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- Monday Market Meltdown: Spain Again?
- 2 Gold Stocks To Consider From A Growth Standpoint
- CFTC’s Chilton Sees Silver Probe Concluding This Year
- Stronger Dollar “The Great Danger” to Gold Bullion Prices, Euro Falls as Spanish Regions Prepare to Seek Bailouts
- Synergy Pharmaceuticals Strengthened By Merger Agreement
- The War on Silver
- Discovery Laboratories: Company Update
- Profiting from Europe's New Gold Rush
- MineWeb Notes Jim Sinclair's Call to Arms Against Market Manipulation
- COMEX Swap Dealers Ease Back to Net Short Gold
- Spain the Latest Domino to Fall Into the Eurozone Bailouts?
- Better Places to Keep Your Money than the Bank
- Gold Market Update
- Ted Butler: The War on Silver
- Axel Merk on Inflation, Currencies and the Likelihood of a Greater Depression
- Why the U.S. Dollar Is Not Going to Zero Anytime Soon
- Daily Pfennig: Another day for the dollar…
- CFTC Silver Probe Nearing Completion: Chilton
- Bartman (Not Batman): Silver Probe Concluding This Year
- Ned Naylor-Leyland talks to Alasdair Macleod about Europe and increasing demand for allocated gold
- Financial Market Forecast is Looking Bleak
- Mumbai, We Have A Gold Problem
- Spain the Latest Domino to Fall in Eurozone Bailouts?
- 'Dollar Danger' Threatens Gold, Euro Hits 2-Yr. Low
- Silver Update: Drug Money – 7.22.12
- Gold is Trading Sideways
| Monday Market Meltdown: Spain Again? Posted: 23 Jul 2012 11:04 AM PDT  By Phil Davis: Wheeeeee! How great is this? We flipped bearish on Wednesday's poor Beige Book outlook (not to mention drought concerns and Hugh Hendry's warning that "Bad things are going to happen") and Thursday we noted it was looking a little too much like last July, where we fell off a cliff right after options expiration and my very appropriate comment at the end of Thursday morning's post was:
Fortunately, we did not wait with our Long Put List going out in the Thursday morning alert to members at 10:18, with all bearish trade ideas that included these gems:
Complete Story » |
| 2 Gold Stocks To Consider From A Growth Standpoint Posted: 23 Jul 2012 11:00 AM PDT By Matt Schilling: As the SPDR Gold Trust ETF (GLD) continues to trade downward as it has during the last three months (roughly 4.25%), there are two gold companies that need to be considered for various reasons. That said, I've established a screen that contains minimum criteria and those requirements are as follows:
Goldcorp Inc. (GG): Shares of Goldcorp closed trading at $33.28/share during Thursday's session, making the stock very attractive at current levels. Trading in a 52-week range of $31.54/share (52-week low) and $56.31/share (52-week high), Goldcorp is expected to earn $0.43/share on revenue of $1.37 billion for the second quarter. There are three reasons why I like Goldcorp at current levels. First, the company has demonstrated profit margins of 31.10% over the last 12 Complete Story » |
| CFTC’s Chilton Sees Silver Probe Concluding This Year Posted: 23 Jul 2012 10:52 AM PDT
from bloomberg.com: A four-year probe of potential price manipulation in the silver market may be completed as early as September, according to Bart Chilton, a member of the U.S. Commodity Futures Trading Commission. "I am hopeful and expect the silver investigation to conclude in the not-too-distant future, hopefully in September or October," Chilton, a 52-year-old Democrat, said in an e- mail. "It has already taken way too long." The enforcement division of the Washington-based agency, the main U.S. overseer of derivatives markets, began pursuing allegations of manipulation in the silver market in September 2008. Investigators have analyzed more than 100,000 documents and interviewed dozens of witnesses, the CFTC said in a November 2011 statement. Chilton, who didn't say whether the probe has uncovered evidence of manipulation, said previously that there had been "repeated attempts" to influence prices. "There have been fraudulent efforts to persuade and deviously control that price," he said at an October 2010 hearing in Washington. "Any such violation of the law in this regard should be prosecuted." Keep on reading @ bloomberg.com |
| Posted: 23 Jul 2012 10:06 AM PDT
from goldnews.bullionvault.com: Gold Bullion prices quoted on the wholesale market fell to $1569 per ounce Monday morning in London – 0.9% off where they closed last week – as stocks, commodities and the Euro also traded lower and US Treasuries gained, following news that two Spanish regions plan to ask for bailouts. Silver Bullion fell to $26.88 an ounce – a 1.9% drop on where it ended Friday. Volumes of Gold Bullion held by exchange traded funds (ETFs) saw net losses last week, while on the currency markets this morning the Euro hit a new two-year low against the Dollar Monday, dropping below $1.21. As a result, the US Dollar Index, which measures the Dollar's strength against other major currencies, hit a new two-year high. "The great danger for the Gold Price is the stronger Dollar, because of its long-term negative correlation to gold," says Eugen Weinberg, head of commodity research at Commerzbank. "That's definitely still dampening the interest of investors from the United States…but in Euro terms, gold is trading near six-month highs…it's more about Dollar strength than gold weakness." European stock markets sold off sharply this morning, with the Euro Stoxx 50 index of blue chip companies down around 2.5% by lunchtime, and Spain's Ibex down 5.3%. Yields on 10-Year Spanish government bonds meantime set a new Euro-era record Monday, rising above 7.5% following news on Friday that Valencia's regional government will ask Madrid for a bailout. On Sunday, the Spanish region of Murcia said it too will seek aid, with newspapers reporting several other regional governments plan to make similar requests. Keep on reading @ goldnews.bullionvault.com |
