http://harveyorgan.blogspot.com/
Perspective of GLD ETF year to date....
Gold closed down $14.00 to finish the comex session at $1673.90.
Total Gold in Trust Jan 3.2013
( What's up with Florida exporting 150 tons of gold to Switzerland ? Maybe someone should give India a heads up ! )
and......
http://jessescrossroadscafe.blogspot.com/2013/10/gold-daily-and-silver-weekly-charts-cap_21.html
Silver and gold chopped sideways today with silver a little higher and gold a little lower.
Action was light.
Tomorrow is the Non-Farm Payrolls report from September that was delayed because of the Beltway antics.
There is a definite divergence between paper and physical gold, but the two are still related and influence one another. The notion that they are completely unrelated now is incorrect based on the data which I see. Even with premiums, the spot price of gold and the price you will pay or sell for plain bullion is definitely related.
I am sure some traders believe that the two are completely unrelated and shorting gold against the dollar is a nice paper trade. In some ways it is compared to the other vehicles one might trade. But given the carry trade like returns, I think that they are chasing nickels on the freeway.
When and if the two do diverge significantly, we will definitely know it. They will be carrying traders out on stretchers. When the gold price turns the short squeeze might become epic. And the privileged will be able to grab the available supply first.
It was JPM to the rescue again with another big chunk of 96,450 ounces of gold bullion for the COMEX warehouse in storage. I wonder where they are obtaining such large tranches of gold. Perhaps it has something to do with the price beating and disgorgement of metal by GLD last week.
A transfer of 24,218 gold bullion ounces out of deliverable into storage occurred in the Scotia Mocatta warehouse.
As you may recall Scotiabank cause a bit of a fuss when Harvey Organ and son went there with an auditor to verify the existence of some of their personal holdings for whatever reason. I believe that this was at the end of 2010 or very early 2011. The scandal was that when they went to the vault, there was very little actual bullion there, compared to what their holdings were reported to be.
And Scotiabank has had one of the better reputations in the industry.
Well, they repaired that. But the point that Harvey often makes is that just because you hold a title or a piece of paper for something, does not mean you can obtain it readily when you need it.
Just ask the people of Germany.
Have a pleasant evening.
Perspective of GLD ETF year to date....
Gold closed down $14.00 to finish the comex session at $1673.90.
Total Gold in Trust Jan 3.2013
Tonnes1,340.28
Ounces43,091,300.2
Value US$72.340 billion
Oct 22.2013: today we lost 3.91 tonnes of gold.
Gold closed up $26.80 to $1342.50 (comex closing time ).
Oct 22.2013: today we lost 3.91 tonnes of gold.
Gold closed up $26.80 to $1342.50 (comex closing time ).
Tonnes878.32
Ounces28,238,992.63
Value US$37.632 billion
( What's up with Florida exporting 150 tons of gold to Switzerland ? Maybe someone should give India a heads up ! )
Bill Holter discusses the huge amount of gold exports out of Florida at 150 tonnes. He also remarks on the two huge deposits by jPmorgan on Friday and yesterday in the exact amount of 9 tonnes.
(courtesy Bill Holter)
Bill Holter discusses the huge amount of gold exports out of Florida at 150 tonnes. He also remarks on the two huge deposits by jPmorgan on Friday and yesterday in the exact amount of 9 tonnes.
(courtesy Bill Holter)
(courtesy Bill Holter)
I had no idea...
,,,that Florida had Gold mines. Yes, somewhere in that flat (and swampy) state they must have Gold mines ....somewhere. Maybe the Gold is lying under the Everglades or in the sand on the beautiful beaches? I just can't imagine where though because every mine that I've ever seen was located in hilly or mountainous regions where some past epithermal event must have occurred. But Florida must somehow...somewhere have a (plural) Gold mine(s).
So what the heck am I talking about? Did you know that Florida's #1 export last year was $8 billion worth of Gold? Their "Goldmine" must really be ramping up production because they exported $50 million worth in 2010, $7 billion in 2011 and now $8 billion in 2012. http://www.eflorida.com/
Apparently most of this Gold was shipped to their new trading partner, Switzerland! Yes, I know, this Gold was either "vaulted Gold" that was shipped overseas or of the "cash for Gold" type. My point is that $8 billion is a lot of Gold. This works out to something like 150 tons or more. So why would this Gold be shipped to Switzerland? I can only speculate
but maybe this Gold needed to be refined? Or because the Swiss have more demand than they can meet and they needed "product"? In any case, Gold as opposed to oranges or sugar cane as the largest export was certainly a surprise to me.
Another little "surprise" and again it relates to Gold was the fact that J P Morgan took in for delivery to their "eligible" (customer) vault 2 large deposits. They took in 192,900 ounces on Fridayand exactly 96,450 ounces today. Do you notice anything strange about these numbers? Anything? First off, Friday's deposit was "exactly" double the size of the deposit on Monday. So far, not so strange...but wait there's more! 192,900 ounces is exactly 6 tons...which makes 96,450 ounces exactly 3 tons. Quite the coincidence huh? But the word "exactly" occurs too many times here, I'll explain.
