Saturday, July 13, 2013

Harvey Organ and Ed Steer's Gold and Silver Reports - Weekend Reports - July 13 , 2013 ..... Data , News and Views....

http://harveyorgan.blogspot.com/2013/07/portugal-in-limbo-as-president.html


Friday, July 12, 2013

Portugal in limbo as President threatens with an election/Spanish bad bank in trouble as collateral is now found to be suspect/Portuguese bond yields skyrocket

Good evening Ladies and Gentlemen:


Gold closed down $3.30 to $1277.80 (comex closing time ).  Silver is down by 16 cents to $19.78  (comex closing time)

In the access market at 5:00 pm, gold and silver finished trading at the following prices :

gold: $1284.80
silver:  $19.92

It looks to me that the August delivery month for gold will be exciting to watch with the simple reason that only 30 tonnes remain at all dealers.  We still are patiently waiting for the gold issuance paper from JPMorgan to be settled upon with gold leaving JPM. 

At the Comex, the open interest in silver rose by 449 contracts to 133,151.  


  
The open interest on the entire gold comex contracts rose by 1955 contracts to 429,870 with  gold's rise in price of $32.00 on Thursday.

Tonight, the Comex registered or dealer inventory of gold remains below 1 million oz to 986,464 oz or 30.68 tonnes.  This is still  dangerously low.  The total of all gold at the comex (dealer and customer) falls slightly and registers a reading of  7.109 million oz or 221.14 tonnes of gold.

JPMorgan's customer inventory remains constant at  136,380.609 oz or 4.24 tonnes.  It's dealer inventory also remains  constant at 401,877.493 oz but it still must settle upon contracts issued in the May and June delivery month which far exceeds its inventory.

The total of the 3 major gold bullion dealers( Scotia , HSBC and JPMorgan)  in its Comex gold dealer account registers only 26.04 tonnes of gold. The total of all of the dealers remains tonight at 30.68 tonnes!! Brinks continues to record a low of only 4.18 tonnes in its dealer account.


JPMorgan's customer inventory is now at a extremely low 136.38 million oz or 4.24 tonnes of gold.

The GLD  reported no loss in inventory  tonight  with an inventory reading of 939.07 tonnes of gold.  We lost no  silver inventory at the SLV 

*  *  * 

The total gold comex open interest rose by 1955 contracts from  427,915 up to 429,870 with gold rising in price by $32.00 on Thursday.   The large specs are slowly being let to the slaughterhouse.  We are now into the the non active July contract and here the OI rests at 109 down 5 contracts . We had 1 delivery notices filed on Thursday so in essence we lost 4 contracts or  400 oz gold will not stand for the July delivery month.  The next active delivery month for gold is August and here the OI fell by 11,773 contracts from 186,503 down to 174,730 as we are less than 3 weeks away from first day notice for the August contract month. The estimated volume today was fair at 144,595 contracts. The confirmed volume yesterday was very  good at 250,477.  


The total silver Comex OI rose by 449 contracts with silver rising in price on Thursday by 79 cents.  The total of all comex silver OI stands at 133,151 contracts. We are now into the big delivery month of July  and here the OI fell by 118 contracts down to 957. We had 116 notices filed on Thursday so in essence we lost 2 contracts or 10,000 oz will not stand. The next big delivery month is September and here the OI rose by 340 contracts up to 79,391.  The estimated volume today was anemic coming in at 26,607 contracts.  The confirmed volume on Thursday  was extremely good at 60,152.  
Comex gold/May contract month:
July 12/2013

 the July  contract month 


Ounces
Withdrawals from Dealers Inventory in oz
nil
Withdrawals from Customer Inventory in oz
49,922.859 (HSBC)
Deposits to the Dealer Inventory in oz
nil
Deposits to the Customer Inventory, in oz
 17,594.082 (,Scotia,)
No of oz served (contracts) today
 5 ( 500  oz)
No of oz to be served (notices)
104  (10,400 oz)
Total monthly oz gold served (contracts) so far this month
86  (8,600 oz)
Total accumulative withdrawal of gold from the Dealers inventory this month
329,994.08 oz
Total accumulative withdrawal of gold from the Customer inventory this month


