saveyourassetsfirst3 |
- Friday Options Recap
- Gold Downside Targets and Manipulative Excuses
- Reviewing Gold-Mining Margins
- Gold-Mining Margins 2
- Silver Stocks Building for Breakout in 2012: Sean Rakhimov
- Asia Buys Gold After Massive Single Trade Sell Off During Bernanke’s Testimony
- Bob Chapman - Gold & Silver are the Only Safe Heavens - 29 February 2012
- Bernanke’s B.S. Bludgeons Bullion
- Jonathan Davis and Michael Hampton talk to Dominic Frisby about gold
- What happened to Gold ?
- Is gold in a buble? NOT!
- On The Bias(es)
- Silver Price Action ‘Remarkable’
- WATCH: Brazil & Gold Correction
- Morning Outlook from the Trade Desk 03/02/12
- Discussion with Max Keiser on Gold and Silver Manipulation
- Marc Faber: Government Will Seize Gold
- What trading volume could be saying about silver now
- Top currency fund manager: A "disastrous inflationary fire" is coming
- GoldCore - Asia Buys Gold After Massive Single Trade Sell Off During Bernanke’s Testimony
- Gold, Silver Appear Unintimidated
- Gold smashing was a central bank operation, Salinas Price says
- WATCH: JS Kim on Gold & Silver Price Manipulation
- VISUALIZE: Is Gold A Bubble?
- The Gold Wars
- Gold Manipulation, Currency Intervention, and the Death of Free Market Capitalism
- China's share of reserves in dollars dives
- A single seller drove gold down as Bernanke testified
- Wow! Another gold fund manager gets suspicious
- Gold smashing was a central bank operation, Billionaire Hugo Salinas Price says
| Posted: 02 Mar 2012 06:34 AM PST By Frederic Ruffy: Sentiment Concerns about Europe seem to be weighing on Wall Street Friday. The euro traded down 1 percent and dipped back below 1.32 on the buck after a Spanish official said that his nation's deficit is running at 5.8 percent of GDP. Spanish borrowing costs rose and the yield on the ten-year rose above Italy's 10-year for the first time since August. With no domestic economic news on the calendar, there wasn't much other macro news to drive the action. Crude oil gave back $2.50 to $106.33 and erased the gain seen late-Thursday, which were triggered by reports of a fire along a key Saudi pipeline. Saudi officials denied the speculation. Meanwhile, gold is off $11 to $1711 and silver slipped 80 cents to $34.80. Trading is the equity and options market is slow. The Dow Jones Industrial Average has traded in a 55-point rnage and is down 4 points. Complete Story » |
| Gold Downside Targets and Manipulative Excuses Posted: 02 Mar 2012 06:30 AM PST
Based on the March 2nd, 2012 Premium Update. Visit our archives for more gold & silver analysis. When a roller coaster plunges it's gut-churning, heart-racing, blood curdling, in a word–petrifying. That's how precious metals investors must have felt Wednesday when gold plunged more than 5 per cent to hit a low of $1,688.44 ounce, after earlier trading as high a $1,791.49 an ounce.
Please allow us to digress a bit. Being a lone voice suggesting a downswing is one thing, but we have just learned that those analysts, who didn't see the correction coming, are now blaming some certain events that took place on Wednesday or even resort to manipulation theory. We find it a bit odd. Yes, in a way, all markets are manipulated as the money supply / interest rates are subject to gov't control and there are indications that gold and silver markets are being manipulated, but that doesn't mean that all sharp moves (especially the "unforeseen" ones) should be viewed as resulting from price manipulation. Events – yes, there were some bearish news for precious metals on Wednesday, but on any given day there are multiple bullish and bearish pieces of news. Why do sometimes news affect price and sometimes they don't? Emotionality of investors and traders is the answer and technical analysis (and related approaches) can help one to prepare themselves for these sudden moves. Not all of them can be predicted, but a lot of them and just because other methodologies didn't allow one to see a plunge coming, doesn't mean that one should explain with manipulation. In this week's case, the markets were bound to correct based on the self-similarity between 2006 and now and many other technical/emotional factors and we've been writing about it in the past few weeks. Simply put – ignoring technical analysis can be costly and we believe that explaining all sharp market moves with manipulation theory is not appropriate – especially if they could have been reliably predicted using technical tools.