If you have ever held a physical COMEX bar in your hand then you know that they are almost NEVER "exactly" 100 ounces. They are either short a fraction or heavier by a fraction of an ounce. The odds of getting a bar that is "exactly" 100 ounces is 1 in 1,000 since these bars are weighed out to 3 decimal points. The odds of it happening 2 days in a row is 1 in 1,000 times 1,000...or 1 in 1 million! No way, didn't happen and in my mind an absolute impossibility that "exactly" 6 tons was received one day followed by a second "round number day". I would ask you this (and please don't e-mail me telling me that I'm a conspiratorial nut because the "odds" surely favor my conclusion), do you believe that J P Morgan received a whole lot of physical bars that just so happened to amount to "exactly" 6 tons followed by another round number "exactly" 3 tons...or do you believe that they received pieces of paper that added together equaled these amounts? Heck, the odds of them receiving 2 pieces of paper, one stamped "6 tons of Gold" and the other on "3" is even a better bet.
My point? Do you really believe that these deposits actually "weighed" 9 tons or could they be mailed through the post office with a .43 cent stamp? My point "exactly".
Regards, Bill H.
and......
,,,that Florida had Gold mines. Yes, somewhere in that flat (and swampy) state they must have Gold mines ....somewhere. Maybe the Gold is lying under the Everglades or in the sand on the beautiful beaches? I just can't imagine where though because every mine that I've ever seen was located in hilly or mountainous regions where some past epithermal event must have occurred. But Florida must somehow...somewhere have a (plural) Gold mine(s).
So what the heck am I talking about? Did you know that Florida's #1 export last year was $8 billion worth of Gold? Their "Goldmine" must really be ramping up production because they exported $50 million worth in 2010, $7 billion in 2011 and now $8 billion in 2012. http://www.eflorida.com/
Apparently most of this Gold was shipped to their new trading partner, Switzerland! Yes, I know, this Gold was either "vaulted Gold" that was shipped overseas or of the "cash for Gold" type. My point is that $8 billion is a lot of Gold. This works out to something like 150 tons or more. So why would this Gold be shipped to Switzerland? I can only speculate
but maybe this Gold needed to be refined? Or because the Swiss have more demand than they can meet and they needed "product"? In any case, Gold as opposed to oranges or sugar cane as the largest export was certainly a surprise to me.
Another little "surprise" and again it relates to Gold was the fact that J P Morgan took in for delivery to their "eligible" (customer) vault 2 large deposits. They took in 192,900 ounces on Fridayand exactly 96,450 ounces today. Do you notice anything strange about these numbers? Anything? First off, Friday's deposit was "exactly" double the size of the deposit on Monday. So far, not so strange...but wait there's more! 192,900 ounces is exactly 6 tons...which makes 96,450 ounces exactly 3 tons. Quite the coincidence huh? But the word "exactly" occurs too many times here, I'll explain.
If you have ever held a physical COMEX bar in your hand then you know that they are almost NEVER "exactly" 100 ounces. They are either short a fraction or heavier by a fraction of an ounce. The odds of getting a bar that is "exactly" 100 ounces is 1 in 1,000 since these bars are weighed out to 3 decimal points. The odds of it happening 2 days in a row is 1 in 1,000 times 1,000...or 1 in 1 million! No way, didn't happen and in my mind an absolute impossibility that "exactly" 6 tons was received one day followed by a second "round number day". I would ask you this (and please don't e-mail me telling me that I'm a conspiratorial nut because the "odds" surely favor my conclusion), do you believe that J P Morgan received a whole lot of physical bars that just so happened to amount to "exactly" 6 tons followed by another round number "exactly" 3 tons...or do you believe that they received pieces of paper that added together equaled these amounts? Heck, the odds of them receiving 2 pieces of paper, one stamped "6 tons of Gold" and the other on "3" is even a better bet.
My point? Do you really believe that these deposits actually "weighed" 9 tons or could they be mailed through the post office with a .43 cent stamp? My point "exactly".
Regards, Bill H.
Not much of a festival season for Indians as gold runs dry
The shortage of the metal sent Indian gold premiums to more than $100/oz over London prices this month when demand far exceeded supply.
Author: Siddesh Mayenkar (Reuters)
Posted: Tuesday , 22 Oct 2013
MUMBAI (Reuters) -
In India's biggest bullion market, Mumbai's Zaveri Bazaar, gold dealers are busy – not filling orders for customers, but busy avoiding phone calls because they don't have any gold to sell.
Battling a huge trade deficit and a weak currency, the government has taken various steps this year to make it harder and more expensive for Indians to get hold of gold, the biggest item on the country's import bill after oil.
Hardly any gold came in for two months until mid-September and industry is still feeling the pinch, especially now the festival season has started, a peak period for demand.
In the bazaar, jewelers wander around trying to get hold of a dealer who can find them gold right away, and wholesalers ask the same of banks. Retailers in half-empty showrooms try to dissuade customers from asking for immediate delivery.
"Even if someone wants 10 kg, we don't have the stock. So much so that we have stopped attending client calls," said Gautam Arora, a wholesaler, who ignored at least five phone calls during a 40-minute conversation with Reuters.
