http://jessescrossroadscafe.blogspot.com/2013/05/gold-daily-and-silver-weekly-charts_21.html
21 MAY 2013
Gold Daily and Silver Weekly Charts - Capping the Gains - Racketeering
FOMC minutes will be released in the afternoon.
The stock market is at bubble levels. And the real economy is languishing. I find it almost incredible how the economists can blithely ignore another bubble once again.
Speaking of Blythe, have we heard any more about the FERC charging JPM with manipulating the energy markets in the manner of Enron? Perhaps the CFTC is still in a snit that other agencies are making them look bad by doing their jobs.
It is interesting to see that prosecutors are considering charging SAC under the RICO statutes.
I can think of a few more candidates who could be investigated for racketeering in the markets.
The buck used to stop at the top. And so might the subpoenas. Although CEOs and Presidents seem to be remarkably uninformed about the things that their organizations do when push comes to shove.
And so it is unlikely that they will get any closer to the heart of the money frauds. That is the credibility trap.
Here is an update on the $1.1 Billion gold shipment from the US to South Africa.
http://www.caseyresearch.com/gsd/edition/ted-butler-blockbuster-in-gold
¤ YESTERDAY IN GOLD & SILVER
After an exciting day on Monday, trading in the Far East was very quiet...and the attempt to break through the $1,400 spot mark around 1:30 p.m. Hong Kong time was the start of a long, slow sell-off that ended at the London p.m. gold fix. The low tick at that point was, according to Kitco...$1,359.00 spot.
The subsequent rally lasted until noon in New York...and that was it for the day.
Gold closed at $1,376.00 spot...down $24.10 from Monday. Net volume was very heavy...around 195,000 contracts.
Silver was under selling pressure right from the New York open on Monday evening...and was down about 50 cents by 9:00 a.m. Hong Kong time. It rallied until around 2:00 p.m...and then, like gold, went into a slow decline, with the low also at the London p.m. gold fix...10:00 a.m. EDT in New York.
And also, like gold, rallied until noon before selling off a bit into the close. The noon low, according to Kitco, printed $22.00 spot.
Silver closed at $22.43 spot...down 49 cents on the day. Gross volume was a chunky 63,000 contracts.
The platinum and palladium charts looked mostly similar.
The dollar index closed at 83.76 in late-afternoon trading in New York on Monday...and then traded more or less sideways until 2:00 p.m. Hong Kong time...and the subsequent rally peaked out at 84.20 about 10:20 a.m. in New York. Then, in less than three hours, the index fell to its low of 83.70 at precisely 1:00 p.m. EDT...giving up all of its earlier gains...and a few basis points more. The index closed at 83.76...unchanged on the day.
The gold price fell $40 as the dollar index rose 41 points between 2:00 p.m. in Hong Kong...and 10:20 a.m. in New York...but when the dollar index declined 52 basis points during the following two and half hours, the gold price only rose by about $15.
The CME's Daily Delivery Report showed that 18 gold and 10 silver contracts were posted for delivery tomorrow within the Comex-approved depositories. The link to yesterday's Issuers and Stoppers Report is here.
GLD had another withdrawal yesterday. This time it was 270,710 troy ounces...and as of 11:38 p.m. last night, there were no reported changes in SLV.
The U.S. Mint had another sales report yesterday. They sold 5,000 ounces of gold eagles...1,500 one-ounce 24K gold buffaloes...and 217,500 silver eagles.
Over at the Comex-approved depositories, there was big movement in silver inventories on Monday. They received 968,451 troy ounces...and shipped 1,119,034 troy ounces out the door. The link to that activity is here.
In gold on Monday, these depositories didn't receive any, but shipped 32,033 troy ounces out the door...and the link to that activity is here.
Selected news ans views .....
Moody's: US Faces Downgrade Without Budget Deal
U.S. policymakers must address debt loads projected to rise later this decade to avoid a 2013 downgrade, even as the latest budget projections are “credit positive,” according to Moody’s Investors Service.
The U.S. budget deficit will drop to $378 billion in 2015 from a record $1.4 trillion in 2009, according to Congressional Budget Office data. The federal government will post a $642 billion deficit this year, the first time in five years that the shortfall has been less than $1 trillion. Moody’s said Sept. 11 that the U.S.’s top Aaa rating would likely be cut to Aa1 if an agreement on the debt ratio isn’t reached.
“The fact that it showed much lower debt levels going forward, we view as a positive development,” Steven Hess, senior vice-president at Moody’s and based in New York, said in a telephone interview of the CBO forecast. “More needs to be done on the policy front to address this rising debt ratio.”
This moneynews.com article was posted on their website early Monday afternoon..and today's first story is courtesy of West Virginia reader Elliot Simon.
