http://harveyorgan.blogspot.com/2013/05/gold-closed-down-770-to-137910-on.html
Tuesday, May 28, 2013
Gold closed down $7.70 to $1379.10 on option expiry day/OI for silver remains elevated at 146,232/1000 contracts of gold served upon longs today and the issuer JPMorgan/Middle East heating up/Japan experiences a sigma 3 bond yield rise last night/
Good evening Ladies and Gentlemen:
Gold closed down $7.70 to $1379.10 (comex closing time). Silver fell by 40 cents to $22.18 (comex closing time)
In the access market at 5:00 pm, gold and silver finished trading at the following prices :
gold: 1380.80
silver: $22.31
Today is options expiry day and generally on days like this we witness bankers try and subdue to the price of gold and silver to keep investors from exercising contracts to obtain precious metals. They did not disappoint us with their criminal behaviour today. Do not worry, we do not have any CFTC regulators on duty.
At the Comex, the open interest in silver fell by 1,110 contracts to 146,232 contracts with silver's fall in price on Friday by 1 cent. The silver OI is holding firm at elevated levels . The OI for the upcoming June contract still remains quite elevated at 125,684 with two days of trading left to go before first day notice. The open interest on the entire gold comex contracts fell by 10,411 contracts to 435,106. The gold deliveries for May fell a touch today remaining at 9.480 tonnes and this is an off month for gold. The number of silver ounces, standing for delivery in May remained constant at 17.210 million oz. ( On first day notice: 14.860 million oz.)
Again, at the Comex, gold is departing as investors are frightened to death of a confiscation similar to what happened at MFGlobal or Refco. Tonight, the Comex registered or dealer gold remains at 1.641 million oz or 51.04 tonnes. The total of all gold at the comex rose slightly and now above the 8 million oz at 8.057 million oz or 250.6 tonnes of gold. However we must see gold leave as contracts are settled for the May and June delivery months.
The GLD reported another loss in gold inventory of 3.91 tonnes. The SLV inventory of silver remained constant.
Today we have 3 great commentary from Bill Holter as he tackles (1) the scandal at the Hong Kong Mercantile Exchange, (2)Japan's folly into massive printing of yen trying to inflate their economy despite a record number of Japanese bonds outstanding and a very high Debt to GDP of 245% and (3) he attacks Larry Edelson's prediction that gold will fall because of the printing of money.
Also today, we have great commentaries from Alasdair Macleod, Alex Newman of Lew Rockwell.com and a great interview with Eric King and Gerald Celente.
In paper stories we have hot breaking news on the conflict inside Syria. You do not want to miss this.
Also we have a plethora of stories on Japan as they experiment with massive printing of yen to inflate their currency by 2%. It is causing huge problems with the bond market as again last night we saw a sigma 3 move as the Japanese bonds rose in yield to .88%. Remember this sets off a derivative mess to Japanese banks who own much of this junk.
We have a story where the EU is now threatening France to get it's house in order or else face the threat of EU sanctions (fines)
We will go over these and other stories but first.....................
Here are the details:
The total gold comex open interest fell by 10,411 contracts from 445,517 down to 435,106 with gold falling by $5.20 on Friday. I guess some of the paper players are giving up playing in the rigged Comex casino. The front non active delivery month of May saw its OI fall by 26 contracts down to 1041. However we had 25 delivery notice filed on Friday. Thus we lost 1 gold contract in May or 100 oz will not stand for the May delivery month. The next active contract month is June and here the OI fell by 21,557 contracts to 125,684 as those who did not give up, rolled into August. June is the second biggest delivery month in gold's calender and first day notice is this Friday . The estimated volume today was huge at 398,909 contracts. The confirmed volume on Friday was good at 179,511 contracts.
The total silver Comex OI completely plays to a different drummer than gold. It rose by 31 contracts from 147,311 up to 147,342, with silver's slight rise in price of 3 cents yesterday. The front active silver delivery month of May saw it's OI fall by 40 contracts down to 109. We had 40 delivery notices filed on Thursday so we neither gained nor lost any silver ounces standing in the May delivery month. The next delivery month for silver is June and here the OI fell by 23 contracts to stand at 349. The next big active contract month is July and here the OI fell by 1196 contracts to rest tonight at 76,667. The estimated volume on Friday was poor, coming in at 26,768 contracts. The confirmed volume on Thursday was excellent at 50,132.
Comex gold/May contract month:
May 28/2013
Ounces
| |
Withdrawals from Dealers Inventory in oz
|
nil
|
Withdrawals from Customer Inventory in oz
|
64.3 (Scotia, Brinks)
|
Deposits to the Dealer Inventory in oz
|
nil
|
Deposits to the Customer Inventory, in oz
| 63,838.797 oz (Scotia) |
No of oz served (contracts) today
|
1000 (100,000 oz)
|
No of oz to be served (notices)
|
41 (4,100)
|
Total monthly oz gold served (contracts) so far this month
|
3007 (300,700 oz)
|
Total accumulative withdrawal of gold from the Dealers inventory this month
|
10,656.61
|
Total accumulative withdrawal of gold from the Customer inventory this month
| 732,301.75 oz |
We had fair activity at the gold vaults.
