http://www.caseyresearch.com/gsd/edition/jim-rickards-after-currency-wars-comes-the-death-of-money
http://www.goldmoney.com/research/research-archive/finlands-gold?gmrefcode=gata
http://www.zerohedge.com/news/2013-11-02/chinas-gold-hoarding-continues-over-2200-tons-imported-two-years
Paper gold in the developed world may trade based on the whims of marginal momentum chasers, and of course, the daytrading mood of the BIS gold and FX trading desk, but when it comes to physical gold and China's appetite for it, one word explains it best: unstoppable.
http://www.silverdoctors.com/jim-willie-the-game-is-over-king-dollar-is-dead/#more-34155
http://harveyorgan.blogspot.com/2013/11/a-huge-adjustment-at-comex-causes-total.html
¤ YESTERDAY IN GOLD & SILVER
The gold price didn't do much in Far East trading on their Friday, and was actually up three or four bucks about half an hour before the London open. Then the high-frequency traders showed up, and that was it until the London p.m. gold fix. The low of the day came at that point, but the subsequent rally got sold down beginning at 12:45 p.m. EDT. After that, the gold price chopped sideways on very light volume into the 5:15 p.m. electronic close in New York.
The CME recorded the high and low as $1,327.30 and $1,305.60 in the December contract.
Gold finished the Friday session at $1,315.80 spot, which was down $6.90 from Thursday's close. Net volume was pretty light at 126,000 contracts.
The silver price traded in a 25 cent range for most of Friday. It got sold down a bit starting at the London open, and then rallied off it's 9:30 a.m. GMT low, right up to its New York high at 9:15 a.m. EDT. After that, silver didn't do much of anything for the rest of the day.
The CME reported silver's high and low as $21.995 and $21.705 in the December contract.
Silver finished the day at $21.865 spot, down 4 cents from Thursday's close. Net volume was around 33,000 contracts.
Both platinum and palladium got sold off a bit during the Friday session, but both recovered into the close and finished in positive territory. Here are the charts.
The dollar index closed on Thursday in New York at 80.24, and the proceeded to trade more or less sideways until just before the 8 a.m. GMT London open. The bulk of the subsequent rally was in by the London p.m. gold fix, and the index traded sideways from there into the close, finishing the Friday trading session up another 48 basis points to 80.72.
****
The CME's Daily Delivery Report showed that zero gold and 3 silver contracts were posted for delivery on Tuesday within the Comex-approved depositories.
There was another withdrawal from GLD yesterday, this time an authorized participant took out 183,362 troy ounces. And as of 9:59 p.m. EDT Friday evening, there were no reported changes in SLV.
The U.S. Mint had a smallish sales report for the first day of November. They reported selling 3,000 ounces of gold eagles, and that was it. For the month of October, the mint reported selling 48,500 troy ounces of gold eagles; 18,000 one-ounce 24K gold buffaloes; and 3,087,000 silver eagles. Based on these sales figures, the silver/gold ratio for the month worked out to 46 to 1. I have a very comprehensive story about October U.S. Mint bullion sales in the Critical Readssection further down.
For the fourth day in a row there was no reported in/out movement in gold at the Comex-approved depositories on Thursday.
Once again it was another big day for silver, as these same depositories reported receiving 1,116,963 troy ounces, and shipped out 603,063 troy ounces. All the activity was at JPMorgan Chase and Canada's Bank of Nova Scotia. The link to that activity is here.
Well, the CFTC had a new Commitment of Traders Report [for positions held at the close of trading on October 22] loaded up on their Web site at 3:30 p.m. yesterday afternoon when I checked the site, and the changes I said would occur, were exactly as I predicted in both gold and silver. And as Ted Butler said on the phone yesterday, when you can predict with certainty what the report will say in advance, it's just more proof that the markets are managed by just a few traders.
Here's what I said in The Wrap yesterday: "If you check the 30-day gold and silver charts posted just above the Critical Reads section above, you will note that both metals rallied [nearly] every day in the October 16-22 reporting period that today's possible COT Report will cover. It's a given it will show that the tech funds and small traders dumped their just-acquired short positions and maybe put some long contracts on as well. On the other side of the equation, its a certainty that JPMorgan et al were doing the exact opposite, and getting set up for the next engineered price decline, which may have started at 2 p.m. on Wednesday with the FOMC news. Aren't rigged markets just grand?"
In silver, this COT Report showed that the rally during the reporting week was driven by technical funds going long, and covering short positions. In the process they added 3,323 long contracts and reduced their short position by 2,289 contracts. In total, that's a swing of 5,612 contracts. Of course, in lock-step against them the Commercial traders [JPMorgan et al] increased their net short position by the same 5,612 contracts, which is 28.1 million ounces. They did this by selling 1,856 of their own long contracts and by buying 3,756 short contracts that were being offered for sale by the technical funds and small traders.
Ted says that JPMorgan's short position in silver [up to October 22] has now blown out to about 18,000 contracts, and they hold just under 18% of the short position in silver on the Comex futures market on a net basis.
What would the closing price of silver have been if JPMorgan et al hadn't stepped in as short sellers of last resort? There's no law that says they have to trade exactly opposite the other two categories, but they do it in order to cap the price. If they just stood idly by with their hands in their pockets instead, the technical funds and small traders would have to bid up the price to find a free-market short seller, or someone to sell them a long position. If that ever happened, the silver price would be some rather large 3-digit number within a few hours. We would experience a market-clearing event that would make your eyes water.
And that's precisely what JPMorgan et al are in the futures market for; to subvert the free-market pricing mechanism. Because if they weren't there, the new prices of all four precious metals [plus every other commodity on Planet Earth] would be over the moon in just a few days, if that.
Some would say that JPMorgan et al provide "much needed liquidity" to the precious metal markets. That's the biggest pile of b.s. imaginable. They have inserted themselves in the chain of events to control the price, nothing more. They do that, plus make a profit on the side by skinning these brain-dead technical funds as "prices" rise and fall. What a scam!
But, I digress.
The rally in gold during the October 16-22 reporting week showed that the technical funds and small traders bought 8,678 long contracts and sold 8,646 short contracts. This combination of buying and selling by the brain-dead technical funds [for the most part] is what cause the rally during the reporting week.
But standing in the Commercial category right beside them, JPMorgan et al happily sold them the longs they wanted and bought all the short contracts offered for sale. By inserting themselves as "sellers of last resort" they control the price that the technical funds buy and sell at, and thus the "free market" price in the process.
As I said about silver, the mind boggles at what the real "free market" price of gold would be if JPMorgan et al weren't providing "badly needed liquidity."
Ted said that, based on his calculation, JPMorgan Chase is long about 72,000 Comex contracts, or 7.2 million ounces as of the cut-off for the October 22 COT Report. All 10,000 contracts that they bought from the technical funds and small traders during the prior week's engineered price decline, were sold back to them at a profit during this last reporting week as prices "rallied." Ted figures they made a cool $50 million on that trade, and that JPM is net long about 22% of the entire Comex futures market in gold.
Here's Nick Laird's "Days of World Production to Cover Short Positions" for all physical commodities traded on the Comex updated with the COT data as of October 22.
Of the green and red bars for silver, JPMorgan's share of the short position is 43 days of world production. It's my opinion that about 90% of the rest of those bars are made up of HSBC USA, Citigroup and Canada's Scotiabank, and the same amount, if not more, can be said about the platinum and palladium short positions.
***
Selected news and views....
JPMorgan Discloses Eight DOJ Probes From Asia to Madoff
The largest U.S. bank disclosed for the first time in a filing yesterday that the Justice Department is examining its energy-trading practices, which were subject to a $410 million civil settlement with the Federal Energy Regulatory Commission in July. Investigations are also focusing on mortgage-bond sales, interest-rate rigging, the credit-derivatives market, and the bank’s trading loss last year, according to the filing.
U.S. Attorney General Eric Holder has said that it’s a priority for his department and for President Barack Obama to hold banks accountable. Chief Executive Officer Jamie Dimon visited Holder in September to try to negotiate a settlement of mortgage-related cases against the bank.
“The scope and breadth of risky practices at JPMorgan are mind-boggling,” said Mark Williams, a former Federal Reserve bank examiner who teaches risk management at Boston University. “Some of these probes are criminal, they’re not even just civil anymore, and I think it’s very telling about the broad risk-taking culture that was allowed under.
What else is new when it comes to JPMorgan? This Bloombergstory was posted on their website on Friday, and I thank Manitoba reader Ulrike Marx for her first offering in today's column.