SAC’s Cohen Said to Mull Deal That Would Shut Hedge Fund
After five years under investigation for insider trading, Steven Cohen is considering proposing a deal to prosecutors that would shut his $15 billion hedge-fund firm to outside investors, according to a person familiar with his thinking.
Cohen has discussed an agreement under which his SAC Capital Advisors LP would admit wrongdoing but wouldn’t be prosecuted unless it broke the law again, said the person, who asked not to be named because the talks are private. As part of the deal, known as a deferred prosecution agreement, Cohen would close the Stamford, Connecticut-based firm to outside investors and make it a family office that manages his personal fortune. SAC Capital probably would also pay a fine.
That Cohen would ponder a deferred prosecution agreement suggests the 56-year-old billionaire sees it as unlikely that he could fight criminal insider-trading charges and continue to run a hedge fund. Prosecutors, who have already linked at least nine current or former employees to insider trading while at SAC Capital, probably wouldn’t accept an agreement that lets Cohen off the hook, said John Coffee a professor at Columbia University School of Law.
"...won't be prosecuted unless it breaks the law again???" That's saying that you can commit your first murder, bank robbery, or fraud...and get a pass. You can't make this stuff up. This story was posted on the Bloombergwebsite late Monday afternoon...and it's courtesy of U.A.E. reader Laurent-Patrick Gally.
‘Cameron wants to kick E.U. exit issue into long grass’ – Nigel Farage
Despite the British government’s desire to soft-pedal the country’s possible EU exit, the referendum to decide UK’s future in the Union must be held before the 2015 general election, believes the leader of the UK Independence Party, Nigel Farage.
With a lot of hard feeling swirling around the EU, one thing many seem agreed on is anger at Brussels. Nine European countries are now in recession and, with no end to austerity in sight, EU membership appears to be more trouble than its worth for some.
The leader of the Euroskeptical UKIP party, Nigel Farage, says recent research show that by participating in the EU, Britain is annually losing more than £100 billion due to membership fees and the Union’s regulations.
The leader of the Euroskeptical UKIP party, Nigel Farage, says recent research show that by participating in the EU, Britain is annually losing more than £100 billion due to membership fees and the Union’s regulations.
This story was posted on the Russia Today website late Monday evening Moscow time...and it's another contribution from Roy Stephens.
Wealthy bank depositors to suffer losses in E.U. law
A draft European Union law voted on Monday would shield small depositors from losing their savings in bank rescues, but customers with over 100,000 euros in savings when a bank failed could suffer losses.
On Monday, a group of European lawmakers in the house's economics committee voted that, from 2016, large depositors in the European Union might suffer losses if a bank gets into serious trouble, echoing a deal in Cyprus where wealthy depositors were hit hard at two banks to save the country from bankruptcy.
Under the EU proposal, a bank would only dip into large deposits of over 100,000 euros once it had exhausted other avenues such as shareholders and bondholders.
This Reuters story, filed from Brussels, was posted on their website late on Monday evening Europe time...and I thank Manitoba reader Ulrike Marx for sending it along.
Taxes on some wealthy French top 100 percent of income
More than 8,000 French households' tax bills topped 100 percent of their income last year, the business newspaper Les Echoes reported on Saturday, citing Finance Ministry data.
The newspaper said that the exceptionally high level of taxation was due to a one-off levy last year on 2011 incomes for households with assets of more than 1.3 million euros ($1.67 million).
President Francois Hollande's Socialist government imposed the tax surcharge last year, shortly after taking office, to offset the impact of a rebate scheme created by its conservative predecessor to cap an individual's overall taxation at 50 percent of income.
This Reuters item, filed from Paris, was posted on their Internet site early Saturday afternoon EDT...and I thank U.K. reader Teresa Tannahill for bringing it to our attention.
Abe’s Resurgent Japan Hurt by Lack of Business Spending
As Japan’s cherry trees bloomed and the stock market soared, Kohetsu Watanabe flew to a blossom-viewing party in Tokyo hosted by Prime Minister Shinzo Abe to tell the premier personally how bad things really are.
When the head of machine-parts maker Daikyo Seiki Co. shook hands with Abe at the 12,000-guest event in Shinjuku Gyoen park, he says he begged the premier to help small- and medium-sized companies that make up 70 percent of Japan’s industry.
“Stocks and the yen may have come back, but the state of the real economy is very different,” said Watanabe, 49, who has no plans to raise wages for his 17 employees and hasn’t paid a bonus since 2008. “It’s impossible for me to be optimistic.”
This Bloomberg story appeared on their website in the wee hours of yesterday morning MDT...and I found it in yesterday's edition of the King Report.
