Sunday, January 12, 2014

Gold And Silver Report January 12 , 014 - Ed Steer's Saturday missive ... And additional pertinent news , data and views touching on the precious metals !





http://www.zerohedge.com/news/2014-01-13/its-8amet-do-you-know-where-your-precious-metals-smackdown

( Manipulation so easy , even a caveman can do it.. )

It's 8amET, Do You Know Where Your Precious Metals Smackdown Is?

Tyler Durden's picture





 
Following some early strength in the Asia session, which saw Gold over $1255 (its highest in a month), the European session has seen pressure on the precious metals leak lower. That 'leak' was then helped on its way by the almost ubiquitous 8amET volume dumptaking gold and silver down markedly(though not catastrophically for now). The only other asset class showing any real action is GBPUSD (with GBP being sold aggressively) with Treasuries flat and stocks down modestly but stable for now.


and the only other asset class moving was GBPUSD...
Chart: Bloomberg

Of course, only a tin-foil-hat-wearing blogger would suggest manipulation... oh and theworld's regulators as per Bloomberg:
The topic of gold market manipulation during the London AM fix is not new to Zero Hedge: in fact we have discussed both the historical basis and the raison d'etre of the London gold fix, as well as the curious arbitrage available to those who merely traded the AM-PM spread, for years. Which is why we are delighted that none other than Bloomberg has decided to break it down for everyone, as well as summarize all the ways in which just this one facet of gold trading is being manipulated.
 
 
Every business day in London, five banks meet to set the price of gold in a ritual that dates back to 1919. Now, dealers and economists say knowledge gleaned on those calls could give some traders an unfair advantage when buying and selling the precious metal. The London fix, the benchmark rate used by mining companies, jewelers and central banks to buy, sell and value the metal, is published twice daily after a telephone call involving Barclays Plc, Deutsche Bank AG, Bank of Nova Scotia, HSBC Holdings Plc and Societe Generale SA.

The fix dates back to September 1919, less than a year after the end of World War I, when representatives from five dealers met at Rothschild’s office on St. Swithin’s Lane in London’s financial district. It was suspended for 15 years, starting in 1939. While Rothschild pulled out in 2004 and the discussions now take place by telephone instead of in a wood-paneled room at the bank, the process remains much the same.
That much is known. What is certainly known is that any process that involves five banks sitting down (until recently literally) and exchanging information using arcane methods (such as a telephone), on a set schedule that involves a private information blackout phase, even if temporary, and that does not involve instant market feedback, can and will be gamed. "Traders involved in this price-determining process have knowledge which, even for a short time, is superior to other people’s knowledge,” said Thorsten Polleit, chief economist at Frankfurt-based precious-metals broker Degussa Goldhandel GmbH and a former economist at Barclays. “That is the great flaw of the London gold-fixing."
There are other flaws.
 
 
Participants on the London call can tell whether the price of gold is rising or falling within a minute or so, based on whether there are a large number of net buyers or sellers after the first round, according to gold traders, academics and investors interviewed by Bloomberg News. It’s this feature that could allow dealers and others in receipt of the information to bet on the direction of the market with a high degree of certainty minutes before the fix is made public, they said.
Yes, the broader momentum creation and ignition perspective is also known to most. At least most who never believed the boilerplate that unlike all other asset classes, gold is somehow immune from manipulation.
 
 
“Information trickles down from the five banks, through to their clients and finally to the broader market,” Andrew Caminschi, a lecturer at the University of Western Australia in Perth and co-author of a Sept. 2 paper on trading spikes around the London gold fix published online in the Journal of Futures Markets, said by phone. “In a world where trading advantage is measured in milliseconds, that has some value.”
Ah, hypothetical - smart. One mustn't ruffle feathers before, like in the case of Libor, it becomes fact that everyone was in on it.
 
