Gold World News Flash |
- Continuing gold and silver volatility
- Will EUR/USD Reach Parity By Year End?
- The Dow/Gold Ratio This Independence Day
- Silver Update 7/4/12 Silver Longs
- Yamada - Gold & Silver at Critical Points in This Cycle
- Outlook Mixed for Gold, Silver & 12 Other Major Commodities
- LGMR: Gold "Helped by Short Covering", ECB Considers Rate Cut, Monetary Policy "Will Push Gold Higher Next Year"
- The Rig Is Up
- The Ultimate History-Of-Markets Chartbook
- Where was the gold?
- Banking Regulators Drop Libor … Adopt New Standard
- The Fed And LIBOR - The Biggest Manipulator Of Them All
- A Dow/Gold Ratio for Independence Day
- Monetary stimulus chatter helps gold
- 04 Jul 2012 – " Independence Day " (Bruce Springsteen, 1977)
- Macleod - Gold Reentering Monetary System
- Gold "Helped by Short Covering"
- Commodities Pull Back Amid Correction in Risk Sentiment Trends
- ECB Ponders "Uncharted Territory", Monetary Policy "Will Push Up Gold Prices"
- Angela Merkel Celebrates Declaration of Austerity
- The Hedge Fund Experience - Good, Bad, Ugly
- Gold Stocks, How Undervalued? Part2
- Once Inflation Starts There Will Be NO Stopping It!
- Gold & Silver Are a Better Buy Today Than They Were in 2000 ? Here?s Why
- New Swiss storage option for GoldMoney customers
- Labour's Dirty Finger Prints All Over Bank of England LIBOR Manipulation Crime Scene
| Continuing gold and silver volatility Posted: 05 Jul 2012 12:56 AM PDT by Taki Tsaklanos, Gold Money:
Where has recent gold volatility come from? The increased VIX – the US stock volatility index – is only part of the answer, as the indicator was only significantly higher during the month of May. The explanation lies in the fight that is going on between the physical gold market and the paper gold market. The physical market is clearly being driven by insatiable Asian demand, coming both from private citizens and central banks. Chinese gold imports through Hong Kong have hit historic highs recently, setting the country up as the largest gold consumer in the world. Developing world gold demand continues to stabilise the gold price whenever it looks as though selling on western exchanges is about to overwhelm gold bulls.
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| Will EUR/USD Reach Parity By Year End? Posted: 05 Jul 2012 12:40 AM PDT By EconMatters The EUR/USD index edged up to 1.2533 on Wednesday, U.S. 4th of July holiday Wednesday in subdued markets ahead of the ECB rate decision to be announced on Thursday. It is widely expected that ECB officials meeting in Frankfurt will cut benchmark interest rate by between 25bps to 50 bps to a record low of below 1% for the first time, and deposit rate to zero, according to Bloomberg News surveys.
Call for ECB to reduce interest reate has increased with a deteriorating Euro economy in recent months. Uunemployment rate rose to a record high of 11.1% in May. Confidence level also dropped to the lowest in more than two and half years in June, while services and manufacturing contracted for a fifth month. The European Commission now expects the euro economy will shrink 0.3% this year.
The ECB actually has lent banks over 1 trillion euros ($1.26 trillion) through its LTRO (Longer Term Refinancing Operations) program earlier this year--basically banks get a free ride on ultra cheap cash for three years. Balance Sheet Size - ECB vs. Fed
Chart Source: Money Supply-blogs.FT.com, March 6, 2012
The problem is that the massive liquidity injection by the ECB does not seem to have trickled down to business and consumers as intended. The latest ECB data shows lending to households and businesses in the euro zone as a whole turned negative in May, while lending also declined further in the Euro member countries that need it the most--Spain, Ireland, Portugal, Greece and Italy.
At the same time, Societe Generale SA estimates that cutting the key rate by 50bps would save banks 5 billion euros a year. So further ECB rate cuts and the resulted lower borrowing costs most likely will only help pad the wallets of European banks, rather than stimulating consumer demand and the broader Euro economy.
Further Reading:
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| The Dow/Gold Ratio This Independence Day Posted: 04 Jul 2012 11:38 PM PDT Bullion Vault
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| Silver Update 7/4/12 Silver Longs Posted: 04 Jul 2012 11:18 PM PDT | ||
| Yamada - Gold & Silver at Critical Points in This Cycle Posted: 04 Jul 2012 10:56 PM PDT  With gold trading near the $1,600 level and silver around $28, today King World News is pleased to share a piece of legendary technical analyst Louise Yamada's "Technical Perspectives" report. This information is not available to the public and we are grateful to Louise for sharing her incredible work with KWN readers globally.