Four King World News Blogs/Audio Interviews
1. Dr. Stephen Leeb: "Gold, Silver and 100-Year Inflection Point to Crush the West". 2. Richard Russell: "I Haven't Seen This in 60 Years of Writing". 3. Ron Rosen: "Silver to Soar a Stunning 400% and Gold $1,500 in 10 Months". 4. The audio interview is with Egon von Greyerz.
Hong Kong Police Investigate Failed Mercantile Exchange
Police began probing the Hong Kong Mercantile Exchange Ltd., owner of the failed commodities market set up by a member of the city’s cabinet, after the securities regulator found suspected financial irregularities.
The arrest of three men after the May 18 shuttering of the exchange prompted its Chairman Barry Cheung, who sits on Hong Kong’s Executive Council, to say he is taking a leave of absence from all public positions. Cheung hasn’t been accused of wrongdoing.
HKMEx lost its trading license after failing to attract sufficient volumes as it competed with rivals such as the Chicago Mercantile Exchange and the London Metals Exchange, which was bought by Hong Kong’s stock-exchange operator last year. Cheung, who ran the 2012 election campaign for the city’s Chief Executive Leung Chun-ying, is the latest in a series of prominent Hong Kong government and business figures to be affected by criminal investigations.
This businessweek.com story was posted on their website in the wee hours of this morning...and I thank U.A.E. reader Laurent-Patrick Gally for sending it along just before I hit the 'send' button on today's column.
Ted Butler: Blockbuster in Gold
I believe that the big buyer of the 10 million ounces of gold liquidated in the GLD was JPMorgan, either alone or with other collusive commercial banks. The same methodology I’ve previously attributed to a potential Mr. Big in SLV (also probably JPMorgan) is at work in GLD. If one (or 2 or 3) big buyers in GLD had merely purchased the 100 million shares that were sold in GLD, that would have quickly pushed the big buyer(s) over the 5% SEC reporting threshold thereby revealing their identity. But by having the gold redeemed out of the trust and the metal being purchased (instead of shares), stock reporting requirements are evaded. A single holder, perhaps working with a few collusive partners, have come to own what is, effectively, almost a quarter of the world’s largest gold stockpile and no one is the wiser.
This absolute must read is only part of what Ted had to say to his paying subscribers in his Weekend Review on Saturday. I thank Elliot Simon for today's last story.
¤ THE WRAP
What is your "fair Share" of what someone else has worked for? - Thomas Sowell
I was hoping for better price action than we got yesterday, considering the impressive key reversals all four precious metals painted. But that was not to be...and gold's attempt to break above the $1,400 spot price mark in late afternoon trading in Hong Kong got smacked immediately. But the moves we actually got in all four precious metals were out of all proportion to the antics of the dollar index...a fact that I wrote about further up.
The only 'good' thing about yesterday's price action was the fact that, if all the data is reported in a timely manner, this Friday's Commitment of Traders Report should be something to see, as yesterday at the close of Comex trading was the cut-off for it.
As Ted pointed out in his commentary above...and as last COT Report showed...the precious metals are configured for a major move higher. It only remains to be seen if JPMorgan et al will show up as long sellers/short sellers of last resort as prices rise through their critical moving averages.
All we can do is wait it out.
At the moment, gold and silver prices are miles below their current 20-day moving averages...the first moving average of any consequence [according to Ted] as far as the mega-short technical funds are concerned. But sooner or later it will be pierced, either by price action or the passage of time, and then the technical funds who use this average as a target, will start heading for the exits.
Here are the 6-month charts for both gold and silver with their respective 20 and 50-day moving averages...
(Click on image to enlarge)
(Click on image to enlarge)
Gold chopped around the $1,375 spot mark through most of Far East trading on their Wednesday, but about ten minutes before London opened, the gold price popped for about ten bucks. It was the same story in silver, but it only moved about 15 cents during that same period. As I write this paragraph, London has been open ten minutes, so we'll see what happens once the trading day has a couple of hours under its belt.
Volumes are pretty light...at least compared to the volumes we've seen lately at this time of day. Most of it is still of the HFT variety...but there's not a lot of it. The dollar index is up about 7 basis points.
And as I hit the 'send' button at 4:30 a.m. Eastern time, nothing much has changed since I wrote the above paragraph. Gold is up about twelve bucks...and silver is up two bits. The dollar index is flat...and volumes, although understandably higher now, are still pretty light all things considered.
I haven't the foggiest idea how the rest of the trading day will turn out, but we're set up for a rally of biblical proportions if "da boyz" don't show up...and it's just a matter of when, not if, that rally begins. Then, in very short order, we'll find what their intentions are.
See you on Thursday.
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