Doug Noland: The May/June Dynamic
The conventional view holds that massive QE has not caused inflation because the Fed’s monetary fuel has remained unused as “reserves” on bank balance sheets. From this viewpoint, inflation risks lurk somewhere out in the future: when the banks eventually lend these “reserves” and the monetary fuel finally makes its way into the real economy. Moreover, the optimistic view holds that the Fed has the tools to adeptly manage any future inflation issue.
I take a much different view. QE is anything but benign. The Fed’s monetary fuel certainly doesn’t just sit inertly on bank balance sheets. Indeed, this monetary inflation is immediately unleashed upon the financial markets, with the newly created “money” setting off a chain-reaction of transactions, flows and market impacts. Over time, this dynamic foments huge distortions in marketplace liquidity, risk perceptions, speculative financial flows, asset prices and market stability. And, somehow, when Fed officials discuss QE they avoid any mention of what have become conspicuous inflationary effects on securities prices.
Fundamentally, the repeated injection of Fed liquidity over time – and especially at key junctures - into the financial markets has created Bubbles increasingly vulnerable to even subtle changes in market perceptions and/or changes to the risk-taking and speculative leveraging backdrop. This is the essence of the so-called “addiction” induced by the Fed’s historic monetary inflation.
I continue to believe that the May/June period marked an important inflection point in global Credit and asset market Bubbles. Latent market fragilities – including QE dependencies – turned widely evident, forcing both the Fed and Chinese to back-peddle from their planned somewhat less accommodative policy stance. And, in both cases, respective Bubbles bounced right back more powerful than ever. Still, I believe the spring period marks the initial bursting of a historic Bubble throughout the “emerging markets” (EM) – at the “periphery” of the “global government finance Bubble”. And while speculative flows have returned to EM in recent weeks, I believe this has only temporarily masked what will remain ongoing financial and economic fragilities.
I take a much different view. QE is anything but benign. The Fed’s monetary fuel certainly doesn’t just sit inertly on bank balance sheets. Indeed, this monetary inflation is immediately unleashed upon the financial markets, with the newly created “money” setting off a chain-reaction of transactions, flows and market impacts. Over time, this dynamic foments huge distortions in marketplace liquidity, risk perceptions, speculative financial flows, asset prices and market stability. And, somehow, when Fed officials discuss QE they avoid any mention of what have become conspicuous inflationary effects on securities prices.
Fundamentally, the repeated injection of Fed liquidity over time – and especially at key junctures - into the financial markets has created Bubbles increasingly vulnerable to even subtle changes in market perceptions and/or changes to the risk-taking and speculative leveraging backdrop. This is the essence of the so-called “addiction” induced by the Fed’s historic monetary inflation.
I continue to believe that the May/June period marked an important inflection point in global Credit and asset market Bubbles. Latent market fragilities – including QE dependencies – turned widely evident, forcing both the Fed and Chinese to back-peddle from their planned somewhat less accommodative policy stance. And, in both cases, respective Bubbles bounced right back more powerful than ever. Still, I believe the spring period marks the initial bursting of a historic Bubble throughout the “emerging markets” (EM) – at the “periphery” of the “global government finance Bubble”. And while speculative flows have returned to EM in recent weeks, I believe this has only temporarily masked what will remain ongoing financial and economic fragilities.
Doug's Credit Bubble Bulletin is must read this week...and was posted on the prudentbear.com Internet site yesterday evening...and I thank reader U.D. for sending it along.
As stimulus tab rises for Fed, worries grow it may require a bailout
The Federal Reserve has taken unprecedented steps to stimulate the economic recovery from the Great Recession, but the tab has risen to such tremendous proportions — fast approaching $4 trillion — that some worry the central bank ultimately could require its own taxpayer rescue.
The Fed's total assets on its balance sheet have more than quadrupled to $3.8 trillion since 2008 amid a massive bond-buying effort. And there are few signs that the growth will stop any time soon.
That could put the finances of the world's most powerful central bank at risk if historically low interest rates were to rise sharply — something top Fed officials said they do not expect but that critics warn is very possible.
"It's really pretty cut-and-dried as far as the arithmetic goes: If you buy bonds and interest rates go up, you're going to take a capital loss on those bonds," said James D. Hamilton, an economics professor at UC San Diego. "The more they buy, the bigger their balance sheet, the bigger the loss they're going to face."
Yes, dear reader, Mr. Hamilton has it exactly right. This article was posted on the L.A. Times website very early Tuesday morning...and it's worth reading. I thank West Virginia reader Elliot Simon for his first offering in today's column.
Obama halted NSA spying on IMF and World Bank headquarters
President Barack Obama has ordered the National Security Agency to stop eavesdropping on the headquarters of the International Monetary Fund and World Bank as part of a review of intelligence gathering activities, according to a U.S. official familiar with the matter.
The order is the latest move by the White House to demonstrate that it is willing to curb at least some surveillance in the wake of leaks by former NSA contractor Edward Snowden of programs that collect huge quantities of data on U.S. allies and adversaries, and American citizens.
The NSA's surveillance of the Washington-based IMF and World Bank has not previously been disclosed. Details of such spy programs are usually highly classified.
This Reuters piece appeared on their website early on Thursday evening EDT...and I thank Elliot Simon for sharing it with us.
Barclays Said to Suspend Chief FX Dealer Ashton Amid Probe
Barclays Plc has suspended three currency traders, including a chief dealer in London, amid a probe into potential foreign-exchange manipulation, according to a person with knowledge of the decision.
Chris Ashton, who was identified as global head of voice spot trading in a Barclays e-mail last month, and spot currency traders Jack Murray and Mark Clark were suspended, said the person, who asked not to be identified because they aren’t authorized to speak publicly about the matter. None of the three has been accused of any wrongdoing, said the person.
Ashton didn’t respond to messages left on his work or mobile telephones, and didn’t reply to an e-mail seeking comment. Murray and Clark didn’t return messages left on their work telephones or reply to e-mails. Barclays, one of the four biggest currency traders in the world, is reviewing trading over several years and is cooperating with regulators’ requests for information, according to a statement.
This news item, filed from London, was posted on the Bloombergwebsite yesterday morning Denver time...and I found it embedded in a GATA release.
RBS avoids break-up with 38 billion pounds 'internal bad bank'
Royal Bank of Scotland is to create an internal "bad bank" to fence off its riskiest assets, part of a raft of measures designed to heal its relationship with the British government and speed up its eventual privatization.
Britain is keen to offload its stakes in RBS and state-backed rival Lloyds Banking Group as soon as possible, having pumped a combined 66 billion pounds ($106 billion) into the banks to keep them afloat in the 2008 financial crisis.
"I think it does make it easier to sell off the bank and get our money back," Finance Minister George Osborne told BBC radio on Friday, adding that a sell-off was unlikely to begin before the next election in 2015.
This Reuters story was posted on their Internet site early Friday morning EDT...and it's the second offering of the day from Elliot Simon.
Japan's biggest banks face gangster investigation
Japan's financial watchdog said Tuesday it would probe the country's top three banks in the wake of a loans-to-mobsters scandal that has raised questions about corporate links with organised crime.
The Financial Services Agency (FSA) will look at Mizuho's business dealings as well as rivals Mitsubishi UFJ and Sumitomo Mitsui Banking Corp., an agency spokesman said, without disclosing further details.
Mizuho has been under fire since it emerged last month that it processed hundreds of loans worth about $2 million for the country's notorious yakuza crime syndicates, which are involved in activities ranging from prostitution and drugs to extortion and white-collar crime.
This news item was posted on the france24.com Internet site on Tuesday...and it's the final contribution of the day from Roy Stephens.
Jim Rickards: After “Currency Wars” Comes “The Death of Money”
In Currency Wars, Rickards concluded that a dangerous global financial crisis was not only in the making, but that it was inevitable. Based on that financial war game inside a top-secret facility at the APL’s Warfare Analysis Laboratory, a historical analysis of international monetary policy in the twentieth century, as well as his assessment of the events leading to and adopted after the financial debacle of 2008, Rickards laid out the endgame that would result from the global financial chaos of the first currency war of this century; the collapse of the U.S. dollar and the eventual replacement of fiat money with a return to the gold standard.
“The world is getting closer to that end game every day,” warns Rickards, who just finished writing the sequel toCurrency Wars, titled The Death of Money, The Coming Collapse of the International Monetary System.
Due out in bookstores next April 2014, The Death of Moneypicks up on the disturbing predictions outlined in Currency Wars and carries the analysis further into how the international monetary system might collapse and what new system will replace it.
This very excellent article was posted on thetrumanfactor.com Internet site on Thursday...and certainly falls into the must read category. I thank reader Harold Jacobsen for digging it up on our behalf.
