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Wednesday, August 15, 2012

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Gold World News Flash 2

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Gov't Issued Gold Coins AT COST Only $169 each

Posted: 15 Aug 2012 12:47 PM PDT

Edit to correct: I found the link - http://www.thenbcd.com/120814d.html

I got this in an email from conservativebyte.com so no link. The small print at the bottom says "minimum order 5 coins".

THE NATIONAL BULLION & CURRENCY DEPOSITORY announces the final release of 2,500 congressionally authorized, fully backed by the U.S. Government, completely free of dealer mark up, $5 Gold American Eagles at the incredible price of only $169.00 each.

FINAL RELEASE
If you had $25,000 in gold in 2001 at $290 per oz you would have over $100,000 at today's gold prices. Numerous experts are now predicting gold at $5,000 an ounce; your $25,000 could be worth $125,000 in the near future. This at cost offer for American citizens may be your final opportunity to own government gold free of dealer mark up. Due to extremely limited supplies we must adhere to a strict limit of ten coins per household. The National Bullion & Currency Depository has set these beautiful U.S. Government gold coins for immediate public release and cannot guarantee sufficient inventory to supply current demand. This at cost public offer will sell out immediately. Overage orders may be cancelled and your checks returned uncashed. Ordering now may be your last chance to own these magnificent government issued gold coins at this level. CALL TOLL FREE 877-231-6201

The Gold Trade

Posted: 15 Aug 2012 11:05 AM PDT

By Invest Chief:

Back on July 16th, I wrote an article about my prediction on gold as a trade for the rest of the year. I told my readers that I am bullish on gold but we could see a short term correction here as we go through August. However, once September comes rolling around, the markets will have increased anxiety from Europe, elections, declining macro events, etc which will give investors the need for a "safe haven." Considering Treasuries have such a poor yield, gold could be the go to "safe haven."

Since my last article, a number of well known investors have begun to open positions in gold and tout the potential run up come the end of the year. These investors are John Paulson, George Soros and Dennis Gartman. SEC files show that Soros and Paulson added to their position in the SPDR Gold ETF (GLD) during the second quarter.


Complete Story »

Ponzi Scheme Goes for the Gold: Poland’s Amber Gold’s PHYZZ Has Vaporized

Posted: 15 Aug 2012 11:00 AM PDT

Ponzi Scheme Goes for the Gold: Poland's Amber Gold's PHYZZ Has Vaporized
August 15, 2012 By The Doc

Jeśli nie trzymaj go, hyou nie masz go.

In case you're wondering, that's Polish for 'If you don't hold it, you don't own it.'
More than 1 would be Polish phyzz owner is wishing they took that SD phrase to heart tonight, as Amber's 28 year old founder Marcin Plichta admitted Monday that supposedly allocated client's gold held by Amber Gold is gone.
Every last ounce of it.
The WSJ reports:

This week's collapse of a gold-derivatives business that Polish regulators say was a Ponzi scheme has hit tens of thousands of customers, shaken confidence in the effectiveness of the nation's financial regulation, and is roiling national politics in the European Union's largest emerging economy.



On Monday, the company, Amber Gold, Sp. z o.o., which sold a gold-indexed investment of its own design and offered higher interest rates than banks, said it was halting operations. It pledged eventually to repay about $24 million it said it owed to roughly 50,000 clients in Poland.



Amber Gold's 28-year-old founder, Marcin Plichta, who has publicly acknowledged past convictions for misappropriating funds, couldn't be reached to comment. Amber Gold representatives were also unreachable.



Despite three years of warnings by Poland's financial authorities that the company was operating without a license, it continued expanding and spent heavily on marketing. Among its businesses, the company launched a budget airline this year to compete with state-owned LOT Polish Airlines SA on domestic and European routes.



The airline, OLT Express, ceased flights last month and the gold fund unraveled this month after renewed government warnings prompted commercial banks to close Amber Gold's accounts. The company said "the liquidation process will be spread over time," without specifying when people might get their money back.



On Tuesday, Prime Minister Donald Tusk referred to Amber Gold as "a scheme" and said he ordered his finance minister to convene top financial authorities—including the central bank and consumer protection office—to discuss the company's demise and the effect on customers. "All signs on heaven and earth suggest that people who put their trust in that company have been cheated," Mr. Tusk said. He said it is the duty of the state "to move fast enough to protect people from those schemes."