Wednesday was a tense day as the dollar rose, gold plunged and a rally in equities came to a halt. This was accompanied by a testimony by US Federal Reserve Chairman Ben Bernanke who dashed hopes for additional growth stimulus (this is one of the above-mentioned "events"). Bernanke testified that recent developments in the labor markets were "positive" and that inflation may go up "temporarily" given recent gasoline price increases. But the chairman gave no hint of further easing. Investors had hoped the Fed will launch another round of quantitative easing, pushing cheap money into the market that would boost inflation, against which gold is a traditional hedge. Our take is that we will see more cheap money, and what we have right now is temporary smoke and mirrors.
Keep in mind that although quantitative easing is good for precious metals, so is inflation. So, if the Fed chairman himself is talking about inflation, the market could just as well have taken that to be a positive indicator for gold prices – in a way, higher gold prices represent inflation (measuring a decline of dollar's value against the true money).
The decline in gold was accompanied by a decline in stock markets a day after the Dow broke through 13,000 to hit a nearly-four-year high. And on Wednesday, the NASDAQ briefly topped 3,000 before pulling back as Bernanke's remarks took the air out of the rally. Even with the day's decline, the major indexes were able to post their strongest February in years. And even with Wednesday's decline, bullion is still up 10 percent this year, on track for its 12th consecutive annual gain.
Having emphasized technical analysis' role in the process of investment analysis, let's move directly to the charts. We will start with a look at the long-term gold chart (charts courtesy by http://stockcharts.com.)
In the long-term gold chart (please click on the above chart to enlarge it), we can clearly see a continuation of the self-similar pattern. Gold bottomed at the end of 2006 when it reached the 50-week moving average. Today, this moving average is still considerably below gold's recent price levels. Since the 50-week moving average is trending higher, a week or two more of declining prices should result in gold's price and the moving average meeting somewhere in the $1,650 range.
One other note concerns the RSI levels. In 2006, gold reached its bottom with the RSI level slightly below 50. Thursday's close saw an RSI level close to 54 and declining, very much on pace to possibly close in to the very level seen nearly six years ago.
The gold-to-bonds ratio chart gives us a unique insight into the similarities between 2006 and today from a perspective which is quite different from studying gold itself. This chart also provides us with similar signals and confirms the self-similar pattern.
In both time frames, we have first seen a correction (following the 2005-2006 and 2010-2011 rallies) to the 61.8% Fibonacci retracement level and then a move back up to the 38.2% level. The small moves in '06 and '12 above this line were both followed by declines. This is more or less where we are right now. In 2006, we next saw a small bounce and then a decline to the final bottom.
It appears that in our current situation, a small bounce could also be seen next followed by a decline slightly below the 50% Fibonacci retracement level. Although this decline does appear small from the ten-year perspective, the dollar value could actually be fairly significant.
We now turn to the chart from 2006-2007 as we have done for a couple of weeks now. We have inserted a red ellipse to correspond to where we are presently in reference to the trading patterns seen back then. Based on this chart, it seems that a small rally is likely to be seen next. It does not appear large enough to bet on based on our analysis of current market trends, however.
Now, gold's next move to the upside (the above-mentioned bounce) could turn out to be as big as we saw back in 2006 but this is no guarantee that the analogy be as precise. So, based on this chart alone, we expect to see a move to the upside very soon followed by a decline to slightly below the 50% Fibonacci retracement level of the previous rally. Where would that exactly be? Let's take a look at the current short-term chart to find out.
In the current short-term GLD ETF chart, we see that the previous upside target has been reached (its lower part) and downside target level for the coming decline is in the $160-$161 range. This corresponds to about a $1,650 price for spot gold. Recall that in 2006, the initial part of the decline was seen to the first Fibonacci retracement level.
We have seen this take place (on Wednesday this week) and also saw a bounce on Thursday. This bounce is quite a normal move coming immediately after a huge decline. Some sideways trading or a slight move higher on low/declining volume levels would confirm that the short-term trend is indeed now to the downside. The decline to our target area will likely be seen sometime in the next two weeks.
What is important in looking at the 2006 pattern is to remember that sometimes history has the unique characteristic of repeating itself. While some people defy that, it seems that history may actually "rhyme" – copy some patterns, often on different scales. Recall, that both the price of gold, and its moves in 2006 were at different levels than they are now. Yet, thanks to our analysis, we are able to spot places where patterns may be repeated and, thanks to that, we may somehow limit the uncertainty present on the precious metals market – and that was the case this week.