 
335,241.87 oz

We  had good activity at the gold vaults
The dealer had  0 deposits  and no dealer withdrawal

We  had 1 customer deposit today :

i) Into Scotia; 17,594.082 oz


total customer deposits:  17,594.082   oz


 we had 1   customer withdrawals

i) out of HSBC:  49,922.859 oz

 Total Customer withdrawals:  49,922.859  oz

Today we had 1 adjustments

i) out of Scotia:  495.355 oz was adjusted out of the customer and into the dealer account at Scotia.

*  *  * 

Silver:


July 12/2013:  July silver contract month:

July contract month

Silver
Ounces
Withdrawals from Dealers Inventorynil
Withdrawals from Customer Inventory 993.10 oz (Delaware,) 
Deposits to the Dealer Inventory nil
Deposits to the Customer Inventory 6996.11 (Brinks,Delaware)
No of oz served (contracts)56  (280,000 oz)
No of oz to be served (notices)901 (4,505,000 oz)
Total monthly oz silver served (contracts) 2392  (11,960,000)
Total accumulative withdrawal of silver from the Dealers inventory this month143,024.57
Total accumulative withdrawal of silver from the Customer inventory this month1,622,367.1 oz


Today, we  had good activity  inside the silver vaults.
 we had 0 dealer deposits and 0  dealer withdrawals.



We had 2 customer deposits:

i) Into Brinks:  1003.1 oz
ii) Into Delaware:  5993.01 oz


total customer deposit:  6996.11 oz


We had 1 customer withdrawals:


i) Out of Delaware;  993.10  oz


total customer withdrawal  :  993.10 oz

we had 2  adjustments  today

i) Out of Brinks:  4,940.52 oz was adjusted out of the dealer and this landed into the customer account of Brinks

ii) Out of scotia:  34,638.000 oz was adjusted out of the customer and back into the dealer account ofScotia. This is suspicious as we have again x.000 oz adjusted.


*   *   * 

non redundant news and views....

Why Egon von Greyerz expects hyperinflation

Submitted by cpowell on Fri, 2013-07-12 17:37. Section: 
1:35p ET Friday, July 12, 2013
Dear Friend of GATA and Gold:
Writing for King World News, gold fund manager Egon von Greyerz explains why he expects hyperinflation as the West declines, as the Roman empire did, from "a kingdom of gold to one of iron and rust." His commentary is posted at the King World News blog here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.


Both Gene Arensberg and John Hathaway expect a short squeeze in gold as the commercials continue to go long and the large specs continue to short:

(courtesy Gene Arensberg/John Hathaway/Eric King/ Kingworldnews

GGR's Arensberg, Tocqueville's Hathaway sense a short squeeze in gold

Submitted by cpowell on Fri, 2013-07-12 01:47. Section: 
9:45p ET Thursday, July 11, 2013
Dear Friend of GATA and Gold:
The Got Gold Report's Gene Arensberg tonight compiles the major elements of what could be "the stuff of a gold bear reversal" and a massive short squeeze:
Tocqueville Gold Fund manager John Hathaway offers similar ideas in an interview with King World News. "Sentiment is ripe for a complete reversal on gold, and a very sharp one," Hathaway says. "We know the market is structured in a way that is very vulnerable to a short squeeze, which I think has already started, but we are still in the very early stages of it. We have had a lot of false starts in the gold market, but this one sure looks like a massive upside reversal will soon be upon us.”
Hathaway also speculates that the U.S. government may try to escape infinite bond monetization by requiring tax-deferred retirement accounts to maintain 20 percent of their assets in Treasury securities paying interest of 2 percent or less. Why should gold be the only thing subject to confiscation?
An excerpt from the interview is posted at the King World News blog here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.




and....









http://www.caseyresearch.com/gsd/edition/jim-rickards-your-personal-gold-standard


"Is this a sign that things haven't changed even though JPMorgan Chase is long gold?"
 

