http://silverdoctors.com/20-year-metals-trader-with-morgan-stanley-every-metals-transfer-request-from-major-broker-is-being-rejected-multiple-times/
typical NFP Friday tricks !
http://www.caseyresearch.com/gsd/edition/bloomberg-gold-traders-most-bullish-since-bear-market-began
20 YEAR METALS TRADER WITH MORGAN STANLEY: EVERY METALS TRANSFER REQUEST FROM MAJOR BROKER IS BEING REJECTED MULTIPLE TIMES!
I have been a broker for 20 years. Recently the major broker dealer I work for asked me and my clients to leave due to too high of a concentration in physical metals.
From Steve Quayle:
I have been a broker for 20 years. Recently the major broker dealer I work for asked me and my clients to leave due to too high of a concentration in physical metals. After 4 months of trying to find a new home for my business, and being denied by every major broker dealer in the US, I had no choice but to become an RIA.
After three months of complete BS getting my RIA approved I am now in the process of moving my clients and metals to the new custodian.
Here is where things get interesting. Every transfer is being rejected multiple times for the any reason the old major broker dealer can come up with.
After three months of complete BS getting my RIA approved I am now in the process of moving my clients and metals to the new custodian.
Here is where things get interesting. Every transfer is being rejected multiple times for the any reason the old major broker dealer can come up with.
More interesting is all of the metals which have variable weights like 1,000 Silver, 100 oz gold and 50oz platinum, when the old broker dealer finally does transfer the metals to the new custodian, NONE of the bars are the same in weight or serial number as my clients statements. The old broker dealer is having to come to me and my clients with bars of different serial numbers and weight than the one listed on the statements or from old trade confirms.
This mis-match on transfers proves to me that the old broker deal NEVER had the metals and are now having to go acquire them to make good on client transfers. Coincidentally, I was also a broker at Morgan Stanley in 2006 when MS got busted for excessive storage fees and it turned out MS never owned the metals that were printed on client statements either.
Moral to the story, if you own metals at a major broker dealer, just because they are printed on your statement, does not mean they exist. I highly recommend shipping them home, even if they are in a qualified account. If there too much to take out of a qualified account, transfer them to a new custodian, for the new custodian will not accept the transfer without video taping and verifying the move of metals from the storage depository to the new storage depository.
Last thing, I am 100% for sure that the most of the metals have been removed from the United States, and when the stock market and bond market crashes this fall, all metals in private accounts will either not be there, or confiscated.
NFP BEATS AT +175K, SILVER FLASH CRASHED
![Live 24 hours gold chart [Kitco Inc.]](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_tdRx6gaTaRE54EUgzkDZIRiuTkavjB_umkgnZ2Z_rNY311SD9423bLhu0_8KiGyE37rmbi3sVe_YAqTFhMjuWVlojLaOqaWBDYXMn1=s0-d)
typical NFP Friday tricks !
http://www.caseyresearch.com/gsd/edition/bloomberg-gold-traders-most-bullish-since-bear-market-began
¤ YESTERDAY IN GOLD & SILVER
The gold price slid quietly lower in Far East trading on their Thursday, hitting its low of the day [around $1,393 spot] shortly after the London open. From there it rallied until 8:30 a.m. in New York...almost the exact moment that the dollar index began to head south with a vengeance.
During the next thirty minutes gold got sold down about ten bucks before beginning to rally a bit. This quiet rally really gained serious strength around 11:40 a.m. in New York...and got cut off at the knees just before 12:30 p.m. EDT when it appeared that the market was about to go 'no ask'. The high tick of the day was $1,422.70 spot at that point.
From there, a not-for-profit seller sold it down to around $1,415 spot...and the gold price didn't do much after that.
Gold closed at $1,413.70 spot...up $11.00 on the day. Gross volume was pretty heavy...around 185,000 contracts. It's obvious from the price action and this volume number that yesterday's rally did not go unopposed.
It was more or less the same chart pattern in silver, except the price was more 'volatile'...and the 8:30 a.m. EDT sell-off was far more pronounced. The silver market went 'no ask' at 12:25 in New York before a seller of last resort put an end to it.
From there the silver price got sold down pretty hard into the close. The low in early London trading was around $22.25...and the high tick touched $23.00 before being the rally was brought to an end.
