http://www.caseyresearch.com/gsd/edition/koos-jansen-more-reliable-on-china-than-world-gold-council-sprott-says
Read more at http://www.maxkeiser.com/#t4dgK0SIvSL6xCQf.99
¤ YESTERDAY IN GOLD & SILVER
Once again the gold price got sold down during the morning trading session in the Far East on their Friday morning. The low of the day was in by shortly after 1 p.m. Hong Kong time---and from there, the price rallied a bit until shortly after the Comex open in New York. The gold price gave up five bucks between then and 12 o'clock noon, but from there it rallied rather strongly through the Comex close, hitting its high of the day at exactly 2:30 p.m. EST. At that point a willing seller appeared and put an end to the fun. From there the price chopped sideways, but rallied a hair into the close.
The CME Group recorded the low and high ticks at $1,315.90 and $1,328.80 in the April contract.
Gold closed at $1,3216.10 spot, up $3.10 from Thursday. Volume, net of February and March, was 131,000 contracts, which wasn't exactly light---and a bit more than a quarter of that came after 12 o'clock noon in New York.
The price pattern in silver was very similar to the one in gold. The only big difference was the price spike that came at the 1:30 p.m. Comex close---and JPMorgan et al dealt with that within a few minutes. Then the silver price got sold down even further at 2:30 p.m. along with gold. After that, the price didn't do too much.
The low and high were recorded as $21.575 and $21.975 in the March contract. Once again silver was prevented from breaking above the $22 spot price mark. Net volume was pretty light at only 27,500 contracts.
Here's the New York Spot Silver [Bid] chart on its own so you can see the 1:30 p.m. EST price spike more clearly.
There's been a lot of price/volume activity in gold and silver in the thinly-traded New York Access Market between the 1:30 p.m. Comex close and the 5:15 close of electronic trading, lately---and I'm not sure what to make of it.
Platinum and palladium traded pretty flat until about noon in London---and then they both rallied a bit into the Comex close. After that, their respective prices didn't do much. Here are the charts.
The dollar index closed at 80.28 on Thursday afternoon---and when trading opened on Friday morning in the Far East, the index began crawling higher, hitting its 80.41 high tick at 8 a.m. EST. From there the index had about a 20 basis point down/up move that ended shortly after 11 a.m.---and then faded a hair into the close. The index finished the Friday trading session at 80.27---which was basically unchanged from Thursday's close.
****
The CME's Daily Delivery Report was a quiet affair yesterday, as only 21 gold and zero silver contracts were posted for delivery within the Comex-approved depositories on Tuesday. The Issuers and Stoppers Report for Friday isn't worth linking.
Well, there was a deposit in GLD yesterday. This time an authorized participant added 86,750 troy ounces---and as of 9:34 p.m. yesterday evening, there were no reported changes in SLV. But when I checked the SLV website at 4:06 a.m. EST this morning, I noted that they had reported a new deposit. This time an authorized participant added 2,116,096 troy ounces of silver. That's about 96,000 ounces less than what was reported withdrawn on Thursday.
As I said in yesterday' column, Ted Butler's thoughts on these strange in/out moments is the only plausible explanation for why it's happening---and I'll cut and paste what he/I had to say about this in the next two paragraphs.
The only answer I have, is something that Ted Butler has been talking about for the last couple of years. He suspects that a big buyer has been purchasing shares by the truckload [read JPMorgan Chase] and has been continuously redeeming their shares for physical metal so they don't exceed SLV reporting requirements. In a nutshell, this means that JPM is using SLV as a vehicle to load up on the shares---and the physical metal at the same time---without having to report it to anyone. This is over and above what they show in their Comex-approved depository.
This may also have been what's happening in GLD since the start of they year as well.
I know for a fact that Ted will have more to say about this to his paying subscriber in his weekend review which will be posted on his website early this afternoon EST.