…



"I'm shocked at this point and I don't know what to do," said a woman in her 40s, who didn't give her name but said she was an Amber Gold client. "The boss of this company is a very wealthy man and I don't know who will have the authority to block his wealth so he doesn't escape."



Amber Gold has said it has $45 million in assets, including 100 kilograms of gold. For years it hasn't issued required financial statements, a lapse that draws a small penalty.

Vaporization. The new 'IT' word for fraudulent theft…aka rehypothecation. This is exactly the type of Ponzi rehypothecation scenario described by Harvey Organ as currently occurring with the GLD's supposed physical gold inventory.

Those who have not already taken personal possession of their physical gold and silver should do so immediately and can start by calling SD Bullion at 614.300.1094.

Remember, if you don't hold it, you don't own it!

http://www.silverdoctors.com/ponzi-s...has-vaporized/

Gold Market Manipulation Means Physical Is Best

Posted: 15 Aug 2012 10:42 AM PDT

Description: 

GATA official explains why it's important for investors to purchase physical gold and store it in allocated storage outside the banking system.

Central banks have been interfering in the gold market for generations in order to keep the global fiat currency system strong, Chris Powell, secretary-treasurer of the Gold Anti-Trust Action Committee (GATA) tells CNBC. The rationale: The historic relationship between the price of gold, real interest rates and the value of government bonds. In other words, historically, when gold prices rise, so does the cost of government borrowing.

read more

This posting includes an audio/video/photo media file: Download Now

Why Bernanke Could Help The Dollar At Jackson Hole

Posted: 15 Aug 2012 10:18 AM PDT

By Kathy Lien:

For once, the dollar traded on the outlook for the U.S. economy and not on risk appetite. While we believe that the rebound in U.S. producer prices and retail sales is not enough to alter the central bank's plans for monetary policy, it could trigger a tinge of optimism from Bernanke, which may be enough to help the dollar hold onto its gains. At the last Federal Reserve meeting, the central bank made it clear that they are in "wait and see" mode, and that everything hinged on the labor market and Europe. Since then, we have seen stronger job growth in the U.S. and have not received any bad news out of Europe. As a result, there's no immediate need for QE3. However one month of improvements is also not enough to change the Federal Reserve's mind about keeping monetary policy extremely easy for the next 2 to 3


Complete Story »

Pent Up Silver Demand & the CFTC Linchpin

Posted: 15 Aug 2012 10:18 AM PDT

As scandal after financial scandal take their toll on public confidence in the economic morass curiously called the financial system, what will be the trigger for a short covering panic in the metals markets?

Buy Yamana Gold For Its Growth Prospects, Attractive Valuations

Posted: 15 Aug 2012 10:12 AM PDT

By Qineqt:

Yamana Gold Inc. (AUY) offers a potential buying opportunity as a result of its increasing mine production, development of new mines, sustainable dividend yield, and inexpensive valuations. Although recent quarterly results were a disappointment considering the company's previous strong operating performance, we expect AUY to rebound and be a source of capital appreciation for its investors, in addition to being a dividend haven. Recently, the company announced an 18% quarter-over-quarter increase in its dividends, which is a healthy sign. AUY is currently trading at approximately $15, while its NAV-based target price is $21.

Company Description:

Yamana Gold Inc. is a gold producer, but the company also engages in mining of copper and other precious metals like silver. It operates in five major geographies: Brazil, Chile, Argentina, Mexico, and Canada.

Latest Earnings Review:

AUY announced its 2Q2012 results last Wednesday, according to which its profit fell to 6c per share from


Complete Story »

Iceland Was Right, We Were Wrong: The IMF

Posted: 15 Aug 2012 09:50 AM PDT

For approximately three years; our governments, the banking cabal, and the Corporate Media have assured us that they knew the appropriate approach for fixing the economies that they had previously crippled with their own mismanagement. We were told that the key was to stomp on the Little People with "austerity" in order to continue making full interest payments to the Bond Parasites – at any/all costs.

Following three years of this continuous, uninterrupted failure; Greece has already defaulted on 75% of its debts, and its economy is totally destroyed. The UK, Spain, and Italy are all plummeting downward in suicide-spirals, where the more austerity these sadistic governments inflict upon their own people the worse their debt/deficit problems get. Ireland and Portugal are nearly in the same position.

Now in what may be the greatest economic "mea culpa" in history, we have the media admitting that this government/banking/propaganda-machine Troika has been wrong all along. They have been forced to acknowledge that Iceland's approach to economic triage was the correct approach right from the beginning.

