Just wondering if the rise is for real or just a set up for the next hear breaker ?
Gene Arensberg's GGR: Big changes in gold futures market composition
Submitted by cpowell on Mon, 2013-08-12 18:09. Section: Daily Dispatches
2:05p ET Monday, August 12, 2013
Dear Friend of GATA and Gold:
Gene Arensberg's new Got Gold Report identifies substantial changes in gold futures market positions. Aresnberg writes: "Despite very large changes in the positioning of the swap dealers and other reportables, which we find incredibly interesting but unreadable, there is still a tremendous amount of heavy short-covering firepower now via the traders we least associate with the short side of gold, the traders the CFTC classes as 'managed money, other reportables, and smaller non-reportables.' Arensberg's analysis is posted at the GGR Internet site here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Gold Anti-Trust Action Committee Inc.
Commodity trader tells Bloomberg TV of 'huge run' on physical gold
Submitted by cpowell on Mon, 2013-08-12 18:01. Section: Daily Dispatches
2p ET Monday, August 12, 2013
Dear Friend of GATA and Gold:
Bloomberg News television today lets Mihir Dange, co-founder of commodity trading firm Grafite Capital, remark that his company bought physical gold eight weeks ago but still hasn't gotten delivery yet. Dange says "there's a huge run on physical now." Dange's comment begins at the 1:30 mark in the video here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Gold Anti-Trust Action Committee Inc.
Gold is overcoming the central banks, Embry tells King World News
Submitted by cpowell on Mon, 2013-08-12 16:20. Section: Daily Dispatches
12:15p ET Monday, August 12, 2013
Dear Friend of GATA and Gold:
Central banks have thrown everything they can at gold and silver but seem to be failing to keep the price down any more, Sprott Asset Management's John Embry tells King World News today. Embry says "tapering" of central bank bond buying is impossible because it would explode the interest-rate derivatives in the world banking system. He expects a substantial upward revaluation of gold. An excerpt from his 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.
Hedge funds wrong-footed shorting gold, Norcini tells King World News
Submitted by cpowell on Sat, 2013-08-10 23:07. Section: Daily Dispatches
Submitted by Tyler Durden on 08/12/2013 17:16 -0400
Gold closed up $2.20 to $1334.70 (comex closing time ). Silver was up 93 cents to at $21.33 (comex closing time).
In the access market today at 5:15 pm tonight here are the final prices:
gold: $1336.20
At the Comex, the open interest in silver fell by 155 contracts to 133,870 with silver up 22 cents on Friday .
Tonight, the Comex registered or dealer inventory of gold rose slightly but still well below the 1 million oz mark at 852,930.107 oz or 26.53 tonnes.
The gain was due to adjustments.
This is dangerously low especially when we are now into the August delivery month. The total of all gold at the comex (dealer and customer) falls slightly again tonight and this time just below the 7 million oz barrier resting at 6.999 million oz or 217.71 tonnes.
JPMorgan's customer inventory falls tonight at 100,112.028 oz or 3.11 tonnes. It's dealer inventory rises to 361,606.12 oz (11.24 tonnes)
The total of the 3 major gold bullion dealers( Scotia , HSBC and JPMorgan) in its Comex gold dealer account slightly increased their inventory tonight to 21.93 tonnes of gold. Brinks continues to record a low of only 4.14 tonnes in its dealer account.
The GLD reported no gain in inventory tonight with a reading of 911.13 tonnes of gold. We had no change in silver inventory at the SLV.
Today, we have the 26th consecutive day for negative GOFO rates with the 3 months rate slightly falling to -.075000 from Friday's level of -.08000%. The one month GOFO rate remains relatively high in negativity at -.10833 a slight fall form Friday's-0.1150% The two month rate fell slightly in negativity to-0800 from Friday's -09667; and the 6 month GOFO rate continued in the negative column at-00167 from Friday's -.00500%. Basically it means that gold is dearer in the present than in the future and it also signifies that London has scarce supplies of good delivery bars. No doubt that China, being a huge buyer of physical gold is responsible for this. The whacking of gold this month is incompatible with an increasing negative GOFO rates.
