saveyourassetsfirst3 |
- Loose Policy “Will Mean Strong Demand” for Gold, “No Emergency” in Spain Despite “Contingency Mobilization” of Bailout Funds
- Global Macro: Spotlight On Markets Ahead Of Earnings And European Resolution
- Bullish On India? Buy Gold ETFs
- Our Money Is Dying
- MidWest US Drought Fueling Talk of Soaring Food Prices
- Gold Stocks Compared to Past Bull Markets
- Soft commodities higher on Midwest harvest fears
- Argentina Dollar Ban A Sign Of Failed Socialist Policies
- "Top Fed officials set table for more easing"
- Loose Policy 'Will Mean Strong Demand' for Gold
- Gold is manipulated just as LIBOR
- Gold as an Inflation Hedge
- Why Physical Silver Is The Best Investment On Earth
- Silver Update: Paper Promises – 7.9.12
- Links 7/10/12
- Grant Williams: If They Can Rig LIBOR, They Can Rig Gold and Silver
- Gold said to be in 'lockdown' as new financial system approaches
- Jobs Fuel Selling
- Gold & Silver Market Morning, July 10 2012
- Continuing Gold & Silver Volatility
- Say it aint so.. Libor scandal extends to gold price manipulation
- The LIBOR Alarm – When Governments and Banks Disable An Early Warning System
- Channeling Kurt Richebächer’s Thoughts on the Economy
- Can Gold, Silver Prices Rise in a Growing Global Economy?
- The Sub-Zero Club Admits a New Member
- When Bailouts Don’t Work
| Posted: 10 Jul 2012 11:23 AM PDT
WHOLESALE prices for gold bullion climbed to $1597 an ounce during Tuesday morning's trading in London – their highest level so far this week – while stock markets also ticked higher following news that Spain should receive some financial assistance for its banks later this month. Silver bullion also gained, climbing as high as $27.61 per ounce, while other commodities were broadly flat. US, UK and German government bond prices fell, while on the currency markets the Dollar gave back early gains against the Euro, with the latter rallying back above $1.23. "Loose monetary policies, with a scope for more aggressive balance sheet use in the US and Europe, will keep real [interest] rates in most reserve currencies low (or negative) during 2012," says a note from Merrill Lynch analysts today. "We continue to believe that this will allow investor demand to remain strong and prices to reach our $2,000 an ounce target by the end of the year." Spain's government has been given an extra year to meet its 3% deficit-to-GDP target. Eurozone finance ministers meeting in Brussels Monday agreed that Spain should have until 2014 to meet the target. "The move hardly offers Spain a reprieve," says James Nixon, chief European economist at Societe Generale. "The same painful and sizeable adjustment will now be spread over three years instead of two." The Eurogroup of single currency finance ministers also reached a "political understanding" on using Eurozone bailout funds to directly recapitalize Spanish banks once a single European banking supervisor has been set up next year, an official statement said. Last month, the Eurogroup agreed a credit line of up to €100 billion for Spain's government to finance the restructuring of the country's banking sector. Finance ministers agreed yesterday that €30 billion can be used this month. The €30 billion is "to be mobilized as a contingency in case of urgent needs in the Spanish banking sector," said Eurogroup president and Luxembourg prime minister Jean-Claude Juncker yesterday. "There's no emergency here," added Luxembourg finance minister Luc Frieden. "There's a clear path towards stabilization…the markets have to realize that the money is there, more money than is necessary." The loans to Spain will be come from the temporary European Financial Stability Facility, and will later transfer to the permanent European Stability Mechanism "without gaining seniority status," the Eurogroup confirmed – meaning the ESM would not be a preferred creditor in the event that the full value of the loans are not repaid. Benchmark yields on Spanish 10-Year government bonds fell back below 7% during Tuesday morning's trading. Italian 10-Year yields also eased, falling below 6%. Elsewhere in Europe, Germany's Constitutional Court today began a hearing today looking at whether the ESM and the fiscal pact, which could see more budgetary powers transferred to Brussels, are in contravention of German law. The case has been brought by a collection of academics, politicians and members of the public, and could further delay the launch of the ESM, which had been due at the start of this month. "A considerable postponement…could cause considerable further uncertainty on markets beyond Germany and a considerable loss of trust in the Eurozone's ability to make necessary decisions in an appropriate timeframe," warned German finance minister Wolfgang Schaeuble Tuesday. "Some member states of the Eurozone would end up having further big problems financing themselves." The European Central Bank meantime "will do everything that is needed to improve the situation in the Euro area…within the limits of our mandate," ECB president Mario Draghi told the European Parliament Monday. Over in the US, America's economy is "right at [the] edge" of needing further policy stimulus, Federal Reserve Bank of San Francisco president John Williams said Monday. "If economic data keep coming in below our expectations…then I think we would need more [policy] accommodation," said Williams. A day earlier, two other Fed presidents said they could see a case for further accommodation measures such as more quantitative easing. "There's skepticism that such actions will have a significant impact," says Standard Bank currency analysts Steve Barrow. "Many countries are in, or close to, a liquidity trap. In a liquidity trap monetary policy becomes ineffective and fiscal policy is super-effective…if major policymakers get together and really decide to try to grow the global economy they need to co-ordinate fiscal expansion, not monetary expansion." In New York, the speculative net long position of Comex gold futures and options traders – calculated as the difference between bullish and bearish contracts – rose 18.6% in the week ended last Tuesday, data released by the Commodity Futures Trading Commission show. The value of China's trade balance meantime jumped by nearly 70% to $31.7 billion last month, according to official data published Wednesday. Export growth slowed however, falling from an annual rate of 15.3% in May to 11.3% last month. Growth in imports saw a bigger slowdown, growing by 6.3% in the year to June, compared to 12.7% year-on-year to May. "[We expect] the government to introduce more policy easing measures to offset the slowdown in export growth," says Bank of America Merrill Lynch economist Lu Ting in Hong Kong. "There will be huge stimulus." Ben Traynor Gold value calculator | Buy gold online at live prices Editor of Gold News, the analysis and investment research site from world-leading gold ownership service BullionVault, Ben Traynor was formerly editor of the Fleet Street Letter, the UK's longest-running investment letter. A Cambridge economics graduate, he is a professional writer and editor with a specialist interest in monetary economics. (c) BullionVault 2011 Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.