What was Iceland's approach? To do the exact opposite of everything the bankers running our own economies told us to do. The bankers (naturally) told us that we needed to bail-out the criminal Big Banks – at taxpayer expense (they were Too Big To Fail). Iceland gave the banksters nothing.

The bankers told us that no amount of suffering (for the Little People) was too great in order to make sure that the Bond Parasites got paid at 100 cents on the dollar. Iceland told the Bond Parasites they would get what was left over, after the people had been taken care of (by their own government).

The bankers told us that our governments "could no longer afford" the same education, health-care and pension systems which our parents had taken for granted. Iceland told the bankers that what the country "could no longer afford" was to continue to be blood-sucked by the worst financial criminals in the history of our species. Now, after 3+ years of this absolute dichotomy in economic policy-making a clear picture has emerged (despite the best efforts of the propaganda machine to hide the Truth).

In typical fashion, the moment that the Corporate Media is forced to admit that it has been serially misinforming us for the past several years; the Revisionists are immediately deployed to rewrite history:

…the island's approach to its rescue led to a "surprisingly" strong recovery, the International Monetary Fund's mission chief to the country said. [emphasis mine]

In fact, from the moment the Crash of '08 was orchestrated and our morally-bankrupt governments began executing the plans of the bankers I have written that the only rational strategy was to put People before Parasites. While I wouldn't expect national policy-makers to take their cues from my own writing, when I wrote out my economic prescriptions for our economies I didn't base my views on compassion, or simply "doing the right thing."

Rather, I have consistently argued that it was a matter of simple arithmetic and the most-elementary principles of economics that "the Iceland approach" was the only strategy which could possibly succeed. When Plutarch wrote 2,000 years ago that "an imbalance between rich and poor is the oldest and most fatal ailment of all Republics" he was not parroting socialist dogma (1500 years before the birth of Socialism).

Plutarch was simply expressing the First Principle of economics; something which all of the modern capitalist economists who followed in his footsteps have based their own theories upon. When modern economists produce their own jargon, such as the Marginal Propensity to Consume; it is squarely based upon the wisdom of Plutarch: that an economy will always be healthier with its wealth in the hands of the poor and the Middle Class instead of being hoarded by rich misers (and gamblers).

An Interesting Forex Fight

Posted: 15 Aug 2012 09:44 AM PDT

By Paulo Santos:

With today's data on retail sales, broadly over expectations, we got an interesting fight going in the US Dollar crosses, namely versus the Euro (FXE) and Australian Dollar (FXA). This happened because the data was arguably both bullish, and bearish, for the dollar. Let me explain why.

The bullish thesis

As economic data, such as today's retail sales or recent jobless claims, comes in stronger than expected, the drive towards quantitative easing loses strength. The lack of quantitative easing means the Dollar won't be diluted which is obviously a positive - especially if this happens in a market that had been discounting near-term quantitative easing (word has it that such move could be signaled at the Jackson Hole gathering).

Additionally, strong economic data is usually a positive to the economy and currency showing it, which is another plus for the Dollar. I would however give this angle less weight, because


Complete Story »

Hedge Funds Least Bullish on Silver in Four Years

Posted: 15 Aug 2012 09:27 AM PDT

David Morgan discusses this article.

Gold Sentiment 101

Posted: 15 Aug 2012 07:31 AM PDT

Andy Hoffman

In What Direction Will the Stock Market Head and How Could It Influence Gold and Silver?

Posted: 15 Aug 2012 07:00 AM PDT

SunshineProfits

A Silver Coin to Save the Common Man

Posted: 15 Aug 2012 06:47 AM PDT

from silverseek.com:

The interrelationships between money, credit and the banking system mean that the stability of the current system is dependent upon the ability to service credit expansion, or in general the debt/GDP ratio.

With very few exceptions, every country and financial system in the world share the same fiat money platform with credit-money creation through fractional reserve banking.

Due to its lack of diversity and a solid base, the entire system is at great risk, and has already started to implode as evidenced by the current steaming pile of economic turmoil which exists in the European Union. These very same dynamics helped to create the problems that built up in the global economy between countries running trade surpluses and those absorbing ever-rising credit flows.

Keep on reading @ silverseek.com

Retail Sales Number Derails QE Expectations

Posted: 15 Aug 2012 06:44 AM PDT

from traderdannorcini.blogspot.ca:

This morning's Retail Sales number came in above expectations giving those expecting a Fed move on the QE front at the upcoming Jackson Hole summit reason for pause. The number caught a lot of folks off guard and while it was not spectacular, it was not in the "the consumer is not spending money" category. The market interpretted it as another reason for the Fed NOT TO ACT.