The government has set a record 10 percent import duty on gold and imposed a rule that requires 20 percent of imports to be re-exported, meaning importers need to find a buyer who will guarantee those exports before bringing in any gold.
The complexity of the rules and sagging exports -- down 60 percent this year -- have caused supplies for domestic use to dry up. Banks are required to supply three-quarters of the 20 percent meant for exports before delivering the 80 percent that will be for domestic use.
Turnover at RiddiSiddhi Bullions Ltd (RSBL), the country's largest bullion dealer with 110 employees, has dropped to 20-30 kg a day from about 300 kg since the new rules kicked in.
"This is due to the government policy. I don't know what they are thinking," RSBL Director Prithviraj Kothari told Reuters from his Zaveri Bazaar office, a gold plate on his desk showing he was crowned "Bullion King of India - 2013".
"Why do I have 110 people if I don't have any consignments of gold? If they come in at 8 they say, 'Sir, I am going home early', and I say OK."
Gold is an integral part of Indian culture, given as a dowry for marriages, which tend to be timed around auspicious days that are often religious festivals.
The shortage of the metal sent Indian gold premiums to more than $100 an ounce over London prices this month when demand far exceeded supply due to the Dussehra festival, one of several connected with harvests and invoking Lakshmi, the goddess of wealth.
The related festivals of Diwali and Dhanteras fall in the first week of November.
"New imports for domestic use could start in the next 10-15 days, which could coincide with Diwali and Dhanteras. But despite new imports, the supply situation will be very tight and premiums may even go up to $150," said Bachhraj Bamalwa, director at the All India Gems and Jewellery Trade Federation.
Premiums in other parts of Asia such as Hong Kong and Singapore were stable at less than $2 an ounce.
Wholesaler Arora, who works for NIBR Bullion, said some banks had begun accepting orders for delivery in 10 days.
But the supply shortage would persist as long as the government rules remained in force, Arora said. "Banks are giving stock only to big suppliers, so smaller jewellers are suffering due to this."
One side effect of the government measure will do nothing to improve the trade figures: in the six months from April, gold jewellery exports more than halved to $3.34 billion from $8 billion in the same period a year earlier.
Not much of a festival season for Indians as gold runs dry
The shortage of the metal sent Indian gold premiums to more than $100/oz over London prices this month when demand far exceeded supply.
The shortage of the metal sent Indian gold premiums to more than $100/oz over London prices this month when demand far exceeded supply.
Author: Siddesh Mayenkar (Reuters)
Posted: Tuesday , 22 Oct 2013
MUMBAI (Reuters) -
In India's biggest bullion market, Mumbai's Zaveri Bazaar, gold dealers are busy – not filling orders for customers, but busy avoiding phone calls because they don't have any gold to sell.
Battling a huge trade deficit and a weak currency, the government has taken various steps this year to make it harder and more expensive for Indians to get hold of gold, the biggest item on the country's import bill after oil.
Hardly any gold came in for two months until mid-September and industry is still feeling the pinch, especially now the festival season has started, a peak period for demand.
In the bazaar, jewelers wander around trying to get hold of a dealer who can find them gold right away, and wholesalers ask the same of banks. Retailers in half-empty showrooms try to dissuade customers from asking for immediate delivery.
"Even if someone wants 10 kg, we don't have the stock. So much so that we have stopped attending client calls," said Gautam Arora, a wholesaler, who ignored at least five phone calls during a 40-minute conversation with Reuters.
The government has set a record 10 percent import duty on gold and imposed a rule that requires 20 percent of imports to be re-exported, meaning importers need to find a buyer who will guarantee those exports before bringing in any gold.
The complexity of the rules and sagging exports -- down 60 percent this year -- have caused supplies for domestic use to dry up. Banks are required to supply three-quarters of the 20 percent meant for exports before delivering the 80 percent that will be for domestic use.
Turnover at RiddiSiddhi Bullions Ltd (RSBL), the country's largest bullion dealer with 110 employees, has dropped to 20-30 kg a day from about 300 kg since the new rules kicked in.
"This is due to the government policy. I don't know what they are thinking," RSBL Director Prithviraj Kothari told Reuters from his Zaveri Bazaar office, a gold plate on his desk showing he was crowned "Bullion King of India - 2013".
"Why do I have 110 people if I don't have any consignments of gold? If they come in at 8 they say, 'Sir, I am going home early', and I say OK."
Gold is an integral part of Indian culture, given as a dowry for marriages, which tend to be timed around auspicious days that are often religious festivals.
The shortage of the metal sent Indian gold premiums to more than $100 an ounce over London prices this month when demand far exceeded supply due to the Dussehra festival, one of several connected with harvests and invoking Lakshmi, the goddess of wealth.
The related festivals of Diwali and Dhanteras fall in the first week of November.
"New imports for domestic use could start in the next 10-15 days, which could coincide with Diwali and Dhanteras. But despite new imports, the supply situation will be very tight and premiums may even go up to $150," said Bachhraj Bamalwa, director at the All India Gems and Jewellery Trade Federation.
Premiums in other parts of Asia such as Hong Kong and Singapore were stable at less than $2 an ounce.