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| Global Macro: Spotlight On Markets Ahead Of Earnings And European Resolution Posted: 10 Jul 2012 10:40 AM PDT By Andrew Sachais: Equities (SPY) look to be in a process of correction, and with all of the uncertainty surrounding earnings, and European progress, a move back to the trend line looks warranted. Yields of both Italian and Spanish sovereigns have felt the brunt of immaterial European rhetoric leaving markets in seemingly identical positions week after week. Although there was a concerted effort of easing at the end of last week from China, BOE, and ECB, this kind of relief is only a slice of the overall pie. Continued idleness by the European council with respect to direct injection into Spanish banks, clarifying ESFS/ESM flexibility in stabilizing markets such as Italy, and progression towards a supervision mechanism will only keep markets volatile. A consequence of this behavior has led to an Iron Curtain of sorts dividing yields of both Northern and Southern regions. As banks look to draw their lines, the Northern region Complete Story » |
| Bullish On India? Buy Gold ETFs Posted: 10 Jul 2012 10:22 AM PDT By Stoyan Bojinov: Eurozone debt drama continues to hog the headlines as the seemingly never-ending struggle to ensure financial stability in the currency bloc takes its toll on investors' confidence. Lackluster economic data releases on the homefront haven't done much to restore confidence in the global recovery, prompting investors to search far and wide for uncorrelated sources of returns. Previously a hot spot for unparalleled growth, emerging markets now appear to be plagued by the same clouds of uncertainty looming over much of the developed world. Dismal economic growth expectations for the eurozone and a sluggish recovery at home have undoubtedly put pressure on developing regions. India's economy in particular has been nothing short of a roller-coaster ride for investors; the nation's GDP was growing at a blistering 9.4% in 2010, although intensifying economic woes around the globe have created major headwinds for this Asian giant. India's GDP has been steadily declining since Complete Story » |
| Posted: 10 Jul 2012 09:43 AM PDT
from peakprosperity.com: A question on the minds of many people today (increasingly those who manage or invest money professionally) is this: How do I preserve wealth during a period of intense official intervention in and manipulation of money supply, price, and asset markets? As every effort to re-inflate and perpetuate the credit bubble is made, the words of Austrian economist Ludwig Von Mises lurk ominously nearby: There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner, as the result of a voluntary abandonment of further credit expansion, or later, as a final and total catastrophe of the currency system involved. Keep on reading @ peakprosperity.com |
| MidWest US Drought Fueling Talk of Soaring Food Prices Posted: 10 Jul 2012 09:26 AM PDT
from traderdannorcini.blogspot.ca: The fierce drought that has gripped the lower section of the US corn belt and has been ravaging both corn and soybeans in the region has sent corn futures limit up today and soybeans for the front month July contract to a new all time high. That has sent shudders through the minds of some traders who are convinced that it is only a matter of time before all of this feeds through to the supply chain. REsult – higher grain prices meaning higher food prices in general. This phenomenon has gotten hedge funds back to buying commodities across the board this morning even with the equity markets careening lower. Gold and particularly silver are getting money inflows as a result. Keep on reading @ traderdannorcini.blogspot.ca |
| Gold Stocks Compared to Past Bull Markets Posted: 10 Jul 2012 09:13 AM PDT Considering the history of five bull markets, we are looking for the HUI to sustain a breakout to new highs within the next 9-12 months. The gold stocks could struggle for a few months as uncertainty in Europe creates uncertainty in the gold market. |
| Soft commodities higher on Midwest harvest fears Posted: 10 Jul 2012 09:01 AM PDT
from goldmoney.com: Gold is stuck in a channel between $1,575 and $1,600, with consolidation remaining the name of the game. Bulls were encouraged somewhat yesterday by talk from the presidents of the San Francisco, Chicago and Boston Federal Reserve banks, all of whom underscored their support for dovish Fed policies. The dollar came under selling pressure following this news, while precious metals recorded modest gains. Interestingly, Jesse's Café notes that the St Louis Fed has started tracking London gold prices as part of its Federal Reserve Economic Data (FRED) series. So officialdom is not quite as uninterested in the yellow metal as they would have you believe. These comments from Fed officials partially offset bearish news from elsewhere in the world. Spanish interest rates once again spiked higher, while falling Japanese machine tool orders and pessimistic growth forecasts for Vietnam and Hong Kong also added to the sense of pessimism about Asia. Chinese inflation fell 0.6% May to June, the biggest drop in two years, though this will allow the People's Bank more wiggle room in terms of stimulus efforts. Keep on reading @ goldmoney.com |
| Argentina Dollar Ban A Sign Of Failed Socialist Policies Posted: 10 Jul 2012 08:54 AM PDT
from news.investors.com: Socialism: In the latest chapter of Argentina's war on economic reality, President Cristina Fernandez has banned the buying of dollars in a bid to halt capital flight. It's a market verdict on her policies, and it won't stop dollarization. Putting dollar-sniffing dogs on outbound ferries from Buenos Aires to Uruguay apparently didn't halt Argentinians' desire to get their money out of the country. After losing a billion dollars a month to capital flight by small investors in 2011′s fourth quarter, Argentina continues to lose about half that amount as citizens send assets out of the country. And why shouldn't they? In the last three years, Argentina's government has seized private pensions to pay for pork barrel social programs, raising government spending to 38% of GDP. Keep on reading @ news.investors.com |
| "Top Fed officials set table for more easing" Posted: 10 Jul 2012 05:53 AM PDT http://www.reuters.com/article/2012/...86806020120709 QE3 on the way? Some kind of "easing?" I think if we hear officially of more printing, gold goes up $100+ that day. |
| Loose Policy 'Will Mean Strong Demand' for Gold Posted: 10 Jul 2012 05:46 AM PDT Wholesale prices for gold bullion climbed to $1,597 an ounce during Tuesday morning's trading in London – their highest level so far this week – while stock markets also ticked higher following news that Spain should receive some financial assistance for its banks later this month. |