This posting includes an audio/video/photo media file: Download Now | ||
| Outlook Mixed for Gold, Silver & 12 Other Major Commodities Posted: 04 Jul 2012 05:40 PM PDT In*Morgan Stanley’s*latest update to their Commodity Manual, the commodities team, led by Hussein Allidina, continue to be most bullish on gold, soybeans and corn. Below is their outlook for those and 11 other commodities. Words: 700 So reports Mamta Badkar ([url]www.businessinsider.com[/url]) in edited excerpts from the original post*. [INDENT] Lorimer Wilson, editor of [B][COLOR=#0000ff]www.munKNEE.com (Your Key to Making Money!), may have edited the article below for length and clarity – see Editor's Note at the bottom of the page for details. This paragraph must be included in any article re-posting to avoid copyright infringement.[/COLOR][/B] [/INDENT] The Morgan Stanley*report says, in part, that: 1. Brent crude oil prices…are being weighed down by new sovereign debt issues in Europe and easing global tensions on oil supply. If OPEC production continues at the current rate supply will outstrip demand in 2012. 2. Natural gas will likely be over-sup...
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| Posted: 04 Jul 2012 05:02 PM PDT London Gold Market Report from Ben Traynor BullionVault Wednesday 4 July 2012, 07:00 EDT WHOLESALE MARKET gold prices held steady around $1615 an ounce during Wednesday morning's London trading – 1.1% up on last week's close – while stocks edged lower and the Dollar gained, amid reports that the European Central Bank is expected to cut interest rates tomorrow. A day earlier, gold prices rallied as high as $1624 an ounce during Tuesday's US trading, the last trading day before today's Independence Day holiday. "Short covering and bargain hunting helped support the rally," says a note from Commerzbank, referring to the practice of traders who have bet on gold going lower closing their position by buying gold futures or options. Spot silver prices meantime climbed as high as $28.41 an ounce this morning – 3.2% up on the week so far – as other industrial commodities edged lower. On the currency markets, the Euro fell below $1.26. "The main focus of the week is Thursday's ...
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| Posted: 04 Jul 2012 01:47 PM PDT My Dear Friends, Gold will go to and above $3500. This is the most important message I have sent you since 2001. There are very few of us dynamic thinkers that see everything as a trend constantly in motion. Anyone can be a static thinker, quoting recent economic figures or news headline (MSM), and Continue reading The Rig Is Up
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| The Ultimate History-Of-Markets Chartbook Posted: 04 Jul 2012 01:36 PM PDT Whether gold-bug, permabull, or deflationst; BofAML provides a little something for everyone in the most complete picture guide to 'financial markets since 1800'. A collection of almost 100 charts on asset price returns, correlations, volatility, valuations and many other market and macro factors for the US, UK, Europe, Japan, and Emerging Markets. "History does not repeat itself but it does rhyme." The Long-run in numbers:
The Long-run in years:
For your Independence Day enjoyment: You're welcome...
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| Posted: 04 Jul 2012 12:00 PM PDT Goldmoney
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| Banking Regulators Drop Libor … Adopt New Standard Posted: 04 Jul 2012 11:51 AM PDT Given the loss of confidence in the big banks in the wake of revelations that they have been manipulating the world’s most important economic benchmark – Libor – regulators in the U.S. and UK have announced that they will abandon Libor and adopt a new standard. In the run up to the change in standards, Bank of England chief Mervyn King had called for a benchmark based on actual transaction prices. King’s theory was that Libor – which stands for London Inter Bank Offered Rate – is supposed to measure that interest rates which banks actually offer to loan each other money. But regulators on both sides of the Atlantic considered such a scheme too cumbersome and “lead-footed”. Disgraced former Barclay’s chairman Agius (who until 2 days ago was also head of the British Banker’s Association), JP Morgan boss Dimon (a class A director of the Federal Reserve) and others who can easily wear conflicting hats as regulators and bankers – while holding pristine moral standards and doing God’s Work – have all suggested a more realistic standard. The new standard – announced today – would promote growth, reduce bookkeeping costs, and free regulators from having to whisper from the sidelines. It also more accurately reflects current banking practices. They call it Limor (pronouced “LieMore”). Unlike it’s predecessor, Limor – Let’s Immaculately Makeup Official-sounding Rates – reflects the prevailing view of the political class and top mainstream economists that bankers are saints who can do no wrong, whose every movement and release of gas creates jobs and stimulates the economy … in the same way that flowers spontaneously grow wherever a holy man walks. Since these great men have only the best interests of the little people in their heart, letting them make up the appropriate Limor rate will benefit the world, as the great Invisible Hand guides the markets to their divine destiny. Indeed, anyone calling for “objective” benchmarks or talking about so-called “justice” – like these heretics or these – are so lacking in faith that they should be excommunicated from the fiat land of milk and honey.