Wholesaler Arora, who works for NIBR Bullion, said some banks had begun accepting orders for delivery in 10 days.
But the supply shortage would persist as long as the government rules remained in force, Arora said. "Banks are giving stock only to big suppliers, so smaller jewellers are suffering due to this."
One side effect of the government measure will do nothing to improve the trade figures: in the six months from April, gold jewellery exports more than halved to $3.34 billion from $8 billion in the same period a year earlier.
SHOOING AWAY CUSTOMERS
India was the world's biggest gold buyer in 2012 but could lose the top spot to China this year after the clampdown.
Demand, nevertheless, is expected to stay strong, with the World Gold Council forecasting India would need up to 1,000 tonnes for the year after 864 tonnes in 2012.
Many suppliers are turning to smuggled gold, especially as that also avoids the 10 percent import duty. As a result, even smuggled gold commands a premium of $50 an ounce above London prices, according to the Bombay Bullion Association (BBA).
"I'm not getting supplies for exports, forget about for domestic use," said Mehul Choksi, chairman of jewellery retailer Gitanjali Gems, one of the largest branded jewellery retailers in the world. "Premiums are already up and they could go up even further. Some demand is being met by supplies through unofficial channels."
"As supply is very scarce, we have moved to diamond jewellery, which uses less gold content," Choksi added.
The desperate search for gold has even prompted digging under a ruined palace after a Hindu village sage dreamt that 1,000 tonnes might be buried there.
Meanwhile, those who are waiting for official gold imports are just having to turn customers away.
"We have postponed deliveries to our clients and serve only one customer each day," said Suresh Jain, a BBA director who runs a jewellery store in Zaveri Bazaar.
India was the world's biggest gold buyer in 2012 but could lose the top spot to China this year after the clampdown.
Demand, nevertheless, is expected to stay strong, with the World Gold Council forecasting India would need up to 1,000 tonnes for the year after 864 tonnes in 2012.
Many suppliers are turning to smuggled gold, especially as that also avoids the 10 percent import duty. As a result, even smuggled gold commands a premium of $50 an ounce above London prices, according to the Bombay Bullion Association (BBA).
"I'm not getting supplies for exports, forget about for domestic use," said Mehul Choksi, chairman of jewellery retailer Gitanjali Gems, one of the largest branded jewellery retailers in the world. "Premiums are already up and they could go up even further. Some demand is being met by supplies through unofficial channels."
"As supply is very scarce, we have moved to diamond jewellery, which uses less gold content," Choksi added.
The desperate search for gold has even prompted digging under a ruined palace after a Hindu village sage dreamt that 1,000 tonnes might be buried there.
Meanwhile, those who are waiting for official gold imports are just having to turn customers away.
"We have postponed deliveries to our clients and serve only one customer each day," said Suresh Jain, a BBA director who runs a jewellery store in Zaveri Bazaar.
http://jessescrossroadscafe.blogspot.com/2013/10/gold-daily-and-silver-weekly-charts-cap_21.html
21 OCTOBER 2013
Gold Daily and Silver Weekly Charts - Cap, Cap, Cap Ahead of Non-Farm Payrolls
“The term propaganda rings melodramatic and exaggerated, but a press that, whether from fear, careerism, or conviction, uncritically recites false government claims and reports them as fact, or treats elected officials with a reverence reserved for royalty, cannot be accurately described as engaged in any other function.”
Glenn Greenwald
Silver and gold chopped sideways today with silver a little higher and gold a little lower.
Action was light.
Tomorrow is the Non-Farm Payrolls report from September that was delayed because of the Beltway antics.
There is a definite divergence between paper and physical gold, but the two are still related and influence one another. The notion that they are completely unrelated now is incorrect based on the data which I see. Even with premiums, the spot price of gold and the price you will pay or sell for plain bullion is definitely related.
I am sure some traders believe that the two are completely unrelated and shorting gold against the dollar is a nice paper trade. In some ways it is compared to the other vehicles one might trade. But given the carry trade like returns, I think that they are chasing nickels on the freeway.
When and if the two do diverge significantly, we will definitely know it. They will be carrying traders out on stretchers. When the gold price turns the short squeeze might become epic. And the privileged will be able to grab the available supply first.
It was JPM to the rescue again with another big chunk of 96,450 ounces of gold bullion for the COMEX warehouse in storage. I wonder where they are obtaining such large tranches of gold. Perhaps it has something to do with the price beating and disgorgement of metal by GLD last week.
A transfer of 24,218 gold bullion ounces out of deliverable into storage occurred in the Scotia Mocatta warehouse.
As you may recall Scotiabank cause a bit of a fuss when Harvey Organ and son went there with an auditor to verify the existence of some of their personal holdings for whatever reason. I believe that this was at the end of 2010 or very early 2011. The scandal was that when they went to the vault, there was very little actual bullion there, compared to what their holdings were reported to be.
And Scotiabank has had one of the better reputations in the industry.
Well, they repaired that. But the point that Harvey often makes is that just because you hold a title or a piece of paper for something, does not mean you can obtain it readily when you need it.