The dealer had 0 deposits and 0 dealer withdrawals.
We had 1 customer deposit today:
Into Scotia: 63,838.797 oz
total customer deposit: 63,838.797 oz
We had 0 customer withdrawal today:
total customer withdrawals: zero oz
We had 0 adjustments
The JPMorgan customer vault remains at 310,390.402 oz or 9.65 tonnes. Strangely the CME notified us on Friday that 1000 contracts or 100,000 oz was issued from the JPMorgan's customer vaults. Let us see if this is subtracted tomorrow.
The JPMorgan customer vault remains at 310,390.402 oz or 9.65 tonnes. Strangely the CME notified us on Friday that 1000 contracts or 100,000 oz was issued from the JPMorgan's customer vaults. Let us see if this is subtracted tomorrow.
Tonight the dealer inventory reduces again and stands tonight at a low of 1.641 million oz (51.04) tonnes of gold. The total of all gold slightly rises, resting tonight at 8.057 million oz or 250.6 tonnes.
To calculate the quantity of gold ounces that will stand, I take the OI standing for May (1041) and subtract today's notices 1000) which leaves us with 41 notices or 4,100 oz left to be served upon our longs.
Thus we have the following gold ounces standing for metal in May:
3007 contracts x 100 oz per contract or 300,700 oz (served) + 41 notices or 4,100 oz (to be served upon) = 304,800 oz or 9.480 tonnes of gold.
We lost 100 oz of gold standing for the May delivery month.
This is extremely high for a non active month.
We now have the official USA production of gold last year and it registered 230 tonnes. Thus approximately 19.16 tonnes of gold is produced by all mines in the USA. Thus the amount standing for gold this month represents 49.45% of that total production.
end
Silver:
May 28.2013: May silver:
| Silver |
Ounces
|
| Withdrawals from Dealers Inventory | nil |
| Withdrawals from Customer Inventory | 1011.600 oz (Delaware) |
| Deposits to the Dealer Inventory | nil |
| Deposits to the Customer Inventory | nil |
| No of oz served (contracts) | 1 (5,000) |
| No of oz to be served (notices) | 98 (490,000 oz) |
| Total monthly oz silver served (contracts) | 3344 (16,720,000 oz) |
| Total accumulative withdrawal of silver from the Dealers inventory this month | 903,273.57 oz |
| Total accumulative withdrawal of silver from the Customer inventory this month | 4,915,174.9 oz |
Today, we had poor activity inside the silver vaults.
we had 0 dealer deposits and 0 dealer withdrawals.
We had 0 customer deposits:
total customer deposit; nil oz
We had 1 customer withdrawals:
We had 0 customer deposits:
total customer deposit; nil oz
We had 1 customer withdrawals:
i) Out of Delaware: 1011.600 oz
total customer withdrawal 1011.600 oz
we had 1 adjustments today
i. Out of the Delaware vault: 5,182.27 oz was adjusted out of the dealer and back into the dealer account at Delaware
i. Out of the Delaware vault: 5,182.27 oz was adjusted out of the dealer and back into the dealer account at Delaware
Registered silver at : 43.485 million oz
total of all silver: 166.724 million oz.
The CME reported that we had 1 notice filed for 5,000 oz. We have a total of 3,344 notices filed so far this month for 16,720,000 oz. To calculate the number of ounces that will stand in silver, I take the OI standing for May (99) and subtract out today's notices (1) which leaves us with 98 notices or 490,000 oz left to be served upon our longs.
Thus the total number of silver ounces standing in this active delivery month of May is as follows:
3344 contracts x 5000 oz per contract (served) = 16,720,000 + 999 contracts x 5000 oz = 490,000 oz ( to be served) = 17,210,000 oz.
We neither gained nor lost any silver standing today. The total standing for silver is still superb for May.
The total amount standing for May in silver represents 51.22% of ANNUAL silver production from the USA (the USA produces around 33.6 million oz per year.)
Thus the total number of silver ounces standing in this active delivery month of May is as follows:
3344 contracts x 5000 oz per contract (served) = 16,720,000 + 999 contracts x 5000 oz = 490,000 oz ( to be served) = 17,210,000 oz.
We neither gained nor lost any silver standing today. The total standing for silver is still superb for May.
The total amount standing for May in silver represents 51.22% of ANNUAL silver production from the USA (the USA produces around 33.6 million oz per year.)
and.....
Now let us check on gold inventories at the GLD first: almost 4 more tons gone from the GLD ETF......