The U.S. Mint had a decent sales report yesterday. They sold 4,500 troy ounces of gold eagles---1,000 one-ounce 24K gold buffaloes---and 69,000 silver eagles. Month-to-date the mint has sold 24,000 ounces of gold eagles---11,500 one-ounce 24K gold buffaloes---and 2,500,000 silver eagles. Based on these sales, the silver/gold ratio works out to a hair over 70 to 1. That's a very big number---and shows the buying public is spending more of their investment dollars in silver bullion than gold gold bullion.
There wasn't much activity in either gold or silver at the Comex-approved depositories on Thursday. In gold, only 1,286 troy ounces were reported received---and in silver they reported shipping out 65,463 troy ounces.
As for the Commitment of Traders Report, I was hoping for the best, but expecting the worst---and the worst is what I got.
In silver, the Commercial net short position blew out by an astounding 10,436 contracts, or 52.2 million troy ounces. That's 26 days of world silver production. The Commercial net short position now sits at 164.3 million ounces.
The raptors [the Commercial traders other than the Big 8] were big sellers, but that should come as no surprise as they took profits. The unhappy part was the JPMorgan increased their short position by 4,500 contracts during the reporting week. Ted Butler says that they are now holding a 17,500 contract short-side corner in the Comex silver market.
It was just about as bad in gold, as the Commercial net short position increased by a chunky 19,097 contracts, or 1.91 million ounces. The Commercial net short position is back up to 9.18 million ounces.
The bad news there was that JPMorgan sold 10,000 contracts of their long position into the rally during the reporting week. Ted says that JPM's long-side corner in the Comex futures market in gold dropped from 6.8 million ounces to 5.8 million ounces.
It's obvious that if JPMorgan hadn't been the predominant seller in both gold and silver in the Comex futures market, both metals would be sporting price tags far higher than they are now.
Can we go higher in price from here? Absolutely. But this rally's days are numbered. I don't know whether it will happen next week, or next month---but unless JPMorgan et al lose control of the precious metal markets, the day is coming when they will instigate the inevitable HFT sell-off that will precipitate another engineered price decline---and they'll ring the cash register once more. You can bet on it.
I had so many charts in yesterday's column, that I forgot about posting one of them. It was the update for the gold reserves for January for The Central Bank of the Russian Federation. They added zero ounces during the reporting month, at least that's what the bank's official website reported. Here's Nick Laird's wonderful chart.
I don't have all that many stories for you today, so I hope you find the time to at least read the parts I've cut and paste from each one.
*****
Doug Noland: Currencies, Carry Trades, Fat Pigs and Pythons
Equities are right back to near record highs - yet something just doesn't feel right.
February 17 – Bloomberg: “Record new credit in China in January will help the economy maintain momentum while highlighting challenges for officials trying to limit the risk of financial turbulence from defaults and bad loans. Aggregate financing, the broadest measure of credit, was 2.58 trillion yuan ($425bn), the People’s Bank of China said… New local-currency lending was 1.32 trillion yuan, the highest level since 2010. Trust loans, under scrutiny because of default risks, were about half the level of a year earlier. The data add to better-than-forecast trade numbers, suggesting that China can limit the scale of any slowdown from last year’s 7.7% expansion in gross domestic product. At the same time, the figures contrast with a central bank call in mid-January for lenders to control surging loans and highlight diminishing economic returns from credit growth.”
A one-month $425 billion increase in system Credit (“social financing”) is something to mull over. For one, it was an all-time record for a month (in China as well as the solar system), surpassing last January’s record (January is traditionally a big lending month in China). Secondly, China’s January Credit growth was 35% above estimates. It placed year-on-year Credit growth at 17.5%, significantly above slowing GDP expansion. And it was said that January’s record Credit would have been even stronger had the major banks not pulled back from lending during the final week of the month.
Bill Gross has called China “the mystery meat of emerging-markets.” I would tend to view Chinese finance and their policy regime attempting to manage system Credit the proverbial mystery wrapped in an enigma.
Doug is the proverbial light in the wilderness when it comes to his understanding of the galactic-sized out-of-control credit bubble we now live in everywhere on Planet Earth. As I say every week at this time, his commentary posted over at theprudentbear.com Internet site is a must read---and this week's is no exception. I thank reader U.D. for sending it my way before I could dig it up on my own.