Just ask the people of Germany.
Have a pleasant evening.
GATA items....
China aiming for 'de-Americanized world’ with renminbi replacing dollar
Submitted by cpowell on Mon, 2013-10-21 04:54. Section: Daily Dispatches
By Andrew Critchlow
The Telegraph, London
Sunday, October 20, 2013
The Telegraph, London
Sunday, October 20, 2013
Given the scale of China's consumption of fossil fuels and raw materials, it is only a matter of time before the renminbi replaces the dollar as the primary currency for trading commodities and resources.
China has overtaken the United States as the world's largest oil importer and goods-trading nation. Over the next five years, it will surpass the rest of the world combined in its consumption of base metals.
Given the scale of the country's consumption of fossil fuels and raw materials, it is only a matter of time before the renminbi replaces the dollar as the primary currency for trading commodities and resources such as crude oil and iron ore.
The debt ceiling farce in Washington and China's growing reluctance to continue underwriting the US economy by buying up its bonds and adding to America's near $17 trillion (L10.5 trillion) debt mountain suggests that this tectonic shift in the global trade system could be just around the corner.
Chinese state media are already calling for a "de-Americanised world." Some experts say that China is plotting to usurp the greenback's place in global commodities trade. Beijing's strategy hinges on quietly encouraging traders to bypass New York through the creation of a network of interlinked commodity markets based in the global financial hubs of Hong Kong and London.
"There can be little doubt from these actions that China is preparing herself for the demise of the dollar, at least as the world's reserve currency," writes Alastair Macleod, head of research at GoldMoney. A further signal that policymakers are beginning to warm to the renminbi playing a greater role in the global economy came last week when Chancellor George Osborne unveiled a historic deal to allow British investors direct access to China's markets and allow Chinese banks to expand operations in the UK.
The historic pact will also place the City, already the centre for global metals and foreign exchange trading, at the forefront of the race to capture more business denominated in the yuan.
In the world's major mining hubs such as Australia, resource companies are already taking advantage of new legislation that allows invoicing and trade settlement directly in renminbi, a process which completely cuts the US dollar out of the equation.
HSBC predicts that the Chinese currency will be the third-largest unit used for trade by 2015 and fully convertible within the next five years as the People’s Bank of China gradually liberalises policy.
"The flow of transactions conducted in RMB [renminbi] will only continue to grow," said Frederic Vilsboe, head of commodity and structures trade finance for Europe, Middle East and Africa at HSBC in London.
Among the Organisation of Petroleum Exporting Countries, which controls a third of the world's supply of crude, members such as Iran -- constrained by sanctions -- are already agitating for a shift away from pricing in US dollars. China's oil imports set a record last month, with official figures showing that 6.47 million barrels a day of crude flowed into the country.
The scale of China's existing and forecast demand for resources almost makes any attempt by the US to maintain the dollar's status as the world's primary trading currency for resources entirely nugatory. Wood Mackenzie estimates that China will account for 52 percent of base metals demand by 2017, compared with 46 percent of the 96-million-tonne global market this year.
The Edinburgh-based company forecasts that the world's second-largest economy, will be consuming more base metals than the rest of the world combined by 2017 as the process of urbanisation that started at the beginning of the last decade continues. Of course, there are risks, not least China's ability to sustain the rapid rates of growth achieved since the country opened its economy after joining the World Trade Organization in 2001.
Politically too Beijing faces suspicion on the world stage but, if authorities in Beijing can continue to grow the economy, it is almost inevitable that traders will soon be quoting commodity prices in yuan, not dollars.
Eric Sprott, Grant Williams, and Egon von Greyerz at King World News
Submitted by cpowell on Mon, 2013-10-21 04:40. Section: Daily Dispatches
Submitted by Tyler Durden on 10/21/2013 16:43 -0400
Submitted by Tyler Durden on 10/21/2013 15:31 -0400
11:39a ICT Monday, October 21, 2013
Dear Friend of GATA and Gold:
In an interview in two segments with King World News, Sprott Asset Management CEO Eric Sprott marvels at the dichotomy between demand for gold and silver and the decline of futures prices:
Singapore fund manager Grant Williams, also interviewed by King World News, does the same thing:
And Swiss gold fund manager Egon von Greyerz tells KWN that the world is starting to reject the U.S. dollar:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Gold Anti-Trust Action Committee Inc.
http://www.zerohedge.com/news/2013-10-21/marc-faber-blasts-we-are-bubble-there-no-exit-strategy
Marc Faber Blasts "We Are The Bubble... There Is No Exit Strategy"
"The question is not 'tapering'," Marc Faber exclaims to his hosts on CNBC's Squawk Box this morning, "the question is at what point will they increase the asset purchases to say $150 [billion] , $200 [billion], or a trillion dollars a month." QE-4-EVA is here to stay, as Faber explained "every government program that is introduced under urgency and as a temporary measure is always permanent." Simply put, "The Fed has boxed itself into a position where there is no exit strategy," and while inflation may not be present in the 'chosen' indicators, Faber blasts, there's been incredible asset inflation - "we are the bubble. We have a colossal asset bubble in the world [and] a leverage or a debt bubble." There will be massive wealth destruction, he concludes, "one day this asset inflation will lead to a deflationary collapse one way or the other. We don't know yet what will cause it."