May 28.2013:
May 24.2013:
May 28.2013:
Tonnes1,012.25
Ounces32,544,916.00
Value US$44.779 billion
May 24.2013:
Tonnes1,016.16
Ounces32,670,593.55
Value US$45.403 billion
* * *
selected news and views.....
Central banks boosted gold holdings in April
Submitted by cpowell on Mon, 2013-05-27 17:53. Section: Daily Dispatches
By Clementine Wallop and Rhiannon Hoyle
The Wall Street Journal
Monday, May 27, 2013
Russia, Kazakhstan, and Azerbaijan boosted their gold holdings in April, a month that saw prices plunge to two-year lows in a pullback that raised questions over the metal's safe-haven status but also offered an opportunity to buy into the market at lower levels.
The International Monetary Fund on Monday issued its monthly gold-buying report, which represents the activities of almost all central banks and is closely watched by gold investors, showing the three former Soviet republics increased their holdings by a cumulative 75% more in April than they did in March.
Official purchasing has provided important support for gold prices over the past few years. According to the World Gold Council, central bank buying represented 11.3% of all gold demand in the first quarter of this year.
Gold prices shed as much as 17% in April and ended the month 7.5% lower. It is currently trading around $1,390 a troy ounce, down almost 12% since the start of the year.
Despite overall net buying, central bank activity was also an important factor in gold's plunge, especially the news April 10 that Cyprus was considering selling 10 tons of gold from its central bank reserves to raise cash. Cyprus' move to sell its gold stoked fears other debt-laden European nations—including Italy, which has the world's fourth-largest gold reserves—could follow suit.
The latest IMF report has been eagerly anticipated, as investors waited to see whether central banks would have shunned gold as prices fell, or if they would come into the market to buy. While it isn't clear when in April the banks purchased the metal, the buying activity signals some central banks' expectation that gold can hold its value over the long term.
"I think the news [of central bank buying] will help to steady the gold price decline," Beijing Antaike gold analyst Yvonne Wang said by telephone. "It shows that some people still have faith in gold."
Altogether, the IMF data shows central bank holdings rose 972,000 ounces last month. This much gold would have been worth some $1.5 billion at the beginning of April and $1.3 billion at the 27-month low of $1,321.50/oz reached April 16.
Central banks tend to buy slowly and hold gold over long periods rather than moving in and out of the market on a day-to-day basis, which helps buffer spot prices from their activity.
The data show Russia bought 269,000 troy ounces last month, taking its reserves to 31.8 million ounces. Kazakhstan added 85,000 ounces, bringing its stocks to 4 million ounces. The Republic of Azerbaijan bought 32,000 ounces, increasing its reserves to 129,000 ounces.
April marked the fourth consecutive month of purchases by Azerbaijan's central bank, which had no gold in its reserves in December.
Holdings at Turkey's central bank rose 586,000 ounces in April to 13.73 million ounces. It has started accepting gold as collateral from commercial banks, which analysts say is the main reason for recent increases rather than purchases.
Central banks in emerging-market countries have increased their holdings over the past few years in reaction to the sovereign-debt crises affecting reserve currencies like the U.S. dollar and the euro. This has helped shore up gold prices by absorbing supply.
While some central banks and many retail buyers have taken advantage of lower prices for physical metal, some investors remain wary of gold futures following six weeks of heightened volatility in the market.
Fund managers' short positions -- bets that the price will fall -- in gold were at a record 79,416 contracts in the week ended May 21, Commodity Futures Trading Commission data showed Friday.
Speculative investors added 1,454 long positions -- bets that prices will rise -- against 4,985 short positions, the CFTC said.
Given the large number of short positions and recent heavy liquidation from gold exchange-traded funds, gold has limited upside for now, according to Antaike's Ms. Wang.
"Gold is still lacking drivers that will push it higher," she said.
And now Bill Holter has a lot to say on what happened here...
(courtesy Bill Holter/Miles Franklin)
If I may...
I'd like to connect a few dots for you. We had a couple of pieces of news come out that were strange. One piece did not even seem credible because of size and the other one seemed odd because of lack of size. Here is what we learned and if true is THE biggest financial news of the 21st century. Europe announced thathttp://www.zerohedge.com/news/
Before I talk about the ramifications of the above, another, seemingly unimportant/unconnected piece of news hit the
tape
http://www.zerohedge.com/news/
OK, so these guys got arrested and had in their possession $500 million fraudulent "collateral". Is this ALL of the fraudulent collateral? Did they have more" Do others possess or have pledged fraudulent collateral? How much" Where and to who has it been pledged? How many times over has it been pledged? ...And then out of nowhere, Europe decides to rein in the Shadow Banking System that is purported to be $80 TRILLION (with a capital "T")! Do you see any connection here? I'll make it easy for you, "collateral" is the common denominator.