Gold, which had been moving higher in its recent consolidation range until yesterday, immediately fell back on the data as the further squashing of another round of bond buying in early September seems even more remote at this point.

Still it did attract value based buying just above the $1590 level and is currently back above the psychologically significant $1600 level. Whether it can stay there without strong expectations of a forthcoming QE is unclear however.

Keep on reading @ traderdannorcini.blogspot.ca

Retail Tales & Tell-Tale Signs for Precious Metals

Posted: 15 Aug 2012 06:20 AM PDT

The metals markets opened to the downside for the midweek session this morning. A 0.28% advance in the US dollar and a 0.36% slip in crude oil contributed to early selling pressure. Spot gold prices dipped under Tuesday's lows and touched $1,588 per ounce.

Paulson Steps Up Gold Bet to 44% of Firm’s Equity Assets

Posted: 15 Aug 2012 06:12 AM PDT

....sign of the times eh? I stand up and take more notice if he tries to take delivery of physical.


Billionaire John Paulson raised his stake in an exchange-traded fund tracking the price of gold while selling other stocks during the second quarter, leaving his $21 billion hedge fund with more than 44 percent of its U.S. traded equities tied to bullion.

Paulson & Co. purchased an additional 4.53 million shares of the SPDR Gold Trust, the firm's largest position, and bought more shares of NovaGold Resources Inc. (NG), according to a Form 13F filed yesterday with the U.S. Securities and Exchange Commission. Gold prices posted their biggest declines since 2008 last quarter.

While Paulson trimmed his stake in AngloGold Ashanti Ltd. (ANG) and Gold Fields Ltd. (GFI), sales of energy, financial and auto-parts stocks boosted the relative weighting of gold-related securities in his U.S. stock portfolio to the highest in three years. That's making the fund more vulnerable to declines in the price of bullion as the hedge-fund manager struggles to reverse record losses last year.

Paulson, 56, has lost 23 percent so far this year in his Gold Fund and 18 percent in the Advantage Plus Fund, in part because of wrong-way bets on mining companies. Advantage Plus, which seeks to profit from corporate events such as takeovers and bankruptcies and uses leverage to amplify returns, declined 51 percent last year.

Concentrated Holdings
Armel Leslie, a spokesman for New York-based Paulson & Co., declined to comment on the filing.

Paulson's U.S.-listed holdings peaked at $34.3 billion at the end of March 2011, with about $7.7 billion of that amount, or 23 percent, invested in gold related stocks. Since then, the firm's overall assets have declined more sharply than its investments in the SPDR Gold ETF and gold miners, leaving the funds increasingly exposed to the precious metal.

Paulson had 33 percent of his U.S. stock holdings in gold- related securities at the end of the first quarter and 25 percent a year ago.

The last time his stock portfolio had a bigger concentration in gold-related equities than last quarter was March 2009, when U.S. equities hit bottom. At that time, gold stocks equaled about 46 percent of Paulson's $9.36 billion in reported U.S. stock holdings.

Best Bet
Gold slumped 4 percent in the second quarter, the biggest quarterly loss since Sept. 30, 2008. Prices fell as European Central Bank President Mario Draghi and Federal Reserve Chairman Ben S. Bernanke failed to increase stimulus measures, damping the outlook for global growth and demand for the metal as a hedge against inflation. The price is down 0.1 percent since June 30.

Paulson, who became a billionaire in 2007 by wagering against the subprime mortgage market, told clients in February that gold is his best long-term bet, serving as protection against currency debasement, rising inflation and a possible breakup of the euro. Gold miners are historically inexpensive, he said at a meeting with investors in April. His hedge fund has been buying mining companies as part of the bet on rising gold prices, though losses by the stocks have hurt returns. Paulson added 4 million NovaGold shares, which slumped the most in more than three years last month after Barrick Gold Corp., the world's biggest producer of the metal, said their Donlin Gold joint venture didn't meet its investment criteria.

Selling AngloGold
Paulson sold 400,540 American depositary receipts of AngloGold, its second-largest position, and 819,000 ADRs of Gold Fields in the second quarter. The fund disposed of stakes in Anadarko Petroleum Corp., Motorola Mobility Holdings Inc., Medco Health Solutions Inc., El Paso LLC and SunTrust Banks Inc.