 
There’s no evidence that gold dealers sought to manipulate the London fix or worked together to rig prices, as traders did with Libor. Even so, economists and academics say the way the benchmark is set is outdated, vulnerable to abuse and lacking any direct regulatory oversight. “This is one of the most concerning fixings I have seen,” said Rosa Abrantes-Metz, a professor at New York University’s Stern School of Business whose 2008 paper, “Libor Manipulation?” helped spark a global probe. “It’s controlled by a handful of firms with a direct financial interest in where it’s set, and there is virtually no oversight -- and it’s based on information exchanged among them during undisclosed calls.”
Unless we are wrong, there was no evidence of Libor manipulative collusion before there was evidence either. And since the cabal of the London gold fix is far smaller than the member banks of Libor, it is exponentially easier to confine intent within an even smaller group of people. But all that is also known to most.
As is the fact that when asked for comments, 'spokesmen for Barclays, Deutsche Bank, HSBC and Societe Generale declined to comment about the London fix or the regulatory probes, as did Chris Hamilton, a spokesman for the FCA, and Steve Adamske at the CFTC. Joe Konecny, a spokesman for Bank of Nova Scotia, wrote in an e-mail that the Toronto-based company has “a deeply rooted compliance culture and a drive to continually look toward ways to improve our existing processes and practices."
Next, Bloomberg conveniently goes into the specifics of just how the gold price is manipulated first by the fixing banks, then by their "friends and neighbors" as news of the fixing process unfolds.
At the start of the call, the designated chairman -- the job rotates annually among the five banks -- gives a figure close to the current spot price in dollars for an ounce of gold. The firms then declare how many bars of the metal they wish to buy or sell at that price, based on orders from clients as well as their own account.

If there are more buyers than sellers, the starting price is raised and the process begins again. The talks continue until the buy and sell amounts are within 50 bars, or about 620 kilograms, of each other. The procedure is carried out twice a day, at 10:30 a.m. and 3 p.m. in London. Prices are set in dollars, pounds and euros. Similar gauges exist for silver, platinum and palladium.

The traders relay shifts in supply and demand to clients during the calls and take fresh orders to buy or sell as the price changes, according to the website of London Gold Market Fixing, which publishes the results of the fix.
.. only this time the manipulation is no longer confined to a purely theoretical plane and instead empirical evidence of the fixing leak is presented based on academic research:
Caminschi and Richard Heaney, a professor of accounting and finance at the University of Western Australia, analyzed two of the most widely traded gold derivatives: gold futures on Comex and State Street Corp.’s SPDR Gold Trust, the largest bullion-backed exchange-traded product, from 2007 through 2012.

At 3:01 p.m., after the start of the call, trading surged to 47.8 percent above the average for the 20-minute period preceding the start of the fix and remained 20 percent higher for the next six minutes, Caminschi and Heaney found. By comparison, trading was 8.7 percent higher than the average a minute after publication of the price. The results showed a similar pattern for the SPDR Gold Trust.

“Intuitively, we expect volumes to spike following the introduction of information to the market” when the final result is published, Caminschi and Heaney wrote in “Fixing a Leaky Fixing: Short-Term Market Reactions to the London P.M. Gold Price Fixing.” “What we observe in our analysis is a clustering of trades immediately following the fixing start.”

The researchers also assessed how accurate movements in gold derivatives were in predicting the final fix. Between 2:59 p.m. and 3 p.m., the direction of futures contracts matched the direction of the fix about half the time.