| Synergy Pharmaceuticals Strengthened By Merger Agreement Posted: 23 Jul 2012 10:03 AM PDT By VFC: Synergy Pharmaceuticals (SGYP), a company with major catalysts pending and a potential billion dollar product in the pipeline, and Callisto Pharmaceuticals (CLSP.OB) announced on Friday that the two companies have entered into a definitive merger agreement. Callisto had previously held over twenty two million shares of SGYP stock and under the terms of the agreement those shares will be cancelled and Callisto shareholders, in turn, will be granted 0.17 shares of Synergy common stock for each outstanding share of Callisto common stock. Another key takeaway from Friday's announcement is that the Synergy shares issued to Callisto shareholders would be "locked up" for eighteen months following the completion of the deal, barring a "Change of Control" event, as noted in the press release. These are key points to remember and the agreement should be viewed as an encouraging turn of events for Synergy shareholders, in my opinion. Previous to this merger Complete Story » |
| Posted: 23 Jul 2012 10:01 AM PDT
from silverseek.com: It has taken more than 25 years for me to fully comprehend a conclusion that I never wanted to reach, namely, that there is an organized war against the price of silver that has come to include the US Government. I think the US Government involvement came into being almost accidently, but even if it was an accident of sorts, that does not diminish the serious nature of what must be described as illegal activity at the highest levels. I am conflicted between feelings of sadness and outrage. Starting around 1985, I became convinced that the price of silver was being manipulated by collusive and concentrated short selling by certain commercial entities on the world's leading precious metals commodity exchange, the COMEX. Having a background in futures trading going back to 1972, it dawned on me that the concentrated and orchestrated short selling was dominating and, therefore, manipulating the price of silver. The very first thing I did after this discovery was to petition the regulators at the CFTC and the COMEX to alert them to the existence of the most serious market crime possible. My petitions fell on deaf ears but I continued to petition them through the present. Since this was in the pre-Internet era, I was limited in convincing others of the silver manipulation due to distribution restrictions. Communication was very different 25 years ago. Around 1996, I was exposed to the Internet for the first time and began to write in my spare time on that medium about the silver (and gold) manipulation. As a result, more observers came to appreciate the manipulation and took up the cause of exposing and terminating this serious market crime. Were it not for the Internet there would be no broad discussion of a silver or gold price manipulation, even to this day. Certainly, the discussion has led to multiple official inquiries into a silver manipulation by the CFTC over the past ten years. I am unaware of any investigation in any other market based upon wide public contacts to the agency. For sure, there are many who still reject the premise of a silver or gold manipulation; but at least there is a discussion about it now, thanks to the Internet. Keep on reading @ silverseek.com |
| Discovery Laboratories: Company Update Posted: 23 Jul 2012 10:01 AM PDT By Doolan Wesley: Recently, Discovery Laboratories (DSCO) made an announcement that the company has received a United States patent for providing coverage for a method for promoting mucus clearance in patients with pulmonary conditions. Some conditions that would require mucus clearance include cystic fibrosis (CF), chronic obstructive pulmonary disease (COPD), and bronchietasis. The patent gives Discovery Laboratories the green light to go ahead and pursue testing their newly FDA approved product KL4 surfactant on other respiratory diseases. Surfaxin is Discovery Laboratories' newly approved drug to treat Respiratory Distress Syndrome (RDS). It is a synthetic form of surfactant, a lipoprotein, that is necessary in everyone's lungs to prevent atelectasis, also known as alveolar collapse. Surfaxin is set to begin being marketed in the U.S. this year. If the company finds that Surfaxin is effective both to treat Respiratory Distress Syndrome and Cystic Fibrosis, Discovery Laboratories could find themselves marketing to a whole new consumer Complete Story » |
| Profiting from Europe's New Gold Rush Posted: 23 Jul 2012 09:47 AM PDT
from caseyresearch.com: Europe owns a sizable chunk of the world's natural resources. Over the past few decades, however, EU countries have mostly imported their resources. Outlandish? Maybe. But it was simply easier, cheaper, and most importantly it avoided most environmental conflicts. Getting through government regulation and facing off eco-friendly groups is a time-consuming and outrageously expensive business… a fool's errand. When you can simply import and let other countries deal with all the hassle, it made a lot of sense. But things change. When no one's got a job, it truly focuses the political agenda. Europe's job market is a mess. Demonstrators are crying out for action, for opportunity, for jobs. And mines employ a lot of people. The trend is reversing because of Europe's sluggish economy and the real benefits of the increase in local jobs and the leap in tax revenue that mining projects bring. Of course, local economies benefit. Hotels are full of transient engineers and specialists, grocery stores feed the workers, and bars serve liquor to quench their dusty throats. Then, of course, the government got involved… Brussels, 2011. Seeing the benefits of the jobs, income-tax revenues, and all-around political advantages, a "Raw Materials Strategy" was initiated in 2008, then revised and updated in 2010, and again in 2011. The aim was to encourage sustainable supplies of raw materials from within the EU. It calls for policies in support of domestic mining. So far, so good… Keep on reading @ caseyresearch.com |