In this week's chart of gold from a non-USD perspective, there was a development worth noting. In last week's Premium Update, we stated that a significant resistance level is about to be reached which would imply a pause or correction. From this non-USD perspective, gold actually declined to a support level this week after topping at the resistance line created by previous highs. If this support line (just below the 63 level) is broken, another is in place close to 60.
With respect to the USD Index, we have a few possibilities for the coming weeks. If gold declines without any real action in the USD Index, the ratio here will likely move to 60 or so, where it will encounter the second support line. If however, the USD Index moves higher and gold prices decline, the non-USD ratio will likely trade sideways and then resume its rally in a week or two. Specific details are not yet forthcoming from this chart.
Looking at the long-term chart of gold from the perspective of the Japanese yen, we do not really see many signals. However, from an educational standpoint, providing this chart seems justified. The above picture confirms that the top is in with gold having moved to the middle of the trading range and RSI levels in the overbought range. This means that when we see this combination of signals again, we will likely have another local top. Please note that there were many cases in the past when local tops in gold were indicated by gold:xjy ratio (gold priced in yen) moving to the middle of its trading channel.
Right now, the RSI levels have recovered somewhat and gold does not appear to be overbought or oversold at this time. This chart therefore does not provide us with any important timing details at this time.
Summing up, the self-similar pattern with 2006 is clearly still in place. We expect gold to bounce a bit higher and then decline. The coming bounce does not appear large enough or sure enough to bet on and the short-term trend now appears to be bearish. If gold trades sideways or moves higher on low volume in the coming week, this will confirm the bearish outlook and it will likely remain in place for the next 2 weeks or so.
Even though, from time to time gold moves down sharply, it doesn't mean that all of these moves are a result of market manipulation. At least some of them can be successfully predicted and avoided in advance thanks to applying technical analysis and other related methods.
Thank you for reading. Have a great and profitable week! P. Radomski * * * * *
Sunshine Profits provides professional support for Gold & Silver Investors and Traders.
All essays, research and information found above represent analyses and opinions of Mr. Radomski and Sunshine Profits' associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Mr. Radomski and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above belong to Mr. Radomski or respective associates and are neither an offer nor a recommendation to purchase or sell securities. Mr. Radomski is not a Registered Securities Advisor. Mr. Radomski does not recommend services, products, business or investment in any company mentioned in any of his essays or reports. Materials published above have been prepared for your private use and their sole purpose is to educate readers about various investments. By reading Mr. Radomski's essays or reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these essays or reports. Investing, trading and speculation in any financial markets may involve high risk of loss. We strongly advise that you consult a certified investment advisor and we encourage you to do your own research before making any investment decision. Mr. Radomski, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.
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| Posted: 02 Mar 2012 06:00 AM PST While many miners have capitalized on gold's bull, as a group they've struggled controlling costs. And in balancing external forces they can't control with internal forces they can, these cost challenges have limited their ability to grow margins. |
| Posted: 02 Mar 2012 05:50 AM PST |
| Silver Stocks Building for Breakout in 2012: Sean Rakhimov Posted: 02 Mar 2012 04:40 AM PST |
| Asia Buys Gold After Massive Single Trade Sell Off During Bernanke’s Testimony Posted: 02 Mar 2012 04:33 AM PST |
| Bob Chapman - Gold & Silver are the Only Safe Heavens - 29 February 2012 Posted: 02 Mar 2012 03:53 AM PST Bob Chapman - A Marine Disquisition - 29 February 2012 : Thursday's Financial... [[ This is a content summary only. Visit my blog http://www.bobchapman.blogspot.com for the full Story ]] This posting includes an audio/video/photo media file: Download Now |