I also want to mention that "collateral" is what makes the financial world turn. Everything runs on "credit", if you have "collateral" then you can obtain credit. The problem as now has and is being exposed is that no one knows anymore what collateral is real or even "who's" collateral it is anymore since it has been lent out so many times. Now, to add even more fuel to the fire, it turns out that some of the so called "collateral" is not and was not even real to begin with! Funds in the $ trillions have been lent and now it seems as if the collateral backing many loans may not be real. ...And Europe is now considering pulling the plug on shadow banking? How many "assets" will banks and brokers have to sell to keep their capital ratios adequate?
Do they even have enough real assets to sell to cover
collateral that turns out to be fake or has been lent out 10 times over (not to mention 100 times over). I might also ask the question, "what happens to the markets"? What will happen to the stock markets, bond markets, real estate markets, ALL MARKETS if banks are forced into liquidation to cover for fraudulent or many times pledged collateral?
Back to the HKMEX, though quite small they did not even have the Gold (collateral) to settle contracts with. We have been watching GLD bleed, COMEX inventories decline and JP Morgan monkey with purported inventory between registered and eligible. Massive quantities of paper Gold were sold last month that had the effect of depressing price, was it real Gold? No, we already knew this...but there had to be some sort of "collateral" or letter of credit standing behind the seller right? I mean who could be allowed to sell "naked" contracts if they didn't have the muscle of "collateral" behind them to ensure "settlement" even if only in paper terms, right?
My point is this, the tide is going out and it looks like EVERYONE is naked and no one has drawers on. Margin debt for stocks are at an all time high, shorts by hedge funds in Gold are at an all time high, printing by central banks are at an all time high, yields on sovereign bonds (even the deadbeats like Spain and Italy) were compressed to all time lows and are now rising...and the real economies across the globe are beginning to contract again. The "inflection point" has apparently arrived and fraud everywhere you look is being uncovered. In a system that runs on debt, "collateral" is the foundation. What are the ramifications when "collateral" is questioned and turns out to be nothing more than a piece of paper with no value whatsoever? Everything that has derived value from this initial capital ...is worth nothing. Regards, Bill H.
Submitted by cpowell on Mon, 2013-05-27 17:53. Section: Daily Dispatches
By Clementine Wallop and Rhiannon Hoyle
The Wall Street Journal
Monday, May 27, 2013
The Wall Street Journal
Monday, May 27, 2013
Russia, Kazakhstan, and Azerbaijan boosted their gold holdings in April, a month that saw prices plunge to two-year lows in a pullback that raised questions over the metal's safe-haven status but also offered an opportunity to buy into the market at lower levels.
The International Monetary Fund on Monday issued its monthly gold-buying report, which represents the activities of almost all central banks and is closely watched by gold investors, showing the three former Soviet republics increased their holdings by a cumulative 75% more in April than they did in March.
Official purchasing has provided important support for gold prices over the past few years. According to the World Gold Council, central bank buying represented 11.3% of all gold demand in the first quarter of this year.
Gold prices shed as much as 17% in April and ended the month 7.5% lower. It is currently trading around $1,390 a troy ounce, down almost 12% since the start of the year.
Despite overall net buying, central bank activity was also an important factor in gold's plunge, especially the news April 10 that Cyprus was considering selling 10 tons of gold from its central bank reserves to raise cash. Cyprus' move to sell its gold stoked fears other debt-laden European nations—including Italy, which has the world's fourth-largest gold reserves—could follow suit.
The latest IMF report has been eagerly anticipated, as investors waited to see whether central banks would have shunned gold as prices fell, or if they would come into the market to buy. While it isn't clear when in April the banks purchased the metal, the buying activity signals some central banks' expectation that gold can hold its value over the long term.
"I think the news [of central bank buying] will help to steady the gold price decline," Beijing Antaike gold analyst Yvonne Wang said by telephone. "It shows that some people still have faith in gold."
Altogether, the IMF data shows central bank holdings rose 972,000 ounces last month. This much gold would have been worth some $1.5 billion at the beginning of April and $1.3 billion at the 27-month low of $1,321.50/oz reached April 16.
Central banks tend to buy slowly and hold gold over long periods rather than moving in and out of the market on a day-to-day basis, which helps buffer spot prices from their activity.
The data show Russia bought 269,000 troy ounces last month, taking its reserves to 31.8 million ounces. Kazakhstan added 85,000 ounces, bringing its stocks to 4 million ounces. The Republic of Azerbaijan bought 32,000 ounces, increasing its reserves to 129,000 ounces.
April marked the fourth consecutive month of purchases by Azerbaijan's central bank, which had no gold in its reserves in December.
Holdings at Turkey's central bank rose 586,000 ounces in April to 13.73 million ounces. It has started accepting gold as collateral from commercial banks, which analysts say is the main reason for recent increases rather than purchases.