| MineWeb Notes Jim Sinclair's Call to Arms Against Market Manipulation Posted: 23 Jul 2012 09:42 AM PDT
from caseyresearch.com: The gold price did nothing until the start of London trading. During the next hour or so the smallish rally added five bucks to the price before the high-frequency traders showed up…and within ten minutes of the Comex open, gold's low price tick of the day [$1,572.50 spot] was in. From that low, the gold price developed a positive bias, with the high tick of the day [$1,588.40 spot] coming at 2:10 p.m. Eastern standard time. From that point the gold price got sold down a few dollars before trading quietly into the close. Gold finished the day at $1,584.00 spot…up $2.30 from Thursday's close. Net volume was very light at around 101,000 contracts. Silver's chart pattern was pretty much the same as gold's. Silver's low tick [$26.71 spot] came at 8:45 a.m. in New York…and the high water mark [$27.56 spot] came around lunchtime…and from that high, silver more or less traded sideways into the close of electronic trading. Silver had an intraday price move of 85 cents…and when all was said and done, the price finished up a nickel from Thursday's close. Net volume was pretty decent…around 36,000 contracts. Keep on reading @ caseyresearch.com |
| COMEX Swap Dealers Ease Back to Net Short Gold Posted: 23 Jul 2012 09:21 AM PDT from gotgoldreport.com: But not a lot and they are still near flat gold which some traders read as more bullish than bearish. HOUSTON — One week ago we reported that for only the third time in the six years of Commodity Futures Trading Commission (CFTC) disaggregated trader data, commercial futures traders the CFTC classes as Swap Dealers reported a net long position in gold futures on the COMEX bourse in New York. (Link to the July 14 article.) New data released by the CFTC Friday, July 20, show that the veteran Swap Dealers are no longer net long, but they are not all that net short either. As of Tuesday, July 17, as gold edged $15.88 or 1% higher on the Cash Market in New York to close at $1,583.04, Swap Dealer commercial traders reported holding 55,690 gold contracts long and 56,308 short for a combined net short position of a small 618 lots according to data released by the CFTC on July 20. So as gold edged about $16 higher in the choppy, range bound COT trading week, the traders classed as Swap Dealers flipped from 799 contracts net long (which is unusual) back to 618 contracts net short, a net swing of 1,417 contracts added to the net short side of the equation. (A rather small move, barely visible in the chart above.) Meanwhile, as shown in our weekly recap of COMEX DCOT trader positioning yesterday, Producer/Merchant commercial traders, which include bullion banks and the largest bullion dealers, increased their net short positioning by a modest 4,636 lots to show a net 158,201 contracts net short. Continued… All the other classes of traders, Managed Money, Other Reportables and Non-Reportables reported higher net long positioning, with smaller traders doing the bulk of the net buying, as shown in the DCOT recap linked above. Swap Dealers are commercial derivatives traders who primarily trade in the form of swaps in other markets and then hedge those sophisticated positions using futures contracts. The CFTC requires all large traders to report their open positions as of the close on Tuesday each week and then releases that Commitments of Traders (COT) data to the public, usually the following Friday. A net long futures position benefits if prices rise. A net short position increases in value if prices fall. Either or both positions can be used to hedge opposite exposure in the same market or in other markets. Keep on reading @ gotgoldreport.com |
| Spain the Latest Domino to Fall Into the Eurozone Bailouts? Posted: 23 Jul 2012 09:14 AM PDT
from goldcore.com: Today's AM fix was USD 1,571.50, EUR 1,298.12, and GBP 1,011.91 per ounce. Silver is trading at $26.98/oz, €22.36/oz and £17.94/oz. Platinum is trading at $1,396.00/oz, palladium at $564.80/oz and rhodium at $1,190/oz. Gold climbed $2.90 or 0.18% in New York on Friday and closed at $1,583.90/oz. Gold initially traded sideways in Asia and then began to fall about 0.75% by the open of trading in Europe. Gold edged down on Monday due to the pressure from a stronger dollar, as worries about the Eurozone debt crisis grew after Spain looked like the next candidate for a sovereign bailout. Spain has two regions seeking aid from the central government and El Pais reported that six Spanish regions may ask for aid from the central government while Spanish bonds yields continue to rise. As the 4th largest economy in the Eurozone Spain looks likely to follow Greece, Portugal and Ireland seeking an international bailout. Keep on reading @ goldcore.com |
| Better Places to Keep Your Money than the Bank Posted: 23 Jul 2012 09:08 AM PDT
from news.goldseek.com: My local bank in Colorado is literally offering to pay me no interest –just an offensive 0.05% annually, before taxes. The interest rate triples to 0.15% when the balance exceeds $50,000. Absolutely no incentive when one considers the risks the bank imposes on your capital, retaining only pennies on the dollar of your money, then leveraging your capital — fractional banking. How can I be interested in a 0% savings rate deposited at a relatively risky institution while supporting the fractional banking system? While I do keep a small percentage diversified outside of gold and silver in dollars, I have found better ways to not only keep my money out of the bank but to help others at the same time. Run Your Own Bank – Become a Micro-Lender Why not become a micro-lender and help others? Micro-lending is the opportunity to lend small loans to impoverished borrowers who typically would otherwise not have access to capital. The microcredit concept is "designed not only to support entrepreneurship and alleviate poverty, but also in many cases empower and uplift entire communities." Leveraging the internet and a worldwide network of microfinance institutions, you can now lend as little as $25 to others (see example $825 loan below). These micro-loans provide an opportunity to help build and create wealth for those where it was not possible before. $25,755 Lent | 966 Loans — Join Team GoldSeek.com & SilverSeek.com! Keep on reading @ news.goldseek.com |
