10/5/14.....
Safe haven plays getting hammered
Note bitcoin topped out at 666 this summer... as low as 279 today earlier at Bistamp...
http://www.businessinsider.com/bitcoin-has-been-getting-obliterated-2014-10
GATA ......
Safe haven plays getting hammered
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif) |
Note bitcoin topped out at 666 this summer... as low as 279 today earlier at Bistamp...
http://www.businessinsider.com/bitcoin-has-been-getting-obliterated-2014-10
Bitcoin Has Been Getting Obliterated
Remember Bitcoin?
There's not much to say about it, except that it's doing TERRIBLY.
Here's a chart going back to earlier this summer. Charts don't get uglier than this.
GATA ......
Koos Jansen: 39 tonnes of gold left New York Fed in July and August
Submitted by cpowell on Fri, 2014-10-03 14:29. Section: Daily Dispatches
10:30a ET Friday, October 3, 2014
Dear Friend of GATA and gold:
Gold researcher and GATA consultant Koos Jansen reports today that 24 tonnes of gold have been listed as withdrawn from the Federal Reserve Bank of New York in July and another 15 tonnes in August, presumably part of the German Bundesbank's repatriation program. Jansen's commentary is posted at Bullion Star here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Gold Anti-Trust Action Committee Inc.
Scotiabank confirms Jansen: China gold demand far greater than World Gold Council says
Submitted by cpowell on Sat, 2014-10-04 13:52. Section: Daily Dispatches
9:53a ET Saturday, October 4, 2014
Dear Friend of GATA and gold:
Gold researcher and GATA consultant Koos Jansen details today how a gold market analyst for Scotiabank has confirmed Jansen's interpretation of Chinese gold demand and the workings of the Shanghai Gold Exchange, concluding that Chinese demand is far greater than reported by the World Gold Council, and, crucially, that the People's Bank of China obtains its gold through other means, not through the exchange, signifying that Chinese demand is higher still.
Jansen's commentary is headlined "Confirmation PBOC Doesn't Purchase Gold Through SGE" and it's posted at Bullion Star here:
The Scotiabank report is here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Gold Anti-Trust Action Committee Inc.
Metals vastly oversold from naked shorting, Sprott contends
Submitted by cpowell on Fri, 2014-10-03 23:47. Section: Daily Dispatches
7:50p ET Friday, October 3, 2014
Dear Friend of GATA and Gold:
Sprott Asset Management CEO Eric Sprott tells Sprott Money News' Geoff Rutherford today that economic data remains miserable, that the Ebola outbreak is far more serious than generally understood, and that the monetary metals are vastly oversold from naked shorting. The interview is 12 minutes long and can be heard at the Sprott Money Internet site here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Gold Anti-Trust Action Committee Inc.
TF Metals Report: Deflation pervades markets until Fed renews QE
Submitted by cpowell on Fri, 2014-10-03 14:35. Section: Daily Dispatches
10:35a ET Friday, October 3, 2014
Dear Friend of GATA and Gold:
The TF Metals Report's Turd Ferguson today publishes price charts showing deflation everywhere, apparently in anticipation of the end of bond monetization in the United States. He predicts that everything will keep crashing until the Federal Reserve undertakes a new program of "quantitative easing." Ferguson's analysis is posted at the TF Metals Report here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Gold Anti-Trust Action Committee Inc.
High-speed trader accused of commodity market 'spoofing'
Submitted by cpowell on Thu, 2014-10-02 21:52. Section: Daily Dispatches
By Andrew Harris and Matthew Leising
Bloomberg News
Thursday, October 2, 2014
Bloomberg News
Thursday, October 2, 2014
A high-frequency trader has been indicted for "spoofing," the placing and immediate canceling of orders to manipulate commodities markets, in what the U.S. Justice Department says is the first criminal case of its kind.
Michael Coscia, 52, of Rumson, New Jersey, the principal of Panther Energy Trading LLC, was indicted by a federal grand jury in Chicago and charged with six counts of commodities fraud and six of spoofing. He's accused of illegally reaping nearly $1.6 million as a result of orders placed through CME Group Inc. and European futures markets in 2011.
Coscia last year settled civil case accusations by the U.S Commodity Futures Trading Commission by paying a $2.8 million fine and consenting to a one-year trading ban.