¤ YESTERDAY IN GOLD & SILVER

The gold price didn't do much of anything in morning trading in the Far East. But around noon in Hong Kong, the price began to develop a negative bias...and the low of the day was set just after 12:00 o'clock noon BST in London trading. At that point, the gold price was down about fifteen bucks from Thursday's close in New York. From there it rallied in fits and starts until shortly after 3:00 p.m. EDT...and then traded flat into the 5:15 p.m. electronic close...back to almost unchanged on the day.
Gold closed the Friday session at $1,284.80 spot...down 80 cents from Thursday. Net volume was a very quiet 109,000 contracts.
It was almost the same price pattern in silver, except the rally off the noon low in London didn't get silver back to anywhere near where it closed trading on Thursday.
Silver finished the day at $19.91 spot...down 24 cents on the day. Gross volume was nothing special...around 29,500 contracts.
Here are Friday's charts for platinum and palladium...
The dollar index closed at 82.75 late on Thursday afternoon in New York...and began to rally almost the moment that trading began in the Far East. The index topped out at 83.22 just before 9:30 a.m. EDT in New York...and then began a long, slow slide into the close. When all was said and done, the index finished the Friday session just below the 83.00 mark at 82.97...up 22 basis points on the day. Nothing to see here.


The CME's Daily Delivery Report showed that zero gold and 24 silver contracts were posted for delivery on Tuesday within the Comex-approved depositories...and it was the same old, same old.
The only short/issuer of note was JPMorgan Chase out of its client account, with 23 contracts. JPMorgan Chase was the long/stopper in its proprietary [in-house] trading account with 22 contracts...and 2 contracts were stopped in its client account. These guys are shameless. No matter how small the amount, JPM is still prepared to screw their customers over.
There were no reported changes in GLD yesterday, but much to my amazement, there was another big chunk of silver deposited in SLV. An authorized participant added 1,929,620 troy ounces. So far in July about 9.20 million ounces of silver has been added to SLV...and 980,000 troy ounces have been withdrawn from GLD. The dichotomy is amazing to watch.
Joshua Gibbons, the Guru of the SLV Bar List, updated his website yesterday for the goings-on within SLV at the close of business on Wednesday...and these were his comments: "Analysis of the 10 July bar list, and comparison to the previous week's list...6,034,411.1 oz. were added (4.8M oz. to Brinks London, 1.2M oz. to JPM London V), 1,740,037.3 oz. were removed (all from Brinks London)...and no bars had a serial number change.
The bars added were from: Solar Applied Materials (1.6M oz.), Russian State Refineries (1.2M oz.), Krasnoyarsk (1.0M oz.), and 10 others. The bars removed were from: Nordeutsche (1.5M oz.), Solar Applied Materials (0.2M oz.), and 2 others.
About 1.2M oz. of the 6.0M oz. added had been in SLV previously (removed in January 2013). Almost all the bars that were removed were bars added to SLV in January or March of this year." The link to his website ishere.
There was a smallish sales report from the U.S. Mint yesterday. They sold 3,500 ounces of gold eagles...2,500 one-ounce 24K gold buffaloes...and 85,000 silver eagles. Month-to-date the mint has sold 24,500 troy ounces of gold eagles...11,500 one-ounce 24K gold buffaloes...and 1,656,500 silver maple leafs. Based on these sales figures, the silver/gold ratio works out to 46 to 1.
It was a very quiet day in silver over at the Comex-approved depositories on Thursday, as they only received 6,996 troy ounces...and shipped 993 troy ounces out the door.
It was a little busier in gold, as 17,594 troy ounces were reported shipped in...and 49,922 troy ounces were shipped out. The link to that activity is here.
The Commitment of Traders Report for positions held at the close of Comex trading on Tuesday showed minor improvements in the Commercial net short positions in both silver and gold.
In silver, the Commercial net short position declined by another 4.36 million ounces...and is now down to a paltry 34.5 million troy ounces. The 'Big 4' short holders, which obviously still includes JPMorgan Chase, are short 153.1 million troy ounces of silver...and that represents 35.6% of the entire Comex futures market in silver on a 'net' basis...once the market-neutral spread trades are removed. I'm speculating here, but probably half that amount...75 million troy ounces, or maybe a bit less...represents the current JPMorgan short position.
In gold, the Commercial net short position declined by a further 373,500 troy ounces...and is now down to 1.90 million ounces. This is a record low that goes back so far that it's irrelevant when it occurred. The 'Big 4' short holders...which does not include JPMorgan Chase...are short 29.8% of the entire Comex futures market in gold on a 'net' basis.
Ted Butler figures that JPMorgan's long position in gold in the Comex futures market is now around 7.5 million troy ounces...however, as I mentioned above, they're still short a significant chunk of silver on the same exchange, but probably have that covered in some other market.
Since this is my Saturday column, I always use the opportunity to unload my in-box into it...and today is no exception.

