http://www.caseyresearch.com/gsd/edition/why-john-hathaway-asks-is-gold-market-manipulation-such-a-stretch
¤ YESTERDAY IN GOLD & SILVER
The gold price didn't do a lot in Far East trading...and it's overseas low came about 9:30 a.m. in London. The New York high came at the Comex open...and then slid from there. But once the London p.m. fix was in at 10:00 a.m. EDT...the high-frequency traders sold the price down by ten bucks or so...and from there it sold off a bit more into the 5:15 p.m. electronic close...finishing virtually on its low of the day.
The New York high, as quoted by Kitco, was $1,329.40 spot...and the low was $1,306.20 spot.
Gold closed on Thursday afternoon at $1,308.90 spot...down $14.30 from Wednesday's close. Net volume was pretty decent at 169,000 contracts.
The silver price was more 'volatile' on Thursday. It got sold off in morning trading in the Far East...hit its low of the day shortly before 10:00 a.m. BST in London...and it's high tick of the day came about ten minutes after the Comex open. After that, the price pattern was very similar to gold's.
Silver's high tick was $20.10 spot...and the New York low tick, which came shortly after 12:00 o'clock noon, was recorded by Kitco as $19.51 spot.
Silver finished the day at $19.63 spot...and net volume was not overly heavy...around 34,000 contracts.
* * *
The dollar index closed in New York late Wednesday afternoon around 81.63...and then rallied for the entire day on Thursday. The index closed at 82.35...up 72 basis points. Once again there was no correlation between the index and the precious metal prices...and if left to their own devices after the Comex open, all would have finished well into positive territory.
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The CME's Daily Delivery Report for 'Day 2' of the August delivery month in gold was posted on their website by the time I got up yesterday morning. It showed that 271 gold and 11 silver contracts were posted for delivery within the Comex-approved depositories sometime today. It showed that ABN Amro was the largest short/issuer with 139 contracts out of its client account...and UBS was a very distant second with 33 contracts out of its client account. Of course the only long/stopper of note was JPMorgan Chase...with 191 contracts in its in-house [proprietary] trading account...and 44 in its client account.
For a change, JPMorgan wasn't involved in any of the silver deliveries in yesterday's report. There were about twenty or so investment houses/bullion banks listed in yesterday's Issuers and Stoppers Report...but that information is no longer available, as it has already been overwritten by the data from 'Day 3' of the CME's Daily Delivery Report discussed in the next paragraph.
The CME's Daily Delivery Report for 'Day 3' was posted on their website at the usual time last night...and it showed that only 48 gold and 18 silver contracts were posted for delivery on Monday. JPMorgan Chase was the long/stopper on 41 of those contracts...6 in its client account...and 35 for it's in-house [proprietary] trading account. And for a change, JPMorgan Chase was the short/issuer out of its in-house trading account on all 18 silver contracts. The link to that Issuers and Stoppers Report is here.
After two days of no report from either GLD or SLV...there were withdrawals from both yesterday. GLD showed a big decline, as an authorized participant withdrew a chunky 202,869 troy ounces. SLV had a withdrawal of 578,729 troy ounces.
There was no sales report from the U.S. Mint.
There wasn't a lot of activity over at the Comex-approved depositories on July 31st. There were 31,858 troy ounces of gold received...and nothing shipped out. In silver, only 987 troy ounces were received...and 31,113 troy ounces were shipped off to parts unknown. The link to the gold activity is here...and the silver 'action' is here.
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selected news and views......
Sadly, Too Big to Fail Is Not Over
There are three issues: the powers of the Federal Reserve, the mandate of the Federal Deposit Insurance Corporation and the vulnerability of taxpayers when one or more large complex financial institutions fail. We have at least five such companies in the United States, all of which are intensely cross-border in their operations (in order of size, JPMorgan Chase, Bank of America, Citigroup, Goldman Sachs and Morgan Stanley).
On the mechanics of what the Fed is allowed to do, Mr. Dodd and Mr. Frank are of course correct that their legislation changed the powers of the Federal Reserve. The precise legal authority that allowed a loan of $85 billion to American International Group in September 2008 no longer exists.