| Posted: 23 Jul 2012 08:59 AM PDT
from clivemaund.com: Most would be investors and speculators in the Precious Metals sector at this time look and behave like the raw recruits at the start of the film An Officer and a Gentlemen – listless and muttering pathetically "This might not be the bottom – it could go down again" – so listen up you 'orrible lot and pull yourselves together – by the time you are done reading this you are expected to have cleaned yourselves up, straightened yourselves out and be ready for action – and insubordination will not be tolerated. Now that I've got your attention we will start by looking at the 3-year chart for gold. On this chart we can see that following the peak attained last August, gold has been consolidating/reacting in some sort of triangular pattern. Some see this pattern as a bearish Descending Triangle and a top area. There are various reasons why this is not thought to be so. One is that there has been no speculative mania phase involving high public participation in this gold bull market so far, and as pointed out by Richard Russell, major bull markets of the type we have seen in gold typically end with such a phase. Secondly, the pattern has the attibutes of a 3-arc Fan Correction, breakout from which will be signaled by gold breaking above the 3rd fanline shown on the chart, which should trigger a powerful uptrend. The support at the bottom of the pattern is clear, important and obvious – so obvious in fact that we should not be surprised to see Big Money force a false break below it in order to trigger stops to run the little guy out of his remaining positions ahead of a surprise reversal to the upside. Nevertheless, buying here has an extraordinarily favorable risk/reward setup, as risk can be strictly limited by placing stops below the support, and upside potential from here is very substantial. What if Big Money does stage the stunt of crashing the support and your stops ARE triggered. We've got an answer to that too – buy back if the price subsequently rises back above the breakdown point, which will be evidence that the move was phoney, and accept the whipsaw loss as the price of the game. Keep on reading @ clivemaund.com |
| Posted: 23 Jul 2012 08:50 AM PDT The War on Silver Theodore Butler |July 23, 2012 - 10:32am It has taken more than 25 years for me to fully comprehend a conclusion that I never wanted to reach, namely, that there is an organized war against the price of silver that has come to include the US Government. I think the US Government involvement came into being almost accidently, but even if it was an accident of sorts, that does not diminish the serious nature of what must be described as illegal activity at the highest levels. I am conflicted between feelings of sadness and outrage. Starting around 1985, I became convinced that the price of silver was being manipulated by collusive and concentrated short selling by certain commercial entities on the world's leading precious metals commodity exchange, the COMEX. Having a background in futures trading going back to 1972, it dawned on me that the concentrated and orchestrated short selling was dominating and, therefore, manipulating the price of silver. The very first thing I did after this discovery was to petition the regulators at the CFTC and the COMEX to alert them to the existence of the most serious market crime possible. My petitions fell on deaf ears but I continued to petition them through the present. Since this was in the pre-Internet era, I was limited in convincing others of the silver manipulation due to distribution restrictions. Communication was very different 25 years ago. Around 1996, I was exposed to the Internet for the first time and began to write in my spare time on that medium about the silver (and gold) manipulation. As a result, more observers came to appreciate the manipulation and took up the cause of exposing and terminating this serious market crime. Were it not for the Internet there would be no broad discussion of a silver or gold price manipulation, even to this day. Certainly, the discussion has led to multiple official inquiries into a silver manipulation by the CFTC over the past ten years. I am unaware of any investigation in any other market based upon wide public contacts to the agency. For sure, there are many who still reject the premise of a silver or gold manipulation; but at least there is a discussion about it now, thanks to the Internet. So why did it take me so long to recognize a US government involvement in the decades-old silver manipulation? For one thing, I still don't believe that the silver manipulation (which began in 1983) was a government creation from the get go. I know many believe the motive for the silver and gold manipulation is as a means for the US Government to help keep the dollar strong in currency markets. I don't agree. Instead, I believe the origins of the manipulation can be traced to collusive and concentrated short selling for profit by large financial institutions, starting with Drexel Burnham, then on to AIG Trading, Bear Stearns and finally to JPMorgan. These were the firms at war with higher silver prices, which the US Government subsequently joined. The war against silver is not between producers and consumers, as these vital market participants interact in every market, as they must. All commodity producers want strong and consistent demand for their products from financially-healthy consumers who will continue to buy. While all commodity producers desire the highest price possible for their production, no producer wishes harm to the buyers