| Gold is manipulated just as LIBOR Posted: 10 Jul 2012 05:32 AM PDT "When push comes to shove, silver and gold are money." video here: http://video.cnbc.com/gallery/?video=3000100465&lay=1 Gold is manipulated just as LIBOR was and for same reason, Naylor-Leyland tells CNBC Submitted by cpowell on Tue, 2012-07-10 03:07. Section: Daily Dispatches 11p ET Monday, July 9, 2012 Dear Friend of GATA and Gold: Cheviot Asset Management Investment Director Ned Naylor-Leyland seemed to make his fellow panelists on CNBC Europe very uncomfortable today as he asserted that the gold and silver markets have been manipulated just as the LIBOR interest rate was manipulated, and for the same reason -- to disguise trouble in the world financial system. Naylor-Leyland also said that market manipulation was also the purpose of the British gold sales of a decade ago. Looks like the gold and silver manipulation issue is becoming irresistible. Naylor-Leyland's interview is not quite five minutes long and it's posted at the CNBC video archive here: |
| Posted: 10 Jul 2012 05:32 AM PDT Gold, as other traditional inflation hedges like other commodities, property, and inflation-linked bonds, is likely to outperform mainstream financial assets when inflation is high. Strategically, gold is recommended as a portfolio diversifier. |
| Why Physical Silver Is The Best Investment On Earth Posted: 10 Jul 2012 05:18 AM PDT |
| Silver Update: Paper Promises – 7.9.12 Posted: 10 Jul 2012 05:16 AM PDT |
| Posted: 10 Jul 2012 03:21 AM PDT SPACE WORMS LIVE LONG AND PROSPER Discovery 'New McCarthyism' Described by Climate Scientist Michael Mann ABC. I get so annoyed when readers insist that there is a conspiracy promoting concerns about human-induced climate change. Follow the money. Hint: it ain't scientists who are pushing PR, and the big money isn't behind green tech or taxes on carbon. Or go read the book Agnotology. Great white shark sightings up on East and West Coasts: What are they after? Christian Science Monitor. Do the math. You are way way more at risk from drunk drivers than sharks. UCLA develops world's fastest camera to hunt down cancer in real time ExtremeTech (Chuck L). Sounds a little like Carcinoma Angels. Clinton takes jab at China by linking political openness, prosperity in Mongolia CBS China rebalancing, my butt MacroBusiness Economic Slump Weakens China's Trade Growth Associated Press China heads for a deflationary shock Ambrose Evansp-Pritchard, Telegraph Eurozone talks stuck on detail of bank rescue fund plan Guardian. This looks consistent with the Wolfgang Munchau piece we posted on yesterday, that there really was no deal on bank rescues (as in the vague commitment did a crappy job of papering over fundamental disagreements). But this FT story suggests not: Eurozone draws up Spanish aid blueprint. This tries to square the circle: European technocrats squabble over the spoils MacroBusiness Liborfest!
Obama's Administration Killed a 16-Year-Old American and Didn't Say Anything About It. This Is Justice? Tom Junod, Esquire Obama Has a Serious Tax Credibility Problem Jon Walker, Firedoglake Maddow befuddled by snooty Romney donors: These must be leftist protesters Raw Story Higher Political Spending by Unions Wall Street Journal. This means they are really bad at it. Wall Street's Captive Arbitrators Strike Again William Cohan, Bloomberg (K. Ackermann) Major Rent Strike Against Millionaire Slumlord Catches Fire in Brooklyn Alternet (Carol B) Tarnished CEO Dimon faces the grinder New York Post Indentured Students Rise As Loans Corrode College Ticket Bloomberg Consumers Credit Jumps… a Good Thing? EconomPic Data Big Dealers Sweat as Swaps Face Reckoning Wall Street Journal Robert Samuelson Blames the 60s Again Dean Baker The curse of advanced economies in resolving banking crises VoxEU * * * Lambert here: D – 60 and counting* If by a "Liberal" they mean someone who looks ahead and not behind, someone who welcomes new ideas without rigid reactions, someone who cares about the welfare of the people — their health, their housing, their schools, their jobs, their civil rights, and their civil liberties — someone who believes we can break through the stalemate and suspicions that grip us in our policies abroad, if that is what they mean by a "Liberal," then I'm proud to say I'm a "Liberal." — JFK, on accepting the New York Liberal Party nomination Occupy. #NATGAT: "Multiple organizers told [City Paper weekly] that one member – known as "Sage" – had been accused by six different women of sexual harassment over the course of National Gathering. They said he had also been making racist, sexist comments to multiple members of the movement. He was asked to leave and at one point, Occupiers formed a barricade to keep him from entering the camp." AZ. ObamaCare: "If the feds can't force Arizona to move forward with the massive Medicaid expansion, it's a near certainty the Republican-led Legislature won't do it for them." FL. Public records: "A reader did a Miami Dade County Public Records request. He had 6 queries. [The charge:] $888.00." In what sense are these records public, then? IA. Code enforcement: "Supporters of urban chickens say it's time the Iowa City council allow residents to raise chickens in their backyards." LA. Letter to the Newhouse family: "[I]t is nearly impossible to find a kind word in these parts about your family or your plan to take away our daily newspaper" Check the signatures. … Water: "But after three decades of extensive efforts to clean it up, nitrate along the rivers is getting worse. In Hermann [Mo, in the center of the Missouri River basin], the levels have increased 75 percent since 1980, according to USGS research published last year…. And no one – at least yet – has figured out exactly why. … The pollution that creates a [6,800 square mile] dead zone [in the Gulf] 1,247 miles downstream." ME. ObamaCare: "ME Gov. Paul LePage has refused to give in to demands that he apologize for comparing the Internal Revenue Service to the Gestapo, but he said he never intended to insult anyone or 'minimize' the misdeeds carried out by Nazi Germany's secret police force." A non-apology apology. MN. "A provisional ballot ain't a vote… If you ballot was rejected for bull**** reasons, how could you appeal?" NY. Tinpot tyrants: "The NYPD has created a "wanted" poster for a Harlem couple who film cops conducting stop-and-frisks and post the videos on YouTube — branding them "professional agitators" who portray cops in a bad light and listing their home address." (MR) … Fracking: "In reassuring the public that shale gas development is safe and beneficial, officials within the DEC's Mineral Resources Division have publicly denied that hydraulic fracturing uses dangerous chemicals." OH. Fracking: '[Concerned Citizens of OH:]" I don't think people are