From 3:01 p.m., the success rate jumped to 69.9 percent, and within five minutes it had climbed to 80 percent, Caminschi and Heaney wrote. On days when the gold price per ounce moved by more than $3, gold futures successfully predicted the outcome in more than nine out of 10 occasions. “Not only are the trades quite accurate in predicting the fixing direction, the more money that is made by way of a larger price change, the more accurate the trade becomes,” Caminschi and Heaney wrote. “This is highly suggestive of information leaking from the fixing to these public markets.”
Oh please, 9 out of 10 times is hardly indicative of any wrongdoing. After all, JPM lost money on, well, zero trading days in all of 2013, and nobody cares. So if a coin landing heads about 200 times in a row is considered normal by regulators, then surely the CTFC will find nothing wrong with a little gold manipulation here and there. Manipulation, which it itself previously said did not exist. But everyone already knew that too.
Cynicism aside, to claim that this clearly gamed process is not in fact gamed, not to say criminally manipulated (because it is never manipulation unless one is caught in the act by enforcers who are actually not in on the scheme) is the height of idiocy. Which is why we are certain that regulators will go precisely this route. That too is also largely known. Also known are the benefits for traders who abuse the London fix:
For derivatives traders, the benefits are clear: A dealer who bought 500 gold futures contracts at 3 p.m. and knew the fix was going higher could make $200,000 for his firm if the price moved by $4, the average move in the sample. While the value of 500 contracts totals about $60 million, traders may buy on margin, a process that involves borrowing and requires placing less capital for the bet. On a typical day, about 4,500 futures contracts are traded between 3 p.m. and 3:15 p.m., according to Caminschi and Heaney.
Finally what is certainly known is that the "London fixing" fix would be very simple in our day and age of ultramodern technology, and require a few minutes of actual implementation.
Abrantes-Metz, who helped Iosco formulate its guidelines, said the gold fix’s shortcomings may stretch beyond giving firms and clients access to privileged information.“There is a huge incentive for these banks to try and influence where the benchmark is set depending on their trading positions, and there is almost no scrutiny,” she said.

Abrantes-Metz said the gold fix should be replaced with a benchmark calculated by taking a snapshot of trading in a market where $19.6 trillion of the precious metal circulated last year, according to CPM Group, a New York-based research company. “There’s no reason why data cannot be collected from actual prices of spot gold based on floor or electronic trading,” she said. “There’s more than enough data.”
Which is precisely why nothing will change. Sadly, that is also widely known.









http://www.caseyresearch.com/gsd/edition/nick-barisheff-the-second-greatest-opportunity-to-buy-gold


¤ YESTERDAY IN GOLD & SILVER

The gold price jumped five dollars or so in early Far East trading on their Friday---and then didn't do much until the jobs report came out in New York at 8:30 a.m. EST yesterday morning.  There was the usual spike down, but that began the moment that Comex trading began---and ended at precisely 8:30 when the numbers were released.
The spike up got capped immediately, but then the price began to work its way slowly higher from there, right through both the London p.m. gold fix and the 1:30 p.m. Comex close.  For a change, the gold price closed on its high tick of the day.
The CME recorded the low and high ticks at $1,226.60 and $1,248.50 in the February contract.
Gold closed the Friday session at $1,248.60 spot, which was up $20.90 from Thursday's close.  Net volume was 135,000 contracts.
Here's the New York Spot Gold [Bid] chart on its own, so you can see the details surrounding the release of the job numbers.
Silver traded flat in the Far East on their Friday, but popped a dime and change early in their afternoon.  From there it didn't do much into the 8:30 a.m. jobs number.  Not surprisingly the price spike at that point looked very similar to the price spike in gold at that time.  After that bit of excitement, the silver price traded almost ruler flat until about 12:20 p.m. EST.  The rally that developed at that point got cut off at the knees shortly before the Comex close---and nothing much happened after that.
The high and lows ticks in the March contract were recorded as $19.545 and $20.25.
Silver closed in New York yesterday at $20.17 spot, up 62.5 cents from Thursday's close.  Gross volume was pretty heavy at 59,000 contracts.
Here's the New York Spot Silver [Bid] chart, so you can see in more detail the price action that really mattered.
The platinum price rose about five dollars in Far East trading, but began to rally in earnest shortly before the Comex open.  That rally ended/got capped shortly before the Comex close---and it traded more or less sideways in the 5:15 p.m. EST electronic close.
The palladium price chopped sideways before rallying with platinum shortly before the Comex open.  The price spike around 1 p.m. in New York got dealt with in the usual matter---and that was pretty much it for the remainder of the Friday session. 
The dollar index closed on Thursday at 80.94---and then began to rally quietly staring about 2:30 p.m. Hong Kong time.  That all came to an end at the jobs report, as the index fell from 81.14 to 80.69 in a minute or so.  Then the index fell all the way down to its low of the day of 80.59 at precisely 10 a.m. EST---and then chopped sideways in a tight range for the remainder of the Friday session.