Silver closed the day at $22.59...up 3 whole cents on the day. Net volume was 37,500 contracts which, considering the volatility, wasn't a lot.
Platinum and palladium didn't do much better, but the real big price moves were in gold and silver...and the other two white metals only watched from the sidelines. For the day, gold was up 0.78%...silver was up 0.16%...platinum was the star, up 1.06%...and palladium was only up 0.40%.
The dollar index did not have a good time yesterday. It closed late Wednesday afternoon in New York at 82.56. From there it began to sag a bit as the Far East and London trading days came and went...and at 8:30 a.m. EDT, the real sell-off began.
By the time the low tick of 81.18 was in at 12:20 p.m. in New York, the dollar index had shed 138 basis points. From there it recovered 42 basis points by 1:30 p.m...and then traded more or less unchanged for the remainder of the New York session. The index closed at 81.59...down 97 basis points from Wednesday's close.
As should be apparent to all but the willfully blind, if gold and silver prices hadn't been capped when they were, both metals would have closed materially higher. One can only imagine the slaughter in the precious metals that would have occurred if the dollar index had risen that amount. Here's the 3-day dollar index chart.
* * *
The CME's Daily Delivery Report showed that 318 gold and zero silver contracts were posted for delivery within the Comex-approved depositories on Monday. In gold, it was the same crooks as Wednesday...JPMorgan was the biggest short/issuer with 317 contracts...and the two big long/stoppers were HSBC USA and Barclays...with 186 and 125 contracts respectively. And we still haven't seen hide nor hair of Canada's Bank of Nova Scotia this delivery month. The link to yesterday's Issuers and Stoppers Report is here.
There was another withdrawal from GLD yesterday. This time an authorized participant withdrew 86,999 troy ounces. And as of 10:22 p.m. EDT last night, there were no reported changes in SLV.
It's been three weeks since I've heard from the good folks over at Switzerland's Zürcher Kantonalbank. During that period their gold ETF showed a reduction of 209,955 troy ounces...and their silver ETF declined by 784,044 troy ounces.
And, for the second day in a row, there was no sales report from the U.S. Mint.
Over at the Comex-approved depositories on Wednesday, they didn't receive any silver, but they shipped 761,514 troy ounces of the stuff out the door. The link to that activity is here.
In gold, they didn't report receiving any on Wednesday, but they did ship out 39,557 troy ounces...all of it out of Scotia Mocatta...and the link to that activity is here.
Here are a couple of charts that Nick Laird sent our way on Wednesday that I just didn't have the space for in yesterday's column, so here they are today. They are the 12-year trend lines for both gold and silver. Of course they wouldn't look like this if JPMorgan et al weren't interfering.
(Click on image to enlarge)
(Click on image to enlarge)
Here's another graph...this one courtesy of Casey Research's own Jeff Clark. It's the St. Louis Fed's Adjusted Monetary Base, which has set another record high at $3.17 trillion. Unless the Fed wants the banking system to implode, this line will rise forever...until someday it won't matter how much money they give to the banks, as they will implode anyway.
* * *
selected news and views....
'Notable Failures': IMF Admits Major Mistakes on Greek Bailout
The International Monetary Fund acknowledges that it made "notable failures" on the first rescue package for Greece, setting overly optimistic expectations for the country's economy and underestimating the effects of the austerity measures it imposed. As such, the fund said in an unusually frank report released on Wednesday, it lowered its own standards on debt sustainability, setting lending levels too high for Greece while not pushing hard enough on Greek debt restructuring.
The IMF, together with the European Central Bank and the European Commission, make up the so-called Troika, which intervened in 2010 to keep the euro-zone country from defaulting on its debts and having to leave the common currency bloc. At the time, the IMF pledged some €30 billion ($39 billion) to Greece, out of a total bailout package of €110 billion. This was followed by a further pledge of €165 billion, plus €107 billion in private loan forebearance.
Some IMF board members and others criticized the fund for giving Greece so much money relative to the size of its economy and accused it of bending to appease its European members. The IMF, however, insisted the debt levels were sustainable as long as its economic projections were accurate. In retrospect, however, the IMF now says that it lowered its bar for Greece.
This article was posted on the German website spiegel.de yesterday...and I thank Roy once again for bringing it to our attention.