Paulson said during a conference call with investors last month that his firm has reduced risk at some of its funds, according to a client, who asked not to be named because the call was private. So-called net exposure in its Advantage funds, which seek to profit from corporate events such as takeovers and bankruptcies, was 11 percent; at the Credit funds it was minus 9 percent; and at the Recovery funds, which bet on assets Paulson believes will benefit from a long-term economic advance, it was 31 percent, the investor said.

The Advantage funds had net exposure of 32 percent as of the end of January, the Credit funds were at 27 percent and the Recovery funds were at 55 percent, according to an annual letter sent to clients in February.

Net exposure is calculated by subtracting the percentage of a hedge fund's short positions, or bets on falling securities, from its long holdings, or wagers on rising stocks and bonds.

Money managers who oversee more than $100 million in equities must file a Form 13F within 45 days of each quarter's end to list their U.S.-traded stocks, options and convertible bonds. The filings don't show non-U.S. securities or how much cash the firms hold.

To contact the reporters on this story: Miles Weiss in Washington at mweiss@bloomberg.net; Kelly Bit in New York at kbit@bloomberg.net

To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net


http://www.bloomberg.com/news/2012-0...ty-assets.html

Aaaand It’s Gone: This Is Why You Always Demand Physical

Posted: 15 Aug 2012 06:08 AM PDT

from zerohedge.com:

We have said it over and over, we'll say it again. For all those who for one reason or another would like to boycott the broken markets, yet trade gold in paper form, please understand that all the invested capital is at risk of total loss and can and will be lost, commingled and rehypothecated, not necessarily in that order, with little to zero recourse and the residual claim on liquidating assets pushed to the very end of the queue. Because if Lehman, MF Global, Peregrine, and countless other examples were not enough, here comes Amber Gold: a gold-based investment ponzi scheme out of Poland, in which it is likely needless to say that the gullible investors never had actual possession of the gold. And when they tried, it was gone. All gone.

Keep on reading @ zerohedge.com

Soros' Action Louder than Trumpeted 'Bubble' Words

Posted: 15 Aug 2012 05:45 AM PDT

Gold is under pressure today despite the likelihood of more QE from the FED, ECB and other central banks and despite the very uncertain and poor macroeconomic outlook.

Rick Rule – Obama and Buffet are Fascists

Posted: 15 Aug 2012 05:38 AM PDT

Sage advice and commentary from one of the best in the business in this condensed version of a previously posted interview.  Rick Rule calls them as he sees them, every time. 

On the topic of Berkshire Hathaway maven Warren Buffet's pronouncement that President Barack Obama is "not anti-business,"  Rule opines:  "There is a strong drift in American politics  toward fascism and I think Obama and Buffet are fascists.  The idea that a company should not be allowed to fail I think is anathematic to a market.  Failure is what is required in a market to purge the market of moral risk.  So when you ask me if Obama is anti-business it depends on how you define business.  If you define business as maintaining brain dead parastatal fascist structures like JP Morgan Chase or General Motors then no, he's certainly not anti-business – but I do think he and Buffet are anti-market.  I'm pro-market.  I think the thing that made the United States as great as it was for many years there was a reliance on markets and a sense that it was okay for people to succeed and it was okay for people to fail too.  And it was that interplay that kept the playing field real."    

Rule has a knack for distilling thoughts into memorable sound bites.  "One of the roles that gold has performed for 3,000 years is catastrophe insurance," says our friend Mr. Rule, and "Having a little catastrophe insurance in your back pocket is a good thing." 

 

Source: Cambridge House via YouTube 

http://www.youtube.com/watch?feature=player_embedded&v=Ab_nW8AVrdY

Good Economic News is Seen as 'Bad for Gold'

Posted: 15 Aug 2012 05:32 AM PDT

The wholesale market gold price fell back below $1,600 an ounce during Wednesday morning's London trading, hitting its lowest level for nearly two weeks, while European stock markets also traded lower.

Looking For the Right Reasons to Own Bullion?

Posted: 15 Aug 2012 04:57 AM PDT

The gold price has been ranged-bound within $1,535 to $1,700 since March this year, so it is not surprising that investors are searching for the right reasons to own gold. Global economic news has been mixed.

Silver Update: Primary Silver – 8.14.12

Posted: 15 Aug 2012 04:32 AM PDT

brotherjohnf: Silver Update 8/14/12 Primary Silver
from brotherjohnf:

~TVR

Paulson, Soros Add Gold as Price Drops Most Since 2008

Posted: 15 Aug 2012 03:14 AM PDT

For Bloomberg via Businessweek Debarati Roy writes:  "Billionaire investors George Soros and John Paulson increased their stakes in the biggest exchange- traded fund backed by gold as prices posted the largest quarterly drop since 2008.