Economic / Sovereign entries

Doug Noland: Bernanke's Comments

Somehow the Fed has succeeded in making unstable global markets even more so. Well, allow me to suggest a few things the Fed shouldn’t do if it endeavors to enhance financial stability. It shouldn’t peg short-term interest rates; it shouldn’t seek to manipulate long-term market yields (bond prices); it shouldn’t seek to promote the stock market or risk assets more generally – as all such interventions work to distort market behavior, misprice securities and risk, and incentivize destabilizing speculation. Its policy doctrine should not incentivize the issuance of potentially destabilizing marketable debt, at the expense of more stable traditional bank finance. The Fed should not pre-commit to a future policy course – or provide policymaking “transparency” that works to promote risk-taking and speculation. The Fed should only resort to backstopping market liquidity in the event of dire systemic vulnerability.
Generally, in what direction should the Fed be going? When it comes to financial stability, the Fed must be disciplined and pre-emptive. In this World of Unanchored Global Finance, the Fed finds itself full-circle back to where it began 100 years ago: It’s imperative that some type of policy regime or mechanism is constructed to help regulate U.S. and global Credit. The Fed must develop a framework for recognizing Bubble dynamics and nipping them in the bud before they become too powerful to address. And, importantly, the Fed will need to scrap this inflationist doctrine and dangerous notion that our central bank can print its away out of problems. It can’t. As we’ve been witnessing, the Fed can only “print” more and inflate bigger Bubbles. Clearly, there’s too much left unlearned from the Fed’s checkered 100-year history.
Doug's Credit Bubble Bulletin is a must read for me every week over at theprudentbear.com Internet site...and I thank reader U.D. for sending it our way.

Fitch Cuts France's Credit Rating on Budget, Economy Woes

Fitch cut France's credit rating Friday to AA-plus on an uncertain economic outlook amid the ongoing Eurozone crisis and the need for structural reform. The move cost the monetary union's number-two economy its last major triple-A rating.
The outlook is stable.
In explaining the cut, the rating agency cited a number of causes for concern: weaker economic output, a jump in the unemployment rate, budget deficits and subdued external demand, among others.
Standard & Poor's rates the country AA-plus with a negative outlook. Moody's rates the country Aa1 with a negative outlook.
These ratings mean nothing, as far as I'm concerned. Their bonds are junk just like everyone else's, as they'll never be repaid. This story appeared on theCNBC's website yesterday morning EDT...and it's courtesy of U.A.E. reader Laurent Patrick-Gally.

Fed Puzzle: The Massive Collapse in Money Velocity

Everybody's watching the U.S. Federal Reserve Bank these days and speculating about what they are going to do. Given Bernanke's speech yesterday in Cambridge, markets now appear to be perceiving a still-dovish Fed.
But why is the Fed still so dovish? What are they worried about? Here's an interesting twist: Few people are talking about the complete collapse in money velocity, which is now at a five-decade low.

Money velocity is one of those key metrics on the Fed dashboard. If the trillions in Fed stimulus were really working it's way into the economy or "Main St." as was designed, you would see an increase in rate that money moves through the economic system with lending, monetary transactions, and economic activity—the measure known as Money Velocity.
This story was posted on the businessinsider.com Internet site on Thursday morning EDT...and it's definitely a must read. I thank reader Brad Robertson for today's first story.