| Bernanke’s B.S. Bludgeons Bullion Posted: 02 Mar 2012 03:38 AM PST Gold and silver prices plummet because the U.S. economy is so healthy that the Federal Reserve won't have to print any more money, and so there won't be any more inflation. Lol! While it made good fiction for the mainstream pablum-dispensers, it certainly has no connection whatsoever with the real world. The U.S. economy is "healthy"? As I have pointed out on previous occasions, 0% interest rates are nothing less than an economic defibrillator – a (temporary) desperation measure to attempt to breathe life into a dying economy. Permanent 0% interest rates simply mean that economy is already dead, as we have seen with Japan. All that remains to be done is to put these zombie-economies out of their misery, through debt-default followed by massive restructuring. As I have stressed in my recent commentaries, it is also beyond absurd for B.S. Bernanke to pretend that the Federal Reserve has ceased its money-printing orgy. The gravity-defying U.S. Treasuries market provides conclusive, mathematical proof that such a claim is tantamount to an admission of massive fraud. Maximum bond prices at a time of maximum supply defies every economic principle in the books. Maximum bond prices at a time of maximum supply, when the largest buyer (China) has been selling Treasuries for more than a year, when the "economic surpluses" which financed Treasuries-buying have nearly vanished, when Treasuries auctions have been rigged so that no one knows who the buyers are, and at a time when the U.S. economy is obviously and hopelessly insolvent defies legality. Someone, somehow is financing the totally opaque purchases of $trillions in U.S. Treasuries, and the list of suspects is rather short: the Federal Reserve. If the Fed is not financing those purchases with its officially/legitimately created funny-money then in must be doing so in some less-than-legitimate manner. More broadly speaking, it demonstrates the terminal stupidity of the entire mainstream media that they could believe anyone claiming there will be little-to-no-inflation, in a world of deadbeat-debtors – who can only continue to finance their economic Ponzi-schemes through exponentially increasing their money-printing (and thus diluting their currencies, and thus producing inevitable inflation). The only other mathematically-possible scenario is debt-default: bonds immediately going to zero (or close to it). Otherwise, exponential money-printing takes the underlying currencies to zero, also making the bonds worthless. Either way we are 100% certain to get to the same result. Paying maximum prices for any of these paper time-bombs goes well past idiocy and all the way to deliberate economic suicide. As I have explained on a number of previous occasions, in either a debt-default or hyperinflation scenario gold and silver prices will explode in an equally exponential manner – again as a function of basic arithmetic (along with supply and demand). Thus the long-term upward revaluation of precious metals is as certain as sunrise following sunset. With the supposed "reasons" for gold and silver prices going lower being exposed as ridiculously fraudulent propaganda, once again we are left no explanation other than market manipulation to explain the abrupt plunges in the prices of gold and silver – just as they had achieved technical break-outs indicating that prices should move substantially higher. With both the fundamental factors and the technical factors absolutely and unequivocally bullish, there is no conceivable, legitimate explanation for the price moves seen on Wednesday. While it may frustrate the readers who send me their mail seeking guidance, I have essentially ceased any/all short-term predictions for the precious metals sector. My reasoning is elementary. |
| Jonathan Davis and Michael Hampton talk to Dominic Frisby about gold Posted: 02 Mar 2012 02:45 AM PST In this podcast Dominic Frisby, of the GoldMoney Foundation, interviews both Jonathan Davis, economist and wealth manager, as well as Michael Hampton, who is a private investor and author. They talk ... This posting includes an audio/video/photo media file: Download Now |
| Posted: 02 Mar 2012 02:17 AM PST Alf Field |
| Posted: 02 Mar 2012 02:12 AM PST Not sure who gets the credit for putting this together, but here is where I got it (via an email) http://i.imgur.com/kiqlN.jpg  |
| Posted: 02 Mar 2012 01:33 AM PST Friday's initial tilt in the precious metals markets was to the downside as the US dollar continued to strengthen and it reached 79.30 on the trade-weighted index. Gold spot prices fell by about $11 to the $1,706 area. |
| Silver Price Action ‘Remarkable’ Posted: 02 Mar 2012 01:32 AM PST from GoldMoney.com:
Trader Dan Norcini comments that this is "remarkable price action in silver", and that "To witness a market completely undo such a breakout on massive volume and then to experience only minor additional downside pressure is also something that one rarely sees. We are getting a bird's eye view of something akin to a Supernova in the sense of its rarity." This technical action again provides good support for the view that silver is at the start of the kind of price breakout that will see it retest the old $50 price record within the next couple of months. Whatever else one can say about silver, price action in this metal certainly ain't for the faint hearted. Read More @ GoldMoney.com |
| WATCH: Brazil & Gold Correction Posted: 02 Mar 2012 01:30 AM PST from TekoaDaSilva: ~TVR |
| Morning Outlook from the Trade Desk 03/02/12 Posted: 02 Mar 2012 01:28 AM PST Good Morning, Still trying to sort out the Wednesday flash-crash and its implications. Dollar oblivious to reassuring Euro-statements and oil oozes lower after no "Ka-Boom!" in Saudi Arabia. Trying to navigate higher against that combo is evidently a bit more than gold and silver can currently handle. Hoping that the close is above 1,700 but where is the needed $1,730? This was not a good week to have been touching silver. Unless you wanted to kill germs as opposed to your wallet's contents. |
| Discussion with Max Keiser on Gold and Silver Manipulation Posted: 02 Mar 2012 01:21 AM PST |
| Marc Faber: Government Will Seize Gold Posted: 02 Mar 2012 12:52 AM PST Marc Faber: Government Will Seize Gold Friday, 02 Mar 2012 07:52 AM By Julie Crawshaw Economist Marc Faber, publisher of The Gloom, Boom and Doom report, says the government will seize privately held gold, even as he continues to buy physical gold himself. "I prefer to play the commodity space by owning physical gold," Faber tells Chiefsworld. "If I were an American, I would store it outside the U.S., because in the U.S., it is not completely unlikely that they will eventually take it away." "Like in 1933, gold will be purchased back by the government" because eventually the financial mess will be so bad that gold prices "will go ballistic, and the government will take away something from a minority, and not many people own gold." "When gold prices shoot up, it will be quite a popular measure to take it away from these rich people," Faber says. "It's happened before." Faber says he's not in a hurry to buy gold, but accumulates gold every month because he believes the gold market is still under a correction. Faber notes that the Chinese economy is slowing, and says it will slow further and perhaps crash at some point, which is why he is staying out of commodities other than gold. The Wall Street Journal reports that Gold futures steadied and silver climbed as investors bet the metals' steep drop the day before had pushed prices too low. Meanwhile, Nomura's Bob Janjuah says markets are so rigged by government policies that investing dangers lurk virtually everywhere. "My personal recommendation is to sit in gold and non-financial high quality corporate credit and blue-chip big cap non-financial global equities," Janjuah writes at Zero Hedge. "Bond and currency markets are now so rigged by policy makers that I have no meaningful insights to offer, other than my bubble fears." Gold for April delivery, the most actively traded contract, rose $10.90, or 0.6 percent, to settle at $1,722.20 a troy ounce on the Comex division of the New York Mercantile Exchange. Read more: Marc Faber: Government Will Seize Gold |
| What trading volume could be saying about silver now Posted: 02 Mar 2012 12:29 AM PST From Peter L. Brandt: The volume in silver this week will be the highest since the August top, and second highest since the absolute top last April An enormous slug of volume has entered the silver market this week. In fact, by the end of trading on Friday, the weekly volume will most likely be the highest tally since the August top. So, what does this mean? Volume nearly always leads price in silver. Silver traders must always be aware of the volume of trading at the Comex. Whenever the market gets hit with a slug of volume, traders need to ask themselves... "So, what does this mean?" The record volume in late April allowed me to announce on this blog that... Read full article... More on silver: Why silver could hold the key to the market's next big move Gold guru Turk: "Something big is about to happen" in gold and silver Yesterday's Fed announcement could be the No. 1 reason to buy gold and silver now |