Three King World News Blogs
1. Keith Barron: "Staggering Q.E. in the West...and the Ultimate Collapse". 2. William Kaye: "People's Worst Nightmares Coming - Have a Survival Strategy". 3. Andrew Maguire: "Big Banks in Trouble as Major LBMA Default Nears".
Gold Eagle Bullion Sales Recover, Silver Eagles Approach Record
After two months of weakness, the American Gold Eagle bullion coins achieved stronger sales during the month of October. Silver Eagle bullion sales exceeded three million coins for the month, with the all time annual sales total quickly approaching.
For the month of October 2013, Gold Eagle bullion sales reached 48,500 troy ounces across all options. The most popular seller by both units and total weight was the one ounce size at 41,000 pieces. The latest monthly sales total breaks the streak of two uncharacteristically weak months. In August, sales were 11,500 ounces, followed by sales of 13,000 ounces in September. The total for August had marked a six year low for monthly sales.
This short but fact-filled commentary was posted on thecoinupdate.com Internet site yesterday...and is certainly worth skimming. The only statistic that this commentary doesn't mention is the fact that the U.S. Mint will use between 15 and 20 percent more silver than the U.S. will mine in all of 2013. It's another contribution from Elliot Simon.
Mexico mining tax approved, but hits political roadblock
Mexico's senate approved by 73 votes to 50 the broad outline of a package of tax reforms, which included a debated 7.5% charge on resource companies, and as much as 8% for gold, silver and platinum.
The lawmakers, however, decided to set aside scores of divisive sections to be processed later.
Members of the National Action Party, the main opposition party, expressed their discontent with the decision by abandoning the session as the Senate began to work through the reservations.
Despite the senate tensions, the tax package was expected to be finalized later Wednesday or at some point today. Following senate approval the reforms only need to be enacted by President Enrique Peรฑa Nieto to become a law.
This short story was posted on the mining.com Internet site on Thursday and is certainly worth the read. I thank Ted Butler for pointing it out.
Alasdair Macleod: Finland admits leasing its gold, and maybe it's in Asia now
GoldMoney research director Alasdair Macleod reports today that Finland's central bank has admitted leasing much of its gold, most likely through the Bank of England. Finland's admission, Macleod writes, adds to the evidence that much of the gold heading to Asia has been coming from Western central banks, suppressing the metal's price.
Macleod's commentary is headlined "Finland's Gold" and it was posted on GoldMoney's Internet site on Friday.
India forced to take its eyes off gold
"You can bet that with the current state of the economy, Indians will be buying less gold and looking for alternative gifting options this Diwali season," says Arvind Panagariya, professor of economics at Columbia University and India observer.
So if Indians aren't buying gold, what are they buying?
According to the local merchants in New Delhi and Mumbai—silver. It might not carry the same prestige and status, but it is cheaper and thus a good alternative. Silver shares trade at $22 an ounce, while gold shares are trading north of $1,300.
This short story was posted on the CNBC website yesterday afternoon just after the markets closed in New York...and it's the final offering of the day from Elliot Simon.
Lawrence Williams: China imports another 109 tonnes of gold in September
There has been a fair amount of speculation in the press that Chinese gold demand may be slowing from its record levels recorded so far this year. Well we can report that the speculation is correct – marginally! Reading he latest Bloomberg headline relating to the newly released September figures out of Hong Kong “China Gold Imports From Hong Kong Fall on Premium, Slow Demand” one could be forgiven for thinking that the tide has indeed turned, yet, in reality, the September total for net gold imports from Hong Kong into mainland China at 109.4 tonnes remains the fifth highest month’s imports on record and although a full 0.8 tonnes below the previous month’s figure this hardly shows any kind of appreciable slowdown so far.
Indeed Chinese imports by this route over the first nine months of the year are more than double those of last year.
This must read commentary by Lawrie was posted on themineweb.com Internet site yesterday.
And additional items ( from Editor )
Finland’s Gold
- By Alasdair MacLeod
- Posted 01 November 2013
On Wednesday Finland gave in to public pressure and revealed where she stores her gold reserves. The statement followed a press release by the Bank of Sweden on similar lines released on Monday.
The totals (in tonnes) for these two Scandinavian countries are as follows:
| Location | Sweden | Finland |
| Bank of England | 61.4 | 25.0 |
| Swedish Riksbank | 15.1 | 9.8 |
| New York Fed | 13.2 | 8.8 |
| Swiss National Bank | 2.8 | 3.4 |
| Bank of Finland | - | 2.0 |
| Bank of Canada | 33.2 | - |
| Total | 125.7 | 49.0 |
So far, so good. But then the Head of Communications for the Bank of Finland added some more information in Finnish in a blog run on the Bank's website. It is not available in English, so I asked her for a translation, but I am still waiting.
Instead, a Finnish reader of my own blog and a Finnish journalist who has been following this topic have independently given me an English translation of a highly relevant and interesting paragraph, three from the end. This is the journalist's:
"Maximum half of the gold has been within investment activity over the years. Gold has been invested among other things in deposits similar to money market deposits and using gold interest rate swaps. Gold investment activity is common for central banks. The risks associated with gold investments are controlled using limits, investment diversification and limitations concerning duration."
And my reader's translation:
"Throughout these years no more than half of the gold has been invested. Gold has been invested in for example deposits similar to money market deposits and gold interest rate swap agreements. Gold investment activities are common for central banks. Risks related to gold investments are controlled with limits, decentralising investments and limits regarding run times."
Half Finland's gold is stored at the Bank of England, and "no more than half" is "invested". If any "investment" is to take place it would be in London. It is not immediately clear what is meant by invested, but presumably this is a result of translation of what has happened from English into Finnish plus explanation for a non-specialist readership. However if it has been invested, then by definition it is no longer in the possession of the Bank of Finland, and will most probably have been sold into the market in return for a promise to redeliver at a later date. This follows the Austrian National Bank's admission to a parliamentary committee a year ago that it had earned EUR300m by leasing its gold through London.
The evidence is mounting that Western central banks through the Bank of England have been feeding monetary gold into the market through leasing operations. Indeed, the Finnish blog says as much: "Gold investment activities are common for central banks".
This explains in part how the voracious appetite for gold by China, India and South-East Asia is being satisfied, without the gold price rising to reflect this demand. It is also consistent with my disclosure earlier this year of the discrepancy of up to 1,300 tonnes between the gold in custody as recorded in the Bank of England's Annual Report, dated 28th February 2013 and the amount recorded on the virtual tour on the Bank's website the following June.
China's Gold Hoarding Continues: Over 2,200 Tons Imported In Two Years
Submitted by Tyler Durden on 11/02/2013 - 13:05Paper gold in the developed world may trade based on the whims of marginal momentum chasers, and of course, the daytrading mood of the BIS gold and FX trading desk, but when it comes to physical gold and China's appetite for it, one word explains it best: unstoppable.
Many analyst writers choose the Black Swan analogy to describe deeply ominous events in progress, with little forward notice. The analogy simply does not fit anymore, as an armada of black swans is more appropriate, spotted on regular and frequent sightings. The Jackass preference is to describe a series of major cracks in the financial fortress that defends the USDollar system and its decrepit USTreasury Bond shuttle buggy. The vehicle is overloaded with supply and bereft of investors, upheld by a printing press, explained by pure heresy. Its derivative coil on the undercarriage axel system is broken from the overdone leverage and hidden machinations. The integrity of the USD/USTB brand name was cast off the American coat of arms along with the Lehman Brothers killing to save Goldman Sachs, the adoption of Fannie Mae to conceal the fraud, and the AIG to contain the derivative payouts. The October Hat Trick Letter explains the Wall Street saga behind the scenes on the GSax rescue, managed by the USDept Treasury office. The US financial fortress died in September 2008, when the Jackass made the USGovt debt default forecast. What has happened in the following long five years has been an incredibly prolonged and desperate attempt, its creativity recognized, to extend life support to a corpse beset by necrosis and sclerosis, whose blood has turned toxic, lacking any oxygen (capital). The US nation has lost its way, no longer capable of comprehending capitalism. Its policy initiatives actively destroy precious capital on the banker altar, celebrating the dark side with celebrations of fire. The emaciated body economic is being prepared to be handled by the JPMorgue for processing.