Constitutional Crisis Pushes Portugal Closer to the Brink

Yields on 10-year Portuguese bonds jumped more than 100 basis points to 7.85pc in a day of turmoil, kicked off by a government request to delay the next review of the country’s EU-IMF Troika bail-out until August.
President Anibal Cavaco Silva set off a constitutional crisis on Thursday when he vetoed a reshuffle by the two conservative coalition parties, insisting on a red-blue national unity government with greater legitimacy to see through austerity cuts until mid-2014.
Socialist leader Antonio José Seguro has so far refused to take part, demanding fresh elections to clear the air. “We must abandon the politics of austerity, and renegotiate the terms of our adjustment programme. The prime minister must accept that his austerity policies have failed,” he said.
This Ambrose Evans-Pritchard offering was posted on The Telegraph's website early yesterday evening...and it's definitely worth reading...and I thank Manitoba reader Ulrike Marx for being the first reader through the door with this story yesterday.


Geopolitical

South American States to Recall Ambassadors from Europe over Bolivian Plane Incident

South American countries belonging to the Mercosur trade bloc have decided to withdraw their ambassadors for consultations from European countries involved in the grounding of the Bolivian president’s plane.
"We've taken a number of actions in order to compel public explanations and apologies from the European nations that assaulted our brother Evo Morales," explained Venezuela's President Nicolas Maduro, who revealed some of the agenda debated during the 45th summit of Mercosur countries in Uruguay's capital, Montevideo.
The decision to recall European ambassadors was taken by Maduro, Argentina’s President Cristina Fernandez, Brazilian President Dilma Rouseff, and Uruguay’s President Jose Mujica, during the meeting.
This is another story from Russia Today. This one was posted on their website late yesterday evening Moscow time...and it's also courtesy of Roy Stephens.

Asylum for Snowden Won't Stop Greenwald from Publishing More Leaks

NSA whistleblower Edward Snowden has indicated that he is willing to halt his leakage of US secrets, a condition for gaining Russian asylum, though the journalist who first published information from those leaks intends to continue.
Glenn Greenwald, a journalist working with both the British Guardiannewspaper and Brazil’s O Globo, had been in direct contact with the now fugitive Snowden and coordinated with the former intelligence contractor ahead of publishing information on secret online surveillance programs.
"Given everything I know, I'd be very shocked if he ever asked me that," Greenwald told Politico when asked if he would halt publishing any sensitive information if Snowden were to ask. "I'd deal with that hypothetical only in the extremely unlikely event that it ever happened, but I can't foresee anything that would or could stop me from further reporting on the NSA documents I have," he added.
This story appeared on the Russia Today website in the wee hours of this morning Moscow time...and I thank Roy Stephens for bringing it to our attention.

Putin Dresses Down the Group of Eight

Below is a translation from As-Safir, a Lebanese newspaper, July 6, 2013, by Arabic-English translator Eric Mueller. As the translator was not present at the Group of Eight meeting, he cannot vouch for the accuracy of the report, only for the accuracy of the translation. The report by Dawud Rimal does reflect Putin’s no-nonsense manner of speaking. The report from As-Safir contrasts with the US coverage.
Diplomatic sources: Putin tells G8 “You want Asad to resign. Look at the leaders you’ve made in the Middle East.”
This eye-opening commentary by Putin is a must read for all serious students of the New Great Game...at it was posted on the paulcraigroberts.org Internet site on Wednesday. I thank Ulrike Marx for bringing it to my attention...and now to yours.

Islam's Civil War moves to Egypt

war now enveloping the Muslim world from the Hindu Kush to the Mediterranean.