7p ET Saturday, August 10, 2013
Dear Friend of GATA and Gold:
Futures market analyst Dan Norcini tells King World News that hedge funds seem to have gotten wrong-footed shorting gold last week. He thinks there is fuel for a rally. An excerpt from his 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.
http://www.zerohedge.com/news/2013-08-12/color-coded-comex-crunch-behind-jpmorgan-golden-scramble
The Color-Coded Comex Crunch: Behind The JPMorgan Golden "Musical Chairs" Scramble
First, it was JPM asking HSBC for assistance and getting a handout of over 6k ounces of gold.
The next day, following a shut out by HSBC, JPM had no choice but to go to the second largest vault, that of Scotia Mocatta and get more than triple times that, or just over 20k ounces.
Today, the Comex gold crunch has gotten so confusing, nothing short of a color-coded schematic can do it justice.
First, moments ago the Comex reported that JPM doubled down once more and received a third consecutive infusion of over 43K ounces from HSBC, just as we predicted last Thursday when we said, that "with HSBC moving 43.4K oz from Registered to Eligible, we would expect either another major Comex withdrawal in the next few days from HSBC, or this is merely HSBC making room for further gold "requests" by JPM." It was the latter to a tee.
However, what is most fascinating is that while HSBC could not say no to JPM's stern "requests", which also as predicted saw over 44K ounces of gold leave its warehouse forever in satisfaction of prior delivery demands, and in the process taking its eligible inventory to a record low of just 100k ounces, HSBC had to concurrently obtain a comparable infusion of gold from Scotia Mocatta, which for the second day in a row has become the guardian angel of the Comex handing over 20k ounces to JPM last week, and now 23k ounces to HSBC.
Finally adding to the confusion, all three major vaults proceeded to convert tens of thousands of ounces in and out of registered in a totally uncoordinated fashion, but at least this time there was no restocking of JPM eligible gold with Scotia registered.
The above chart shows what happened in terms of intravault activity alone, where the only net exit of gold from the Comex took place at JPM. Everything else was, well, a "musical chairs" scramble to actually obtain the gold.
What is really going on behind the scenes, however, nobody knows.
http://harveyorgan.blogspot.com/2013/08/august-12-gld-holdsjpmorgan-customer.html
august 12 /GLD holds/JPMorgan customer gold at only 100,000 oz/
Good evening Ladies and Gentlemen:
Gold closed up $2.20 to $1334.70 (comex closing time ). Silver was up 93 cents to at $21.33 (comex closing time).
In the access market today at 5:15 pm tonight here are the final prices:
gold: $1336.20
silver: $21.36
Gold and silver immediately rocketed higher form where it left off on Friday with silver leading the way. The bankers tried to slow down the gains but the demand for the physical metal was relentless. The bankers look to me like they are losing control of both physical metal markets.
Gold and silver immediately rocketed higher form where it left off on Friday with silver leading the way. The bankers tried to slow down the gains but the demand for the physical metal was relentless. The bankers look to me like they are losing control of both physical metal markets.
At the Comex, the open interest in silver fell by 155 contracts to 133,870 with silver up 22 cents on Friday .
The open interest on the entire gold comex contracts fell by 3164 contracts to 393,761 with gold's rise in price on Friday by $2.20 .
Tonight, the Comex registered or dealer inventory of gold rose slightly but still well below the 1 million oz mark at 852,930.107 oz or 26.53 tonnes.
The gain was due to adjustments.
This is dangerously low especially when we are now into the August delivery month. The total of all gold at the comex (dealer and customer) falls slightly again tonight and this time just below the 7 million oz barrier resting at 6.999 million oz or 217.71 tonnes.
JPMorgan's customer inventory falls tonight at 100,112.028 oz or 3.11 tonnes. It's dealer inventory rises to 361,606.12 oz (11.24 tonnes)
The total of the 3 major gold bullion dealers( Scotia , HSBC and JPMorgan) in its Comex gold dealer account slightly increased their inventory tonight to 21.93 tonnes of gold. Brinks continues to record a low of only 4.14 tonnes in its dealer account.
The GLD reported no gain in inventory tonight with a reading of 911.13 tonnes of gold. We had no change in silver inventory at the SLV.