Poorly informed foreign observers have a very difficult time coming to grips with the death of the King Dollar. It is pushed by far worse than a Zombie Mule Team. Its USD/USTB team is a marauding killer of banking systems, destroyer of capital, and wrecking ball of economies. The legitimacy of the global reserve currency is not found in a proper seal or exotic filament or ornate watermarks. It is found in a valid foundation in gold reserve, a sound economy on firm foundation, and a management team upholding integrity. The USDollar and USTreasury Bond has none of the above. It is the abused currency with bond vehicle exploited by a criminal banking organization whose roots are the same as the nazis. Credit goes to their ilk for better concealment of their identity and family bloodline. Their signature is stolen gold, bond fraud, war and genocide, with a penchant for control as a chaser.
Some readers might believe that my public warnings are exaggerated, as a national condition is described with hyperbole. Not so, Cabo!! The American citizens have seen their home equity largely depleted, long regarded as their inflation hedge. Now they have none. The same citizens have seen their pension plans largely depleted, long depended upon for future retirement income. The same citizens have seen their Social Security Trust Fund ransacked, long depended upon for basic future financial support. The same citizens have been treated like criminals for association with Occupy Wall Street, the billyclub wielded by the FBI. The same citizens have been subjected to a long list of Executive Decrees, which gut their civil liberties and bill of rights, long regarded as the bastion of freedoms. The same citizens have been victimized by banker fraud, protected by the Too Big To Fail mantra. The same citizens have been exploited by the military industrial complex in predatory wars and narcotics vertically integrated business, their bodies mere cannon fodder, their coffins filled with heroin, the suicide rate extreme among soldiers due to stress and rape. The same citizens were recently exposed to false flag events in Syria, where the chemical weapon perpetrator is a US ally with home on the Persian Gulf. The same citizens are now exposed to chemtrail toxic atmospheric lacing and Pacific radiation, thus the air and water gradually unfit for habitation and nourishment. So conclude the exaggerations are perhaps on target. Beware the Warsaw Factor mixed with the Stockholm Syndrome, which will not be explained. Do the research. The safety valves are gold & silver ownership and a ticket off the USS Titanic. The golden lifeboats are in short supply. Actually they have been in short supply for two years, their shortage more acute with each passing month.
DEAD USDOLLAR & USTREASURY BRANDThe USD/USTB brand is dead. The big questions that remain are 1) how the brand will be declared dead, 2) what new currencies will appear with proper asset backing, 3) what form the Gold Standard will return, and 4) whether its criminal helm will face prosecution for fraud, counterfeit, sweetheart loans, and money laundering. The answers are slowing being revealed. But before making conclusions on these key overarching questions, consider the cracks in the financial fortress. Each alone is devastating, but together they describe a wrecked castle that is fast crumbling, the fallout victims to be legions. The world has not only begun to notice, but rather made plans to defend from the fallout. The National Socialist bankers will not go quietly into the night. They will steal everything in their path with full impunity. They will continue to wreck the planetary integrity. They will continue to construct their underground cities. They will continue to wage wars both for supply line preservation and for obstruction of progress toward alternative pathways. The blowback has been impressive and far reaching. The prestige of the US nation is gone. The reputation of the King Dollar is gone. The beacon of capitalism is gone. What remains is the details of the collapse, the fallout from the impact, the extent of the resulting craters. As the USD/USTB brand fades away, the Third World awaits the once great nation. The price inflation, supply shortages, and civil disorder will echo the financial criminality, the vacated wealth, and the aggressive war stance, as severe hardship and massive disruption is guaranteed.
US LEADERSHIP VANISHED
Many are the big ugly wild cards. Note the Afghan heroin industry and distribution across the NATO bases, the clearinghouse functions managed by JPMorguen via the Iraqi Export Bank in Baghdad. Note the pilfered US Gold reserves from Fort Knox by the Clinton-Rubin Admin, both revered men. Note the staged events on 910+1, complete with hidden coup d’etat. Note the Snowden files to reveal criminal deeds at the US Helm, the man labeled a traitor. The defensive tactics have turned more desperate and often border on the edge of amusing. In 2002, certain officers who attempted to reveal the sequence of events and the culpable parties from the big event the previous year were smeared with child pornography accusations. Memories fade. Few recall the Anthrax threat to the Congressional ventilation systems just before the Patriot Act passage, the threat as courtesy by the FBI. In general, the opponents to the fascist core axis are declared terrorists. The accusers are nazis deeply engaged in financial terror, war crimes, bond fraud on $trillion scale, central bank gold thefts, bond counterfeit, theft of large funds, murder to defend the fortress, with a cake that bears treason as icing.
The last three US Presidents have refused to submit to the USCongress their medical records, as required by law. The details of their narcotics addiction would not sit well with the American public or even naive Congressional members. Authority might not be followed. The world is watching. The world has identified the problem. The world has fingered the USDollar as the toxic paper, the USTBond as the acid element in their banking systems, and the US Bankers as the criminals in the room. The nations of the world have made grand strides in rallying behind China & Russia. The former has made a direct challenge to the US in global financial leadership. The latter has been making direct challenge to the US in global military leadership. The swing vote lies with the Saudis, who always hide behind daddy’s cape, whatever nation will provide them cover for their multi-$billion thefts of national resources with pacification via bond recycling.
PETRO-DOLLAR FINAL DEATH THROES
The Saudis find themselves alienated from their US protector. They find themselves at friction-filled odds with Russia. They will find some measure of safe haven behind the Chinese cape. The Saudis are busily making their pivot to China. Note the large petro-chemical project begun last year near the Red Sea. The entire Arab Spring movement is a direct assault upon the Arab world, whose nations one after the other are run by autocrats better described as benevolent dictators. The USGovt strategy to spread democracy is intended to disrupt the royals sitting upon peacock thrones, as much as to dislodge valuable resources. In North Africa the objective was to derail the planned European development with new industries, equipped with roll-off port facilities, run by cheaper skilled Arab labor. In the rest of the Arab MidEast, the objective has been to let loose a band of Keystone Cops that unseat the House of Saud itself in a most bizarre sequence of events. The overthrow of Mosni in Egypt required a huge financial assist by the Saudis, hardly a team effort with the Obama Admin clown show. The retreat from Syria has angered the Saudi Royal family in unspeakable terms. They have responded by threatening the shutdown of US Embassies in Saudi Arabia. Hidden in the many conflicts are the Pipeline Politics, which the USGovt cannot afford to reveal. Doing so would make crystal clear its ulterior motives, its weakened position, and the rise of the Natural Gas Coop led by the Russian Gazprom giant. Revealing the fading power of OPEC as the Saudi weapon to enforce the King Dollar scepter would accelerate the Dollar Alternative movement led by the Eastern Alliance. The Syrian War was all about blocking the completion of the Shiite Gas Pipeline from Iran. The US could not stop the Iran-Pakistani Gas Pipeline. The weakness of the USDollar will be made evident by the strangle of natural gas pipelines, mostly run by Gazprom. The US lost the Pipeline Wars to Russia long ago.
The Western population is slowly coming to grips with the rise of the Shiite majority in Iraq. Yes, the United States lost the Iraqi War. Yes, the United States will soon have lost the Afghan War, except for the heroin booty. Valued at over $800 billion in narco profit annually, it has been the big prize on the battlefield supported by soldier blood & guts. At an estimated $6 trillion all-in war cost, thank the Bush II Admin for another folly that equals one third of the national debt. The great turning point for the Global Dollar Politics lies in the massive changes underway with the Petro-Dollar. The Saudis urgently seek a new protector for the Persian Gulf. It will be China to wear the cape. The Saudis will soon announce acceptance for oil payments in Euro terms, in Yen terms, in British Pound terms, and most important in Chinese Yuan terms. The effect will be felt like a gigantic crash impact of a 7-story building hitting the ground, marking the Death of the Petro-Dollar. It has served as the foundation for the USDollar for 40 years, since the Arab 1973 Embargo. The resolution involved a grand pact, engineered by Kissinger. It called for recycling Arab Oil Surplus into USTreasury Bonds, used to fill the many national banking systems across the world. The unraveling of the Petro-Dollar standard will bring about colossal reformation of the many national banking systems. They will ditch the USTBonds in favor of a mix of Chinese Yuan and Gold bullion. Later the same Yuan will become partially gold-backed. Game over for the King Dollar!
EXPORTED MONETARY INFLATION
The global resistance movement is accelerating with tremendous speed. Back in 2009, the Jackass stated that the first nations to depart the USDollar system would emerge as the leaders of the Next Chapter for the New Paradigm. The warning was that nations would find themselves in an urgent situation whereby maintaining the current USD/USTB system would bring about a death of their currency, bonds, banks, and economies. Conforming and adhering to the King Dollar allegiance would be a death sentence. In the last few months, since the retreat from the Taper Talk by the USFed, since the full outward adoption of QE to Infinity and ZIRP Forever, the world has come to conclude that the Reign of the King Dollar is over. They are noticing the collapse of the current system, due to continued hyper monetary inflation and full dependence on phony money, complete with amplified dispensation to the banker elite.