The Fed is Boxed In....
The world is in a gigantic bubble...
Back in April 2012, Faber said the world will face "massive wealth destruction" in which "well to-do people will lose up to 50 percent of their total wealth."
In today's "Squawk" appearance, he said that could still happen but possibly from higher levels because of the "asset bubble" caused by the Fed.
Guest Post: China And Gold
- Central Banks
- China
- Exchange Traded Fund
- Guest Post
- Hong Kong
- India
- None
- Reserve Currency
- White House
Submitted by Alasdair Macleod viaGoldMoney.com,
China is now overtly pushing for the US dollar to be replaced as the world’s reserve currency.
Xinhua, China’s official press agency on Sundayran an op-ed article which kicked off as follows:
“As U.S. politicians of both political parties are still shuffling back and forth between the White House and the Capitol Hill without striking a viable deal to bring normality to the body politic they brag about, it is perhaps a good time for the befuddled world to start considering building a de-Americanized world.”
China does have a broad strategy to prepare for this event. She is encouraging the creation of an international market in her own currency through the twin centres of Hong Kong and London, side-lining New York, and she is actively promoting through the Shanghai Cooperation Organisation (SCO) non-dollar trade settlement across the whole of Asia. She has also been covertly building her gold reserves while overtly encouraging her citizens to accumulate gold as well.
There can be little doubt from these actions that China is preparing herself for the demise of the dollar, at least as the world’s reserve currency. Central to insuring herself and her citizens against this outcome is gold. China has invested heavily in domestic mine production and is now the largest producer at an estimated 440 tonnes annually, and she is also looking to buy up gold mines elsewhere. Little or none of the domestically mined gold is seen in the market, so it is a reasonable assumption the Government is quietly accumulating all her own production without it becoming publicly available.
Recorded demand for gold from China’s private sector has escalated to the point where their demand now accounts for significantly more than the rest of the world’s mine production. The Shanghai Gold Exchange is the mainland monopoly for physical delivery, and Hong Kong acts as a separate interacting hub. Between them in the first eight months of 2013 they have delivered 1,730 tonnes into private hands, or an annualised rate of 2,600 tonnes.
The world ex-China mines an estimated 2,260 tonnes, leaving a supply deficit for not only the rest of gold-hungry South-east Asia and India, but the rest of the world as well. It is this fact that gives meat to the suspicion that Western central bank monetary gold is being supplied keep the price down, because ETF sales and diminishing supplies of non-Asian scrap have been wholly insufficient to satisfy this surge in demand.
So why is the Chinese Government so keen on gold? The answer most likely involves geo-politics. And here it is worth noting that through the SCO, China and Russia with the support of most of the countries in between them are building an economic bloc with a common feature: gold. It is noticeable that while the West’s financial system has been bad-mouthing gold, all the members of the SCO, including most of its prospective members, have been accumulating it. The result is a strong vein of gold throughout Asia while the West has left itself dangerously exposed.
The West selling its stocks of gold has become the biggest strategic gamble in financial history. We are committing ourselves entirely to fiat currencies, which our central banks are now having to issue in accelerating quantities. In the process China and Russia have been handed ultimate economic power on a plate.
http://harveyorgan.blogspot.com/2013/10/oct-21dtotal-dealer-comex-gold-falls.html
Monday, October 21, 2013
Oct 21d/Total dealer comex gold falls below 22 tonnes/the big three comex vaults fall below 18 tonnes/gold and silver slightly rise
Good evening Ladies and Gentlemen:
In the access market today at 5:15 pm tonight here are the final prices:
gold: $1316.40
Gold closed up $1.30 to $1315.70 (comex closing time ). Silver was up 36 cents at $22.23.
In the access market today at 5:15 pm tonight here are the final prices:
gold: $1316.40
silver: $22.23
GOFO numbers are now mostly in the negative as gold is now extremely scarce as the boys are finding it harder to find physical. Gold is in backwardation from 1 month out to 3 months out.
Here are today's readings with Friday's comparison: GOFO rates slight increase in negativity .
i) One Month: -.048333 vs Friday: -.0400000
ii Two Months: -.03333. vs Friday: -.03167000
iii) Three Months: -.015000000 vs Friday: -.015000000
iv) Six months: +.02667000 vs Friday: +.0266700
Here are today's readings with Friday's comparison: GOFO rates slight increase in negativity .
i) One Month: -.048333 vs Friday: -.0400000
ii Two Months: -.03333. vs Friday: -.03167000
iii) Three Months: -.015000000 vs Friday: -.015000000
iv) Six months: +.02667000 vs Friday: +.0266700
Let us now head over to the comex and assess trading over there today.
Here are the details:
The total gold comex open interest fell today by 2485 contracts from 384,211 down to 381,726 as gold fell on Friday by $8.30. We are now in the active delivery month of October and here the OI rose by 2 contracts up to 236. We had 13 notices filed on Friday so in essence we gained 15 contracts or an additional 1500 oz that will stand in the October delivery month. The biggest of all delivery months is the December contract month. The December OI fell by 2023 contracts to 222,988. The estimated volume today was weak at 73,780 contracts. The confirmed volume on Friday was also weak coming in at 112,019.