| Top currency fund manager: A "disastrous inflationary fire" is coming Posted: 02 Mar 2012 12:26 AM PST From Zero Hedge: A must-read from FX Concept's John Taylor for anyone who has been following the global central bank's exponential balance-sheet expansion over the past several months. ... During the past few years, the activist strain of central banking has spread around the world like wildfire, but the impact of this change on the future course of the global economy is very unclear. The number of countries involved now covers the developed world... the multitude of interventions in the financial market has expanded dramatically... And the amounts involved are exponentially higher than they were in 1979, when the Chrysler bailout began the process... Now, 14 years after LTCM, we know that the previous quarter century was just child's play... Read full article... More on inflation: Ron Paul BLASTS Ben Bernanke: You killed the dollar Top strategist Williams: The No. 1 reason to own gold today The Federal Reserve openly admits plans to crush the dollar |
| GoldCore - Asia Buys Gold After Massive Single Trade Sell Off During Bernanke’s Testimony Posted: 02 Mar 2012 12:22 AM PST Commenting on the trading of gold on "Bizarre Wednesday" our friends at Stephen Flood's GoldCore.com mention one of the many rumors coursing through the grapevine. GoldCore writes: Comment continues... "Who sold off and why is less important than the fundamentals of the gold market. Absolutely nothing has changed regarding the fundamentals of gold which remain as sound as ever with broad based demand from store of wealth buyers, institutions and central banks internationally and especially in Asia. Good volumes have been seen on the Shanghai Gold Exchange in recent days." - GoldCore.com
That just means the PM markets were ripe for a sell raid, but it wasn't just gold and silver that had a violent reaction. More to come. |
| Gold, Silver Appear Unintimidated Posted: 02 Mar 2012 12:11 AM PST |
| Gold smashing was a central bank operation, Salinas Price says Posted: 02 Mar 2012 12:08 AM PST |
| WATCH: JS Kim on Gold & Silver Price Manipulation Posted: 01 Mar 2012 10:11 PM PST JS Kim of SmartKnowledgeU Discusses Gold & Silver Manipulation on the Keiser Report. This interview was originally recorded on Monday, February 27, 2012 and JS Kim's prediction that the gold shorts were NOT about to get run over quite yet came two days BEFORE the one-day gold plunge of $87 an ounce and silver's one day plunge of $2.20 an ounce on February 29, 2012. Sorry for the funny camera angle on JS's face! ~TVR |
| Posted: 01 Mar 2012 10:03 PM PST |
| Posted: 01 Mar 2012 09:30 PM PST Gary North |
| Gold Manipulation, Currency Intervention, and the Death of Free Market Capitalism Posted: 01 Mar 2012 09:25 PM PST ¤ Yesterday in Gold and SilverThe gold price was up about twenty-five bucks by 1:00 p.m. Hong Kong time yesterday...and then didn't do much until about 10:00 a.m. in London. From there, the price declined down to just above the $1,700 mark shortly before 9 a.m. in New York before rallying back to just under $1,725 spot. It held that price until shortly before the close of electronic trading, when it got sold off about ten bucks after it made it too close to the $1,725 spot mark...just like it did in Hong Kong and London much earlier on Thursday. Gold finished at $1,717.70 spot...up $21.00 on the day. Despite the lack of price movement, net volume was an immense 219,000 contracts.
Up until 1:00 p.m. in Hong Kong, silver followed the same rally path as gold, but the subsequent sell-off ended very shortly before 12 o'clock noon in London...which looked suspiciously like an early silver fix. From that low/fix, silver rallied in fits and starts...and all three attempts that it made to get too rambunctious to the upside in New York, immediately got swatted down...including the rally into the close of Comex trading at 1:30 p.m. Eastern. From there, silver basically traded sideways into the close of electronic trading. Silver finished at $35.51 spot...up 87 cents on the day. Net volume was only half of Wednesday's...but still a monstrous 55,000 contracts.
Here's the New York Silver Spot Silver [Bid] chart on its own. It shows the three rallies that got sold off before they could get anywhere...the one at the Comex open, at 10:30 a.m...and the Comex close.
The dollar index did precisely nothing yesterday...and was obviously never a factor in the precious metals market.
The gold stocks pretty much followed the ups and downs of the gold price during the New York trading session...and, like the gold price, the shares sagged a bit into the close. The HUI finished up 0.80% when all was said and done.
Despite the nice gain in silver during the New York trading session, the shares were definitely a mixed bag...and Nick Laird's Silver Sentiment Index was only up 0.29%.