Alternatives to the USDollar are well along in design, approaching implementation for commerce, wherein the Gold Trade Standard will be installed. The impact waves will be powerful, sweeping aside the fiat paper currencies and their flimsy sovereign bond reinforcement, an implied foundation of debt. Never can a monetary system rest upon a debt foundation without a near complete destruction of capitalist systems. The hyper monetary inflation that has emerged as consensus central bank policy has resulted in global capital destruction, due to rising cost structure, a direct consequence of chronic monetary inflation of the exported variety. Monetary inflation kills capital. Exported monetary inflation kills foreign capital. The Jackass has challenged the clueless cast of economist hacks to rebuttal, but not a word has come. The QE to Infinity policy, with its rancid wreckage from ruinous bond monetization, is the epitome of capital destruction. The Keynesian School has presided over a ravaged field. The Von Mises School of sound money, of asset backed monetary systems, or Gold reinforced trade systems, will take over from the mad professors, the criminal bankers, and the narco dripped militarist hands.
USGOVT OFFICES SHUTDOWN
It seemed like a comedy, a bad joke. The Obama Admin appeared to intentionally force a shutdown of the USGovt, even if temporary. An element of farce and lunacy prevailed. Black Swans were spotted swimming around the White House moat. The shutdown actually cost more than it saved, due to startup re-initializations of queer systems. From a perspective 3000 miles (5000 kms) south, the entire sequence of events appeared orchestrated by a hidden hand, to satisfy an ulterior motive, even to conduct a strange test. As the world watched in dismay and horror, the USGovt did shut down many offices and ports and parks. The incompetence of the political bodies was laid bare for all to see, the usual battle of entitlements versus taxes on the main. It was the socialists versus the communists actually, which never results in compromise. See history with Hitler versus Stalin. Sorry, forgot that Americans do not read history, study history, or learn from history. Evidence is the revered Weimar Printing Press usage, the adulation from financial market dependence, the taxation to oblivion, the repeat of the British folly and Soviet folly in Aghanistan.
The USGovt shutdown offered an unusual glimpse, much like a trial balloon, to test the reaction across the world. It was like the captain of the USS WhiteHorrHouse taking initial measures to scuttle the ship, just to see if anyone would jump in reaction, or retreat in horror, or notice at all. The Jackass gut tells me that the Chinese ordered the temporary shutdown in order to fine tune with delicate calibration many specific systems, which required a legal default on the books, although temporary. They wanted to conduct a test, to determine the reaction within the most complex financial contraption ever devised by man, the USTreasury Bond market. Its tentacles include the USTBond futures, the TNX options, the Interest Rate Swap contracts, the derivatives from the REMICs, the USAgency Bonds, the FOREX swaps, the Social Security Trust Fund, all coming under the Exchange Stabilization Fund umbrella. Nobody can adequately predict the effects within such a complex obscene twisted system built by mad professors and criminal minds, replete with back doors for presidential thefts. So the Chinese ordered a test. My joke recently has been that China lacks rainwater, no longer a secret. They have dried rivers that used to supply Beijing its water. Their arid land does not receive adequate rainfall. So China plans to convert its USTBonds and USAgency Bonds into water, by calling on their amplified liquidity characteristics.
The USGovt shutdown offered an unusual glimpse, much like a trial balloon, to test the reaction across the world. It was like the captain of the USS WhiteHorrHouse taking initial measures to scuttle the ship, just to see if anyone would jump in reaction, or retreat in horror, or notice at all. The Jackass gut tells me that the Chinese ordered the temporary shutdown in order to fine tune with delicate calibration many specific systems, which required a legal default on the books, although temporary. They wanted to conduct a test, to determine the reaction within the most complex financial contraption ever devised by man, the USTreasury Bond market. Its tentacles include the USTBond futures, the TNX options, the Interest Rate Swap contracts, the derivatives from the REMICs, the USAgency Bonds, the FOREX swaps, the Social Security Trust Fund, all coming under the Exchange Stabilization Fund umbrella. Nobody can adequately predict the effects within such a complex obscene twisted system built by mad professors and criminal minds, replete with back doors for presidential thefts. So the Chinese ordered a test. My joke recently has been that China lacks rainwater, no longer a secret. They have dried rivers that used to supply Beijing its water. Their arid land does not receive adequate rainfall. So China plans to convert its USTBonds and USAgency Bonds into water, by calling on their amplified liquidity characteristics.
REPO MARKET BROKEN
A trial run for default could very possibly have been staged. The critical point of fracture and breakdown lies in the REPO Market. It is little known, little followed, and little understood. It serves as the vast overnight liquidity supply engine. Bear in mind that insolvency plus illiquidity equals bankruptcy. Translate to mean that the many important insolvent systems (big banks, government debt finance), if subjected to a sudden bout of liquidity halt, would be quickly thrust into a situation where failure and bankruptcy could result. The critical REPO Market suffered seizures in September, as the USTreasury Bond found itself not acceptable as collateral, from a legal standpoint, due to the temporary shutdown. The USTBond was all of a sudden a defaulted bond, not worthy of collateral for the overnight loans. So much for pristine paper. The trials in violent events have resulted in actual events, done by the guardians as my suspicion. The October Hat Trick Letter offered details on the complex situation, a trickle down sequence of wrecked systems.
The objective might be to arrange for a vast centrifuge operated by the US Federal Reserve, to dispense USDollars in cash redemption for USTBills, orchestrated by Chinese hands, mainly for their benefit. Operation Twist enabled the Chinese to swap out of long-term USTBonds in favor of short-term USTBills. Now they want out of them too. Witness the upcoming USD/ USTB/ REPO sequential default centrifuge. The USFed is not in a position to prevent it. The USDept Treasury is not in a position to stop it. The REPO Market forces it. The Chinese might be orchestrating it, pulling levers, ordering actions, making phone calls, throwing their weight around. Their greater plan could be to cause the USGovt debt default and to force a regime change. Better described, they wish for a dismantle of the current form of the USGovt and its mis-Representative bodies. My best source has informed me that the Chinese Govt has already put in place a plan to write down $1 trillion in USGovt debt securities. Big changes are coming. The REPO Market might serve as the trigger device. The Chinese will then force a double in the Gold Price, which would bring them $1 trillion in like-sized profit. Think Reset. Their gold hoard is an order of magnitude greater than reported officially.
JPMORGUEN WRECKED HOUSE
A few months ago, a strange story hit the press on JPMorguen taking steps to exit from the commodities business. It was given minor weight. Back in May 2012, the venerable broken JPMorguen CIO control room revealed astounding derivative losses. Obviously they lied on the details, and deflected the blame. It was not from FOREX trades linked to Southern European sovereign bonds, which all improved over the previous three months (by the way). The outsized losses, probably ten times larger than admitted, were linked to the fast rise in the 10-year USTreasurys. The interest rate derivatives were in the process of breaking down badly. The London Whale loss was the signal. The mainstream press enjoys distorting the news, but the Jackass prefers to report it and to interpret it.
The Saga of the JPM Funeral is ongoing and unstoppable. The casket is prepared. The old man is dead on the floor. The quick move from 1.65% on the TNX in May to 2.95% in September was sufficient to wreck the entire Interest Rate Swap derivative structure, kit & kaboodle. No minced words here, IRSwap structure dead and destroyed, barely limping along. The added piece of evidence to support the claim was the September event whereby the USFed led a round robin of flash trading to overbid the USTBond with the collusion of Wall Street banks. They might not have been eager to comply, but they were forced to do so. If the Interest Rate Swap machinery still functioned, there would have been no need to resort to such obvious tactics in the open, in full view. The IRSwap machinery that serves as the flying buttress to the USTreasury Bond Tower of Babel is broken. Big movements up or down in the TNX, the 10-year bond yield, are capable of wrecking the delicate extremely high leveraged derivative apparatus. It is managed by the Exchange Stabilization Fund under the USDept Treasury aegis, with JPMorguen CIO operational management. The exacerbation has come from the Big US Banks reversing their bond carry trade, which has badly depleted their capital. The capital is urgently needed to defend the USTreasury Bond Tower, and to supply the Interest Rate Swap derivative machinery. The capital is gone. They lack liquidity and are insolvent. Death awaits.