***

The CME Daily Delivery Report showed that, for the second day in a row, there were no posted deliveries in either gold or silver.  Two days in a row with no activity in either metal is something that, if it has happened, hasn't occurred in a very long time.
There were no reported changes in GLD---and as of 10:09 p.m. EST yesterday evening, there were no reported changes in SLV, either.
The good folks over at the shortsqueeze.com Internet site updated the short positions for both GLD and SLV as of the end of December.  In SLV, the short position only declined by 0.92%---which is basically nothing.  The number of SLVshares sold short now sits at 20,188,500 shares/troy ounces.
The number of shares of GLD declined by a chunky 19.97%---and now sits at 18,596,300 shares, or 1.86 million troy ounces as of December 31.
Once again there was nothing from the U.S. Mint.  This is the first time since I've been following their data that they haven't updated their website as of the beginning of the New Year.
Over at the Comex-approved depositories on Friday in gold, there were 78,082 troy ounces reported received---and 11,404 troy ounces reported shipped out.  Not surprisingly, almost the entire amount received disappeared into JPMorgan's warehouse.  The link to that activity is here.
It was another big day in silver, as 1,347,955 troy ounces were shipped in---and 371,256 troy ounces were shipped out.  JPMorgan took about two thirds of the receipts themselves.  The link to that action is here.
Before commenting on yesterday's Commitment of Traders Report, for positions held at the close of trading on January 7, I'd like to quote what was said about the New Years Day-delayed COT Report  for positions held at the close of trading on December 31---and here it is right out of my Tuesday column:
"Well, the delayed Commitment of Traders Report came out yesterday [Monday - Ed] for positions held at the close of trading on Tuesday, December 31.  The Commercial net short positions in both gold and silver were up---and the headline number for silver was up substantially.  In gold, the Commercial net short position increased by 6,500 contracts---and silver it was a very chunky 5,100 contracts."
"I'll just borrow a couple of paragraphs from silver analyst Ted Butler's commentary yesterday, as I couldn't add to, or improve on it---and it saves me some time as well:  "I’m not going to dig into the details under the hood at this time, because it may be an unwarranted exercise. In Saturday’s weekly review, I mentioned that given the wild price action on the Tuesday cutoff, it was likely that all transactions would not be reported on a timely basis. It appears that was probably the case in today’s release."
"Therefore, I think it advisable to wait until the new COT report this Friday (which will also feature the new monthly Bank Participation Report) before digging into the details. Today’s report was reminiscent of the COT report issued in April after the big two day $200 price smash in gold and $5 thumping in silver. In that report, the actual positioning was not reflected in the COT report until a week later"
That's what was said this past Monday about the prior COT Report---and now on to the latest one.
Friday's [yesterday's] Commitment of Traders Report was a disappointment.  I was expecting some sort of improvement, but what we ended up with was a further increase in the Commercial net short position in both silver and gold.  In silver, the Commercial net short position increased by 757 contracts, or 3.8 million ounces.  The Commercial net short position is now up to 127.6 million ounces, which is certainly well off its low.  Ted says that JPMorgan's short-side corner in the silver market is now back up to 85 million ounces.  A few weeks back Ted had them pegged at a 50 million ounce short position, so it's obvious that JPM is going short again in spades in order to prevent the silver price from blasting off since this latest rally began.
In gold, the Commercial net short position increased by a further 8,863 contracts, or 886,300 troy ounces---and it now stands at 4.19 million ounces.  This is still a very low number, but it's not going in the right direction.  Ted says that JPMorgan's long-side corner has dropped by a substantial amount, and is now down to 5.7 million ounces, so it's obvious that JPMorgan has not been waiting to sell it long positions at big profits, but has been selling to cap the price ever since the current rally began when the low was set back on December 19.
Combining the two COT Reports, what it shows is that since December 24, despite the big JPMorgan et al-engineered blast down to new lows on December 31, the Commercial net short position in silver has blown out by almost 6,000 contracts---and the short position in gold has increased by over 15,000 contracts.