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| The Fed And LIBOR - The Biggest Manipulator Of Them All Posted: 04 Jul 2012 10:30 AM PDT Via Peter Tchir of TF Market Advisors, The Fed does everything it can to keep LIBOR low. This chart says it all.
The Fed cannot affect LIBOR directly, but in general LIBOR trades in line with Fed Funds. You can see that historically as Fed Funds was changed, LIBOR responded appropriately. There was typically some small premium to reflect the "credit risk" of banks versus the Fed, but it was relatively small, and fairly stable. 3 Month LIBOR would deviate a bit as rate cuts and hikes were anticipated in the market, but in general, it was a fairly stable game. That all started to break down in 2007. We saw the first real signs of LIBOR deviating from its normal spread to Fed Funds in the summer of 2007. The Fed responded by cutting the "penalty" rate for using the discount window, and in fact encouraged banks to use the discount window (I still can't shake the mental image of someone sitting in a dark basement with a green eye-shade doling out money to banks that request it). Then the crisis got worse. Bear needed to be rescued. Facilities such as the Term Auction Facility that had been put in earlier were increased in size. The Fed backstopped some portfolios that JPM acquired as part of the Bear Stearns deal. As the crisis re-ignited in the late summer of 2008 and peaked after Lehman and AIG, the Fed took step after step to reduce borrowing costs. The Fed was blatantly clear that it wanted borrowing costs to go down. They had the obvious tool of reducing Fed Funds to virtually zero, but when LIBOR didn't follow, the Fed took further action. The Fed did not want bank borrowing costs to be high. They increased dollar swap lines so foreign banks could borrow. The Fed stepped into the commercial paper market so banks wouldn't have to use money to meet drawdowns on revolvers. TALF was another creation to take pressure of bank lending. The FDIC allowed banks to issue bonds with FDIC backing (so not quite Fed program, but who is going to quibble). Fears that MS and GS and GE would topple the banks were alleviated by making them banks. The list goes on. The Fed has done a lot and trying to control LIBOR as a key borrowing rate is one of the things they have worked on, both directly and indirectly.
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| A Dow/Gold Ratio for Independence Day Posted: 04 Jul 2012 10:29 AM PDT | ||
| Monetary stimulus chatter helps gold Posted: 04 Jul 2012 10:15 AM PDT US markets are of course closed today for the 4th of July, but elsewhere in the world traders are still going about their merry business. Gold and silver posted strong performances yesterday on the ...
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| 04 Jul 2012 – " Independence Day " (Bruce Springsteen, 1977) Posted: 04 Jul 2012 10:05 AM PDT
04 Jul 2012 – " Independence Day " (Bruce Springsteen, 1977)
Positive close in the US although half the gains were regained in a closing squeeze in a shortened session ahead of Independence Day. Asia overall about flat with China slightly depressed by a 10m low read in Services PMI (52.3 after 54.7). First Southern European Service PMI readings better than expected (Spain 43.4, first 41.3 after 41.8 and Italy 43.1, first 43.1 after 42.3). Would need confirmation to see whether there’s a bottoming out here. French numbers likewise better at 47.9 (expected 47.3 after 45.1 in May), as was the overall EZ at 46.4 after 46. Germany dipped unexpectedly below the 50 mark, down to 49.9 (expected unch 50.3, down from 51.8 in May). Final EZ Composite PMI at 47.1 after 46.7 in May. Italian first quarter deficit surged to 8%, the second highest reading since Q1/2009 and third largest reading since EUR introduction, immediately pushing out BTPs by 5 bp, while pushing the Core tighter, and then pulling Spain back to closing levels. Germany sold EUR 4bn 5 YRS Germany at 0.52% (0.41% in June and 0.56% in May, 0.56% at COB), in today’s sole auction. EUR 800m retained for market interventions. Most watched supply of the week remains Spain’s EUR 3bn BONO auction in 3 YRS, Oct 2016 and 10s tomorrow, before the ECB (Results 10:40 CET). 