The final evidence of a wrecked House of Morguen is the massive property sale for a meager $725 million. David Rockefeller would roll over in his grave, except that he still breathes among the Satanic warm bodies, soon destined for the worms and nether world. His JPMorguen iconic former headquarters at One Chase Manhattan Plaza was sold for a measly $725 million, which deserves repeating. The tower itself is worth twice that figure, in a healthy market that fetches true value. One must wonder if the sweet deal is in return for a truckload of toxic USTreasury Bonds wrapped in a package deal. The same JPM HQ location is the property complex that houses their commercial gold vault. It is the largest vault in the world. One Chase Manhattan Plaza combines three main components: a 60-story tower, a 2.5 acre plaza, and a 6-story base, of which five floors are beneath grade (underground). Excavations, said to be the most extensive in New York City history, reached a depth of 90 feet during its construction long ago. The construction is ornate and elaborate, featuring white Italian marble travertine, and fortified to withstand both a nuclear attack and a massive flood. The L-shaped plaza levels the sloping site and conceals six floors of operations, which includes an auditorium and the bank vault. The motives for sale to a Chinese property conglomerate remain shrouded in mystery.
China just acquired the building that houses the world’s largest gold vault. Contrast with the frenetic Chinese gold imports in the last several months from Hong Kong, totaling 2000 metric tons in the past two years. Conclude possibly that China has decided it will no longer settle for domestically held gold and has begun to expand its global vault facilities, kind of like golden colonies or outposts, better yet arsenals and armories. The acquisition is an important step in the Grand Paradigm Shift of power moving from West to East. To put it in military terms, the Chinese just established a beach head in South Manhattan. It is more than a beach head. They took control of the USFed Operational HQ. Game over!! The USFed just surrendered!! The last people to know will be Americans. Word will filter through Wall Street. Watch the Wall Street investment banks soon announce the news of Chinese Govt debt being sold on US soil, just like in London. The whores of Manhattan can pivot and salute the Eastern master. The Chinese have captured the flag, by acquiring under duress the trophy tower. May John Pierpoint Morgan roll over in his two-timing grave also, an efficient agent for the Bank of England in the recapture of the US Colony a century ago.
CAPITAL CONTROLS
Ever since the late 2008 events of financial firm collapse, the Big Banks lashed themselves together. Not just the New York banks, but the London banks and even the Western European banks like big German, Dutch, and French banks. If any one big Western bank fails, they will all suffer a failure event. There is security in numbers, which lashing does accomplish. The term comes from old ships at sea, which prevented sailors from being thrust overboard during stormy seas. They would tie themselves together with other sailors around the waist, then tie the ropes to the ship masts. In today’s financial stormy seas, the big banks are being rocked by insolvency, and rocked by impaired sovereign bonds, and rocked by interest rate derivative losses, and rocked by reversed carry trade losses, and rocked by legal challenges with court settlements, and rocked by departure of wise client funds, and rocked by damaged prestige. Their insolvency owes to profound losses in their portfolios of bonds and loans. Their illiquidity owes to sudden massive derivative losses. They are also being forced to comply with harsh Basel III Rules on maintaining sufficient capital. Again, insolvency plus illiquidity equals bankruptcy and failure. Finally the Big US Banks are insolvent and suddenly illiquid. Thus the JPMorguen prize property sale, to raise cash, and to wipe away bad paper.
The Big US Banks have begun to announce capital controls. It started with JPMorguen on client accounts, limiting their withdrawals and limiting wire transfer activity. The practice has recently spread to other big banks, following in the JPM lead. Shadow banking has come to the fore to show its ugly head. Clearly, such a capital control policy would not be necessary if the big banks had sufficient capital and sufficient liquidity. They have neither.
SYSTEMIC BREAKDOWN IMMINENT
All the signals point to the same conclusion. The system is breaking down. The towers are falling. The paper mache structures have withered. The derivative machinery has been jammed. The confidence in the paper based system has vaporized. Nobody can foretell when the new system will arrive, but its description can be offered in rough terms. It will be from a Global Currency Reset, with a vast redemption of USTreasurys, a lost USDollar global currency reserve, and discredited sovereign bond backbone for all major currencies. It will feature a Gold Trade Standard, with trade settled on a net basis with gold bullion, supported by gold intermediary bankers. It will rely upon Gold Trade Notes that serve as Letters of Credit. It will see a massive Gold Trade Central Bank, whose embryonic form is noted in the BRICS Bank. Expect the bank to function as a processing plant at a later date, to convert USTBonds into Gold bullion. The same bank will process UKGilts, EuroBonds, and JapGovtBonds into Gold Bullion. The de-centralized system will be trade based, not bank based. Trade rules will dictate banking rules, to displace the Anglo banker hegemony. The New York and London offices, even the Swiss offices, will attempt to continue their sabotage. But they can only win delays. See the tactics exerted upon the G-20 Meetings. The BRICS initiatives and formal progress are led by Russia & China. They cannot be stopped, mainly because they attempt survival by establishing the next chapter’s architecture.
The Grand Paradigm Shift is in progress. My sources indicate that the 5000 metric tons of Gold bullion moved from London to points East between April and July 2012. The flow eastward never stopped. The pace has continued. The Gold bullion continues to be shipped in enormous staggering volume. The Gold Community has only a rudimentary comprehension of what is happening in the clandestine shipment of gold. The pillars of the community seem either unaware or unwilling to report anything but the supersized Chinese purchases through the Hong Kong window, the Indian demand, and the Turkish demand. My belief is they lack insider contacts on the phenomenon movement of gold by the White Dragon Family and their Triad escorts. The agreements have already been made on the new Gold Trade Settlement system with its newly imposed Gold Trade Standard. They have agreed on a $7000/oz gold price, with a similarly exalted silver price of at least $250/oz. Decisions have been made final. The implementation is slow but steady. The game is over. The King Dollar is dead. All that remains is the funeral, the war in its wake, and the retaliation from the Satanic fortress and its legion of diabolical subjects.
Friday, November 1, 2013
A huge adjustment at comex causes total dealer gold to fall to 20.48 tonnes/The big three dealers in gold hold only 16.425 tonnes/GLD loses a monstrous 5.7 tonnes of physical gold from its vaults/
Good evening Ladies and Gentlemen: amended commentary
In the access market today at 5:15 pm tonight here are the final prices:
gold: $1316.00
Here are today's results:
Gold closed down $10.50 cents to $1313.10 (comex closing time ). Silver was down 2 cents at $21.81.
In the access market today at 5:15 pm tonight here are the final prices:
gold: $1316.00
silver: $21.90
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. Today, increase in negativity
Here are today's readings with Thursday's comparison:
i) One Month: -.060000% vs yesterday: -.0420000%
ii Two Months: -.0470000%. vs yesterday: -.036000000
iii) Three Months: -.03000% vs yesterday: -.022000000%
iv) Six months: +.0325000% vs yesterday: +.0360000%
Here are today's readings with Thursday's comparison:
i) One Month: -.060000% vs yesterday: -.0420000%
ii Two Months: -.0470000%. vs yesterday: -.036000000
iii) Three Months: -.03000% vs yesterday: -.022000000%
iv) Six months: +.0325000% vs yesterday: +.0360000%
Let us now head over to the comex and assess trading over there today.
Here are today's results:
The total gold comex open interest fell today by 1508 contracts from 389,271 down to 387,763 as gold fell yesterday by $25.40 . We have now ended the active delivery month of October as we head into the non active delivery month of November. The November front month saw it's OI fall from 33 down to 18 for a loss of 15 contracts. we had 0 delivery notices so we lost 15 contracts or 1500 oz of gold standing. The biggest of all delivery months is the December contract month. The December OI fell by 3914 contracts to 204,103. The estimated volume today was fair at 131,362 contracts. The confirmed volume yesterday was better coming in at 160,554.
The total silver Comex OI fell by 452 contracts as silver was down in price yesterday ( $1.15 ). The total OI now rests tonight at 118,494 contracts. We are now seeing the OI with respect to silver and gold rise slowly and I believe we can assume that both precious metal contracts are all in strong hands. The next non active front month for silver is November and here the OI lost 46 contracts down to 20. The big December contract saw its OI fall by 1789 contracts down to 74,292. The estimated volume today was good coming in at 37,019 contracts. The confirmed volume yesterday was excellent at 56,905.
****
Thus tonight with respect to JPMorgan gold inventory, here is JPMorgan's Friday night inventory :
JPM dealer inventory falls tonight to 234,450.395: oz or 7.292 tonnes
JPM customer inventory rises tonight to: 528,215.620 oz or 16.429 tonnes
and....