I'm going to be very interested in what Ted Butler has to say about all this to his paying subscribers later today---and I'll steal anything I find of interest for my Tuesday column.
I'll have more to say about this in The Wrap section further down.
And now for the January Bank Participation Report [BPR].  This data is extracted directly from Tuesday's [January 7] Commitment of Traders Report---and what it shows for this one day a month, is the Comex long and short futures positions in all commodities held by all the banks in the world.  If there was one report [besides the COT Report] that "da boyz" could make disappear off the face of the earth, it would be this one---and for the obvious reason---they don't like being caught buck naked, even if it's only for one day a month, as it shows what they're up to---especially in the precious metal market.
In gold, 4 U.S. banks were net long the Comex futures market by 39,259 contracts---and that's way down from the big 57,408 net long position they held in the December report.  Most of this change has occurred since gold's low on December 19, as JPMorgan et al have been selling heavily to contain the rally since that date.
Also in gold, 18 non-U.S. banks were net short the Comex futures market in gold by 6,364 contracts---and that's a monster improvement from the 14,039 contract net short position they held in the December BPR.  So, at least for this one month, the eighteen foreign banks currently active in the Comex futures market in gold are stampeding for the exits en masse.  Actually, their collective short positions, divided up more or less evenly between all 18 banks, are now immaterial.  Here's Nick Laird's BPR chart for gold---and it's graphs #4 and #5 that deserve most of your attention.
In silver, '3 or less' U.S. bank were net short 20,986 Comex futures contracts---and that's a big deterioration since the December BPR when they collectively held 13,639 Comex silver contracts net short.  I'd guess that's mostly JPMorgan selling into the latest rally that caused that drop.  By the way, Ted Butler says that JPM holds about 17,000 contracts of that January BPR short position all by itself.  It's my opinion that the other U.S. banks holding the remaining 4,000 short contracts are Citigroup and HSBC USA.
Also in silver, 12 non-U.S. banks were net short 13,478 Comex contracts in the January BPR.  Their collective short position back in the December report was 11,997 contracts, so they've added to their shorts positions as well, but only about 1,500 contracts.  It's my opinion that over 50% of that 13,478 contracts held short is held by Canada's Bank of Nova Scotia, so the positions of the other 11 non-U.S. banks are also immaterial.  Here's Nick's chart for silver.
In platinum, there was virtually no change between the December and January BPRs, both in the U.S. and non-U.S. banks.  The January report showed that '3 or less' U.S. banks were net short 11,037 Comex platinum contracts---and 13 non-U.S. banks were net short 1,871 contracts combined.  So, like gold, the positions held by the non-U.S. banks [equally divided up] are immaterial compared to the outrageous short positions held by the 3 U.S. banks.
In palladium, '3 or less' U.S. banks were short 9,726 Comex palladium contracts, which is a slight improvement from their collective short position in December's report, which was 10,815 contracts.
Also in palladium, 13 non-U.S. banks held 2,419 Comex short contracts between them on a net basis, which is also a slight improvement from the December BPR which showed they held 3,317 Comex contracts net short.  But the improvement is irrelevant, as their positions are also irrelevant compared to what's held by the 3 U.S. banks.  Here's Nick's chart.
As I say at the end of every Bank Participation Report analysis:  This precious metal price management scheme is 100% "Made in the U.S.A."---with a little help in silver from Canada's Bank of Nova Scotia.  The three U.S. banks are JPMorgan Chase, Citigroup---and HSBC USA, along with the collusive raptors.  But JPMorgan Chase is the capo di tutti capi.
A couple of other things from Nick for you before I head into the stories for today.
The first thing is the "scoop" that Nick gave me/us yesterday was not factual.  Nick said that China imported 15.4 tonnes of gold coins through Hong Kong in November.  It was, in fact, the other way around, as China exported 15.4 tonnes of gold coins through Hong Kong in November---the bulk of which, 10.4 tonnes, went to the U.S.A.
Nick apologizes for the error, but it does [as he says] raise an interesting question:  Who imported the 10.4 tonnes of gold coins from China into the U.S. in November?
The next item from Nick is the gold imports into China through Hong Kong in November.  The official number of 76.39 tonnes was leaked to the main stream media between Christmas and New Years, but it's now official on their website, so Nick updated his chart accordingly---and here it is below.