The anti-spoofing statute is part of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act. Some trading firms have found the definition too vague and have pressed CME to be more specific, two people familiar with the matter said last month.
Coscia's indictment was returned by the grand jury yesterday and announced today by the office of U.S. Attorney Zachary Fardon in Chicago.
Each spoofing count carries a maximum sentence of 10 years in prison and a fine of as much as $1 million. Each commodities-fraud charge is punishable by as long as 25 years in prison and a $250,000 fine.
No arraignment date has been set, according to Fardon. Coscia's attorney, Richard Reibman, didn't immediately reply to a voice-mail message seeking comment on the charges.
It's against the law to spoof, or post requests to buy or sell futures, stocks, and other products in financial markets without intending to follow through on those orders.
Spoofers try to make money by feigning interest in trading at a certain price, creating the illusion of demand in an attempt to get other traders to move prices in a way they can profit from. The spoofer cancels the original trade before it's executed, and buys or sells at the new price.
The CFTC yesterday won a consent order from a federal court requiring another trader, Eric Moncada, to pay $1.56 million to settle allegations that he entered noncompetitive trades and engaged in spoofing in wheat futures markets. Moncada, who was barred from trading any wheat contract for five years, neither admitted nor denied wrongdoing, according to the order.
CME Group, operator of the world's largest futures market, instituted a rule against the practice on Sept. 15.
"No person shall enter or cause to be entered an order with the intent, at the time of order entry, to cancel the order before execution or to modify the order to avoid execution" in an effort to prohibit "the type of activity identified by the Commission as 'spoofing,'" CME told the CFTC in a letter.
The case is U.S. v. Coscia, 14-cr-551, U.S. District Court, Northern District of Illinois (Chicago).
Asian demand for gold blunts West's price suppression, Kaye tells KWN
Submitted by cpowell on Thu, 2014-10-02 12:42. Section: Daily Dispatches
8:40a ET Thursday, October 2, 2014
Dear Friend of GATA and Gold:
Hong Kong trader William Kaye today tells King World News today that demand for gold is high in Asia, contrary to some reports in the West, and this offtake will blunt the paper trading of the gold price suppression policy in the West:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Gold Anti-Trust Action Committee Inc.
BIS is main mechanism for manipulating the gold market, Rickards says
Submitted by cpowell on Tue, 2014-09-30 18:20. Section: Daily Dispatches
2:15p ET Tuesday, September 30, 2014
Dear Friend of GATA and Gold:
Interviewed by the Turkish financial journalist Erkan Oz at the Forex World conference in Istanbul last week, fund manager and author James G. Rickards remarked that central banks use the Bank for International Settlements for manipulating the gold market.
As quoted by Oz, Rickards said the BIS is "the primary intermedia for manipulating the gold market. That is not a mystery. ... This BIS is manipulating the gold market. They are the intermedia between the central banks and commercial banks and other central banks. They have been doing that."
The interview is posted at Oz's Internet site, Financial Flood, here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Gold Anti-Trust Action Committee Inc.
Koos Jansen: China aims to exceed U.S. in gold reserves
Submitted by cpowell on Tue, 2014-09-30 17:37. Section: Daily Dispatches
As you may recall, silver is more volatile than gold.
That means if the two metals are moving in the same general directional trend, as they are often wont to do, then silver will be moving faster and further in that direction than gold. Silver has a higher beta.
So when one considers the gold/silver ratio, one is perceiving the 'spread' between the two. In general, at the extremes, the spread between gold and silver will widen and narrow markedly as compared to itself over time.
We are at such an extreme now. Sometimes these merely signal short term tops and bottoms. And sometimes they signal trend changes.
In addition to the volatility differences, there are a few others.
Silver has a greater industrial usage than gold. So it corresponds more to the general trend in base metals. Further, gold is perceived as more of a 'safe haven' than silver. Gold is more purely 'money' than silver. Silver is also more often a byproduct of base metal extraction.
All other things being equal, gold will be a more reliable store of value in times of crisis, but silver, once the crisis is past, will begin to overtake gold and recover more quickly. Holding silver with leverage, given its already volatile nature, can be a real sleigh ride. I don't use it for investment purposes, merely for a quick flip, lightly and only on occasion.
