http://www.caseyresearch.com/gsd/edition/paul-craig-roberts-on-gold-suppression-the-dollars-decline-and-gangster-cap
Submitted by Tyler Durden on 06/06/2013 08:03 -0400
¤ YESTERDAY IN GOLD & SILVER
The gold price followed pretty much the same pattern on Wednesday in Far East trading as it did on Tuesday...rallying above the $1,400 spot price mark...and then getting sold off around 1:00 p.m. Hong Kong time...and back below $1,400 spot about twenty minutes before the Comex open.
The price popped back above the $1,400 price mark immediately, but ran into a willing seller the moment that Comex trading began in New York. After that, the gold price struggled to stay above that price, but finally got sold down back below the $1,400 spot price going into the Comex close. Once electronic trading began, the gold price move gently back above the $1,400 price mark and stayed there for the rest of the day.
The high tick in New York was recorded by Kitco as $1,412.00 spot.
Gold closed at $1,402.70 spot...up $2.70 on the day. Gross volume was around 131,000, about the same volume as Tuesday...most of which was high-frequency trading.
Silver followed basically the same price pattern as gold right up until the noon silver fix in London on Wednesday...and then away it went to the upside...before getting capped at 8:30 a.m. in New York. Silver's high tick of the day [$22.90 spot] came around 10:10 a.m. EDT...and it was all down hill until the Comex close. After that, the silver price didn't do much.
Silver closed the day at $22.55 spot...unchanged from Tuesday...but up half a cent if you want to get technical about it. Net volume was around 25,000 contracts...and there were a lot of roll-overs out of the July contract. This process appears to starting unusually early in the month. But there's a lot of open interest to chew through in silver before the end of the month, so maybe not.
The dollar index closed at 82.77 late on Tuesday afternoon in New York. When it opened on Wednesday in the Far East, it chopped around in a twenty basis points range until around 10:00 a.m. in New York, before sagging a bit into the close. The index finished at 82.56...down 21 basis points on the day.
The CME's Daily Delivery Report showed that 826 gold and 11 silver contracts were posted for delivery within the Comex-approved depositories on Friday. The largest short/issuer was JPMorgan Chase with 725 contracts out of its client account...and the two biggest long/stoppers were HSBC USA with 494 contracts...and Barclays with 330 contracts. No Bank of Nova Scotia in sight once again. The link to yesterday's Issuers and Stoppers Report is here.
There were no reported changes in GLD or SLV yesterday...and no sales report from the U.S. Mint, either.
Over at the Comex-approved depositories on Tuesday, they reported receiving 832,114 troy ounces of silver...and shipped 1,121,152 troy ounces out the door. The link to that activity is here.
In gold on Wednesday, these same warehouses did not receive any, but did ship 21,066 troy ounces out the door...all of it from the JPMorgan Chase depository. The link to that activity is here.
The story was out today about China's gold imports through Hong Kong for the month of April...and here are relevant charts with my thanks going out to Nick Laird over at sharelynx.com. I have a Bloomberg story about this in the 'Critical Reads' section further down.
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selected news and views.....
C'est Fin: Fed's Fisher Declares End to Bond Rally
We've had Federal Reserve officials say it's time to consider tapering bond purchases, but we haven't —at least not in my memory — had a Federal Reserve official declaring a rally of anything "over"...until now.
"This is the end of a 30-year rally" in bonds, Federal Reserve Bank of Dallas President Richard Fisher said last night to reporters, after a speech in Toronto. Mr. Fisher isn't a voting member of the FOMC — and granted, he's the leading voice of hawkishness within the small contingent of Fed hawks — but his views are widely quoted.
Read that comment carefully: he emphasized that this wasn't just a short-term top, this was the end of the BIG BOND RALLY. His full quote: "We've had a 30-year bull bond market...At some point secular markets change."
This CNBC story was posted on their Internet site at 10:30 a.m. EDT yesterday...and today's first story is courtesy of U.A.E. reader Laurent-Patrick Gally.
Three King World News Blogs
The first interview is with Bill Fleckenstein...and it's headlined "We Are Staring at Economic Collapse". The second commentary is with John Hathaway. It's entitled "Gold to Surge as Fed Pursues Radical New Policy". And lastly is this second interview with Bill Fleckenstein. It bears the headline "Gold Will Be Damn Explosive to the Upside".
U.S. bullion coin demand still at 'unprecedented' levels: Mint
Demand for U.S. gold and silver bullion coins is still at "unprecedented" high levels almost two months after an historic sell-off in gold released years of pent-up demand from retail investors, the head of the U.S. Mint said on Wednesday.
"We are buying all the coin (blanks) they can make," Richard Peterson, acting director of the U.S. Mint, said in an interview referring to the Mint's suppliers.
This very short Reuters item was posted on their website early yesterday afternoon EDT...and my thanks go out to Washington state reader S.A.
Paul Craig Roberts on gold suppression, the dollar's decline, and 'gangster capitalism'
GoldMoney's Andy Duncan interviewed former U.S. Assistant Treasury Secretary Paul Craig Roberts about the Federal Reserve's suppression of gold prices, the decline of the U.S. dollar as the world reserve currency, and the "gangster capitalism" that has resulted from deregulation of the financial markets and failure to enforce anti-trust law.