Central banks in emerging-market countries have increased their holdings over the past few years in reaction to the sovereign-debt crises affecting reserve currencies like the U.S. dollar and the euro. This has helped shore up gold prices by absorbing supply.
While some central banks and many retail buyers have taken advantage of lower prices for physical metal, some investors remain wary of gold futures following six weeks of heightened volatility in the market.
Fund managers' short positions -- bets that the price will fall -- in gold were at a record 79,416 contracts in the week ended May 21, Commodity Futures Trading Commission data showed Friday.
Speculative investors added 1,454 long positions -- bets that prices will rise -- against 4,985 short positions, the CFTC said.
Given the large number of short positions and recent heavy liquidation from gold exchange-traded funds, gold has limited upside for now, according to Antaike's Ms. Wang.
"Gold is still lacking drivers that will push it higher," she said.
And now Bill Holter has a lot to say on what happened here...
(courtesy Bill Holter/Miles Franklin)
And now Bill Holter has a lot to say on what happened here...
(courtesy Bill Holter/Miles Franklin)
(courtesy Bill Holter/Miles Franklin)
If I may...
I'd like to connect a few dots for you. We had a couple of pieces of news come out that were strange. One piece did not even seem credible because of size and the other one seemed odd because of lack of size. Here is what we learned and if true is THE biggest financial news of the 21st century. Europe announced thathttp://www.zerohedge.com/news/
Before I talk about the ramifications of the above, another, seemingly unimportant/unconnected piece of news hit the
tape
http://www.zerohedge.com/news/
OK, so these guys got arrested and had in their possession $500 million fraudulent "collateral". Is this ALL of the fraudulent collateral? Did they have more" Do others possess or have pledged fraudulent collateral? How much" Where and to who has it been pledged? How many times over has it been pledged? ...And then out of nowhere, Europe decides to rein in the Shadow Banking System that is purported to be $80 TRILLION (with a capital "T")! Do you see any connection here? I'll make it easy for you, "collateral" is the common denominator.
I also want to mention that "collateral" is what makes the financial world turn. Everything runs on "credit", if you have "collateral" then you can obtain credit. The problem as now has and is being exposed is that no one knows anymore what collateral is real or even "who's" collateral it is anymore since it has been lent out so many times. Now, to add even more fuel to the fire, it turns out that some of the so called "collateral" is not and was not even real to begin with! Funds in the $ trillions have been lent and now it seems as if the collateral backing many loans may not be real. ...And Europe is now considering pulling the plug on shadow banking? How many "assets" will banks and brokers have to sell to keep their capital ratios adequate?
Do they even have enough real assets to sell to cover
collateral that turns out to be fake or has been lent out 10 times over (not to mention 100 times over). I might also ask the question, "what happens to the markets"? What will happen to the stock markets, bond markets, real estate markets, ALL MARKETS if banks are forced into liquidation to cover for fraudulent or many times pledged collateral?
Back to the HKMEX, though quite small they did not even have the Gold (collateral) to settle contracts with. We have been watching GLD bleed, COMEX inventories decline and JP Morgan monkey with purported inventory between registered and eligible. Massive quantities of paper Gold were sold last month that had the effect of depressing price, was it real Gold? No, we already knew this...but there had to be some sort of "collateral" or letter of credit standing behind the seller right? I mean who could be allowed to sell "naked" contracts if they didn't have the muscle of "collateral" behind them to ensure "settlement" even if only in paper terms, right?
My point is this, the tide is going out and it looks like EVERYONE is naked and no one has drawers on. Margin debt for stocks are at an all time high, shorts by hedge funds in Gold are at an all time high, printing by central banks are at an all time high, yields on sovereign bonds (even the deadbeats like Spain and Italy) were compressed to all time lows and are now rising...and the real economies across the globe are beginning to contract again. The "inflection point" has apparently arrived and fraud everywhere you look is being uncovered. In a system that runs on debt, "collateral" is the foundation. What are the ramifications when "collateral" is questioned and turns out to be nothing more than a piece of paper with no value whatsoever? Everything that has derived value from this initial capital ...is worth nothing. Regards, Bill H.
I'd like to connect a few dots for you. We had a couple of pieces of news come out that were strange. One piece did not even seem credible because of size and the other one seemed odd because of lack of size. Here is what we learned and if true is THE biggest financial news of the 21st century. Europe announced thathttp://www.zerohedge.com/news/
Before I talk about the ramifications of the above, another, seemingly unimportant/unconnected piece of news hit the
tape
http://www.zerohedge.com/news/
OK, so these guys got arrested and had in their possession $500 million fraudulent "collateral". Is this ALL of the fraudulent collateral? Did they have more" Do others possess or have pledged fraudulent collateral? How much" Where and to who has it been pledged? How many times over has it been pledged? ...And then out of nowhere, Europe decides to rein in the Shadow Banking System that is purported to be $80 TRILLION (with a capital "T")! Do you see any connection here? I'll make it easy for you, "collateral" is the common denominator.