3s were sold at 5.457% 2 weeks ago. On-the-run 5 YRS at 6.072%. One month ago 10s were auctioned at 6.044% in 10s (early June). Closing levels today: 4.88%, 5.45% and 6.37% (mid). ECB officials on the tickers: Once more, no more SMP! Need for deficit cuts, need for fiscal union and discipline. Is now well rehearsed mantra. Ending the morning with Bunds down to 1.48% (-6), Italy out by 10 at 5.72% and Spain by 9 at 6.31%. Other EGBs 3 to 7 tighter, but for France widening a tick. Credit those couple of ticks wider quoted at open. Equities down 0.50%. EUR a bit on the weaker side. Everything else about unchanged. With the US closed, the afternoon simply dragged on with a light ROff feeling as the Periphery drifted slowly wider, France on stand-still and the Core squeezed tighter. Credit weaker with Financials giving back yesterday’s gains and more. Sudden change of mind in equities, paring morning losses loss ahead of tomorrow in very low volume. Closing in unconvinced ROff mode and treading water ahead of tomorrow’s Spanish auction, ECB / BOE meetings and US claims numbers. EUR ticking down to low 25s Fairly restricted New Issue traffic with Italian Gas distributor SNAM profiting from the better early morning mood on Peripherals to issue EUR 1bn 4 YRS at MS +340 (price talk initially about 20bp back of BTPs; at closing through, given the weaker Italian short end).
Closing levels: 10 YRS Spreads: Luxembourg 36bp (+3); Finland 44bp (+2); Netherlands 47bp (+1); Swaps 46bp (+5); EU 85bp (+3); Austria 95bp (+6); EIB 107bp (+3); France 109bp (+9); EFSF 119bp (+3); Belgium 148bp (+8); Italy 431bp (+23); Spain 492bp (+24). EUR swap curve 2-5 YRS 41bp (-2,0); 5-10 YRS 70bp (-1,0) 10-30 YRS 42bp (+4,0). Main at 159 from 155 (2,6%); Financials at 254 after 246 (3,3%). SovX at 271 from 267. Cross at 642 from 627. Stoxx Futures at 2305 / -0,3% (from 2312). Oil 87,0/99,5 (WTI/Brent) from 87,4/100,5 (-0,4%/-1,0%). Gold at 1615 after 1620 (-0,3%). Copper at 350 from 355 (-1,4%). EUR 1,252 from 1,261 ECB deposits at EUR 807bn after EUR 802bn. Anything over EUR 800bn is quite an amount. Greek bonds guesstimates: Greece softer on the long end with 2023s up to 25.75% unch and 2042s at 22% from 21.5%. All levels COB 17:30 CET
Rest of week: Germany: Thu Factory Orders May fcst -6.0% YoY after -3.8% Fri IP fcst -1.2% after -0.7%
Click link on title or below for today’s musical support: http://www.aviewfrommyscreens.com/
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| Macleod - Gold Reentering Monetary System Posted: 04 Jul 2012 09:48 AM PDT Alasdair Macleod, writing for GoldMoney Foundation writes: Early in 2011, the London Bullion Market Association began to push for gold to be recognised by the Basel Committee on Banking Supervision as the ultimate high-quality liquid asset. It has been a planned approach involving the wider financial community, with the European Parliament voting unanimously to recommend that central counterparties (basically regulated settlement intermediaries for securities markets) accept gold as collateral under the European Market Infrastructure Regulation (EMIR). Lobbying by the LBMA certainly contributed to this favourable outcome. A growing acceptance of gold as collateral in regulated markets is forcing the Basel Committee to reconsider the position of gold as a banking asset, which currently has a 50% valuation haircut. It is now a racing certainty the haircut will be revised to zero, the same status as secure cash. This is an important development for the physical gold market, and early warning of the change was signalled by a consultation document issued by the Fed and banking regulators in the light of forthcoming Basel 3 regulations1. It must have stuck in the Fed's craw to have to circulate a proposal that "A bank holding company or savings and loan holding company may assign a risk-weighted asset amount of zero to cash owned and held in all offices of subsidiary depository institutions or in transit; and for gold bullion held in a subsidiary depository institution's own vaults, or held in another depository institution's vaults on an allocated basis, to the extent the gold bullion assets are offset by gold bullion liabilities."(Page 291 and elsewhere). There can be little doubt if history is any guide that the US Treasury and the Fed would rather not give gold a status that rivals the dollar, but they cannot boss the Basel Committee around. Ever since President Nixon took the dollar off the gold standard, the official mantra has been that gold no longer has any monetary role. To do an about-turn and accord it the same rank as dollar-cash is therefore extremely significant. Furthermore, there is an unarguable logic in favour of not penalising banks who wish to diversify their balance sheets and collateral away from fiat currencies, some of which are becoming increasingly risky in these times of systemic stress. The proposal is only at the stage where comments are invited, but it is unlikely that the banks will turn this proposal down, since it represents a secure lending opportunity and the opportunity to diversify a bank's own assets without facing a risk-weighting penalty. The proposal when implemented is certain to encourage banks to buy gold, and the bullion banks in London will hedge uncovered unallocated customer liabilities. And what is sauce for the commercial goose is also sauce for the central-bank gander: it makes no sense for the central banks to continue to marginalise gold on their own balance sheets. Instead, central banks should abandon the myth of valuing gold on their books at $42.22 and treat it as a proper monetary asset. What this proposal amounts to is no less than the official remonetisation of gold. And as the implications dawn upon the wider banking community we shall see increasing numbers of banks seeking gold-related lending opportunities and more and more bankers seeking to acquire it as a core balance sheet asset. 