adequately educated about the impact of this industrial process, or (know) that local zoning was totally removed from the hands of local government. I think most people are not aware of that." (danps) PA. Fracking: Rural counties roar ahead, suburban counties to be studied. Alrighty then. … Money: "According to new filings, Obama has collected $2.8 million from donors in Philadelphia zip codes. That's far less than the $4 million he collected from the same area at a similar point during the 2008 campaign." TN. Meme watch: "He'd not heard of the Teavangelical label [coined by CBN news reader in new book] before but said that it fits. His faith shapes many of his political views." TX. ObamaCare: "In a move that surprised exactly no one, Rick Perry announced Monday that TX will not create a health insurance exchange nor expand Medicaid." "[PERRY in letter to Sibelius:] I look forward to implementing health care solutions that are right for the people of TX. I urge you to support me in that effort. In the meantime, [health reform's] unsound encroachments will find no foothold here." Nullification?! … Voting: "In TX, for example, concealed handgun licenses are an acceptable form of [voter] ID under a new law that's yet to take effect, but student ID cards are not." VA. Privatization: "One of our state's most prized assets [the Port of Virginia] is about to be sold (ok, leased for a really, really long time) to a private operator. … without any input from the public. We've seen this play before, most recently with the implementation of tolls on the tunnels in our area. We also are seeing it locally, as both Norfolk and Virginia Beach take on new zoning plans." …. Privatization: "After the [single] July 17 meeting [on the Port of Virginia], panel members will be required to sign nondisclosure agreements giving them access to sensitive financial details of any proposed deals, but leaving them extremely limited as to what they could share with the public." … Snark watch: "Rosalynn Carter: OMG! You mean this was a political party convention here in the United States of America, in the state of Virginia? Is it really possible that a major American political party could hold contested elections in the 21st century and make this much of a mess of it? " Super article on state party shenanigans with reform proposals. The empire. Cartagena redux? "In pre-dawn darkness, a Toyota Land Cruiser skidded off a bridge in [Mali] in the spring, plunging into the Niger River. When rescuers arrived, they found the bodies of three U.S. Army commandos — alongside three dead women." … Charles Pierce reacts: "There is democratic logic and there is imperial logic, and they are mutually and forever exclusive. Making secret war makes war a secret only to the people footing the bills." So, you're voting for the emperor, then? ObamaCare. A sober look, LA Times: "Millions of Californians will still lack insurance even after a massive coverage expansion. Medical costs and premiums are expected to keep rising, at least in the short run. And many of those who do gain coverage could have a tough time finding a doctor to treat them." … Taxing power: ObamaCare's mandate is neither a tax nor a penalty. It's a "mixed exaction" (A theory of the tax power that justifies – and may have informed –Roberts's analysis.) … The mandate: "[In MA,] some 97 percent of the taxpayers are complying with new health reform filing requirements." Jobs. Nate Silver: "Is this the new normal?" Simple answers to simple questions: Yes. The trail. Money: "Ominously for the Obama re-election campaign, Romney is beginning to bring in money from small donors in substantial numbers as well as wealthy donors. His campaign said about 20% came from small donors." Money: "The Democratic Senatorial Campaign Committee today asked the Federal Election Commission to investigate [Crossroads GPS, Americans for Prosperity, and 60-Plus Association,] Republican-leaning nonprofits who are spending millions on the 2012 campaigns. DSCC Executive Director Guy Cecil: 'These organizations are actually claiming that they are no more political than a church, a synagogue, or even the American Cancer Society. It is patently absurd'" (SW). The FEC is comprised of three Ds and three Rs. … Razor thin margin: "Why isn't President Obama doing worse? The answer favored by political professionals is that Obama is playing a mediocre hand well, while his GOP rival Mitt Romney is failing to leverage his strong hand — particularly on the economy." … Streamers: "House Ds are taking it to another level. They're now recording video of the homes of GOP congressmen and candidates and posting the raw footage on the Internet for all to see." How do we know it's raw? Robama vs. Obomney watch. Failure to communicate: "It took several weeks for Burton and Sweeney to come up with a name for [Priorities USA]. To their irritation, every slogan they considered had already been trademarked by Republicans." "Jail the banksters!" has been trademarked by the Rs? That's remarkable. Romney. "The real question is when will we see Romney start to define himself on his terms? Where is the People Magazine profile? Or the Good Housekeeping interview?" Obama. Middle class tax cuts: "The move underscored Obama's support for raising taxes on higher incomes and his effort to cast himself as a populist." Banksters in orange jump suits doing the perp walk; that would be populist. … Middle class tax cuts, White House communications director tweet: "[PFEIFFER]: Will the GOP join him to provide certainty for 98% of Americans?" Bizarrely out of touch. "Certainty," sibling to the Confidence Fairy, is a corporate frame. 99% of Americans are concerned about the certainty of paying the bills this week, not something far off next April. A job helps. …. Bain flap: Press plays stenographer, gives misleading Obama claims a free pass. * 61 days 'til the Democratic National Convention ends with som tam on the floor of the Bank of America Stadium, Charlotte, NC. JFK was elected in 1960. * * * Antidote du jour:
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| Grant Williams: If They Can Rig LIBOR, They Can Rig Gold and Silver Posted: 10 Jul 2012 03:12 AM PDT ¤ Yesterday in Gold and SilverIt was a quiet trading day as far as volume went...and that was pretty much reflected in the price action as well. By the time that the Comex opened yesterday morning, gold was flat from Friday's close. Gold rallied a few dollars starting around the London p.m. gold fix...and then rose very quietly and very slowly, with the high tick of the day...such as it was...coming shortly after 2:00 p.m. in electronic trading. It got sold off a bit from there. Gold closed at $1,587.30 spot...up $4.90 on the day. Net volume was only 76,000...so I wouldn't read a whole heck of a lot into anything on the Kitco gold chart below.