(Click on image to enlarge) Thursday's CME Daily Delivery Report showed that 44 gold and 137 silver contracts were posted for delivery on Monday. The biggest short/issuers in silver were HSBC USA and the Bank of Nova Scotia with 76 and 47 contracts respectively. The biggest long/stopper was JPMorgan in its proprietary [house] trading account with 122 contracts. The link to yesterday's Issuers and Stoppers Report is here. When I posted Wednesday's Daily Delivery Report in my Thursday column, I inadvertently used the delivery numbers for palladium instead of silver. The real numbers showed that 160 silver contracts were posted for delivery on Friday...and the big long/stopper was JPMorgan in its proprietary [house] trading account. They'll have 137 contracts of that 160 total delivered today. I thank reader Harvey Organ for pointing out the error of my ways. There were no reported changes in GLD yesterday but, surprisingly enough, authorized participants over at SLV added 874,386 troy ounces of silver. After Wednesday's drive-by shooting in both gold and silver, I must admit that I'm still waiting for the big withdrawals from both ETFs. Maybe today will be the day. Then again, maybe not. The U.S. Mint started off the month with a small sales report. They sold 8,500 ounces of gold eagles...and 200,000 silver eagles. There was a lot of activity over at the Comex-approved depositories on Wednesday. They received 618,921 ounce of silver...and shipped a rather large 1,190,391 troy ounces out the door. The link to that action is here. Here's an interesting gold chart that reader Julius Adams sent me yesterday. Based on his T/A...his minimum target for gold is $2,015. We'll see how it goes.
(Click on image to enlarge) I have the usual number of stories today...and I hope you find some of them worth your while. Talk of rigging the gold and silver markets has now become respectable. Only the demise of this Anglo/American monetary and financial atrocity awaits. Gold smashing was a central bank operation, Billionaire Hugo Salinas Price says. Founder of thebulliondesk.com, Ross Norman, blames gold smashing on single seller 'out for effect'. ¤ Critical ReadsSubscribeNext Leg Of The Ponzi Revealed - Foreign Central Banks To Begin Buying US Stocks Outright Starting TodayWe were speechless when we read this Bloomberg story... The Bank of Israel will begin today a pilot program to invest a portion of its foreign currency reserves in U.S. equities. The investment, which in the initial phase will amount to 2 percent of the $77 billion reserves, or about $1.5 billion, will be made through UBS AG and BlackRock Inc. (BLK), Bank of Israel spokesman Yossi Saadon said in a telephone interview today. At a later stage, the investment is expected to increase to 10 percent of the reserves. A small number of central banks have started investing part of their reserves in equities. About 9 percent of the foreign- exchange reserves of Switzerland's central bank were invested in shares at the end of the third quarter, the Swiss bank said on its website. In other words, while the Fed's charter forbids it from buying US equities outright, it certainly can promise that it will bail out such bosom friends as the Bank of Israel, the Swiss National Bank, and soon everyone else, if and when their investment in Apple should sour. This first story, posted over at zerohedge.com yesterday, is a must read. I thank reader U.D. for being the first one through the door with this item...and the link is here. You can't make this stuff up!  John Williams: Horrendous Implications for Systemic StabilityJohn Williams just warned that current problems have horrendous implications for the markets. Williams, who founded ShadowStats, also noted that Bernanke continues to pay lip-service regarding inflation-containment. Here is what Williams had to say about the situation: "Recognition of an intensifying double-dip recession as well as an escalating inflation problem remains sporadic. The political system would like to see the issues disappear until after the election; the media does its best to avoid publicizing unhappy economic news; and the financial markets will do their best to avoid recognition of the problems for as long as possible, problems that have horrendous implications for the markets and for systemic stability." This short blog was posted over at the King World News website last night...and the link is here.  ISDA panel says no Greek 'credit event' occurredThe International Swaps and Derivatives Association on Thursday said its EMEA Determinations Committee unanimously ruled that no "credit event" has yet occurred amid Greece's efforts to restructure its debt holdings. A declaration of a "credit event" would require a payout on credit default swaps held as insurance against nonpayment. The panel ruled unanimously that a move effectively insulating the European Central Bank and national central banks from being forced to participate in the restructuring in the event that collective-action clauses are triggered didn't constitute a credit event. They also determined they hadn't received evidence that the restructuring itself met the definition of a credit event, ISDA said. The organization added, however that the situation is still evolving and that market participants could submit further questions to the body "as further facts come to light." The banks run the ISDA...and can come to any decision that's in their own self interest regarding Greece's credit default swaps...and this ruling fits that description perfectly. Many readers sent me this bit of news yesterday...but the first one in my in-box was reader 'David in California'. The story was filed from Frankfurt...and posted at the marketwatch.com website early yesterday morning. The link is here.  