The interview, conducted on June 3rd, is 40 minutes long and is posted at GoldMoney's Internet site. I haven't had the time to watch it yet, but I would guess it's worth watching. I found this interview in a GATA release yesterday.
¤ THE WRAP
Tell me whether JPMorgan will add aggressively to short sales on rising prices...and I could venture an intelligent guess on what the price rally would look like. But only JPMorgan knows what they will do. Because what happens with the price of silver (and gold) is up to JPMorgan is, basically, what makes the bank the prime silver manipulator. The good news is that we should have clarity on just how crooked JPMorgan may be, shortly after the moving averages are violated and technical buying emerges in earnest. Certainly, if JPMorgan doesn’t add additional short contracts aggressively on the coming silver price rally, prices should soar. And considering that the pending violation of the 50-day moving average is drawing near, that sets the stage for an explosive rally soon. - Silver analyst Ted Butler...05 June 2013
It was another day of trading either side of the $1,400 spot price mark. The associated volume wasn't very heavy, but whoever the not-for-profit seller is above the $1,400 price mark, they certainly are determined. But for how much longer remains unknown.
Ted Butler mentioned the 50-day moving average as a significant technical sign-post...which it is...so here are the gold and silver charts with both the 20 and 50-day moving averages indicated.
As you can see, we're already banging on the door of the 20-day moving average in both metals...but their respective 50-day moving averages are miles/kilometers away.
(Click on image to enlarge)
(Click on image to enlarge)
Here's another chart you may find interesting. I 'borrowed' this one from a story that appeared ontheaureport.com Internet site yesterday. The title of the article is "Sprott's Michael Kosowan Asks: Are You Swayed...or Afraid?"
As Michael states in his linked commentary above..."The chart dramatically shows that this industry has seen an acute lack of significant discoveries in the recent past. Meanwhile, the industry is chugging through more than 80 Moz gold, 680 Moz silver, 15 million tonnes of copper and 90 million pounds of uranium annually. These depleted reserves need replenishment. And, in today's challenging economic environment, the quality needs to be higher." The article is worth your time, if you have any left, that is.
In Far East trading on their Thursday, it was pretty much the same pattern we've been watching all week, as the price is now back below $1,400 spot as of 2:45 p.m. Hong Kong time...and fifteen minutes before the London open. Volumes are pretty light in both silver and gold but, once again, the roll-overs out of the July delivery month in silver are already very heavy. As I pointed out in this space yesterday, roll-overs out of any delivery month in the Far East have always been few and far between in both metals...and I'm curious as to why there's been this change in pattern...especially in silver. Maybe it's nothing...and I should be taking one of those blue pills myself. The dollar index is down about 12 basis points.
And as I hit the 'send' button at 5:10 a.m. EDT...the gold price is back to about unchanged after hitting a low shortly after the 8:00 a.m. BST London open...and the same goes for silver. Gold volume has more than doubled since the London open, but silver's volume figures...minus the roll-overs...are actually quite light. The dollar index is now down 19 basis points.
Tomorrow we get both the Commitment of Traders Report...and the Bank Participation Report as well. The BPR is derived from the COT data...and lays bare the Comex futures trading positions of the big U.S. banks for all to see. And, unless I'm mistaken...or have been asleep at the switch...we get the jobs report as well.
The rest of this week's trading action in both gold and silver could prove interesting...and there's no question in my mind that the 8:30 a.m. jobs report tomorrow will get some 'reaction' from the precious metals.
That's all I have for today...and I'll see you here on Friday...Saturday if you live west of the International Date Line.
http://www.zerohedge.com/news/2013-06-06/point-out-slump-chinese-gold-imports-chart
Point Out The "Slump" In Chinese Gold Imports On This Chart
Lately Bloomberg's reporting group (now without access to client tracking) has been hitting it out of the park when it comes to cognitive schizophrenia-inducing news article headlines.
Last Friday it was the market somehow going up and down at the same time.
Now, Bloomberg has shifted its deductive skills over to analyzing the gold market with the following article headline: "China’s Gold Imports From Hong Kong Slump on Quota Backlog" in which Bloomberg says: "Mainland buyers purchased 126,135 kilograms, including scrap, compared with 223,519 kilograms in March, according to Hong Kong government data yesterday. Net imports, after deducting flows from China into Hong Kong, were 75,891 kilograms, from 130,038 kilograms a month earlier, according to Bloomberg calculations." Now perhaps what would have made this "slump" more amusing is if BBG had also shown it in context. Which we are happy to do.Because the 126.1 tons of gold imports in April, or the month of the "great gold crash", was only the second highest ever, and just shy of the all time record high of 223.5 tons imported in March.
And the "slump" when observed year over year. Hmmm:
Bloomberg was right about one thing however:
“Some qualified banks used up their gold import quota in the first three months and weren’t able to get the paperwork done fast enough to bring in bullion in April,” said Tian Rui, vice president of the precious metals division at INTL FCStone Trading Co. “We might see higher imports in May because demand surged after the rout.”
In other words, look for the unslump in May when a surge in even more buying sends gross imports from Hong Kong to what may be new all time highs.
In the meantime, YTD imports of 500 tons are more than double the 240 tons imported over the same period last year: the same amount as held by the ECB.
China has now imported 1,333 tons of gold since January 2012, or 30% more than its official gold holdings, and is on a run rate to import 1500 tons in 2013 alone.
At least someone is taking advantage of all that levered ETF paper gold selling...
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