of that production. There is no war between the actual commodity producers and consumers; both interact continuously under the law of supply and demand. The war has been waged against all silver market participants by a few well-connected financial firms and banks for the purpose of price control. This price control enables JPMorgan and others to capture profits on a variety of derivatives transactions, including COMEX futures and options contracts. This is exactly the same motive that caused Barclays to manipulate LIBOR; interest rates were manipulated for mostly short-term payoffs on derivatives contracts valued by the rates being manipulated. Likewise, JPMorgan and others manipulate the price of silver on the COMEX to capture short term profits on silver derivatives contracts. An important characteristic of the war on silver is that it is centered in the world of derivatives, as opposed to the actual world of metal production and consumption. The main objective of JPMorgan and the other silver manipulators is to take as much money as possible away from those holding the counterparty and opposite derivatives positions. Nevertheless, all producers and holders of metal are harmed when derivatives manipulation causes silver prices to fall for no legitimate supply/demand explanation, as is a regular feature of the silver market. That's because the size and intensity of trading in COMEX derivatives has grown to be much larger than the actual market for metal. In a very real sense, actual producers and holders of metal are innocent bystanders and victims of a private gun battle between opposing silver derivatives traders. Real producers and holders are being terrorized by a few derivatives traders, led by JPMorgan. I suppose some might say that this is the silver big league and that there will always be winners and losers. I can understand that, but that implies a level playing field and no cheating. Quite simply, the game is rigged and JPMorgan and the others do nothing but cheat. The proof lies in the hugely concentrated short position held by JPMorgan ever since its takeover of Bear Stearns in March 2008. Throw in the crooked High Frequency Trading encouraged by the CME Group and you have all the ingredients necessary to prove manipulation and end the war on silver. Yet the war on silver has persisted, despite the clear evidence that this market is manipulated. The reason it has persisted is because the federal agency whose primary mission is to prevent manipulation has decided to look the other way. I know that my discussions of market structure and concentration can get complicated and confusing to many, as much as I try to simplify it. But what I allege that is happening in silver is not over the heads of the CFTC. I take pains to explain it to them in their own terms and legal perspective and by using their own data. Because of those explanations, the CFTC has said it has been investigating for a silver manipulation for almost 4 years, but with no conclusion reached. By any standard, that's way too long. What finally convinced me that the CFTC is aligned with JPMorgan and the other silver manipulators on the COMEX rests on a few specific facts. One is that the agency has continued to ignore the glaring concentration on the short side of COMEX silver by JPMorgan and a few other traders. Concentration is not some term I dreamed up on a whim; it is the CFTC's most important frontline defense against manipulation. That is why the agency publishes and monitors highly detailed concentration data every week for every regulated market in the Commitment of Traders Report (COT). The Commission doesn't publish this data on my request; the concentration data are the most important feature of the COT. What the COT report has documented for years is that COMEX silver is the most concentrated major market of all on the short side. That the agency won't address this fact is beyond troubling. The second fact is the two unusual silver price events of 2011. In the first week of May 2011, the price of silver fell more than 30% and later, over a three-day period in September 2011, the price fell 35%. For a world commodity to fall that much in price within days is beyond unusual. It may be unprecedented, as I don't recall many or any such price drops in my 40 year experience with markets. Certainly, for such a price decline to occur in the same commodity within six months is unthinkable. Further, all the circumstances surrounding these two price plunges in silver point to these being manipulative moves, as nothing occurred in the real world of silver supply and demand to account for them. These price drops were shocking in that world commodities don't move like that for no reason. I had been waiting for the CFTC to file enforcement charges against JPMorgan and the CME Group for these deliberate silver price smashes; or at the very least, for the agency to make special reference to these two unprecedented price declines. It would be impossible for any other world commodity under the Commission's jurisdiction to fall 35% in days without the agency commenting on the price fall. Yet there has been no statement and no enforcement filing from the CFTC in silver. At some point, one must conclude that the CFTC does not intend to file charges or comment on what transpired in silver. By reaching that conclusion, one must also assign an alternative explanation for the agency's lack of action. The most plausible is that the agency has thrown in with the likes of JPMorgan, the CME and the other silver crooks. As I indicated previously, my best guess is that the CFTC was compromised in dealing appropriately with the silver manipulation by interference from the US Treasury Secretary who oversaw the takeover of Bear Stearns (and its giant silver and gold short positions) by JPMorgan. It now appears clear that JPMorgan extracted guarantees of future immunity for manipulation as a condition of the takeover. The Bear Stearns takeover gave JPMorgan