Greek Crisis May Test the Value of SwapsOn Thursday, the International Swaps and Derivatives Association, the industry body that decides whether swaps should pay out, said that Greece's proposed debt exchange did not currently activate swaps linked to the country's debt. But the association added that the swaps could activate at a later date. The body's decision reignites the debate over the usefulness of the default swaps. If Greece had simply stopped paying interest or principal on its bonds, the swaps would have paid out. European policy makers, however, decided last year to try to use a voluntary debt exchange for Greece as a way to avoid setting off the swaps. The maneuver was a brusque reminder for investors that there are ways to circumvent the conditions of credit-default swaps. "If a sovereign, and those trying to rescue it, tiptoe around the periphery to avoid triggering the C.D.S., it may impair the effectiveness of the C.D.S. as a risk management tool," said Bruce Bennett, a partner at the law firm Covington & Burling. This story was posted on The New York Times website late last night...and reader Phil Barlett sent it to me just minutes before I hit the 'send' button this morning. It's a must read as well...and the link is here.  The World From Berlin: 'The ECB's Policies Are Anything But Harmless'In an effort to stabilize banks, businesses and governments, the European Central Bank (ECB) opened up a massive offering this week of unlimited low-interest loans. The second such offering in just over two months was snapped up on Wednesday by some 800 banks, which collectively borrowed a reported €529.5 billion ($712.4 billion). Combined with the first offering from Dec. 21, 2011, this means that the ECB has injected more than €1 trillion into Europe's financial system. The first offering of some €489 billion encouraged banks to purchase government bonds, easing the euro zone's debt crisis and boosting investor confidence. But it remains uncertain how banks will use the cheap money this time around, though the ECB hopes that the loans with 1 percent interest rates and maturities of three years will prompt banks to lend to small- and medium-sized companies, which would in turn create jobs and improve the economy. This story showed up posted on the German website spiegel.de yesterday...and is Roy Stephens first offering of the day. The link is here.  EU finance chiefs give Greece $58bn, but stoke fears of default after delaying bail-out decisionEuropean powers approved the release of funds for Greece's international creditors but delayed the decision to bail out Athens until March 12 - perilously close to the country's default deadline. The delay will push Greece to within eight days of bankruptcy - a move likely to rattle global markets and put eurozone leaders on a collision course with America and China. World leaders have demanded immediate action to stem the |
| China's share of reserves in dollars dives Posted: 01 Mar 2012 09:25 PM PST  China has made a sharp shift away from purchases of U.S. securities, slashing the dollar's share of the country's foreign reserves in what may signal a change in strategy for managing the massive cash pile, Dow Jones calculations indicate. The portion of China's reserves parked in the U.S. appears to have sunk to a decade-low 54% as of end-June from 65% in 2010 and 74% in 2006, according to the Dow Jones calculations. The calculations are based on data on China's holdings of U.S. securities from an annual U.S. Treasury survey, and China's own data on the value of its foreign-exchange reserves. |
| A single seller drove gold down as Bernanke testified Posted: 01 Mar 2012 09:25 PM PST  Friends have sent the full text of the CIBC gold market note from Wednesday that was quoted in part at the goldalert.com website. The first paragraph of the note reads as follows... |
| Wow! Another gold fund manager gets suspicious Posted: 01 Mar 2012 09:25 PM PST  Another gold fund manager, Gabelli's Caesar Bryan, told King World News yesterday that Wednesday's bombing of gold was done by a not-for-profit seller, the strange sort of selling that keeps turning up at strategic moments in the market, and he's starting to wonder if it has something to do with central bank intervention. Welcome to Planet Earth, Mr. Bryan! This is another GATA release, which includes a must read introduction by Chris Powell...and the link is here. |
| Gold smashing was a central bank operation, Billionaire Hugo Salinas Price says Posted: 01 Mar 2012 09:25 PM PST  Hugo Salinas Price, president of the Mexican Civic Association for Silver, told King World News last night that Wednesday's smashing of the gold price was a central bank operation that should not deter anyone from continuing to acquire the monetary metals. |
Considering the dramatic smash in the gold and silver markets on Wednesday, both metals put in impressive performances yesterday – a testament to the fact that no matter what goes on the futures market, physical demand for gold and silver from around the world continues to increase. The April gold Comex futures contract gained 0.6% to settle at $1,722.20 per troy ounce, while the May delivery silver contract was up an impressive 2.9%, settling at $35.66 per troy ounce.
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