Silver's price action was a bit more exciting, but only just. The low of the day came shortly after trading began in the Far East on Monday morning...and then it moved back to almost unchanged by minutes after 9:00 a.m. in London. From there it began a more serious rally...and the high of the day, just like in gold, came minutes after 2:00 p.m. in New York...and then got sold off from there. Silver closed up 24 cents at $27.34 spot. Volume was basically vapour at 18,000 contracts. Not much to see here, folks.
The dollar index peaked at 83.43 shortly after it began trading in the Far East on their Monday morning...and it was all down hill [albeit slowly] from there. The index closed down about 20 basis points.
The gold stocks got sold off at the open of equity market trading at 9:30 a.m. Eastern time...with the low of the day coming shortly before noon local time. The high came about 1:45 p.m...and a secondary high came shortly after 2:00 p.m...which was gold's high tick of the day. From there, the stocks got sold off a bit, but rallied into the close. Despite the fact that the gold spent the entire New York trading session in positive territory, the HUI finished the day down 0.48%. Yahoo.com is still have problems with their HUI chart, as still shows Thursday's data...and I thank reader Scott Pluschau for providing the one below.
(Click on image to enlarge) Although there were quite a few green arrows in the silver stocks yesterday, every single stock that constitutes Nick Laird's Silver Sentiment Index finished in the red...and it closed down 1.54%.
(Click on image to enlarge) The CME's Daily Delivery Report showed that only 4 silver contracts were posted for delivery tomorrow...and according to the CME's preliminary Daily Volume/Open Interest Report for Monday, there are still 1,781 silver contracts open in July. Well, it was a bifurcated day in the ETFs yesterday, as GLD reported that 116,427 troy ounces of gold were withdrawn...and SLV reported that an authorized participant added 1,551,622 ounces of silver. The U.S. Mint had a sales report yesterday. They sold 2,000 ounces of gold eagles...1,000 one-ounce 24K gold buffaloes...and 385,500 silver eagles. The changes in Friday's inventory levels in silver over at the Comex-approved depositories on Friday are not worth reporting. Both the new Commitment of Traders Report...and the monthly Bank Participation Report were posted on the CFTC's website yesterday. I'm a little pressed for time today, so I'm only going to touch on the COT Report...and leave the details of the BPR until tomorrow's column. It was no big surprise to me that we had deterioration in both gold and silver during the reporting week that ended at 1:30 p.m. a week ago today. However, I had previously entertained the idea that there might have been some short covering going on during the two-day rally that occurred during that time, but that was not the case at all. It was pretty much the same old, same old...as the raptors sold some of their long positions for a profit...and JPMorgan et al were the short sellers of last resort once again...especially in gold. Ted Butler reported that JPMorgan actually covered about 1,100 silver contracts. In silver, the Commercial net short position blew out by 5,343 contracts...or 26.7 million ounces of silver...and as reader E.F. pointed out, the silver raptors were the big long contract sellers into the rally during the reporting week...and it was mainly them that were capping the price. In gold, JPMorgan et al increased their net short position by 22,477 contracts...or 2.25 million ounces. I'll have more on this in 'The Wrap'. With it being a Tuesday, I have quite a few stories for you to wade through...and the ones that are gold related are certainly worth your time. With no volume worth speaking of, it was very easy for any interested party to keep precious metal prices in check. Gold is manipulated just as LIBOR was and for same reason, Naylor-Leyland tells CNBC. Gold said to be in 'lockdown' as new financial system approaches. Does Central-Bank Buying Signal the Top? ¤ Critical ReadsSubscribeScranton Mayor: Minimum Wage For All...or Become StocktonThe infamous city of Scranton, PA has had financial troubles for a couple of decades - losing population since the end of WWII - but as NPR reported this weekend, the $16.8 million budget gap that Mayor Chris Doherty is trying to fill (and the disagreements between his taxation proposal and the city council's borrow-more-money view) has driven the mayor to an incredible action. Doherty has reduced everyone's pay - including his own - to the state's minimum wage of $7.25 per hour. In an ironic choice of words, the desperate mayor noted: "I'm trying to do the best I can with the limited amount of funds that I have," Doherty says, "I want the employees to get paid. Our people work hard — our police and fire — I just don't have enough money and I can't print it in the basement." NPR continues, After paying workers Friday, the city had only about $5,000 left in the bank. More money flowed into city accounts that day, but it was still not enough to pay the $1 million the city still owes to its nearly 400 employees. This Zero Hedge story from yesterday was sent to me by Casey Research's own John Grandits...and the link is here.  $220 Million May Be Missing From Brokerage Whose CEO Reportedly Tried To Commit SuicideAn Iowa-based brokerage CEO who'd been hospitalized after attempting suicide, prompted the National Futures Association to investigate account irregularities at his firm. Now, via ZeroHedge, we have the details of the complaint: The NFA claims that at a fund wholly owned and directed by the CEO, Russ Wasendorf, executives may have lied about a $220 million shortfall in customer segregated accounts. Then, today, per the complaint: "NFA made an inquiry with U.S. Bank and learned that rather than the $225 million that PFG had reported being on deposit at U.S. bank just days earlier, PFG had only approximately $5 million on deposit at U.S. Bank." The NFA also found PFG's $200 million shortfall may date back as far as February 2010. This story was posted on the businessinsider.com website yesterday evening...and is courtesy of reader 'David in California'. I was one of the first to find out about this whole sordid mess yesterday afternoon when Chicago reader J. Ackers sent me an e-mail about it...and it was a few hours after that, that it hit the Internet. It's a must read for sure...and the link is here.  That 'Fiscal Cliff' You're Worried About? It's Already HereThe much-bandied about "Fiscal Cliff" is already here, according to economists and investors, as businesses curb spending in anticipation of the higher tax rates and reduced spending set to be enacted at the end of this year. "The fiscal cliff is not just a year-end story," wrote Michelle Meyer and the economics team at Bank of America Merrill Lynch in a report to clients. "We expect the uncertainty shock to be realized in the coming months, escalating before the election." The economists argue in the report that businesses have already started to curb investment and hiring plans in the face of this tightening of fiscal policy, further cutting into GDP. This CNBC story was sent to me by West Virginia reader Elliot Simon yesterday...and the link is here.  