Today we had 1 huge adjustments.
i) Out of the JPMorgan vaults: 48,652.239 oz was adjusted out of the dealer and this landed into the customer account of JPMorgan.
i) Out of the JPMorgan vaults: 48,652.239 oz was adjusted out of the dealer and this landed into the customer account of JPMorgan.
Thus tonight with respect to JPMorgan gold inventory, here is JPMorgan's Friday night inventory :
JPM dealer inventory falls tonight to 234,450.395: oz or 7.292 tonnes
JPM customer inventory rises tonight to: 528,215.620 oz or 16.429 tonnes
****
Tonight, we still have the continuing disturbing piece of news concerning the low dealer gold inventory for our 3 major bullion banks(Scotia, HSBC and JPMorgan). These 3 dealer gold inventory falls tonight to 16.425 tonnes.
i) Scotia: 162,121.611 oz or 5.043 tonnes
ii) HSBC: 131,673.323. oz or 4.09 tonnes
iii) JPMorgan: 234,450.395 oz or 7.292 tonnes
total: 16.425 tonnes
i) Scotia: 162,121.611 oz or 5.043 tonnes
ii) HSBC: 131,673.323. oz or 4.09 tonnes
iii) JPMorgan: 234,450.395 oz or 7.292 tonnes
total: 16.425 tonnes
****
And now the Gold inventory at the GLD:
November 1: after a 4 day hiatus, gold lost a monstrous 5.7 tonnes and this gold left western shores onto Shanghai.
November 1: after a 4 day hiatus, gold lost a monstrous 5.7 tonnes and this gold left western shores onto Shanghai.
Tonnes866.32
Ounces27,852,949.60
Value US$36,382,560,915.31
****
Selected news ....
West distorts bullish Chinese gold news, Kaye tells KWN
Submitted by cpowell on Fri, 2013-11-01 19:03. Section: Daily Dispatches
6:03a AEST Saturday, November 2, 2013
Dear Friend of GATA and Gold:
Gold news out of China remains bullish but is badly distorted in the West, Hong Kong-based fund manager William Kaye tells King World News, and the reduction in gold price premiums in China is likely the result of action by the Chinese government to reduce exploitation of Chinese demand by bullion arbitrageurs. Kaye also warns against keeping funds in money-center banks. An excerpt from his interview is posted at the King World News blog here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
As markets fall, central banks will undertake lots more QE, Grant Williams says
Submitted by cpowell on Fri, 2013-11-01 04:45. Section: Daily Dispatches
3:40p AEST Friday, November 1, 2013
Dear Friend of GATA and Gold:
Stock markets are terribly vulnerable as they rise on little volume, Singapore fund manager Grant Williams tells King World News today, and as they fall, central banks will undertake lots more "quantitative easing." An excerpt from the interview is posted at the King World News blog here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Barrick to issue $3.5 billion in shares, suspend work at Pascua-Lama
Submitted by cpowell on Fri, 2013-11-01 04:36. Section: Daily Dispatches
By Liezel Hill and Steven Frank
Bloomberg News
Friday, November 1, 2013
TORONTO -- Barrick Gold Corp., the world's largest producer of the metal, plans to sell shares to raise as much as $3.45 billion to help reduce its debt, which has increased this year as the price of the commodity declined.
It agreed to sell 163.5 million shares for $18.35 apiece in a so-called bought deal that's being underwritten by a group led by RBC Capital Markets, Barclays Plc, and GMP Securities LP, Toronto-based Barrick said today in a statement. There's an over-allotment option for the sale of an additional 24.5 million shares, the company said.
Barrick has come under pressure this year after the price of gold fell 21 percent. Chief Executive Officer Jamie Sokalsky has explored cash-raising options including a strategic equity investment, a sale of a stake in its copper business, and selling a stale in its $8.5 billion Pascua-Lama project to a state-backed Chinese investor, people with knowledge of the matter said yesterday. Barrick said earlier today it will suspend construction work at Pascua-Lama to help conserve cash.
... For the full story:
Suchecki disputes TF on Comex gold; Sinclair, Williams interviewed
Submitted by cpowell on Thu, 2013-10-31 23:06. Section: Daily Dispatches
10a AEST Friday, November 1, 2013
Dear Friend of GATA and Gold:
The Perth Mint's Bron Suchecki disputes the TF Metal Report's Turd Ferguson's contention that Comex gold vaulting reports are unreliable:
USAWatchdog's Greg Hunter interviews gold entrepreneur and advocate Jim Sinclair about what Sinclair sees as the likely "annihilation of currency" and the resulting hyperinflation:
And Singapore-based fund manager Grant Williams tells King World News that when China fully hedges its U.S. dollar exposure with gold, the dollar will become extremely vulnerable:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
****
Selected news ....
West distorts bullish Chinese gold news, Kaye tells KWN
Submitted by cpowell on Fri, 2013-11-01 19:03. Section: Daily Dispatches
6:03a AEST Saturday, November 2, 2013
Dear Friend of GATA and Gold:
Gold news out of China remains bullish but is badly distorted in the West, Hong Kong-based fund manager William Kaye tells King World News, and the reduction in gold price premiums in China is likely the result of action by the Chinese government to reduce exploitation of Chinese demand by bullion arbitrageurs. Kaye also warns against keeping funds in money-center banks. An excerpt from his interview is posted at the King World News blog here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
As markets fall, central banks will undertake lots more QE, Grant Williams says
Submitted by cpowell on Fri, 2013-11-01 04:45. Section: Daily Dispatches
3:40p AEST Friday, November 1, 2013
Dear Friend of GATA and Gold:
Stock markets are terribly vulnerable as they rise on little volume, Singapore fund manager Grant Williams tells King World News today, and as they fall, central banks will undertake lots more "quantitative easing." An excerpt from the interview is posted at the King World News blog here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Barrick to issue $3.5 billion in shares, suspend work at Pascua-Lama
Submitted by cpowell on Fri, 2013-11-01 04:36. Section: Daily Dispatches
By Liezel Hill and Steven Frank
Bloomberg News
Friday, November 1, 2013
TORONTO -- Barrick Gold Corp., the world's largest producer of the metal, plans to sell shares to raise as much as $3.45 billion to help reduce its debt, which has increased this year as the price of the commodity declined.
It agreed to sell 163.5 million shares for $18.35 apiece in a so-called bought deal that's being underwritten by a group led by RBC Capital Markets, Barclays Plc, and GMP Securities LP, Toronto-based Barrick said today in a statement. There's an over-allotment option for the sale of an additional 24.5 million shares, the company said.
Barrick has come under pressure this year after the price of gold fell 21 percent. Chief Executive Officer Jamie Sokalsky has explored cash-raising options including a strategic equity investment, a sale of a stake in its copper business, and selling a stale in its $8.5 billion Pascua-Lama project to a state-backed Chinese investor, people with knowledge of the matter said yesterday. Barrick said earlier today it will suspend construction work at Pascua-Lama to help conserve cash.
... For the full story:
Suchecki disputes TF on Comex gold; Sinclair, Williams interviewed
Submitted by cpowell on Thu, 2013-10-31 23:06. Section: Daily Dispatches
10a AEST Friday, November 1, 2013
Dear Friend of GATA and Gold:
The Perth Mint's Bron Suchecki disputes the TF Metal Report's Turd Ferguson's contention that Comex gold vaulting reports are unreliable:
USAWatchdog's Greg Hunter interviews gold entrepreneur and advocate Jim Sinclair about what Sinclair sees as the likely "annihilation of currency" and the resulting hyperinflation:
And Singapore-based fund manager Grant Williams tells King World News that when China fully hedges its U.S. dollar exposure with gold, the dollar will become extremely vulnerable:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Submitted by cpowell on Fri, 2013-11-01 19:03. Section: Daily Dispatches
6:03a AEST Saturday, November 2, 2013
Dear Friend of GATA and Gold:
Gold news out of China remains bullish but is badly distorted in the West, Hong Kong-based fund manager William Kaye tells King World News, and the reduction in gold price premiums in China is likely the result of action by the Chinese government to reduce exploitation of Chinese demand by bullion arbitrageurs. Kaye also warns against keeping funds in money-center banks. 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.
As markets fall, central banks will undertake lots more QE, Grant Williams says
Submitted by cpowell on Fri, 2013-11-01 04:45. Section: Daily Dispatches
3:40p AEST Friday, November 1, 2013
Dear Friend of GATA and Gold:
Stock markets are terribly vulnerable as they rise on little volume, Singapore fund manager Grant Williams tells King World News today, and as they fall, central banks will undertake lots more "quantitative easing." An excerpt from the interview is posted at the King World News blog here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Barrick to issue $3.5 billion in shares, suspend work at Pascua-Lama
Submitted by cpowell on Fri, 2013-11-01 04:36. Section: Daily Dispatches
By Liezel Hill and Steven Frank
Bloomberg News
Friday, November 1, 2013
TORONTO -- Barrick Gold Corp., the world's largest producer of the metal, plans to sell shares to raise as much as $3.45 billion to help reduce its debt, which has increased this year as the price of the commodity declined.