So there are a number of variables to consider in this ratio. In the past I used to engage in fairly elaborate multivariate regression analysis of these things. I am doing less of this technical price analysis now that the markets have become as they are. Analysis without including Asian supply and demand fundamentals has become somewhat effete.
As I have remarked colloquially the other day, there is some 'weird shit' going on in the silver market. I will probably have more to say about this in the days to come. I am sifting through rumours and data. I may pass a few along, just because they are so delightful, in the manner of a novel.
And I cannot say enough what a poor measure of the demand and value of metals is to be found on the Comex. If you really consider now what it is doing and how it is doing it in the quest for 'price discovery,' it is about as relevant to the value of the precious metals as a private game of Liar's Poker is to the value of the US dollar.
But while people believe, it does have power. It is an unfortunate country whose prices are set in a poorly regulated casino.
I firmly believe that the US markets have given way to a shockingly pervasive control fraud once again, which can be called The Big Skim. And there will be consequences over time.
These schemes always seem to fail. In their late stages their is more use of fear than fraud, until they become almost all stick and no carrot, and then they fail. And their failure has few fathers, but an abundance of orphans.
1:37p ET Tuesday, September 30, 2014
Dear Friend of GATA and Gold:
The president of the China Gold Association, gold researcher and GATA consultant Koos Jansen discloses today, argues that China should accumulate gold reserves greater than those of the United States because gold is a strategic asset, money without counterparty risk.
The association's president, Song Xin, adds that a "gold bank" should be established by China "to break the barrier between the commodity and monetary world. It can further help us acquire reserves and give us more say and control in the gold market."
Jansen's report is headlined "China Aims for Official Gold Reserves at 8,500 Tonnes" and it's posted at Bullion Star here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Gold Anti-Trust Action Committee Inc.
Ed Steer's Weekend Report .....
http://www.caseyresearch.com/gsd/edition/keith-goode-the-struggle-between-east-and-west-for-control-of-the-gold-price
¤ YESTERDAY IN GOLD & SILVER
The gold price got sold down a few dollars as soon as trading began in the Far East on their Friday---and another five bucks or so got carved off the price shortly before the London open. From there it traded unchanged until the release of the job numbers at 8:30 a.m. EDT in New York. The HFT boyz used the opportunity to put the boots to gold once again---and the low tick came around 12:45 p.m. EDT. After that, the price didn't do a lot.
The high and low ticks were reported by the CME Group as $1,215.70 and $1,190.30 in the December contract.
Gold finished the Friday session at $11,90.70 spot, down $23.60 from Thursday's close. Net volume was 174,000 contracts.
Here's the 10-minute gold chart going all the way back before the Comex opened at 6 p.m. EDT in New York on Thursday evening---and you can see that the two small declines before the London open didn't have much volume associated with them---and JPMorgan et al saved the heavy lumber for the Comex trading session, as volume exploded when their HFT boyz worked their magic starting at 8:30 a.m. EDT. Don't forget to add two hours to the Mountain Daylight Times shown on this chart.
It was more or less the same price pattern in silver, except the low tick came at 10:30 a.m. in New York---and the subsequent rally got capped around noon, and then sold down a bit. Silver traded flat from the 1:30 p.m. close of Comex trading into the 5:15 p.m. electronic close.
The high and low prices were reported as $17.155 and $16.64 in the December contract.
Silver finished the trading day yesterday at $16.855 spot, down 24 cents. Net volume was 45,000 contracts.
The pounding of platinum continued again yesterday, as the HFT boyz took two 20 buck slices out of the salami---once in early morning trading in the Far East---and again starting at, or just before, the London a.m. gold fix. The beating stopped around 11 a.m. EDT---and the metal traded flat into the close, finishing down another 41 bucks. Platinum has never been this oversold---ever.
It was similar for palladium, as da boyz peeled another 12 bucks off the price---and it finished off its low by around five dollars.
You'll note that the HFT boyz only went after gold and silver at the 8:30 a.m. EDT job numbers report. Neither platinum or palladium even twitched during that time.
Of course it's almost superfluous to point out that all four precious metals set new lows for this move down.
The dollar index closed late on Thursday afternoon at 85.61---and rallied quietly starting almost immediately after the 6 p.m. EDT open---and was at the 86.00 level when the jobs numbers released. The NASA space launch in the index that occurred at that point took the dollar to its 86.75 high shortly before 11 a.m. EDT---and it gave up 10 points of its gain by the close. The index finished that up 103.4 basis points---and closed at 86.65.