a free "get out of jail" card from the US Treasury Dept for the continued silver manipulation. In the political pecking order, the CFTC is many rungs below the Treasury Dept. It was a deal structured that was not in the best interest of the American investing public To recap to this point, there is a war on silver being waged by JPMorgan, the CME and others on the COMEX. This war necessarily includes innocent casualties throughout the world of real silver producers and holders, even though US commodity law strictly forbids such artificial price setting. Worst of all, it is now apparent that the prime market regulator and public protector, the CFTC, has thrown in with the crooks. This is so bad, on so many levels, that one must carefully consider the future investment merits of silver. Having already done so, please allow me to share my thoughts, especially in light of the ongoing wave of almost daily revelations of impropriety and probable criminal behavior on the part of the big banks. We certainly live in an unusual time. Perhaps perversely, because of the ongoing silver manipulation and evidence that the CFTC may be complicit in illegal behavior, I believe the future price prospects for silver never looked better. Huh? Please hear me out. The continuing flow of news pointing to widespread wrongdoing by the big banks, including interest rate manipulation, increases the chance that silver has been manipulated. It appears to me that the punishment for institutional wrongdoing is quickly moving towards a criminal phase, which will likely include jail time. It would not surprise me if some regulators or self regulators were included in future criminal findings. Certainly, those swearing an oath to protect the public are not above the law. But how can I be positive about the future price prospects for silver in such an environment? The simple fact is that silver has been manipulated for decades and that has not prevented it from climbing, at times more than any other commodity. The war on silver rages on, but it does so in starts and fits, with notable price advances having been recorded along the way. The silver war cannot be considered to be in its infancy. After all, I've petitioned the CFTC about it for more than 25 years, which is an extraordinarily long period for such a thing to exist. Like all widespread financial frauds, they become undone when a critical number of observers recognize the scam and adjust accordingly. Therefore, since the silver manipulation has been in place for so many years and is now more widely discussed because of the Internet, the odds favor it ending sooner, rather than later. I know that it feels like these crooks can pull it off forever, but common sense and historical experience suggest otherwise. More importantly, this war on silver will eventually be decided on the physical level. Even though it is the derivatives world dictating (false) prices to the actual world of silver presently, it is impossible for that circumstance to exist indefinitely. Paper can overwhelm physical only as long as there is enough physical silver to go around. The point at which the current tight supply situation in silver slips into the slightest shortage, additional paper short sales won't satisfy new buyers of physical silver. That's not a theoretical discussion for silver any longer, as it had been prior to April 2011. For years, it was thought there would always be a sufficient amount of silver available, given the large world supplies thought to exist. But shortages were starting to come into place last year, which accounted for the run to near $50. Yes, the deliberate price smash on May 1, 2011 broke both the silver price and the budding shortage; but it could have easily gone the other way and if it did, we would now be looking (way) down at the $50 price mark. My point is that having come so close to a genuine silver shortage last year only increases the odds that a shortage will reemerge. The conditions that existed in the spring of 2011 are more likely to appear again than not. While it is unfortunate not to have the CFTC as an ally in the fight against the silver manipulation, there never was any previous support from the agency. Instead, time after time, the Commission always sided with the big short silver manipulators. Undoubtedly, those past denials of a silver manipulation would create embarrassing questions about the agency's historical competence if it were to admit to wrongdoing in silver now. Still, I admit to a particular disappointment in Chairman Gensler and Commissioner Chilton since they had offered so much hope through their public statements about manipulation, concentration, position limits and the need to protect the public. The war on silver is real and ongoing. Because it has lasted so long, it may feel like a war without end. Because the war mongers appear so powerful and well-connected, it may feel like they are invincible. But feelings do not always project fact. The fact is that the silver manipulators have been in retreat. This can be seen in the overall rising price and the fact that previous silver short kingpins like Drexel, AIG and Bear Stearns have truly bit the dust. The recent news surrounding the current big silver short, JPMorgan, seems to project weakness and trouble, not invincibility. Since the CFTC never aided silver producers and investors in the past, there is no great loss in the agency continuing not to do its job. If you are going to be in a war, I would think it is better to recognize that and react accordingly. That means immunizing yourself against the artificial pricing as much as possible. The best way to do that is by holding fully-paid silver positions and no margin. The worst way is by playing the very derivatives used to manipulate the price. This war is coming to an end and when it does, the wisdom of owning silver will become obvious. Lastly, it never hurts to let the regulators know what type of a job they are doing. Ted Butler July 18, 2012 http://www.silverseek.com/commentary/war-silver |