It took just two days for the interim government installed last week by Egypt's military to announce that Saudi Arabia and other Gulf States would provide emergency financing for the bankrupt Egyptian state. Egypt may not yet have a prime minister, but it does not really need a prime minister. It has a finance minister, though, and it badly needs a finance minister, especially one with a Rolodex in Riyadh.
Meanwhile, Egypt's central bank governor, Hisham Ramez, was on a plane to Abu Dhabi July 7 "to drum up badly need financial support", the Financial Times reported. [2] The Saudis and the UAE had pledged, but not provided, US$8 billion in loans to Egypt, because the Saudi monarchy hates and fears the Muslim Brotherhood as its would-be grave-digger.
This essay was posted on the Asia Times website on Monday...and I've been saving it for today's column. It's courtesy of Marshall Angeles.

Views / PMs


Three King World News Blogs


Shanghai Gold, Silver Volumes Hit Records in After-Hours Trade

Trading volumes for gold and silver on the Shanghai Futures Exchange [ShFE] have jumped to record highs a week after the bourse launched after-hours trading, driven by a surge in investment and hedging demand.
The ShFE, China's biggest commodity exchange by contract value, launched night trading on July 5 to give investors a tool to manage risk during trading hours in London and New York.
The extended hours could give China a better hold in the global gold market and offer a taste of what lies ahead for contracts such as base metals, if the exchange sticks to plans to extend trading hours for other products.
"The pricing power for main commodities is still decided by trading in overseas market, and any large price movement will not be favourable for domestic investors to control risks," said Sun Yonggang, an analyst with Everbright Futures in Shanghai.
This Reuters story, filed from Shanghai, was posted on their website in the wee hours of yesterday morning EDT...and it's courtesy of Ulrike Marx.

Asia Gold-Shanghai Gold Premiums Remain high, Supply Tight

Shanghai gold premiums were at high levels this week as supplies into the world's second-biggest gold consumer dwindled and are set to remain tight over the next few months.
Prices for gold of 99.99 percent purity on the Shanghai Gold Exchange were nearly $30 per ounce higher than London spot prices.
Normal premiums in Shanghai are about $5 to $7 an ounce, traders said, adding that premiums have been higher than those levels for a while now.
This Reuters story, filed from Singapore, was posted on their website very early Friday morning EDT...and it's another news item courtesy of Ulrike Marx. It's definitely worth your time.

Pan American Silver CFO: Here's the Bottom for Silver

According to Pan American Silver's most recent quarterly report, the company experienced a total cost of $17.29 per ounce of silver mined in the first quarter of 2013. With the silver price recently dipping down to $18.18 per ounce at the end of June before recovering, the company's margin on production is starting to look awfully thin. That, in turn, could have an impact on the company's operations.
"The recent drop that we've seen in precious metal prices has definitely been challenging the industry, and in our case we have a portfolio of mines, and some are lower cost and some our higher cost. And when we look across the industry, for sure, we see that the current price is challenging those higher-cost operations," Pan American Silver CFO Rob Doyle told "Futures Now" on Thursday.
"We are seeing some supply-side response to the recent drop in precious metal prices," Doyle said. "So I think fundamentally, at some point, there will be a floor that comes into play."
In other words, a lower silver price could cause miners like Pan American Silver to shut down some of their most expensive mines. This, in turn, could provide a floor for the silver price, because supply would eventually be reduced.
Pan American's CFO mentions "large speculative players"...meaning JPMorgan Chase, of course...but never calls it what it really is...price management.Regardless of their size, all the silver mining companies are aware of the fact that JPM rigs the precious metal markets...but PAAS is strong with the dark side of The Force...and would never bite their master's hand. This very brief [56 seconds] video clip was posted on the CNBCwebsite early yesterday morning...and it's worth watching. I thank West Virginia reader Elliot Simon for sending this story our way.

US Gold Output Declines in March and First Quarter: USGS

In its latest Mineral Industry Survey, The U.S. Geological Survey has reported that U.S. gold production declined 5% in the first quarter of the year.
Production of gold by U.S. mines was 18,500 kilograms (594,788 troy ounces) in March, down 2% from 18,900 kilograms (607,649 troy ounces) in March 2012.
For the first quarter of this year gold production totaled 54,000 kg (1,736,140 oz.), the USGS said. The average daily gold production for U.S. mines was 596 kg (19,161 oz.) in March, down from 610 kg (19,611 oz.) in March 2013.
I found this short story on the mineweb.com Internet site in the wee hours of this morning...and it's definitely worth skimming.