I also want to mention that "collateral" is what makes the financial world turn. Everything runs on "credit", if you have "collateral" then you can obtain credit. The problem as now has and is being exposed is that no one knows anymore what collateral is real or even "who's" collateral it is anymore since it has been lent out so many times. Now, to add even more fuel to the fire, it turns out that some of the so called "collateral" is not and was not even real to begin with! Funds in the $ trillions have been lent and now it seems as if the collateral backing many loans may not be real. ...And Europe is now considering pulling the plug on shadow banking? How many "assets" will banks and brokers have to sell to keep their capital ratios adequate?
Do they even have enough real assets to sell to cover
collateral that turns out to be fake or has been lent out 10 times over (not to mention 100 times over). I might also ask the question, "what happens to the markets"? What will happen to the stock markets, bond markets, real estate markets, ALL MARKETS if banks are forced into liquidation to cover for fraudulent or many times pledged collateral?
Back to the HKMEX, though quite small they did not even have the Gold (collateral) to settle contracts with. We have been watching GLD bleed, COMEX inventories decline and JP Morgan monkey with purported inventory between registered and eligible. Massive quantities of paper Gold were sold last month that had the effect of depressing price, was it real Gold? No, we already knew this...but there had to be some sort of "collateral" or letter of credit standing behind the seller right? I mean who could be allowed to sell "naked" contracts if they didn't have the muscle of "collateral" behind them to ensure "settlement" even if only in paper terms, right?
My point is this, the tide is going out and it looks like EVERYONE is naked and no one has drawers on. Margin debt for stocks are at an all time high, shorts by hedge funds in Gold are at an all time high, printing by central banks are at an all time high, yields on sovereign bonds (even the deadbeats like Spain and Italy) were compressed to all time lows and are now rising...and the real economies across the globe are beginning to contract again. The "inflection point" has apparently arrived and fraud everywhere you look is being uncovered. In a system that runs on debt, "collateral" is the foundation. What are the ramifications when "collateral" is questioned and turns out to be nothing more than a piece of paper with no value whatsoever? Everything that has derived value from this initial capital ...is worth nothing. Regards, Bill H.
We now have a world bank whistleblower who believes that no gold is present at Fort Knox:
(courtesy Alex Newman/the New American)
(courtesy Alex Newman/the New American)
 By: Alex Newman, The New American |
-- Posted Sunday, 26 May 2013 | | 0 Comments and 0 Reactions A former insider at the World Bank, ex-Senior Counsel Karen Hudes, says the global financial system is dominated by a small group of corrupt, power-hungry figures centered around the privately owned U.S. Federal Reserve. The network has seized control of the media to cover up its crimes, too, she explained. In an interview with The New American, Hudes said that when she tried to blow the whistle on multiple problems at the World Bank, she was fired for her efforts. Now, along with a network of fellow whistleblowers, Hudes is determined to expose and end the corruption. And she is confident of success. Citing an explosive 2011 Swiss study published in the PLOS ONE journal on the “network of global corporate control,” Hudes pointed out that a small group of entities – mostly financial institutions and especially central banks – exert a massive amount of influence over the international economy from behind the scenes. “What is really going on is that the world’s resources are being dominated by this group,” she explained, adding that the “corrupt power grabbers” have managed to dominate the media as well. “They’re being allowed to do it.” According to the peer-reviewed paper, which presented the first global investigation of ownership architecture in the international economy, transnational corporations form a “giant bow-tie structure.” A large portion of control, meanwhile, “flows to a small tightly-knit core of financial institutions.” The researchers described the core as an “economic ‘super-entity’” that raises important issues for policymakers and researchers. Of course, the implications are enormous for citizens as well. At the heart of the network, Hudes said, are 147 financial institutions and central banks – especially the Federal Reserve, which was created by Congress but is owned by essentially a cartel of private banks. “This is a story about how the international financial system was secretly gamed, mostly by central banks – they’re the ones we are talking about,” she explained. “The central bankers have been gaming the system. I would say that this is a power grab.” The Fed in particular is at the very center of the network and the coverup, Hudes continued, citing a policy and oversight body that includes top government and Fed officials. Central bankers have also been manipulating gold prices, she added, echoing widespread concerns that The New American has documented extensively. Indeed, even the inaccurate World Bank financial statements that Hudes has been trying to expose are linked to the U.S. central bank, she said. “The group that we’re talking about from the Zurich study – that’s the Federal Reserve; it has some other pieces to it, but that’s the Federal Reserve,” Hudes explained. “So the Federal Reserve secretly dominated the world economy using secret, interlocking corporate directorates, and terrorizing anybody who managed to figure out that they were having any kind of role, and putting people in very important positions so that they could get a free pass.” The shadowy but immensely powerful Bank for International Settlements serves as “the club of these private central bankers,” Hudes continued. “Now, are people going to want interest on their country’s debts to continue to be paid to that group when they find out the secret tricks that that group has been doing? Don’t forget how they’ve enriched themselves extraordinarily and how they’ve taken taxpayer money for the bailout.” As far as intervening in the gold price, Hudes said it was an effort by the powerful network and its central banks to “hold onto its paper currency” – a suspicion shared by many analysts and even senior government officials. The World Bank whistleblower also said that contrary to official claims, she did not believe there was any gold being held in Fort Knox. Even congressmen and foreign governments have tried to find out if the precious metals were still there, but they met with little success. Hudes, however, believes the scam will eventually come undone. “This is like crooks trying to figure out where they can go hide. It’s a mafia,” she said. “These culprits that have grabbed all this economic power have succeeded in infiltrating both sides of the issue, so you will find people who are supposedly trying to fight corruption who are just there to spread disinformation and as a placeholder to trip up anybody who manages to get their act together.… Those thugs think that if they can keep the world ignorant, they can bleed it longer.”