| Axel Merk on Inflation, Currencies and the Likelihood of a Greater Depression Posted: 23 Jul 2012 08:21 AM PDT
from thedailybell.com: Introduction: Axel Merk, President & CIO of Merk Investments, LLC, is an expert on the global economy, hard money, macro trends and international investing. He is considered the authority on currencies and has been named the "Currency Guru" by Morningstar. His insight and expertise have allowed him to foresee major economic developments: As early as 2003, he pinpointed the macro trend of US dollar volatility while warning about the building of the credit bubble. In 2005, Axel Merk positioned his clients to move out of real estate and protect them against a faltering U.S. dollar by investing in hard currencies and gold. In early 2007, he wisely cautioned that volatility would surge, causing a painful global credit contraction affecting all asset classes. He is a regular guest on CNBC, FoxBusiness, Bloomberg TV and frequent contributor to the Wall Street Journal, Financial Times, Barron's and other financial publications around the world. Daily Bell: Tell us about Merk Funds. How much does it manage and in what capacities? Axel Merk: Merk Funds manages over $600 million in four mutual funds; we invest in four currencies, international fixed income securities and gold. We try to give investors managed currency risk in a variety of forms, seeking to profit from a rise in currencies. One of our products is what we call non-directional, which is more tactical in nature. Daily Bell: As early as 2003 you identified the building of the credit bubble. How was that possible? You use Austrian economics? Axel Merk: First, with regards to Austrian economics, many people say that I'm an Austrian, but I like to have my own way of thinking about the world. Throughout my career – and that includes my academic work as a student – I've always focused on volatility. I wrote a book in 2009, Sustainable Wealth. Without going through the entire book, basically the driving force of the environment we are in is induced by monetary policy that kicks the world into overdrive. When you have the world in overdrive, commodity prices go up and there are all kinds of unintended consequences, many of which we have seen today. Keep on reading @ thedailybell.com |
| Why the U.S. Dollar Is Not Going to Zero Anytime Soon Posted: 23 Jul 2012 08:17 AM PDT
from oftwominds.com: The market considers a variety of inputs in pricing the value of a floating currency. The dollar has more going for it than is generally understood. This process of extravagant creation of paper money is also called hyper-inflation. While it is compelling to see hyper-inflation as the only way out in terms of the domestic credit/leverage bubble, the dollar has an entirely different dynamic if we look at foreign exchange (FX) and foreign trade. Many analysts fixate on monetary policy as if it and the relationship of gold to the dollar are the foundation of our problems. These analysts often pinpoint the 1971 decision by President Nixon to abandon the gold standard as the start of our troubles. That decision certainly had a number of consequences, but 80% the dollar's loss of purchasing power occurred before the abandonment of dollar convertibility to gold. Keep on reading @ oftwominds.com |
| Daily Pfennig: Another day for the dollar… Posted: 23 Jul 2012 08:09 AM PDT
from caseyresearch.com: In This Issue. * Euro takes a spill And, Now, Today's Pfennig For Your Thoughts! Another day for the dollar… Good day…and welcome to the last full week of July. As Chuck mentioned on Friday, Chris and I will be running split shifts while he attends a conference in Vancouver and then followed by his summer vacation, so let's see if the old Chuck's away currency rally can mount a comeback at some point over the next couple of weeks. In the pre-crisis days, it was always a running joke on the trade desk that once Chuck left for vacation or any extended period, we would invariably see a rally in the currency market but times have definitely changed over the past several years. Keep on reading @ caseyresearch.comDaily Pfennig: Another day for the dollar… |
| CFTC Silver Probe Nearing Completion: Chilton Posted: 23 Jul 2012 07:44 AM PDT A four-year-old investigation of possible manipulation of silver prices may be completed as early as September, according a member of the US Commodity Futures Trading Commission. |
| Bartman (Not Batman): Silver Probe Concluding This Year Posted: 23 Jul 2012 07:06 AM PDT Four friggin' years.  CFTC's Chilton Sees Silver Probe Concluding This Year By Silla Brush - Jul 22, 2012 9:00 PM MT A four-year probe of potential price manipulation in the silver market may be completed as early as September, according to Bart Chilton, a member of the U.S. Commodity Futures Trading Commission. "I am hopeful and expect the silver investigation to conclude in the not-too-distant future, hopefully in September or October," Chilton, a 52-year-old Democrat, said in an e- mail. "It has already taken way too long." The enforcement division of the Washington-based agency, the main U.S. overseer of derivatives markets, began pursuing allegations of manipulation in the silver market in September 2008. Investigators have analyzed more than 100,000 documents and interviewed dozens of witnesses, the CFTC said in a November 2011 statement. Chilton, who didn't say whether the probe has uncovered evidence of manipulation, said previously that there had been "repeated attempts" to influence prices. "There have been fraudulent efforts to persuade and deviously control that price," he said at an October 2010 hearing in Washington. "Any such violation of the law in this regard should be prosecuted." http://www.bloomberg.com/news/2012-0...this-year.html Steve Adamske, a CFTC spokesman, didn't immediately respond to an e-mail seeking comment on the status of the investigation sent outside of regular business hours. 