****
The CME Daily Delivery Report showed that zero gold and 13 silver contracts were posted for delivery within the Comex-approved depositories on Tuesday.
The CME Preliminary Report for the Friday trading session showed that 327 contracts disappeared from the October delivery month, leaving 1,913 contracts still open. The silver contracts still open in October rose by 78---and the contracts open now sits at 291.
There were no reported changes in GLD yesterday---and as of 6:24 p.m. EDT, there were no reported changes in SLV.
There was no sales report from the U.S. Mint.
Over at the Comex-approved depositories on Thursday, they reported that 16,075 troy ounces of gold were received---and 22,364 troy ounces were shipped out. The link to that activity is here.
There was much more activity in silver, of course, as they received 899,995 troy ounces---and 371,102 ounces were shipped out the door. Most of the activity was at Brink's, Inc. and Canada's Scotiabank. The link to that action is here.
The Commitment of Traders Report, for positions held at the close of Comex trading on Tuesday, was not quite what I was hoping to see---and I'm wondering out loud if all the data from the big down day on Tuesday made it into this report, which was something I mentioned as a possibility in my Wednesday column. Anyway, the numbers are what they are.
In silver, the Commercial net short position declined by only 1,306 contracts---and the new Commercial net short position now stands at 77.3 million troy ounces.
Under the hood in the Disaggregated COT Report, the Managed Money category increased their short position by 3,924 contracts, which is understandable considering the price action during the reporting period. But the non-technical traders on the long side of the Managed Money category actually increased their long position by an impressive 2,458 contracts. Almost all the selling came out of the Nonreportable/small trader category.
The Managed Money on the short side is now at a new record---and it's a good bet that, as a group, they don't hold a single solitary Comex long position in silver between them. So the question begs to be asked---who are the non-technical fund traders in the Managed Money category that are quietly adding to their positions on the long side---and why are they doing it and what do they know that we don't?
Ted Butler said the it appears that JPMorgan decreased their short position by around 500 contracts during the reporting week---and that brings their short-side corner in the Comex silver market down to 11,000 contracts, or 55 million troy ounces. That amount represents about 70 percent of the total Commercial net short position.
In gold, the Commercial net short position only declined by 3,590 Comex contracts, or 359,000 troy ounces. The Commercial net short position is now down to 6.07 million troy ounces.
The shorts in the Managed Money category only added 43 contracts to their combined short positions---and the non-technical traders in that category added another 837 contracts to their huge long position. As in silver, all the selling came from the Nonreportable/small trader category---and the Commercial traders were buying everything they were selling.
Ted said that JPMorgan reduced their long-side corner in the Comex gold market by 2,000 contracts during the report week, and they're now down to 23,000 contracts, or 2.3 million troy ounces.
There was a big improvement in copper as well, as the Managed Money traders added another 9,324 Comex contracts to their collective short positions, while the non-technical traders in the Managed Money category added a small amount to their huge long position.
Platinum and palladium improved as well, but we won't see the full effect of what happened in those two precious metals until next Friday's COT Report, as most of the engineered price decline this week didn't start until Tuesday---and has continued for the last four trading days---and it's a good bet [looking at yesterday's COT Report] that not all the trading data from Tuesday for platinum and palladium made it into Friday's report, either.
The big revelation for me from this COT Report was the fact that monster long positions in all four precious metals, plus copper, are being held by these unblinking non-technical funds in the Managed Money category that have been increasing their long position regardless of whether prices are rising or falling. Opposite them in the Manged Money category are short positions held by the technical funds, who will run for cover like scared rabbits on the next rally.
If the Managed Money non-technical funds longs---and the traders that are massively long in the Commercial category decide to put their hands in their pockets on the next rally, how high will the Managed Money shorts have to bid the price in order to get the long holders to sell so they can cover their short positions?
The last two times this year, the Commercial long holder have let the short-side holders in the Managed Money category off easily. Will they do so this time???
The answer to that question is all that matters---and how high we go in price and how fast we get there will be 100 percent determined by how the long holders react when the short holders rush to cover. That applies to copper and crude oil as well---plus the opposite in the dollar index, where the technical funds are massively long.