1Very few commentators fully appreciate its importance, a notable exception being the current issue of John Butler's Amphora Report, which is recommended reading. July 1, 2012 (Source: GoldMoney) Comment: For those with the time, the links in the story above are important reading. Thanks to James Turk for the link. (GA)
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| Gold "Helped by Short Covering" Posted: 04 Jul 2012 08:53 AM PDT WHOLESALE MARKET gold prices held steady around $1615 an ounce during Wednesday morning's London trading – 1.1% up on last week's close – while stocks edged lower and the Dollar gained, amid reports that the European Central Bank is expected to cut interest rates tomorrow. A day earlier, gold prices rallied as high as $1624 an ounce during Tuesday's US trading, the last trading day before today's Independence Day holiday.
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| Commodities Pull Back Amid Correction in Risk Sentiment Trends Posted: 04 Jul 2012 08:10 AM PDT courtesy of DailyFX.com July 04, 2012 12:30 AM Commodity prices turned lower amid profit-taking as a broad-based correction in risk sentiment trends played out across financial markets. Talking Points [LIST] [*] Crude Oil, Copper Follow Stocks Lower as Risk Appetite Trends Correct [*] Gold and Silver Under Pressure as Haven Flows Buoy the US Dollar Anew [/LIST] Commodity prices are trading a touch lower in European trade. Growth-geared crude oil and copper are following stocks lower while gold and silver are facing de-facto pressure as safe-haven flows buoy the US Dollar. The move appears to reflect corrective profit-taking as risk sentiment trends return to a “neutral” setting ahead of today’s US market holiday and Thursday’s heavy event risk rather than a particular near-term catalyst. The European Central Bank and the Bank of England are both due to deliver their monthly policy announcements, with additional easing expected on both fr...
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| ECB Ponders "Uncharted Territory", Monetary Policy "Will Push Up Gold Prices" Posted: 04 Jul 2012 05:04 AM PDT
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| Angela Merkel Celebrates Declaration of Austerity Posted: 04 Jul 2012 03:38 AM PDT Spain may have the best soccer team, but it lost control of its banking system. That's good news: the success of the Eurozone summit is not about money, but about process. For the first time in months, it appears there's a sensible path forward. For the budding euro rally to continue, actions must follow words; regardless, however, there will be investment opportunities, but don't count on the U.S. dollar to carry the day.
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| The Hedge Fund Experience - Good, Bad, Ugly Posted: 04 Jul 2012 03:38 AM PDT  Since there aren't any decent/active discussions on the HF forum, I figure I start a thread highlighting the good, bad, and ugly aspects of working at a hedge fund. This is based on my personal experiences so don't take them as gospel.Hopefully others will contribute with their own experiences over time to add more color to the discussion. It is my hope that those getting into this game will have a better understanding of what they are getting themselves into. Before I get started, this thread is really intended for people already in finance (current banking analysts/buyside professionals) as a way to start an honest discussion about HF. I'm not going to answer "I'm an undergrad looking to break into hf" type questions in this thread. If I'm in a good mood, I'll start a separate "You're an undergrad and want to break into buyside...this is what you can do" thread later. This initial post isn't comprehensive and I'll add more over time. There are plenty of thoughts I have on the subject. Background: Work as an analyst at a multi-billion dollar fundamental hedge fund, and have been here 3+ years. I work in the special situations/event driven equities group, and specialize in long positions. Read more....... 