'Numerous Letters' The agency concluded in a May 2008 report, before starting the investigation, that there was no evidence of manipulation in the market between 2005 and 2007. The CFTC, in the preceding two decades, had received "numerous letters, e-mails and phone calls from silver investors" alleging that silver futures on the New York Mercantile Exchange had been manipulated downward, according to the report. The CFTC was granted broader powers to pursue such cases under the Dodd-Frank Act. Commissioners last July completed rules making it easier to prove fraud and manipulation in markets for derivatives and commodities. The rules eased requirements that enforcement lawyers demonstrate that artificial prices were set and prove traders intentionally manipulated markets. The new anti-manipulation rule requires the agency only to show that traders acted recklessly. To contact the reporter on this story: Silla Brush in Washington at sbrush@bloomberg.net |
| Ned Naylor-Leyland talks to Alasdair Macleod about Europe and increasing demand for allocated gold Posted: 23 Jul 2012 07:00 AM PDT GoldMoney's Alasdair Macleod talks to Ned Naylor-Leyland of Cheviot Asset Management about Europe's debt crisis, the euro, and gold and silver price prospects. He also discusses the Pan-Asia ... This posting includes an audio/video/photo media file: Download Now |
| Financial Market Forecast is Looking Bleak Posted: 23 Jul 2012 05:56 AM PDT Good Morning! This week could be a huge one for stocks and commodities. This morning the dollar index is taking another run at our weekly chart resistance level. If it can break out and start to rally this week then a possible 4-6 week sell off in stocks and commodities may be just starting. Watch the morning video or at least the last 4 minutes where I cover the SP500 intraday and daily chart which shows the main cycles and what we should be expecting within the coming days and weeks.  The Market Forecast Cycles
Pre- Market Analysis Points: If you did not read my special report and wave counts then do so here: http://www.thegoldandoilguy.com/articles/put-your-seatbelts-on-its-about-to-get-bumpy/
Chris Vermeulen |
| Mumbai, We Have A Gold Problem Posted: 23 Jul 2012 05:52 AM PDT The new trading week was off to a rocky start in precious metals as, despite only a relatively small, 0.20% advance in US dollar (to just above 83.80 on the index) the complex headed for lower price ground overnight and at the opening bell in New York. |
| Spain the Latest Domino to Fall in Eurozone Bailouts? Posted: 23 Jul 2012 05:32 AM PDT Gold edged down on Monday due to the pressure from a stronger dollar, as worries about the euro-zone debt crisis grew after Spain looked like the next candidate for a sovereign bailout. |
| 'Dollar Danger' Threatens Gold, Euro Hits 2-Yr. Low Posted: 23 Jul 2012 04:58 AM PDT Wholesale gold bullion prices fell to $1,569 an ounce during Monday morning's London trading – 0.9% off Friday's close – as stocks, commodities and the euro also traded lower and US Treasuries gained, following news that two Spanish regions plan to ask for bailouts. |
| Silver Update: Drug Money – 7.22.12 Posted: 23 Jul 2012 03:36 AM PDT |
| Posted: 23 Jul 2012 03:31 AM PDT Gold trading is progressing mostly sideways in a longer continuation triangle. The monthly most active August, 2012, gold futures chart has posted tighter trading range years over the past 2-3 years in this pattern ANNUALLY. This is consistent with a major gold breakout coming anywhere from the end of this July, 2012, period, all the way into March 31, 2013. This morning, August gold futures are trading at $1,585 support and resistance. Silver is slightly lower trading between $26.94 to $27.58. The US Dollar index is 83.53 on the September futures and has both support and resistance at 83.50. The Euro currency is 122.64 being supported by 122.50. The long bonds are 150.18 with support and resistance at 150.00. A new top analyst report says Bernanke is buying back 60% of his paper as others do not want it on the open market. We get this despite huge buying pressures coming from Europe as they exit their paper to buy USA bonds and bills, as European ECB and ECM paper is considered to be of poor valuations. Most of the rest of the commodities group and commodities related currencies are flat to very mildly down. This all signals congestion and sideways pressures with most traders being neutral; neither long nor short. While the broader stock markets are flat to down, we expect a mild rally this month with some serious markets' disruptions near the 24th of July and the 27th of July. After that, we could see either mild or, much stronger precious metals trading beginning their march toward a September silver high with secondary highs in gold. Gold's final high for this year should be in October before the election. The debate and quandary we all find ourselves in for now is this: (1) Do we see a major broader market selling event near my forecast of 9-23 /9-25?, (2) Can the PPT and others stall these negative events until after Obama is re-elected? If it all stays somewhat together until November 7, we would suggest the following months from the election all the way to March 31, 2013, will in some respects turn into something almost uncontrollable. The more serious potential events are more negative health care plan news, extension or, none extension of the Bush tax cuts, and major lawsuits against the administration with a potential effort to impeach the president. All this might arrive, as we head into the third year of no national budget in place, or approved. Further, in our view, Europe is near the end of the line. If they can keep Euro-land together and the Euro currency intact, it's going to be a modern indoor miracle. We see these time frames for outstanding rallies and sell-offs in several markets.
  This posting includes an audio/video/photo media file: Download Now |
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