Fed Officials Set Table for More EasingFederal Reserve policymakers on Monday laid the groundwork for a third round of bond purchases, saying the U.S. recovery was weak and unemployment far too high. "We are right at that edge, that if economic data keep coming in below our expectations — and our view is we are not making progress on our mandates, or we don't expect to make progress on our mandates — then I think we would need more accommodation," San Francisco Fed President John Williams told reporters after a speech in the resort area of Coeur D'Alene, Idaho. But, underscoring the divisions at the U.S. central bank, Richmond Fed President Jeffrey Lacker reiterated his opposition to a new round of stimulus in an interview with Bloomberg Radio. Another attempt to push on a string? I thank Elliot Simon for bringing this CNBC story to our attention. The link is here...and as Elliot said in his covering e-mail..."Should I laugh or cry? I think I'll laugh - it's better medicine."  Roubini: 2013 Perfect Storm May Surpass 2008 CrisisHere's a 3:43 minute video interview posted over at the bloomberg.com website yesterday. He finally gets it right. It's worth watching, as he calls it the way it really is for the first time that I can remember...but nothing you haven't heard about in this column already. I thank reader Richard Craggs for sending it...and the link is here.  German President Demands Merkel Explain 'Why Germany Needs To Save The Euro'While we have been surprised by the lack of public consternation within Germany at the real levels of servitude that an ungrateful Europe is trying to shove down the German taxpayer's throats; this week it appears the rubber is starting to meet the road. As Europe Online reports, German President Joachim Gauck called for Chancellor Angela Merkel to explain why Germany needs save the euro - at great expense to the country's taxpayers - and what will be necessary. In a TV interview, Gauck said that Merkel "has the duty to describe in great detail what it means [to stay in the Euro], including what it means for the budget". In a somewhat shockingly honest (for a European leader) comment he said that the political establishment has struggled to explain why it is vital for Germany to do its part to save Europe's currency union. Perhaps reflecting Juncker's Modus operandi, Gauck added that "sometimes it's hard to explain what this is all about. And, sometimes, there's a lack of effort to openly tell the populace what is actually happening." This story was posted over at the zerohedge.com Internet site on Sunday...and I thank reader 'David in California' for sending it. The link is here.  Euro Finance Ministers Agree on Bailout for SpainEuro area finance ministers agreed early Tuesday on the terms of a bailout for Spain's troubled banks, saying that €30 billion ($36.88 billion) can be ready by end of this month. The finance ministers for the 17 countries that use the euro as their official currency will return to Brussels on July 20 to finalize the agreement, having first obtained the approval of their governments or parliaments, eurozone chief Jean-Claude Juncker said early Tuesday morning. As part of the agreement with Spain, finance ministers from all 27 European Union countries are expected Tuesday to approve a one-year extension, until 2014, of Spain's deadline for achieving a budget deficit of 3 percent. I am already underwhelmed. This story was posted on The New York Times website late yesterday evening...and I thank reader Phil Barlett for sending it along. The link is here.  Euro Zone Fragmenting Faster Than EU Can ActSigns are growing that Europe's economic and monetary union may be fragmenting faster than policymakers can repair it. Euro zone leaders agreed in principle on June 29 to establish a joint banking supervisor for the 17-nation single currency area, based on the European Central Bank , although most of the crucial details remain to be worked out. The proposal was a tentative first step towards a European banking union that could eventually feature a joint deposit guarantee and a bank resolution fund, to prevent bank runs or collapses sending shock waves around the continent. But the rush to put first elements of such a system in place by next year may come too late. This is another CNBC story from Elliot Simon...and the link to that is here.  The Perfect Storm - Santelli Meets FarageThe undisputed champion of European political ranting (UKIP's Nigel Farage) discussed the sad real |
| Gold said to be in 'lockdown' as new financial system approaches Posted: 10 Jul 2012 03:12 AM PDT  MineWeb's Lawrence Williams today reports about market analyst Paul Mylchreest's new Thunder Road Report, which describes gold as being in "lockdown," presumably by central banks straining to maintain their market-rigging power. Williams says Mylchreest "believes we are heading into a truly mega-financial crisis. He foresees the financial decimation of the middle class and reckons the crisis is going to result in the transition to a new financial system as the current one implodes. His best guess is that it will be either happening or perfectly obvious that it's going to happen within six to 12 months." |
| Posted: 10 Jul 2012 03:09 AM PDT The jobs report is the most recent market mover. This is written just before the Friday June 6th report. Market is lower on Monday after lower jobs report. Dow Jones Industrial Average: Closed at 12895.67 -47.15 after a continuation bull triangle breakout earlier this week before the holiday. Momentum is up and volume remains off about -18% since the 4th of July fell mid-week on the calendar. Price is above all moving averages with narrow trading ranges this week. Resistance is 12950 and support is 12850. If the jobs report is pumped up in the morning on Friday we could see a larger relief rally toward 12950-13,000 resistance. If the report is tepid and flat, the traders would probably have a flat day also but not sell-off too much unless negative news arrives from Europe. If in fact, the media can find some seriously positive news from Europe and the spreading Libor London bank mess can be contained, the Dow could rally toward 13,250 with a resistance stop at 13,000 first. S&P 500 Index: Closed at 1367.58 -6.44 on low volume and rising momentum. Major support is 1350 and resistance is 1375. With the price fully supported at a key level to hold up this trading, we think traders on Friday can springboard the price to 1375 or, perhaps even better. The jobs report is strongly relied upon and is a major market mover. Yet, most of the traders and investors understand it is specious at best. But, despite this knowledge and attitude, most play the game as it gives them a chance for strong gains on major trades. On the higher side, this index resists at 1400. However, this year we have seen four larger attempts at breaking-up and through that price. Few trades have gone much higher so we say 1400 is very hard resistance for this entire year of 2012. S&P 100 Index: Closed at 625.55 -3.08 as new support and resistance is on the closing price. The close was above all moving averages, which is bullish. Price has been rising in a technical up channel. There is hard upper price resistance at 630-640. Momentum is up and we expect further buying on a good jobs report tomorrow or Monday. Seasonally, we should top out this month by the end of the third week of July. Since we are in a major election year, traders and investors should expect larger pressures to the buy side. If negative media is reported, this index would probably not sell much if at all as the larger companies are more in the buy and hold longer term category. Expect a flat Friday or mild-uptick toward 630 resistance. Nasdaq 100 Index: Closed at 2647.47 +1.63 on lower volume and rising momentum. There is price room for this index to rise toward 2700-2750 before being caught in channel line congestion. We believe it is possible for that move over the next few days with an annual calendar sell-off correction near July 20-23. Technology shares were among the few that had buying pressure today led by Apple on rumors of a smaller I-Pad being presented this fall in September. This rumor has been substantiated by new start-up work in major Apple factory providers being reported in Asia. Expect a small increase in price toward 2700. 