This posting includes an audio/video/photo media file: Download Now | ||
| Gold Stocks, How Undervalued? Part2 Posted: 04 Jul 2012 03:28 AM PDT Continued from the last article... Something missing here? There is another important factor left out of this research train of thought however; and that is 'cost of production'. We have to be careful to get this right or we could end up comparing apples to oranges. Therefore to complete this line of reasoning we have to consider the profitability factor. Cash costs are confusing across the industry because they are not standardized. Royalties and other factors vary from company to company and lease to lease.
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| Once Inflation Starts There Will Be NO Stopping It! Posted: 04 Jul 2012 02:34 AM PDT “If inflation starts to head towards 5%, you can be sure it's headed for 10% because they don't have the ability to stop it now. The only antidote they have to the mess we are in, which is massively excessive debt reinforced by derivatives, is unlimited money printing. The idea that you can withdraw the punch bowl or sharply raise interest rates, it just doesn't exist, unless you want to take a complete deflationary collapse." So says John Embry in an interview with Eric King of King World News going on to say, in part: "Man can generally rule the events -*he can sort of deal with them -*but every once in a while things get so serious that the events overtake the men, and they are incapable of dealing with the event. I think we are in a situation like that.” [INDENT]Take Note: If you like what this site has to offer[COLOR=#ff0000] go [COLOR=#ff0000]here to receive Your Daily Intelligence Report with links to the latest articles posted on munKNEE.com. It’s FREE![/CO...
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| Gold & Silver Are a Better Buy Today Than They Were in 2000 ? Here?s Why Posted: 04 Jul 2012 02:34 AM PDT “I maintain that gold and silver are a better buy today than they were in 2000 because the problems are immensely worse, or at least they are recognized as being worse. I really believe people should be adding to their positions in here. Any money you don't have any use for over the next two years, it ought to be in gold and silver." So says Bill Haynes, President and owner of CMI Gold & Silver, in an interview with Eric King of King World News going on to say, in part: “the dollar…or the euro…or…both [are] going down, and people are going to trade gold and silver as safe havens. Our problem is massive debt. I think the inmates are running the asylum."* [INDENT]Take Note: If you like what this site has to offer [COLOR=#ff0000]go [COLOR=#ff0000]here to receive Your Daily Intelligence Report with links to the latest articles posted on munKNEE.com. It’s FREE![/COLOR] An easy "unsubscribe" feature is provided should you decide to cancel at any time.[/...
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| New Swiss storage option for GoldMoney customers Posted: 04 Jul 2012 02:00 AM PDT New Swiss storage option for GoldMoney customers London, 4 July 2012 - GoldMoney, the world's leading provider of gold, silver, platinum and palladium for retail and corporate investors, ...
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| Labour's Dirty Finger Prints All Over Bank of England LIBOR Manipulation Crime Scene Posted: 04 Jul 2012 01:41 AM PDT The mainstream press has been busy during the past 2 days working itself up into a frenzy of reporting, despite the fact that they are in effect reporting a 4 YEAR old story, something that I have touched on many, many times over the years that LIBOR rates are MANIPULATED by ALL parties concerned as a consequence of a series of credit crisis earth quakes that took place following the collapse of Northern Rock (a year before Lehman's), as fear driven Labour government politicians put pressure on a Panicking and Incompetent Bank of England to loosen the reins on the bankrupting, insolvent banks who took the increasingly nervous nods, winks and nudges as a licence to defraud counter parties to interest rate derivatives contracts (usually other banks). Now four years later the mainstream press is using a magnifying glass on just one aspect of market manipulation that took place during the financial crisis that ultimately will lead all the way to Alistair Darling's and Gordon Brown's Downing Street doors.
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The last couple of months have been characterised by volatility in gold and silver. Below is an overview of all daily increases of more than 4% in the gold price since 2001, both in dollar and euro terms. (data from World Gold Council). The interesting fact from an historical point of view is that each time the gold price increased by more than 4% in dollar terms, this has resulted in a strong rally. So keep an eye out for intraday increases that match or exceed this number.
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