And, without doubt, the positions held by all parties, short or long, has become even more extreme since the cut-off on Tuesday.
So we wait.
Here's a chart Nick Laird sent our way yesterday. It's the live spot gold price going back five years---and with the spot price close of $1,191.30 on Friday, JPMorgan et al have set a triple bottom. But since they're capable of printing any chart pattern they want, you have to ask yourself if this really means anything.
Gold , Silver , PM . Commodity related news and views ......
JPMorgan’s Commodities Sale to Mercuria Said to Shrink
Mercuria Energy Group Ltd.’s six-month-old agreement to buy JPMorgan Chase & Co.’s physical commodities business for $3.5 billion was revised to cover only $800 million of assets, according to people familiar with the change.
JPMorgan plans to sell the rest of the business in separate transactions, said the people, who asked not to be identified because the final deal’s terms haven’t been made public. Some separate sales have already been agreed, one person said. The Wall Street Journal reported on the changes earlier today.
Trading houses such as Mercuria are filling the void as banks from JPMorgan and Barclays Plc to Deutsche Bank AG and Morgan Stanley withdraw from or scale back physical commodity operations amid increased regulatory scrutiny of lenders owning, storing and trading raw materials. Founded in 2004 by former Goldman Sachs Group Inc. traders Marco Dunand and Daniel Jaeggi, Mercuria has grown to become the world’s fourth-largest independent commodity trader with 2013 revenue of $112 billion.
Among the assets not being purchased by Mercuria include a crude oil supply agreement to a refinery in St. Paul, Minnesota, the refinery’s owner, Northern Tier Energy LP, said in a regulatory filing last month.
Keith Goode: The Struggle between East and West for Control of the Gold Price
This market commentary comes from Australia---and we don't hear much from the land "down under"---and this 12-page [PDF] report is certainly worth your time.
So top up your coffee, or blow the froth off a cold one---and have at it.
It was posted on the eagleres.com.au Internet site yesterday---and my thanks go out to Australian reader Wesley Legrand for bringing it to my attention---and now to yours.
*****
Jesse Cafe Americain....
Gold Silver Ratio and Some Thoughts On Markets
 |
| Fear Us! |
That means if the two metals are moving in the same general directional trend, as they are often wont to do, then silver will be moving faster and further in that direction than gold. Silver has a higher beta.
So when one considers the gold/silver ratio, one is perceiving the 'spread' between the two. In general, at the extremes, the spread between gold and silver will widen and narrow markedly as compared to itself over time.
We are at such an extreme now. Sometimes these merely signal short term tops and bottoms. And sometimes they signal trend changes.
In addition to the volatility differences, there are a few others.
Silver has a greater industrial usage than gold. So it corresponds more to the general trend in base metals. Further, gold is perceived as more of a 'safe haven' than silver. Gold is more purely 'money' than silver. Silver is also more often a byproduct of base metal extraction.
All other things being equal, gold will be a more reliable store of value in times of crisis, but silver, once the crisis is past, will begin to overtake gold and recover more quickly. Holding silver with leverage, given its already volatile nature, can be a real sleigh ride. I don't use it for investment purposes, merely for a quick flip, lightly and only on occasion.
So there are a number of variables to consider in this ratio. In the past I used to engage in fairly elaborate multivariate regression analysis of these things. I am doing less of this technical price analysis now that the markets have become as they are. Analysis without including Asian supply and demand fundamentals has become somewhat effete.
As I have remarked colloquially the other day, there is some 'weird shit' going on in the silver market. I will probably have more to say about this in the days to come. I am sifting through rumours and data. I may pass a few along, just because they are so delightful, in the manner of a novel.
And I cannot say enough what a poor measure of the demand and value of metals is to be found on the Comex. If you really consider now what it is doing and how it is doing it in the quest for 'price discovery,' it is about as relevant to the value of the precious metals as a private game of Liar's Poker is to the value of the US dollar.
But while people believe, it does have power. It is an unfortunate country whose prices are set in a poorly regulated casino.
I firmly believe that the US markets have given way to a shockingly pervasive control fraud once again, which can be called The Big Skim. And there will be consequences over time.
These schemes always seem to fail. In their late stages their is more use of fear than fraud, until they become almost all stick and no carrot, and then they fail. And their failure has few fathers, but an abundance of orphans.
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