Soros Fund Management more than doubled its investment in the SPDR Gold Trust to 884,400 shares as of June 30, compared with three months earlier, a U.S. Securities and Exchange Commission filing for second-quarter holdings showed yesterday. Paulson & Co. increased its holdings by 26 percent to 21.8 million shares.


Gold slumped 4 percent in the second quarter, the biggest such loss since Sept. 30, 2008. Prices fell as European Central Bank President Mario Draghi and Federal Reserve Chairman Ben S. Bernanke failed to increase stimulus measures, damping the outlook for global growth and demand for the metal as a hedge against inflation. The price is little changed since end-June." – The Bloomberg/Businessweek article continues at the link below. 

Source: Bloomberg/Businessweek  
http://www.businessweek.com/news/2012-08-14/paulson-soros-add-to-gold-hoard-as-prices-drop-most-since-2008 

Gold & Silver Market Morning, August 15 2012

Posted: 15 Aug 2012 03:00 AM PDT

Aaaand it's Gone: This is Why You Always Demand Physical

Posted: 15 Aug 2012 02:36 AM PDT

¤ Yesterday in Gold and Silver

It was another 'nothing' sort of day in the gold market on Tuesday...right up until 8:30 a.m. Eastern time...when either a not-for-profit seller, or high-frequency trading platform, carved eighteen bucks off the gold price in less than fifteen minutes.  However, it appears that retail sales and producer price index data was released at 8:30...and that may have been the cause of the sell-off...or the fig leaf behind which the bear raid was conducted.  I highly suspect the latter scenario.

The actual low price tick...$1,590.40 spot, if Kitco's number can be believed...came at 9:00 a.m....and the gold price recovered slowly from there, before getting sold off a hair going into the 1:30 p.m. Comex close.  After that it traded ruler-flat going into the 5:15 p.m. electronic close in New York.  The New York high tick came just a minute or so after the Comex opened...and that printed $1,615.30 spot.

Gold closed at $1,599.00 spot...down $10.90 from Monday.  Net volume appeared to be just as heavy as Monday's volume...around 125,000 contracts.

Here's the New York Spot Gold [Bid] chart on its own, so you can see the relevant action up close and personal.

Silver's price path was more or less similar to gold's.  It's attempt to rise above the $28.00 spot mark ran into a willing seller about half an hour after the London open...and the London low came around the 12 o'clock noon London silver fix.

The subsequent rally ran into the same not-for-profit seller at the same New York time as gold did...with silver's low [$27.56 spot] coming the same time as gold's...right at 9:00 a.m. Eastern.  The rally that followed got nowhere...and after all the price gyrations of the preceding 24-hour time period, silver closed at $27.83 spot, the same price it closed at on Monday.

Net volume, once the roll-overs out of the September delivery month were subtracted out, came in at a very tiny 17,500 contracts...give or take.  Silver's high price tick in New York was $28.05 spot and, like gold, that came just minutes after the Comex open.

Here's the New York chart on its own...

Just for 'information purposes only'...here's the platinum chart from yesterday...and you thought the intervention in the gold market was egregious!

If you check the high ticks in both gold and silver above, you'll see that both were set to blast off as well.  It's just so much more obvious on the above platinum chart, as the trace actually shows up on the chart, but the price rallies were too fast in the other two metals.

The dollar index rolled over about twenty basis points during Far East trading...and hit its low of the day [82.21] shortly before 9:30 a.m. in London.

The subsequent 35 basis point rally lasted until about 10:40 a.m. in New York, before the dollar index more or less traded sideways into the 5:30 p.m. Eastern time 82.53 close.

You'd have to smoke one or more of those pointy cigarettes before you could see much co-relation between the precious metals prices and the dollar index on Tuesday.

Surprisingly enough, the gold stocks put on a decent showing despite the fact that the metal itself had just had the living snot kicked out of it less than an hour before the open.  The stocks peaked shortly after 10:00 a.m....and then traded sideways until around the 1:30 p.m. Comex close...and then they slowly sold off into the close.  The HUI finished down only 0.50%.  It could have been worse.

For the third day in a row, the silver stocks were in the red virtually across the board...and Nick Laird's Silver Sentiment Index closed down another 1.33%.