The total silver Comex OI rose fell by 327 contracts as silver was down in price yesterday ( 3 cents ). The total OI now rests tonight at 114,173 contracts. We are now at extreme lows in OI with respect to silver (and gold) and I believe we can assume that both precious metal contracts are all in strong hands. The non active delivery month of October saw its OI fall by 3 contracts down to 42 contracts. We had 3 notices filed on Friday so in essence we neither gained nor lost any contracts standing. The big December contract saw its OI fall by 877 contracts down to 75,231. The estimated volume today was poor coming in at 31,991 contracts. The confirmed volume on Friday was also poor at 26,140.
***
Oct 21.2013 opening standings for October contract month
Ounces
| |
Withdrawals from Dealers Inventory in oz
|
nil
|
Withdrawals from Customer Inventory in oz
|
nil
|
Deposits to the Dealer Inventory in oz
|
nil
|
Deposits to the Customer Inventory, in oz
| 96,450.000 (JPM) exactly 3 tonnes |
No of oz served (contracts) today
|
47 (4700)
|
No of oz to be served (notices)
|
223 (22,300)
|
Total monthly oz gold served (contracts) so far this month
|
4208 (420,800)
|
Total accumulative withdrawal of gold from the Dealers inventory this month
|
17,837.242
|
Total accumulative withdrawal of gold from the Customer inventory this month
| 114,443.73 |
****
Oct 21/2013:
Opening for the October contract month
| Silver |
Ounces
|
| Withdrawals from Dealers Inventory | nil |
| Withdrawals from Customer Inventory | 27,963.521 (CNT,Delaware,) |
| Deposits to the Dealer Inventory | nil |
| Deposits to the Customer Inventory | 461,679.83 (Brinks) |
| No of oz served (contracts) | 0 (nil oz) |
| No of oz to be served (notices) | 42 ( 210,000) |
| Total monthly oz silver served (contracts) | 292 (1,460,000) |
| Total accumulative withdrawal of silver from the Dealers inventory this month | 46,710.97 |
| Total accumulative withdrawal of silver from the Customer inventory this month | 3,481,019.1 |
***
Alasdair Macleod talks about China and its hoarding of gold
(courtesy Alasdair Macleod)
Alasdair Macleod talks about China and its hoarding of gold
(courtesy Alasdair Macleod)
(courtesy Alasdair Macleod)
China and gold
China is now overtly pushing for the US dollar to be replaced as the world’s reserve currency.
Xinhua, China’s official press agency on Sunday ran an op-ed article which kicked off as follows:
“As U.S. politicians of both political parties are still shuffling back and forth between the White House and the Capitol Hill without striking a viable deal to bring normality to the body politic they brag about, it is perhaps a good time for the befuddled world to start considering building a de-Americanized world.”
China does have a broad strategy to prepare for this event. She is encouraging the creation of an international market in her own currency through the twin centres of Hong Kong and London, side-lining New York, and she is actively promoting through the Shanghai Cooperation Organisation (SCO) non-dollar trade settlement across the whole of Asia. She has also been covertly building her gold reserves while overtly encouraging her citizens to accumulate gold as well.
There can be little doubt from these actions that China is preparing herself for the demise of the dollar, at least as the world’s reserve currency. Central to insuring herself and her citizens against this outcome is gold. China has invested heavily in domestic mine production and is now the largest producer at an estimated 440 tonnes annually, and she is also looking to buy up gold mines elsewhere. Little or none of the domestically mined gold is seen in the market, so it is a reasonable assumption the Government is quietly accumulating all her own production without it becoming publicly available.
Recorded demand for gold from China’s private sector has escalated to the point where their demand now accounts for significantly more than the rest of the world’s mine production. The Shanghai Gold Exchange is the mainland monopoly for physical delivery, and Hong Kong acts as a separate interacting hub. Between them in the first eight months of 2013 they have delivered 1,730 tonnes into private hands, or an annualised rate of 2,600 tonnes.
The world ex-China mines an estimated 2,260 tonnes, leaving a supply deficit for not only the rest of gold-hungry South-east Asia and India, but the rest of the world as well. It is this fact that gives meat to the suspicion that Western central bank monetary gold is being supplied keep the price down, because ETF sales and diminishing supplies of non-Asian scrap have been wholly insufficient to satisfy this surge in demand.
So why is the Chinese Government so keen on gold? The answer most likely involves geo-politics. And here it is worth noting that through the SCO, China and Russia with the support of most of the countries in between them are building an economic bloc with a common feature: gold. It is noticeable that while the West’s financial system has been bad-mouthing gold, all the members of the SCO, including most of its prospective members, have been accumulating it. The result is a strong vein of gold throughout Asia while the West has left itself dangerously exposed.
The West selling its stocks of gold has become the biggest strategic gamble in financial history. We are committing ourselves entirely to fiat currencies, which our central banks are now having to issue in accelerating quantities. In the process China and Russia have been handed ultimate economic power on a plate.