30-Year Bonds: Closed at 149.49 +0.47 on falling momentum, but the price has refused to drop. Euro-land continues to fail in many respects. Spain and Italy are not too big to fail and economic ministers have said so. As it stands now, only 20% of their problems can be contained and covered. This will not work but the expected crashing credit event has been postponed until fall in our view with fiddling on the edges and lots silly media news. Global traders still perceive the 30-year paper as the place to be with larger amounts of cash. This is thought of as a place for security and safety for this money; not any reasonable gain. Investors are running from most Euro paper with the exception of German bunds and some odds and ends in Switzerland. The push against the 149.00 bond price began in the second week of June and has not abated for over one month. As soon as Euro-land caves in and the media hits with more bad news, we think the 30-year bonds will fly above 150.00. Since this is no-man's land, we have to see how far is up. For now, technically speaking, its 152.00-152.50 on a former peaked-out price. XAU: Closed at 161.94 -1.65 on formerly rising but now flattened momentum. Further, the metal to shares ratio is flat as well as the gold and silver prices being stalled. The price is fully supported by all moving averages. The important 50-day average closed at 161.29 just under today's closing price. Our recommendations across the board in our newsletter today were almost 100% higher than one week ago. The trend is up but we are peaking and pausing near the end of this month. After an early month correction in August, expect a resumption of the precious metals rallies for the normal six week August trading period moving into September. Gold: Closed at 1603.70 -14.00 after touching and resisting at the major price of 1608. In after hours trading, the August gold futures are 1606.60 with a high of 1608.50. Price is still below the 200-day moving average at 1630.29. This is negative and it will take a hard push to touch that number and breakout above it. Last year gold began to rise at the beginning of July and went from under 1500 to a high of 1923 in just seven weeks. Based upon current events and technicals, we expect a rally to 1736.50 on a normal +50% retracement. With numerous adventures coming in the 4th quarter of 2012 and first quarter of 2013, gold could easily set new records above $1923 on both fundamentals and techncials over the next three quarters. Silver: Closed at 27.70 -0.56 as silver has been bottom bouncing since mid-May with three touches near the important support number of 26.62. Price is under all moving averages. Price is resisting on the 20-day moving average near 27.84. On the next important move-up in silver, we see $30.00 as resistance. Momentum has based and just crossed over to the buy side. Silver should begin to buy more heavily after the end of this week. US Dollar: Closed at 82.81 +1.01 as the Euro currency slipped under 124.00 to close after hours at 123.98 support and resistance. The dollar is close to peaking out but could go all the way to 83.50 before doing a pivot price reversal. If the Euro slips under 123.00, the next support is 122.50 and 120.00. Watch for the dollar to peak out at 83.00-83.50 and then sell back on being over bought to 82.50. The Euro then should rise to 124.50 resistance. We could see this over the next 3-4 trading days. Crude Oil: Closed at 87.01 -0.49 after finally hitting 87.50 resistance on the August futures contract. The oil trading range is 84.50 to 88.50. In just three trading days oil has jumped up nearly $10.00 on saber rattling over Iran. The next higher resistance is 88.50. Should Middle Eastern news continue to be negative or escalate in nature, we could hit 88.50 first followed by 90.00 and then 92.50 major resistance. Expect a move to 88.50 resistance over the next two trading sessions. CRB: Closed at 293.26 +0.62 on rising momentum with the CRB price gapping-up on crude oil and grain prices. Corn is going critical being hit with terrible heat in the Midwest at just the wrong growing cycle time, Crude oil is the main driver with several warships being moved into the gulf near Iran. Iran is being sanctioned and pressured on numerous complaints the most important being nuclear proliferation. We expect Russia to step in and cool things off but the US Navy is ready for anything right now. New CRB support is 290.00. Higher resistance is 300.00 near the 200-day average of 302.95. Look for prices to levitate until the end of this month and then correct normally lower to 285-280. –Traderrog         This posting includes an audio/video/photo media file: Download Now |
| Gold & Silver Market Morning, July 10 2012 Posted: 10 Jul 2012 03:00 AM PDT |
| Continuing Gold & Silver Volatility Posted: 10 Jul 2012 12:29 AM PDT The last couple of months have been characterized by volatility in gold and silver. The interesting fact from an historical point of view is that each time the gold price increased by more than 4% in dollar terms, a strong rally resulted. So keep an eye out for intraday... |
| Say it aint so.. Libor scandal extends to gold price manipulation Posted: 10 Jul 2012 12:21 AM PDT |
| The LIBOR Alarm – When Governments and Banks Disable An Early Warning System Posted: 09 Jul 2012 11:14 PM PDT Yesterday's Daily Reckoning finished off by asking what the correct investment strategy is when the world's central banks flood markets with even more money. We omitted the Bank of England adding &ound;50 billion to its quantitative easing (QE) program. Could the LIBOR scandal be the event that sideswipes the financial system and sends markets down? Hmm. We confess to ignoring the story for the first few days. Few things in life are as boring and depressing as examining the London Interbank Offered Rate. What the banks have to pay to borrow overnight and unsecured is, in a normal world, not news. In an abnormal world, rising LIBOR is an indicator of rising mistrust in the credit markets. When LIBOR rises, banks get defensive and reluctant to lend to one another. When it's not being manipulated, therefore, LIBOR is a kind of alarm in the credit markets that tells you when a bomb is about to go off. If you think of it that way — as an early warning system that borrowers may face rising short-term borrowing costs — then it's a lot easier to