***

Selected news and views.....


Draghi: European Central Bank Ready for 'Decisive Action'

European Central Bank is ready to take "further decisive action" using "all available tools" to spur the eurozone's weak recovery, President Mario Draghi said Thursday.

Still, the ECB took no action at its monthly policy meeting, leaving its key interest rate unchanged at a record low of 0.25 percent. And Draghi declined to offer any more hints about what steps the bank might take in coming months.

The eurozone economy grew only 0.1 percent in the third quarter, and unemployment is high at 12.1 percent. Draghi repeated the bank's reassurance that it intends to keep rates at current or lower levels for an extended period of time.

Beyond that, he held the door open for more measures to boost the economy, without saying which.

Three King World News Blogs

1. David Stockman [#1]: "2014 is the Year of the End Game".  2. William Kaye: "Mind-Boggling Events in the Physical Gold Market".  3. David Stockman [#2]: "The United States is Being Destroyed".


Evy Hambro: BlackRock Says Gold Supply May Drop Due to Costs

Evy Hambro, portfolio manager at BlackRock Inc.'s World Mining Fund, talks about the outlook for gold and iron ore in 2014. He speaks with Manus Cranny on Bloomberg Television's "On the Move."
This 6:15 minute video clip, filed from London, was posted on the Bloomberg website yesterday sometime...and it's definitely worth watching.  My thanks go out to reader Ken Hurt for sending it along.

Dutch central bank refuses to disclose gold correspondence with other central banks

Gold researcher Koos Jansen, a citizen of the Netherlands, disclosed yesterday that the Netherlands Central Bank is refusing to make public its correspondence with other central banks, and particularly the U.S. Federal Reserve, involving monetary gold and particularly the monetary gold of the Netherlands supposedly vaulted with the Federal Reserve Bank of New York.
As GATA's secretary/treasurer long has observed, the true location and disposition of central bank gold reserves are secrets far more sensitive than the plans for construction, location and disposition of nuclear weapons.
Jansen encourages people around the world to make similar informational requests of their own central banks. Really, why shouldn't we all get on the international Money Power's list of dangerous subversives?
Jansen's commentary is headlined "Dutch Central Bank Tight-Lipped About Gold Policy" and it's posted at his Internet site, In Gold We Trust...and it's another gold-related news item I found in a GATA dispatch yesterday.

China Seen by Bloomberg Industries Boosting Bank Gold Reserves

China may have vaulted ahead of Italy and France last year to become the third-largest holder of gold, according to a Bloomberg Industries report.
Assets were probably about 2,710 metric tonnes, compared with the last reported holdings of 1,054 tonnes in April 2009, according to the report. Italy’s holdings are 2,451.8 tonnes, and France owns 2,435.4 tonnes, according to the World Gold Council data. The U.S. is the biggest holder with 8,133.5 tonnes.
China’s central bank probably added 622 tonnes last year after reserves increased 380 tons in 2012, according to the report by Kenneth W Hoffman, senior metals and mining analyst at Bloomberg Industries.
This short Bloomberg story, filed from New York, was posted on their website yesterday morning MST...and it's a must read in my opinion.  I thank Ulrike Marx for her final contribution to today's column.

Bron Suchecki: Coin shortages and rationing are in our future

Gold coin shortages and rationing are likely to continue even when there are adequate stocks of metal, the Perth Mint's Bron Suchecki writes yesterday, because the coin manufacturing industry lacks the capacity to meet any increased demand.

Bron's commentary is headlined "Coin Shortages and Rationing Are in Our Future" and it's posted at his Internet site,goldchat.blogspot.com...and it's another news item I found posted on the gata.org Internet site yesterday.