Today, we have the 26th consecutive day for negative GOFO rates with the 3 months rate slightly falling to -.075000 from Friday's level of -.08000%. The one month GOFO rate remains relatively high in negativity at -.10833 a slight fall form Friday's-0.1150% The two month rate fell slightly in negativity to-0800 from Friday's -09667; and the 6 month GOFO rate continued in the negative column at-00167 from Friday's -.00500%. Basically it means that gold is dearer in the present than in the future and it also signifies that London has scarce supplies of good delivery bars. No doubt that China, being a huge buyer of physical gold is responsible for this. The whacking of gold this month is incompatible with an increasing negative GOFO rates.
*****
2:23 PM (2 hours ago)
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I think it was all the way back to 2004 that a picture circulated the internet of President Putin holding a 400 ounce Gold bar. It was not this particular picture but one similar to it. I can remember thinking "this picture is not circulating by chance". Just as our politicians do "photo ops" here in the States, the "chess playing" Mr. Putin took the opportunity then (and several times since then) to do a photo op either holding a Gold bar or standing in a vault surrounded by Gold. Why do you suppose that is?
We also know that China has amassed at a minimum close to 5,000 tons of Gold over just the last 10 years. They announced holdings of 1,054 tons back in 2008 or '09 and have kept production of 400 tons per year and imported at least 500 tons per year (on pace this year for 2,000 tons!) for at least 4 years. This 3,500 tons (at least) added to 1,054 tons comes out to close to 5,000 tons. They have had quite an appetite, why do you suppose that is?
We also know that China has been circling the globe "spending money" to tie up and guarantee the future supply of raw resources. They have "paid" for deals using Dollars. Their deals have been structured to pay with either future Dollars or "current" Dollars in the form of U.S. Treasury securities. They export no Gold whatsoever and have not as far as I know ever done a deal where they "pay" or settle in Gold... why do you suppose that is?
Before going into a brief explanation I will give you the answer, BECAUSE THEY KNOW!
They not only "know", they have known for a long time. Longer than most of the people reading this have even been alive. I believe going all the way back to Lenin and Marx, the Russians have known that the best way to defeat an enemy is to either debase or help debase your adversary's currency. Heck, we once upon a time even knew this as evidenced by the North counterfeiting Confederate Dollars into oblivion. And the Chinese? They invented "paper fiat" currency and have blown up more than you can count, if anyone knows what the dangers (Achilles heel) are to a paper currency...they surely do!
That said, please don't get pissed and think that I'm some "Red Communist" flag waving sympathizer because I'm not. All I am saying is that Westerners think short term and have short term memories while Easterners think long (really long) term and have memories that have passed down over hundreds of years. The Panama Canal and Hong Kong are perfect examples. We gave a 99 year lease which at the time was thought to be a "forever lease" in our eyes...but guess what? The clock ran out and China now has them both by doing what? NOTHING other than sitting on their hands. I am sure that when the deals were struck that the Chinese were looked at as some pre historic caveman idiots who didn't know what they were doing...but were they really?
Oh, and let's not forget about the Indians, they have bought Gold and Silver forever. How "barbaric" or stupid will they look when the banking system comes down? They have amassed more Gold within their borders than any other country, were they dumb or were they smart? I guess that time (not very much) will tell.
Please understand that nothing on a global scale ever happens by coincidence and that countries ALWAYS do what they believe to be in their own best interests. The West has a monetary system that served them well for a long time. It was such "a good deal" that it became abused and "money" became created out of thin air without any work. This is a great job...if you can get away with and "keep your job". The problem is that the rest of the world has (had many years ago) figured out what we were doing. Did they jump up and down screaming "that's not fair"? No, (well maybe a little grumbling) they bided their time, waited us out and bought Gold as SAVINGS...as real CAPITAL that would be there when needed and could not be debased by fashionable financial rocket scientists!
I will finish with a question. If you could "have a job" that afforded you all sorts of power and perks AND you didn't have to put out any effort at all...would you do or say anything in order to keep that job? This is why for your entire life you've been told that Gold and Silver are "scary, volatile, barbaric relics of the past and that only lunatics would buy any"...because it takes "work", real capital, machinery and labor to produce. This is also "why" foreigners from all over the globe are buying metal faster than it can be produced...because "they know and have known all along". Regards, Bill H. P.S. the Chinese, Russians, Indians and Arabs put the "bottom in" in Gold back in late June
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