But as Marc Jarsulic and I explained in this space recently, the Federal Reserve still has plenty of other powers that can be invoked to provide support to failing financial companies. For example, the Taunus Corporation (a subsidiary of Deutsche Bank) and perhaps others were saved in 2008 by lending programs that were made available to a broader group of companies or that covered an entire class of assets. Such programs are still legal
But as Marc Jarsulic and I explained in this space recently, the Federal Reserve still has plenty of other powers that can be invoked to provide support to failing financial companies. For example, the Taunus Corporation (a subsidiary of Deutsche Bank) and perhaps others were saved in 2008 by lending programs that were made available to a broader group of companies or that covered an entire class of assets. Such programs are still legal
This longish commentary by Simon Johnson, former chief economist of the IMF, was posted in The New York Times at noon EDT...and I thank Phil Barlett for sending it our way. It's certainly worth reading if you have the time.
Italian Court Upholds Berlusconi Prison Sentence, Setting Stage for Crisis
For years, former Prime Minister Silvio Berlusconi deftly navigated the labyrinth of Italian justice, always finding an exit — until Thursday, when Italy’s highest court handed him his first definitive sentence, upholding a prison term for tax fraud and sending Italy’s fragile government on the road to crisis.
The court called for a re-examination of a ban on Mr. Berlusconi’s holding public office, but did not reject the ban. This staved off the imminent collapse of the right-left coalition of Prime Minister Enrico Letta, which was formed to tackle Italy’s dire economy — but probably only bought it more time.
The Court of Cassation confirmed Mr. Berlusconi’s four-year prison sentence, which had already been reduced to one year under a law aimed at combating prison overcrowding.
This story from The New York Times was posted their Internet site yesterday...and I thank Roy Stephens for his first offering in today's column.
Greece should defy the gunboat creditors
The IMF’s latest report on Greece lays bares the country’s grotesque situation, and exposes the charade of EMU policy.
It states that public debt will reach 176pc of GDP this year, despite the haircut already imposed on pension funds, insurers and sovereign wealth funds (Norway for instance) who loyally stood behind Greece after categorical assurances by EMU leaders that Europe would never let an EMU sovereign state default.
The debt level is supposed to return to 124pc by 2020; a figure for some reason deemed sustainable. Such a feat is obviously preposterous in an economy that is still contracting violently, has seen a decline in exports over the last year, still has a structural current account deficit of 6pc, and (in my view) still has a badly over-valued currency. This target can be achieved only by massive debt write-downs.
The IMF’s mission chief Poul Thomsen was explicit yesterday, saying the only question is how much it will have to be. There is already an €11bn shortfall to meet targets by the end of the year, but that is a fraction of the losses that must inevitably come.
This commentary by Ambrose Evans-Pritchard falls into the must readcategory...and it was posted on The Telegraph's website yesterday. I thank Roy Stephens for his second offering in a row in today's column.
Barrick Takes Write-down, Cuts Dividend as Gold Declines
Barrick Gold Corp., the world’s largest producer of the precious metal, took $8.7 billion of write-downs and cut its dividend after gold prices fell.
Barrick posted a second-quarter net loss of $8.56 billion, or $8.55 a share, compared with net income of $787 million, or 79 cents, a year earlier, the Toronto-based company said today in a statement. The miner said it reduced its quarterly payout to 5 cents a share from 20 cents to improve liquidity.
“This is the prudent course of action,” Chief Executive Officer Jamie Sokalsky said in the statement. “We recognize the importance of dividends to our shareholders, and it is our goal to return more capital to investors in the future.”
Gold-mining companies have announced at least $21 billion of write-downs in the past two months after the metal’s steepest quarterly drop in London trading in more than nine decades. Barrick wrote down the value of its delayed Pascua-Lama mine in the Andes by $5.1 billion and took impairments on other assets including goodwill and a copper mine in Saudi Arabia.