Data from CME shows moves in and out of the gold vaults....
Xinhua, China’s official press agency on Sunday ran an op-ed article which kicked off as follows:
“As U.S. politicians of both political parties are still shuffling back and forth between the White House and the Capitol Hill without striking a viable deal to bring normality to the body politic they brag about, it is perhaps a good time for the befuddled world to start considering building a de-Americanized world.”
China does have a broad strategy to prepare for this event. She is encouraging the creation of an international market in her own currency through the twin centres of Hong Kong and London, side-lining New York, and she is actively promoting through the Shanghai Cooperation Organisation (SCO) non-dollar trade settlement across the whole of Asia. She has also been covertly building her gold reserves while overtly encouraging her citizens to accumulate gold as well.
There can be little doubt from these actions that China is preparing herself for the demise of the dollar, at least as the world’s reserve currency. Central to insuring herself and her citizens against this outcome is gold. China has invested heavily in domestic mine production and is now the largest producer at an estimated 440 tonnes annually, and she is also looking to buy up gold mines elsewhere. Little or none of the domestically mined gold is seen in the market, so it is a reasonable assumption the Government is quietly accumulating all her own production without it becoming publicly available.
Recorded demand for gold from China’s private sector has escalated to the point where their demand now accounts for significantly more than the rest of the world’s mine production. The Shanghai Gold Exchange is the mainland monopoly for physical delivery, and Hong Kong acts as a separate interacting hub. Between them in the first eight months of 2013 they have delivered 1,730 tonnes into private hands, or an annualised rate of 2,600 tonnes.
The world ex-China mines an estimated 2,260 tonnes, leaving a supply deficit for not only the rest of gold-hungry South-east Asia and India, but the rest of the world as well. It is this fact that gives meat to the suspicion that Western central bank monetary gold is being supplied keep the price down, because ETF sales and diminishing supplies of non-Asian scrap have been wholly insufficient to satisfy this surge in demand.
So why is the Chinese Government so keen on gold? The answer most likely involves geo-politics. And here it is worth noting that through the SCO, China and Russia with the support of most of the countries in between them are building an economic bloc with a common feature: gold. It is noticeable that while the West’s financial system has been bad-mouthing gold, all the members of the SCO, including most of its prospective members, have been accumulating it. The result is a strong vein of gold throughout Asia while the West has left itself dangerously exposed.
The West selling its stocks of gold has become the biggest strategic gamble in financial history. We are committing ourselves entirely to fiat currencies, which our central banks are now having to issue in accelerating quantities. In the process China and Russia have been handed ultimate economic power on a plate.
Data from CME shows moves in and out of the gold vaults....
Hey Fred,
ReplyDeleteI'm enjoying the Matrix references, a great movie and thought provoking representation of reality.
Obamacare sounds like a big screw over of the American public, no doubt purposely. 2014 should be interesting.
Hi Kev,Fred
ReplyDeleteI was re-listening to 'clouded titles' interviews yesterday and they were talking about how they're tied in with multiple MBS/CDO/CDS and it's all like a matrix within a matrix within a matrix... good grief. Hard to tell what's what anymore.
And now Obamacare ? errk.
NW
Evening Kev - The original Matrix remains one of my favorite Movies - lots of truths in that flick and it becomes more relevant as the years go by !
ReplyDeleteObamacare ( focusing on HealthGov.Com aspect ) is so bad I'm beginning to believe it was made to malfunction on purpose . I was against it ( Obamacare ) before it was passed and so far , I haven't been disappointed .
As far as 2014 , I'm beginning to wonder whether we see anything materially different from what we have seen in 2013 . For lack of a better term , we may be entering a " frozen state " type of condition. What does that mean ? Well , I was reflecting on Europe the other day - Greece is still a clusterfuck , unemployment continues to go higher steadily , political situation is shaky - yet the Greek bond market has been in another world and prices improve ? Look at Spain and Italy - bond prices have not reflected any economic issues or instability for many months - has employment improved in Spain ? Are the Banks improved in Spain or Italy - of course not ..... but bond prices have steadily improved for months ? ? Really ? So , what has improved for Europe other than Central Bank ( ECB meddling / Quasi - QE in the form of two long term cash injections into the Banks with hopes of a third one ) ? Everything was smoothed out well before the German Elections ( when was the last crisis summit for Europe ? ) Europe is smoothed out , financial troubles remain frozen , fundamentals frozen out completely as the Central Bank is all that matters.
Why would the US be different - isn't it setting up the same way in advance of the 2014 Congressional elections ? Sure we have the current kick the can drama - now scheduled for replay in Jan and Feb ( shutdown related issues and debt ceiling respectively . ) All that will happen is the next kick the can past those pesky Elections next Fall. Meanwhile , the Fed will continue to pump 85 billion per month , every month.... probably for all of 2014 ! Smoothed out markets - stocks will continue to be driven up , bonds will remain frozen in a range......
2014 becomes " interesting " if we see China say " No Mas " !
NW - for Matrix within the Matrix ... check the President desperation post......Fake fainters and mind control items to ponder !
ReplyDelete