February 17 – Bloomberg: “Record new credit in China in January will help the economy maintain momentum while highlighting challenges for officials trying to limit the risk of financial turbulence from defaults and bad loans. Aggregate financing, the broadest measure of credit, was 2.58 trillion yuan ($425bn), the People’s Bank of China said… New local-currency lending was 1.32 trillion yuan, the highest level since 2010. Trust loans, under scrutiny because of default risks, were about half the level of a year earlier. The data add to better-than-forecast trade numbers, suggesting that China can limit the scale of any slowdown from last year’s 7.7% expansion in gross domestic product. At the same time, the figures contrast with a central bank call in mid-January for lenders to control surging loans and highlight diminishing economic returns from credit growth.”
A one-month $425 billion increase in system Credit (“social financing”) is something to mull over. For one, it was an all-time record for a month (in China as well as the solar system), surpassing last January’s record (January is traditionally a big lending month in China). Secondly, China’s January Credit growth was 35% above estimates. It placed year-on-year Credit growth at 17.5%, significantly above slowing GDP expansion. And it was said that January’s record Credit would have been even stronger had the major banks not pulled back from lending during the final week of the month.
Bill Gross has called China “the mystery meat of emerging-markets.” I would tend to view Chinese finance and their policy regime attempting to manage system Credit the proverbial mystery wrapped in an enigma.
Doug is the proverbial light in the wilderness when it comes to his understanding of the galactic-sized out-of-control credit bubble we now live in everywhere on Planet Earth. As I say every week at this time, his commentary posted over at theprudentbear.com Internet site is a must read---and this week's is no exception. I thank reader U.D. for sending it my way before I could dig it up on my own.
Fed knew about LIBOR rigging in 2008 but did nothing
The US Federal Reserve knew about Libor rigging three years before the financial scandal exploded but did not take any firm action, documents have revealed.
According to newly published transcripts of the central bank's meetings in the run-up to and immediate aftermath of the collapse of Lehman Brothers, a senior Fed official first flagged the issue at a policy meeting in April 2008.
William Dudley expressed fears that banks were being dishonest in the way they were calculating the London interbank offered rate -- a global benchmark interest rate used as the basis for trillions of pounds of loans and financial contracts.
"There is considerable evidence that the official Libor fixing understates the rates paid by many banks for funding," he said.
This news item was posted on the telegraph.co.uk Internet site early on Thursday evening GMT---and I found it embedded in a GATA release yesterday.
Three King World News Blogs
1. Andrew Huszar [#1]: "Man Who Executed QE1 For Fed Says Stocks May Collapse 30%". 2. Andrew Maguire: "China's Gold Buying "Enormous" Right Now". 3. Andrew Huszar [#2]: "Man Who Ran First QE Owns Gold...and Warns of Coming Inflation".
Despite record silver, gold output, PanAm Silver reports $445.8m loss
A non-cash after-tax impairment charge of $218.1 million on the Delores Mine and a non-cash $86 million deferred tax charge prompted by recent tax increases in Mexico resulted in a substantial fourth-quarter 2013 loss for Pan American Silver.
During a conference call Thursday, PanAm CFO Robert Doyle told analysts, “This impairment charge, as well as the net realizable value charge on Dolores stockpile I just mentioned, were triggered by our decision to reduce our long-term price assumptions used in our impairment testing to $22 for silver and $1,400 for gold…”
“The next large item impacting earnings is buried in the income tax recovery line and is a charge of $86 million related to the deferred taxes caused by recent Mexican tax changes, specifically the introduction of a 7.5% mining royalty and a change in the tax rate of 30%,” he added. “We have not adjusted this non-cash item out of our adjusted earnings for the period, consistent with our internal policy not to adjust for effects of changes and taxes.”