(Click on image to enlarge)

The CME's Daily Delivery Report showed that 339 gold and 2 silver contracts were posted for delivery within the Comex-approved warehouses on Thursday.  JPMorgan was the biggest short/issuer with 267 contracts...179 in its in-house account, along with another 88 in its client account.  The Bank of Nova Scotia was in distant second place with 72 contracts posted for delivery.  The only two long/stoppers of note were HSBC USA with 212 contracts...and Deutsche Bank with 121 contracts.  The link to yesterday's Issuers and Stoppers Report, is here.

There were no reported changes in GLD yesterday...but an authorized participant withdrew 1,647,762 troy ounces from SLV.

I got a call from David Morgan last night...and one of the subjects of our discussion was just how much silver that the Sprott Physical Silver Trust was still owed.  A quick e-mail exchange with Nick [Hawkeye] Laird revealed that they'd already received 6,546,513 troy ounces of the stuff, so it appears that they still have a bit over 1.5 million ounces yet to go.  I had guessed at 600,000 ounces in this space on Tuesday.

There was no sales report from the U.S. Mint.

Over at the Comex-approved depositories on Monday, they reported receiving 800,439 troy ounces of silver...and shipped a very small 9,249 troy ounces out the door.  The link to that action is here.

Well, First Majestic Silver Corporation posted their second quarter financial results yesterday...and here's an interesting item from that report..."In addition to cash, First Majestic was carrying 574,000 PSLV (Sprott Physical Silver Trust) units at quarter end with an approximate market value of $6.65 million...and 100 Silver Futures contracts representing 500,000 ounces of silver valued at $1.7 million including the unrealized gain and the margin requirement. The Company is currently holding 150 contracts representing 750,000 ounces of silver at an average cost basis of $27.277."

750,000 ounces of paper silver?  They mine this stuff...and buy paper silver?  I'm sure that JPMorgan laughed with glee as they sold them the Comex futures contracts.  You can't make this stuff up!  It makes me want to sell my position in the company at the open this morning, but I won't.  Let's see if 'da boyz' can arrange for them to get stopped out, which is precisely what they deserve to have happen.

Here's a too-cute-for-words photo of a baby spotted skunk that my daughter Kathleen sent me yesterday...and I thought it worth sharing.

Despite ruthless editing, I still have a fair number of stories for you once again today.

It now boils down to how low this 'correction' will go...and over what time period it will occur.
Paulson, Soros Add Gold as Price Declines Most Since 2008. Sierra Leone plans gold tax cut to curb smuggling. Rick Rule: Gold Strong, Expect Merger & Acquisition Boom In Miners.

¤ Critical Reads

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JPMorgan Bank to Hold Collateral After Futures Firms' Losses

JPMorgan Chase & Co. will allow customers to house excess swaps and futures collateral in a separate bank account as it seeks to reassure investors after losses at MF Global Holdings Ltd. and Peregrine Financial Group Inc.

The new service will allow clients to automatically aggregate excess margin at JPMorgan Chase Bank N.A., the firm's insured deposit-taking unit, Emily Portney, head of agency clearing, collateral and execution at the New York-based bank, said in a telephone interview.

"It's certainly in response to client queries and more emphasis on safekeeping of client money," Portney said. "The key is safety, operational efficiency and more choice for clients" in how their funds are protected and invested, Portney said.

This Bloomberg story was posted on their website just before lunchtime in New York yesterday...and I thank reader Ulrike Marx for sending it.  The link is here.

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Union Greed and Politician Apathy are Killing Cities

Stockton and other Californian cities have slashed public services, thus putting the demands of public employees above the concerns of taxpayers and residents who rely on public services. Now we see that even bondholders don't stand a chance when their interests collide with those of public-sector unions.

It's easier to take on an offshore firm than confront CalPers [California Public Employees' Retirement System], which had threatened to wage a protracted court battle against another Californian city, Vallejo, if it decided to reduce pension promises after its 2008 bankruptcy. Stockton officials no doubt are aware of that threat.  

Why not screw the bondholders?

This story showed up on the townhall.com Internet site yesterday...and I thank reader Marshall Angeles for bringing it to our attention.  The link is here.

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On Wall Street, the Rising Cost of Faster Trades

For several years, the Wall Street wizards who built a faster, more fragmented stock market justified their creation by pointing to the benefits it yielded for investors in the form of lower trading costs.

But as the speed and complexity of the markets have continued to change at a rapid pace — with trade times now measured in millionths of a second — a growing number of studies and market participants suggest that those benefits to investors have stalled or even started to reverse.

