entitled "Western World's Perpetual Motion Ponzi Scheme to Collapse".  Next is Agnico Eagle CEO Sean Boyd. It's headlined "This is What is Happening in Gold Right Now".  The last blog features Citi analyst Tom Fitzpatrick in a "KWN - Special Friday Gold 'Chart Mania'".  The audio interview is with Rick Rule.

'Checkmate' for gold against the dollar

Contrary to the disparagement of its detractors, GATA isn't a "conspiracy theory" organization -- it's a public records, freedom-of-information, accountability-in-government organization that mainly pursues and publishes official statements and documents constituting evidence and confirmation of the Western central bank gold price suppression scheme, evidence and confirmation that GATA's detractors never can discuss or even acknowledge:
But let us call your attention to commentary that -- while not only mere speculation but, worse, anonymous speculation -- is so intelligent and informed (and largely though, not completely, in tune with GATA's thinking) that anyone interested in the gold market should consider its outline of the scheme and purposes of gold market control.
The rest of Chris Powell's preamble to FOFOA's essay is not only a must read...but probably the most important posting that has ever appeared in this column.  So spend the time on it that it richly deserves.  But top up your coffee in advance, as it's a long one...and you should definitely read it more than once.

¤ THE WRAP

The issue which has swept down the centuries...and which will have to be fought sooner or later...is the people versus the banks. - Lord Acton [1834-1902]
Well, it's obvious that JPMorgan et al aren't through with the liquidation process, as they were hard at work again yesterday during the New York trading sessions...both Comex and electronic...and although we didn't make new lows for this move down, it certainly looks like we're heading in that direction.
I must admit that my head is still buzzing after reading that exceptional essay...'Checkmate' for gold against the dollar...as it certainly clarified my thinking on the subject of an overnight revaluation of the gold price...and this brutal takedown in the precious metals that began back in May of 2011 may be reaching its climax with this current engineered price decline.
Ted Butler has always maintained for years...and I've been in full agreement...that when 'revaluation day' actually arrived, it will have been preceded by the worst thrashing the precious metals have ever seen.  We've had it in spades this time around.  But is this it?
And lately I've been intrigued by the constant...and seemingly never-ending decline in GLD...and have wondered where all that gold may be heading...and FOAFOA's essay has been more than helpful in that regard.
As I've said myself over the last five years or so...the world's economic, financial and monetary systems as we know them today, are on their last legs...and it's only the timing of the revaluation that is unknown...but FOAFOA's closing comments were that he expected this "reconciliation" soon...like sometime this year.  I'm not least bit surprised by that statement.
Today we get the latest Commitment of Traders Report for positions held at the close of Comex trading on Tuesday...and I expect it will be a sight to see.  I'll have all the details in tomorrow's column.
Well, the gold price didn't do much in Far East trading overnight...but shortly after 9:00 a.m. in London, the high-frequency traders went to work...and the price is now headed for the nether reaches of the earth.  We're not at new lows for this move down yet, but if this price action continues, it won't be long before we are.  The same price pressure is on in silver as well...and we're already at new lows for this move down.  Volumes are already off the charts, with gold over 40,000 contracts...and silver north of 12,000 contracts.  The bullion banks are serious this time.
The dollar index, which had been drifting quietly lower during Far East trading, hit its nadir at 8:30 a.m. in London...and is now in rally mode...and a hair over 82.00 as of 4:55 a.m. Eastern time.  But the precious metal price action is totally removed from what is going on in the precious metal markets, but you are meant to believe that it isn't.
That's it for today...and I await the Comex open with great interest.
See you tomorrow.




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