E.U. commission on the defensive over IMF report
The European Commission has hit back at criticism over its handling of the Greek debt crisis, insisting that cutting the country's budget deficit and keeping it in the euro was "no mean feat."
Speaking with reporters on Thursday (6 June), Simon O'Connor, spokesman for Olli Rehn, the bloc's economic and monetary affairs commissioner, described as "plainly wrong" assertions in an International Monetary Fund (IMF) report that not enough had been done to promote economic recovery in Greece
"We fundamentally disagree that not enough was done to promote growth, this is plainly wrong and unfounded," he said.
This article was posted on the euobserver.com Internet site yesterday afternoon Europe time...and it's another offering from Roy Stephens.
Hard-line ECB washes hands of jobless crisis, sees no 'Japanese' deflation
The European Central Bank has refused to take any further measures to lift the eurozone out of recession and curb rising unemployment, counting on spontaneous recovery later this year to do the job.
Mario Draghi, the ECB’s president, said the wild moves in currencies and global stock markets over the past two weeks do not change the fundamental picture, though the bank has downgraded its economic forecasts and expects a deeper contraction of 0.6pc this year. “It is not enough to justify immediate action,” he said.
“The ECB seems to have given up. It is as if they have decided that there is not much more they can do and will simply allow events to run their course,” said David Owen from Jefferies Fixed Income.
The Governing Council held interest rates steady at 0.5pc, and discussed a range of measures to alleviate the credit crunch across Southern Europe and boost lending to small business, without reaching any conclusion. “People don’t have definitive ideas yet,” said Mr Draghi.
This Ambrose Evans-Pritchard commentary was posted on the telegraph.co.ukInternet site early yesterday evening BST...and I thank Manitoba reader Ulrike Marx for bringing it to our attention.
China fuels trade row with attack on 'haughty' Europeans
The official mouthpiece of the Chinese Communist Party has attacked the European Union, lashing out at the “haughty attitudes of certain Europeans” and warning that China still had “plenty of cards” to play in an increasingly acrimonious trade dispute.
“China does not want a trade war, but trade protectionism cannot but bring about a counter-attack,” warned an editorial in the People’s Daily newspaper, whose opinion pages often reflect government thinking.
The newspaper’s attack came two days after the EU Commission announced it would begin charging duties on solar panels imported from China.
Hefty tariffs of up to 48 per cent will be placed on subsidised Chinese solar panels, Karel De Gucht, the EU’s trade commissioner, announced on Tuesday.
This news item appeared on The Telegraph's website early yesterday afternoon BST...and it's another contribution by Roy to today's column.
Three King World News Blogs
1. Egon von Greyerz: "Swiss Refiner Delays Hit 5 Weeks on Massive Gold Demand". 2. Louis Yamada: "3 Fantastic Charts Plus Commentary on Gold and Stocks". 3. Dr. Stephen Leeb: "Fund Managers Are Now Buying Gold With Their Own Money".
India Central Bank Prohibits Sales Of Gold Coins
"The Reserve Bank of India has advised banks against selling gold coins to retail customers, Finance Minister P. Chidambaram said on Thursday, a day after he raised gold import duty to try to ease pressure on India's bloated current account deficit."
Well, if there ever was one sure way to send demand for any product through the roof (guns, ammo, etc), it is for the government to prohibit its outright sale.
This short article was posted on the Zero Hedge website early yesterday afternoon EDT...and my thanks go out to Marshall Angeles.
Anger, smuggling and other implications of India's gold import hike
A trigger happy Indian government has done it again. Customs duty on the import of gold was hiked by two percentage points, to 8%. This is the second time in six months that the duty has been raised. Traders who are set to lose heavily insist that it could lead to large scale smuggling in the country.
Import duty was at 6% earlier, which had rattled jewellers and made the cost of the precious metal more expensive for Indian consumers, who could not effectively benefit from the drop in bullion prices in the international market.
Gold imports by India were set to surge with the festival season luring shoppers. However, news of the import hike was greeted by scorn and anger from retailers. ``This is bound to raise many issues. Smuggling is just one of them. How can one sustain demand in the world's biggest gold consumer,'' said Navneet Mehta, bullion trader.
This news item was posted on the mineweb.com Internet site yesterday...and it's courtesy of Ulrike Marx.