Research from the broker Abel/Noser indicates that the total cost for an investor to get into and out of a single share of stock fell by more than half between 2000 and 2010, to 3.5 cents. Since then, though, the cost has leveled off and then ticked up in the most recent quarter to 3.8 cents, confirming a trend that has also been visible in recent data from Credit Suisse Trading Strategy and from Celent, a consulting firm specializing in financial markets.

This story was posted in The New York Times on Monday...and I thank Donald Sinclair for sharing it with us.  The link is here.

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UK inflation jumps unexpectedly in July to 2.6pc

The Office for National Statistics said its consumer prices index (CPI) measure of inflation rose to 2.6pc in July from 2.4pc in June, driven by a 21.7pc rise in the cost of flights which saw overall transport prices rise by 1pc.

The Retail Price Index inflation figure, which will be used to calculate the increase in rail fares, jumped to 3.2pc, against expectations of 2.8pc, leaving commuters faced with the prospect of £100-a-week fares.

In England fares will rise by inflation plus 3pc, while in Scotland they will go up by inflation plus 1pc. Wales has yet to set a figure for its increase.

The jump in inflation is a blow for the Bank of England's Monetary Policy Committee, which has repeatedly overshot its 2pc target in recent months.

Every negative surprise is "unexpected"...and/or a "temporary blip"...and it's a given that the inflation numbers are much worse than the government is reporting.

This Roy Stephens offering was posted on the telegraph.co.uk Internet site mid-morning BST in London...and the link is here.

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France gives green light to holiday home tax hike

Owning a charming holiday home in the heart of rural France may no longer be the life-long dream of Francophiles across the world, thanks to new substantial tax rises.

A massive tax rise affecting foreigners who own second homes in the country has been given its blessing by France's highest authority, the Constitutional Council.

The legislation was approved on August 9, despite strong claims by many in the property market that it is against EU laws.

It comes even after President François Hollande appeared to reassure Britain's legion of holiday home owners during a recent trip to the UK.

This story was posted on the france24.com website on Monday...and I thank Roy Stephens for finding it for us.  The link is here.

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AIG latest to make capital flight from eurozone

A quarterly filing by the insurer in the US shows that the firm is working to slash its exposure to both European sovereign debt and the eurozone's banks, a further indication that companies are losing confidence in the single currency,

Between December 31 last year and June 30, the company reduced its holdings of German, French and Spanish government debt.

Its reduction in exposure to German sovereign debt was the most marked, falling 16pc over six months, from $1.85bn (£1.2bn) to $1.37bn, indicating that Europe's largest economy is not insulated from the capital flight gripping the eurozone's southern and heavily indebted members.

The company has also reduced its holdings in German, French, Spanish and Italian banks, the quarterly filing of its investments shows.

This story was filed on The Telegraph's website late afternoon BST on Saturday...and I thank London reader Iain Doherty for digging it up on our behalf.  The link is here.

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Debt crisis: Greece raises €4bn at debt auction to help government avoid cash crunch

Greece raised €4.063bn (£3.2bn) in a sale of three-month debt on Tuesday, paying a modestly higher rate of 4.43pc that will help the government avoid a cash crunch.

The extraordinarily large sale was held ahead of the redemption of a €3.2bn bond held by the ECB which expires on August 20. it will also help the country pay salaries and pensions while it awaits the next installment of its EU-IMF bailout package.

In its last equivalent sale on July 17, Greece raised €1.625bn euros at a slightly lower rate of 4.28pc.

Greece has been shut out of the long-term debt markets since 2010 and has regularly issued short-term debt, but previous placements had not been as high as Tuesday's.

And so it has come to this...a loan to get it through until the next IMF pay day. This story was posted on the telegraph.co.uk Internet site at 7:00 a.m. Eastern time yesterday morning...and I thank Roy Stephens for sending it along.  The link is here.

Paulson, Soros Add Gold as Price Declines Most Since 2008

Posted: 15 Aug 2012 02:36 AM PDT

Paulson, Soros Add Gold as Price Declines Most Since 2008

Billionaire investors George Soros and John Paulson increased their stakes in the biggest exchange- traded fund backed by gold as prices posted the largest quarterly drop since 2008.

Soros Fund Management more than doubled its investment in the SPDR Gold Trust to 884,400 shares as of June 30, compared with three months earlier, a U.S. Securities and Exchange Commission filing for second-quarter holdings showed yesterday. Paulson & Co. increased its holdings by 26 percent to 21.8 million shares.

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