Nick Barisheff: Second Greatest Opportunity to Buy Gold

This is the speech that Nick Barisheff, president and CEO of Bullion Management Group Inc. gave at this year's 20th Empire Club of Canada "Investment Outlook 2014" Luncheon in Toronto on Thursday, January 9.  It, too, falls into the must read category.

***


¤ THE WRAP

We believe that the resolution of the disconnect between paper and physical gold will be a dramatic upside repricing of the real thing.  Most important is the steady migration of physical gold bars held in Western vaults to China and other parts of Asia, where they seem unlikely to be returned, other than for exorbitant ransom. - John Hathaway: 07 January 2014
Without doubt, JPMorgan et al were actively involved in capping precious metal prices again yesterday---and the clue comes directly from the last two Commitment of Traders Reports, along with the companion Bank Participation Report that was posted on the CFTC's website yesterday.
I wasn't happy to see this scenario unfold, but then again I shouldn't have been surprised, either.  As Ted Butler has been saying---and I totally agree---if there was ever a time that JPMorgan could have stood back and "let 'er rip", it would have been at the lows over Christmas.  Instead they chose to cap all the up days that we've had in the last couple of weeks or so, with yesterday being the latest case in point.
Where we go from here is the big unknown.  Ted pointed out that previous rallies ran out of gas [or got capped] just as hit their respective 50-day moving averages, as the charts below indicate.
One of two things is going to happen going forward, the first being an engineered sell-off at this point---a "failure" at the 50-day moving averages---and we've see that many times in the past.  There are several such occurrences on the above charts as a "for instance."  The other is that we blast higher from here with a vicious short-covering rally similar to the one that occurred back in August---and that event is also plain to see on the charts above.
The only question to be asked if scenario #2 develops, is when JPMorgan et aldecide to cap the rally.  If they decide not to, then the sky's the limit.  But if that's what their plan is, it escapes me as to why they wasted so much ammunition and potential profit by selling aggressively into this budding rally that started around Christmastime.
We'll see how the the precious metal prices are allowed to react next week---and that should tell us quite a bit about the plans "da boyz" have going forward.  And as I said further up in this column, I'll steal what I can about this from Ted's column when it comes out later today.
That's all I have for the day---and the week.  Enjoy what's left of your weekend---and I'll see you here on Tuesday.

And.....

Jesse's Crossroad Cafe.......


10 JANUARY 2014


Gold Daily and Silver Weekly Charts - Surprise, Surprise, Surprise



The jobs number was SO bad this morning that they had to skip the traditional metals raid, and the bad news bears got stuffed on a quick reversal.

There was intraday commentary regarding a rather large redemption of London Good Delivery Bars from the Sprott Physical Gold Trusthere.

Germany's gold, Comex gold, almost half the gold from the western ETFs, seems like quite a bit of gold bullion is making like Jimmy Hoffa, and disappearing these days.  Maybe we should start looking for Jimmy in China.

A fellow might start to think that there sure are a lot of meaningless coincidences going around this place.

Have a pleasant weekend.


Gata.....



Evidence of gold shortage grows, Kaye tells KWN

 Section: 
7:45p ET Saturday, January 11, 2014
Dear Friend of GATA and Gold:
Evidence grows, Hong Kong fund manager William Kaye tells King World News today, that gold is in increasingly short supply for the central banks that are trying to suppress its price:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.




Central bankers hate gold because it shows them up, Stockman says

 Section: 
10:15p ET Friday, January 10, 2014
Dear Friend of GATA and Gold:
Former U.S. budget director David Stockman, in the second part of his new interview with King World News, says gold is the great indicator of central bank irresponsibility and is much hated by central banks for that:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.




Gold suppression unlikely to persist beyond this summer, Kaye tells KWN

 Section: 
4:55p ET Friday, January 10, 2014
Dear Friend of GATA and Gold:
With China apparently acquiring more gold than the world is producing, the gold price probably cannot be held down more than another quarter or two, Hong Kong fund manager William Kaye today tells King World News:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.