Glancy Binkow & Goldberg LLP Files Securities Class Action Lawsuit Against Barrick Gold Corporation
The Complaint alleges that, throughout the Class Period, the defendants made false and misleading statements and concealed material information relating to the cost and time-to-production projections for the Company’s Pascua-Lama Project (“Pascua-Lama” or the “Project”), a property under development as an open-pit gold and silver mine that straddles the mountainous border between Argentina and Chile.
Barrick, based in Toronto, Ontario, is one of the world’s largest gold mining companies in terms of production, reserves and market value. The Complaint alleges that during the Class Period, Barrick concealed from shareholders that: (1) the costs of bringing Pascua-Lama into production far exceeded any of Barrick’s various publicly presented estimates; (2) Pascua-Lama presented no reasonable expectation of coming into production within any of Barrick’s various publicly presented time horizons; (3) Pascua-Lama’s environmental impact presented significantly greater risks to the Project and the Company than those disclosed by defendants; and (4) as a result, defendants had no reasonable basis for their statements regarding the cost, timing, and production estimates for the Project, or the reserves and earnings guidance for the Company.
The true state of the Pascua-Lama Project was revealed in part on April 10, 2013, when news outlets reported that the Appeals Court of Copiapó, Chile, had issued an order suspending work on Pascua-Lama. In reaction to this news, Barrick’s stock price fell $2.23 per share, or 8.3 percent, to close at $24.46 per share on trading volume of more than 40 million shares.
There are many skeletons in Barrick's closet...and this one is hardly worth mentioning, but it certainly won't help the company. Bankruptcy, or something close to it, is probably staring them in the face right now. This item was posted on the businesswire.com Internet site yesterday...and it's the second news item in a row from Marshall Angeles.
¤ THE WRAP
The bearing of arms is the essential medium through which the individual asserts both his social power and his participation in politics as a responsible moral being... -- J.G.A. Pocock, describing the beliefs of the founders of the U.S.
JPMorgan et al obviously didn't want the price of the precious metals going anywhere on the dollar index face plant yesterday, as they threw a lot of contracts at the gold market when it was about to go 'no ask' around 12:30 p.m. in New York yesterday. It was even worse for silver.
If we take a look at the first four trading days of this week, the dollar index declined 169 basis points during that time period. During that same time period, the gold price has risen $2.70.
Here's the 5-day dollar index chart...and the 30-day gold chart [with 20 and 50-day moving averages].
It's obvious, at least to me, that despite the currency moves, the precious metals are not being allowed to rally. And as I said at the top of this column, one should be grateful that the dollar index didn't rise that amount, or "da boyz" would have probably hit gold for $50 plus.
My comments following the Bloomberg story above the cartoons still applies...as PM prices aren't going anywhere until the powers-that-be decide they will...and yesterday wasn't the day.
Will it be today?
We get the jobs report at 8:30 a.m. EDT...and I fully expect that announcement will be accompanied by a smash in gold and silver prices...followed by a reasonably quick recovery. That has been the price pattern a lot of times in the recent past...and using that as prologue, I'm expecting something similar this time. We'll see.
As I mentioned yesterday, we get the new COT Report at 3:30 p.m. EDT today...and checking the CFTC's website at 4:03 a.m. EDT this morning...I note that the May Bank Participation Report has already been posted. I don't have time to do anything about it now, as my filing deadline on today's missive is coming up hard...and I have miles left to go...so I'll report on it tomorrow.
All was quiet during Far East trading on their Friday...and the smallish rallies in both gold and silver that started in Tokyo, got cut off at the knees before they could get far...especially silver. It was also quiet during early trading in London. Gold volume was about average for that time of day...and virtually all of it looked like it was high-frequency trading. Silver volumes on the other hand were very low...with no roll-overs at all...which is entirely opposite to what I reported in this space on Wednesday and Thursday. A mystery with no answer at the moment. The dollar index is down about 12 basis points.
And as I hit the 'send' button at 5:20 a.m. EDT...gold is down a couple of bucks...and silver is up about a dime. The dollar index is only down a few basis points...and volumes are still pretty light.
With today being Friday...and the jobs report...I'll be prepared for any possible price scenario when I turn my computer on later this morning. I hope you are too.
Enjoy your weekend, or what's left of it...and I'll see you here tomorrow.
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