It agreed to sell 163.5 million shares for $18.35 apiece in a so-called bought deal that's being underwritten by a group led by RBC Capital Markets, Barclays Plc, and GMP Securities LP, Toronto-based Barrick said today in a statement. There's an over-allotment option for the sale of an additional 24.5 million shares, the company said.
Barrick has come under pressure this year after the price of gold fell 21 percent. Chief Executive Officer Jamie Sokalsky has explored cash-raising options including a strategic equity investment, a sale of a stake in its copper business, and selling a stale in its $8.5 billion Pascua-Lama project to a state-backed Chinese investor, people with knowledge of the matter said yesterday. Barrick said earlier today it will suspend construction work at Pascua-Lama to help conserve cash.
... For the full story:
Suchecki disputes TF on Comex gold; Sinclair, Williams interviewed
Submitted by cpowell on Thu, 2013-10-31 23:06. Section: Daily Dispatches
10a AEST Friday, November 1, 2013
Dear Friend of GATA and Gold:
The Perth Mint's Bron Suchecki disputes the TF Metal Report's Turd Ferguson's contention that Comex gold vaulting reports are unreliable:
USAWatchdog's Greg Hunter interviews gold entrepreneur and advocate Jim Sinclair about what Sinclair sees as the likely "annihilation of currency" and the resulting hyperinflation:
And Singapore-based fund manager Grant Williams tells King World News that when China fully hedges its U.S. dollar exposure with gold, the dollar will become extremely vulnerable:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Submitted by cpowell on Fri, 2013-11-01 04:45. Section: Daily Dispatches
3:40p AEST Friday, November 1, 2013
Dear Friend of GATA and Gold:
Stock markets are terribly vulnerable as they rise on little volume, Singapore fund manager Grant Williams tells King World News today, and as they fall, central banks will undertake lots more "quantitative easing." 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.
Barrick to issue $3.5 billion in shares, suspend work at Pascua-Lama
Submitted by cpowell on Fri, 2013-11-01 04:36. Section: Daily Dispatches
By Liezel Hill and Steven Frank
Bloomberg News
Friday, November 1, 2013
TORONTO -- Barrick Gold Corp., the world's largest producer of the metal, plans to sell shares to raise as much as $3.45 billion to help reduce its debt, which has increased this year as the price of the commodity declined.
It agreed to sell 163.5 million shares for $18.35 apiece in a so-called bought deal that's being underwritten by a group led by RBC Capital Markets, Barclays Plc, and GMP Securities LP, Toronto-based Barrick said today in a statement. There's an over-allotment option for the sale of an additional 24.5 million shares, the company said.
Barrick has come under pressure this year after the price of gold fell 21 percent. Chief Executive Officer Jamie Sokalsky has explored cash-raising options including a strategic equity investment, a sale of a stake in its copper business, and selling a stale in its $8.5 billion Pascua-Lama project to a state-backed Chinese investor, people with knowledge of the matter said yesterday. Barrick said earlier today it will suspend construction work at Pascua-Lama to help conserve cash.
... For the full story:
Suchecki disputes TF on Comex gold; Sinclair, Williams interviewed
Submitted by cpowell on Thu, 2013-10-31 23:06. Section: Daily Dispatches
10a AEST Friday, November 1, 2013
Dear Friend of GATA and Gold:
The Perth Mint's Bron Suchecki disputes the TF Metal Report's Turd Ferguson's contention that Comex gold vaulting reports are unreliable:
USAWatchdog's Greg Hunter interviews gold entrepreneur and advocate Jim Sinclair about what Sinclair sees as the likely "annihilation of currency" and the resulting hyperinflation:
And Singapore-based fund manager Grant Williams tells King World News that when China fully hedges its U.S. dollar exposure with gold, the dollar will become extremely vulnerable:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Submitted by cpowell on Fri, 2013-11-01 04:36. Section: Daily Dispatches
By Liezel Hill and Steven Frank
Bloomberg News
Friday, November 1, 2013
Bloomberg News
Friday, November 1, 2013
TORONTO -- Barrick Gold Corp., the world's largest producer of the metal, plans to sell shares to raise as much as $3.45 billion to help reduce its debt, which has increased this year as the price of the commodity declined.
It agreed to sell 163.5 million shares for $18.35 apiece in a so-called bought deal that's being underwritten by a group led by RBC Capital Markets, Barclays Plc, and GMP Securities LP, Toronto-based Barrick said today in a statement. There's an over-allotment option for the sale of an additional 24.5 million shares, the company said.
Barrick has come under pressure this year after the price of gold fell 21 percent. Chief Executive Officer Jamie Sokalsky has explored cash-raising options including a strategic equity investment, a sale of a stake in its copper business, and selling a stale in its $8.5 billion Pascua-Lama project to a state-backed Chinese investor, people with knowledge of the matter said yesterday. Barrick said earlier today it will suspend construction work at Pascua-Lama to help conserve cash.
... For the full story:
Suchecki disputes TF on Comex gold; Sinclair, Williams interviewed
Submitted by cpowell on Thu, 2013-10-31 23:06. Section: Daily Dispatches
10a AEST Friday, November 1, 2013
Dear Friend of GATA and Gold:
The Perth Mint's Bron Suchecki disputes the TF Metal Report's Turd Ferguson's contention that Comex gold vaulting reports are unreliable:
USAWatchdog's Greg Hunter interviews gold entrepreneur and advocate Jim Sinclair about what Sinclair sees as the likely "annihilation of currency" and the resulting hyperinflation:
And Singapore-based fund manager Grant Williams tells King World News that when China fully hedges its U.S. dollar exposure with gold, the dollar will become extremely vulnerable:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Submitted by cpowell on Thu, 2013-10-31 23:06. Section: Daily Dispatches
10a AEST Friday, November 1, 2013
Dear Friend of GATA and Gold:
The Perth Mint's Bron Suchecki disputes the TF Metal Report's Turd Ferguson's contention that Comex gold vaulting reports are unreliable:
USAWatchdog's Greg Hunter interviews gold entrepreneur and advocate Jim Sinclair about what Sinclair sees as the likely "annihilation of currency" and the resulting hyperinflation:
And Singapore-based fund manager Grant Williams tells King World News that when China fully hedges its U.S. dollar exposure with gold, the dollar will become extremely vulnerable:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Gold Anti-Trust Action Committee Inc.
and....
¤ THE WRAP
China may actually be surreptitiously building its gold reserves ahead of a future global reserve currency power play at some unspecified time in the future. - Lawrence Williams,mineweb.com, 01 November 2013
Friday was just another day when "da boyz" went about "slicing the salami" as Ted Butler has been saying for a decade now. They shave a little bit off the price each day until they figure that they've squeezed every long position out of the technical funds and small traders that they can. And if they drive the prices even lower, they can entice these same funds into going massively short. Of course JPMorgan et alring the cash register on the ensuing rally, and the process repeats over and over.
But one day it won't. We just don't know which day that will be. Jim Rickards gave us a clue in his interview posted further up.
The Commitment of Traders Report that the CFTC posted on their Web site yesterday, still leaves one more COT Report left to go before they're caught up. That's the one for the October 23 - 29 reporting period. And that's the one that should have come out yesterday, so we'll get it next week. Monday hopefully, but I don't really know for sure.
It's a pretty safe bet that the report will show a further increase in the Commercial net short positions in both gold and silver, as they were still in a bit of a rally mode going into the FOMC meeting. But as I said late last week, or was it on Tuesday, it appeared that prices weren't going to allowed to move above their respective 50-day moving averages, and except for the big spike in silver on Wednesday, which got hammered flat within hours, this has turned out to be the case.
It was easy to see it coming, and the six-month charts below certainly confirm it, as the topping patterns were obvious. The only thing we don't know is where JPMorgan et al will set the low for this move down. And as I said yesterday in this space, we won't know for sure until we see that event in the rear-view mirror.
Before heading out the door, here's Nick Lairds' "Total PMs Pool" chart updated with Friday's numbers. As you can see, despite the fact that a lot of ETFs are heading lower, the total PMs have just ticked higher. It's a good bet that this is happening because of the amount of silver being deposited both in the Comex-approved depositories, and in SLV during the last week or so.
That's all I have for the day, and the week.
See you on Tuesday.
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