Drop in Gold, Silver Imports Helps Cool India's Current Account Deficit

After hitting a record high, India's trade deficit narrowed in June to $12.24 billion as gold imports dropped significantly due to government curbs.
Analysts said these measures appear to have worked as the growth in gold and silver imports slowed to 22.8 per cent year-on-year at $2.45 billion last month.
Gold and silver imports in June decreased to $2.45 billion from $8.4 billion in May. India’s current account deficit may have peaked last year, but funding the gap is becoming a bigger concern.
World's largest gold consumer India imports almost all the gold it needed and the yellow metal is the second-largest item imported from abroad which is the main culprit behind CAD hike.
This news item, filed from New Delhi, was posted on the bullionstreet.comInternet site yesterday afternoon IST...and it's Ulrike Marx's final contribution to today's column.

Jim Rickards: Your Personal Gold Standard

There isn’t a central bank in the world that wants to go back to a gold standard. But that’s not the point. The point is whether they will have to.
I’ve had conversations with several of the Federal Reserve Bank presidents. When you ask them point-blank, “Is there a theoretical limit to the Fed’s balance sheet?” they say no. They say there are policy reasons to make it higher or lower, but that there’s no limit to the amount of money you can print.
That is completely wrong. That’s what they say; that’s how they think; and that’s how they act. But in their heart of hearts, some people at the Fed know it’s wrong. Luckily, people can vote with their feet.
I always tell people who say we’re not on the gold standard that, in a way, we are. You can put yourself on a personal gold standard just by buying gold. In other words, if you think that the value of paper money will be in some jeopardy, or confidence in paper money may be lost, one way to protect yourself is by buying gold, and there’s nothing stopping you.
Jim wrote this piece for The Daily Reckoning website on Friday...but this particular copy of it was posted on the wallstreetpit.com Internet site...and I thank Harold Jacobsen for our final story of the day. It's a must read for sure.

¤ THE WRAP

Today's pop 'blast from the past' is by an American singer-songwriter-composer who was most famous in the mid to late 1970s...and this is one of his many hits, which I remember very well.
The Violin Concerto in D major, Op. 35, written by Pyotr Ilyich Tchaikovsky in 1878, is one of the best known of all violin concertos. It is also considered to be among the most technically difficult works for violin. Well, difficult or not, Dutch violinist Janine Jansen tosses it off like any gifted prodigy would...as she makes it look easy. I can't make up my mind whether she's my favourite violinist...as she's pretty much tied with Sarah Chang for those honours. Here's Janine with a very recent recording performed and broadcast on April 19, 2013, with Paavo Järvi conducting the Frankfurt Radio Symphony Orchestra in the Alte Oper Frankfurt. It doesn't get any better than this. The link is here.
With no volume to speak of, the prices didn't do much anywhere on Planet Earth on Friday.
However, as it has always been lately, it's how the current internal structure of the Commitment of Traders Report resolves itself when the next serious rally starts. Will JPMorgan Chase be going short against all comers...or will they simply put their hands in their pockets?
They were certainly active on Wednesday evening in New York...and up until ten minutes after the 8:20 a.m. EDT Comex open on Thursday morning in New York as well. I was not happy to see this massive intervention...and I'm already wondering what next Friday's Commitment of Traders Report may look like, providing nothing happens between now and the Tuesday cut-off.
Is this a sign that things haven't changed even though JPMorgan Chase is long gold...and probably pretty much out of their short position in silver? Beats me.
So, it has become a waiting game. Will it be next week, next month...or what? This situation must resolve itself at some point...and as I'm sure you're getting tired of hearing, it will be resolved at a point in time of JPMorgan's choosing...unless a black swan shows up out of nowhere.
That's all I have for today...and the week...and I'll see you here on Tuesday.


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