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http://www.tfmetalsreport.com/blog/4743/futf-tuesday
FUTF Tuesday
The new week begins with some pretty volatile trading.
Last night, I suggested that The London Monkeys would likely raid gold and silver at their usual appointed hour today. Sadly, they didn't disappoint and price fell back some $20 in the American wee hours of Tuesday. Then, just when all looked lousy after the Comex open, prices shot higher and the June13 actually had the audacity to briefly trade above $1400, reaching a high of $1400.80. At that point, The Monkeys struck back and painted a lousy-looking FUTF on the charts. Nuts.
Oh, well. At least we now know where we stand. Ole Louis Braille himself would be able to see the clear capping effort now being made at $1400. The stage has now been set for this week's battle. We'll have to wait to see who wins but we should have some indications by Friday, at the latest.
Two, main news items today that you might have missed. First, Jim Willie mentioned last week that King Abdullah of Saudi was "basically dead". Looks like he was right. (http://www.presstv.ir/detail/2013/05/26/305584/saudi-arabias-king-clinically-dead/) Now lets see what happens next to:
- The price of crude
- The political stability of Saudi Arabia
- Overall tension level of the MENA
- the future of the petro-dollar
And do you recall this story from two weeks ago? This:http://libertyblitzkrieg.com/2013/05/14/why-has-1-billion-in-gold-been-shipped-from-new-york-to-south-africa/ was sourced from this: http://qz.com/83396/1-billion-of-gold-has-been-shipped-from-new-york-to-south-africa-this-year/. Earlier today, Santa himself issued a public comment on this. Take it fwiw:
Jim,
I wonder how much longer these criminals will play this gold paper game.
David
David,
That question will be answered by the condition of the Comex warehouse as they will change delivery to cash or GLD, in my opinion within 90 days, if the decline of the Comex warehouse gold stock continues. It has been confirmed that the large shipment of gold from the USA to RSA was not scrap as first reported, but Comex 100 ounce gold bars to be melted and cast as Chinese small denominations then shipped to China.
Jim
I wonder how much longer these criminals will play this gold paper game.
David
David,
That question will be answered by the condition of the Comex warehouse as they will change delivery to cash or GLD, in my opinion within 90 days, if the decline of the Comex warehouse gold stock continues. It has been confirmed that the large shipment of gold from the USA to RSA was not scrap as first reported, but Comex 100 ounce gold bars to be melted and cast as Chinese small denominations then shipped to China.
Jim
Shipped to China and recast into smaller denominations? Gee, where have we heard that before??http://www.tfmetalsreport.com/blog/3924/gonefor-good
Speaking of being "gone", the GLD dropped another 22 1/4 metric tonnes of gold last week, dropping its stated "inventory" down to 1016.16 mts. Again, for those doing the math at home...22.25 mts is 715,354 troy ounces. That's approximately 1,788 London good delivery bars or, roughly, 9.5 of these:
Also of interest for those keeping score at home, The Comex reported on Friday that total registered gold is now down to just 1,641,000 ounces or about 51 metric tonnes. That is only enough registered gold to physically settle 16,410 contracts. Recall that Feb and April gold both saw about 13,000 contracts stand for delivery so it won't take much of an increase in June to deplete the entire stated inventory.
We just received the OI number for Friday so, with four days left to go before First Notice Day, the total OI for the June 13 stands at 125,684 of a total OI of 435,106. If you're wondering, with four days to go before February FND, the total OI for the Feb13 was 148,517 out of a total OI of 458,197 and, as we approached FND for the April, Apr13 OI with four days to go was 121,902 out of a total OI at 438,833.