Sokalsky, like every other gold and silver mining executive, knows precisely why they're in such dire straits...and that's because the precious metal prices are rigged...something that gold fund manager John Hathaway finally got around to admitting in his commentary at King World News posted further up in the Critical Reads section. But Sokalsky, like all the heads of the biggest gold and silver producers, is bought and paid for...and would prefer run their industry, their companies...and their respective shareholders into the dirt, rather than confront the issue.
This Bloomberg piece was posed on their website early yesterday afternoon Denver time...and I thank reader Ken Hurt for bringing it to our attention.
Non Farm Payroll Friday ....................................charts at 8 :30am.....
24 HOUR GOLD
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif) |
24 HOUR SILVER
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/silver/t24_ag_en_usoz_2.gif) |
01 AUGUST 2013
A Forensic Investigation of Gold
This is interesting, but apparently somewhat tentative, which is understandable given the nature of the subject.
I am not in a position to assess it quite yet, but I thought it was worth sharing to see what you all might think. I intend to follow this closely and spend more time looking into it. Today I am preoccupied with the wonders of the healthcare system.
I find the opacity in these exchanges and funds to be somewhat frustrating as I am sure many do, as well as the lack of detailed independent audits and full and timely disclosure, especially with regard to what might be considered to be public information.
But still the effort can be made to untangle things as best we can.
Here is a summary of key points by Mr. Ferguson of the analysis.
"GLD was "funded" with gold leased out (sold) by the BoE and SNB.Read the entire article here.I would imagine it would be fairly easy for GLD to address any mistakes in this with a clear statement with regard to any claims or counterclaims on its bullion.
With everything going on, not only are those entities no longer willing to provide supply, they're actually taking their gold back before it's too late.
Holders like Paulson and Soros are the "fly in the ointment" as they have a GLD claim on the same gold that the BoE and SNB claim as their own "leased" assets.
We are witnessing a managed, slow-burn "run" on the London vaults, where supposed "allocated" gold rests for entities worldwide but this gold has instead been leased out, not only to the GLD, but sold into the market and currently dangling around the necks and wrists of Asians as well as being recast into 1Kg Chinese bars."
01 AUGUST 2013
Gold Daily and Silver Weekly Charts - The Day Before the Non-Farm Payrolls Report
The metals were capped lower today as stocks went running higher. Gold was hit a bit harder than silver.
The August delivery period now begins.
Stand and deliver.
End of fractional-reserve gold banking system is in sight, Brodsky tells KWN
Submitted by cpowell on Thu, 2013-08-01 22:02. Section: Daily Dispatches
6p ET Thursday, August 1, 2013
Dear Friend of GATA and Gold:
Paul Brodsky, co-founder with Lee Quaintance of QB Asset Management, both of whom are joining Kopernik Global Investors, today tells King World News that the end of the fractional-reserve gold banking system is in sight, that the system is full of indications of stress, and that he expects the gold price to be reset much higher because of coordinated central bank action rather than ordinary market action. An excerpt from the interview is posted at the King World News blog here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Gold Anti-Trust Action Committee Inc.
On 'Keiser Report,' bullion trader Maguire describes run on the London gold banks
Submitted by cpowell on Thu, 2013-08-01 01:54. Section: Daily Dispatches
9:52p ET Wednesday, July 31, 2013
Dear Friend of GATA and Gold:
Interviewed yesterday by Max Keiser on the "Keiser Report" on the Russia TV television network, London bullion trader and silver market rigging whistleblower Andrew Maguire said there is a run on the London bullion banks, that the Federal Reserve's big dumping of paper gold in April bought a little time for the banks but only increased the offtake of real metal from the grossly overleveraged fractional-reserve gold banking system, that the Bank of England is advancing metal into the London market every day to avert defaults, that the United Kingdom's gold sales begun in 1999 were undertaken to rescue gold short Goldman Sachs, and that the Western gold banking system is now in the same short squeeze that threatened it 14 years ago. Yesterday's "Keiser Report" is posted at YouTube and the interview with Maguire is about 13 minutes long and begins at the 13-minute mark here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Gold Anti-Trust Action Committee Inc.
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