The management and board of Pan American Silver, like all large silver producers, are strong with the dark side of The Force. They would rather lose big, or go under, then ever confront the obvious shorts-side corner in Comex silver that JPMorgan holds. Their membership in The Silver Institute guarantees that they will never raise a word in protest on behalf of their shareholders---us. But, having said that, I've been a stockholder since PAAS was under $4 a share over a decade ago---and I have no intentions of selling. Sometimes you have to sleep with the enemy whether you want to or not---sigh.
Miner killed at South Africa's Anglo American Platinum
A miner affiliated to the National Union of Mineworkers (NUM) was attacked and killed at a mine belonging to South Africa's Anglo American Platinum, police and unionists said, the latest violent incident in the strike-hit sector.
The NUM said the attackers were members of the Association of Mineworkers and Construction Union (AMCU), but officials of the rival union were not immediately available for comment on Friday.
The miner was on his way to work on Thursday when he was attacked by four armed men who poured petrol on him and set him on fire, police spokesman Thulani Ngubane said.
The man identified two of his attackers as AMCU members before dying of his injuries on Friday, NUM spokesman Erick Gcilitshana told Reuters.
This Reuters news item, filed from Johannesburg, was posted on their Internet site in the wee hours of yesterday morning EST---and it's the first offering of the day from Manitoba reader Ulrike Marx.
Chinese group considers South Africa platinum bids amid strikes
China’s Long March Capital Ltd., which partners with Citic Group Corp., is considering buying South African platinum assets after their value was depressed by strikes, the company’s Managing Partner Clement Kwong said.
The company is now reviewing a decision to hold off on purchasing South African platinum assets because of the labor issues, Kwong said in a Feb. 19 interview in Johannesburg. Long March last year partnered with Citic unit Baiyin Non-Ferrous Metal Group Co. Ltd. and China-Africa Development Fund to complete their buy-out of Perth-based Gold One International Ltd. and indirectly acquired a stake in Westonaria, South Africa-based Sibanye Gold Ltd..
“If the industry survives and makes a profit then that would be a good signal to look at investing,” said Kwong, who founded Long March Capital with a partner in 2008. “This last round has repriced these assets down so I think it would be as cheap as it gets.”
This Bloomberg story from yesterday was picked up by themineweb.com Internet site---and I consider it a must read. It's another contribution to today's column from Ulrike Marx.
Gold price: Hedge funds add 30% to bullish bets
The gold price ended Friday with a third week in a row of gains after bullish positions held by large investors soared again.
By the close of regular trade on the Comex division of the New York Mercantile Exchange, gold futures for April delivery – the most active contract – hit $1,323.60 an ounce, up $6.70 from Thursday's close.
There appears to be a definite shift in sentiment this year after 2013's dismal performance with the smart money only now catching up with gold's almost 10% rise this year.
Long positions – bets that the price will go up – held by so-called managed money increased by 8% to 140,840 lots in the week to February 18 according to Commodity Futures Trading Commission data released after the close of business on Friday.
All of the above is true, of course, dear reader---but as you know from yesterday's COT Report, as the speculators come in on the long side, JPMorgan et al are betting against them all the way to the top of the rally. Then, when they have all the mice in the trap on the long side they think they can get, down we go. This short piece was posted on the mining.com Internet site yesterday---and it's courtesy of reader M.A.
Peter Boehringer: More evasions from the Bundesbank on Germany's gold in the U.S.
Peter Boehringer of the German Precious Metals Society, a leader of Germany's "Repatriate Our Gold" campaign, elaborates on the evasions in the Bundesbank's latest statement about its attempt to recover its gold from the Federal Reserve Bank of New York
There are two links embedded in this GATA release from yesterday---and both are worth your time. Boehringer's commentary, headlined "Bundesbank Attempts to Subdue Concerns on Gold Repatriation," is posted at the Swiss Internet site of gold researcher and GATA consultant Koos Jansen---ingoldwetrust.ch.