understand why someone would want to disable the early warning system. You just have to figure out who has the most to gain by preventing the communication of this information via LIBOR. The first thought of most of the financial press — which is both shallow and wrong — is that this is another example of free market capitalism gone greedy and bad. If big financial companies are to blame for being corrupt and deceptive, the answer must be more regulation and government control. Wrong again, morons! The 16 London-based banks whose overnight borrowing costs are used to determine LIBOR are hardly bastions of free market capitalism. The banks fund the government and the government owns some of the banks. The inter-marriage between Big Finance and Big Government means their interests are increasingly the same — and those interests are to look out for themselves at your expense. In this case, it's already being reported that the Bank of England may have actually ordered British banks to understate the cost of overnight, unsecured borrowing. Why would the BOE do so? It would do so to prevent rising borrowing costs for the British government, of course. Any central bank — representing the interest of the banks and government — would do the same. When central banks aren't manipulating the cost of money lower than the real market price, they are intervening in market prices directly to prevent borrowing costs from rising. This makes sense when you understand that central banks exist to finance government borrowing. Suppressing LIBOR is one way of preventing rising sovereign bond yields. Speaking of which, the pattern of capital fleeing from the periphery of a crisis to the centre continues. Yields on short-term French government debt have gone negative, while Spanish bond yields are again over 7%. The Wall Street Journal reports that the average yields on 13- and 24-week French bills were sold at a negative yield on Monday. Dutch and German short-term yields have also gone negative in recent weeks. 'Going negative' means that investors are willing to lose money in exchange for owning short-term northern European government debt. Ask yourself why someone would gladly pay rent for the privilege of loaning money to a government over a short term. Why? We can think of only two answers. First, a small loss is better than a big loss. Bonds are liquid, and large institutional investors who fear the share market may value liquidity more than capital gains. This tells you how bad the bear market is. Investors are willing to accept a certain loss on bonds to avoid a bigger but uncertain loss in shares. The other possibility is that these short-term government bonds are the last capital lifeboats out of southern Europe. It's capital flight in preparation for a financially segregated Europe. Northern Europe will use the euro, after jettisoning Greece and making arrangements for Spain and Italy to borrow from the ECB or one of the bailout funds. The big money in Europe may want out of the South, even if it means accepting a certain loss in Northern bonds. That is all utter speculation, but it fits with our theory of how the global monetary crisis has evolved since 2007. Marginal borrowers at the periphery are destroyed first. Money and capital migrate toward the most liquid markets. Liquidity matters more than asset quality. Credit quality is relative. This theory is fine and good. But you're still left with the question we began with: what is the correct investment strategy in an inflationary environment? If central banks monetise even more debt and buy other assets as part of future QE, should you sell everything and head for the hills? Or should you buy stocks? And if so, what kind? Tomorrow, we'll look at whether owning shares in low-priced blue chip stocks with tangible assets on the balance sheet is a better shelter for your capital than cash or commodities. If wealth destruction is guaranteed as debt is extinguished from the financial system (through write-offs or otherwise), where can you lose the least? Stay tuned! Regards, Dan Denning From the Archives... How to Survive Inside China's Financial System China's Economic Policy of Denial The Question China Has To Answer Fast to Save Its Economy How Investing in Commodities Can Prevent a Personal Financial Crisis Wouldn't it Be Nice to Not Lose Money on the Australian Share Market?
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| Channeling Kurt Richebächer’s Thoughts on the Economy Posted: 09 Jul 2012 11:04 PM PDT Reckoning today from Baltimore, Maryland…
A report in the Telegraph tells us that 172 leading economists have signed an open letter saying that 'Angela Merkel is wrong.' Which reminds us of the newspaper advertisements in the early '80s, in which hundreds of economists protested Paul Volcker's attempts to rein in inflation. If you have a flat tire, you do not want to ask an economist to fix it for you. One...on his own...might be able to do the job, assuming there are no bars nearby to tempt him away from his labors. Put two or more on the case, and you will never get back on the road. Instead, they will argue among themselves about what caused the tire deflation...theorize about how to reflate the tire...and generally make the tire flatter. And if you look carefully, you'll find several of them dropping nails on the road. So, anytime you get a group of economists signing a petition of any sort you may assume that it is a threat to the economy, the republic, or to all human life on the planet earth. In the event, however, these 172 economists may be the exceptions. Why? Because they are complaining that Ms. Merkel is giving away the store:
The other reason these 172 economists may be exceptional is that they are not 'Anglo-Saxon.' We recall, with pleasure, our old friend Dr. Kurt Richebächer:
When Kurt died, several years ago, we inherited his favorite chair. It is a dark leather chair, with a curved seat, shaped like the trans-Atlantic deck chairs on ocean liners. Once you get in, it is hard to get out. We sat in it last weekend and tried to channel Kurt. What would he have made of all this — the crash...the bailouts...the QEs...the Twists...? We wondered...we drank... And then, from nowhere, we heard his Teutonic voice.
"Uh...Kurt," we protested. We don't like to correct a shade, but we thought we should set the record straight: "We're not Anglo- Saxon...we're Irish."
Regards, Bill Bonner for The Daily Reckoning Australia From the Archives... How to Survive Inside China's Financial System China's Economic Policy of Denial The Question China Has To Answer Fast to Save Its Economy How Investing in Commodities Can Prevent a Personal Financial Crisis Wouldn't it Be Nice to Not Lose Money on the Australian Share Market?
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| Can Gold, Silver Prices Rise in a Growing Global Economy? Posted: 09 Jul 2012 10:46 PM PDT Gold Forecaster |
| The Sub-Zero Club Admits a New Member Posted: 09 Jul 2012 10:34 PM PDT Dollar Collapse |
| Posted: 09 Jul 2012 09:56 PM PDT The bailouts have not worked. Good money was thrown after bad. We are now seeing the unintended consequences. In this environment of financial uncertainty, each person needs physical gold now more than ever. It is the world's safe-haven currency. |
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