Here's where this will get interesting in June. For Feb, over 13,000 contracts stood for delivery but very few were added during the delivery period. However, in April, just 6,601 stood on FND but an amount nearly equal to that number showed up during the month of April, put up their 100% margin and "jumped the queue". Based on Friday's numbers, it looks like maybe 10,000 or so will stand on Friday. What happens next will tell the tale. If, like April, 6,000+ show up during June to queue-jump, the registered inventory at The Comex will be drained. Rest assured, I'll be watching this very closely.
Finally, there were some great conversations here over the weekend but a couple of comments merit your attention as they may have slipped past you. First, this great summary of the current situation from "Icarus": http://www.tfmetalsreport.com/comment/316025#comment-316025
And "Lamenting Laverne" posted two fascinating items into the Jim Willie thread. Please read them both and then ponder whether or not Laverne is onto something.
Ok, I'm going to stop here for now. Sorry for the delay in getting today's post up but I have been sending out emails all day trying to connect raffle donors with raffle winners. I should be back to a normal "schedule" tomorrow.
TF
From Goldcore:
Today’s AM fix was USD 1,384.50, EUR 1,074.01 and GBP 919.14 per ounce.
Yesterday’s AM fix was USD 1,379.00, EUR 1,067.42 and GBP 913.43 per ounce.
Yesterday’s AM fix was USD 1,379.00, EUR 1,067.42 and GBP 913.43 per ounce.
Gold fell $13.70 or 0.98% yesterday to $1,381.00/oz and silver finished down 1.59%.
Gold edged higher today supported by strong physical demand internationally and especially in Asia.
Demand in the physical market continued to hold prices near $1,400/oz as the recent drops in the spot market encourage buyers internationally to accumulate bullion.
The paper gold market remains volatile and is likely to get more volatile but this is not deterring physical buyers and premiums remain strong in most markets.
Premiums in India and Hong Kong have fallen from the very high premiums of recent days but Singapore, Shanghai, Dubai, Turkey and western markets continue to see high premiums.
Overnight the volume for the Shanghai Gold Exchange’s cash contract surged 55% to 15,641 kilograms from a two-week low of 10,094 kilograms on May 27.
The Shanghai Futures Exchange announced yesterday that they will begin after-hours trading for gold and silver futures within one or two months.
In Singapore, gold coins and bars are being sold at high premiums compared to the spot price as there is not enough supply in the market to meet the strong demand.
Reuters quoted one broker who said that most of the bullion dealers in Singapore were sold out of bullion and that “everybody is buying and no one is selling.”
In India, certain states have either seen coin stocks fall to very low levels and others have actually run out of gold coins.
The drop in gold prices in April led to a surge in bargain hunting in India and globally which is continuing with prices below $1,400/oz.
In Hyderabad, a city of nearly 7 million people , gold and jewellery shops in the city have dwindling stocks of gold coins and bars. Some have completely run out of stock of the best-selling gold coins while others are having to ration their remaining stocks.
The gold rush is expected to continue for some time, due to delays in jewellery and coin shops receiving supplies of coins from banks and bullion brokers.
This is creating a delay in the entire supply chain.
The U.S. Mint sales of gold coins were the highest in 3 years after demand surged on the recent price drop.
Yesterday, the U.S. Mint resumed sales of their 1/10th ounce gold coin after the mint ran out of inventory last month and suspended sales amid record demand.
In the U.S., there are difficulties in sourcing British Sovereigns (0.2345 oz), Chinese Pandas (1 oz) and Australian Kangaroos (1 oz) in volume.
The Royal Mint (UK), The Perth Mint in Australia and other mints are seeing record levels of demand.
This morning The World Gold Council confirmed the very strong demand being seen globally and especially in Asia.
Asian gold demand from this April to June will reach a quarterly record as bullion buyers in China, India and the rest of the region take possession of supply freed up by selling from exchange-traded funds (ETFs), the WGC said.
“Asian markets will see record quarterly totals of gold demand in the second quarter of 2013,” WGC Managing Director Marcus Grubb said in a report released this morning.
Gold demand in India, the world’s largest buyer, is heading for a quarterly record after prices fell to a two-year low in April, The World Gold Council said.
“Even if ETF outflows continue in the United States, it is quite likely that the gold previously held in ETFs will find a ready market among Indian, Chinese and Middle Eastern consumers who are taking a long-term view on the prospects for gold.”
A long term view remains vital to protecting and growing wealth today.
It remains prudent to ignore the poorly informed analysis of the speculators who have been responsible for much of the destruction of wealth in recent years.
Few of them predicted this crisis and most do not understand the importance of diversification and the importance of gold as a safe haven asset. Nor do they know that gold remains nearly half its inflation adjusted high of $2,500/oz seen in 1980 (see chart) and the ramifications of that for the gold market in the coming months and years.
Those who continue to focus on gold’s academically and historically proven safe haven qualities as an important diversification will again be rewarded in the coming months.
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