Koos Jansen more reliable on China than World Gold Council, Sprott says
Gold researcher and GATA consultant Koos Jansen's estimates of Chinese gold demand, posted at his Internet site,ingoldwetrust.ch, are far more accurate than the World Gold Council's, which miss a lot of gold going into China, Sprott Asset Management CEO Eric Sprott said yesterday. Sprott added that some investment bank recommendations against gold don't match what the banks are doing for their own accounts.
Sprott's comments, which are definitely worth listening to, come in the weekly gold market review at Sprott Money News, an 8-minute interview that was posted on the sprottmoney.comInternet site yesterday. I thank Chris Powell for wordsmithing "all of the above".
¤ THE WRAP
The most unusual feature to the dirty price fixing on the COMEX is that JPMorgan has become the poster child for metals manipulation. That’s because the bank’s positions have been so large as to be easily tracked by government public data. The worst thing imaginable to anyone involved in major market manipulations, as JPMorgan is in silver and gold, is to be publicly identified as the manipulator. Yet that is precisely the case with JPMorgan and it is becoming more visible daily. - Silver analyst Ted Butler: 19 February 2014
Today's pop 'blast from the past' from 1981 needs no introduction---neither the tune nor the band. It was their biggest U.S. Billboard Hot 100 hit---and rightly so. Here's Steve Perry doing the honours while he was still with the group---clickhere. I would be remiss if I didn't include the Arnel Pineda version---and the link to that is here.
Today's classical 'blast from the past' is an old chestnut by Peter I. Tchaikovsky. Of all the waltzes he ever composed, this is my absolute favourite. Here's a 7:19 minute CBC video clip of the the Vancouver Symphony Orchestra playing up a storm---with maestro Bramwell Tovey conducting. Put it on 'Full Screen' and turn up the sound. The link is here.
It was another rather different day in the precious metals market again yesterday, as the price action in the thinly-traded electronic market was on the strange side once again---especially for a Friday. And as I said yesterday, I'm not sure what to make of it.
I was less than happy with the numbers in yesterday's Commitment of Traders Report---as it's a clear indication that JPMorgan et al have no intentions, at least for the moment, of releasing their iron grip on this market. The big increase in their short-side corner in the Comex silver market is an "up yours" signal to all silver miners and investors---and sooner or later it means another engineered price decline is in the cards. We just don't know when that day will arrive.
Of course, JPMorgan may get over run, but in the meantime they appear to be accumulating physical metal---along with shares in SLV---at a prodigious rate. They're doing it for a reason that is not know to us, at least not yet. One has to make the assumption that, someday, this will all be bullish for the price. Unfortunately we just don't know what day that is. But one should also assume that if they're doing it---along with HSBC and Scotiabank in their Comex-approved depositories---we should be doing it as well. I certainly am.
As of the end of trading yesterday, the HUI is up 24% on the year---and Nick Laird's Silver Sentiment Index is in the green to the tune of over 21%. I would expect that before this year is out, these percentage gains will be substantially higher than they are now, although the road to those increases will certainly be strewn with more than the odd JPMorgan-designed pothole.
I look forward to the Sunday evening open in New York with the usual amount of interest.
In closing, it might be worth your while to jump back into, or increase your exposure to the precious metals once again. Your best bets for that are Casey Research's monthly BIG GOLD newsletter---and Casey Research's flagship publication---Casey International Speculator. If you go for Casey International Speculator, it includes a subscription to BIG GOLD at no extra charge. It costs nothing to check them out---and Casey Research's 90-day money back guarantee applies to both.
That's all I have for today---and the week.
Enjoy what's left of it---and I'll see you here on Tuesday.
Additional items.....
Koos Jansen......
Bundesbank Attempts to Subdue Concerns Gold Repatriation
Yesterday I published an interview by German newspaper Handelsblatt with Carl-Ludwig Thiele, Member of the Executive Board of the Deutsche Bundesbank, that was published in english on the website of the Bundesbank regarding the progress of the German gold repatriation process. This publication was clearly an attempt to convince the international audience that there were absolutely no problems in the repatriation process, apart from a slow startup. The BuBa claims to have audited all their gold in the US, and the shipments to Germany, the refining that took place in Europe and the bookkeeping is all according to plan…
Peter Boehringer who founded the German “Repatriate our Gold” initiative wrote me his comments on this interview and gave me permission to publish it:
Handelsblatt has not asked the crucial questions and also gave Mr Thiele the chance to easily NOT answer the few relevant questions and to repeat the semi-truths he and his predecessors have been repeating for many years now. I concur with the important questions you have formulated – and of course we can think of many more for Bundesbank.
What is also interesting is the following:
a) This interview first showed up ONLY in the PRINT edition Handelsblatt (Feb 19, 2014). Due to it not being online for several days and due to its inadequacy / irrelevance / missing news in it I chose to ignore it this time.
b) A few small news-agencies published EXCERPTS on their online pages – albeit very brief ones.
c) It was BuBa ITSELF who now has posted online a full English translation of the lengthy interview on their very own website (which is unusual and clearly a reaction to Koos Jansen´s translation of my latest BuBa-gold blog into English http://www.ingoldwetrust.ch/bundesbank-changes-gold-repatriation-schedule ). They HAD to react in English…
d) This clearly shows that the interview message “Everything is fine with our gold – nothing to worry about, nothing to see here – please disperse!” [as in this scene from “The Naked Gun” http://www.youtube.com/watch?v=5NNOrp_83RU ] was ESPECIALLY intended for a (naรฏve) INTERNATIONAL audience.
e) BuBa knows exactly that -in Germany- hardly any (Internet) reader still believes the official BuBa version re its gold. BuBa therefore by now is far less concerned about the German online audience than about their INTERNATIONAL reputation which has a lot to do with its INTERNATIONAL credibility re the handling of the German gold (repatriation)! Hence the ENGLISH online version.
f) Additional comments from my side: In his interview, Mr Thiele as always gives NO SHRED of evidence re his statements / allegations: This time he mentions an “audit team”, his own “observations on site in the Fed vault”, “an external auditor [present ‘some of the time’ of ‘a’ audit]”, “new audit rights of BuBa´s internal audit department [no details given]” etc etc. All these statements would be SO EASY to prove. But no single audit report is being published, we still do not know any single bar number not even of now-melted-and-recast bars, we do not even know ANY single NAME of an internal or external auditor. No one obviously is willing to give a signature under any of Mr Thiele´s unproven claims! No single photo or video footage of any US bars now in Germany as claimed by BuBa.
=> This is absurd “business as usual” from BuBa´s side: we have been experiencing this type of reaction & “non-transparency” for many years now! Clearly arrogant and inadequate and (in my opinion based on applicable German auditing laws) ILLEGAL behavior of BuBa´s! We need a full disclosure of all bar lists & transactions of gold material from/to BuBa vaults going back to at least 1999. And a valid signature by a non-anonymous reputed external auditor under a physical audit report re all of BuBa´s gold material abroad as well as in Frankfurt. In addition to a valid confirmation that no material is currently being leased out by either BuBa itself or by its “storing partner banks”.
=> This is absurd “business as usual” from BuBa´s side: we have been experiencing this type of reaction & “non-transparency” for many years now! Clearly arrogant and inadequate and (in my opinion based on applicable German auditing laws) ILLEGAL behavior of BuBa´s! We need a full disclosure of all bar lists & transactions of gold material from/to BuBa vaults going back to at least 1999. And a valid signature by a non-anonymous reputed external auditor under a physical audit report re all of BuBa´s gold material abroad as well as in Frankfurt. In addition to a valid confirmation that no material is currently being leased out by either BuBa itself or by its “storing partner banks”.
g) Finally it is important to point out a very brief response of Mr Thiele´s in his interview: “We now consider ourselves bound to the new gold storage plan [from 2013 – repatriation of 700 tons by end 2020].”=> This automatically and now officially confirms (what we had said from the very beginning): BuBa has now given up the short-term target [from first plan from 2012] of repatriating but a mere 150 tons from NY by 2015. [of course BuBa could still deliver on this ridiculously small promise – but with this interview, Thiele now has officially abandoned the short-term repatriation plan in favor of another one he (or his successor) will not have to deliver upon within the next 6.5 years…]
h) We also could and should ask ourselves whether Thiele’s statement “I saw myself how our money is stored there in the vault” was a Freudian slip? Or whether somebody at BuBa –after decades of denying– finally has come to the goldbugs´ ultimate conclusion “gold = money“?!
Peter Boehringer
Weekly Chinese Gold Demand Transcends Global Mining Production, Again
All over the media we have seen extreme gold shopping sprees around new year and at the Lunar year in China. This resulted in an all time Chinese gold demand record in January – which accounted for 246 tons. In the screen shot below the second number from the right (green - ๆฌๅนด็ดฏ่ฎกไบคๅฒ้) is the amount of gold withdrawn form the SGE vaults in January in Kg.
Below a video from Chinese state TV network CCTV on the gold buying spree around the Lunar Year. Although I didn’t manage to produce subtitles (working on it!), I think the images speak for themselves.
Who thought this gold rush would come down anytime soon is wrong. It seems the Chinese are in a state to buy all the physical gold that can be supplied. The beauty of internet is that I have a lot of sources in the mainland, and Chinese that live in other parts of the world, that sent me regular updates on what’s happening in Chinese jewelry stores, in the paper gold market, on the SGE and in the Chinese media if they happen to stumble on something newsworthy. Yi Zhang lives in San Fransisco and sent me an email on February 15, 2014:
Hi Koos, these two photos were taken yesterday by my uncle in a gold shop in Beijing. “People are buying gold like groceries” – he told me in Chinese.Regards,Yi
Beijing jewelry store 14-02-2014
Beijing jewelry store 14-02-2014
I the first have of February the Chinese have been very aggressive buyers. Can it be these people are fully aware of the dangers of credit bubbles and gold’s function as a store of value and a protection against potential implosions?
http://jessescrossroadscafe.blogspot.com/2014/02/gold-daily-and-silver-weekly-charts_21.html
21 FEBRUARY 2014
Gold Daily and Silver Weekly Charts - Coiling Into Option Expiration
Yes it is that time again as next Tuesday is another option expiration for the precious metals on the Comex. See the calendar chart below.
The Comex warehouses continued to shuffle their chips and cards, with no meaningful movement of gold bullion in or out yesterday.
Gold is obviously coiling in a symmetrical triangle at key resistance, within a large inverse H&S formation, and an even larger 'W formation.'
I do not expect the Comex situation to resolve itself this month, with continuing low inventories of deliverable gold and antics with price and delivery being played until there is some shock from outside the pits, some failure to deliver that cannot be covered up or brushed aside.
It *could* break right at the Comex, but I suspect that the price setting mechanisms there are sufficiently divorced from the real market so that Comex will be collateral damage to some much larger event.
It takes patience in times like these, since things unfold slowly when you watch them every day. But when the time is come, it seems as though it happens all in a rush, and the inevitability of it all appears to have been written large on the wall.
That is how it was with the last financial crisis, and that is how it will be with the next one which is probably no more than two years away. While the policies and fundamentals remain the same, it will be foolish to expect other outcomes.
Have a pleasant weekend. See you Sunday evening.
ALASDAIR MACLEOD: GOLD CARTEL CAN NO LONGER MANAGE THEIR RETREAT!
Podcast: Play in new window | Download
- True Chinese gold demand in 2013 was a minimum of 2,800 tons- falsely reported by the bullion bank apologists at under 2,000 tons
- Why a sudden shortage of physical gold in March-April of 2013 forced essentially a gold default by 2 Dutch banks
- Bullion & Western Central banks are out of gold & near the end of the line- Macleod explains why the cartel can no longer manage their retreat: We’ve got a situation where the central bankers don’t have any idea how to get out of the situation they’ve created for themselves
- Gold & silver close at their highs for the week- setting up a big rally next week?
Read more at http://www.maxkeiser.com/#t4dgK0SIvSL6xCQf.99
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